INTRODUCTION

The Textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Today, India's textile sector comprises four important segments:

  • • Modern textile mills
  • • Independent Power looms
  • • Handlooms and
  • • Garments

THE ROLE OF HANDLOOM SECTOR IN INDIA

The Handloom sector plays a very important role in the country’s economy. It is one of the largest economic activities providing direct employment to over 65 lakhs persons engaged in weaving and allied activities. As a result of effective Government intervention through financial assistance and implementation of various developmental and welfare schemes, this sector has been able to withstand competition from the power loom and mill sectors. This sector contributes nearly 19% of the total cloth produced in the country and also adds substantially to export earnings. Handloom is unparalleled in its flexibility and versatility, permitting experimentation and encouraging innovations. The strength of Handloom lies in the introducing innovative designs, which cannot be replicated by the Power loom sector. Thus, Handloom forms a part of the heritage of India and exemplifies the richness and diversity of our country and the artistry of the weavers.

The Office of the Development Commissioner for Handlooms has been implementing, since its inception in the year 1976, various schemes for the promotion and development of the handloom sector and providing assistance to the handloom weavers in a variety of ways. Some of the major programmes relate to:

  • • Modernisation and Up gradation of Technology
  • • Input Support
  • • Marketing Support
  • • Publicity
  • • Infrastructural Support
  • • Welfare Measures
  • • Composite Growth Oriented Package
  • • Development of Exportable Products
  • • Research & Development

The various schemes implemented by the Office of Development Commissioner for Handlooms address the needs of weavers who constitute the disadvantaged social strata and occupational groups, which are at the bottom of the economic hierarchy. Concerted efforts are being made through the schemes and programmes to enhance production, productivity, and efficiency of the handloom sector and enhance the income and socio-economic status of the weavers by upgrading their skills and providing infrastructural support and essential inputs.

ONGOING SCHEMES AND PROGRAMMES FOR TEXTILE INDUSTRY IN INDIA

In order to provide financial assistance in an integrated manner to the handloom weavers and strengthen the design segment of the fabric, Government of India had taken new initiatives in addition to ongoing other schemes and programmes by launching new scheme, namely, Deen Dayal Hathkargha Protsahan Yojana and set up a National Centre for Textile Design (NCTD) recently.

1) DEEN DAYAL HATHKARGHA PROTSAHAN YOJANA:

The scheme has come into operation with effect from April 2001. It is a comprehensive scheme for handloom sectors to take care of a wide range of activities such as, product development, infrastructural and institutional support, training of weavers, supply of equipment and marketing support, etc. both at macro and micro levels in an integrated and coordinated manner for an overall development and benefit of handloom weavers. It also, attempts to provide such facilities, which would enable the weavers within co-operative fold as well as outside, to take up production as per the market demand. The scheme attempts to assist the needs of weavers for working capital, basic inputs, creating awareness and to support quality fabric productions through appropriate design intervention for increase in productivity along with provision for publicity, marketing and transport incentives, etc.

The Government of India has sanctioned a sum of Rs. 240.69 lakhs and released a sum of Rs. 120.28 lakhs as first installment Central share for implementation of 64 projects.

2) NATIONAL CENTRE FOR TEXTILE DESIGN (NCTD):

National Centre for Textile Design was set-up in January 2001 in Handloom Pavilion, Pragati Maidan, New Delhi to promote traditional & contemporary designs to enable the textile industry, particularly the Handloom sector, to be responsive to the rapidly changing market demand.

Objectives of the Scheme-

  • > To link weavers to the market and provide him with adequate tools to respond to the rapidly changing market situation and demands.
  • > To link all people belonging to the textile industry with the developments in other fields.
  • > To give weavers, workers and designers greater exposure and access to national and international markets thereby giving them a better livelihood and avenues for more sustainable development.

3) ENFORCEMENT OF HANDLOOMS RESERVATION ACT:

The Handlooms (Reservation of Articles for Production) Act, 1985 aims to protect millions of handloom weavers from the encroachment made on their livelihood by the power loom operators and textile mill sector, by reserving certain categories of textile articles for exclusive production by handlooms.

INPUT SUPPORT:

Handloom sector is largely dependent on the organized mill sector for supply of its principal raw material namely yarns. This sector uses the bulk of its yarn in the form of hanks. The Central Government ensures regular supply of yarn to the handloom sector by enforcing the order (Hank Yarn Packing Notification) by making it obligatory on the spinning mills to pack a prescribed % of the yarn produced by them in hank form.

4) MILL GATE PRICE SCHEME:

The Scheme was introduced in 1992-93 with an objective of providing all type of yarn to the handloom weavers’ organizations at the price available at Mill Gate.

5) NATIONAL HANDLOOM DEVELOPMENT CORPORATION (NHDC):

National Handloom Development Corporation (NHDC), a Government of India undertaking, is the only agency authorized to implement the scheme. The scheme benefits the following organizations and their member weavers.

