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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 --


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


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

http://www.coirkerala.org/

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


v No. of weavers 1824 1830

vi Employment generated (man days in Lakhs) 5.47 5.49


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


V No. of weavers 67268 57753

vi Employment generated (man days in Lakhs) 66.94 95.36


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


Ii Central Government 582.64

iii N.C.D.C, NABARD,HUDCO

C Amount spent as Rebate on the sale of Handloom

cloth:


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.


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.


Below 3000 3000-5000 5000-10000 Above 100000

5

10

15

20

25

30

35


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


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


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


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


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


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


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


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


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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14. Tirthankar Roy “Relations of Production in Handloom weaving in the miid-thirties”, Centre

for Development Studies, October 1987.

15. Kannan K.P. “Political Economy of Labour and Development in Kerala”, Centre for

Development Studies, January 1998.

16. Government of Kerala “Economic Review 2010”, page 180-183, Kerala State Planning

Board, 2010.

17. http:// www.sisikerala.org

18. http://www.indianhandloomscluster-dchl.net/

http://www.indianhandloomscluster-dchl.net/

http://www.sisikerala.org/

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


Table 3.3: Marital Status

Marital Status No:of Weavers Percentage of weavers(%)

MarriedUnmarriedWidow/WidowerDivorced/Separated

421062

7016.7103.3


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


Table 3.6: Family Size

No: of members in family No: of weavers Percentage of weavers1-45-78 or more

4515-

7525-


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-


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

:

P a g e | 65

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

____

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