Home / Knowledge / News / Textiles / Handloom societies in deep trouble
Handloom societies in deep trouble
12
May '09
Shortage of working capital in the primary handloom societies in the district of Kollam is creating a very big crisis. These societies are finding it difficult to purchase yarn for weaving as well as to provide wages to the workers.

Due to crisis in the industry, the number of functioning societies slipped down to 20 from 150 over the years. The remaining primary handloom societies too are on the verge of closing.

This crisis also affects the number of workers employed in the societies. A society has only 10 to 12 workers today, which used to employ average of 50 to 75 workers earlier.

The top handloom society 'Hantex' refuses to procure the products of the primary societies because of the financial crisis. These primary societies are now depending upon the festival seasons to sell their products.

During the four festivals in the state, the government announces 20 percent discount for the handloom products, however, the Government owes the societies huge amounts as rebate dues, which comes to around Rs. 1.5 million in this district.

The Kollam Cooperative Spinning Mills has Rs. 0.7 to 0.8 million as outstanding dues from these primary handloom societies of the district; hence, they have also stopped supplying yarns to these societies.

The societies have also large out standings and unpaid dues with the PF and ESI, due to which the workers working in the societies are not able to access benefits. The societies were promised funds from the Central and State Governments to clear the PF and ESI dues.

However, the Industries Department officials refuse to remit the amount saying that the societies had not deposited the amount they had collected from the workers in these accounts. The societies will get fund only if they deposit that amount, which may not be possible for the societies those are struggling for existence.

The wage structure in the industry is very low as the daily wage of each worker is only Rs. 40 to 45, which was revised with a hike of Rs. 3 three years back. The workers in the industry are leaving the jobs on account of these low wages.

Primary Handloom societies are not getting any kind of financial support from the District Industries Centre. While the other parts of the state such as Kannur and Balarampuram handloom industry managed to get government funds even without engaging in production, as primary handloom societies here sell the products purchased from power looms.

Experts say that the primary handloom societies can survive only in case they are supported with working capital, arrangements for purchase of the yarn, facilities for the sale of product's produced by them as well as modernization of the industry.


Fibre2fashion News Desk - India


Must ReadView All

Decision in UK budget to attract investment in retail: BRC

Textiles | On 24th Nov 2017

Decision in UK budget to attract investment in retail: BRC

British finance minister Philip Hammond’s announcement in his budget...

Courtesy: Shangdong Ruyi

Textiles | On 24th Nov 2017

Shangdong Ruyi to acquire major stake in Bagir

Shangdong Ruyi Technology Group Ltd, one of the leading Asian global...

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Apparel/Garments | On 24th Nov 2017

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Chinese e-commerce firm JD.com has invested $44 million in Tiki.vn, a ...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search