handloom industry t - texmin.nic.in

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ANNUAL REPORT 2002-2003

CHAPTER V

HANDLOOM INDUSTRY

The Handloom Textiles constitute atimeless facet of the rich culturalheritage of India. As an economic

activity, the handloom sector occupies aplace next only to agriculture in providinglivelihood to the people. The element of artand craft present in Indian handloomsmakes it a potential sector for the uppersegments of the market, both domestic aswell as global. However, the sector isbeset with manifold problems such asobsolete technologies, unorganizedproduction system, low productivity,inadequate working capital, conventionalproduct range, weak marketing link, overallstagnation of production and sales and,above all, the competition from the millsector. As a result of effectiveGovernment intervention through financialassistance and implementation of variousdevelopmental and welfare schemes, thehandloom sector has been able to tideover some of the said disadvantages. As aresult of these measures, the production ofhandloom fabrics has gone up to 7585million sq. meters during 2001-2002 from alevel of 500 million sq. meters in the earlyfifties. This sector accounts for 18.4% ofthe total cloth produced in the country(excluding clothes made of wool, silk andhand spun yarn).

Handloom forms a precious part of thegenerational legacy and exemplifies therichness and diversity of our country and

the artistry of the weavers. Tradition ofweaving by hand is a part of the country’scultural ethos. Handloom is unparalleled inits flexibility and versatility, permittingexperimentation and encouraginginnovation. Innovative weavers with theirskillful blending of myths, faiths, symbolsand imagery provide the fabric anappealing dynamism. The strength ofHandloom lies in introducing innovativedesign, which cannot be replicated by thePowerloom Sector.

The Office of the DevelopmentCommissioner for Handlooms has beenimplementing since its inception in the year1976, various schemes for the promotionand development of the handloom sectorand providing assistance to the handloomweavers in a variety of ways. Some of themajor programmes formulated by thisOffice relate to:

a) Employment Generation;

b) Modernization and Upgradation ofTechnology;

c) Input Support;

d) Marketing Support;

e) Publicity;

f) Infrastructural Support;

g) Welfare Measures;

h) Composite Growth OrientedPackage;

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MINISTRY OF TEXTILE

i) Development of Exportable Productsand their Marketing; and

j) Research & Development.

The various schemes implemented by theDevelopment Commissioner forHandlooms are weaver oriented andaddress the needs of disadvantaged socialstrata and occupational groups, which areat the bottom of the economic hierarchy.Concerted efforts are being made throughthe Schemes and programmes toenhance production, productivity andefficiency of the handloom sector andenhance the income and socio-economicstatus of the weavers by upgrading theirskills and providing infrastructural supportand essential inputs.

ONGOING SCHEMES ANDPROGRAMMES

Deen Dayal Hathkargha ProtsahanYojana:

Deen Dayal Hathkargha Protsahan Yojana(DDHPY) has been launched to provideassistance to the handloom weavers in anintegrated and comprehensive manner.The scheme has been in operation w.e.f.1.4.2000 and will continue till 31.3.2007.

This Centrally sponsored plan schemeentails nearly Rs.310 crore of Centralassistance for the 10th Plan period. Thescheme aims at taking care of a widegamut of activities such as basic inputs,like looms and accessories, workingcapital loans, product development,infrastructure support, institutional support,training to weavers, supply of equipmentsand marketing support both at micro andmacro levels to the handloom

organisations. The handloomorganisations can also get assistanceunder other components of the DDHPYlike design input, publicity, marketingincentive and transport subsidy for NorthEastern Region Sikkim and J&K.

Prior to the introduction of the DDHPY,most of the schemes were aimed atbenefiting the weavers under thecooperative fold only. The DDHPYenvisages covering weavers both undercooperative and non-cooperative fold. Thenational and State level organisations,primary societies, self-help groups etc. areeligible to get benefit of the scheme. Thereis a focused emphasis on purchase andmodification of looms, skill upgradation,design support to facilitate productdiversification, enhance productivity andmarketability of handloom products. Thehandloom agencies could get assistancefor installing CAD/CAM system andavailing of the services of designers toimprove designs and fabric as perrequirement of both the domestic andinternational market.

A special component to provide transportsubsidy for the transportation of finishedgoods from North Eastern States,including Sikkim and J&K has beenincorporated. It has been noticed that anumber of organisations at State levelneed to be strengthened and therefore, acomponent has been provided forrestructuring such organisations for bettermarketing efforts through bankableprojects to be cleared by the Union Ministryof Textiles.

In order to improve quality of finished

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products, financial assistance is availableto the handloom agencies for establishinginfrastructure facilities, like setting up of aprocessing house having bleaching,dyeing, finishing and other facilities,effluent treatment plant and commonfacility centers.

The sharing of grant portion of thisCentrally Sponsored Scheme, between theCentre and the States is in the ratio of50:50 except in the case of North EasternStates, Sikkim & J&K where the fundingpattern is in the ratio of 90:10. Agencieswhere 100% members are from SC/ST/Minorities/ Women, the funding pattern isin the ratio of 75:25. The assistance formarketing incentives under the scheme,however, is in the ratio of 50:50 betweenthe Centre and the State Government inrespect of all the States.

During the year 2000-01 a sum ofRs.1695.84 lakh was released as grantunder the scheme to 12 States;(Rs.763.79 lakh towards basic inputscovering 197 projects and Rs.932.05 lakhas marketing incentive). From the year2001-02, the committed liabilities towardsthe projects sanctioned under the erstwhileProject Package Scheme, IntegratedHandloom Village Development Scheme,Margin Money for Destitute Weaversscheme and Handloom DevelopmentCenter/Quality Dyeing Unit scheme arealso met out of the budget provision underthe DDHPY head.

