Odisha plans Interest-free loans for textile organisations

16 Jun '20

2 min read

Pic: Shutterstock

The Odisha state directorate of textiles has planned to provide interest-free working capital loan to organisations like Boyanika, Sambalpuri Bastralaya and Odisha Cooperative Tassar and Silk Federation Ltd (SERIFED) that have been entrusted with the task of extending a helping hand to weavers to boost their capacity, especially in market linkage.

Boyanika and Sambalpuri Bastralaya reportedly account for three-fourths of the total sales of the cooperative sector in the state.

Department officials feel these organisations need to take extra efforts during the coming years to liquidate the unsold cloth lifted this year. Some officials believe that the recovery process may take four to five years to bring back the situation to normalcy, according to a newspaper report in the state.

Sales at Boyanika were down by ₹608 lakh in March year on year (YoY) due to the lockdown. In April and May, its sales were down by ₹647 lakh YoY. Boyanika is also faxing a dearth of funds.

Sambalpuri Bastralaya, which engages around 3,000 weaver households in the state, is said to have lost ₹315.59 lakh in March 2020 YoY and by ₹559.13 lakh in April-May YoY.

The proposal of interest free working loans for such organisations is now with the higher officials in the handloom, textile and handicrafts department for approval.

Fibre2Fashion News Desk (DS)

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