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REFERENCE NOTE

No. 17/RN/Ref./July/2016

For the use of Members of Parliament NOT FOR PUBLICATION1

FACILITIES TO WEAVERS

Prepared by Smt. Rachna Sharma, Additional Director (23034591) and Smt. Rashmi Kapoor, Joint Director of Lok

Sabha Secretariat under the supervision of Smt. Kalpana Sharma, Joint Secretary and Smt. Anita Khanna, Director

The reference material is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the text. This Service does not accept any responsibility for the accuracy or veracity of the information or views contained in the note/collection.

MEMBERS' REFERENCE SERVICE

LARRDIS

LOK SABHA SECRETARIAT, NEW DELHI

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FACILITIES TO WEAVERS

In October 2014, Prime Minister, Narendra Modi in his first radio message

to the nation urged every Indian to use something made of Khadi - the Indian

handloom associated with the country‟s freedom struggle. “Whether a bedspread

or just a handkerchief, own a piece of Khadi and it will benefit the poor,” he said.1

Introduction

Handloom weaving is one of the largest economic activity after agriculture,

providing direct and indirect employment to more than 43 lakh weavers and allied

workers. This Sector contributes nearby 15 per cent of the cloth production in the

country and also contributes to the export earning of the country. A total of 95 per

cent of the world‟s hand-woven fabric comes from India. The Government of

India, since independence, has been following a policy of promoting and

encouraging the handloom sector through a number of programmes and schemes.

Cloth Production by Handloom Sector2

(in million sq meters) Year Cloth production

by handloom

sector

Share of

handloom in

the total cloth

production

Ratio of

handloom to

powerloom (in

terms of cloth)

Total cloth

production*

2008-09 6677 15.9 1:5.04 42121

2009-10 6806 14.9 1:5.41 45819

2010-11 6949 14.6 1:5.59 47083

2011-12 6900 14.8 1:5.42 46600

2012-13 6952 11.22 1:5.47 61949

2013-14 7104 15.30 1:5.18 46425

2014-15 7203 15.18 1:5.24 47438

2015-16

(upto Nov.

2015)

4904 15.51 1:5.13 31624

*the total cloth production includes handloom, powerloom and mill sector excluding hosiery, khadi, wool and silk.

1 India. Planning Commission. Plancom Paper on Weavers: Report, November, 2014

2 India. Ministry of Textiles, Annual Report 2015-16, pp. 95-96

Problems plaguing the Sector

In textile production, handloom fabric competes with mill made fabric.

The labour costs paid in handloom is high as compared to those in the mill

industry.

Price of mill made fabric is almost 30 per cent less than handloom.

Unequal positioning of handloom with powerloom and mill.

Imitation of handloom by mill and powerloom.

The price differential between the products of mill/powerloom and the

handloom leaves the weaver vulnerable in many ways. There is a serious threat to

his livelihood when the market fluctuates, since he is not stable enough to ride out

any decrease in income. As he is a small buyer, negotiation with raw material

suppliers is almost negligible, and any fluctuation in yarn price directly impacts the

weaver‟s income. The 1990‟s witnessed starvation deaths of weavers due to lack of

business, and suicides by cotton farmers because of insurmountably high debts.3

According to the Third Handloom Census of India, only 25 per cent of weaver

households report that their children are interested in taking up handloom as a

profession.

Despite being such a large employer in rural India with a workforce

comprising of 77 per cent women, the Sector has largely remained poor and

lacking in basic facilities for a vast majority among the weaver population. 4

Improving working conditions of Weavers

With a view to improve the working conditions of handloom weavers and

for the sustainable development of handloom sector, the Ministry of Textiles,

3 Stopping Migration From Villages: Challenges for the Handloom Sector; Yojana, May, 2011, pp 39-40

4Op.Cit. Plancom paper on weavers: Report

through various schemes and programmes, has adopted focused, flexible and

holistic approach by facilitating marketing of handloom products, infrastructure

development, brand building and empowerment of weavers by organizing them

under Self-help groups, training and skill upgradation, easy access to raw material

at subsidized prices and easy credit flow at low interest rate together with better

health care and life insurance under welfare schemes, etc.5

A number of steps have been taken in the light of new strategy for revival of

handloom schemes for weavers. The major pillars of the New Strategy are as

under:-

1. National Handloom Development Programme

The National Handloom Development Programme (NHDP) is implemented

as a single Centrally Sponsored Programme for development of handlooms, having

following components:-

Revival, Reform & Restructuring (RRR) package - for the handloom sector

covers waiver of over-due loan 100 per cent principal and 25 per cent of

interest as on 31/3/2010 and recapitalization assistance of eligible Apex and

Primary Weavers Cooperative Societies and individual weavers. It also

provides margin money @ Rs.10,000/- per weaver, fresh loan at @6%

alongwith credit guarantee for 3 years.

