From Loom to Market: The Business of Handloom Cooperatives

Handloom Weavers’ Cooperative Societies in India .

How they function:

  • Structure: A weavers’ cooperative society is a democratically run organization with weavers as members. They elect a managing committee to oversee daily operations.

  • Role:
    • Procurement: The society procures raw materials like yarn in bulk at a discounted rate due to their collective bargaining power.
    • Production: They may directly employ weavers or provide them with yarn and designs to weave at home.
    • Marketing: The society handles marketing and selling the finished handloom products through their own showrooms, government emporiums, or exhibitions.

How they make money:

  • Sales Revenue: The primary source of income is the sale of handloom products. The society deducts operational costs and a small margin for profit before distributing the remaining amount among the weavers based on the number of meters woven or the complexity of the design.

How weavers benefit:

  • Fair Wages: Weavers receive a fair wage for their work, as the cooperative eliminates middlemen and ensures a larger share of the profits reach them.
  • Steady Work: Societies can provide weavers with a steady flow of work and raw materials.
  • Social Security Schemes: Some cooperatives offer benefits like health insurance or pension plans for their members.

Government Support:

  • Financial Assistance: Both central and state governments offer various schemes like:
    • Subsidies on yarn: This reduces the cost of raw materials for weavers.
    • Credit facilities: Weavers’ cooperative societies get access to loans at concessional rates to purchase equipment or working capital.
    • Marketing grants: Support for participating in exhibitions and marketing initiatives.
  • Skill Development: Government programs help train weavers in new designs and techniques.
  • Recognition: Schemes like the “Handloom Mark” certification authenticate the handloom origin, attracting a premium price.

Festival Discounts:

  • Bulk Buying: Societies may purchase yarn in even larger quantities before festive seasons to get additional discounts from suppliers.
  • Reduced Margins: During festivals, the society might choose to take a smaller profit margin to offer discounts to customers and boost sales.
  • Government Incentives: Some state governments offer rebate subsidies to cooperative societies during festivals, allowing them to offer steeper discounts.

Note: The specific benefits and schemes might vary depending on the state and the individual cooperative society.

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