In the year 2001-2002, a sum ofRs.6359.33 lakh was released as grantfrom the DDHPY head consisting ofrelease of Rs.5725.05 lakh under the basic

input and marketing incentive componentsof the DDHPY, Rs.479.98 lakh under theProject Package Scheme (PPS), Rs.89.57lakh under Integrated Handloom VillageDevelopment Scheme (IHVD), Rs.1.78lakh under Handloom DevelopmentCenter/ Quality Dyeing Unit (HDC/QDU)scheme, Rs.1.00 lakh under the MarginMoney for Destitute Weavers (MMDW) andRs.61.95 lakh for Census.

For the year 2002-03, there is a budgetprovision of Rs.8070.00 lakh fordisbursement of grant under the schemescovered by the DDHPY head. Out of thisbudget provision, a sum of Rs.2784.36lakh has been released upto 17th January,2003 consisting of release of Rs.2694.22lakh under the basic input and marketingincentive components of the DDHPY,Rs.68.64 lakh under PPS and Rs.21.50lakh under IHVD.

National Centre For Textile Design(NCTD) :

National Centre for Textile Design hasbeen set up to promote the traditional &contemporary designs so as to enableweavers to be responsive to the rapidlychanging market demand, therebyproviding adequate growth opportunity tothe Textile Industry and in particular to theHandloom Sector.

NCTD has been set up in HandloomPavilion, Pragati Maidan, New Delhi havingon-line and off-line activities. On-lineactivities are through its websitewww.designdiary.com. The site has beendesigned and developed with differentsegments i.e. International and Indiantrends and color forecast, panel of

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MINISTRY OF TEXTILE

designers, design pool, linkages,handicrafted textiles of India, yellow pages,archives etc. Several agencies andindividuals have been registered asmembers of the website of NCTD.

Off-line activities include holding of SpecialExhibitions on a sustained basis forproduct development on handlooms. Anexhibition “Tantavi” was organized in 4metropolitan cities as well as in Hyderabadand Bangalore during the periodDecember 2001 – March 2002. Theexhibition displayed 212 yardagesdeveloped on a theme “Structures” byWeavers’ Service Centres using naturalfibres in their own natural colors in differentpermutation and combinations of weaves,twist of yarn, ends per inch & picks perinch, count of yarn etc. Along with theseyardages, finished products i.e. apparelsand home furnishings developed fromthese yardages by the Handicrafts andHandlooms Export Corporation of India(HHEC) Ltd., and the Central CottageIndustries Corporations Ltd. (CCIC) werealso displayed. These fabrics were alsodisplayed in Sydney, Jakarta and Milanrecently. The exhibitions receivedconsiderable response from domestic andforeign buyers. In view of the success ofthe exhibition “Tantavi”, it was decided toorganize the exhibition at other textilescentres such as, Varanasi, Bhagalpur,Karur, Bagalkot, Surat and Panipat.

Further, NCTD plans to hold the nextseries of exhibitions “Tantavi” on a theme“Patterned Fabrics” for which, samplingwork has already commenced. Suchfabrics will explore novel, abstract andgeometrical designs woven with natural

fibres in their own natural colours duringthe year 2003-04.

Input Support:

Handloom sector is largely dependent onthe organized mill sector for supply of itsprincipal raw-material, namely Yarn. Thissector uses the bulk of its yarn in the formof hanks. The Central Government hasbeen making efforts to ensure regularsupply of yarn to the handloom sector byenforcing the Order (Hank Yarn PackingNotification) making it obligatory on thespinning mills to pack a prescribedpercentage of the yarn produced by themin hank form.

Scheme for Supply of Yarn at Mill GatePrice :

This scheme was introduced during 1992– 93 with the objective of providing all typeof yarn to the handloom weavers’organizations at the price at which it isavailable at Mill Gate.

National Handloom DevelopmentCorporation (NHDC), a Government ofIndia undertaking, is the only agencyauthorized to implement the scheme. Thescheme benefits the followingorganizations and their member weavers:-

1. All Handloom organizations ofNational/State/Regional level.

2. Handloom Development Centres.

3. Handloom producers/ exporters/manufacturers registered withHEPC/ any other Export PromotionCouncil under the Union Ministry ofTextiles or the State Directors ofIndustries.

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reimbursed subject to a maximum ofRs.1500/- per day per van by the NHDC.

The expenditure for transportation of yarnand for operation of yarn depot and alsothe overhead expenditure involved by theNHDC on this yarn transaction is beingreimbursed by the Government at a flatrate as detailed below:-

Yarn other than 3.5% of valueSilk and Jute

Silk Yarn 2% of value

Jute Yarn 10% of value

The expenditure for operating the mobilevan is being made by NHDC first and thenreimbursed to NHDC by Government ofIndia in addition to the flat rate given above.

A new provision has been made in theguidelines stipulating that at least 10% ofthe total yarn supplied shall be made toNorth-Eastern States in conformity with the

4. All approved export houses/tradinghouses/star trading houses forproduction of handloom items.

5. Members of recognized/approvedhandloom associations.

6. NGOs fulfilling CAPART norms.

7. Any other agency with the approvalof the Development Commissioner(Handlooms).

All types of yarn required for production ofhandloom items are covered under thescheme.

The Government of India is meeting theentire expenditure under the scheme. Theyarn is being arranged by NHDC from themills as per the requirement of useragency (as mentioned above) and is beingtransported to the godown of the agency.

The reimbursement rates for the useragencies are as under:

In addition to the above, the NHDC has topay depot operation charges @1% of thevalue of yarn, wherever the yarn issupplied to weavers through yarn depots.Further there is a provision for supply ofyarn to the weavers in the remote areasthrough mobile van during 20 days in amonth. The actual expenditure involved foroperating the mobile van is to be

Types of Yarn In plain areas Hill/Remote areas North-East area

Other than Silk/Jute Yarn 1.00% 1.75% 3.00%

Silk Yarn 1.00% 1.25% 1.50%

Jute/Jute Blended Yarn 7.00% 8.00% 8.50%

Note : Rates are percentage cost of material.

