Question : Budget Allocation for Handloom Sector

(a) whether the Government has implemented the Revival, Reform and Restructuring Package for Handloom Sector in the country, State-wise including Andhra Pradesh;

(b) if so, the details thereof and the number of districts covered under this scheme;

(c) the total allocation and expenditure made for the Handloom and Handicraft sector during the last six years including allocation and expenditures under the Budget heads of Scheduled Caste Sub-Plan/Tribal Sub Plan;

(d) the details of financial/social status of SC/ST and OBC’s in the handloom/handicraft sector during the last six years;

(e) whether the Government acknowledges the decline in employment in the handloom sector, if so, the reasons for this decline;

(f) the reasons for the decline in budget allocation to the Ministry of Textiles in FY 2020-21 in the light of decreasing employment in the sector; and

(g) the steps being taken by the Government in this regard?

Answer given by the minister

MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)

(a) & (b): The Govt. of India had approved ‘Revival, Reform and Restructuring (RRR) Package for Handloom Sector’ in November, 2011. The package inter-alia included (i) one time waiver of overdue loans and interest (100% principal and 25% of interest) of eligible handloom cooperative societies and individual weavers as on 31st March, 2010, (ii) recapitalization of viable and potential viable handloom cooperative societies; (iii) provision of fresh subsidized credit to handloom cooperative societies and weavers covered by waiver by providing interest subsidy of 3% for a period of 3 years with credit guarantee and (iv) carrying out legal and institutional reforms for cooperative societies. The coverage of eligible beneficiaries under the package, has been continued upto 28.02.2014. Under the package, 39 Apex Societies, 9642 Primary Weavers Cooperative Societies, 54226 individual weavers & 6310 Self Help Groups were found eligible as per the eligibility norms of the scheme across the country including Andhra Pradesh. State-wise details is at Annexure-I.

An amount of Rs.741.03 crore has been released to NABARD, the Implementing Agency towards loan waiver and recapitalization for further releases to beneficiaries concerned. Subsequently, an amount of Rs.141.41 crore has been released to Government of Kerala as Govt. of India share, towards loan waiver and recapitalization of eligible cooperatives and Rs.12.46 crore to 7 States namely Andhra Pradesh, Karnataka, Tamilnadu, West Bengal, Kerala, Uttarakhand and Uttar Pradesh for computerization of eligible Primary Weavers Cooperative Societies.

(c) & (d): The total allocation/expenditure and financial status of SC/ST in the Handloom/Handicraft sector during the last six years are as below:
(Rs. in crore)
Handlooms
Financial Year Budget Allocation Expenditure Scheduled Cast Sub Plan Scheduled Tribe Sub Plan
Allocation Expenditure Allocation Expenditure
2013-14 638.00 579.25 18.10 13.88 3.50 3.11
2014-15 497.50 411.90 38.00 26.28 32.99 29.12
2015-16 594.91 591.75 16.38 16.38 27.44 27.44
2016-17 682.59 658.42 40.00 36.61 31.70 31.64
2017-18 477.50 468.89 39.74 39.07 31.82 31.81
2018-19 400.59 332.30 56.01 27.06 45.00 32.84
Handicrafts
Financial Year Budget Allocation Expenditure Scheduled Cast Sub Plan Scheduled Tribe Sub Plan
Allocation Expenditure Allocation Expenditure
2013-14 341.00 243.02 14.17 8.50 3.43 1.72
2014-15 441.30 228.65 13.20 8.73 2.85 1.59
2015-16 455.59 357.31 24.60 23.45 2.05 1.59
2016-17 375.00 289.96 43.00 25.04 0.00 0.00
2017-18 289.70 217.39 35.00 26.11 0.00 0.00
2018-19 198.42 195.54 35.50 31.65 14.00 10.41

(e) to (g): Handloom Sector is unorganized, labour intensive and decentralized, with characteristics of Cottage Industry. It is often operated out of home rather than a purpose-built facility, with very little investment in Plant and Machinery. As per the 4th Handloom Census (2019-20), 35.23 lakh handloom workers are engaged in weaving and allied activities across the country.

Schemes under Handloom Sector are implemented on the basis of proposals received from the State Governments and in close coordination with the State Governments. The year-wise outflow of funds depends on the number of viable proposals for release of funds under the various schemes. This leads to variations in the annual figures. The Office of the Development Commissioner for Handlooms makes all efforts in close coordination with the State Governments and Weavers’ Service Centres through regular correspondence, interaction and by holding meetings for optimum utilization of funds allocated for various schemes.

Government of India supports the sector by providing backward linkages i.e. supply of subsidized yarn, subsidized looms and accessories, design support, product development, skill up-gradation trainings and forward linkages i.e. Marketing platform to handloom organization and weavers to sell their products to the consumers through various national and international marketing events.


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