Comprehensive Handloom Development Scheme (CHDS) has been

formulated by merging the components of Integrated Handloom

Development Scheme (IHDS), Marketing & Export Promotion Scheme

(MEPS), Diversified Handloom Development Scheme (DHDS),

implemented during the 11th

Plan.

5 Improving working conditions of weavers: PIB Release dated 28.11.2014.

Sub-components of the CHDS are as follows:-

1. Cluster Development Programme.

2. Marketing Incentive

3. Handloom Marketing Assistance.

4. Development and strengthening of the handloom institutions,

including Handloom census6

2. Strengthen Handloom Institutions

Various steps have been taken in order to strengthen handloom institutions,

in order to produce graduates with better employment opportunities and skills to

serve the handloom sector.

Setting up of new Indian Institute of Handloom Technology (IIHT) in

Central Sector – A new IIHT has been functioning in West Bengal

since 04/08/2014 for conducting diploma course in handloom and

textile technology with an initial intake of 30 students.

Setting up of new Weavers Service Centres (WSCs) in Central Sector

– Three new WSCs have started functioning at Aizwal, Dimapur and

Ranchi.

Introduction of degree course in IIHT – Degree course „B.Tech. in

Handloom & Textile technology‟ has been introduced at IIHT, Salem

from academic year 2015-16.

Continuation of IIHT, Bargarh – An IIHT was set up at Bargarh

(Orissa) in the 11th

Plan, to cater to the need of handloom industry of

Orissa and adjoining States.

The Union Textiles Minister has laid the foundation stone of an

Integrated Textile Office Complex at IIHT, Varanasi, to provide a

6 Op.Cit Ministry of Textiles, Annual Report 2015-16, pp 97

common platform to all stakeholders, including weavers, exporters

and marketing agencies.

3. Credit flow to handloom sector

To streamline the credit flow to handloom sector, it has been decided to take

up special campaign on fast track for completing the reconciliation of accounts of

Handloom Cooperatives and individual weavers to issue NoC to the concerned for

availing fresh loan. A pilot project has been launched in partnership with Punjab

National Bank in Varanasi and Bhubanewar to provide Rupay card to weavers for

loans under the PM Mudra Yojana and benefits of Concessional Credit Component

are being provided through this PNB Weaver Mudra Scheme.

4. Yarn Supply Facility

National Handloom Development Corporation has opened 10 yarn

depots-cum-warehouses in 12th

plan so as to ensure timely supplies to the users on

cash basis, besides taking care of individual weavers who need yarn in small

quantity.

5. E-marketing of handloom products

A policy framework to promote e-marketing of handloom products has been

launched, in order to promote marketing of handlooms in general and to reach the

younger customers in particular. Funds allocated, released and utilised for welfare

schemes for handloom weavers during the last three years are shown in

Annexure-I.

Some key features

The Prime Minister Shri Narendra Modi launched the first National

Handloom Day on 7th

August 2015 at a national level function in

Chennai. August 7 will henceforth be celebrated as the National Handloom

Day.

The „India Handloom’ brand has been launched by the Prime Minister on

the first National Handloom Day (on August 7, 2015) for better market

positioning of quality handloom products.

To promote handlooms with fashion, a National Workshop on Handlooms

and Fashion, Exhibition and Fashion Show was organized at NIFT,

Bhubaneswar in January 2015. 7

Health Insurance Scheme for weavers

The Government has issued the guidelines for the implementation of Health

Insurance Scheme (HIS) for weavers under Rashtriya Swasthya Bima Yojana

(RSBY). This scheme would be implemented by Ministry of Health and Family

Welfare for the year 2016-17 and the budget for the same would be provided by

the Ministry of Textiles. States would implement the scheme on the same norms as

RSBY by including the beneficiaries given by Ministry of Textiles. Scheme would

be implemented only in the States presently implementing RSBY.

The handloom weavers belonging to BPL categories in 19 states (including

Odisha) which were implementing RSBY during 2015-16, are already covered

under the scheme.8

7 Year End Review 2015: Ministry of Textiles: PIB Release dated 29.12.2015.

8 Lok Sabha Unstarrted Question No. 2283 dated 6.5.2016.

Assistance to Silk Weavers

The Government of India has provided the financial assistance to handloom

weavers including silk weavers in the country. 121 block level cluster have been

sanctioned under the National Handloom Development Programme (NHDP) and

the Comprehensive Handloom Cluster Development Scheme (CHCDS), releasing

an amount of Rs. 59.64 crore benefitting the weavers including silk weavers in the

current financial year.