  • > All Handloom Organizations of National/State/Regional level.
  • > Handloom Development Centres;
  • > Handloom producers/exporters/manufacturers registered with the Handloom Export Promotion Council (HEPC) or any other Export Promotion Council under the Ministry of Textiles, or with the State Directors of Industries;
  • > All approved export houses/trading houses/star trading houses for production of handloom items;
  • > Members of recognized/approved handloom associations;
  • > NGOs fulfilling CAPART norms;
  • > Any other agency, with the approval of the Development Commissioner for Handlooms;
  • > All types of yarn required for production of handloom items are covered under the scheme.

The Government of India is bearing the entire expenditure under the Scheme. The yarn is being arranged by NHDC from the mills as per the requirement of the user agencies and transported to the go down of the agency.

Amount Released To NHDC Under This Scheme-

> CREDIT FACILITY:

The working capital requirements of the Weavers’ Cooperative Societies (WCS) and State Handloom Development Corporations (SHDC) for production, procurement, marketing, purchase and sale of yarn, National Bank for Agriculture and Rural Development (NABARD) provides refinance facilities through State Cooperative Banks (SCB), District Central Cooperative Banks (DCCB) and Commercial Banks at concessional rates of interest. The National Scheduled Castes and Scheduled Tribes Finance and Development Corporation, National Backward Classes Finance and Development Corporation, National Minorities Finance and Development Corporation also provide working capital loans to the Weavers identified communities.

> WELFARE SCHEMES:

The Government of India is implementing Weavers Welfare Schemes that includes Health Package Scheme, Thrift Fund Scheme and New Insurance Scheme for handloom weavers.

> Health Package Scheme for Handloom Weavers-

The Health Package Scheme was introduced in March 1993. Under the Scheme, the weavers are provided financial assistance for the treatment of diseases like asthma, tuberculosis and inflammation of respiratory system, supply of drinking water, maternity benefits to women weavers, payment of additional compensation for permanent measures of family planning and infrastructure for the primary health care.

> Thrift Fund Scheme for Handloom Weavers-

The Thrift Fund Scheme for Handloom Weavers was introduced in the 7th Five Year as one of the special welfare measures from the Government of India. The Scheme envisages creation of a fund like provident fund to meet expenses towards children’s education, marriages, and religious ceremonies.

> New Insurance Scheme for Handloom Weavers-

The New Insurance Scheme was introduced in 1997-98 for providing coverage against loss or damage to dwelling due to flood, fire earthquake etc. damage to contents of the dwelling like looms, raw material etc.; medical coverage and People Accidental Insurance against accidental death at premium of Rs.120/- per annum, with a contribution of Rs.20/- by the weaver, Rs.40/- by the State Government and Rs.60/- by the Government of India.

6) HANDLOOM EXPORT SCHEME:

The importance of the handloom sector in the national economy is well recognized. On account of having the advantage of flexibility of production in small batches, uniqueness, constant scope for innovation, eco friendliness, adaptability and, above all, the element of rich artistry, this sector has the potential to contribute towards export earnings in a big way. Therefore, export of handloom products has been identified as a “Thrust Area” for the overall development of the sector. The Government is exploring the possibility of making optimal use of the resources to enhance production capabilities of exportable handloom products.

A provision of Rs. 26.00 crores was made to implement the Handloom Export Scheme during the 10th five-year plan. From 2002-03 to 2006-07 (till January 2007), 57 Export Projects were sanctioned and Rs.802.42 lakhs were released to various agencies, covering 3942 weavers. During the same period, financial assistance of Rs. 1165.20 lakh was released for participation in 47 International trade events to the Handloom Export Promotion Council (HEPC), Association of Corporations and Apex Societies of Handlooms (ACASH) and Handicrafts and Handlooms Export Corporation of India Ltd (HHEC).

7) HANDLOOM EXPORT PROMOTION COUNCIL:

The Handloom Export Promotion Council, registered under the Companies Act, 1956, was constituted in 1965 by the Government of India as the nodal agency for export promotion efforts related to the cotton handloom textiles.

The Handloom Export Promotion Council provides a wide range of services:

  • > Dissemination of trade information & intelligence;
  • > Publicity abroad for Indian handloom products;
  • > Organisation of business missions/buyer seller meets and participation in International trade events;
  • > Consultancy and guidance services for handloom exporters;
  • > Liaison with the Government of India on all procedural and policy matters relevant to the handloom export trade;
  • > Dealing with trade complaints pertaining to handloom exports;
  • > Liaison with the commercial agencies abroad for augmentation of handloom exports;
  • > Facilitating product diversification and adaptation to meet modern market requirements;
  • > Providing impetus to modernization of handlooms for the export market; and
  • > Provision of design inputs to promote export of handloom products.