National Policy for development of NorthEastern States.

During the last 5 years, a sum ofRs.2834.78 lakh has been released toNHDC under this scheme. The releasemade during the current year up to 17th

January, 2002 has been to the tune ofRs.495.92 lakh.

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MINISTRY OF TEXTILE

The year wise details are as given below:

1997 – 1998 300.001998 – 1999 368.211999 – 2000 414.502000 – 2001 1090.132001 – 2002 661.942002 – 2003 495.92(up to 17.01.2003)

Under the Mill Gate Price Scheme suppliesof yarn have increased from 49.42 lakh kg.in 1993 – 94 to 195.58 kg. during 2001-2002. During the year 2002-2003, NHDChas supplied 113.35 lakh kg. yarn up toDecember 2002.

Production And EmploymentGeneration:

During the year 2001-02, a total of 7585million sq. metres of Handloom cloth isestimated to have been produced.

During the year 2002-03 up to June 2002, itis estimated that Handloom Sector hadproduced 2958.46 million sq.metres(provisional) of cloth. TheHandloom Sector provides employment toabout 124 lakh persons.

Training To Handloom Personnel :

To impart Training in modern managementand production techniques, dyeingpractices, Marketing of handloom productsetc., the Office of the DevelopmentCommissioner for handlooms has beenoperating training programmes for humanresource development in the Cooperativesector for the benefit of personnel engaged

in Handloom sector at different levelsthrough Institutions like National Council forCooperative Training, National CooperativeUnion of India and National HandloomDevelopment Corporation. The mainobjective of such programmes is to createconsciousness on the latest techniques indyeing/printing and processing ofHandloom fabrics and awareness amongthe members and the functionaries of theHandloom cooperatives about their rightsand duties and to inculcate in them thespirit of cooperation and enhance theirparticipation in the day to day activities ofthe Cooperatives concerned.

Weavers Service Centre (WSC) :

Presently there are 24 Weavers’ ServiceCentres are functioning under the Office ofthe Development Commissioner forHandlooms which play a vital role inconducting research and development andin imparting training to weavers to upgradetheir skill and increase productivity in thehandloom sector. They have also beeninstrumental in evolving innumerable newdesigns and reviving traditional designs.The Weavers’ Service Centres primarilyrender extension services, which involvetransfer of design inputs, skills andtechnology evolved in the Weavers’Service Centres to the weavers at theircottages.

Indian Institutes of HandloomTechnology (IIHT) :

The Indian Institute of HandloomTechnology mainly function to providequalified and trained manpower to the

YEAR AMOUNT(Rs. in lakh)

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Handloom Sector and to undertakeexperimental and research programmeson all aspects of the handloom industry.There are four IIHTs at Varanasi, Salem,Guwahati, and Jodhpur in the CentralSector and two IIHTs at Venkatagri (AP) &Gadag (Karnataka) in the State Sector.

Decentralised Training of Weavers :

Decentralised Training Programme isaimed at training of weavers, designersdyers and printers connected with thehandloom industry, on improvedtechnology so that they are able toincrease production, improve theirearnings and get a better market for theirproducts. The Decentralised TrainingProgramme provides training to weavers inWeaving Technology, Design Developmentand Dyeing Techniques.

Year-wise performance of the schemeduring the 9th Plan period is given below:

S. Year No. of AmountNo. Weavers sanctioned

trained (Rs. inLakhs)

1. 1997-98 1814 89.10

2. 1998-99 3172 156.19

3. 1999-2000 3898 154.74

4. 2000-2001 2900 105.66

5. 2001-2002 3150 210.00Total 14,934 715.69

Design Exhibition-cum-DyeingWorkshop :

The Weavers Service Centres have beenorganizing Dyeing - cum - DesignWorkshops since 1995-96 with a view to

creating awareness in the weavers’concentrated areas about the servicesavailable in Weavers’ Service Centres andto impart training in Dyeing Techniques andDesign Development. Design Exhibitionsand Dyeing workshops are organized inthe handloom clusters by WeaversService Centres to promote and propogatemodern dyeing techniques besides makingavailable designs at the doorsteps of theweavers.

Year-wise number of exhibitions conductedand expenditure sanctioned during the 9th

Plan period is as under:-

Year No. of AmountDyeing & Sanctioned

Design Exhibition (in Lakhs)Conducted

1997-98 45 6.60

1998-99 104 17.00

1999-2000 89 9.40

2000-2001 240 24.00

2001-2002 240 24.00

Total 718 81.00

Design Development and TrainingProgramme :

In order to have a holistic and integratedapproach to the issues of designdevelopment and skill upgradation in thehandloom sector, a comprehensive DesignDevelopment and Training Programmehas been formulated during 10th Plan bymerging various schemes including“Decentralised Training of WeaversScheme” and Design Exhibition cumDyeing workshop of the 9th Plan as

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MINISTRY OF TEXTILE

component of the Design Developmentand Training Programme.

During the year 2002-2003, Rs.4,19,03,434/- was sanctioned fororganizing 240 training programmes fortraining of 6000 weavers underDecentralised Training of Weavers andRs.24,00,000/- was released forconducting 240 Dyeing workshop cumDesign exhibitions by various WSCs.

Workshed-Cum-Housing Scheme ForHandloom Weavers:

The Government of India introduced aCentrally Sponsored Scheme called“Workshed-cum-Housing Scheme” forhandloom weavers from the beginning ofVII Five-Year Plan i.e. 1985-86. Thescheme is being implemented primarily forproviding suitable work place to theweavers thereby achieving betterproductivity. The scheme is beingimplemented by the respective StateHandloom Development Corporations,primary Societies or any other specializedagency set up by the concerned StateGovernment for execution of suchprojects.