The State-wise details of such financial assistance provided to silk weavers

during last three years are given in Annexure-II:-

Welfare Schemes for SC/ST Weavers

As per Third Handloom Census (2009-10), there are 27.83 lakh Handloom

Workers Households across the country. Of this, 2.73 lakh belong to SC category.

(State-wise details are given in Annexure-III). The Government has initiated

several measures for the welfare of the weavers / workers and artisans in the textile

sector, belonging to the SC category.

In the Sericulture Sector, the SC beneficiaries have been assisted towards

inputs supply for productivity improvement.

During the year 2015-16, an amount of Rs. 700 lakhs have been released to

12 States for implementation of Scheduled Castes Sub-Plan (SCSP). A total

of 2,144 SC beneficiaries have been covered towards implementation of the

SCSP during the year 2015-16.

To assist 700 SC families, a project viz. “Empowerment of SC families

through Sericulture under Scheduled Caste Sub Plan (SCSP)” has been

prepared with a central share of Rs.22.74 crores for the year 2016-179.

Imparting training to weavers

Through 28 Weavers Service Centers, Government of India is playing a vital

role in imparting training to the weavers to upgrade their skill and increase

productivity in the handloom sector. For the purpose, various short terms

stipendiary and Non-stipendiary training courses in the field of weaving, designing

and dyeing, printing are provided in the centers concerned to enable them to

produce a diversified range of products in keeping with the latest market trends.10

The details of funds spent for undertaking training programmes in handloom

sector during the last five years is given in Annexure-IV11

Government Initiatives regarding Export Promotion for the Textile Sector

Above all, the Indian Government has come up with a number of export

promotion policies for the textiles sector. It has also allowed 100 per cent FDI in

the Indian textiles sector under the automatic route. Some of initiatives taken by

the government to further promote the industry are as under:

I. The Government of India has started promotion of its „India Handloom’

initiative on social media like Facebook, Twitter and Instagram with a view

to connect with customers, especially youth, in order to promote high quality

handloom products.

9 Lok Sabha Unstarred Question No. 1982 dated 05.05.2016

10 Rajya Sabha Unstarred Question No. 1756 dated 11.03.2016

11 Rajya Sabha Unstarred Question No. 1597 dated 06.05.2016

II. The Ministry of Textiles launched Technology Mission on Technical Textiles

(TMTT) with two mini-missions for a period of five years (from 2010-11 to

2011-12 in the 11th five-year plan and 2012-13 to 2014-15 in 12th five-year

plan) with a total fund outlay of Rs 200 crore (US$ 30 million).

III. The Revised Restructured Technology Upgradation Fund Scheme (RRTUFS)

covers manufacturing of major machinery for technical textiles for 5 per cent

interest reimbursement.

IV. Under the Scheme for Integrated Textile Parks (SITP), the Government of

India provides assistance for creation of infrastructure in the parks to the

extent of 40 per cent with a limit up to Rs 40 crore (US$ 6 million).

V. Under the Market Development Assistance (MDA) Scheme, financial

assistance is provided for a range of export promotion activities

implemented by Textiles Export Promotion Councils.

VI. The Government has also proposed to extend 24/7 customs clearance facility

at 13 airports and 14 sea ports resulting in faster clearance of import and

export cargo.

VII. The Ministry of Textiles has approved a 'Scheme for promoting usage of

geotechnical textiles in North East Region (NER)' in order to capitalise on

the benefits of geotechnical textiles. The scheme has been approved with a

financial outlay of Rs 427 crore (US$ 64.1 million) for five years from

2014-15.

VIII. A Memorandum of Understanding (MoU) has been signed between India

and Kyrgyzstan seeking to strengthen bilateral cooperation in three fields -

Textiles and Clothing, Silk and Sericulture and also Fashion. 12

12 Textile Industry in India: India Brand Equity Foundation; Report.

Conclusion

Several new initiatives have been taken by the Government of India for

revival of handloom sector, giving particular stress on increasing the earning of

handloom weavers, which would in turn attract the younger generation to this

profession. 13

Bibliography

1. Explained: why India's Handloom industry needs hand-holding to get back

on its feet; Indian Express dated 3.6.2016.

