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Link between Cluster and Self-Help Groups in the Handloom Sector: A study of the Thiruvananthapuram Cluster
Thesis
Submitted in the partial fulfillment of the requirement
For the award of the degree of
Master of Arts
In
Applied Economics
By
NEETU NAIR
Under the Guidance of
Prof. D. Rajasenan
Department of Applied Economics
Cochin University of Science and Technology
May 2011
CERTIFICATE
This is to certify that the project “Link between Cluster and Self-Help Groups in the
Handloom Sector: A study of the Thiruvananthapuram Cluster” is the record of the project
work done by NEETU NAIR, a full time MA Applied Economics student in the Department of
Applied Economics, Cochin University of Science & Technology, during the period of her study
in the academic year 2010-2011.
The subject on which the project has been prepared is her original work and it has not previously
formed the basis for the award to any candidate of any degree, diploma, associate ship,
fellowship or other similar titles.
The project represents an entirely independent work on the part of the candidate, but for the
guidance given by me.
Place: Cochin
Date: Dr. D. Rajasenan
DECLARATION
I, NEETU NAIR, hereby declare that the project “Link between Cluster and Self-Help
Groups in the Handloom Sector: A study of the Thiruvananthapuram Cluster”, submitted
by me in partial fulfillment of the requirements for the Masters Degree in Applied Economics is
the record of the project work done by me during the academic year 2010-2011 and that, this
project has not previously formed the basis for the award to any candidate of any degree,
diploma, associateship, fellowship or other similar titles.
Place: Kochi
Date: NEETU NAIR
ACKNOWLEDGEMENT
I am very grateful to Dr.D.Rajasenan, my research guide for his invaluable guidance and
supervision. At every stage of this work, his discerning comments and constructive suggestions
were of valuable help in finalising this study.
I am also grateful to Dr.M.MeeraBai, Head Of the Department, Applied Economics,
Cochin University of Science And Technology for providing me the opportunity to undertake
the study.
I am also thankful to Shri.P.S.Mani, Cluster Development Executive of the Trivandrum
Handloom Cluster, who was very helpful in providing ample data required for the study. I would
also like to acknowledge the co operation of the SHG members, in providing primary data
without which the study would have been impossible.
I am deeply indebted to my parents, brother and friends whose absolute love, constant
support, encouragement and healthy criticisms, has made it all possible and worthy.
Finally I profusely thank God Almighty, Who promises to be there with me throughout my
life, to ferry me across the stormiest of seas.
NEETU NAIR
Cochin University of Science and Technology
May 2011
CONTENTS
Chapters
List of Figures
List of Tables
CHAPTERS
PAGE
1. INTRODUCTION
2. PROBLEMS OF HANDLOOM SHGs
3. SOCIO-ECONOMIC ASPECTS OF WEAVERS IN HANDLOOM SHGs
4. CONCLUSION AND RECCOMENDATION
REFERENCES
APPENDIX 1
APPENDIX 2
LIST OF FIGURES
Figure 1.1:Region wise production of Handloom cloths in Cooperative Sector
Figure 3.1:Age group of weavers
Figure 3.2: Caste Composition of Weavers
Figure 3.3: Marital Status
Figure 3.4: Educational Status
Figure 3.6: Family Size
Figure 3.7: APL/ BPL Status
Figure 3.8: Average Monthly Family Income
Figure 3.9: Average Monthly Family Expenditure
Figure 3.12: Employment Status of Weavers
Figure 3.13: Occupational Background
Figure 3.15: Type of Unit
Figure 3.16: No: of Looms
Figure 3.17: Ownership of Loom
LIST OF TABLES
Table 1.1: Clusters approved by Government of India in Kerala
Table 1.2: List of SHGs under Trivandrum Handloom Cluster
Table 1.3: District wise Classification of Handlooms as per Census 1995-96
Table 1.4: Production and Productivity under Handloom Industry in Kerala 2008-09 to 2009-10
Table 3.1: Age Group of Weavers
Table 3.2: Caste Composition of Weavers
Table 3.3: Marital Status
Table 3.4: Educational Status
Table 3.6: Family Size
Table 3.7: APL/BPL Status
Table 3.8: Average Monthly Family Income
Table 3.9: Monthly Family Expenditure
Table 3.15: Type of Unit
Table 3.16: No: of Looms
CHAPTER-I
INTRODUCTION
1.1 Handloom sector in Kerala
The Indian textile industry occupies an important and unique place in the economy of the
country by virtue of its contributions to the industrial output, employment generation and foreign
exchange earnings. Handloom Industry is a major traditional industry of Kerala and this sector
stands second to the coir sector in providing employment to about 1 lakh persons. Handloom
industry in the State is mainly concentrated in Thiruvananthapuram and Kannur districts and in
some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod districts.
Kerala, known as ‘Gods own country’ has its own textile tradition. Kerala Kasavu Sarees, which
are symbolic of Kerala culture and tradition are praised by women all over India. Two piece
clothes ‘settu mundu’ also known as ‘mundum neriyathum’ is the traditional dress of women in
Kerala, with natural body colour and colourful border shades. Men in Kerala wear Kasavumundu
or dhothies during festival and worship occasions. Kerala is also known for its unbleached cotton
handloom crepe popularly known as ‘Kora’ cloth which has entered the foreign markets and
occupy a proud place in garment Industry.
The Handloom industry in Kerala is dominated by co-operative sector with 94 percent looms and
remaining 6 percent of handloom units owned by industrial entrepreneurs. The co-operative
sector consists both factory and cottage type societies. The largest number of co-operative
societies is in Thiruvananthapuram district, which accounts 53 percent of the total, and the
lowest in Wayanad and Pathanamthitta districts.Calicoes of Calicut, crepe clothes in Kannur
district etc. are some of the traditional Kerala handloom textiles known for their excellence of
texture, colour and beauty were ruling the world markets. Fabrics like
‘Kattimundu’,’Kasavumundu’,’Kasavunariathu’ etc are some of the names with which everyone
is familiar with and which represents a few of the many rich traditional varieties for which
Kerala has been famous for years.
The major products in handloom sector of the State are dhothies, furnishing material, bedsheets,
grey sarees and lungi, which accounts 67 percent of the total production in the industry. About
80.13 percent of the major handloom cloths are produced in the Southern region of the State
followed by the North (12 percent) and Central region (7.87 percent)as given in Figure1.1. The
handloom weavers of Balaramapuram in Thiruvananthapuram district, a most historically
important place for Handloom fabric, use original type throw-shuttle pit looms and produce
Mundu/dhothies, Earezhathorthu, and Melmundu besides sarees.
Fig 1.1: Region wise production of Handloom cloths in Cooperative Sector
Northern region12%
Central region7.87%
Southern region
80.13%
Source: Economic Review of Kerala, 2010
1.2 Handloom Clusters in Kerala
Handloom cluster may be defined as a place where there is a large concentration of handlooms
producing fabrics of niche varieties on Handlooms which are in demand in the market. It is
during the 10th Five Year Plan that the handloom industry was reorganized under cluster
schemes. The Government of India had sponsored some schemes in this regard. They are 1)
Integrated Handloom Cluster Development Scheme, by the Ministry of Textiles, and 2) a special
scheme under the Swarnajayanthi Gram Swarozgar Yojana (SGSY),by the Ministry of Rural
Development.
IHCDS : Govt. of India had identified 20 handloom clusters of India wherein a large number of
handloom are located. In Kerala, there was also found a concentration of handlooms in the taluk
of Neyyattinkara. As such, this location was identified as a handloom cluster in India, namely
Trivandrum Handloom Cluster. The financial assistance by the Govt. of India to each cluster is
Rs.2 crores.