During the current year of the X Plan, thefunding pattern of the Central assistanceand the weavers’ contribution as also theloan tie up arrangement is given as under :

The funding pattern during the current yearremains the same as that existed duringthe IX Five year Plan. During the year2001-02 a sum of Rs.980.54 lakh wasreleased for construction of 3650 units ofW o r k s h e d / W o r k s h e d - c u m - H o u s e sincluding releases made in respect of pastcommitment under the Scheme.

For the current financial year 2002-03, abudget provision of Rs.1100.00 lakh hasbeen provided, out of which Rs.400.00 lakhhas been earmarked for North EasternStates. As on 25.02.2003 a total sum ofRs.101.77 lakh has been released towardssecond instalment in past cases to variousState Governments, out of which anamount of Rs.23.50 lakh has beenreleased to North Eastern States.

Weavers’ Welfare Scheme:

The Hon’ble Prime Minister, in hisIndependence Day address to the Nation,on 15th August, 2002 announced theimplementation of a special contributoryinsurance scheme for One Million weaversand artisans, combining the ‘JanshreeBima Yojana’ with Group insuranceScheme. Accordingly, it has beenproposed to implement the ‘Bunkar BimaYojana’, which is a combination of the‘Janshree Bima Yojana’ and Add-on GroupInsurance Scheme during the X Plan

Name of the Unit Cost Maximum Loan from Weavers’Component in Rs. Subsidy HUDCO/FIs Contribution

Rural Workshed 9000 7000 - 2000

Urban Workshed 14000 10000 - 4000

Rural Workshed-cum-Houses 35000 18000 14000 3000

Urban Workshed-cum-Houses 45000 20000 20000 5000

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period to cover Nine Lakh weavers in thehandloom sector.

Keeping in view the recommendation ofthe Working Group on Textiles and JuteIndustry for the X Five Year Plan and alsoin accordance with the announcementmade by the Prime Minister for launchingof the aforementioned special insurancescheme, it is proposed to implement acomprehensive Scheme called ‘Weavers’Welfare Scheme’ with Health Package,Thrift Fund, Bunkar Bima Yojana andPackage insurance for handloom weaversas its components with revised fundingpattern. However for the present thewelfare scheme are been continued on theexisting funding pattern till the approval forthe weavers welfare scheme is obtained

A provision of Rs.700.00 lakh has beenmade during 2002-03 for “Weavers’Welfare Scheme”, out of which Rs.200.00lakh has been earmarked for NorthEastern States. As on 25.02.2003, a sumof Rs.9.17 lakh has been released towardsbalance dues of previous sanctions.

The Welfare Schemes, which are inimplementation are as under:

(i) Health Package Scheme forHandloom weavers :

The Health Package Scheme wasintroduced in March 1993. Under theScheme, the weavers were providedfinancial assistance for the treatment ofdiseases like asthma, tuberculosis andinflammation of respiratory system, cost oftesting of eyes and spectacles, supply ofdrinking water, maternity benefits towomen weavers, payment of additional

compensation for permanent measures offamily planning and infrastructure for theprimary health care.

During the financial year 2001-02, a sum ofRs.37.66 lakh was released to StateGovernments under this Scheme tovarious State Governments for covering1630 weavers.

(ii) Thrift Fund Scheme for Handloomweavers :

The Thrift Fund Scheme for HandloomWeavers was introduced in the VIII FiveYear Plan as one of the special welfaremeasures from the Government of India.The Scheme envisaged creation of a fundin the nature of a provident fund. Theweavers belonging to corporate sectorhave also been covered under theScheme. As per the present fundingpattern, 8% of the wages were to becontributed by the weavers, and 4% eachby the Central and State Governments.

For the year 2001-02 a sum of Rs.320.15lakh was released to the StateGovernments to cover 1,07,643 weaversunder the scheme.

(iii) Group Insurance Scheme forHandloom weavers :

The Government of India introduced aGroup Insurance Scheme for HandloomWeavers throughout the country from theyear 1992-93 in order to help weavers tomeet their socio-economic obligationtowards their family and to act as asupport system against the uncertainty oftheir working capacity in old age. Underthe Scheme, a weaver was provided aninsurance coverage of Rs.10,000/- for an

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MINISTRY OF TEXTILE

annual premium of Rs.120/- per annumwhich was shared equally by thebeneficiary, the Central Government andthe State Government.

During the year 2001-02 a sum ofRs.42.32 lakh was released under thisscheme to the State Governments forcovering 1,15,062 weavers.

(iv) New Insurance Scheme forhandloom weavers:

In order to provide relief to handloomweavers in the 50th year of Independence,the Government of India introduced theNew Insurance Scheme for weaversthrough United India Insurance Companyfor the Ninth Five-Year Plan. The NewInsurance Scheme provided coverageagainst loss or damage to dwelling unitsdue to flood, fire, earthquake etc. damageto contents of the dwelling units like looms,raw material etc.; medical coverage andPersonal Accidental Insurance againstaccidental death at a premium of Rs.120/-per annum, with a contribution of Rs.20/-by the weaver, Rs.40/- by the StateGovernment and Rs.60/- by theGovernment of India.

During the year 2001-2002, an amount ofRs.10.00 lakh was released to the UnitedIndia Insurance Company Ltd. for covering16,666 weavers.

