THE HANDLOOM

WEAVERS OF INDIA
B Y ARTIKA ASHDHIR
M.A GLOBALIZATION AND LABOUR
ROLL NO: 2010GL004
SUBJECT: WORLD ONE SEMINAR
TATA INSTITUTE OF SOCIAL SCIENCES
 ABSTARCT

The weavers of India are its biggest assets. It’s a marvel that an ancient art such as weaving
still exist in our country, but the carriers of this tradition are the least respected lot in this
nation. Weaving is skill that is done with utter brilliance and is passed on from generation to
generation. Throughout history there are evidences that show that weavers have always been
a victim of a staunch hierarchical system. Being at the bottom of the system they fall prey to
the extreme forms of exploitation. Since the time of Kalidasa, weavers were the poorest of
the lot, the British invasion and their policies of free trade further pushed them to the lowest
strata of the society (economically). With the independence of India it was expected that the
art of weaving would a get a refurbishment and that there would be an elevation in the status
of weavers. However our government was not able to meet these expectations.

The purpose of this paper

is to familiarise with the current conditions of the weavers and to propose the importance of
social protection and social security to the custodians of this ageless art.

Therefore during the course of the paper we will discuss; the historical
background of weaving industry, the types of weavers, their industrial organization, the
wages and working conditions of the weavers, the government initiatives towards this
industry, the impact of globalization on the weavers and finally in conclusion the evidence of
a presence of initiatives by the state to protect the weaving class.

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CONTENTS PAGES

1. INTRODUCTION ............................................................................................................4

2. HISTORICAL BACKGROUND………………………………………………………..5

2.1. THE ORIGIN OF THE WEAVING ART IN INDIA………………………………..5

2.2. TYPES OF WEAVING TRADITIONS IN INDIA IN INDIA………………………5

2.3. IMPACT OF THE ISLAMIC TRADITIONS ON THE WEAVING CULTURES

AND TRADITIONS……………………………………………………………………...6

2.4. GUJARAT BECAME THE FOCAL POINT OF THE WEAVING

IN THE PAST……………………………………………………………………….6

2.5. IMPACT OF BRITISH INVASION………………………………………………...6

2.6. REASONS FOR THE LONG TERM SURVIVAL OF THE INDUSTRY…………6

3. TYPES OF WEAVERS …………………………………………………………………9

3.1. INTRODUCTION…………………………………………………………….……9

3.2. SELF-EMPLOYED WEAVER……………………………………………….……9

3.3. CONTRACT WEAVERS…………………………………………………….……9

3.4. LOOMLESS WEAVERS…………………………………………………………10

3.5. COOPERATIVE SOCIETY MEMBERS…………………………………….…..10

4. WEAVING STYLES IN INDIA…………………………………………………….…11

5. INDUSTRIAL ORGANIZATION IN THE HANDLOOM INDUSTRY.................13

6. WAGES AND WORKING CONDITIONS………………………………………….15

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7. GOVERNMENT INITIATIVES…………………………………………………….18
7.1 GOVERNMENT POLICIES……………………………………………………..18

7.1.1 OBJECTIVE BEHIND THE POLICIES…………………………………..18

7.1.2 SCHEMES………………………………………………………………….18

7.2 CRITICISMS OF THE POLICES…………………………………………………20

8. IMPACT OF GLOBALISATION ON THE INDUSTRY………………………..…21

8.1 INTRODUCTION……………………………………………………………….....21

8.2 IMPACT ON THE SILK WEAVING INDUSTRY…………………………….....21

8.3 MIGRATION DUE TO LIBERALIZATION……………………………………...23

8.4 FLAWS IN THE GOVERNMENT POLICIES…………………………………....23

9. CONCLUSION………………………………………………………………………...24
9.1 ILO PROPOSAL…………………………………………………………..……….24

9.2 INTITIATIVES BY THE INDIAN GOVERNMENT……………………..……...24

9.2.1 INTRODUCTION……………………………………………………..……25
9.2.2 TARGET POPULATION………………………………………………..…25
9.2.3 INSURANCE PLAN…………………………………………………….....25
9.2.4 PLAN DISTRIBUTION……………………………………………………26
9.2.5 SERVICE DELIVERY……………………………………………………...26
9.2.6 COVERAGE………………………………………………………………...27
9.2.7 CONTRIBUTIONS………………………………………………………....27
9.2.8 CHALLENGES…………………………………………………………......27

