Conditions Of Weavers In India – A Case Study Of Sircilla Concentration Zone Of Weavers In Andhra Preadesh

Parliamentary Standing Committee on Labour 2008-09 has submitted the Thirty-Fifth Report on the subject ”General conditions of weavers in the country – A case study of Sircilla concentration zone of weavers”.

The Committee undertook an on-the-spot visit to Sircilla on 5th October, 2008 to have the first hand information regarding the problems/issues also heard the views of the Hyderabad based Associations/Individuals on 6th October 2008.

A brief extract of recommendations/observations of the Committee are presented below:

* The Committee noted that there are 2,50,805 handlooms and 45,064 powerlooms in the State of Andhra Pradesh. Sircilla is predominantly a powerloom center as there are 22,168 powerlooms and 220 of handloom units. 13,500 weavers are working as powerloom weavers and there is no figure of handloom weavers. Over a period of time handloom units have been converted to powerloom units and the weavers have shifted to powerloom units. There have been high incidents of suicides by the powerloom weavers in Sircilla and the reasons are (i) Lack of regular jobs, (ii) inadequate wages, (iii) indebtedness and resultant harassment by the micro-finance companies, (iv) closure of powerloom units on account of piling of unlifted stock, (v) ill health and other domestic reasons (vi) prolonged addiction to alcohol. Out of the reported 314 cases of suicides, 161 cases of assistance have been rejected and 8 cases are pending decision. Reasons for rejection of cases have been stated to be (i) natural death, (ii) accidental death, (iii) suicides due to family disputes etc. etc. However, an amount of Rs. 25,000/- has been released to 122 cases from CM Relief Fund as a special case. Other benefits sanctioned to families are 70 widow pensions, 54 houses, 47 upgradation of powerlooms, 122 AAY Cards, 18 old aged pensions, 49 sewing machines and 25 IAY houses. Group Insurance Scheme for powerloom workers appear to be the only scheme, no other meaningful scheme exists which can provide succor to weavers at the time of their need. The Central Government provided fund of about Rs. 52 crores to the State Government of Andhra Pradesh during last three years for running various plan and non-plan schemes for the weavers. The State Government also inter-alia initiated the various measures viz. (i) 50% power tariff concession, (ii) upgradation of powerloom with grant of Rs. 30,000/- for 2 powerlooms, (iii) sanction of 2 Textile Parks, (iv) sanction of Rs. 21,00,000/- to an NGO, NETHA Cheyutha Trust, (v) coverage of 5,954 powerloom workers under Health Insurance Scheme, (vi) sanction of ex-gratia of Rs. 1.5 lakh to each one of the suicide case fulfilling the norms etc. etc. Also there are Technology Upgradation Fund Scheme (TUFS), 20% Margin Money Subsidy Scheme for powerlooms, 15% Margin Money Scheme for SSI units, Modified Group Workshed Scheme, Scheme for Integrated Textile Park (SITP) and Integrated Textile Cluster Development Programme etc. etc. However, these schemes are in vogue for last many years. But, the beneficiary of these schemes have been mainly the owners of the powerlooms and textile industry rather than the poor weavers. Had the intended benefits actually reached them, the conditions of weavers in Sircilla might not have been what it is today. The suicide cases are the result of severe distress wherein weavers are left with no hope but to resort to such an extreme step. The incidents of suicides by weavers should be an eye-opener to the Government to become pro-active in protecting the interests of the weavers. Instead of distributing ex-gratia after the suicides, it will be in the fitness of things if initiatives are taken in right earnest to promote weavers’ welfare.

* Handloom sector is one of the largest employer in the country. However, there are no authentic figures with regard to the number of weavers and allied workers engaged in this sector. The policies of the Government are formulated on assumptions. As per the census conducted in 1995-96, about 65 lakh persons are engaged in weaving and associated activities in the Handloom sector. The Working Group of Textile Industry for X Plan indicated it as 120 lakh. Considering 100% difference between the two estimates by the Government, immediate action is required to determine the truth. The Committee, therefore, strongly recommend that urgent steps should be taken to conduct a survey of weavers and other workers engaged in the handloom and powerloom sector to ascertain their figures, also to identify the real problem plaguing the weavers’ community.

* The Committee take note of the fact that there are multiple schemes aimed at improving the conditions of weavers, like training projects to workshed-cum-housing, cluster developments, weavers comprehensive welfare inclusive of health insurance, mill gate price scheme, marketing and export promotion, strengthening of weavers service centre, etc. etc. The primary objective of all these schemes is to improve the condition of weavers. Yet, the condition of common weavers in the country has remained desperate and distraught. Schemes are introduced without proper spade work and thereafter withdrawal, modifications and merger of schemes with other schemes keep going on and every time some or the other excuse is put forward for such display of incompetence and un-imagination. For this kind of goof-up the poor weaver is not even aware as to what is being done by the Government for them. Moreover, because of the procedural difficulties most of the weavers remain outside the reach of the system. The Government should evaluate the performance of the existing welfare schemes for the workers and necessary follow-up action should be taken by the Government. The thrust of such schemes should be on the problem of weavers relating to minimum wages, sickness, maternity, housing, education of children, employment injury, unemployment, subsistence allowance when owners are not giving work on account of temporary closure of units, invalidity, old age and death.

* The Committee note that self investment or private investment in the handloom sector has been the mainstay for production of handloom. As most of the weavers belong to very poor section of the society, they manage finances from the private parties/credit companies at great cost in terms of the interest. Because banks do not finance them or provide loans without counter guarantees, they take money from private finance companies for raising their working capital or to run their household. Private micro finance units exploit poor weavers to the hilt and sometimes they even work under wage bondage to these private companies. Cooperative system has also failed miserably in terms of arranging finances to the individual weavers. Even informal system of marketing did not help in attracting public investment into the sector due to its inherent shortcomings like risk of defaults and reneging of promises, etc. The Committee strongly recommend that it will be most appropriate if formation of handloom bank on the pattern of NABARD and SIDBI is given thought of. To start with specialized branches could be set-up in the highly concentrated zone of weavers from amongst nationalized/cooperative banks. Loan to weavers from these banks should be made available on soft terms. Some mechanism be devised to waive the existing loan of the weavers who are heavily indebted and are not in a position to repay the loan to the local money lenders.

* The Committee understand that Kerala Government at the behest of Handloom Cooperative has advised the schools in the State to ask the students and teachers to wear handloom dress at least once a week. The Committee desire that Central Government may send similar advisory requests to all the States/UTs. This will go a long way in inculcating the use of handloom clothes in the Country.

The Committee note that handloom markets are under threat because Powerloom products are being extensively sold as handloom products. This is preventing the genuine handloom products in entering the market. To obviate this, there should be strict implementation of the Handloom (Reservation of Articles for Production) Act, 1985 and proper machinery should be set up for its enforcement. There should also be proper labeling of the handloom products and powerloom products so that these have distinct identities.

For More Reading. .

• WHAT IS THE SHARE OF HANDLOOM SECTOR IN GDP
• Re-Surgence Of Khadi – Angshuman Dey
• Reforms In Khadi Sector

Tags: micro finance weavers