9th May, 2002
Ministry of Textiles
 


MORE ALLOCATION OF FUNDS FOR HANDLOOM SECTOR UNDER Xth PLAN OUTLAY


Keeping in view the international market for handloom sector, allocation under the 10th plan outlay have been increased to Rs. 625 crores as against Rs. 452.50 crores in Ninth Plan. In the current year, a provision of Rs. 140 crore has been made for handloom sector schemes as against last year's plan outlay of Rs. 117 crore for production of high value items for niche markets. This was stated by Mr. Kashiram Rana, Minister of Textiles while addressing the 3rd All India Handloom Board Meeting in New Delhi today. He said the key issues which confront the growth of the handloom sector are traditional production techniques, lack of modernization, quality upgradation, lack of designs and product innovations, non availability of timely credit facilities, inadequate market intelligence and feedback, lack of requisite marketing support and cost handicaps vis-à-vis other competing products. The Minister suggested that the best way to save handloom weavers is to ensure a well organised and remunerative market for the cloth produced by them. More number of Marketing Complexes, National Handloom Expos, and Haats shall have to be set up. Participation in National and International fairs and exhibitions will have to be augmented and made more purposeful. Organisation of specialized craft melas, and district level events should be intensified, as these are the platforms, which help the weavers in liquidation of their handloom stocks. In view of the post 2004 scenario, the Minister felt that the National Centre for Textile Design (NCTD) and the National Institutes of Fashion Technology (NIFT) will have to play a greater role in providing information on latest fashion and cloth trends so that the weavers, exporters and handloom agencies are able to produce high value fabrics to meet the changing requirements of the market abroad. Mr. Rana expressed that the Deen Dayal Hathkargha Protsahan Yojana is an ambitious scheme introduced in the year 2000-2001 and it recognizes and covers weavers within and outside the cooperative fold. But despite Central government's best efforts, many States have not yet come forward to extend benefit to their weavers under this scheme. During the Xth Plan period, Ministry envisages to develop some identified clusters in almost all the States so that the flow of funds from the schemes being implemented by the Government of India benefits the weavers in a coordinated and concerted manner. Minister of Textiles said that CENVAT @ 9.2% and 18.4% respectively on cotton and cellulosic spun yarn has been levied in the budget of 2002-03. This includes additional excise duty on textiles and textile articles. But in order to prevent hardship to handloom weavers, due to the imposition of this duty, a scheme has been prepared to supply the yarn net of CENVAT to handloom weavers. The scheme proposes to provide for reimbursement @ 10% of the value of cotton yarn and 20% of the value of cellulosic yarn so as to cover the duty of 9.2% and 18.4% respectively to the agencies supplying such yarn to handloom weavers. He stated that National Handloom Development Corporation (NHDC), NTC and State Governments have been directed to ensure uninterrupted supply of hank yarn to the weavers, net of CENVAT and to claim reimbursement of the duty from the Central Government. Speaking on the occasion, Minister of State for Textiles, Mr. V. Dhananjaya Kumar said the Government is aware of the problems of dispersed and unorganised handloom sector and is committed to the socio-economic upliftment of the weavers. The Ministry has been implementing a number of developmental schemes and programmes for the benefit and welfare of the weavers such as Deen Dayal Hathkargha Protsahan Yojana, Work-Shed-Cum-Housing, Health Package, Thrift Fund, Insurance and Development of Exportable Products and their Marketing, etc. These schemes are not only promotion-oriented but are also designed to ensure that the teeming millions engaged in this sector get remunerative wages, better work places, and uninterrupted employment which alone can sustain the growth of this sector. He suggested that a new direction should be given to the policies and programmes so that this untapped source with unlimited scope for generation of employment is put to maximum utility. Mr. Dhananjaya Kumar added that despite the odds of low earnings and shifts in consumer tastes and preferences, handloom weaving continues by and large in the entire country and this sector produces excellent works of arts such as Kancheevaram, Baluchari, Jamdani, Paithani, Chanderi, Bandhani, Vichitrapuri, Pochampalli, Patola, Muga varieties etc. Mr..S.B. Mahapatra, Secretary, Ministry of Textiles said that the handloom sector is passing through crisis all over the country and it is time to take some remedial measures. He said in view of the changing tastes of the consumers, marketing for handloom sector has become a major problem. Efforts have to be made to improve upon the quality of the cloth and additional designs to be innovated. The Board members highlighted some of the problems being faced by the weavers and urged upon the Ministry to take remedial steps.