10. RFERENCES………………………………………………………………………….28

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1. Introduction

Handloom weaving in India is still largely a household enterprise, as well as being

predominantly a rural activity (with the exception of Maharashtra). It has conventionally
been one of the most promising sectors of huge employment. In fact, after agriculture,
this industry is largest provider of work force. The abundance in the raw materials, the
continuous supply of cheap work force is the contributing factors behind the success of
the weaving industry of India. However, the liberalization of the international trade
coupled with change in the reforms of domestic economy, have made affected the
weaving industry of India negatively. Despite the fact that the Indian weaving industry
employs a large section of the Indian population, it is considered as a failing industry.
Though this ancient industry of India is experiencing a bad phase, a large market for
weaving products still exist both in the international and domestic market. The
manufacturing of the weaving products makes a remarkable contribution to the national
GDP and even in the exports revenue. Estimates over the years have found out that the
weaving industry are supporting some 32 other sectors that include marketing, financial,
transportation, hotels and even maintenance services. The weaving industry in India has
self-depending mechanism that includes training the young weavers, abundance of
resources and capacities, thereby, helping the industry not to be dependent on the
Government. In addition, weaving is eco-friendly, and is aimed at the cutting back on the
environmental impact.

At present the share of the handloom industry stands at 18.75% of the total cloth
production. The major contribution of handloom sector is however in terms of providing
employment to 124 lakhs people and thus stands next to agriculture. Out of this, 60% are
women, 12% SC and 20% ST (Ministry of Textiles: 2001). There are 38.91 lakhs
handlooms in India. Though its share in total textile exports is 10% (EXIM: 2001), its
labour intensive character, decentralized nature and optimum utilization of scarce capital
resources give it a unique position in the Indian economy. It weaves a range of fibres like
cotton, silk, tussar, jute, wool and synthetic blends. The share of textile exports in the
total exports of India has shown an increasing trend and now stands at 35.5%. Thus,
textiles have grown over decades as the single largest foreign exchange earner. This is of
great significance taking into account the fact that textile industry has low import
intensity at 2-3%.

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 2. Historical background

2.1 The origin of the art of weaving in India

Fragments of woven cotton and bone needles have been discovered at Mohenjo-Daro and
Harappa, the ancient seats of the Indus Valley Civilization. Even the Rig-Veda and the epics
of the Mahabharata and the Ramayana dwell upon the craft of weaving at length. These
weavers of the past were true masters of their craft. Such was their capability that legend
even refers to the fabulous semi-transparent saree (a great technical feat) worn by Amrapali,
the famous courtesan. Indian cottons and silks were exported in  
huge quantities, causing concern among the Romans because their
wives could not have enough of these beautiful fabrics!
Fragments of cotton fabric were also found in the Egyptian tombs at Fostat, China too was
another big importer of Indian fabrics in ancient times. Moving ahead, silks were exported to
Indonesia in the 13th century, India also exported a lot of cotton and chintz to Europe and the
Far East before the advent of the British East India Company.

2.2 Types of weaving traditions in India :-

a) The Rural
Representing the familiar, unchanging images of rural life. These are abundantly
full of joy and life, with figures of plants, animals and humans.

b) The Classical
Revolving around royalty and court life. Here the forms and symbols varied according to the
patronage of the ruler. Symbols and myths were rendered graphically, with elegance and
style.
 
c) The Tribal
These were usually bold geometric patterns and weaves in strong
primary colours usually woven on simple bamboo looms.

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2.3 Impact of the Islamic invasion on the weaving cultures and traditions.

Where the Hindu weaving had an abundance of life and spontaneity, with imaginary animals,
plants and human figures, the Islamic tradition was more withdrawn and discreet.
Representation of living creatures was stylized to the point of abstraction since Islam did not
believe in graphic representation of living creatures.