HANDLOOM EXPORTS

Development Of Exportable ProductsAnd Their Marketing Scheme:

The importance of the handloom sector inthe national economy is well recognizedparticularly from the point of view of its

contribution to textile exports. On accountof having the advantage of flexibility of smallproduction run, uniqueness, constant scopefor innovation, eco friendliness, adaptabilityand, above all, the element of rich artistry,this sector has the potential to contributetowards export earnings in a big way.Export of handloom has, therefore, beenidentified as a “Thrust Area” for the overalldevelopment of the sector. TheGovernment is exploring the possibility ofmaking optimal use of the resources toenhance production capabilities ofexportable handloom products.

In order to give an impetus to the export ofhandloom fabrics, made-ups and otherhandloom items from the country, ascheme for Development of ExportableProducts and their Marketing has beenunder implementation since 1996-97.Under the scheme, assistance is madeavailable for developing exportableproducts and building up productioncapability for export marketing.

National and State level HandloomCorporations, Apex Cooperative societiesand Primary Handloom WeaversCooperative societies are eligible forassistance under this scheme. Privatehandloom exporters could be assistedthrough HEPC.

The project cost under the Scheme isshared by the Centre and the StateGovernment/beneficiary agency. Theagencies sponsored by CentralGovernment like HEPC, HHEC, NHDC,ACASH etc. are entitled to 100%assistance from the Government of Indiaunder the scheme.

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HANDLOOM EXPORT PROMOTIONCOUNCIL

The Handloom Export Promotion Council,registered under the Companies Act, 1956,was constituted in 1965 by theGovernment of India as the nodal agencyfor export promotion efforts related to thecotton handloom textiles.

The Handloom Export PromotionCouncil, provides to its members a widerange of services which, inter-alia,include: -

◆ Dissemination of trade information &intelligence.

◆ Publicity abroad for Indian handloomproducts.

◆ Organization of business missions/buyer seller meets and participationin International trade events.

◆ Consultancy and guidance servicesfor handloom exporters.

◆ Liaison with the Government of Indiaon all procedural and policy mattersrelevant to the handloom exporttrade.

◆ Dealing with trade complaintspertaining to handloom exports.

◆ Liaison with the commercialagencies abroad for augmentation ofhandloom exports.

◆ Facilitating product diversificationand adaptation to meet modernmarket requirements.

◆ Providing impetus to modernisationof handlooms for the export market.

◆ Provision of design inputs to promoteexport of handloom products.

The Indian cotton handloom fabrics andmade-ups occupy a place of eminence inthe sought-after markets of USA, UK,Germany, France, Sweden, Belgium,Netherlands, Japan and Australia. Themain items exported belong to thesegment of home furnishing whichconstitutes about 90% of our totalhandloom exports.

With the concerted efforts of HandloomExport Promotion Council andimplementation of DEPM Scheme, theexport of cotton handloom fabrics andmade-ups has been as under :-

Year Rupees in MillionCrore US $

1997-98 1840.05 492.41

1998-99 1918.34 455.98

1999-00 1980.04 456.94

2000-01 2127.44 465.68

2001-02 2064.94 432.97

2002-03

(April to 1308.15 268.18Sept., 2002)

Since the inception of the DEPM schemein October, 1996 till 31st March 2002, 96DEPM projects covering 19,683 weavers,have been sanctioned. Apart from this,financial assistance for participation in 39International trade events has beenprovided to Handloom Export PromotionCouncil (HEPC), Association ofCorporations and Apex Societies ofHandlooms (ACASH) and Handicrafts andHandlooms Exports Corporation of India

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MINISTRY OF TEXTILE

Ltd.,(HHEC). A sum of Rs. 10.75 crorewas released for 96 DEPM projects andRs. 11.04 crore for participation in 37International trade events.

The DEPM Scheme has been continuedduring the 10th Five Year Plan, in a modifiedform and under a modified nomenclature‘Handloom Export Scheme’. A provision ofRs. 31.00 crore has been made forimplementation of the ‘Handloom ExportScheme’ during the 10th Five Year Plan, ofwhich, a sum of Rs. 5.00 crore has beenprovided for the Annual Plan 2002-03 formeeting expenses in respect of freshprojects and for meeting committedliabilities inrespect of thep r o j e c t ssanctioned inthe past.During thec u r r e n tfinancial year,a provision ofRs. 2.00 crorehas also beenmade for theStates fallingunder North Eastern Region. As on 25th

February 2003, a sum of Rs. 96.35 lakh hasbeen released towards committed liabilitiesand for participation in one internationaltrade event.

Marketing Promotion Programme:

To provide marketing support to handloomagencies and the individual weavers, theOffice of the Development Commissionerfor Handlooms assists the StateGovernments in organizing National

Handloom Expos/Special Expos, DistrictLevel Events, Crafts Melas etc. in differentparts of the country. For this purpose,financial support is provided to theimplementing agencies recommended bythe State Governments towardsinfrastructure, Publicity etc. Theseactivities are supportive to the handloomagencies, weavers and also theconsumers. During 2001-02, 09 NationalHandloom Expos and 09 Special Expos,92 District Level Events, 04 Craft Melasand One Master Creation Programmewere organised in different parts of thecountry and 06 Urban Haats were

approved. Anamount ofRs.682.45 Lakhwas spent onthose events andactivities in 2001-02.

In the 10th Plan, aScheme called“ M a r k e t i n gP r o m o t i o nProgramme” isbeing formulated

as an integrated scheme by mergingseveral earlier schemes, on therecommendation of the PlanningCommission’s Working Group on Textilesand Jute Industry for the 10th Plan. TheMarketing Promotion Programme wouldprovide for organisation of Exhibitions andFairs, Setting up of Urban Haats, Settingup of Marketing Complexes, Publicity andAwareness. During the year 2002-03, abudgetary provision of Rs.7.00crore(General Budget) and Rs. 2.00 crore

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for NER States has been made forpublicising the developmental activities ofthe handloom sector and to facilitatemarketing of handloom products throughfairs and exhibitions under MarketingPromotion Programme.