SGSY: Under the SGSY scheme, 2 projects for the handloom sector of Kerala was approved by
the Ministry of Rural Development.The projects were “Thanima” covering 3000 weavers in
Trivandrum district, and “Krithika” which covers 2500 weavers in Kannur district.
Cluster based approach during the 11 th Five Year Plan: The IHCDS along with some other
centrally sponsored schemes was reformulatedin the 11th Plan in the name of Integrated
Handloom Development Scheme (IHDS). [See Table 1.1]
Table 1.1: Clusters approved by Government of India in Kerala
Sl
no.
Name of the Cluster District Implementing Agency
1 Trivandrum Handloom
Cluster
Trivandrum HANVEEV
2 Chendamangalam
Cluster
Ernakulam HANTEX
3 Kuthampully Cluster Palakkad HANTEX
4 Vadakara Cluster Kozhikode District Industrial
Centre,Kozhikode
5 Payyannur Cluster Kannur Weavers Service Centre
6 Icon Cluster Kannur Irinava Handloom
Consortium
7 Kozhikode Cluster Kozhikode HANTEX
8 Palakkad Cluster Palakkad HANVEEV
9 Chathannoor Cluster Kolllam HANVEEV
10 Oorotambalam Cluster Trivandrum HANTEX
11 Thettivila Cluster Trivandrum HANTEX
12 Bhagavathynada
Cluster
Trivandrum HANTEX
13 Nedumangad Cluster Trivandrum HANTEX
14 Travancore Cluster Trivandrum HANVEEV
15 Neyyattinkara Cluster Trivandrum Consortex
16 Naveena Cluster Trivandrum Consortex
17 Swadesi Cluster Trivandrum Consortex
18 Kozhode Cluster Trivandrum Consortex
19 Ramapuram Trivandrum Consortex
20 Chirakkal Cluster Kannur Kannur Handloom
Cooperative Societies
consortium
21 Morazha Cluster Kannur Morazha weavers Industrial
cooperative Society
22 Kalliassery Cluster Kannur Kalliassery Weavers
Industrial Cooperative
Society
23 Elappully Cluster Palakkad Elappully Handloom
weavers Cooperative
Society
Source: Directorate of Handloom and Textiles, Tvpm
Out of the above, all the clusters other than Trivandrum Handloom cluster are mini-clusters of
300-500 looms, whereas the former covers around 1347 looms.
1.3 Self-Help Groups in Handloom Sector
Self-Help Groups (SHGs) in Kerala have made significant strides in poverty eradication and
women empowerment programmes. One of the objectives of SHGs is to build self-help
capabilities of the rural poor. SHGs assist weavers in becoming independent producers of
handloomed products. They assist weavers in purchasing material supplies, weaving accessories
and equipment. They also act as a safety net for participants who may borrow for urgent
consumption needs. Through these SHGs weavers are able to break their exploitative
arrangements with master weavers and to end cycles of debt. SHGs also act as semi-autonomous
savings and credit organizations that also function as a support network to address weaving and
social issues. Income generating activities are promoted either as a group or as individuals by
providing micro credit and also technical guidance thereby bringing the poor families above the
poverty line. Many of the SHGs are promoting direct marketing of goods as part of its income
generating activity. Marketing of handloom products is one of the areas where the SHGs could
be entrusted.
There are 97 SHGs under the Trivandrum Handloom Cluster, as shown in Table 1.2 below.
Table 1.2: List of SHGs under Trivandrum Handloom Cluster
Sl
no.
Name of SHG Gramapanchayat Municipality
1 Deepam Perungadavila --
2 Asraya Perungadavila --
3 Matruka Perungadavila --
4 Sneha Perungadavila --
5 Anaswara Perungadavila --
6 Netaji Perungadavila --
7 Mahatma-1 Perungadavila --
8 Mahatma-2 Perungadavila --
9 Kripa Perungadavila -
10 Amritha Perungadavila --
11 Sree Neelakeshi Perungadavila --
12 Sreebadra Perungadavila --
13 Vishnu Perungadavila --
14 Sivasakthi Perungadavila --
15 Sivabhagavathi Perungadavila --
16 Neelakeshi Perungadavila -
17 Sruthi Perungadavila --
18 Akshara Perungadavila --
19 Durga Perungadavila --
20 Daya Perungadavila --
21 Pulari Perungadavila --
22 keerthana Perungadavila --
23 Guru Perungadavila --
24 Karthika Perungadavila --
25 Kripa Perungadavila --
26 Avani Perungadavila -
27 Yamuna Kollayi --
28 Haritha Kollayi --
29 Pulari Kollayi --
30 Sneha Kollayi --
31 Nandhanam Kollayi --
32 Sakthi Kollayi --
33 Anugraha Kollayi --
34 Aparna Kollayi --
35 Udaya Kollayi --
36 Pulari Kollayi --
37 Shantham Kollayi --
38 Samrudhi Kollayi --
39 Karuna Kollayi --
40 Nethaji Kollayi --
41 Aiswarya Kollayi --
42 Mahatma Kollayi --
43 Anaswara Kollayi --
44 Sanghamithra Kollayi --
45 Malu Kollayi --
46 Shreyas Kollayi --
47 Sneha Kollayi --
48 Sivasakthi Kollayi --
49 Gurukripa Kollayi --
50 Dhanalaksmi Kollayi -
51 Vinayaka Kollayi --
52 Saraswathi Kollayi --
53 Souhrida Kollayi --
54 Souparnika Kollayi --
55 Deepam Kollayi --
56 Anugraha Kollayi --
57 Karuna Kollayi --
58 Haritha Kollayi --
59 Pranavam - -=
60 Thiruvonam - Neyyatinkara
61 Prathyasa - Neyyatinkara
62 Kairali - Neyyatinkara
63 Thiruvathira - Neyyatinkara
64 Sastha - Neyyatinkara
65 Guruji - Neyyatinkara
66 Mahatma Amboori --
67 Karunya Ottashekharamangalam --
68 Kalivilakam Ottashekharamangalam --
69 Aruvikuzhi Ottashekharamangalam --
70 Kairali Ottashekharamangalam --
71 Jyothi Kunnathukal --
72 Kavyasree Kunnathukal --
73 Karthika Kunnathukal --
74 Karunya Kunnathukal --
75 Sreelekshmi Kunnathukal --
76 \Amrutha Kunnathukal --
77 Mahatma Kunnathukal --
78 Sneha Kunnathukal --
79 Mathruka Kunnathukal --
80 Chathayam Kunnathukal --
81 Shilpa Kunnathukal --
82 Mahatmaji Kunnathukal --
83 Karunya Chenkkal --
84 Vandana Chenkkal --
85 Lakshmi Chenkkal --
86 Ushus Chenkkal --
87 Niya Chenkkal --
88 Anaswara Chenkkal --
89 Soubhagya Chenkkal --
90 Krishna Chenkkal --
91 Haritha Aaryankod --
92 Krishna Aaryankod --
93 Aaradhana Aaryankod --
94 Shilpa Vellarada --
95 Aishwarya Vellarada --
96 Vellarada Vellarada --
97 Karunya Vellarada --
Source: Directorate of Handloom and Textiles, Tvpm
1.4 Handloom Production and Productivity in Kerala
Table 1.3: District wise Classification of Handlooms as per Census 1995-96
No. of
Looms
Up to 1000 1000-5000 5,000 -
10,000
10,000-25,000
1 2 3 4
Wayanad Kasargod Palakkad Kannur
Malappura
m
Alappuzha Thiruvanantha
puram
Idukki Thrissur
Kottayam Ernakulam
Pathanamth
itta
Kozhikode
Kollam
5 6 1 2
Source: Directorate of Handloom and Textiles, Tvpm
As shown in the Table 1.2, handloom production in Kerala takes part mainly in Kannur and
Trivandrum, both having around 10000-25000 looms, followed by Palakkad with 5000-10000
looms, Kasargod, Alappuzha, Thrissur, Ernakulam, Kozhikode and Kollam each having 1000-
5000 looms, and the lowest production takes place in the districts of Wayanad, Malappuram,
Idukki, Kottayam and Pathanamthitta with less than 1000 looms each.