Major activities of Handloom Export Promotion Council include implementation of Handloom Export Scheme. The details of export of cotton handloom fabrics and made-ups are shown in the following table.

The Indian cotton handloom fabrics and made-ups occupy a place of eminence in the markets of USA, UK, Germany, France, Sweden, Belgium, the Netherlands, Japan and Australia. The main items exported belong to the segment of home furnishing, which constitutes about 90% of our total handloom exports.

8) AILS IN HANDLOOM INDUSTRY:

Handloom weavers are facing severe livelihood crisis because of adverse government policies, globalisation and changing socio-economic conditions. The national and state governments do have several schemes pertaining to production inputs, market support and development, meant to safeguard the interests of the weaving community. Ineffective implementation of the schemes and the changed context of textile industry, increasing competition from the power loom and mill sectors have been largely responsible for the crisis in the handlooms.

Lack of information to weavers regarding various policies and schemes is no less a significant cause for the dwindling fortunes of the weaver community. Even government departments and implementing agencies related to handloom suffer from inadequate information and data resulting in a widening gap between policy formulation and implementation. In the recent decades, due to lack of information and fast paced changes, practices in handloom sector became static and apparently redundant.

Presently, government policies are increasingly influenced by the globalisation processes and are related to WTO-induced trade regimes. As the controls on exports get liberalised and domestic markets open up, the textile scenario in the country is likely to undergo drastic changes in terms of skills, inputs like designs, market trends and changing demands therein.

In earlier planning processes at the national level, development of handloom sector was seen as a stimulation for rural development, being based on local resources, local craftsmanship and catering primarily for local markets. In the first decades following India's independence, all national policies emphasised this. However, current thinking at the apex policy level is that the handloom sector is a redundant profession and is a burden on the government exchequer. Political leadership, in general, has been avoiding taking up cudgels on behalf of the weaver community.

SUGGESTIONS TO OVERCOME FROM THESE PROBLEMS

The central government needs to recognise the value of the handloom sector in sustainable development. On its own, the government would never be able to provide employment to such a large workforce. Going by the logic of liberalisation itself, the government in turn ought to formulate, promote and encourage policies that sustain this employment. Government has to ensure a 'level playing field' for this sector towards healthy competition among the different sub-sectors of textile industry.

The following are aspects that require immediate attention:

1. Raw Material Supply

Access to raw material such as yarn, dyes and dyestuffs has become a problem. Weaving is a rural and semi-rural production activity and weavers have to go far to get these raw materials. To top it off, yarn prices are steadily increasing. As a result, there is a perennial shortage of yarn for the weavers. Despite a few schemes, the hank yarn access issue has not been resolved.

2. Raw Material Prices

Handloom primarily uses natural fibres such as cotton, silk and jute. Prices of these fibres have been increasing during production and processing. Cotton production in India is expensive because of intensive and high usage of costly agricultural inputs such as pesticides and fertilisers. Secondly, while the fibre production most often happens in the vicinity of the weavers, their processing is done in distant areas, and as such the prices to the weaver are higher.

3. Infrastructure and Investment

Investment in handloom sector has thus far been limited to input supply costs. There is no investment on sectoral growth. While there have been some piece-meal projects such as workshed-cum-housing and project package schemes, they merely perpetuate the existing conditions. There has been no thinking on basic requirements of the producer. Facilities such as land, water and electricity need to be provided in many places that are a harbour for handloom manufacturing. On the other hand, powerlooms are getting more usable support from the government in procuring land, water and electricity.

4. Design Improvements

While there are suggestions that handloom sector should increase its design in response to changes in the market, the bottlenecks are many. The lack of change is not due to the weaver not being amenable to change, as is bandied. Rather, it is due to unwillingness of the investor to take risks and provide incentive to weavers for effecting the change.

5. Market for Products

Handloom products require more visibility. This means better and wider market network. One-off exhibitions organised with the support of government do not suffice.

6. Patenting Designs/Varieties

Handloom designs are not protected. As a result, investors are not interested lest they end up with the risk and those who copy the benefits. Protection options include development of handloom/silk/jute marks and registration under Geographical Indications Act.

7. Free Export/Import Trade - Opportunity

Post the WTO Agreement on Textile Clothing, there is going to be more free export and import of textiles. The handloom sector, as a traditional area, can claim some special packages or discriminatory measures, to protect this kind of production.

8. Cooperative System

While cooperatives do help in maximising the benefits for weavers in the entire chain of production, their present condition a cause of concern. The handloom cooperative system is riddled with corruption and political interference. Cooperatives have to become independent of district-level government officers in terms of management and decision-making.

9. Intermediaries (Individuals/Institutions)

Government has created a few research, training and input institutions to help the handloom sector. These institutions include weaver service centres, institutions of handloom technology, NIFT, etc. But their performance has been below par and their presence has not helped in obviating the problems of handloom weavers.

