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Handloom Industry
Introduction The Handloom sector plays a very important role in the country’s economy. It is the largest economic activity after agriculture, providing direct and indirect employment to more than 65 lakh persons engaged in weaving and allied activities. Due to effective Government intervention through financial assistance and implementation of various developmental and welfare schemes, this sector has been able to withstand competition from the powerloom and mill sectors. As a result of these measures, the production of handloom fabrics registered more than ten -fold increase from a level of 500 million sq. metres in the early fifties to 6792 million sq. metres in 1998-99. This sector constitutes nearly 19 per cent of the total cloth produced in the country and also contributes substantially to the export earnings. 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 formulated by this office relate to : a) Employment Generation Programmes b) Modernisation and Upgradation of Technology c) Input Support d) Marketing Support e) Publicity f) Infrastructural Support g) Welfare Measures h) Composite Growth Oriented Package i) Development of Exportable Products j) Research & Development All these measures
aim at meeting the objectives enshrined in the Directive Principles of
State Policy for the growth of decentralised handloom sector. All the schemes
are weaver oriented. Concerted efforts are being made through the schemes
and programmes to enhance productivity, income and socio-economic status
of weavers by upgrading their skills and providing essential inputs.
Enforcement of Handlooms Reservation Act The Handloom (Reservation of Articles for Production) Act, 1985 aims to protect millions of handloom weavers from the encroachment made on their livelihood by the powerloom and textile mill operators, by reserving certain textile articles for exclusive production by handlooms. Eleven textile articles are presently reserved for exclusive production by handlooms, vide notification dated 26.07.1996. The progress of implementation
of the aforesaid Act by various implementing agencies during 1998-99 and
1999-2000 is as follows :-
To ensure effective
implementation of the Act, releases under the scheme ‘Central Assistance
to the States/UTs for setting up of Enforcement Machinery’ has been made
to the various States, namely Bihar, Rajasthan, Kerala, Tamil Nadu, West
Bengal, Haryana etc. The Scheme to set up Offices of Enforcement Machinery
shall be fully funded by the Centre during the Ninth Five Year Plan. During
the Tenth Five Year Plan, central assistance will be reduced in a tapering
manner @ 20% per annum. The State Governments have been asked to send their
commitment to this proposal. On the basis of such commitments, funds are
being released to different states. A sum of Rs. 59.54 lakh was released
during 1998-99 and during 1999-2000 a sum of Rs. 69.69 lakh (upto January
2000) has been released.
Input Support Handloom sector is
largely dependent on the organised mill sector for supply of its principal
raw-material, namely Yarn. This sector uses the bulk of its yarn in the
form of hanks. The Central Government has been making efforts to ensure
regular supply of yarn to the handloom sector at reasonable prices through
- (a) Hank Yarn Obligation Scheme; (b) Loan assistance to the National
Cooperative Development Corporation (NCDC) for setting up of new/expansion/
modernisation of Weavers’ Cooperative Spinning Mills; and (c) Scheme for
supply of yarn to handloom weavers at Mill-Gate Prices.
Mill Gate Price Scheme The Scheme was introduced in the year 1992-93 with an objective to supply yarn at Mill Gate Price to the handloom weavers through National Handloom Development Corporation (NHDC). Under the scheme, till the year 1994-95 the rate of reimbursement to the NHDC was @ 2% of the value of yarn supplied, which has been enhanced from 1995-96 @ 3.5% and from 1997-98 onwards @ 4%. The agencies covered upto 1994-95 were limited to State Apex/Regional/Primary Weavers Cooperative Societies and Handloom Development Corporations, which has been extended from 1995-96 onwards to the Handloom Development Centres and Primary Societies having a turnover of more than Rs. 50.00 lakhs. Since 1997-98, All India Handloom Organisations, Handloom Development Centres, approved Export Houses, NGOs fulfilling CAPART norms, etc. are eligible to avail the benefit under the Scheme. In line with the Government of India’s decision to promote production of high value items in the handloom sector as well as the increasing use of jute and jute blended yarn for production of jute and blended fabrics, the Government of India from 1996-97 has decided to include supply of Silk and Jute Yarn also under the scheme. During the last 5
years, the following releases were made to NHDC under this scheme :
Under the scheme,
supplies of yarn have increased from 49.42 lakh kg. in 1993-94 to 163.32
lakhs kg. during 1998-99.
