Loss of Employment in Textile Sector

To assess the impact of economic slowdown on employment, Labour Bureau, Ministry of Labour and Employment conducted a quick survey during January – March 2011 (Tenth in the series). The survey covered important sectors including textiles and handlooms.

According to the said report, 733 textile units including apparel were surveyed and noticed that the employment has declined by 1.21 lakh during the period March, 2011 over December, 2010. Similarly, of those 96 units surveyed in handloom/power loom sector and it is observed that employment has declined by 0.18 lakh during the said period.

To strengthen the textile industry and to increase the employment in the sector, Government of India has been implementing various schemes such as i) Technology upgradation Fund Scheme (TUFS); ii) Scheme for Integrated Textile Parks (SITP), and iii) Integrated Skill Development Scheme (ISDS).

Government of India is also implementing specific schemes for the development of Handloom Sector. For the development of handloom sector and welfare of Handloom weavers, five Schemes are under implementation during 11th Plan, which are (i) Integrated Handlooms Development Scheme, (ii) Handloom Weavers’ Comprehensive Welfare Scheme (iii) Marketing & Export Promotion Scheme (iv) Mill Gate Price Scheme and (v) Diversified Handloom Development Scheme.

Recently, Government has also announced “Revival, Reform and Restructuring Package for Handloom Sector”. The proposal includes reform of the financial, legal and institutional framework for the handloom weaver cooperative societies, one-time waiver of overdue loans and interest of eligible handloom cooperative societies and individual weavers as on 31st March, 2010, recapitalization of viable and potentially viable handloom cooperative societies, and provision of fresh cheap credit to handloom cooperative societies and weavers covered by waiver by providing of interest subsidy of 3% for a period of 3 years for each fresh loan with credit guarantee. The total financial implication of this package is Rs. 3884 crore, out of which Govt. of India’s share is Rs. 3137 crore and the share of the State Governments is Rs. 747 crore.

Due to implementation of the above schemes of Government, consolidation has occurred in the handloom sector. Consequently, the number of mandays worked per weaver has gone up from 197 (Census 1995-96) days to 234 days (2009-10). Likewise, share of full time weavers to the total weavers has gone up from 44% to 64% during the same period. Furthermore, share of idle looms has declined from 10% to 4%.