Report on - Planning Commission

1 Report on Growth and Prospects of the Handloom Industry Study Commissioned by the Planning Commission Seemanthini Niranjana Soumya Vinayan For Dastkar andhra , 2001 Contents Acknowledgements Preface Part I. The Problem and the Context Introduction: need for an informed debate on handloom industry 1 An overview of textile industry in India 3 Framework of the study: objectives and methodology 12 Part II.

2 The Study Field Acc ounts Scale and organization of weaving in andhra Pradesh 19 The co-operative effort 42 Markets 60 II .4. Comparative data from other weaving centres 75 Part III. Policy Perceptions and Prospects of Handloo m Industry Assessing the policy framework 111 Prospects of the handloom industry: conclusions and recommendations 124 Bib liography Appendice s Acknowledgements We would like to acknowledge and thank: - Uzramma, for being an unfailing source of support and ideas.

3 - Dr. Jhumur Lahiri, Prof. , M. Mohan Rao and other members of Rashtra Chenetha Karmika Samakhya. - Dr. Kanakalatha Mukund, Dr. Sasheej Hegde and C. Shambu Prasad for raising questions and for help with materials. - Rajan of HLWDS, Trivandrum; James Mathew and Arakkan Balan from Kannur; Nazeer Kamal from Gulbarga and Guled from Ilkal, Karnataka; Rosamma Muzhangil from Kanyakumari, Tamilnadu; Prof. Bose, Nivedita Ray and Sanjukta Malakar from Calcutta. - Hema, Shravanti, Sambhavi, Moid, Kumar and Siddaiah of Dastkar andhra for arrangements during the seminar on Growth and Prospects of the Handloom Industry held as part of this research project.

4 - Dr. , Dr. Dreze and all the other seminar participants. - All the many weavers who shared their views and experiences with us. - The libraries at Centre for Economic and Social Studies, Hyderabad; the Department of Archaeology and Museums, Hyderabad; the andhra Pradesh State Archives; the andhra Pradesh Gazetteers Office and the Directorate of Handlooms and Textiles, andhra Pradesh. Preface The handloom sector occupies a distinct and unique place in the Indian economy, besides being the largest generator of non-farm rural employment.

5 While available statistics indicate an economic sector of considerable size, there is still immense scope for expansion. The handloom sector in indeed capable of exponential growth, with proper identification of its needs, a reasonable level of resource input and structural attention. Any initiative in this direction, however, is hampered by a paucity of detailed ground level data. The generation of such information is an urgent necessity today, since programme formulations for handloom weavers must be based on regional specificities and conditions of weaving.

6 The objective of this study, commissioned to Dastkar andhra by the Planning Commission , has been to generate such field data, which can become the basis for future interventions. It identifies areas of potential growth in the handloom sector, and indicates models for intervention based on ground realities. It focuses on different handloom regions of andhra Pradesh, with a view to bringing out specificities in weaving and to identify particular problems. To put issues in a larger perspective, comparative accounts of handloom weaving in Kerala, Karnataka, Tamilnadu and West Bengal are drawn on.

7 A unique feature of the study has been the active collaboration between the perspectives of primary producers (weavers), field researchers and academicians. As part of the study, a seminar was held on the theme Growth and Prospects of the Handloom Industry (September 23-24, 2001), which provided an opportunity for interaction of the above groups with policymakers as well, leading to a stimulating discussion and debate on a range of issues pertaining to the industry. The Report incorporates primary field level data and secondary information on handloom weaving, followed by an overview of policy initiatives.

8 It also sets forward specific recommendations based on the needs and problems identified in the study. In these efforts, we have been supported by the expert advice of Dr. , University of Hyderabad, as well as weaver organizations such as Rastra Chenetha Karmika Samakhya, andhra Pradesh and Handloom Protection Forum, Trivandrum. Part I. The Problem and the Context Introduction: the need for an informed debate on the handloom industry India s passage into modernity/ industrialization has centred, to a significant extent, on the cotton textile industry.

9 Tracing the importance of the textile sector in the Indian economy also brings us face to face with the different components such as the mill segment, the handloom segment and the powerloom segment that make up this whole. These segments differ in terms of volume of output, technology, the organization of production and so on and are often placed in competing positions with one another, competing for raw materials, markets, etc. These differences render futile any attempt to generalize about the textile sector as a whole.

10 Indeed, successive textile policies of the government have been an exercise in striking a balance between these segments. The terms on which these various segments are appraised, however, have changed from time to time. For instance, while earlier policies stressed the employment potential of the handloom industry and sought to strengthen it with appropriate measures such as the provision of adequate yarn, reservation of products, etc., considerations such as productivity and competitiveness have become the ruling factors in judging performance of sectors over the last decade.