R
I
C
H
Y
H
A
Diagnostic Study
N
D
L
O
O
M
C
L
U
S
T
E
R
T
R
I
Contents
C
H
S No
Topics
Executive Summary
Page Nos.
Implementation Strategy
10
H
A
N
D
L
Action Plan
C
L
U
S
T
E
R
T
R
EXECUTIVE SUMMARY
The Handloom Industry in India offers livelihood to masses all over the
country. Despite the government schemes, the Handlooms in many parts of
the country are struggling to survive. Trichy is one such place where the
handloom industry is in the declining trend for the past 5 years.
C
H
Y
The ancient 300 BC Chola capital called Woraiyur, is the todays Trichy. The
handloom industry situated in and around the district tells the pathetic tale of
the
surviving
weaving
communities.
The
reasons
are
many
fold.
H
A
N
D
The chapter 1 deals with the global textile industry scenario to the present
handloom industry in Trichy district and the market share of the major
cluster product, saree.
INCOMPLETE. FULL FORM WILL BE SENT IN DUE COURSE
O
M
C
L
U
S
T
E
R
T
R
1.0 TEXTILE INDUSTRY SCENARIO
1.1
Global Textile Market today is worth more than $500 billion and it is still growing
every year. Textile and apparel trade represents nearly 6% of total world exports.
Textile Trade has exploded eighty-fold during the past forty years, from under $6
I
C
H
Y
billion in 1962 to $453 billion in 2004. The more labor-intensive apparel export
sector has grown more rapidly than textile exports. The recent globalization of the
textile trade has opened up highly demanding and evolving requirements for
outsourcing of textiles. During the last quarter of the previous century, the share of
developing countries in world textile exports improved from 15 to 50 per cent.
1.2
The Trade in Textiles from 1974 1994 was controlled under MFA (Multi-Fiber
Agreement) through which a particular country is restricted to export its textile
H
A
N
D
L
O
O
M
keeping the edge by optimum textile production. The MFA was terminated with
entry into force of the World Trade Organization (WTO) and its Agreement on
Textiles and Clothing (ATC) on 1 January 1995. The WTO renewed the MFA with an
Agreement on Textiles and Clothing (ATC), which agreed that all quotas on textiles
C
L
and clothing would disappear between member countries on January 1, 2005. The
expiration of ATC marked the end of quotas, limiting textile and clothing trade
between the WTO members. While India and China are likely to emerge as winners,
the main losers after quota will be quota-restricted countries who have enjoyed the
benefits and protection for more than 40 years. Costs remain the driving factor in
the post-quota world but now the advantage will be greater as retailers are bound
to raise the bar higher on the responsiveness and flexibility from their suppliers.
U
S
T
E
R
T
R
1.3
I
C
H
Y
The Indian Textile Industry has an overwhelming presence in the economic life of
H
A
N
D
L
O
O
M
the country. Apart from providing one of the basic necessities of life, it also plays a
pivotal role through its contribution to industrial output, employment generation,
and the export earnings of the country. Currently, it contributes about 14 percent to
industrial production, 4 percent to the GDP, and 16 percent to the countrys export
earnings. It provides direct employment to about 35 million people. The Textile
sector is the second largest provider of employment after agriculture. Thus, the
growth and all round development of this industry has a direct bearing on the
improvement of the economy of the nation. The Indian textile industry is extremely
varied, with the hand-spun and hand woven sector at one end of the spectrum, and
the capital intensive, sophisticated mill sector at the other.
L
U
S
T
E
R
T
R
1.5
Handlooms constitute the rich cultural heritage of India. The handloom weaving, as
an economic activity, provides livelihood to the people. The element of art and craft
present in Indian handlooms makes it a potential sector for the upper segments of
I
C
H
market in domestic as well as global. The sector accounts for 13% of the total cloth
produced in the country. Innovative weavers with their skillful blending of myths,
faiths, symbols and imagery provide their fabric an appealing dynamism. The
strength of Handloom lies in introducing innovative design, which cannot be
replicated by the Powerlooms. In spite of the Government intervention through
financial assistance and implementation of various development and welfare
schemes, the number of handlooms is continuously reducing all over the country.
