Surplus yield and production structure: The case of small‐scale rural industries in West Bengal

Abstract

Rural industries in West Bengal are characterized by a multiplicity of organizational forms, such as independent petty production, petty production under subcontracting relations with a master trader, modern small‐scale production, and medium‐sized capitalist production. On the basis of field data, we have estimated the amount of surplus generated by these different kinds of producer across a number of organizations and industries, using an alternative criterion: imputing wages to family labour. It was observed that a large number of petty producers generate negative or very low surpluses, and thus have to find supplementary sources of income. Further, the surpluses generated by petty producers attached to a master trader are generally higher than those of independent petty producers.This can be explained in one of two ways. Either the existence of mutual trust between attached petty producers and a master trader offers the former certain advantages over the independent ones, in terms of steady access to urban markets, cheaper sources of raw materials, and easy credit. Or, alternatively, the control such attachment licenses enables a master trader both to extract and to maintain continuous access to higher levels of surplus. For these reasons, this system, of organization lends viability to artisanal production.