2.4Gujarat became the focal point of weaving in the past.

However the great fire which took place in 1300 A.D. caused most of the weavers to flee and
settle around the country in places like Delhi, Ajmer, Agra, Banaras, and Madras. The silk
weavers of Murshidabad and the Saurashtros of South India both trace their lineage to
Gujarat.

The courts of the Muslim kings were resplendent in expensive garments

embellished with heavy 'zari' work and intense 'meenakari.

Persian motifs of flowers and fruits like the pomegranate, the Iris
tulip had become part of the Indian design scene. The vibrant
reds, yellows and oranges of the Hindu tradition combined with
the dusky pinks, emerald greens and turquoise blues of Persia to
form a new colour vocabulary. The Mughal Emperor Aurangzeb
was said to be so fond of the ‘Jamdani’, which one had to seek
royal permission before daring to wear the precious fabric. It soon
came to be called 'Aurangzebi' on account of the Emperor's
overwhelming passion for the fabric.

2.5 Impact of British invasion

With the coming of the British, the fabrics being woven lost much of their
intricacy and beauty.

2.6 Reasons for long-term survival of the industry

Thus the art of weaving started some 10,000 years back. It was on
an individual basis. That is, the weaver worked from his home
and the family members assisted. This form of working still exists in India. After the
invention of spinning and mechanised weaving looms, this activity became production
oriented and required to be funded as machine were expansive and beyond the reach of
individual community weaver. Gradually, spinning mills and weaving mills came to
existence and after industrial revolution in 19th century; the simple crossing of threads

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became a completely industrial activity. Weaving and spinning mills came in to existence,
employing thousands of workers.

The long-term survival of handloom can be explained by relative advantages of power-loom

and handloom. In the mid-nineteenth century, two types of cloth faced keen competition from
foreign or Indian mill-made cloth: ‘coarse-medium’ cotton cloth, and printed and bleached
cotton cloth. By contrast, cloths that used very coarse or very fine cotton yarn, or complex
designs woven on the loom, or non-cotton yarn, tended to use the handloom. These were either
so labour-intensive that the mills did not enter them by choice, or used non-cotton fibres that
the mills did not want to handle.
Statistically speaking, we are vastly better off in the twentieth century. For the first
time, we can handle quantitative issues – scale, productivity, income, degree of inequality,
etc. – with some measure of confidence. Handlooms accounted for about 25 per cent of the
cotton cloth produced annually in the first half of the 20th century. Market-share of handloom
cotton cloth was roughly stable between the 1890s and the 1930s. The total production of
cotton cloth expanded by about 30 per cent between 1900 and 1939. Throughout this period,
total cloth consumption was growing, and Indian cloth was steadily substituting imported cloth.
In cloths made of silk and other fibres, handlooms dominated. These other fibres were
generally more expensive than the average quality of cotton. Taking all fibres together except
wool, in the 1930s handlooms’ market-share in total cloth consumption in value may have been
about 50. Rising production and constant loom age suggest that the productivity and the
capacity of the looms increased. This can be independently confirmed from the information we
have on technology.

Table 1. Scale of the Indian Textile Industry, 1920, 1940

1920 1940
Handloom Industry
Workers 2,407,3001 (..)
Looms 2,025,0002 2,193,262
(Cotton looms) (..) (1,417,200)
Idle looms (..) 265,464
Production (million yards of cotton cloth) 931 1703
% of domestic cotton cloth consumption 25 28

Mill Industry
Workers 332,200 625,0003
Looms 117,558 199,0003
Production (million yards of cotton cloth) 1,529 3,738
% of total domestic cotton cloth consumption 44 62
Notes:
1. Census estimate of ‘actual workers’.
2. There was a handloom census in 1921, which did not cover several major states and
provinces. The 1940 estimate is more comprehensive. I multiply the 1940 loom age
with the 1920:1940 ratios of looms in regions covered in both years, to derive an
estimate for 1920.
3. Refers to 1943.
Source: India, Fact-Finding Committee (Handlooms and Mills), (Delhi, 1942), Ch. II.