10. Budget Allocations

Allocations for handloom in national and state budgets are being reduced. This has to be reversed. Budget has to increase with new schemes which address the problems of the sector, in view of the linkage and the need to protect rural employment.

11. Enhancement of Value

There is a need for enhancing the value of handloom products through utilisation of organic cotton and organic yarn, application of natural dyes and by increasing the productivity of the looms through research and innovation – for example, changes in the width of the looms and some appropriate technical changes.

12. Competition and Unfair Competition from Mills and Powerlooms

Competition is now uneven, with mill and powerloom sector getting subsidies in various forms. Secondly, powerlooms have been undermining handloom markets by selling their products as handloom.

13. Wages, Employment and Livelihood Issues

Wages have not increased in the last 15 years. Some sections of handloom weavers are living in hand-to-mouth conditions, with no house or assets. These issues need to be addressed by the government; at least effectively implement the Minimum Wages Act.

HIGHLIGHTS OF UNION BUDGET 2006-07 FOR HANDLOOM SECTOR

The Budget has made a special mention that the textile industry is geared up to meet the global challenge. The Finance Minister P. Chidambaram in his budget speech 2007-08 has stated that for Handlooms a cluster approach for the development of the handloom sector was introduced in 2005-06 and 120 clusters were selected. 273 new yarn depots are opened in till now and the Handloom Mark was launched. The Government proposes to take up additional 100-150 clusters in 2007-08.

The 12 schemes that are now implemented will be grouped into five schemes in the Eleventh Plan, namely, Integrated Handloom Development Scheme (IHDS), Marketing and Export Promotion Scheme (MEPS), Handloom Weaver Comprehensive Welfare Scheme (HWCWS), Mill Gate Price Scheme (MGPS) and Diversified Handloom Development Scheme (DHDS). The health insurance scheme has so far covered 300,000 weavers and will be extended to more weavers. The scheme will also be enlarged to include ancillary workers. The provision for the sector has also been increased from Rs.241 crore in 2006-07 to Rs.321 crore next year.

CONCLUSION

The Handloom Textiles constitute a timeless part of the rich cultural Heritage of India. The element of art and craft present in Indian handlooms makes it a potential sector for the upper segments of market domestic as well as global. However, the sector is beset with manifold problems such as obsolete technologies, unorganized production system, low productivity, inadequate working capital, conventional product range, weak marketing link, overall stagnation of production and sales and, above all, competition from power loom and mill sector. As a result of effective Government intervention through financial assistance and implementation of various developmental and welfare schemes, the handloom sector, to some extent, has been able to tide over these disadvantages. Thus, Handloom forms a precious part of the generational legacy and exemplifies the richness and diversity of our country and the artistry of the weavers.

REFERENCE:

1.texmin.nic.in/annualrep/ar02_c05.
2.apparel.indiamart.com/industry/handlooms/
3.www.hepcindia.com
4.texmin.nic.in/tex_07.htm
5.www.ieport.com/epc.htm
6.ww.indiatogether.org/2006/feb/eco-handloom.htm


ABOUT THE AUTHORS:

1. Dr. S. SUDALAIMUTHU
S.Sudalaimuthu
Lecturer
Department of commerce
Bharathiar University
Coimbatore 641046
E.mail:
sm_vcas@yahoo.com

Field of Specializations:
Accounting, Financial Management, Banking, E-Commerce and Computer subjects (C , Visual Basic, MIS)

Achievements:

(1) Actively engaged in guiding M.Com, M.Phil and Ph.D students, M.Com Projects guided: 42, M.Phil Projects guided: 17, currently guiding 6 Ph.D and 5 M.Phil students.
(2) Seminar / Workshop organized in the College level: 33,State level: 2,National Level: 1
(3) Seminar / Workshop participated: 42,
(4) No of papers presented in the State level and National Level Seminar: 42,
(5) No of Papers presented in the International Seminar: 11
(6) No of papers published: 6,
(7) Developed many programs in C and Visual Basic for various commerce applications,
(8) Familiar in using Accounting Packages: Tally and EX-Next Generation,
(9) Designed and introduced five job oriented certificate courses in Vidya sagar college of Arts and Science, Udumalpet.,
(10) Teaching Experience: U.G - 16 years, PG - 11 years.

= = = = = = = = =

2. S. DEVI.
M.Phil Scholar
Department of Commerce
Bharathiar University
Coimbatore.
E-mail:
sdevi_mphil@yahoo.co.in

S.Devi did her M.Com (2005) in Department of Commerce, Vellalar College for Women, Erode. At present she is doing research program in the Department of Commerce, Bharathiar University, Coimbatore. She Presented 9 Papers in various National and International conferences. Among this 2 international level conferences, 1international symposium and 6 national level Seminars.


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