In the current year 2002-03, 11 NationalHandloom Expos and 10 Special Exposhave been approved, 145 District LevelEvents in different parts of the countryhave also been approved in 2002-03.

The Office of the DevelopmentCommissioner for Handlooms is assistingand also participating in the Crafts Melas atShilpagram (Udaipur), Surajkund(Haryana), Shilparamam (Hyderabad ), TajMahotsav (Agra ) Paaramparya Arts &Craft Festival (Kollam), Patiala Crafts Melaand Master Creations Programme at DilliHaat, New Delhi by extending financialassistance and by sponsoring weavers fordemonstration of their crafts together withsale of handloom products. Upto 21st

February, 2003 a sum of Rs.783 lakh has

been sanctioned to the variousimplementing agencies for organisingDistrict Level Events, National HandloomExpos/Special Expos and Crafts Melas.

Handlooms (Reservation of Articles forProduction) Act, 1985 :

The Handlooms (Reservation of Articlesfor Production) Act, 1985 aims atprotecting millions of handloom weaversfrom the encroachment made on theirlivelihood by the powerloom and theorganised mill sectors. Eleven categoriesof textile articles are reserved under theprovisions of the Act at present videReservation Order No. S.O. 557(E), dated26.7.1996, as amended vide Order No.S.O. 408(E), dated 2.6.1999 and S.O.405(E) dated 25.4.2000. The physical andfinancial progress on implementation of theHandlooms (Reservation of Articles forProduction) Act, 1985 by variousimplementing agencies from 1999-2000 to2001-02 along with the targets for 2002-03and achievements upto Jan 03 are as

Sl. Physical 1999-00 2000-01 2001-02 2002-03 (As onNo. Jan 03)

1 Target of Inspections 1,30,532 1,30,532 1,40,700 1,50,000

2 No. of powerlooms inspected 1,76,523 1,43,969 1,52,925 1,28,175

3 No. of FIRs lodged 25 27 30 21

4 No. of Convictions 22 30 26 19

5 Cases in pipeline - - - 41

Financial 1999-00 2000-01 2001-02 2002-03

1 Budget grant (Rs. in lakh) 80.00 96.00 90.00 95.00

2 Expenditure (Rs. in lakh) 78.39 56.06 57.44 51,20,588

* Upto 31.01.2003

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given in the following table:

The Central Government has also beenproviding assistance to the States/UTsunder the scheme “Implementation ofHandlooms (Reservation of Articles forProduction) Act, 1985” to ensure effectiveimplementation of the Act, at State level.The details of State wise assistanceextended by the Central Governmentduring the years 1999-2000 to 2001-02have been as below:

The central funding to States/UTs hasbeen cent per cent during the Ninth FiveYear Plan. During the 10th Five Year Plan,first year of the 100% Assistance has beenapproved under. During the 10th Five Year

Plan period, the outlay earmarked isRs.6.00 crore, and for the current financialyear 2002-03, the outlay is Rs.1.20 crore.

Research And Development :

The Handloom Industry is the most ancientCottage Industry of India. Its preservationfor posterity will ensure continuation of ourcultural heritage.Research & Developmentis an essential ingredient for any Industryto keep pace with the fast changingdevelopments on account of the increasingglobal interest in Indian Handlooms.Hence, undertaking Research &Development in the handloom sector isvery essential in order to have a regularsystem of feed back on economic, social,aesthetic, technical and promotional

Sl. Name of the State Amount released (Rs. in lakh)No. 1999- 2000- 2001- 2002-

2000 2001 2002 2003

1. Andhra Pradesh - - - 17.94

2. Orissa - - - -

3. West Bengal 5.78 5.90 - -

4. Uttar Pradesh - - - -

5. Karnataka - - - -

6. Gujarat 16.37 14.33 - 18.66

7. Rajasthan 6.07 5.27 - 8.73

8. Kerala - 1.88 17.29 -

9. Madhya Pradesh 6.93 9.78 9.29 6.88

10. Haryana 6.86 4.15 5.52 6.05

11. Tamil Nadu 27.99 63.77 67.90 61.74

12. Bihar - 4.92 - -

TOTAL 70.00 110.00 100.00 120.00

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aspects of handloom sector with the helpof expertise of reputed research institutesand other professional/voluntaryo r g a n i z a t i o n s , N o n - G o v e r n m e n t a lOrganizations registered under any of thestatutory Acts, Universities, IIHTs/WSCshaving basic infrastructural facilities toeffectively implement the scheme throughstudies, need based survey, research anddevelopment etc.

During the year 2001-02, a sum ofRs.39.78 lakh was released to differentorganizations under this Scheme.

In the 10th Five Year Plan, the Researchand Development programme is one of thecomponents under the ComprehensivePlan scheme namely, “DesignDevelopment and Training Programme”where an amount of Rs.75.00 lakh hasbeen kept for the R&D projects duringcurrent financial year 2002-03 againstwhich an amount of Rs. 18.80 lakh hasbeen released to the concernedorganisations upto 31st January, 2003.

Marketing through ACASH :

The Association of Corporations and ApexSocieties of Handlooms (ACASH), NewDelhi was registered in 1984 under theSocieties Registration Act to coordinateand promote marketing in the HandloomSector. It serves as a nodal agency forsupply of handloom goods to bepurchased by Central GovernmentDepartments/Agencies/Public SectorUndertakings etc., under Single TenderSystem (STS). During the year 2001-02,ACASH received supply orders worthRs.19.66 crore and executed orders worthRs.25.06 crore. During the current yeari.e. 2002-03 (upto 15th January, 2003),

ACASH has received orders worthRs.15.68 crore and executed orders worthRs. 8.72 crore.

