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.