Question : WEAVERS COOPERATIVE SOCIETIES



(a) whether the Government are aware that most of the Weavers Cooperative Societies located in Kerala are facing acute financial crisis due to decline in exports and are under the threat of closure;

(b) if so, the details thereof;

(c) whether the Government have received any proposals in this regard to protect these societies; and

(d) if so, the remedial steps taken in this regard?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SHRI BASANAGOUDA R. PATIL (YATNAL)

(a) & (b) Only three Weavers` Cooperative Societies from Kannur in Kerala are in the field of export and the exports from those societies during last two years have shown an increasing trend. However, other societies in Kerala have not so far entered into the export market and are mainly producing traditional handloom products for meeting the local requirements. No cooperative society in Kerala is reported to be under closure on account of the financial crisis arising out of the decline in exports.

(c) & (d) The Office of the Development Commissioner for Handlooms, Ministry of Textiles, has so far sanctioned two projects in favour of the Weavers` Cooperative Societies from Kerala under the erstwhile Development of Exportable Products and their Marketing(DEPM) Scheme and a sum of Rs. 26.40 lakh has been released. During the current financial year 2002-03, one proposal has been received for sanction of financial assistance to one Handloom Weavers Cooperative Society under the Handloom Export Scheme. The proposal is under examination in consultation with the State Government. In order to motivate the weavers` cooperative societies in Kerala, the Handloom Export Promotion Council had organised a Workshop on Product Diversification and Technology Up-gradation on 14th February 2003 at Thiruvananthapuram. The main purpose of the workshop was to motivate the Cooperative societies to produce exportable handloom items, which have a good scope for marketing in foreign countries rather than producing traditional items. The Handloom Export Promotion Council had also arranged lectures by professionals from organisations like National Institute of Fashion Techonology, Textile Committee and Weavers` Service Centre. Apart from the above, the Government of India has been taking following steps for boosting exports of handloom products from the country in general: -

a)	Organisation of Buyer-Seller Meets in important International markets;
b)	Participation in leading International fairs/exhibitions in selected countries;
c)	Technical up-gradation of looms and various production processes;
d)	Assistance made available to the exporters under Duty Entitlement Pass Book Scheme/Duty Drawback Scheme;
e)	Technology Up-gradation Fund to upgrade technology;
f)	Supply of Hank Yarn at Mill-gate Prices through National Handloom Development Corporation to	handloom production centres;
g)	Assistance provided under the Development of Exportable Products and	their Marketing scheme to	build up production capabilities through diversification of products, design development and through	publicity and marketing abroad;
h)	Updating of website at frequent intervals to update information to the buyers about the handloom products; and
i) Inviting buyers from abroad to visit various handloom production centres in India.