INTERNATIONAL FAIRS :

ACASH coordinated participation in thefollowing:

(i) Buyer-Seller Meet, Tokyo from 15-17May, 2001 organised by India TradePromotion Organisation (ITPO). Fiveagencies participated in it.

(ii) Textile D’Interiour Premiere (TIP’9)Brussels from 8-11 September,2001. Four agencies participated init.

(iii) AGS Fair at Jakarta from 14-16March, 2002. Three agenciesparticipated in it.

(iv) Heimtextil’2002 at Frankfurt,Germany from 9-12 January, 2002.Twenty two agencies participated init.

(v) Heimtextil India at Pragati Maidan inNew Delhi from 4-7 October 2002.Three Agencies participated in thefair.

Domestic Exhibitions:

ACASH organized a National HandloomExpo namely ‘India Weaves 2001’ at DilliHaat from 17-31 October, 2001. 143handloom agencies from various parts ofthe country participated. It had alsoparticipated in the India International TradeFair organized by the India TradePromotion Organisation at Pragati Maidan,New Delhi during November 14-27, 2001.35 agencies participated.

ACASH organized a National Handloom

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Expo namely ‘India Weaves 2002’ at DilliHaat from 17-31 October, 2002. 121handloom agencies from various parts ofthe country participated. It had alsoparticipated in the India International TradeFair organized by the India TradePromotion Organisation at Pragati Maidan,New Delhi during November 14-27, 2002.35 agencies participated.

All India Handloom Fabrics MarketingCooperative Society Ltd. (AIHFMCS) :

The All India handloom Fabrics MarketingCooperative Society Ltd., Delhi is aNational level Cooperative Societypresently governed under the Multi-StateCooperative Societies Act, 1984. Themain objective of the Society is to provideemployment to the Handloom weaversthrough its marketing services byconducting sales both in domestic andexport market. To achieve theseobjectives, the Society has set up 25 RetailOutlets, which are popularly known as“HANDLOOM HOUSE”. The Society hasits Export Houses at NOIDA, Salem, Karur,Chennai and Kolkata. Also, the Societyhas showrooms in Singapore andMauritius for giving an impetus tomarketing of Indian handloom products inthe foreign markets.

The affairs of the Society are administeredby an elected Board of Directorsconsisting of the Representatives of StateApex/Regional/Primary HandloomWeavers Cooperative Societies.

The Membership of the Society consists ofState level/Regional level Apex handloomWeavers’ Cooperative Societies (‘A’Class), Primary Level Handloom Weavers’

Cooperative Societies (‘B’ class) andPublic Trusts, Government andGovernment owned/controlledorganizations engaged in production andsale of handloom products etc. (‘C’ class).The total number of shares were 1,54,920in 2001-02 as against 1,53,631 in 2000-01.The paid up share capital of the Societyhas increased to Rs.825.92 lakh in 2001-02 from Rs.818.63 lakh of the previousyear. The Fabric Society’s purchasesduring 2001-02 amounted to Rs.3606.30lakh against Rs.4397.05 lakh in 2000-01.The society’s total export during 2001-02was of Rs.2236.75 lakh as againstRs.2693.16 lakh in the previous year.During 2001-02 the Society has been ableto achieve a net profit of Rs.40.23 lakhagainst Rs.44.54 lakh during the previousyear. The Society was also able toachieve a sales turnover of Rs.51.29 croreduring 2001-02 as against the turnover ofRs.57.65 crore during the previous year.

During the current year (i.e. 2002-03), theSociety is expected to achieve a minimumof 20% growth rate in its turnover over theprevious year’s achievement. As on 31st

December, 2002, the society has achievedsales turnover of Rs. 40 croreapproximately.

National Handicrafts & HandloomsMuseum (NHHM):

The National Handicrafts & HandloomsMuseum also known as Crafts Museum islocated at Pragati Maidan, New Delhi. It isa sub-ordinate office under the office ofDevelopment Commissioner forHandlooms, Ministry of Textiles. Its mainobjectives are to increase public

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awareness about India’s ancient traditionsof handicrafts and handlooms, provide aninteractive forum for the crafts persons,designers, exporters, scholars and public,help crafts persons experience a directmarketing interaction with customerswithout middlemen, and to serve as aresource center for the Indian handicraftand handloom traditions. Collection,conservation andpreservation of crafts,revival, reproduction anddevelopment of Art andCraft constitute thebasic activities of theMuseum.

Museum Collection :The Museum has acollection of over 22,000artifacts. They areexhibited in BhutaGallery, Folk & Tribal ArtGallery, Temple Gallery,Court Craft Gallery andTextile Gallery. Thecollection consists ofMetal Icons, traditionallamps, Ritualaccessories, popularitems of daily life usedby diverse communities in various tribaland rural regions, Wood carvings, Paintedwood and Paper Mache, Dolls, Toys,Puppets, Masks, Folk and tribal paintingsand sculptures in Terracotta, Ivory etc.,traditional Playing cards (Ganjifas), Bidriwork, jewellery and traditional Indiantextiles. The Art Purchase Committeemeets every year to screen proposalsreceived from across the country to

acquire and purchase artifacts for theMuseum. The meeting of the artacquisition committee of Crafts Museumwas held on 12th 13th December, 2002 and167 art objects were acquired worth Rs15,57,804.

Craft demonstration programme : TheMuseum has strengthened the weakeninglinks of traditional handicrafts and

handlooms through itsregular monthly craftd e m o n s t r a t i o nprogrammes organisedround the year exceptduring the monsoonseason. Craftsmen(approximately) fifty permonth are invited for theCraft DemonstrationProgramme todemonstrate their skills inthe respective crafts andalso sell their products.304 Craftsmen wereinvited from variousregions under thisprogramme during theyear 2002-2003 upto 31st

January, 2003. Around 39performers also

participated in the performing artsprogrammes held in Museum during theyear 2002-2003,(up to January, 2003).