Assistance to NCDC Since the inception
of the scheme and upto the period December, 1999, a sum of Rs. 94.50 crores
have been released to National Cooperative Development Corporation (NCDC)
for assisting 57 Weavers’ Cooperative Spinning Mills.
Employment Generation During the year 1998-99,
a total production of 6792 million sq. metres of cloth was achieved. The
provisional direct and indirect employment generation on this production
has been estimated at 124 lakh persons. The target for production for 1999-2000
has been fixed as 7708 million sq. metres.
Training to Handloom Personnel Training in modern
management techniques of production, marketing, accounting cost analysis,
etc. is an essential input in the handloom development programme. There
is also a need for personnel to be trained in design development and market
trends. To accept the challenges and for overall development of handloom
industry, the Office of the Development Commissioner (Handlooms) has been
implementing various training programmes to increase the know how of handloom
personnel at different levels through various institutions like National
Council for Cooperative Training (NCCT), National Handloom Development
Corporation (NHDC), National Cooperative Union of India (NCUI) and Petrofil
Cooperative Ltd. etc. In the year 1998-99 funds to the tune of Rs. 35.08
lakhs were released to NCUI, NCCT and other organisations for imparting
cooperative training. During 1999-2000 (upto Dec., 99) Rs. 27.12 lakhs
has been released to NCCT, NCUI and NHDC.
Weavers’ Service Centres/ Indian Institutes of Handloom Technology WSC/IIHT) Weavers’ Service
Centres and Indian Institutes of Handloom Technology constitute Research
and Development Wings of the Office of the Development Commissioner for
Handlooms. 24 Weavers’ Service Centres and 4 Indian Institutes of Handloom
Technology have considerably strengthened the handloom industry by providing
technically trained manpower, development of new designs, improvement in
weaving and processing techniques, upgradation of skill etc. throughout
the country. The Decentralised Training Programme was introduced in 1987
with an objective to generate gainful employment by upgrading the skills
to enhance the productivity and income of weavers. Under this programme,
assistance is provided towards the cost of material, looms, accessories,
equipments, stipend to the trainees and honorarium to the Master Trainer.
The implementation of the Scheme is made through the Weavers’ Service Centre
in coordination with the State Government. Upto the year 1998-99, an expenditure
of Rs. 706.13 lakhs was incurred to cover 12237 weavers. During 1999-2000
the target is to cover 3,000 weavers. Till 31.12.1999, 2567 weavers have
been covered under this Scheme and sum of Rs. 137.23 lakhs sanctioned.
Publicity and Exhibition To provide marketing
support to handloom agencies and the individual weavers, the Office of
the Development Commissioner for Handlooms organises the National Handloom
Expos, District Level Events, Craft Melas, etc. in different parts of the
country. For this purpose, financial support is provided to the implementing
agency towards infrastructure, publicity, etc. These activities are supportive
to the handloom agencies, weavers and also to the consumer as it provides
them an opportunity to purchase the handloom products of various states
under one roof. During the year 1999-2000, a budgetary provision of Rs.