The handloom industry stands second to the coir industry in providing employment among the
traditional industries of the state. About 42 per cent of the looms in the State are in
Balaramapuram. But, 90 per cent of handloom exports are from Kannur and Kozhikode districts.
Of the total number of 50200 looms in the State, the share of Kannur District is around 11000.
There are 73-registered co-operative weavers' societies and 79 private handloom units in Kannur
and most part of these units are engaged in the production of export variety items.
Of the total production, 96.15 percent is contributed by the co-operative sector and the balance of
3.8 percent is by the units in the entrepreneurial sector as given in the table 1.3.
Table 1.4: Production and Productivity under Handloom Industry in Kerala 2008-09 to 2009-10
Sl.No Item 2008-09 2009-10
1 2 3 4
1 Co-operative Sector
i
Number of looms
38866 35293
ii Production of Handloom cloth (M.M) 18.92 22.67
iii
Value of Production (` crores)139.48 156.41
iv Productivity (M/L/A) 486.8 642.23
v No. of weavers 65444 55923
vi Employment generated (man days in lakhs) 61.47 89.87
vii No. of women employed 23923 23021
2 Corporate /unorganised/private sector
i Number of looms 6500 6500
ii Production of Handloom cloth (M.M) 1.28 1.28
iii Value of production (`. crores) 6.90 8.92
iv Productivity (M/L/A) 196.92 197.08
v No. of weavers 1824 1830
vi Employment generated (man days in Lakhs) 5.47 5.49
vii No. of women employed 950 962
3 Total: Co-operative, corporate and unorganised
sector
I Number of looms 45366 41793
Ii Production of Handloom cloth (M.M) 20.2 23.95
iii Value of Production (` crores) 146.38 165.33
iv Productivity (M/L/A) 445.27 839.31
V No. of weavers 67268 57753
vi Employment generated (man days in Lakhs) 66.94 95.36
vii No. of women employed 24873 23983
4 Assistance extended by way of loan and grant for
the
development of handloom industry (` lakh)
A Loan
I State Government 1011.96 625.00
Ii Central Government
iii N.C.D.C, NABARD,HUDCO
Total (a) 1011.96 625
B Grant
I State Government 1787.45 1910.16
Ii Central Government 582.64
iii N.C.D.C, NABARD,HUDCO
C Amount spent as Rebate on the sale of Handloom
cloth:
I State Government 1128.82 484.00
Ii Central Government (MDA-50% CSS) 1047.11
Total (c) 2175.93 484.00
5 Value of unsold stock (crores)
a In the Co-operative Sector 87.55 13.19
b In the Corporate Sector 12.91
c Unorganised/ private sector
6 Number of Co-operative Societies
a: Factory type
1 Working 110 106
2 Dormant 35 38
3 under liquidation 1 5
4 Not started working 4 1
Total (a) 150 150
B Cottage type:
1 Working 368 344
2 Dormant 95 118
3 Under liquidation 52 53
4 Not started working 11 11
Total (b) 526 526
Total 6 (a+b) 676 676
Source: Directorate of Handlooms & Textiles, Tvpm, (2010)
1.5 Handloom industry in Trivandrum
The handloom industry in Kerala is mainly concentrated in Thiruvananthapuram in South and
Kannur in the North. Though, Thiruvananthapuram has the largest number of cooperatives, 356
out of the 676 co-operative societies, weaver activists point out that more than 250 of them are
bogus. Even though officially it might appear to have organized, surveys show that majority of
the weavers are independent or are working for the master weavers as wage earners. While in
Kannur the production takes place mainly for the purpose of export and therefore the products
produced are export quality furnishing materials, handloom sector in Thiruvananthapuram
mainly concentrate on the production of traditional items such as set-mundu, thorthus, kavani, set
sarees, dhotis, and so on. While in North Kerala, the production was more centralized with the
well functioning of cooperatives; it was more decentralized in the Southern region.
Balaramapuram in Thiruvananthapuram district of Kerala, bordering Kanyakumari district of
Tamil Nadu is one of the oldest handloom centres in the State. The largest concentration of the
handlooms in the district is in this area. Kerala's famous 'Balaramapuram Handloom Sarees' has
got the Intellectual Property Rights (IPR) protection through Geographical Indications Act (GI
Act). The IPR protection, available for the next 10-years, was valid from January 19, 2010.
1.6 Trivandrum Handloom Cluster
Under the Integrated Handloom Cluster Development Scheme (IHCDS) which aims at
sustainable development of the weavers and equipping them to tackle the challenges of the
global market, Govt. of India had identified 20 handloom clusters of India wherein a large
number of handlooms are located. In Kerala also, there seems to be a concentration of
handlooms in the taluk of Neyyattinkara in Trivandrum . As such, this location was identified as
a handloom cluster in India, namely Trivandrum Handloom Cluster.
Thiruvananthapuram District is having 356 registered co-operative societies with 21687
looms and 45598 weavers. Out of this the proposed Integrated Handloom Development
Cluster (IHDC-T) at Thiruvananthapuram covers around 5000 weavers over a period of
4 years from 2006, with a vision to realize at least 75 percent utilization of loom
capacity and thereby increase its turnover by three times to Rs.30/- crores by 2010.
A sum of Rs.21.25 lakh was sanctioned for 2006-07, Rs.67.45 lakh for 2007-08, Rs.29.05 lakh
for 2008-09, 45.10 lakh for 2009-10 and 6 lakh for 2010-11. Some of the major achievements of
the programme include setting up of a thread bank at Balaramapuram, distribution of weaving
implements at 75 per cent subsidy, production of value-added products, conducting exhibition-
cum-sale in Delhi, Mumbai and other major cities and formation of 97 handloom self-help
groups.
IHDC-T is supported by the Development Commissioner of Handlooms, Government
of India. The financial assistance for the cluster is Rs.200 lakh. The project is
implemented on cluster mode. The cluster development approach focuses on formation of
weavers’ groups as a visible entity so that the groups become self-sustainable. The cluster
based development strategy is widely believed to be successful in the capacity building,
co-ordinated and integrated approach for growth from the section of raw materials and
to merchandise of finished products.
As many as 5,000 weavers who were scattered in Parassala, Perumgadavila, Nemom,
Athiyanoor, Kazhakootam, Vamanapuram, Chirayinkeezh blocks were brought under one
umbrella and they have been working with renewed vigour under the programme. It will provide
sustained employment and income for the weavers.
Gezahegn et al (2010) examine the mechanism and performance of clustering based on a primary
survey of both urban and rural handloom weaver clusters in Ethiopia. The fact that cluster-based
handloom production survives even in remote rural areas illustrates its vitality in restricted
environments. The study shows that cluster activities can survive even in harsh environments with
no formal institutions and limited infrastructure. They conclude that clustered activities like
handloom weaving can serve as gateways to entrepreneurship and industrial development.
