Majority of the Handlooms in the Cluster are working under the patronage of the KHDC. The Handloom weavers who work for KHDC produce furnishing, Terry towels, Bed sheets, Suiting, Shirting, floor coverings, tablemats ,Cut shuttle durries, etc. The remaining weavers in the Cluster limit themselves in producing silk, silk mix and cotton traditional saris, almost all the weavers in the cluster are depending on job work. The weavers working under KHDC get raw materials from KHDC and they surrender their woven fabrics to the KHDC, The weavers who get the raw materials from cooperative societies produces for respective cooperative societies, the weavers under the master weavers to their master weavers, the weavers of khadi board to their respective khadi board. These weavers are paid the conversion charges on piece rate basis. Only the tiny weavers do their business on their own.

The KHDC and Khadi Board market their products through the chain of its sales outlets, and directly to different government institutions. The cooperatives and the small manufacturer weavers supply their goods to local retailers and wholesalers. The tiny weavers are selling their products in the local market directly to the consumer or to the local trader.

It has been observed in the value chain analysis that the local traders enjoy greater margin than the others. But proper intervention for cost reduction in inputs through bulk purchase helps to improve pre-processing methods. Upgrading the designs for value addition of the product, introduction of direct selling mechanism instead of the trader will help increase in the earning of the weavers and the margins of the entrepreneurs.

The linkages of the core actors with most of the public service providers are very weak. With the exception of the weaver service centre and the Handloom and textiles Department linkages with other service providers have to be strengthened.

Since all the support institutions are existing in the cluster there is large scope for intervention in all the major areas such as design development, value addition to product, up gradation of technique, product diversification, establishment of CFC, Common marketing facility, Brand Equity etc.

Gadag Handloom Cluster

Gagad Handloom cluster is a famous cotton trading centre for Jayadhar variety of cotton. It has occupied 70kms surrounding area of Gadag.

History of the Gadag Cluster shows the rise and fall of its products. Even the products manufactured have been changed from ordinary cotton saris to mercerized cotton saris and high quality of silk saris. Today more than 50% of the production is only of the cotton saris. Though the profit margin is meager in cotton saris but enjoys better demand compared to silk saris. These "Gaadi dhadi" traditional saris are largely worn by women of north Karnataka and some parts of Maharashtra. These people prefer these saris for almost all their cultural and traditional functions because of its combination of harmonious colors, quality and richness.

While interacting with &sec=article&uinfo=<%=server.URLEncode(2172)%>" target="_blank">fibre2fashion Mr. Ramachandrappa N.T of Gadag Handloom Cluster shares his idea on aim of handloom cluster "Upliftment of handloom activities, creating the brand image of cluster products at National Level, increasing the earnings of handloom weavers, marketing linkage to the handloom weavers and creating the infrastructure facilities i.e., Common Facility Centre, Dye House etc." In Gadag cluster approximately 3900 workers are working and Infrastructure facilities available here for them are Common facility centre, Dye house with Cabinet Dyeing Machines of about 2500 Frame looms, 100 Jacquard looms, 20Nos of Reed space looms of up to 90, Testing lab and Common weaving centre. These 3900 workers are manufacturing approximately 1000 Bed sheets, 500 meter Furnishing, 50000 meter Dress material, 1000Nos Traditional Sarees, 500 Carpets, 300 Terry Towels per month.

As per him, "Government supports handloom clusters by proving subsidies like for Gadag cluster Government of Karnataka has introduced Vidya Vikasa Scheme. Under this scheme government supplying uniform cloth to Education department and to subsidized saree dhoti as cluster having about 1200 looms working. In addition government has introduced Weavers Health Package Scheme, Housing Scheme and Insurance."


Benefits of Handloom Cluster

Mr. Ramachandrappa N.T adds, "Handloom clusters are helping weavers by providing technical guidance for product diversification as per market trend, sourcing good quality raw materials and loom accessories. Clusters also provide facilities like dyeing, testing lab and common facility centre and new product development and employment generation. Moreover after implementing the cluster during the last 3 years, the quality of the products improved, diversified the varieties as per market trend by introducing reactive colours, created brand image on national level and increased the wage earnings of handloom weavers to the extent of 10% - 15% for about 500 weavers."