The reasons are manifold. New generation are not readily joining the weaving
activity. Low wages, continuous increase in yarn prices, obsolete technologies,
H
A
N
D
L
O
O
M
for more than 4.29 lakh weaver households and about 11.64 lakh weavers.
According to the Director of Handlooms & Textiles, about 2.11 lakh handlooms are
functioning in 1247 handloom weavers co-operative societies and the remaining
looms are outside the co-operative fold. The handloom weavers co-operative
societies mostly exist in Rural and Semi-Urban areas, where there is large
concentration of handloom weavers. The handloom weavers co-operative societies
have produced 1083.26 lakh metres of handloom cloth valued at Rs.559.72 crore
C
L
U
S
and sold to the extent of Rs.696.58 crore during the year 2004-05. There is an
increase of sale of handloom cloth worth Rs.122 crore in 2004-05 over previous
year 2003-04. The number of handloom weavers societies working on profit has
T
E
R
T
R
been increased from 527 to 601 during the year 2004-2005. Marketing is the major
factor for the performance of the handloom weavers co-operative societies.
1.7
I
C
H
Y
Poovalur, Mettupalayam, Samayapuram etc., 5 years before, there were more than
10000 looms were operating in the cluster.
powerloom sector, the trend is continuously declining. To day 1/4th of the business
only is happening. 3/4th of the master weavers, and merchant manufacturers left
the business. As the survival becomes difficult, most of the weavers left the area
and migrated to Tirupur, Karur and Kerala in search of jobs. Most of the weaver
members are unhappy about the functioning of the societies, as there is no
continuous employment provided by the societies. The main products of the cluster
H
A
N
D
are Cotton sarees, cotton voile fabrics cotton dhotis and uppers. The total turnover
of the cluster estimated to be around Rs. 10 crores, in which 70 % are woraiyur
cotton sarees, 20 % are voile fabrics and 10 % are of dhotis and uppers.
The total market size of the cotton saree in India, according to the Textiles
Committees consumer house hold survey, is 330 million pieces. The Cotton sarees
produced in Trichy cluster for an year is estimated to be 3,00,000 pieces of value
around 7.5 crores, which works out to be only 0.1 % of the countrys requirement.
L
O
O
M
The total handloom cotton sarees produced in Tamil Nadu, according to the
Statistical Hand Book of the Department of Economics and Statistics for year 2005,
is 59, 21,167. The Trichy cluster contributes 5 % of the handloom cotton saree
production in Tamil Nadu.
L
U
S
T
E
R
T
R
I
C
2.0 HISTORICAL EVOLUTION OF CLUSTER
2.1
H
Y
Woraiyur, a part of present day Tiruchirappalli, was the capital city of Cholas since
300 B.C. Later, Woraiyur came under
who ascended the throne in AD 590. Till AD 880, this region was under the
hegemony of either the Pallvas or the Pandyas. It was in AD 880, Aditya Chola
brought a downfall to the Pallava dynasty. From that time onwards Tiruchirappalli
and
of
Greater
Cholas.
In
AD
1225
the
till the advent of Mughal Rule. Tiruchirappalli was for some time under the Mughal
Governors
of
Vijayanagar
Empire,
AD
1736.
It was
Viswanatha Nayaka who built the present day Teppakulam and the Fort.
The Muslims rules this region again with the aid of either
English armies.
the
French
A
N
area
was occupied by the Hoysulas. Afterwards, it came under the rule of later Pandyas
rule, which was put to an end by the Vijayanagar rulers.
or the
Chanda Sahib
D
L
O
O
M
and Mohamed Ali. Finally the English brought Tiruchirappalli and other areas under
their control.
The district was then under the hegemony of British for about 150
years till the independence of India. As the sarees woven in and around the ancient
Cholas capital Woraiyur, since then it is called Woraiyur sarees.
2.2
To day it is estimated that about 2500 handlooms operate in both Co-operative and
Private sector. As per the statistics available with the Assistant director of
Handlooms Trichy, the total number of handlooms in the cooperative sector is 4255
in which 1461 are working looms and the remaining are idle. The value of
C
L
U
S
T
E
production during March, 2006 was around 45 lakhs only. The current population
T
R
dependant on weaving and allied works living in Trichy district is estimated to be
around 25,000 only. The weaving communities are Padma Saliyars, Devangas and
Mudaliars. Out of 29 Co-operative societies, 27 are working, and one is just
registered and one is dormant. Though the number of profit making societies is 19
in number, the accumulated loss of these societies runs into more than 5 crores.