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In short, in the early twentieth century, we have a scenario where the weaving industry was
expanding in output and labour productivity. The growth, however, was by no means a smooth
one. Rather it was violently disrupted by the First Word War, which created an acute scarcity of
yarn and imposed an inflation tax, and the Great Depression, which created a problem of
demand that was handled ultimately by brutal adjustments in real wages all round.
Nevertheless, there was growth. What accounts for this growth? Who gained from this growth?
The factors sustaining this growth were, on the demand side, an expansion in average
cloth consumption partly as a result of fall in cloth prices (the Morris effect), partly that of
agricultural growth in some areas, and partly tariff protection to the textile industry from the
mid-1920s. It is suggested that growing nationalist sentiments in the interwar period, the
ideology of ‘Swadeshi’, helped the handloom weaver. But, in fact, the Swadeshi ideology never
singled out the weaver for particular preference, and its campaign against foreign yarn and
campaign for Indian mill cloth hurt the weaver who consumed a lot of foreign yarn and
competed with the mills. Further, its impact was variable over space; in Bengal where
Swadeshi sentiment was the most intense, handloom weaving actually declined in this period.
On the supply side, there was increasing diffusion of labour-saving tools adaptable to small-
scale workshop and household production, and changing industrial organization from
households to wage-labour-using workshops.
The fact of a survival, even revival, in weaving in the late nineteenth or the early
twentieth century has recently led to a modification in the ‘de-industrialization’ perspective. The
experience of weaving seems to suggest the gradual unfolding of a particular form of low-key
industrialization intensive in skilled artisanal labour, consistent with the long-term resource
conditions and clothing preferences in the region. Resources and the culture of consumption can
shape industrialization trajectories – that seems to be the general lesson from the history of
weaving.

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3. Types of weavers

3.1 Introduction

The silk saree industry structure is a complex web of many actors like weavers, master-
weavers, traders, raw material suppliers (who are big businessmen), and people involved in
dyeing silk, designing, card making (which are used in the handloom to guide the silk
according to the design), and zaridozi (embroidery). Though changes have taken place in the
structure of the industry and in the relationship between various actors involved in handloom
production in the cluster, it continues to be primarily feudal in character. There are two types
of loom owners. One is an independent producer who buys the raw material and sells finished
sarees. The other type is one who is attached to a particular trader who provides design and
raw material to loom owner. The payment in the case of the former is on the basis of price
negotiation while in the case of latter it is a fixed conversion charge (piece rate). Many
traders are also owners but they contract out their looms to weavers.The weavers, the main
workers, who do the actual job of weaving a sari, can be separated into distinct categories.

3.2 Self-employed Weavers:

Weavers under this category have their own loom and buy their own raw material on credit
from the raw material supplier. They weave the actual saree and then sell it to the trader or
exporter directly or through middleman. The trader may sometime, help them in getting the
raw material on credit. These weavers can be an individual weaver or a master-weaver. Self-
employed weaver, who design and weave and even get other weavers to weave on his
handloom or on the weaver's own hand loom, the Master weavers supply material, design,
colours, and the ideas. These weavers engage wage earners and looks after the complete
operation of the weaving process and the marketing of the fabric. The weaver earns meagre
wages for the preparation of sarees, which may take him 5-6 days to 12- 15 days. Therefore,
this weaver has no option but to work hard to weave a saree in a shorter duration to earn
more. This renders weaving an activity in which weavers are exploited. While they work
harder, they in fact contribute to the greater profit of the Master weavers. Loom owners or
Master Weavers have access to the market and the demand trends. The numbers of these
traders are only around three hundred. Hindus dominate the trading community while
weavers are mostly Muslims. The weaver is only concerned with the production and is cut off
from the market. They depend upon the traders for design and sale of their produce. In the
city, the looms owners are mostly Muslims of weaving community living in different
pockets/mohallas. The number of such weavers and master-weavers are on the decline over
the last decade.

3.3 Contract Weavers:

Individual weavers, who get raw material from the trader or master-weaver and weave a saree
for wages, wages are determined on the basis of the intricacy of the design and bargaining
capacity of the weaver, which has weakened considerably during the last decade as the
industry is facing a slump. If the weaver is working under a master-weaver, his wages are
even lower as the master-weaver takes a cut. Weavers who work under a master-weaver earn
only 80% of the wages they would have received if they were working directly under a
trader.