4.50 crores has been made for publicising the development activities of
the handloom sector and facilitate marketing of handloom products through
fairs and exhibitions. In order to keep pace with the momentum and the
acceleration of publicity gained in the past year, programmes were drawn
well in advance in consultation with the State Governments. During the
year 1998-99, 11 National Handloom Expos and 4 Special Expos have been
organised in the different parts of the country. Till December, 1999, 2
National Handloom Expos at Bhopal and Delhi (Delhi Haat) and 2 Special
Exhibitions at Delhi with a theme of Home Furnishing and Silk items have
been organised. The Office of the Development Commissioner for Handlooms
has also been participating in the Craft Melas at Shilpgram (Udaipur),
Suraj Kund (Haryana), Craft Bazar at Madepura (Hyderabad), Taj Mahotsav
(Agra) and Dilli Haat by sponsoring weavers for live demonstration of their
crafts together with sale of handloom products. In order to give impetus
to the marketing of handloom products, assistance is also provided to handloom
agencies/organisations like State Handloom Apex Federation, State Handloom
Corporations, etc. to organise District Level Fairs (Melas), Festivals
(Paravs) etc. in various parts of the country. Till December, 1999, funds
for 44 District Level Events have been sanctioned to the various implementing
agencies.
Scheme for Handloom Export Development The importance of the handloom sector in the national economy can not be over emphasised. On account of having the advantage of flexibility of small production run, uniqueness, innovation and adaptability, this sector can contribute towards export earnings in a big way. Export of handloom has therefore 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 products. In order to give substantial impetus to the export of handloom fabrics, made-ups and other handloom items from the country, a scheme for development of exportable products and their marketing was introduced during 1996-97. Under this scheme, the assistance is available for developing exportable products, building up of production capability for export and thereafter for marketing it. National and State Level Handloom Corporations, Apex Cooperative Societies, Primary Cooperative Societies and Handloom Cooperative Societies affiliated to/registered with and sponsored by Councils/Corporations like Handloom Export Promotion Council, Association of Corporations and Apex Societies of Handlooms, Handicrafts and Handloom Export Corporation, Indian Silk Export Promotion Council, National Handloom Development Corporation, etc. are eligible for assistance under this Scheme. Private handloom exporters can also be assisted through HEPC. The project cost in respect of the agencies sponsored by the State Government is shared by the State Government itself or by the beneficiary agency. The agencies sponsored by Central Government like HEPC, HHEC, NHDC, ACASH, etc. are entitled to 100% assistance from the Government of India under the Scheme. Since the inception
of the Scheme in October, 1996, yearwise releases made were as under :-
There is a budgetary
provision of Rs. 400 lakhs under the scheme for the year 1999-2000. Assistance
under the scheme has been availed by as many as 12 states and 7 National
Organisations/ Councils so far.
Project Package Scheme Project Package Scheme introduced in the year 1991-92 has been continued during the IX Plan period in its modified form by merging the scope of Integrated Handloom Village Development and Margin Money for Destitute Weavers Scheme. The restructured and expanded Scheme aims to provide necessary support in a comprehensive manner to mitigate the pre/on/post loom problems of the handloom weavers. Besides the weavers in general, those belonging to the Scheduled Castes/Scheduled Tribes/Minorities/Women/People below poverty line are given special attention under the Scheme. The State Governments are required to prepare specific need based projects. Funding between the Central and the State Governments/Implementing Agencies is on a cost sharing basis. While the commercial components of the project consist of 50% loan and 50% subsidy component, the non-commercial components are funded on 100% grant basis, equally shared by the Central and State Government/Implementing Agencies except in case of NE States, Societies having 100% Women/SC/ST etc. where the ratio is 75:25. During VIII Plan
period, 717 projects covering 1,66,489 beneficiaries with an outlay of
Rs. 60.61 crores were sanctioned to various State Governments. During 1997-98,
769 projects covering 64,989 beneficiaries with an outlay of Rs. 39.43
crores were sanctioned to various State Governments. During 1998-99, 938
projects covering about 78320 beneficiaries and central assistance to the