M/s. Thathiengarpet Weavers Co-operative Society, once popularly known for its
quality dhothies, is almost at the verge of closure and presently no activity. The
I
C
H
Y
handloom industry in the cluster comes down drastically in the last 5 years. The
voile fabrics produced on handlooms reduced from 5 lakh metres to about 1 lakh
metres. The competition from powerlooms forced few master weavers to switch
over to powerlooms.
2.3
H
A
Trichy is one of the biggest industrial city of Tamil Nadu state. The population of
Trichy district is about 22,00,000 according to the data available for 1991 census.
Out of which 11,08,016 are male population and female population 10,88,457.
There are about 145 large scale industries and 802 small industries are working in
the outskirts of Trichy. Bharat Heavy Electricals Ltd, a successfully run popular
public sector large scale industry is situated in Trichy. Trichy is well connected with
D
L
O
O
other cities by train routes and flight routes. Airport is situated about 3 km from
the city. Direct flight to Columbo, Sri Lanka is available. The river Cauvery flows
through the city. Besides Trichy is a famous tourist centre of Temples viz Srirangam
Ranganathar
Temple.
Temple,
Samayapuram
Mariamman
Temple
and
Tiruvanikkaval
C
L
U
S
T
E
R
T
R
I
C
H
Y
H
A
2.4
The main product of the cluster is Woraiyur Cotton saree. About 70% of the cluster
production is sarees only. Finer cotton counts 60s, 80s, 100s, 120s, 2/120s are
being used to make these varieties.
area mills through NHDC.
from Jeyankondam situated 95 km from Trichy. Only few small dyers are working in
Trichy Woraiyur area. The dyeing is also carried out in Coimbatore, Salem,
Tiruchengode areas for export quality voiles. The quality of particulars of the saree
D
L
O
O
M
Variety
Saree
Saree
Saree
Saree
Saree
Voile fab.
Dhoti
Dhoti
Uppers
Uppers
Warp
100s
80s
80s
100s
60s
80s
100s
80s
80s
100s
Weft
100s
100s
80s
2/120s M
60s
80s
100s
80s
80s
100s
EPI / PPI
80/76-80
80/76-80
80/76-80
80/72-76
72/64-68
80/68-76
88/76-80
88/76-80
80/76-80
80/76-80
Width
47-50
47-50
47-50
47-50
47-50
46-48
50
50
36
36
Length
6-9 Yds
6-9 Yds
6-9 Yds
6-9 Yds
6-9 Yds
P Length
4 yds
4 yds
2 yds
2 yds
C
L
U
S
T
E
R
T
R
I
C
H
Y
The core cluster actors are weavers of both cooperative and private, Handloom
Weavers Co-operative Societies, Master weavers, Merchant Manufacturer / Traders,
Co-optex, Textile Showrooms, Dyers, NHDC, Yarn Dealers, Cooperative Banks,
Integrated Cooperative Development Organisation.
3.2
The Weavers Co-operative societies come under the Administrative Control of The
Asst. Director, Handlooms & Textiles, Govt. of Tamilnadu. Since no elected board is
H
A
N
D
L
O
O
M
functioning in any of the society, the officials from Asst.Director of Handlooms &
Textiles function as Special Officers and control the societies in day-to-day
activities.
Welfare and developmental schemes of Central & State Govt. are also
implemented and monitored by this office. NID has been entrusted to develop new
C
L
U
3.3
Financial Institutions
S
T
E
R
T
R
about 50% of the societies are working under loss, there is no credit facility
H
Y
Development Corporation
(NCDC).
societies of all sectors and provide working capital to the viable selected societies.