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3.4 Loom less Weavers:

Weavers, who do not have their own looms, are employed as a wage earner on a handloom
by the trader or master-weaver, where they are supplied the raw material and weave the saree
Another kind of loom less weaver is the one, who has been given a loom by the trader
installed at their home and they take raw material from the employer and weave a saree. The
loom continues to be owned by the trader and weavers is paid only wage. Loom less weavers
are typically found in rural areas.

3.5 Cooperative Society Members:

Weavers, who are members of cooperative societies, But according to weavers, a majority of
the cooperatives are controlled and 'owned' by the traders themselves. Most of the traders are
members of the cooperatives and also have their own business in the form of a registered
firm. The poor weavers are rarely members of these societies and even if they are members
they get no benefit except for getting job-work weaving orders placed by the traders.
However, to ameliorate the conditions of the weavers, the government intervened and
established co-operatives. The objective was to end the isolation of weavers from the market
and vertically integrate them with the source of supply of raw material on the one hand and
with the actual market on the other.

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4. WEAVING STYLES IN INDIA

 Brocade: - The art of weaving is quite popular in Indi, since the old times. It
has been creating wonders and getting huge acclaim from world over for their
distinctive style. The basic cloth required for this form is silk as it is quite
durable and stylish. Some of the weavers also make use of a mix of silk and
cotton. With a variety of silk and cotton fabric available in India, one can get
to see uniqueness in every piece. It is usually done in Varanasi in the state of
Uttar Pradesh

 Baluchari: - The art of Baluchari weaving came from Baluchar, a place near
Murshidabad. Its best feature is that of using human brocade figures for
decorating pallu and borders. What makes this weaving style more elegant is
the use of fine quality silk and silver zari work. Generally, in this pattern, the
ground colors are beige, red, blue and pink with contrast colored borders. The
entire masterpiece of Baluchari work enables the wearer to adorn a touch of
grace and stands out of crown for being exclusive.

 Jamawar: - The art of Jamawar was brought to Kashmir by Persians, centuries

ago. But, it grew and reached its zenith in the Mughal period. From that time
to now, the art of Jamawar reflects a perfect blend of beauty, warmth and
luxury. What made this style exclusive is the design based on flora and fauna.
In fact, the most demanding patterns have been jaldar and buti work. Jamawar
style of weaving is quite famous for a mix of creativity blended with
traditionalism. Its beauty lies in the stylishness of intricate designs.

 Paithinai: - Belonging to the state of Maharashtra, Paithani art is known for

fine weaving of embroidery and complex bleaching/ dyeing of the material. It
is, in fact, a merger of ethnicity and classicism

 Ikkat: - Ikat is quite well-known for classy thread work, along with tie and dye
process. Famous in Gujarat, Andhra Pradesh and Orissa, this weaving style is
known by various names in different towns. It is the intricacy and beauty of
the Ikat that has made it popular worldwide and a favorite among many
people.

 Chanderi: - Chanderi is a town near to Gwalior, which is famous for hand

woven silk sarees. This style of weaving is considered to be extremely fine
with intricately woven borders. Saris designed from this art were exclusively
known for their gossamer shimmer and delicacy.

 Maheshwari: - The Maheshwari saree is quite famous for its sheer beauty and
gossamer thin blend of silk and cotton yarn. This weaving art is carried out
either on a pure cotton fabric, or a mix of silk and cotton. It is characterized by
geometrical motifs, such as small checks or stripes made on the cloth with

11
 dark colored border. It belongs to Maheshwar a small town in Madhya
Pradesh

 Jamdani: - The art of weaving Jamdani started years and years ago that finds
mention in Kautilya’s Arthashastra. . Jamdani is a patterned piece of muslin
cloth used for embroidery during weaving process. It, usually, contains
geometrical and floral patterns dyed in a light shade. After this, the designs are
drawn on it using colors like maroon, white, green, black, silver and golden
color.

