Give out writing instruments in side production (8)
I believe the answer is:
dispense
'give out' is the definition.
(I've seen this before)
'writing instruments in side production' is the wordplay.
'writing instruments' becomes 'pens' (I've seen this in another clue).
'in' means one lot of letters goes inside another.
'production' indicates anagramming the letters.
'side' is an anagram of 'dise'.
'pens' inserted within 'dise' is 'DISPENSE'.
(Other definitions for dispense that I've seen before include "Dish out, medicine say" , "Prepare and distribute medicine" , "Portion out as chemist does" , "Deal out - needs sip (anag)" , "Do without - give to others" .)