Village Complex : The Museum’s VillageComplex is a replica of rural India withfollowing structures of village dwellings andcourtyards from various parts of thecountry.

Kulu Hut (Himachal Pradesh), Meher Hut

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(Sourashtra, Gujarat), Banni Hut (Gujarat),Madhubani courtyard (Bihar), Bhilwaracourtyard (Rajasthan), West Bengalcourtyard, Nicobar Hut (Nicobar Islands),Typical courtyard of a hut (Jammu &Kashmir), Adi Hut (Arunachal Pradesh),Rabhas of Assam, Naga Hut (Nagaland),Gadbas (Orissa), Toda Hut (Tamil Nadu)and Gonds Hut (Madhya Pradesh).

Library : Museum has a specializedreference Library on traditional Indian Arts,crafts, textiles and major anthropologicalworks on Indian tribes etc. The Library hasmore than 20,000 reference books andother periodicals. Research scholars andstudents from various institutions regularlyvisit the Museum. During the current yeararound 4200 persons visited the Libraryand 2300 books and 1360 Magazines wereissued for reference up to 31st January,2003.

Exhibitions : The Museum has a SpecialExhibition Gallery in which thematicexhibitions are held. The followingexhibitions were organized in the Museumduring the current year up to 31st January,2003:

(a) An exhibition titled: “Phulkari ofPunjab” was held from 16.05.2002to 31.07.2002.

(b) “The Heart of the Deer”- a collectionof photographs on the HuicholCulture of Mexico was held from 18-9-2002 to 28-9-2002.

(c) The exhibition “Phulkari of Punjaab”was also exhibited at theGovernment Museum and ArtGallery, Chandigarh from October

23, 2002 to November 22, 2002.

(d) An exhibition ”Traditional lamps” washeld in the Special Exhibition Galleryof Crafts Museum from 28.10.2002to 27.11.2002. During this periodDiyas and Candles were also sold byCraftspersons.

(e) An exhibition ”Splendors of IndianTextiles” was curated and loaned toICCR for being held in Phnom Penh,Cambodia during ASEAN Summit. Itwas inaugurated by Hon’ble PrimeMinister of India and HM Queen ofCambodia.

(f) For an exhibition “LIBAAS” –IndianCostume through the Centre, Riyad,exhibits were loaned by the CraftsMuseum from 05-10-2002 to 25-10-2002.

Advisory Committee : During the currentyear 1st meeting of the AdvisoryCommittee was held in May 2002 and 2ndmeeting was held on 1.1.03. The AdvisoryCommittee reviewed the variousdevelopmental activities of the Museumand gave further guidance for its activities.

V.I.P. Visits : During the current year upto31.01.2003, the following dignitaries visitedthe Museum:

(a) Dr. Eduardo Serrano, DirectorGeneral of Cultural Affairs, Colombia,Ministry of External Affairs, along withdelegates visited the museum on 4th

May, 2002;

(b) Mrs. Colin Powell w/o Gen. ColinPowell, U.S. Secretary of State,visited the museum on 28th July,2002.

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(c) Mr Tan Swie Hian, a renownedartist from Singapore visited theMuseum on 28-8-2002.

(d) Dr. Carlos Flores Alcocer, Head ofthe Presidential office for StrategicPlanning and Regional Development(Cabinet Minister Rank) of Mexicovisited the museum on 4th

September, 2002.

(e) Danish study group from RoyalDanish Embassy visited theMuseum during October, 2002.

(f) A team of Rotary Club membersvisited the Museum duringDecember 2002.

Financial Progress : During the currentyear the museum has a Non-Plan outlay ofRs. 291.00 lakh and spent Rs. 176.00 lakhup to Jan, 2003.

Handloom Activities in North-EasternRegion:

North Eastern Region has the highestconcentration of Handlooms in the Country.Out of 25.4 lakh units engaged in handloomactivities, 14.6 lakh units (household andnon-household) are in five States only,namely, Arunachal Pradesh, Assam,Manipur, Nagaland and Tripura as per thehandloom census 1995-96. Over 53% oflooms in the country and more than 50% ofweavers belong to North Eastern States.

Handloom display at National Handloom Expo. Hyderabad.

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The share of these five States of NorthEastern Region in the domestic looms is82%. However, only 13.4% of thecommercial looms of the Country are inthose States and the contribution of thoseStates in total production of handloomfabrics is merely 20%.

Keeping in view the potential of the region,it was decided to upgrade the Weavers’Service Centre, Guwahati as a RegionalDesign Centre in pursuance of therecommendations of the conference of theState Ministers (Handlooms) of NorthEastern States held on 21-22 September,2000. It is now functioning as a NodalCentre for design development anddissemination of designs to the weavers inthe region.

The Centre has set up a web-site whichincludes a museum of North-Easterndesigns. The web-site has been linkedwith the National Centre for Textile Design,for the benefit of the user agencies. It will

also help link all those connected with thehandloom industry. The Regional Weavers’Service Centre also undertakes impartingof training to the weavers in and outsidethe cooperative fold under DecentralisedTraining Programme and Deen DayalHathkargha Protsahan Yojana for providingvalue addition to the fabrics.

A special dispensation has beenmade under the Deen Dayal HathkarghaProtsahan Yojana for the North EasternStates, Sikkim & J&K. Under the Scheme,the grant portion of some of thecomponents of the scheme is sharedbetween Central and State Governmentsfor North Eastern States, Sikkim & J&K inthe ratio of 90 : 10, except marketingincentive, which is in the ratio of 50 : 50.Further, transport subsidy is extended tohandloom agencies in the region tofacilitate marketing of handloom productsin other parts of the Country andstrengthen backward linkages in terms ofmore employment opportunities.

handloom industry t - texmin.nic.in

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