FACE LIFT TO HANDLOOM SECTOR - An Imperative Beginning
What the handloom sector should look far then is not continuation of financial subsidies, but institutional support for modernization of production, steady and regular supply of inputs like yarn, dyes and chemicals at reasonable prices, training in design and innovative patterns of weaving. There is also a need to empower weavers to chart out a sustainable path for growth and diversification in line with emerging market trend. The handloom sector has an edge over the power loom and mill sector in its ability to commercially produce the goods in small volumes, openness to innovation, quick to switch over to new designs, adoptability to suppliers requirements and creation of exquisite designs. It has also the comparative advantage in terms of availability of skill base across the country, abundance of local raw materials and labour intensity. Yet this sector has not been able to fully harness its potential.
During the VIII and IX Plan, the Central Government has been extending financial assistance to the states on the basis of centrally sponsored schemes and intended benefits have gone to the beneficiaries as determined by the State Governments. There has been no focused approach in growth and development of Handloom sector as resources were generally spread very thinly. The working group for the X Five Year Plan had proposed a slight shift in the development paradigm--focus on cluster development.
In the Textile Policy of 2000, to make the Handloom industry capable of surviving in a globally competitive world, emphasis was given on encouraging and assisting excellence in craftsmanship in order to carve out a niche on exclusivity of design and product and for this purpose, on the provision of skill upgradation, technological improvement, product development and marketing. After the removal of restrictions on imports as per the W.T.O. obligations, the Handloom sector have seen erosion of fiscal protection by removal of the excise exemption in favour of handloom sector and putting it at par with the Powerloom and Mill sectors since the excise duty on yarn was abolished for all sectors.

Latest news