tune of Rs. 37.18 crores was sanctioned to various State Governments. Graphical
representations of project, beneficiaries covered and central assistance
released since 1991-92 to 1999-2000 (upto 31.12.99) are shown below:
Handloom Development Centres/Quality Dyeing Units Scheme (HDC/QDU) The scheme of Handloom
Development Centres (HDC) and Quality Dyeing Units (QDU) is under implementation
since the year 1993-94. It was envisaged to set up 3000 Handloom Development
Centres and 500 Quality Dyeing Units under this Scheme. The aim of setting
up of HDCs and QDUs was to make necessary arrangements for procurement
of hank yarn, preparing production plans keeping in view the market demand
and set up marketing outlets. During the 8th Plan period, 1588 HDCs and
313 QDUs were sanctioned to various State Governments involving release
of central assistance to the tune of Rs. 80.92 crores. During the year
1997-98, 260 HDCs and 78 QDUs were sanctioned to various State Governments
involving central grant assistance to the tune of Rs. 9.69 crores. The
continuation of the Scheme during the remaining period of the IX Plan for
release of balance central assistance to already sanctioned HDCs/QDUs is
under consideration. A graphical representation of year-wise funds released
and HDCs/QDUs sanctioned is shown below :
Workshed-cum-Housing Scheme The Government of India introduced the centrally sponsored scheme called "Workshed-cum-Housing Scheme" for handloom weavers from the beginning of VII Five Year Plan i.e. 1985-86. The Scheme is implemented primarily with a view to provide suitable work place to weavers and thereby achieve better productivity. The Scheme is implemented by the respective State Handloom Development Corporations, primary societies or any other specialised agency setup by the concerned State Government for the execution of such projects. During the year 1997-98,
the scheme was modified for the IX Five Year Plan and Central Assistance
enhanced as per details given below :
During the VIII Five Year Plan a total sum of Rs. 4,745.93 lakhs was released to State Governments for construction of around 80,630 units of Workshed/Workshed-cum-Houses. During the year 1998-99 a sum of Rs. 1259.00 lakhs was released to the State Governments for the construction of 14063 Workshed/Workshed-cum-Houses. For current financial
year 1999-2000, a sum of Rs. 1150.00 lakhs earmarked for the Scheme has
been released to the State Governments (as on 31.12.1999).
Welfare Package Scheme A provision of Rs.
700 lakhs has been made during 1999-2000 for Welfare Scheme i.e. Thrift
Fund, Group Insurance and Health Package Scheme.
Thrift Fund Scheme for Handloom Weavers The Thrift Fund Scheme for Handloom Weavers was introduced in the VIII Five Year Plan as one of the special welfare measure from the Government. The Scheme envisages the creation of a fund in the nature of a provident fund involving contribution from the members @ 6% of wages earned by them and a contribution of 3% of the wages by the Central and State Government, totalling 6%. The annual contribution of 3% from Central Government was earlier subject to a ceiling of Rs. 90 per benificiary. The Government of India has revised this scheme from the year 1991-92 and made it more beneficial for weavers. The weavers belonging to corporate sector have also been covered under the scheme. The present funding pattern is @ 8% of the wages from the weavers, 4% each from the Central and State Governments. The earlier ceiling of the Government of India contribution of Rs. 90 per weaver per annum has been lifted under the new scheme. During the VIII Five Year Plan, a total sum of Rs. 1348.50 lakhs was released to the State Governments to cover 12,65,044 weavers under the Scheme. During the current
financial year 1999-2000, a sum of Rs. 348.98 lakhs has been released to
the State Governments (as on 31.12.99) under this scheme.
Group Insurance Scheme The Government of India introduced a Group Insurance Scheme for Handloom Weavers throughout the country from the year 1992-93 in order to help the weaver to meet his socio-economic obligation towards his family and to act as a support system against the uncertainity of his working capacity in old age. Under the Scheme a weaver is provided an insurance coverage of Rs. 10,000/- for an annual premium @ Rs. 120/-. The premium is shared equally among the beneficiary, Central Government and State Government. During the VIII Five
Year Plan, a sum of Rs. 339.27 lakhs was released to State Governments
to cover approx. 10,68,646 weavers under this Scheme. Against release of
Rs. 58.86 lakhs to the State Governments to cover 1,47,637 weavers during
1998-99, a sum of Rs. 100.00 lakhs has been earmarked for this Scheme for
the current financial year. Of this a sum of Rs. 77.91 lakhs has already
been released to the State Government ( as on 31.12.1999).