2. India Brand Equity Foundation: Report on Textile Industry in India dated

March, 2016

3. Lok Sabha Unstarred Question No. 161 dated 5.5.2016

4. Lok Sabha Unstarred Question No. 1756 dated 11.3.2016

5. Lok Sabha Unstarred Question No. 1982 dated 05.05.2016

6. Lok Sabha Unstarred Question No. 2136 dated 10.3.2016

7. Lok Sabha Unstarred Question No. 2283 dated 6.5.2016

8. Lok Sabha Unstarred Question No. 2936 dated 13.5.2016

9. Ministry of Micro, Small and Medium Enterprises, MSME Schemes

10. Ministry of Textile, Annual Report 2015-16

11. Ministry of Textile, Note on Handloom Sector dated 30th December, 2015

12. PIB Release, Ministry of Textiles dated 28.11.2014 and 29.12.2015

13. Plancom paper on weavers Report dated October, 2014

14. Rajya Sabha Unstarred Question No. 1597 dated 6.05.2016

15. Rajya Sabha Unstarred Question No. 477 dated 26.02.2016

16. Stopping migration from villages : challenges for the handloom sector:

Yojana, May 2011

17. Welfare schemes of handloom weaves in India: An analysis, June, 2015

13 Op. cit. Year End Review 2015.

ANNEXURE-I

Funds Allocated, Released and Utilized during the years 2014-15, 2015-16 and 2016-17.

(Rs. In crores)

Sl.

No.

Name of Schemes 2014-15 2015-16 2016-17

Allocated Released Utilized Allocated Released Utilized Allocated Released(as on

29.4.2016)

1. National Handloom

Development Programme

292.00 227.39

227.39

216.73 213.92 213.92 257.00 3.05

2. Handloom Weavers

Comprehensive Welfare

Scheme

57.50 42.25 42.25 18.91 18.61 18.61 30.00 --

3. Mill Gate Price

Scheme/Yarn Supply

Scheme

130.00 127.81 127.81 321.96 321.96 321.96 260.00 43.00

4. Comprehensive

Handloom Cluster

Development Scheme-

Handloom Mega Cluster

18.00 14.45 14.45 37.31 37.26 37.26 65.00 --

Total 497.50 411.90 411.90 594.91 591.75 591.75 612.00 46.05

Source:- Rajya Sabha Unstarred Question No. 2396 dated 13.05.2016.

ANNEXURE-II

State-wise details of financial assistance provided to Silk Weavers

(Unit: Rs. in lakh) Sl. No. State 2012-13 2013-14 2014-15

1 Karnataka - - 137.76

2 Andhra Pradesh - 5.94 14.95

3 Tamil Nadu 12.50 77.10 -

4 Maharashtra 1.33 5.40 -

5 Madhya Pradesh 0.25 - -

6 Uttar Pradesh 65.50 - 103.30

7 Uttarkhand 12.97 - -

8 Jharkhnad 20.00 - -

9 Assam 94.27 8.10 6.00

10 Manipur 2.40 7.51 -

11 Meghalaya 6.40 4.37 -

12 Mizoram 6.48 - -

13 Nagaland 9.12 - 1.80

14 Tripura 7.92 2.40 -

Total 239.14 110.82 263.81

ANNEXURE-III

State-wise Status of Total Handloom Workers, Household , as per Census(2009-10) S. No. State Name Nos. of Total workers All

Religion (2009-10)

Nos. of Total SC

Households

1 Andhra Pradesh 176996 1701

2 Arunachal Pradesh 30343 984

3 Assam 1240817 108342

4 Bihar 25485 1020

5 Chhattisgarh 2664 569

6 Delhi 1875 967

7 Gujarat 3676 3202

8 Haryana 6455 1010

9 Himachal Pradesh 7006 1882

10 Jammu and Kashmir 17293 1475

11 Jharkhand 14178 126

12 Karanataka 37680 842

13 Kerala 11690 583

14 Madhya Pradesh 8691 2592

15 Maharashtra 1977 259

16 Manipur 178975 8240

17 Meghalya 11400 358

18 Mizoram 39499 71

19 Nagaland 60891 322

20 Orissa 40683 5512

21 Pondicherry 1754 3

22 Punjab 2377 1154

23 Rajasthan 22668 10827

24 Sikkim 568 38

25 Tamil Nadu 189069 4435

26 Tripura 120652 1229

27 Uttar Pradesh 110542 10982

28 Uttarakhand 10606 1728

29 West Bengal 406761 102603

Total 2,783,271 273,056

Source:- Lok Sabha Unstarred Question No. 1982 dated 05.05.2016.

Annexure-IV

Details of funds Spent for undertaking Training Programmes in Handloom Sector

Year Beneficiaries covered

Amount (Rs. in Lakhs)

2011-12 7200 441.274

2012-13 19125 1441.997

2013-14 3540 575.93

2014-15 1040 -

2015-16 2500 220.005

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