Some of the loss making handloom co-operative societies in Trichy cluster was also
H
A
N
3.4
The Weavers Service Centres (WSC) impart training to weavers to upgrade their
skill and increase productivity. They play a vital role in conducting research and
development evolving new designs and reviving traditional designs. The WSCs are
functioning under the Office of the Development Commissioner for Handlooms, New
Delhi. The WSCs primarily render extension services, which involve transfer of
O
M
design inputs, skills and technology evolved to the weavers at their cottages.
C
3.5
The DRDA is a State Government Body working and implementing schemes for the
rural development. There is no specific scheme for handloom weavers under DRDA.
U
S
T
E
R
T
R
However, they work with SHGs (Self Help Groups) of women and men directly and
through NGOs.
3.7
There are about 6 SHGs identified in the cluster engaged in Handloom weaving.
They have obtained loan from the local private bank, produced own handloom
products and participated in the Exhibition for marketing their products.
3.8
I
C
H
Y
H
A
N
D
L
learnt from them that more than 50 % of their members have already left the
handloom saree business due to competition from powerlooms and the declining
market for handloom sarees. The association runs a marriage hall. They organize
meetings in every six months to discuss the issues of importance. They also
distribute free school books and uniform cloth to the poor and needy students. Now
a days they discuss the handloom business very rarely. Their last meeting took
O
O
M
place two years before when the cenvat tax was imposed on cotton yarn.
3.9
C
L
The warping is a sub process before weaving. There were about 400 warpers were
working before 5 years. But now there are only 100 throughout the Trichy district.
The Manamedu warpers have an association. It is not a registered association. The
warpers in Manamedu area assemble on the new moon day, discuss any issue
related to their warping and do the chit fund activity.
3.10
U
S
T
E
R
T
R
The sizing people have an association in Manamedu. It is also not a registered
association. These people meet on every full moon day and discuss issues of
importance and run the chit fund activity. They donate Rs. 1000/- when a member
dies. These people help the handloom industry, but a neglected lot.
I
C
H
Y
H
A
N
supplied to both cooperative and private handloom weavers through NHDC and
local yarn dealers. The raw material is supplied from Coimbatore and Rajapalayam.
The cotton yarn counts of 80s, 60s, 100s and 120s are being used for weaving
sarees, dhotis, and export voile fabrics.
operating in Trichy.
Jeyankondam is the only supplier of cotton yarn to the master weavers of this
region. There were many yarn dealers operating from Trichy have been closed as
the market for the sarees reducing continuously.
4.2
L
O
O
M
C
Dyeing
The dyeing activity is carried out only by few small dyers in Trichy.
There is no
approved dyer in Trichy. The cotton yarn for societies being dyed at Jeyankondam
situated
95
km
from
Trichy.
For
private
master
weavers
and
merchant
manufacturers, the dyeing of cotton yarn is carried out at Trichy by about 5 dyers.
Mostly, Napthol and Vat dyes are used for dyeing.
treatment are also followed to some extent.
2.25 kg ranges from Rs. 120/- to Rs. 250/-.
4.3
Warping
U
S
T
E
R
T
R
Warping is a process to convert the cotton yarn in hank form / cone form to ball /
sheet ball form suitable for sizing and weaving on handlooms. There were about
400 warpers working all over Trichy Dist. five years back. At present, their number
reduced to about 100.
Rs.2.40 per knot is charged as warping charges. 50% of this i.e Rs.1.20 goes for
winding bobbins. The winding is a household activity carried out by ladies in a no.
of houses in the same area.
The
C
H
Y
Sizing is a process to add strength to the cotton single yarn warp by applying size,
paste uniformly throughout the length and breadth of warp.
locally called Kanji (The liquid extract of boiled rice) is collected by old ladies in the
nearby households for meager amount of Re.1/- The person who collects the Kanji
gets Rs.5/- to Rs.20/- depending upon the quantity for 1 to 4 warps. The length of
the warp for sizing is around 35 yards. The accessories used for sizing process are
locally called pillu (Brush), Dhambu- a frame to hold both sides of warp, Kayiru a
rope used to tie the frame to the ground, Kolu wooden lease rod.
N
D
L
O
The sizing
charges works out to be Rs.4.30 per knot. For each warp, about 16 knots are used.