 Kota: - The style of Kota Doria started 200 years ago, when some weavers
from Kaithun (near Kota, Rajasthan) used to weave coarse plain fabric. With
unique patterns and motifs, this design form has enabled people to showcase
culture in the best possible form. The uniqueness of this art lies in its stylish
weaving with colorful threads and intricate motifs.

 Pochampalli: - Pochampalli is a place in Andhra Pradesh, which is world

famous as Silk City. Almost 100 villages in this region are involved in
weaving Pochampalli saris. What makes them exclusive is a perfect mix of
history, tradition, culture and modernity. With the use of traditional looms,
Pochampalli sarees are woven intrinsically beautiful.

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 5. Industrial organization in the handloom industry

The organization of the industry encompasses a set of functions which guide the production
system and relations. These are: i) supply and distribution of yarn and other inputs; ii)
collection and marketing of finished products; iii) arrangement of pre-weaving and post-
weaving ancillary facilities to the weavers; iv) promoting improvements, innovations in the
prevailing technology, designs and skill (v) provision of finance. The smooth functioning of
the production system depends largely on the availability of raw materials and other inputs at
reasonable rates and sale of finished products. This requires the existence of a copious and
well organized raw material source as well as an efficient distribution and marketing
infrastructure which can curb the present monopoly of mahajans. Unfortunately, the failure of
the government to control the supply, distribution and marketing operations and to arrange
ancillary facilities to the weavers that encouraged the infiltration of mahajans in to the
system, who ultimately enjoy the final profit margin. Notwithstanding the various efforts
initiated by the government for instituting an efficient infrastructure able se to develop
organizational control over the handloom weaving industry in the state, it is the mahajans
who are in the fore front with a parallel but much more efficient organization system for
production, distribution and marketing and also for innovations in designs, patterns and
techniques of weaving. Pattern of Ownership On the basis of the difference in the types of
ownership we may distinguish four major classes of weavers a) mahajans, b) master-weaver
(c) owner independent weaver and d) wage worker. Both mahajans and master- weavers
enjoy almost an equally dominating status in the weaving community, but the characteristic
difference between the two groups lies in the fact that the master-weavers usually work
themselves on one of their looms and engage wage-workers on the other looms. Mahajans do
not normally work on looms; they are the suppliers of yarn to their wage-workers as well as
selling agents for their products on the basis of a wage system. Thus, in spite of their non-
active participation in production function, the mahajans are in a position to assert an indirect
but oligopolistic control over the entire production and market mechanism in the handloom
sector and enjoy the lion's share of the profit.
Different types of middlemen operating in the handloom industry in India have been
described: "There is first of all, the sow car-weaver (often called master-weaver) who
employs under him weavers mostly of his own caste. Secondly there are the merchants, either
of yarn or cloth or both, who are keenly interested in the supply of cloth of qualities required
or in adequate quantities thirdly, there are the contractors who bring the weavers together into
small factories or workshops. The first two types of employers leave the weavers to work in
their own looms and other appliances; rather, they prefer this because they could get work
done without incurring the cost of looms and working sheds. The master-weaver was not an
employer of labour, and he paid no regular wage to the apprentices who learned weaving
under him. But in modern times, owing to the growing prospects of trade, some of the well-
to-do weavers have set up as merchants, and they employ their fellow caste-men under them
for a wage or on other forms of contract''.10 The owner-dependent weaver has his own loom
and raw material and thus works independently But usually his economic status is far from
satisfactory. Theoretically the economic position of the independent weaver is excellent. He
is force to produce what he welts and work when it is convenient for him. He works in the
midst and with the assistance of his family. But all this does not help him in business. He has
only a limited market and when there is no demand for his cloth, he is not able to hold back
his produce until price improves. He often sells his cloth in the bazar on direct sale basis
because he cannot wait, and therefore when he is pressed for money he would even sell his
cloth at anything above the cost of yarn. Thus ordinarily the earnings of the independent

13
weaver are low and his economic condition is unsatisfactory. The wage-worker is essentially
dependent on mahajans or master-weavers for either raw material or for both loom and raw
material to earn his subsistence. Among the rage earners a few work with the primary
weavers' societies, but often these societies fail to provide the member with yearlong
employment. While a wage earner is working for the master- weaver on master-weaver's
loom, the wage is for individual labour, whereas the wage-worker employed by the mahajan
working with his own loom and appliances gets the assistance from his family members. In
accordance with the two types of wage systems, there are two types of wage-workers,
namely, "contract worker" and "out-worker," can be recognized; the contract worker works
on a contract basis for a merchant or sow car-weaver, while the out-worker weaves with the
raw materials supplied by the middle-man for a fixed piece wage, part of which is sometimes
given as an advance.