1.7 Literature Review
Ashis et al (2009) report on the cluster development programme of Shantipur handloom cluster
to formulate a sustainable business plan as well as marketing plan to assist the historic cluster to
compete in the ever challenging textile business. The report concludes that there is growing
opportunity for market diversification, product diversifications in exports and local markets etc
by adopting appropriate level of technology or contemporary methods thereby ensuring better
price realization of the produce, and inturn empowerment of the entire handloom weavers’
community of the cluster.
Asha (2003) points out the need for the expansion of domestic and international market for
Indian handloom products. She argues that, in the era of globalization when the market is
flooded with textiles from China and other countries, the regional specialization of handlooms, if
which the list is endless, can be used to provide a well-defined product identity. For this purpose,
the identities of handloom fabrics must be respected, protected, and reinforced.
Soundarapandian (2002) analyses the growth and prospects of handloom sector in India.
Inadequate financial support and lack of market orientation are considered the main reasons for
the failure of the cooperatives. He suggests that weavers be oriented towards the betterment of
their skills, knowledge and technology in order to ensure quality. He emphasizes that the Indian
handloom industry will have a great future if it gets well organised and is adaptable to change.
Sukumaran (2002) critically evaluates the prospects of achieving local economic development in
Kerala through growth and competitiveness of small firm clusters. He states that in Kerala, a
massive movement was recently launched towards decentralized planning with great success. He
concludes that if more policy making powers are transferred to the panchayats, probably they
could play an important role in fostering the rural clusters in Kerala that could substantially raise
output and employment. The immense potential of a cluster based strategy of industrialization
which is more appropriate for Kerala can then only be fully realized.
Seemanthini and Soumya (2001) provide detailed field level data regarding cotton handloom
weaving, and shows that the industry exhibits vitality in a number of places. A decline of
weaving in some areas due to a combination of circumstances is offset by a reorganization and
rejuvenation of the industry in other regions. The study suggest that by addressing the urgent
needs of the handloom industry through a holistic approach, substantial growth in both
employment and output can be achieved.
Rammohan (1999) focuses on the implications of technological backwardness in Kerala’s
industrial life marked with the use of low productive technologies. The study demonstrates that
though new technology is introduced in workers cooperatives, the involvement of workers in
decision-making is very little. He concludes that the ongoing technological change appears to be
less successful in increasing productivity and workers income.
Kannan (1998) states that in the handloom weaving industry, absence of modernisation
(including technological changes) in the Schumpetarian sense, led to the decline of the industry
in Kerala. This was despite the demonstrated ability of the workers to innovate products and
capture foreign markets for a short span of time. The failure of labour unions to agree to
productivity improvements through technological changes and increasingly resorting to 'closed
shop' strategies has been particularly emphasized in this respect.
The role of cooperatives for the development of technology in the weaving clusters is examined
by Biswas (1998). He points out that though weaving cooperatives provided the stimulus for
technological development by developing new designs and looms, they failed to make further
advancement through the externalities created by them in the subsequent period. As a result,
private artisans and master traders benefitted from the technological improvements.
Mridul (1991) conducts an enquiry into the functioning of Hantex, a state sponsored cooperative
society. In the study, she briefly describes the state of the handloom industry in Kerala, in
particular the growth of the cooperative sector. She emphasizes on product diversification and
product design as important elements for the development of the industry
Sahadevan (1989) focuses attention on various problems and prospects of the handloom industry
in Kerala with special reference to marketing problem. He finds that compared to other States’
handloom products, the Kerala handloom fabrics are qualitatively better. However, proper
organizational and managerial inadequacies make the industry and its products less competitive.
He concludes that there is a good prospect for this age-old traditional industry if proper attention
is paid to it.
Studies on handloom cooperatives in Kerala [Krishnankutty-(1985); Rajgopalan (1986); Manuel
(1987); Tony (1988); Raghavan(1995)] primarily concentrates on the nature of handloom
cooperatives in Kannur and Thiruvananthapuram and the differences involved in the
organizations of production, marketing, structural differences of cost and profit between South
and North Kerala. Rajagopalan’s study (1986) highlights the fact that cooperatives in Kannur are
more organized than that in Thiruvananthapuram and when the former depends on foreign
markets, the latter depends on local market.
Rejuladevi (1983) suggest the government take care of the handloom industry by allocating huge
resources for the development of the industry. Socio- economic position of the majority of
weavers is not in a better position and the weavers are trying to give up their profession and go to
alternative works.
Rao (1979) points out the declining employment opportunities in the handloom industry. The
weavers try to change their profession and to got to alternative jobs. Because of inadequate
financial support from government, the weavers are facing the problem of hike in raw material
cost, scarcity of necessary inputs, lack of proper production, marketing and financial facilities.
1.8 Objectives of Study
To evaluate the present socio economic status of the H/L weaver in the SHGs.
Identify the problems being faced by the SHGs in the cluster in terms of:
Skill development
Technology
Raw materials
Marketing
Finance
1.9 Methodology
The study uses both primary and secondary data. The secondary data have been collected from:
The Directorate of Handloom and Textiles, Tvm;
HANVEEV, Regional office, Tvm;
Trivandrum Cluster Office, Tvm;
Centre for Development Studies, Tvm,
District Industrial Centre, Tvm; and
Kerala State Industrial Development Corporation Ltd.
For collecting the primary data, survey method is employed. 60 weavers working in the various
SHGs coming under the Trivandrum Cluster have been surveyed with the help of a pre-tested
questionnaire using random sampling method. To bring into focus the socio-economic issues
inter alia the problems faced by the SHGs, appropriate statistical techniques such as Percentage
analysis and Chi-square test have been employed.
1.10 Scheme of Study
Chapter I
Introduction (Handloom sector in Kerala) – Handloom clusters in Kerala – SHGs in Handloom
Sector – Handloom production in Kerala – Handloom industry in Thiruvananthapuram –
Trivandrum Handloom Cluster – Review of Literature -Objectives- Methodology – Scheme of
the study
Chapter II
Problem of the Handloom SHGs – Cluster as a solution in Handloom sector – Skill development
– Technological Advancement – Marketing issues – Finance – Raw material assistance –
Thiruvananthapuram Cluster-a SWOT framework.
Chapter III
Socio-economic aspects of the Handloom Weavers in SHGs
Chapter IV
Conclusion and Recommendations
Chapter II
Problems of the Handloom SHGS
Handloom SHGs are small groups of weavers residing in a particular locality, possessing the
core skill capability of producing handloom products individually or in groups and have started
business venture of their own with the support of the Government agencies. The Handloom
weavers in the SHGs in Trivandrum are highly skilled people for manufacturing world
renowned finer varieties of Sarees, Dhotis, Set mundus (Double dhoti with half saree)
etc. using warp and weft Design. Due to non availability of raw materials in time, and
unscientific method of marketing, the manufacturing of these products are slowly falling
and most weavers are going for easily available material for weaving which is similar to
the materials used in power loom products. Hence the products lose their uniqueness
and their demand goes down resulting in dumping which causes non rotation of money
for further purchase of raw material for production as well as their wages. Hence most
of the weavers are relinquishing this traditional sector. Especially Thiruvananthapuram
District at present, at the clutches and holds of the neighbouring states to meet their
yarn, dyeing, warping and sizing needs a exorbitant huge costs. Due to long distance
they are finding it very difficult to correlate with their dyers, warpers and sizers and
thereby considerable portion of their precious time has been wasted in so many
parameters. Also the state is losing the revenue.
Due to the cost of training which is on the higher side because of the cost of finer count
of yarn and zeri being wasted during the training period, there is a reluctance of the
master weaver to train the young weavers. Hence the new members are unable to be
introduced into the industry; and also comparing to other sectors, the wages will be very
poor.