So the cost of sizing works out to be Rs.69/- per warp. About 5 to 7 people are
required to perform the sizing process. 4 to 6 warps can be sized in a day. So the
O
M
4.5
Weaving
Ingredients
Expenses Rs
345.00
Rice extract
Coconut oil 25 ml
12.50
20.00
Wages @ 10 for 5
5.00
250.00
C
L
U
S
T
E
R
T
R
Weaving is a process of interlacement of two series of threads warp and weft to
form fabric. Cotton yarn is used for weaving the sarees, export pieces and dhotis.
There are few silk weavers also noticed in the cluster. The wages per day for the
weaving activity for a weaver ranges from Rs. 50 to 75. As more than 50 % of the
weavers are of above 50 years age the productivity per weaver and earning also
slow down.
I
C
H
Y
4.6
Handloom
The process of weaving is done with the help of the loom. As it is operated by hand
by the weaver, it is called Handloom.
sley, shuttle, picker, warp beam, cloth beam, reed, healds, lease wooden rods, pirn.
Raised Pit Looms are used to weave the sarees, dhotis and export voile fabrics in
and around the Trichy Handloom Cluster.
4.7
A
N
D
Weavers
categories of weavers viz., weavers under cooperative fold and weavers under
master weavers or private weavers.
L
O
O
weave the sarees or dhotis or export pieces and return back the said products to
societies for marketing to Merchant Manufacturer, Co-optex and direct sales to
consumers. They receive wages for this activity. The continuous employment is not
ensured to the weavers of the cooperative societies. The cooperative weaver gets
20 % more wages compared to the private weavers. The same cooperative weaver
The private weavers mostly receive the dyed yarn from master weavers and get it
warped and sized outside; weave the sarees, dhotis and export pieces and return
back the woven products to the master weavers / merchant manufacturer.
The
weavers also receive the warped and sized ball warps for weaving directly from
E
R
T
R
master weavers. The private weavers get nearly 20 % less wages compared to the
cooperative weavers.
4.8
I
C
Co-operative Societies
There are about 27 Handloom Cooperative societies operating in Trichy District with
about 1200 working looms. Their consumption of cotton yarn per month works out
to be 15 Bales of 90 kg each. The yarn is supplied mostly from Coimbatore cotton
H
Y
spinning mills through NHDC. The cotton yarn is dyed according to the requirement
of colours with the approved dyers.
H
A
Master Weavers
The master weavers of about 50 Nos. operate in handloom area from all over Trichy
District. They procure cotton yarn from dealers, merchant manufacturers and dyers
and supply to warpers and sizers then to weavers and get the woven sarees, dhotis,
N
D
Their
yarn requirements are met through the yarn dealer of Jayankondam situated about
95 km from Trichy.
market.
O
M
They supply the dyed yarn to warpers and sizers before issued to the
The
weavers weave the sarees and returns back to them. There is a wage difference of
about Rs.100/- between private and cooperative societies.
L
U
S
T
E
R
T
R
Co-optex is an Apex Handloom fabrics marketing organization of Tamilnadu run by
The Tamilnadu Handloom Weavers Cooperative Societies Ltd., which sells Rs.400
crores worth handloom products in a year through their showrooms all over India.
The Co-optex procures handloom products from co-operative societies throughout
Tamilnadu.
their production quality control and procure and supply to showrooms throughout
India. The co-optex also runs yarn godowns in other parts of Tamilnadu. The yarn
I
C
H
Y
from co-operative spinning mills are being sold to co-operative societies through
their yarn sales depot.
count yarn, and the Trichy consumes only the finer counts of yarn, Co-optex does
not have yarn sales depot
in Trichy.
H
A
N
D
L
O
O
dhotis and uppers. Without their assistance, the weaving activity is not possible.
For weaving, continuous flow of weft is necessary. The winding of weft on pirns is
done by household ladies.
carried out by the women folk. For the sizing process, the size paste is collected
from households by old ladies.
