It takes more than a #hashtag

The National Handloom Day on August 7 was selected by the government for the potential it has in creating nostalgia and a strong sense of Indian rural traditions and manufacturing ethos. However, governmental action in rejuvenating handloom sector falls far short of the needs of an average handloom weaver.

Despite a widely acknowledged fact that handloom sector is a big employer of rural people, unfortunately, a few decision-making sections, ignorant as they are, consider it as a sunset industry. Of course, one needs to take note of the pressures created by mechanisation, modernisation and sophistication.

In fact, actual problems of handloom weavers are different. To address them, the discussion has to go beyond subsidies and production statistics. A typical woman, in a handloom weaver household, works on various chores in handloom weaving since her childhood. However, she does not know that her work by Indian laws can be considered as a wage job, and she is entitled to a minimum wage.

As per government notification, in 2016, in Telangana, an unskilled worker should get a minimum wage of Rs 363 per day. And, at the national level, a skilled worker should get about Rs 850 per day. But, many handloom weavers earn less than Rs 100, often averaging Rs 50 per day. After toiling for years, many of these families do not own either a piece of land or house. In some places, due to mounting debts, families had to sell their houses and migrate.

After working for more than 10 hours every day for more than 20 years, a typical family does not even have their own house or handloom. In some places, they have to pay Rs 100 as rent. Most families do not have ration cards. A widow does not get a pension or any other benefits from the government. Deteriorating health and chronic health issues add to the burden of a miserable life.

A typical family in Chirala, of Andhra Pradesh, weaves 18 sarees per month and earns Rs 1,500. This does not even suffice for their food needs, leave alone other requirements. Wages do not respond to the cost of living index or inflation. Power loom products masquerading as handloom products have shrunk market shares.

As a result, there has been an extensive loss of work. Also, with the rise in hank yarn and other basic raw material inputs in the past five years, master weavers reduce wages, adversely impacting individual family economies. Average handloom family is caught in a vicious cycle, resulting in poverty, starvation and death.

Neglect of handloom sector by the government has created this situation. Lax enforcement of laws to protect handloom products from the unfair competition, ‘drying’ up of institutional credit for handloom production, rising input prices, corruption in handloom cooperatives and reduction in government budget for handloom sector have cumulatively led to such a situation.

Governments continue to neglect. In Telangana, not even one rupee was allocated to handloom sector. In Andhra Pradesh also allocations are very low. India is known for its handloom products for centuries and it is one of the oldest industries. Given this, coupled with the size of India, one can see varied facets of this industry across the country, being interwoven with local cultural traditions.

In the North Eastern States it is limited to the clothing needs of the household, and in other States such Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Assam and Orissa, handloom sector competes with the most modern textile industries. In South India, significant and popular handloom brands continue to attract consumers and most of them are in Andhra Pradesh and Telangana.

Mangalagiri, Venkatagiri, Dharmavaram, Pochampalli and Gadwal handloom varieties have a market demand across India and in foreign countries too. In most countries handloom sector has vanished long ago, in part due to competition.

Yet, handloom weavers continue to eke out their living in substantial numbers within India. This indicates a certain domestic market environment, much beyond tourist-kind of sales that sustains this high level of production.

Handloom sector has a turnover of Rs 60,000 crore, and a market demand of Rs.100,000 crore per year. Handloom exports have reached Rs 4,000 crore per year. More than three crore people were dependent on this sector. It is eco-friendly production, which has all the technological capacities within the country.

Despite an atmosphere of despair over its conditions, there are many consumers in India who would like to see the robust growth of handloom sector. The reasons for such desire are many including ideology, philosophy, sheer love for handloom products and economic arguments.

Independent of these desires for its growth, handloom sector is undergoing changes. These changes are impacting on the working and living conditions of handloom weavers, despite policies, projects and aspirations arising out of various quarters.

Vulnerability on the rise
In this regard, India’s policy-makers have a different idea, and they continue to nurture it beyond rationality and common sense. Their imagination of handloom sector does not go beyond the image of a famished weaver before a loom.

The contribution of handloom weavers to Indian GDP, and India as a brand in foreign countries has never been quantified. Policy discussions do not refer to such statistics. Handloom sector invests more than Rs 25,000 crore on accessing cotton yarn, and Rs 9,500 crore on dyes and chemicals every year. Handloom production is dependent on private money lending to the tune of Rs 35,000 crore and pays interests between 18 to 24 per cent.

