The fellow in group producing bit of newspaper? (5)
I believe the answer is:
sheet
'bit of newspaper?' is the definition.
(newspapers are made up of sheets)
'the fellow in group' is the wordplay.
'the fellow' becomes 'he' (he refers to a man).
'in' is an insertion indicator.
'group' becomes 'set' (both can mean a collection).
'he' going within 'set' is 'SHEET'.
'producing' acts as a link.
(Other definitions for sheet that I've seen before include "newspaper" , "Item of bedlinen" , "Set of unseparated stamps" , "Whence to sing hymns?" , "One of pair tucked in" .)