C
L
U
S
T
E
R
T
R
I
C
H
Y
H
A
5.0 INTER FIRM INDUSTRIAL ORGANISATION
5.1
N
D
L
Raw Material
Cotton Yarn
O
O
Dyeing
Warp Preparation
M
Weft Preparation
C
L
Winding
U
S
T
Pirn winding
E
R
Winding
Warping
T
Sizing
R
I
Warp Joining
C
H
Warp Gaiting
Y
Weaving
H
A
5.2
Cluster Map
D
L
O
BIM
NHDC
Coop Tex
Textile
Show
Rooms
O
M
AD office
Trichy
Society
Weaver
Coop
Design
Institutes
Merchant
Mfr
Weaver
Private
Warping
WSC
Warping
Assn
C
L
U
S
T
Sizing
Master
Weaver
Handloom
Assn
E
R
T
R
Sizing
Assn
I
C
H
Y
Before Intervention
After Intervention
H
A
N
D
L
O
6.0 SWOT ANALYSIS THE CLUSTER
6.1
Strength
6.1.1
O
M
Finance
6.1.2
Production
6.1.3 Marketing
C
L
U
S
T
E
R
T
R
6.2
Weakness
6.2.1 Finance
6.2.2 Production
I
C
H
Y
H
A
N
D
L
O
O
6.2.3 Marketing
M
C
L
6.3
Opportunity
6.3.1
Finance
6.3.2
Production
T
E
R
T
R
6.3.3
Marketing
6.4
Threats
6.4.1
Finance
I
C
H
Y
H
6.4.2
Production
6.4.3
A
N
D
Marketing
L
O
O
M
C
L
U
S
T
E
R
T
R
I
C
8.0 THE HANDLOOM WEAVERS IN TRICHY CLUSTER WILL
BECOME DYNAMIC AND SELF SUFFICIENT
TO PRODUCE MARKET - DEMAND VARIETIES
BY CONTINUOSLY FOCUSSING ON QUALITY
AND INNOVATIVE DESIGNS FOR THE
NICHE HIGHER END SEGMENT
OF THE SAREE MARKET
BY 2010.
PROBLEMS AND GAPS
8.1
The mind set of the weaving community is highly disturbed. Their very
H
Y
H
A
N
D
L
O
O
M
survival is at stake.
C
8.2
Due to tough competition from powerlooms, the handloom sarees and dhotis
market has reduced to 1/4th in the last 5 years. Similarly, the no. of looms,
weavers, master weavers, merchant manufacturers, traders has also been
reduced.
8.3
8.4
L
U
S
changing market.
The aged weavers are not ready to change the varieties to earn more wages.
E
R
T
R
8.5
8.6
8.7
I
C
H
Y
8.8
8.9
8.10 The system of allocation of yarn by DH office through AD office and NHDC
makes inordinate delay which affects their operation.
8.11 More than 50% of the cotton yarn meant for distribution to the handloom
society members are diverted to the local private weavers.
8.12 Improper linkages with raw material supply and marketing results in low
H
A
N
D
L
O
O
9.0 IMPLEMENTATION STRATEGY
9.1
Awareness Programme
The project Launch Programme will be organized inviting all the stake holders viz.,
weavers, master weavers, merchant manufacturers, traders, Govt. and Non-Govt.
organizations, self help groups involved in handloom weaving, training institutions,
textile colleges, students, yarn dealers, dyers etc.,
C
L
U
S
T
E
R
T
R
9.3
on
H
A
clusters.
9.5
H
Y
Training Programmes
Training Programmes
A raw material bank will be established at Trichy where all kinds of inputs for
handloom weaving made available for effective and timely distribution to weavers.
D
L
9.6
New innovative concepts, New Products will be developed using new fibres in line
with the existing cluster products with the help of students from textile institutions.
9.7
Formation of Consortiums
M
will be formed to
The Trichy Handloom Cluster will be linked with proper marketing channels of
C
L
9.9
The consortiums will be assisted in marketing their produce in the national and
international exhibitions and Buyer - Seller Meets.
9.10 Formation of a Cluster Development Co-ordination Committee
T
E
R
T
R
A District level Cluster Development Co-ordination Committee (CDCC) amongst the
stakeholders will be established for monthly review of the functioning of all the
H
A
N
D
The Export quality voile fabrics produced in Manamedu will be exposed to foreign
buyers for direct export
A Brand name for Trichy Handloom Cluster products will be established and
popularized through Fashion Shows in important cities.
O
M
C
L
U
S
T
E
R