Yarn Crisis in Handloom Sector: Reality, Impact, and Solutions

India’s handloom industry, a vibrant part of our cultural heritage and a source of livelihood for millions, is facing significant challenges. The rising prices and occasional non-availability of yarn are making it difficult for weavers and handloom cooperative societies to continue their traditional craft sustainably.

Understanding the Yarn Problem

Yarn is the main raw material in weaving. Recently, yarn prices have significantly increased, influenced by factors like higher cotton exports, increased demand from powerlooms, and fluctuations in global market prices. This has directly impacted handloom weavers who struggle to adjust their final product prices accordingly, resulting in lower earnings or losses.

Impact on Handloom Cooperative Societies

Handloom cooperative societies, which procure yarn in bulk and supply it to weavers, are facing significant financial challenges due to rising yarn prices. Their ability to support member weavers is compromised, causing additional stress on their operations.

Government Initiatives and Yarn Banks

To tackle the issue, the Indian government has introduced several supportive measures:

  • Raw Material Supply Scheme (RMSS): Provides all types of yarn at mill gate prices and includes a 15% subsidy on cotton hank yarn, domestic silk, wool, linen, and natural fiber blends.
  • Yarn Banks: Established across various states to ensure weavers’ easy access to affordable yarn. For instance, Assam recently set up 27 yarn banks across its districts.
  • State-Specific Subsidies: Andhra Pradesh offers a 40% subsidy for hank yarn, dyes, and chemicals through channels like the National Handloom Development Corporation (NHDC) and APCO.
  • Hank Yarn Packing Obligation (HYPN): A regulatory measure requiring yarn mills to pack a certain percentage of yarn in hank form suitable for handlooms. However, compliance and monitoring remain concerns.

Fact-Checking Yarn Availability

While there are structured systems in place like RMSS and Yarn Banks, localized problems persist. The issue isn’t a complete lack of yarn availability from government sources, but rather delays, bureaucratic hurdles, uneven regional distribution, and occasional quality or variety limitations in yarn supply.

The Real Challenges Faced by Weavers

  • Bureaucratic Barriers: Complex procedures and documentation make accessing subsidized yarn difficult.
  • Diversion of Yarn: Yarn intended for handlooms often gets diverted to powerlooms, creating artificial scarcity.
  • Quality and Variety Concerns: Limited options in yarn quality and types available through government channels.

Stand of Handloom Cooperative Societies

Cooperative societies acknowledge these issues and advocate for smoother government processes, stricter enforcement against yarn diversion, and improved yarn quality control measures.

Solutions Proposed by Save Handloom Foundation

Representing weavers through our public charitable trust, Save Handloom Foundation, we suggest these practical solutions:

  1. Strengthen Cooperative Societies: Enhance societies’ capacities for bulk yarn procurement at better rates.
  2. Simplified Access: Educate weavers about existing schemes through workshops and simplify application processes.
  3. Strict Monitoring: Implement stronger surveillance to prevent yarn diversion to powerloom sectors.
  4. Promote Indigenous Cotton: Encourage the cultivation and usage of indigenous cotton varieties like Kala Cotton to reduce dependency on expensive imports.
  5. Increased Financial Assistance: Advocate for higher subsidies and financial support to offset rising raw material costs.

Government Response

The government acknowledges these challenges and continues to improve implementation and monitoring systems, aiming to streamline yarn availability more effectively across India.

Conclusion

The yarn availability and pricing crisis impacts the very survival of India’s cherished handloom sector. However, coordinated efforts by the government, cooperative societies, and organizations like Save Handloom Foundation can provide sustainable solutions. By addressing systemic inefficiencies, empowering weavers, and improving regulatory frameworks, we can protect the livelihoods of our weavers and preserve India’s rich handloom heritage.

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