New Insurance Scheme for Handloom Weavers In order to provide relief to handloom weavers in the 50th year of Independence, the Government of India introduced the New Insurance Scheme for weavers through United India Insurance Company for the Ninth Five Year Plan. The New Insurance Scheme provides enhanced coverage against various types of risk at the same premium of Rs. 120/- . The share of Central Government has been increased from Rs. 40/- per annum to Rs. 60/- per annum and consequently the financial burden on handloom weavers towards payment of premium has reduced from Rs. 40/- per annum to Rs. 20/- per annum. This is also in conformity with the directives issued under the Common Minimum Programme of the Government, in which special reference has been made to initiate steps for the welfare of under privileged and deprived section of the community. Handloom weavers are among the most backward sections of Society. By reduction in payment of premium from Rs. 40/- to Rs. 20/- per year the financial burden on handloom weavers will be about six paise per day (365 x 0.06=Rs. 21.90). During 1998-99, a sum of Rs. 40.00 lakhs was released to United India Insurance Company to cover 66,662 handloom weavers of the State. During 1999-2000
provision of Rs. 50.00 lakhs has been budgetted under the New Insurance
Scheme for Handloom Weavers. Of this a sum of Rs. 5.96 lakhs has been released
to the United India Insurance Company to cover 8,420 weavers of various
State Governments (as on 31.12.99).
Health Package Scheme The Government of India introduced the Health Package Scheme for Handloom Weavers during the year 1992-93. Under this Scheme weavers are provided financial assistance for the treatment of diseases like asthma, TB, inflammation of the respiratory system, cost of testing of eyes and spectacles, supply of drinking water, maternity benefits to women weavers, payment of additional compensation of permanent measures of family planning and infrastructure for primary health care. During the VIII Five Year Plan, a total sum of Rs. 2243.38 lakhs was released to the State Government to cover approx. 4,38,794 weavers under this Scheme. During the year 1998-99, a sum of Rs. 332.33 lakhs has been released to the State Governments under this Scheme to cover around 81,487 weavers. During the current financial year 1999-2000, a sum of Rs. 300.00 lakhs has been earmarked for the Health Package Scheme and Rs.228.42 lakhs (as on 31.12.99) has been released so far. Research & Development/Market Surveys & Studies Under the Research & Development/Market Surveys & Studies during the year 1998-99, 13 Projects were sanctioned to Handloom Corporation/Primary Cooperative Societies and other Organisations for the development of Handloom Sector. The main objective of these projects are to assist weavers through the supply of input support, marketing of their products etc. to improve their living and working conditions. Some projects have been sanctioned to reputed research institutes to elicit a feedback on economic, social, aesthetic, technical and promotional aspects of the handloom sector. During 1998-99 a sum of Rs. 40/- lakhs was released to different organisations under this Scheme. For the current financial
year (1999-2000) a budget provision of Rs. 40.00 lakhs has been made for
R&D Projects and of this, a sum of Rs. 39.33 lakhs (as on 31.12.99)
has been released to the concerned Organisation/Primary Societies/ Institute.
Market Development Assistance Scheme In lieu of Share Capital Assistance Scheme to Apex Societies and Corporations, Share capital and managerial subsidy to Primary Societies and Special Rebate Scheme, the Government of India introduced the Market Development Assistance Scheme to provide assistance to the handloom sector w.e.f. 1989-90. Apart from providing assistance to State Handloom Weavers Cooperative Societies, the new scheme covers national level handloom organisations viz. the All India Handloom Fabrics Marketing Cooperative Societies Ltd., Delhi; North Eastern Handicrafts and Handloom Development Corporation, Guwahati; Rehabilitation Industries Corporation, New Delhi, etc. The MDA assistance to the state organisations is shared equally by the respective State Governments and Central Government, whereas the assistance to the National Handloom Organisations is borne entirely by the Central Government. The Scheme was to be discontinued w.e.f. 1.4.98. However, on persistent demand from the State Governments, the matter was reconsidered and the Scheme has been restored with partial modifications upto March 31st, 2000. As per the revised pattern, assistance towards rebate/discount has been reduced while assistance towards strengthening the infrastructural base has been increased. The releases made
under this Scheme during 1999-2000 is Rs. 1026.17 lakhs (upto Dec. 1999).
