Strategies to boost INDIAN HANDLOOM Sector
Today, the handloom sector is considered to be one of the largest unorganized sectors after agriculture and forms an integral part of the rural and semi-rural livelihood
INTRODUCTION
India’s handloom sector accounts for around 13-15% of the country’s textile production and is a Rs 50,000 crore industry in India. To uplift the Handloom sector govt of India observes National Handloom Day on August 7 every year since 2015. As per the Economic survey 2020, the textile and apparel industry contributed 2% in the overall GDP and 11% of total manufacturing GVA in FY20 and provided total direct and indirect employment of about 10.5 crore people.
As per the 4th All India Handloom Census, the total number of households in India engaged in handloom activities (weaving and allied activities) is 31.45 lakhs.
- Nearly one in four weavers have not received any formal education.
- The majority (66.3%) of the weaver households earn less than Rs.5,000/- per month
BACKGROUND
India has a rich tradition of handloom weaving since time immemorial with the earliest evidence going back to the Indus Valley civilisation. Export of handloom products, as early as the fifteenth century was reported, followed by Vasco da Gama’s visit to India thereby opening trade routes for Europe. And in 17th-century mention Burhanpur in Madhya Pradesh as the hub for international trade with exports to Egypt, Poland, Russia and the Gulf region. Finally by the end of the 17th-century, 83% of East India’s Company trade accounted for clothing exports.
Why the Handloom Sector is Imp
Even in this technological era, there is still a strong relevance of the Handloom sector. Following are three reasons to justify it
- The relevance of the handloom sector in the agrarian economy is massive because of its linkages with crucial and sensitive sectors like agriculture. It uses agricultural products as raw materials and, therefore, provides an ever-ready market for agricultural produce. Therefore, in an economy where the majority of people still rely on the agrarian sector for their livelihood, the significance of handloom is well understood.
- It is a sector that directly addresses women’s empowerment. As per the present census, the sector engages over 23 lakhs female weavers and allied workers
- 95% of the international handloom market is fed from India. As per a report by India Brand Equity Foundation (IBEF), the US was the major importer of Indian handloom products, with estimated purchases of US$ 100.08 million
GOVERNMENT MEASURES
A. INSTITUTIONAL MEASURES
- With a view to raising funds for the sector and organising weavers’ cooperatives, Parliament had passed the Khadi and Other Handloom Industries Development Act in 1953.
- To facilitate the marketing of fabrics, All India Handloom Fabrics Marketing Cooperative Society was set up in 1955
- Indian Institute of Handloom Technology was set up to provide infrastructure back
- Handloom and Handicrafts Export Corporation of India Ltd (HHEC) was set up in 1958 to promote the export of handlooms
- To ensure a steady supply of raw materials such as yarn, dyes and chemicals to the handloom sector, the National Handloom Development Corporation (NHDC) was set up in 1983.
B. SCHEMES
1. National Handloom Development Programme (NHDP)
The objective of the
programme is holistic and integrated development of the handloom industry and the welfare of weavers. The programme supports weavers, both within and outside the
cooperative fold including Self Help Groups, NGOs etc. towards credit design
inputs, technology up-gradation, marketing support and skill up-gradation. The
major components of the scheme are as follows:-
(i) Concessional Credit for handloom sector through the Weaver Mudra Scheme
The scheme was launched in
September 2015 with the aim to provide loans at a concessional interest rate of
6% for a period of three years. Also, money margin assistance to a maximum of ₹
10000 per weaver and credit guarantee for a period of three years is provided
by the scheme. The scheme has benefitted over 52059 weavers and a loan of ₹
271.62 crores were sanctioned under the name of the Weaver Mudra Scheme.
(ii) Block level cluster
projects
A cluster in the block is
eligible to avail financial assistance up to ₹ 2.00 crores for Common Facility
Centre (CFC) including Common Service Centre (CSC), engagement of textile
designer cum marketing initiative, construction of common and individual work
shed, the appointment of Cluster Development Executive (CDE), technological and
skill up-gradation. Also, financial assistance up to ₹ 50.00 lakh is available
for setting up of dye house at the district level.
2. Yarn Supply Scheme
The scheme is implemented
by the Government of India through National Handloom Development Corporation with
an objective to make all types of yarn available at the Mill Gate Price to the
weavers. As per the scheme freight is reimbursed and 2% depot operating charges
are given to depot operating agencies. Further 10% price subsidy on hank yarn
is also provided under which 10% subsidy is applicable on cotton, domestic silk
and woollen yarn with quantity limitation. NHDC has opened 10 yarn depots cum
warehouses so as to ensure timely supplies to the users on a cash basis, besides
taking care of individual weavers who need yarn in small quantity. The amount
of fund released during the period 2017-18 amount to be ₹162.07 crores.