The problems faced by the SHGs in handloom sector can be summarized as:
1. Limited financial strength hence limited borrowing capacity
2. Lack professionalism because the members are less qualified
3. They have a very simple technology, which fits well with their ecological surroundings and
conservative outlook.
4. Subsistence type of economy. Handloom weaving according to them is just an occupation to
sustain themselves and live on marginal economy.
5. Marketing of production poses a major challenge for the SHGs.
6. Absence of adequate linkages
7. Lack of cooperation from outsiders, presumably service providers, government functionaries,
etc.
8. Lack of confidence presumably in managing as well as organizing group activities
9. Lack of interest among some members regarding participating in meetings or other activities
of the groups.
These are issues that need to be confronted and tackled by SHGs and their service providers
Cluster as a solution in Handloom sector
Under the Integrated Handloom Cluster Development Scheme, the Trivandrum Handloom
Cluster adopts a focused yet flexible and holistic approach in the sector to facilitate handloom
weavers to meet the challenges of a globalised environment. Effort has been taken to empower
weavers to chart out a sustainable path for growth and diversification in line with the emerging
market trends. It attempts to facilitate the sustainable development of handloom weavers located
in SHGs into a cohesive, self managing and competitive socio-economic unit.
Cluster based approach will improve the working condition as well as their wages, in
order to overcome the present crisis of the sector. It has components to facilitate
bringing of new people in this sector, so that the crisis can be overcome and value added
products can be manufactured and weavers will be benefited more. The cluster based
development strategy is widely believed to be successful in the capacity building,
coordinated and integrated approach for growth from the section of raw materials and to
merchandise of finished products. Therefore, the weavers need not run helter-skelter to
procure their needs. The state economy will roll with in and the weavers will be
benefited by higher value added merchandise unlike the present situation of sacrificing
their life for the simple survival.
For improving the status of the SHGs, the strategic thrust of the cluster is on:-
1. Technological up-gradation
2. Enhancement of productivity
3. Quality consciousness
4. Strengthening of Raw material base
5. Product diversification
6. Increase in exports and innovative marketing strategies.
7. Financing arrangements
8. Maximizing employment opportunity
9. Integrated human resource development
With this aim, 97 SHGs were formed under the Trivandrum Cluster and the SHGs have opened
bank account. The scheme envisages skill up-gradation of the weaver through training; improve
productivity through modification/up-gradation of the existing looms, diversification of products
through design interventions, create necessary infrastructure for marketing of his products etc
and thereby lead to increase in the earnings of the weavers.
Assistance to SHGs is provided in a project mode for (i) supply of basic inputs (ii) conducting
training programme in weaving, dyeing, designing and managerial disciplines; and (iii)
construction of work shed.
The Cluster attempts to provide solutions to the problems of the handloom SHGs, through the
following activities emphasizing on skill development, technological advancement, marketing,
financial assistance, and raw material assistance.
Skill development
By attending the Handloom Cluster Expo at New Delhi, Ahmedabad, Chennai and Mumbai
Buyer seller Meet, weavers got chance to understand the market development, various
products & technique of weaving of other clusters.
62 paper designs developed; out of these 34 samples are developed.
Silk weaving training programmes conducted at Venganoor village of Integrated Handloom
Development Society with technical guidance of Weavers Service Centre, Hyderabad and
Kannur. Silk weaving introduced at Trivandrum Cluster. In two looms silk saree and one
loom silk shirting production stared
Orientation workshop on dyeing, printing conducted in Kollayil, Nemom and Kalamachal.
Weavers got training in natural colour dyeing, block printing, bathik Printing, stencil
printing.
Technological Advancement
An Exposure visit was conducted during February 2009 with the weavers of Trivandrum
cluster and the technical staff of the IA to Kanchipuram, Arani, Selam and Madurai to study
the technique of silk weaving.
Marketing issues
The CFC (Common Facility Centre) Building construction completed on land provided by
the Implementing Agency
A Grand Buyer seller Meet was conducted at Trivandrum during 28th and 29th November
2008.
Launched cotton readymade shirts “Royal Elegance” during 2009 Onam Festival season.
Product catalogue Volume I, II & III prepared.
As the part of Publicity a 30 seconds Add film 1st and 2nd prepared and telecasted in Asianet
and Kairali TV channels during Vishnu & Onam 2009 and Vishu 2010 festival season.
A Documentary Film of Trivandrum Cluster was prepared in the language Malayalam
(“Thanal Tharunna Kootaima”) and English (“Under the shade of Cluster” )
Finance
Workshop Modernization assistance to 250 weavers at Rs 4000/- 1st Installment paid to the
weavers. 2nd installment to be paid soon.
Loom Modernization assistance to 400 weavers at Rs 2250/- 1st installment paid to the
weavers. 2nd installment to be paid soon.
Weavers coming under Trivandrum Cluster were enrolled 251 members in the ICICI
Lombard Health Insurance scheme and 632 members in JBY Insurance scheme.
Raw Material Assistance
Yarn supplied worth Rs. 49.40 lakh at mill gate price.
Weaving accessories -700 sets issued to weavers at subsidy rate. Quality and the productivity
of products improved.
It is the first time that the street sizers at Balaramapuram got the sizing brushes and allied
equipments on free of cost through IHCD Project which results the improvement of sizing
quality. Distribution of street sizing equipments is in progress
Trivandrum Handloom Cluster- A SWOT Analysis
STRENGTH
Central assistance of Rs 2 crore released in annual installments to the Implementing Agency.
Impeccable reputation of quality and brand recall of Balaramapuram products and
good durability
Innovative and competitive products
Traditional industry - glorious past dating back to nearly 250 years
Situated 14 km away from Thiruvananthapuram, the capital city
Good rail and road transportation facilities
Proximity to International Airport and Sea Port at Vizhinjam
Proximity to International Tourism Centre – Kovalam and Kanyakumari and
increased tourist inflow
Skilled weavers
Well-known products
Committed personnel
Good production linkage with other societies and weavers
Varieties of looms like throw shuttle pitloom, fly shuttle pitloom, frame loom, etc.
WEAKNESS
Weak financial position of the weavers
Low turnover
Dependants on rebate sales - high
Lack of collective purchase of raw material
Shortage of working capital
Decreasing profit margins
Low volume of market
Low priced powerloom product from other state
Misuse of Balaramapuram brand by unknown societies.
Lack of market information
Absence of focus on brand building and
No targeting on Niche market
Weakening of the apex society viz. Hantex and Hanveev
High seasonality of business operations
High dependence on Government support
Inadequate attempt to value added product
Narrow product range
Lack of institutional support
Inadequate and irregular supply of quality raw materials, dyes and chemicals. This
results in loom remaining idle and the working capital getting blocked.
No product diversification
Lack of new designs for product development
Lack of pre-loom and post-loom processing facilities
High financial costs
Resistance to change - There is a general reluctance to change in better weaving
methods, design and raw materials
National level institutions in Textiles and fashion design do not have establishment
in this part of the state. For obtaining the service of technical institutions/agencies
like NID, NIFT, WSC, NCTD, IIHT, HEPC, the weavers are compelled to go to
faraway places and even to other state for meeting their production needs.
OPPORTUNITIES
Finance
Common financing to facilitate institutional finance scheme from IDBI, SIDBI
Common finance to facilitate common facility centre and common raw material
purchase.