The structure of the industry and the relationship between various actors involved in
handloom production in the cluster, it continues to be primarily feudal in character. There are
two types of loom owners. One is an independent producer who buys the raw material and
sells finished material. The other type is one who is attached to a particular trader who
provides design and raw material to loom owner. The payment in the case of the former is on
the basis of price negotiation while in the case of latter it is a fixed conversion charge (piece
rate). Many traders are also owners but they contract out their looms to weavers.

14
 6. Wages and working conditions

Weaving activity can be 1st bifurcated into (a) organized sector and (b) unorganized sector.
In the organized sector, weavers get employment with assured monthly income, health
benefits for the weaver and their families, post-retirement benefits in for and of pensions or
gratuity. The unorganized sector that constitutes a large proportion of the total employment in
the industry can be divided into power looms and handlooms. In power looms the weavers
get employment on regular monthly basis but on contractual basis or daily wage basis.
Normally, weavers are not employed directly by the owners of the weaving sheds; they are
employed by the contractor, who pays them which means that they are not on the roll and no
detailed salary records etc. Apart from salary no other benefits like in the organized sector are
provided to them.
In the hand loom sector hand loom weavers get employed either by getting hired by small
weaving clusters that pay them on daily basis or operating from his home individually, and
earns his living on job to job basis.
Weavers in the handloom sector work under most appalling condition, where neither
negotiations nor contract exists. It pushes weavers' deeply exploitative conditions, where
loom owners violate all labour legislations and pinning down the weavers in never-ending
cycle of privation.
Weavers toil hard in a condition where there no alternative opportunities left to them.
Majority of them, have been working in the industry since their childhood. As regards wages,
silk weaving industry they are able to weave a saree in almost 10 days and they get
something around Rs. 350-400, however, the actual sum depending upon the quality of the
weaving. Weavers, work on the looms for nearly 12 hours a day. During the marriage season
when the demand for silk sarees increases, then the weavers have to work for long hours.
Even prior to Id festivals when weaver need money, then most of the weavers toil for almost
16 hours a day. In the silk saree sector, dismal scenario abounds pertaining to the wages of
the weavers. There is no system of written contract, the weavers go and buy raw silk from the
market or from the loom owners. If it is the latter, then it is an advance by the loom owners to
the weavers and when the weavers have finally woven the saree, the loom owners generally
take it. Till the time the saree is not sold in the market, the weavers do not get anything. The
other arrangement is that a weaver gets the design and silk from the loom owners and then
weaves a saree. However, weaving normally spans 7 to 10 days and the saree is then given
back to the loom owners. The weaver gets a wage payment, only when the saree is sold. In
the meanwhile during the intervening to manage his financial requirements, weavers have to
take advance from the loom owners thus entering into a form of bondage with the creditor.
Such practices are also common in the saree industry. The possibility of additional wage
earnings, coupled with no assistance from the weaver's co-operatives forces the weavers to
take their children out of school and ask them to work at homes in saree weaving. It came as
a surprise that in saree weaving areas though a large number of weavers' families have been
into this occupation for the last two to three generations, majority of them do not even own a
loom. All looms are on contract and are owned by loom owners, who provide the weavers
with the necessary raw materials. Weavers are capable of earning about Rs. 400 to Rs. 500
for a saree, which in turn requires about 8 to 10 days for completion. However, there has been
virtually no increase in the wages for the past five years. Most of the women folk of the
families are involved in nari bharai (a continuous process when the yarn for the weft is
reeled on small cylindrical object called bobbins) and children work for nearly 16-20 hours
over a period of a week. The weavers have taken as a fait accompli to work under such low
wages so they refrain from making any effort to set up our own looms. This is because the