3. E-Dhaga App
In order to enhance the
effectiveness of the yarn supply, the National Handloom Development Corporation
(NHDC) launched Enterprise Resource Planning (ERP) system and e-Dhaga mobile
app in the year 2016. The mobile app enables transparency by allowing the
weavers to place their orders directly on the app and accordingly make online
payments for the same. The status of the shipments is also available through
the app and the app is available in ten languages. The app is helpful to the
weavers as they can now access information anytime and anywhere. They can also
view yarn stock in NHDC’s depots, warehouses and CFCs, product catalogue and
the supplier list. Thus, the app is important to address individual concerns of
weavers such as availability of raw material, delays in supplies and ensuring
stocks in depots.
4.Comprehensive Handloom Cluster Development Scheme (CHCDS)
The scheme was introduced to develop mega clusters located in clearly identifiable geographic locations and which specialize in the specific product (s). The nature and level of assistance to each cluster is need-based and includes the components that are necessary for meeting the objectives, such as technology up-gradation, product diversification, raw material bank, credit, market development, forward and backward linkages, social security, and physical infrastructure, among others. The objective is to develop close linkages and interdependence among key players in the cluster by improving infrastructure, storage facilities, technology in pre-loom, on-loom, post-loom operations, weaving shed, design inputs, health facilities etc.
5. Government e-Marketplace (GeM)
To
support the handloom and handicraft sectors and to enable a wider market for
handloom weavers/artisans/producers, steps have been taken to on-board
weavers/artisans on Government e-Marketplace (GeM) to enable them to sell
their products directly to various Government Departments and organizations.
6. #Vocal 4 handmade
A social media campaign #Vocal 4 handmade was launched on the
6th National Handloom Day by the Government, in partnership with all
stakeholders, to promote the handloom legacy of India and to ensure people’s
support for the weaving community. The social media campaign has resulted
in the renewed interest of the Indian public in handlooms and several e-commerce
players have reported an increase in sales of Indian handloom products.
Strategy for Handloom sector
The present business model
used by handloom organizations is currently not viable and successful. For
this overall business strategy needs to be reoriented. To gain profit handloom
industry has to market its products and to compete with other products. For
this customer needs to rate handloom products superior to other products. To
cope up with these competitive forces there are strategies.
1.Differentiation:
Another strategy to be competitive in the market is differentiation. It involves making your products or services different from and more attractive to those of your competitors. Differentiation can be done through additional features packaging, design and positioning
Differentiation can be
achieved by creating a different set of activities which are as follows
· Identification of a new product: The fabric can be woven by blending various yarns and designs as every yard can be changed to weave intricate designs which are impossible for the power looms to produce. The majority of weavers involved in durrie making, can diversify to home furnishing material and upholstery material. In handloom sector especially for each cluster such as for Jaipur district products like reversible - weft backed furnishing varieties like yoga mats, floor carpets, pooja mats etc. can be produced.
· Quality Assurance system: The quality assessment of yarns, woven fabric, dyeing, finishing & packaging should be done nicely. To create a permanent Strategy for Sustainable Development of Handloom Industry 97 space for the handloom products in the national and international market quality assurance is of utmost importance.
· Promotion: In the case of handloom, first of all, there is a need to create awareness about the features and advantages of handloom products. Effective publicity through an appropriate media mix should be done. Print and electric media can be used in the right proportion. A regular buyer-seller meet is required so that the weavers get a platform to market their products.
· Distribution
channel: The differentiation in distribution channel can be done through online
sales through the website, marketing personnel’s can be consulted, a tie-up with
boutique owners can be done to sell the handloom products, a chain selling
readymade garments such as Westside & Big Bazaar can be approached.
2. Digital marketing strategies
The handloom industry had got a much needed shot in the arm, thanks to these three factors- e-commerce boom, government support and initiatives like ‘Make in India’ and most importantly changing consumer preferences and their inclination to acquire unique fabrics and designs. The greatest boons to the Indian handloom industry is the “new Digital India”. Social media platforms have managed to do bring together, the discerning, socially conscious handloom-users worldwide giving them a platform to interact, post pictures, flaunt, discuss and showcase their beautiful handloom products thus building awareness and interest in the product. This naturally leads to an increase in the demand for the products,
Currently, e-commerce
and physical retail space for handlooms is rather fragmented, with no real single big player owning the space. This would mean two things — the industry
and the market conditions have enough space for many small players to build
their niche and grow, and the consolidation is certain to happen
3. Eco-friendly Fabric
The Study emphasizes the eco-friendly and largely
organic nature of handloom products, an attribute that needs to be leveraged to
attract the attention of customers. The Study recommends undertaking
traceability of handloom products in this respect. Since there exists the huge
potential for green clothing among environmentally conscious consumers, the
Study asserts that this trend needs to be fruitfully taken advantage of by the
handloom sector. Eco-friendly handloom products from India could be sold under
a new brand name, which would highlight the fabric quality and
eco-friendliness. This is expected to bode well in terms of increasing the
overseas demand for Indian handloom products.