Convergence of various micro and macro state/central government schemes
Market
Introducing new product with new design
Exclusive market specific products
Centre for common product display
Contemporary designs and products
Participation in National and International fairs
Increasing demand for traditional ethnic products
Improved market opportunities
Targeting Niche market
Burgeoning export market in addition to domestic markets
Potential buyer in untapped market
Renewed interest in cotton fabrics
Tourism linked marketing
Echo-friendly products developed using environmental friendly materials and dyes
Government purchases
Scope for propagation of brand name and increased sales
Production
R & D wing
Quality Testing Lab
Production of value added products
Common raw materials purchase consortium.
Reduce cost of production.
Market oriented production
Scope for production of new colour range as per the trends forecasts
Adequate training programme to increase production
Intervention among SMEs
Export Oriented production
THREATS
Finance
Bleak future for subsidies
Lack of assistance from Bank
Lack of trust among weavers
Lack of support development plan of SMES from Bank/Financial institution
Glorified price difference between Handloom and Powerloom products
Marketing
Open markets in the post WTO era
Stiff competition from powerloom products from outside states
Non exploration of New market
Fast changing taste and measures of fashion oriented consumer culture.
Stiff competition within and outside the cluster
Quality improvement
Lack of knowledge about emerging changes in the market, both domestic and
international
Production
Non up gradation of process Technology
Lack of professionalism
Fluctuation in raw material prices
Non availability of required quality, type of raw materials mainly yarn in time
Absence of quality dyers
Dwindling work force. The weavers do not promote the entry of next generation.
Low income resulting in movement of workers to other jobs
Decreasing productivity
Mass production at cheaper rates by power looms
Less product diversification
Increasing competition from power looms
Ever increasing price of yarn and raw materials
To conclude, the chapter explains the various problems faced by the handloom SHGs, like
limited financial strength, simple technology, marketing, absence of adequate linkages etc. and
shows how the Cluster attempts to provide solution to these issues through skill development,
financial assistance, raw material assistance, technological advancement, etc. It also provides a
SWOT analysis of the Trivandrum Handloom Cluster with particular emphasis on finance,
market and production.
CHAPTER-III
SOCIO-ECONOMIC ASPECTS OF WEAVERS IN HANDLOOM SHGs
This chapter consists of the analysis and interpretation of the primary data collected through
survey on the socio-economic conditions of the weavers in handloom SHGs within the Cluster.
Data was collected from 60 weavers belonging to 12 SHGs. Majority (88.3 percent) of the
respondents were females, males constituting just 11.7 percent.\
Figure 3.1:Age group of weavers
Below 3023%
30-5072%
above 505%
Source: Survey Data
From figure 3.1, it can be seen that majority (71.7 percent) of the weavers from the SHGs
belong to the middle age group of 30-50 years. 23.3 percent of them are aged below 30 years
and a minority of 5percent belongs to the Above 50 category.
Figure 3.2: Caste Composition of Weavers
EzhavaNadar HinduNadar ChristianNair HinduThandar Hindu
Source: Survey Data
Figure 3.2 shows that the majority of weavers who have joined the SHGs belong to the Nadar
Christian community constituting about 41.7 percent of the respondents, followed by Nair (25
percent), Ezhava (23.3 percent), Nadar Hindu (6.7 percent) and Thandar Hindu (3.3 percent)
communities respectively.
Figure 3.3: Marital Status
MarriedUnmarriedWidow/WidowerDivorced/Separated
Source: Survey Data
Figure 3.3 explains that 70 percent of the respondents are married, 10 percent are widow
widower (s), and 3.3 percent are divorced/separated. 16.7 percent of the weavers are unmarried.
Figure 3.4: Educational Status
No education Below SSLC SSLC Predegree/ plus two
Graduation0
5
10
15
20
25
30
35
40
Source: Survey Data
The figure 3,4 shows that of the 60 respondents, around 60 percent are educated below SSLC.
Only 26.6 percent have passed SSLC and a mere 5 percent have attained education up to pre
degree level. Among the respondents, only 1 graduate has taken up weaving as an occupation,
whereas 6.7 percent of them are illiterate.
Table 3.5: Type of House
Type of house No; of weavers Percentage of weavers (%)
Own
Rented
54
6
90
10
Total 60 100
Source: Survey Data
From the table it is clear that over 90 percent of the respondents stay in their own house, whereas
10 percent stay in rented house.
Figure 3.6: Family Size
1--4 5--7 8 or more0
5
10
15
20
25
30
35
40
45
Source: Survey Data
As shown in figure 3.6, 75 percent of the weavers had a family size of 1-4, and the rest 25
percent had a family size of 25 percent. None of the respondents had a family size more than 7.
Figure 3.7: APL/ BPL Status
APLBPL
Source: Survey Data
The figure 3.7, shows that majority (65 percent) of the weavers belonged to the BPL category,
with just 35 percent coming under the APL category.
Figure 3.8: Average Monthly Family Income
Upto 30003000-50005000-10000Above 10000
Source: Survey Report
The table 3.8 shows that 13.3 percent of the respondents’ family income per month is below
Rs.3000, 36.7 percent have an income between Rs.3000-5000, 50 percent between Rs.5000-
10000, and none above Rs.10000.
Figure 3.8: Average Monthly Family Income
Below 3000 3000-5000 5000-10000 Above 100000
5
10
15
20
25
30
35
Source: Survey Report
The figure 3.9 shows that majority (32) of the weavers spent between Rs.3000-5000 per month,
16 spent between Rs.5000-10000, 8 below Rs.3000 and 4 of them has a monthly expenditure
above Rs.10000.\
Table 3.10: Membership status in SHGs and the level of satisfaction
Membership
Job & Wage Satisfaction
Total
Job
satisfactory,
wage not
satisfactory
Wage
satisfactory,
Job not
satisfactory
Both
satisfactory
Both not
satisfactory
Full time
Part time
25
3
4
2
18
2
5
1
52
8
Total 28 6 20 6 60
Source: Survey Report
The table 3.10 shows the membership status of the weavers in the SHGs and their corresponding
job & wage satisfaction level. As shown in the table, 52 respondents are fulltime members of the
SHGs and the rest 8 were part time members of these SHGs. 28 of them reported that they found
the job satisfactory except for the wages, whereas 6 of them found the wage satisfactory though
they did not enjoy the job. 20 found both wage and job satisfactory, whereas the rest 6 were
completely dissatisfied with both job as well as wage.
An attempt is made to analyze if the membership status has any effect on the job and wage
satisfaction. For this purpose, Chi-square test has been employed with the following null
hypothesis at 5percent significance level.
Ho: Job and wage satisfaction of the weavers is independent of the membership status.
Table 3.10.1: Expected Frequencies:
Membership
Job & Wage Satisfaction
Total
Job
satisfactory,
wage not
satisfactory
Wage
satisfactory,
job not
satisfactory
Both
satisfactory
Both not
satisfactory
Full time
Part time
24
4
5
1
18
2
5
1
52
8
Total 28 6 20 6 60
Applying the test statistic, we derive, χ2 = 1.49 (approx) with 3 degrees of freedom. The value
of χ2 for 3 degree of freedom at 5% level of significance is 7.81. Since the calculated value of
χ2 is less than the tabulated value, we accept the null hypothesis and conclude that the job and
wage satisfaction of the weavers is independent of the membership status.
Table 3.11: Source of Raw materials & Difficulties in the procurement of raw materials
Source
Difficulties in the procurement of raw materials
Total
Financial
Constraints
Scarcity of
Raw materials Both None
From Open
Market
Cluster
Cooperative
Societies
5
5
3
1
3
15
4
1
8
13
2
29
25
6
Total 13 4 20 23 60
Source: Survey Report
The table 3.11 shows the weavers’ source of raw materials and difficulties (if any) faced by them
in the procurement of raw materials. As shown above 29 respondents procure the raw materials
from open market, 6 from co-operative societies. Of the total, 25 of them avail the Cluster
facilities as a source of raw materials.
