Lok Sabha Question No. 330 (UNSTARRED), answered on 2025-07-22
Subject: Challenges faced by Handloom Industry
Ministry: TEXTILES
Asked by: Shri K Sudhakaran

## CHALLENGES FACED BY HANDLOOM INDUSTRY

## 330. SHRI K SUDHAKARAN:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a) whether the Government is aware of the severe challenges faced by the handloom industry in Kannur, Kerala,  including  GST  and  income  tax  burdens,  rising  yarn  costs,  competition  from  powerlooms, declining weaver participation, inadequate marketing and financial crises in cooperative societies;

(b)  the  steps  taken  to  review  and  reduce  GST  rates  (5-35%)  and  income  tax  (30%)  on  handloom cooperative societies to enhance their financial stability and competitiveness;

(c) the measures implemented under the Raw Material Supply Scheme (RMSS) and National Handloom Development Programme (NHDP) to address yarn cost increases and supply chain issues for Kannur's weavers; and

(d)  the  details  of  central  funding  allocated  for  skill  development  at  the  Indian  Institute  of  Handloom Technology (IIHT) Kannur, digital marketing initiatives and revival of cooperative societies to sustain Kannur's handloom industry and its export potential?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्री गिररराज स ंह )

## MINISTER OF TEXTILES (SHRI GIRIRAJ SINGH)

(a) to (c): Ministry  of  Textiles  is  implementing  central  sector  schemes  such  as  (i)  National Handloom Development Programme (NHDP) and (ii) Raw Material Supply Scheme (RMSS) to promote handlooms and for welfare of handloom weavers across the country including Kannur, Kerala. Under these schemes, financial assistance is provided to eligible handloom agencies/weavers for raw materials, procurement of upgraded looms & accessories, solar lighting units, construction of workshed, skilling, product  &  design  development,  technical  and  common  infrastructure,  marketing,  concessional  loans under weavers' MUDRA scheme, social security, payment to awardee weavers in indigent circumstances etc.

GST  rates  are  prescribed  on  the  recommendations  of  GST  Council,  which  is  a  constitutional  body comprising of representatives from States/UTs & Centre. Handmade textile products mostly attract GST rate of 5%. Regarding income tax burden/reduction in income tax on handloom cooperative societies is concerned, no such demand has been received in this Ministry.

Further, to address the issues of yarn cost increase and supply chain under RMSS, Ministry of Textiles is supplying  yarn  to  handlooms  weavers  under  price  subsidy  and  transport  subsidy  components  through National Handloom Development Corporation Ltd., (NHDC) as Implementing Agency (IA).

(d): IIHT, Kannur is an institution under the administrative control of State Government of Kerala. However,  Ministry  of  Textiles  is  implementing  SAMARTH  (Scheme  for  capacity  building  in  textile sector) with the objective to provide skilling programme on PAN India basis, including Kerala, without any State-wise fund allocation. Under  the SAMARTH  scheme,  as  on  17.07.2025,  a  total of 1,724 beneficiaries have been trained (passed) in Kerala state including Kannur district.

For digital marketing of handloom products, an e-commerce portal (Indiahandmade.com) was launched on 22 nd April 2023 to facilitate weavers and artisans across India to sell their products, without involving any intermediaries.

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