Despite such a huge contribution, the budget for handloom sector was a mere 0.003 per cent in national budget in 2013-14, and in 2016-17 its 0.0003 per cent. Investment in handloom sector per metre was a mere 48 paise in 2008-09, while for the non-handloom 62 paise, and has not increased ever since.

In comparison, the government provides tax breaks, subsidies and incentives for MAITI (Modern, Automated Indian Textile Industry), other than budget allocations. This exceeds Rs 1,00,000 crore in the last nine years.

Handloom weavers are facing severe livelihood crisis because of adverse government policies, globalisation and changing socio-economic conditions, both at national and State levels. Suicides are on the rise. Ineffective implementation of the schemes, increasing unfair competition from the power loom and mill sectors are some of the factors responsible for the crisis.

National Neglect
The government seems to have run out of ideas. It is not even doing any consultations. A welcome move has been the celebration of National Handloom Day, on August 7. This celebration, initiated and actively participated by Prime Minister, Narendra Modi, has raised a lot of hopes and expectations among handloom consumers, producers and economists.

Invoking tradition cannot remain a mere political slogan. There has to be a meaningful action that responds to the needs of handloom weavers.

A ‘Make in India’ and ‘India Handlooms’ programme lie at the consumer end. Handloom weavers require basic support at the production level. Their wages have to increase, incomes have to respond to living costs and families have to gain confidence in this livelihood.

BJP Manifesto promised to strategically develop labour intensive manufacturing. Per capita spending of the government on handloom sector, a labour intensive textile manufacturing section, spread all over India, does not exceed Rs 500.

But, it is ready to spend Rs 1,000 crore on Self-Employment and Talent Utilization (SETU). Government’s target of encouraging self-employment would have been reached with smaller investments in handloom sector. Thousands of handloom weavers are becoming poorer by the day, as their wages are not increasing.

Big Promise, Tiny Deliverance
Handloom weavers have been demanding, for long, for the provision of access to low-interest credit. Presently, to produce handloom products, they are borrowing money at exorbitant interest rates, ranging from normal to the bizarre, from 14 per cent to 60 per cent.

Previously, loan waiver package of Rs 2,205 crore could not reach the needy handloom weavers to relieve them of the debt burden.

Debt burden on individual handloom weavers has been for multiple reasons over which they do not have any control or say. The cost of living has increased in the last 15 years steadily, and tremendously over the last few years, generously aided by inflation and under the regulation of basic food commodity prices.

The cost of raw material, especially cotton and silk yarn have also gone up. Prices of yarn have been climbing continuously. Silk has been climbing rapidly in the last four years. With competition, from cheap and fake handloom products, wearing them down, handloom weavers had no way to increase their incomes to respond to rising costs of living and raw material prices.

Further, the most critical component of their production, working capital flows are drying up from ‘traditional sources’ and institutional mechanisms. NABARD the only comparatively cheap source of finances for handloom sector has drastically reduced its exposure.

With the result, handloom weavers were forced to find ‘expensive’, private sources of finances. Interest rates at this level usually are higher and are not regulated. Lack of awareness, exploitative conditions compounds the misery caused by high-interest rates.

Conclusion
Allocations for handloom sector have been fluctuating, wildly without any rhyme, reason or accountability over the past 20 years. There is no continuity. Schemes are introduced and withdrawn. Implementation has been shoddy. Expenditure is low, even though the allocations are a pittance.

There is no proper need assessment for handloom sector. Not even single paisa has reached handloom weavers. Handloom funds are being soaked up by institutions, employees, corruption, bad planning and low commitment.

Problems for handloom sector in budgetary allocations stem out of the perspective of Union Textile Ministry, framed as they are in Planning Commission approaches and lobbying by anti-handloom sector groups. In general, Ministers for Textiles are from either Gujarat or Tamil Nadu, which boosts the prospects for exporters, spinners and textile mill lobbying. Even Secretaries have been from pro-modern textile industry lobby.

Advocates for handloom sector are divided and do not represent themselves as a lobby in the corridors of Textile Ministry. Handloom weavers themselves are unorganised, and they have ceased to be a vote bank.

For this reason, governments have been bold in denying higher allocations even in the election years. At the same time, the business lobby has become stronger and stronger. Handloom weavers are still hanging on, only because of their sacrifices.

By: Dr Narasimha Reddy Donthi
The writer is a versatile activist with wide ranging interests and work therein. He is a Member of Consultative Committee of Cotton Advisory Board, Ministry of Textiles. He is the only textile expert who works on textile and handloom policies.