How handloom excesses deliver diminishing returns

The Textiles Ministry8217;s problems are compounded by the handloom sector8217;s continual decline. Its contribution to cloth production in the country has plummeted to 13.

The Textiles Ministry8217;s problems are compounded by the handloom sector8217;s continual decline. Its contribution to cloth production in the country has plummeted to 13.

In fact, the reality could be far worse as the handloom census is long overdue and the government continues to rely on figures that are a decade old. The last census in 1995-96 had revealed that there are 3.29 million looms in the country and 6.5 million weavers. Ministry officials admit that there has been a shrinkage over years.

The absence of figures has affected policy-making process and the ministry blames the finance ministry for not releasing funds for conducting the census. 8216;8216;A proposal to the effect was made two years back but we have not heard from the finance ministry,8217;8217; said a ministry official.

There are similar problems with government figures on the sector8217;s productivity. In the absence of a mechanism to gauge the production level in the looms, the government relies on a conversion ratio to calculate handloom production from overall cloth production figures.

This ratio has not been reviewed and the last time when a survey was conducted in June 2001, the textile commissioner had suggested lowering the conversion ratio from the current 12.40-12.90 to a standard 7.5. Neither was the recommendation implemented nor was the report ever referred to.

Then, there8217;s the existence of two policies8212;the Hank Yarn Packing Obligation Scheme and the Handloom reservation of articles for production Act. The ministry has been found wanting on not reviewing the viability of these schemes which seek to protect handloom from competition in the market.

The Hank Yarn Obligation Scheme ensures that 40 of the produce in the mill sector is reserved for handloom. A survey conducted under the aegis of the textile commissioner in January 2000 had found that 37 of yarn available under the scheme is being utilised by the powerloom sector, proving that handloom does not need yarn to that extent.

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Even as the government continues to formulate one scheme after the other, the sector continues to reel under competition with the powerloom sector. The ministry has been insisting that handloom will have to concentrate on niche product categories but its policies seek to prevent any shrinkage in the labour or capital involved.

Globally, handloom has been on a decline with Indian subcontinent including countries like India, Pakistan, Bangladesh and Nepal accounting for over 97 of looms. Out of the total 46 lakh looms in the world, India alone accounts for 39 lakh, constituting a whopping 85.

Ministry officials admit the policies being followed are populist in nature. 8216;8216;The sector will shrink from the current position because of slackening demand of the products in the market. But even if that is inevitable, the government has to be seen as trying to protect the interests of the labour involved,8217;8217; said a senior ministry official.

Tomorrow: Powerloom push needed