13 of the 60 respondents reported financial constraints as an obstacle in the procurement of raw
materials, whereas 4 of them feels scarcity of raw materials obstructs their procurement of
necessary raw materials. A majority of 20 weavers agreed that both the factors were responsible
for difficulties in the raw material procurement. On the other hand 23 feel that there are no
difficulties in the procurement of raw materials.
In this study Chi-square test was employed to find out if the Cluster’s activities as a source of
raw materials have any effect in reducing the difficulties faced by weavers in the procurement of
raw materials. As such, the null hypothesis is:
Ho: Cluster as a source of raw material has no effect in reducing the difficulties in the
procurement of raw materials.
Table 3.11.1: Expected frequencies
Source
Difficulties in the procurement of raw materials
TotalFinancial
constraints
Scarcity of
Raw materials
Both None
From Open
Market
Cluster
Cooperative
Societies
6
5
2
2
2
-
10
8
2
11
10
2
29
25
6
Total 13 4 20 23 60
Applying the test statistic, we derive, χ2 = 8.3848 with 6 degrees of freedom. The value of χ2
for 6 degree of freedom at 5% level of significance is 12.59. Since the calculated value of χ2 is
less than the tabulated value, we accept the null hypothesis and conclude that the Cluster has no
effect in reducing the difficulties in the procurement of raw materials.
Table 3.12: Employment Status of the Weavers
Employment No: of Weavers Percentage of weavers (%)
Only Weaving
Primarily Weaving, Partly
Others
Primarily Others, partly
Weaving
50
Agriculture-6
Poultry Farming-2
Electrician-1
Tailor-1
-
83.33
16.67
-
Total 60 100
Figure 3.12: Employment Status of Weavers
Employment44
46
48
50
52
54
56
58
60
62
POPWPrimarilyWeaving, Part-lyOthers
Source: Survey Report
The table 3.12 and figure 3.12 shows the employment status of weavers. 50 respondents of the
survey reported weaving as their only employment. 10 of them took up weaving as their primary
occupation, though they were partly involved in other activities like agriculture (6), poultry
farming (2), electric work (1) and tailoring (1
Table 3.13: Occupational Background
Occupational Background No: of weavers Percentage of weavers (%)
Hereditary (weaving)
Non-hereditary
42
Agriculture-10
Business-1
Coolie- 7
70
30
Total 60 100
Figure 3.13: Occupational Background
HereditaryNon-hereditary
Source: Survey Report
As shown in Table 3.13, weaving is a hereditary occupation for 70 percent of the respondents,
whereas 30 percent of them come from other occupational backgrounds. Of them, 10 come from
agricultural background, 7 belong to coolie background, and 1 from business background.
Table 3.14: Place of Work & Mode of Marketing
Place of work
Mode of marketing
TotalThrough SHG Direct Sale Through
Master
Weaver
SHGs&
Direct sale
SHG sheds
Residence
41
7
-
12
-
-
-
-
41
19
Total 48 12 - - 60
Source: Survey Report
The table 3.14 shows both the place of work as well as the mode of marketing taken up by the
weavers. Out of the 60 weavers, 41 sit and work in the SHG sheds, whereas 19 work at their own
residence. 48 of them market their products through the SHG, and 12 do so through Direct Sale.
An attempt has been made to study if the place of work has any influence on the mode of
marketing of products using Chi-square test. The null hypothesis for the purpose is:
Ho: Mode of marketing is independent of the place of work.
Table 3.14.1: Expected frequencies
Place of work Mode of marketing
totalThrough SHG Direct Sale Through
Master
weaver
SHGs &
direct sale
SHG Sheds
Residence
33
15
8
4
-
-
-
-
41
19
Total 48 12 0 0 60
Applying the test statistic, we derive, χ2 =30.2060 with 3 degrees of freedom. The value of χ2
for 3 degree of freedom at 5% level of significance is 7.81. Since the calculated value is far
greater than the tabulated value, the null hypothesis stands rejected and it shall be concluded that,
the mode of marketing is dependent on the place of work. Thus, those who sit and work in the
SHGs mainly tends to sell their products through the SHGs, whereas the ones who sit and work
at home usually prefer to sell their products directly in the market.
Figure 3.15: Type of Unit
weaver household with loomNon-household unit
Source: Survey Report
The figure 3.15 shows that 68.3 percent of the weaving units were non-household units, the rest
31.7 percent being weaver households with loom.
Figure 3.16: No: of Looms
None1
23
4 >5
0
5
10
15
20
25
30
35
40
45
50
Source: Survey Report
The figure 3.16.shows that 47 of the 60 weavers have at least 1 loom, 12 of them have 2 looms,
and 1 of them reported to have 3 looms. None of them reported more than 3 looms and all the
weavers possess at least one loom.
Table 3.17: Ownership of Loom
Ownership No: of Weavers Percentage of weavers
Own loom
Own loom, accessory belongs
to master weaver
Owned by joint family
Owned by SHG
16
-
-
44
26.7
-
-
73.3
Total 60 100
Figure 3.17: Ownership of Loom
Own loomOwned by SHG
Source: Survey Report
As shown above in Table 3.17and Figure 3.17, 16 weavers own their looms, whereas the looms
of 44 weavers are owned by the SHGs. None of them reported to have procured loom accessories
from master weavers, or as possessing looms owned by joint family.
Thus the chapter analyses and interprets the primary data collected through survey on the socio-
economic conditions of the weavers in handloom SHGs within the Cluster.
CHAPTER –IV
CONCLUSION AND RECOMMENDATIONS
Findings
The Handloom Cluster in Thiruvanathapuram has helped for the formation of 97 SHGs
covering about 1347 weavers.
The cluster schemes in Kerala have been implemented in Self Help Groups taking into
account the member weavers as individuals, making the role of cooperative societies
irrelevant and insignificant.
The components of the scheme were strictly imposed in the Cluster without considering
the suitability and necessity of such schemes in the Self Help Groups.
The cluster schemes also could not consider the actual necessities of the beneficiaries.
The assistance provided for workshop and/or loom modernization is insufficient and
payments are delayed.
Though weavers coming under the Cluster were enrolled in Health insurance schemes
offering assistance up to Rs.10000 per year, none of them finds it useful as the insurance
facilities will be available only in specified private hospitals situated far away from
home; and since assistance will not be provided immediately upon requirement. Hence,
they prefer to go to government hospitals.
Though the Cluster initiates various training programmes and workshops, weavers in
SHGs are hardly interested to participate.
The Centrally sponsored scheme implemented through implementing agency sought no
opinion from the State level. This has obstructed the smooth implementation of the
project.
Cluster as a source of raw material does not have much effect in reducing the difficulties
of the SHGs in the procurement of raw materials.
Suggestions/Reccomendations
Cluster schemes must be shaped in order to cater to the needs of the weavers in SHGs.
The implementing agency should give due importance to the regional peculiarities while
implementing the schemes.
Proper awareness be given to the weavers regarding the benefits of the training
programmes and other schemes of the Cluster.
A visit by CDA to the SHGs once in 6 months be undertaken to ensure the smooth
functioning of SHGs and to take necessary steps for the same.
Financial incentives, equal to the day’s wage, be given to the participants of the training
programmes and workshops, so that they do not abstain from the same.
Subsidized raw materials should be made available through the Cluster so that financial
constraints do not pose a threat for raw material procurement.