4. Providing Market Intelligence to Weavers
Providing marketing
linkages and intelligence to the weavers will help them earn a sustainable
earning from the craft and produce market relevant products. An ecosystem that
can provide ready access to raw materials, working capital, customer knowledge,
design capabilities, reliable sales channel, health and insurance cover needs
to be created to revive the sector. Besides, there is a need to educate the
artisans about the raw materials and the products used and how to market them.
Proper education and training should be provided to weavers about modern and
innovative techniques of production. Market studies should also be conducted
regularly to understand which products are in demand in the international
markets and results should be shared with artisans
5. Handloom Development and Equity fund [HDEF]
The high-level Committee of GoI for recommending financial package for the handloom sector [April 2009] had recommended setting up of a Handloom Development and Equity fund [HDEF]. Handloom Development and Equity fund [HDEF] in our view is required mainly to provide, to eligible institutions and implementing agencies including NGOs and Handloom Weavers Groups, support in the form of promotional and developmental assistance and also to provide equity support to institutional agencies, wherever found necessary, so as to ensure increased and hassle-free credit flow to handloom weavers. As per the committee recommendations, the following activities could be supported by the fund:
i. Meeting the equity and other forms of capital needs of implementing and supporting agencies. ii. Meeting the operational deficit of financial intermediaries like HWGs, NGOs, Federations and producer organizations of weavers etc. during initial years.
iii. Funding the expenses
for developing a ‘performance-cum-credit rating’ model for HWGs. providing
support to promotional agencies/ Banks to form, nurture and facilitate linkage
of HWGs with Banks.
6. Pull Supply Chain strategy instead of Push strategy in the cluster
The cluster currently
operates on a push supply chain format where products are first produced by the
weavers and then they try to sell them to retailers due to which many products
remain unsold. This needs to be changed to the pull strategy of the supply chain
where design and material requirements placed by the retailers as per consumer
demand needs will be produced by the weavers. This decline the textile wastage
as well as save the time, energy, and materials that the weavers put into
production.
7. Special market complexes
The practice is happening
B2B where weavers are not getting good margins. If weavers can be connected
with customers directly with new channels, they may able to make good money.
Special market complexes for exclusive sale of
handloom products of the state and outside will be set up to facilitate buying
and selling of varieties of handloom products ( Marketing Hub/Hat ) under a
single roof. These could be set up with both Govt. funding and through PPP
mode. Such market complexes are expected to not only help the weavers and
artisans to sell their products at reasonable prices by dispensing With
middlemen but Will also help them know the market/design trend for handloom
products for their future improvement. This will Iso facilitate the buyers to
choose their favourite products under one roof which in turn will enhance the volume
of sale of handloom products in the state.
8. Vertically
Integrated Production Model
A vertically integrated production model must be
adopted by the producers so that different processes across the entire supply
chain are streamlined and integrated. There should be direct control on each
step of the supply chain starting from procurement of raw material to supplying of
finished products. This would help in establishing better economies of scale
and fasten the production process.
9. Industrial Scale Handloom Parks
Though there are many clusters set up in Banaras and nearby areas, where Banarsi Saree is produced on the handloom, but there is no synergy between clusters with respect to design Of product, design Of loom, procurement of raw material and linkage with the market. An industrial-scale handloom would ensure that there would be synergy across these functions, along with consistency in fabric quality and dyeing. Bulk buying would result in better discounts, thus leading to better unit economics. Such an industrial-scale loom setup would not only produce consistent quality handloom fabric on a mass scale but also have more concentrated market linkages to cater to demands generated throughout the year.
Conclusion
The government’s ‘Atmanirbharta’ programme, the ‘vocal for local’ campaign, together with the ‘Make in India’, presents a huge opportunity to the handloom sector to further strengthen the Indian positioning in the global textiles space. In order to boost this, however, the demand first has to come from home
The study urges for a comprehensive policy framework to tackle the existing bottlenecks related to
access to credit/capital, market linkages, and extension services to promote
the technology adoption among the rural micro-entrepreneurs.
@Ramchander.N
**************************
It is very comprehensive article on the handloom industry. It should be a must go through once for anyone who wants to understand the handloom industry. Well written.
ReplyDelete