Lok Sabha Question No. 4427 (UNSTARRED), answered on 2022-03-30
Subject: Strengthening Handloom Industry
Ministry: TEXTILES
Asked by: Badruddin Ajmal

## STRENGTHENING HANDLOOM INDUSTRY

## 4427. SHRI M. BADRUDDIN AJMAL:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a)  whether  the  handloom  industry  is  facing  numerous  problems  due  to  inadequate  process,  supply chain, lack of sales support and non-existent of proper branding for the finished goods and if so, the details thereof;

(b) whether the price fluctuations in the open market eat up the profit margins of the weavers as more than 60% of the sales happen in the local markets;

(c) if so, the remedial measures taken by the Government to strengthen the handloom industry in India during last five years including the current year; and

(d)  the  detail  of  the  schemes  being  implemented  and  funds  allocated/  utilized  for  strengthening  and promotion of handloom industry during the said period, year-wise and scheme-wise?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE FOR TEXTILES (SMT. DARSHANA JARDOSH)

(a) to (d): To  support  the  Handloom  sector  and  remove  the  difficulties  faced  by  the  handloom weavers, the Ministry of Textiles is implementing the following schemes across the country:

1. National Handloom Development Programme;
2. Raw Material Supply Scheme;

Under the above schemes, financial assistance is provided to the eligible handloom agencies/weavers for raw materials, common  infrastructure development, marketing of handloom products in domestic/overseas markets, Weaver MUDRA Loans etc.

Prices of handloom are market driven, and therefore price fluctuations reflect in the profit margins of weavers. The Government endeavours to create an ecosystem of marketing platforms, domestic as well as  international,  physical  as  well  as  virtual  so  as  to  improve  the  outreach  and  enhance  saleability  of handloom products.

The  Govt.  also  endeavours  to  enhance  the  profit  margins  of  weavers  through  Raw  Material  Supply scheme,  by  providing  freight  reimbursement  on  transportation  of  all  types  of  yarn,  and  15%  price Subsidy on cotton hank yarn, domestic silk, woollen and linen yarn and blended yarn of natural fibres with quantity restrictions. This scheme also endeavours to set the benchmark price and quality of yarn in  the  open  market  so  that  prices  remain  within  reasonable  limits  and  consistent  supply  and  quality parameters are maintained in the market, thus helping to arrest profiteering by the intermediaries.

In addition to the above,

-  To  support  direct  product  selling  to  handloom  customers,  marketing  expos  and  events  are organised. This helps alleviate intermediaries, arrest price fluctuations due to the same and ensures remunerative prices to Handloom weavers.  Also, price subsidy of 15% is provided on certain types of yarns, bringing down input cost for the weavers.
-  Under Weaver MUDRA/Concessional Credit Scheme, margin money assistance at 20% of the loan amount subject to a maximum of Rs. 25,000/- for individual weaver/Weaver Entrepreneur and Rs. 20  lakh  for  Handloom  Organizations,  interest  subvention  upto  7%  and  credit  guarantee  fees  on loans for a period of three years are provided.
-  Steps have been taken to on-board weavers and artisans on Government e-Market (GeM) place to enable them sell their products directly to various Government Departments and organizations. So far about 1.5 lakh weavers have been on-boarded on the GeM portal.
-  Weavers  are  facilitated  to  sell  their  products  online  and  23  e-commerce  platforms  have  been associated by Ministry of Textiles under a policy framework.
-  For  export  promotion  of  handloom  products,  Handloom  Export  Promotion  Council  has  been organizing International Fairs. During  the year 2021-22, various international marketing fairs/events have been organised.
-  To  enhance  productivity,  marketing  capabilities  and  ensure  better  incomes,  135  Handloom Producer companies have been formed in different States.
-  'India Handloom' brand (IHB) has been launched for branding of high quality handloom products. The main objective of IHB is to promote production of niche handloom products with high quality, authentic designs with zero defects, and zero effect on environment.
-  Design  Resource  Centres  have  been  set  up  in  Weavers'  Service  Centres  at  Delhi,  Mumbai, Varanasi,  Ahmedabad,  Jaipur,  Bhubaneswar,  Guwahati  and  Kancheepuram  to  build  and  create design-oriented excellence in the Handloom Sector and to facilitate weavers, exporters, manufacturers  and  designers  access  design  repositories  for  sample/product  improvisation  and development.

The scheme-wise and year-wise funds allocated/utilized during the last five years including the current year in Handloom Sector is as below:

| Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   | Scheme-wise and year-wise funds allocated/utilized during the last five years including current year   |
|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        | (Rs. in Crores)                                                                                        |
| Sl. No.                                                                                                | Name of Schemes                                                                                        | 2017-18                                                                                                | 2017-18                                                                                                | 2018-19                                                                                                | 2018-19                                                                                                | 2019-20                                                                                                | 2019-20                                                                                                | 2020-21                                                                                                | 2020-21                                                                                                | 2021-22 (upto 22.03.2022)                                                                              | 2021-22 (upto 22.03.2022)                                                                              |
|                                                                                                        |                                                                                                        | Allocated                                                                                              | Utilised*                                                                                              | Allocated                                                                                              | Utilised*                                                                                              | Allocated                                                                                              | Utilised*                                                                                              | Allocated                                                                                              | Utilised*                                                                                              | Allocated                                                                                              | Utilised*                                                                                              |
| 1                                                                                                      | National Handloom Development Programme (Revenue)                                                      | 184.74                                                                                                 | 182.87                                                                                                 | 142.08                                                                                                 | 113.82                                                                                                 | 166.71                                                                                                 | 149.14                                                                                                 | 161.49                                                                                                 | 159.53                                                                                                 | 165.50                                                                                                 | 152.48                                                                                                 |
| 2                                                                                                      | Raw Material Supply Scheme                                                                             | 200                                                                                                    | 199.84                                                                                                 | 155.41                                                                                                 | 126.84                                                                                                 | 165.21                                                                                                 | 142.21                                                                                                 | 70.00                                                                                                  | 60.32                                                                                                  | 105.00                                                                                                 | 86.34                                                                                                  |
| Total                                                                                                  | Total                                                                                                  | 384.74                                                                                                 | 382.71                                                                                                 | 297.49                                                                                                 | 240.66                                                                                                 | 331.92                                                                                                 | 291.35                                                                                                 | 231.49                                                                                                 | 219.85                                                                                                 | 270.50                                                                                                 | 238.82                                                                                                 |