State Government’s opinion be sought in the implementation of various schemes for its
smooth functioning.
Make provision for accident insurance inorder to cater for medical aid in case of
accidents while working.
Conclusion
The study was taken up with an aim to understand the link between clustering and Self Help
Groups; to understand the problems faced by SHGs within the cluster. It also tries to study the
present socio-economic status of weavers within handloom SHGs. Survey was undertaken to
study the socio-economic conditions of weavers. Due to time and cost constraints, only a small
sample of the population could be surveyed, the data generated provide a generalized picture of
the conditions of weavers within SHGs. From the study it could be seen that, though with
limitations, clustering provides handloom SHGs with assistance in terms of skill development,
raw material availability, marketing, technological upgradation and finance. It can be concluded
that if proper steps as suggested are taken up, SHGs have ample scope to progress under the fold
of the Cluster.
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10. Ramesh B. “ A Study of the Clustering of Paddy Processing Units in and around Kalady”,
Project no.289, Sree Sankara College, Kalady, 2003.
11. Ashis Mithra et al “A diagnostic report on cluster development programme of Shantipur
cluster, Nadia, West Bengal”, Indian Journal of Traditional Knowledge, Vol.8 (4), October
2009.
12. Gezahegn Ayele et al “Infrastructure and Cluster Development- A Case Study of Handloom
Weavers in Ethiopia”, IFPRI, May 2010.
13. Mridul Eapen “Consumption of Cotton Textiles: Certain Emerging Trends”, Centre for
Development Studies, August 1976.
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for Development Studies, October 1987.
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Board, 2010.
17. http:// www.sisikerala.org
18. http://www.indianhandloomscluster-dchl.net/
APPENDICES
APPENDIX-1
Table 3.1: Age Group of Weavers
Age No: of Weavers Percentage of Weavers (%)
Below 3030-50Above 50
14433
23.371.75
Total 60 100Source: Survey Data
Table 3.2: Caste Composition of Weavers
Caste No: of Weavers Percentage of Weavers (%)
EzhavaNadar HinduNadar ChristianNair HinduThandar Hindu
14425152
23.36.741.7253.3
Total 60 100Source: Survey Data
Table 3.3: Marital Status
Marital Status No:of Weavers Percentage of weavers(%)
MarriedUnmarriedWidow/WidowerDivorced/Separated
421062
7016.7103.3
Total 60 100Source: Survey Data
Table 3.4: Educational Status
Level of Education No: of weavers Percentage of Weavers (%)
No educationBelow SSLCSSLC+2/Pre degreeGraduation
4361631
6.76026.651.7
Total 60 100Source: Survey Data
Table 3.6: Family Size
No: of members in family No: of weavers Percentage of weavers1-45-78 or more
4515-
7525-
Total 60 100Source: Survey Data
Table 3.7: APL/BPL Status
APL/BPL No: of weavers Percentage of weavers (%)
APLBPL
2139
3565
Total 60 100 Source: Survey Data
Table 3.8: Average Monthly Family Income
INCOME NO: OF WEAVERS PERCENTAGE OF WEAVERS (%)
Up to 30003000-50005000-10000Above 10000
82230-
13.336.750-
Total 60 100Source: Survey Data
Table 3.9: Monthly Family Expenditure
Expenditure No: of Weavers Percentage of Weavers (%)
Below 30003000-50005000-10000Above 10000
832164
13.353.326.76.7
Total 60 100Souce: Survey Data
Table 3.15: Type of Unit
Type of Unit No: of weavers Percentage of weavers(%)
Weaver household with loomNon-household unit
19
41
31.7
68.3Total 60 100Source: Survey Data
Table 3.16: No: of Looms
No: of Looms No: of weavers Percentage of weavers (%)
None1234> 5
-47121--
-78.3201.7--
Total 60 100Source: Survey Dat
APPENDIX-2
QUESTIONNAIRE
LINK BETWEEN CLUSTERS AND SELF-HELP GROUPS IN THE HANDLOOM SECTOR: A STUDY OF THIRUVANANTHAPURAM
CLUSTER
A Survey on the Socio-Economic Conditions of Handloom Weavers
Name of the respondent :………………………
Membership no:……………………
Name of the Self Help Group:……………………………..
Taluk:………………..Panchayat:…………….Ward:………
Investigator (name and sign)
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1 2 3 4 5 6 7 8 9
Sl.No
Name of household members
Relation with respondent
Age Sex Religion &Caste
Marital status
Education
Activity status Job
Code 2Husband-1Father-2Mother-3Son-4Daughter-5
Code-4Male-1Female-2
code-8permanently employed-1temporarily employed-2unemployed-3student-4
Code-6Married-1Unmarried-2Widow/widower-3Divorced/separated-4
:
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11) Address:………………………………………………………..
……………………………………………………………………
12) Ownership of Residence: Own/ Rented
13) Nativity: Native residents/ Migrants
14) No: of dependents in the family:
15) Employment status of the respondent:
i. Only weaving ii. Primarily weaving, partly others(specify)
iii. Primarily others, partly weaving
16) Average monthly income:
i. From weavingii. From other sources
17) Occupational background of the respondent’s family:
i. Hereditary (weaving)ii. Agriculture
iii. Businessiv. Others …………..
18) Monthly expenditure of the respondent:
Item expenditure
i. Foodii. Health
iii. Educationiv. communicationv. alcohol &tobacco
vi. entertainmentvii. debt repayment
viii. others……………
Total
III. Membership of the Self-Help group
19) How long have you been a member of the SHG:
20) Are you a fulltime/ part time member of the SHG:
21) Do you receive training from SHGs:
22) Average no: of days worked during last month:
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23)Do you receive remuneration in piece rate or wage rate :
a. If piece rate, what is your earning per piece:b. If wage rate, wage per day:
24) Source of raw materials (hank yarn, dyes and chemicals)
i. from open marketii. from cluster
iii. from Master weaveriv. from others
25) Cost of raw material:
26) Do you face difficulty in the procurement of raw materials?
Yes/No
27) If yes, what do you think is the reason behind it:
i. Financial constraintsii. Scarcity of raw materials
iii. Competition from powerlooms
28) Price of finished goods:
29) Where do you sit and work:
i. SHG sheds ii. Household
30) Type of unit:
i. Weaver household with loomii. Weaver household without loom
iii. Non-household unit
31) No:of looms:
None 1 2 3 4 >5
32) Ownership of loom:
i. Own loomii. Own loom, accessory belongs to master weaver
iii. Owned by joint familyiv. Owned by SHG
33) Mode of marketing:
i. Through SHG
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ii. Direct saleiii. Through master weaveriv. SHG + direct salev. Others
34)Are you satisfied with the job and wage?
i. Job satisfactory, wage not satisfactoryii. Wage satisfactory, job not satisfactory
iii. Job and wage satisfactoryiv. Job and wage not satisfactory
35) Diseases suffered/suffering after engaged in handloom sector
Tuberculosis suffocation nose block others…… none
36)Have you attended any of the training sessions conducted by the Cluster:
37) Have you been a part of exhibitions/trade fairs conducted by the Cluster:
38)Are you aware of the following government schemes:
(HDCS, Workshed-cum-housing, Thrift fund ,Group insurance , Health Package, National award for Primary Cooperative societies weavers, Marketing of handloom products through district level fairs/festivals/sacred baths etc…, Reservation of articles for production , Hank yarn price subsidy scheme)
39) Have you availed any of the schemes by the Government?
Name of the project purpose Year of availing Present status
40)Have you faced any difficulties working in the SHG?If yes, please mention
____