Marketing through ACASH The Association of Corporations and Apex Societies of Handlooms, New Delhi (ACASH) was registered in 1984 under the Societies Registration Act to coordinate and promote marketing in the handloom sector. It serves as the nodal agency for supply of handloom goods to be purchased by Central Government Departments/Agencies/ Public Sector Undertakings, etc. During the year 1999-2000 (till 31st December, 1999) ACASH received and executed supply orders worth Rs. 15.03 crores. It is expected to complete supplies of goods worth Rs. 20.00 crores by 31st March, 2000. In addition to STS,
ACASH organised and participated in the following domestic and international
events during 1999-2000.
International Fairs 1) Participated in Buyer-Seller-Meet at Tokyo (Japan) from June 2-4, 1999. 5 handloom agencies from different states participated in the BSM under the banner of ACASH. 2) Participated in
Heimtextil Fair at Frankfurt (Germany) from January 12-15, 2000 and coordinated
the participation of 13 handloom agencies.
Domestic Exhibitions/Expositions 1) National Handloom Expo at Dilli Haat, Delhi from October 10-31, 1999. 75 handloom agencies from various parts of the country participated in the expo. 2. Handlooms’99 at Pragati Maidan, New Delhi from November 14-27, 1999. The exhibition coincided with IITF’99 organised by I.T.P.O. Approximately 27 handloom agencies from all over the country participated in the fair. 3) Paridhaan’99 -
A specialised exhibition on dress materials and sarees of India organised
from December 19-28, 1999 and 25 handloom agencies participated in the
event.
ALL INDIA HANDLOOM FABRICS MARKETING COOPERATIVE SOCIETY The All India Handloom Fabrics Marketing Cooperative Society Ltd., Delhi is a national level cooperative society registered under the Multi-State Cooperative Societies Act, 1984 and comes under the jurisdiction of the Central Registrar of Cooperative Societies, New Delhi. The procurement of handloom products from Apex and Primary Cooperative Societies and the promotion and marketing of handloom fabrics, both within the country and abroad are its main activities. Towards these objectives, the Fabrics Society has set up 25 retail outlets. The Society has its Export Houses at New Delhi, Salem and Chennai. Also, the Society has showrooms at Singapore and Mauritius for giving an impetus to marketing of Indian handlooms in foreign markets. The Society is headed by the Board of Directors including three government nominees. Membership of the Fabrics Society consists of State Level/Regional Level Apex Handloom Weavers Cooperative Societies (‘A’ class), Primary Level Handloom Weavers Cooperative Societies (‘B’ class) and Public Trusts, Government and Government owned/controlled organisation (‘C’ class). The number of shares were 151767 in 1998-99 against 143843 in 1997-98. The paid up share capital of the Fabrics Society has increased to Rs. 808.27 lakhs in 1998-99 from Rs. 763.61 lakhs of the previous year. The Fabrics Society’s purchases during 1998-99 amounted to Rs. 3825.97 lakhs against Rs. 4249.21 lakhs in 1997-98. The Society’s total export during 1998-99 was Rs. 2348.67 lakhs as against Rs. 2018.85 lakhs in the previous year. During 1998-99, the Society has been able to achieve a net profit of Rs. 25.10 lakhs as against Rs. 13.40 lakhs during the previous year. The Society was also able to achieve a sales turnover of Rs. 54.19 crores during 1998-99 as against the turnover of Rs. 56.01 crores during the previous year. During 1999-2000, the target has been kept at Rs. 60.20 crores.
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