15
weavers feel that, if they set up their own looms, then their own funds would get blocked.
This is because their 'staying capacity' is too low to sustain during the lead-time when the
saree is given to the loom owner and payment is received. When the weavers face financial
crisis, most of them tend to take advance from the loom owners. Weavers are not willing to
take any loan from the local moneylenders. The repayment of the loan is done in equal
instalments at the time when completed saree is given to the loom owner. Weavers know that
by taking advance or loan from the loom owners they actually get into some sort of bondage,
till the entire loan is repaid. But we have no option left but to depend on the loom owners.
However, for majority of the weavers, though the element of indebtedness is not there
because no interest is paid on the amount taken from the loom owners At times, when
weavers feel harassed at the hands of these loom owners, they look for a new master/loom
owner, paying the loan taken by the weaver. In this way, the weavers keep on working for
one master/loom owner or another but bondage remains the same, only hands change.

Weavers toil hard, starting their work at 8.00 a.m. till 6.00 p.m. at a stretch spanning 10 to 12
days but earns a miniscule Rs. 350/- on a saree. During 10 to 12 days, the women and
children in the family do the other side work needed during the weaving but they are not paid
for it. Weaving industry has reduced women to the status of unpaid workers. Though these
are important tasks but neither it’s given recognition nor the value that they deserve and even
it’s not included while fixing the pricing of the final product.
The plight of women is such that even if they earn Rs.10/- they do not have the right to spend
it. They work, trapped in dark hovels like chicken. Their contribution does not have the kind
of recognition that it deserves. Their contribution is not accounted for while the product
pricing is done. There has been no work done with women, and for any change to happen in
the sector, their education, organisation and struggle for their rights will need utmost priority.

The handloom weaving industry in India depends upon state and central government support
for its survival. The industry depends upon skilled weavers, who for generations made a good
living out of weaving. The handloom weavers in Uttar Pradesh state, Varanasi particular, are
known for their skills of weaving intricate designs, which often take days and months to
finish.

After the introduction of the power looms the handloom weavers were thrown out of
business. To catch up, the weavers tried to form unions and co-operatives. These attempts
were successful in some states like Kerala, where the government supported its local weaving
industry with special packages. However in places like Uttar Pradesh, the state government
neglected the industry to such an extent that the industry is now dead.

Most of the weavers in Uttar Pradesh and surrounding places are from the Muslim
community that finds isolated in the Hindu majority community. Adding on to the burden
there is a huge import of cheap materials from countries like China which has broken the
backbone of the entire handloom industry in India. The result is acute starvation and hunger
in the weavers' families. Faced with lack of market for their product and resultant poverty,
soon several members of the weavers contacted tuberculosis.

Tuberculosis treatment and its success depend upon good medical conditions and nutritious
food. Due to the failure and neglect of the government sponsored health centres and the
inability to afford proper food, tuberculosis has spread uncontrollably in several parts of Uttar
Pradesh among the handloom weaving community. Once a member of a family is infected,

16
several other members also get infected with tuberculosis. Lohta village in Varanasi district
of Uttar Pradesh is one example.

Out of an estimated 200 families of weavers some 50 persons are infected with tuberculosis, a
preventable and curable illness in modern India. The plight of life of the following families
tells the sad tale of government neglect, exploitation and starvation of many families, if left to
their fate will soon perish. India being a country that produces some of the high quality drugs
exported all over the world at the lowest prices denies proper medical treatment for its own
people.

The government initiated cooperative societies which are supposed to provide insurance and
thrift funds to its members but being plagued with mismanagement and corruption,
cooperatives failed in their appointed task. Benefits failed to reach the poor weavers. The
loom owners, with the help of dummy memberships of the cooperatives, try to appropriate
the benefits which are actually given by the Government to the cooperative societies. The
provision of insurance and various other funds exist only on paper. Instead of ameliorating
the plight of the weavers, it can be inferred that the Government run cooperative institutions
created further misery for them, by helping create another set of exploiters - the master
weavers.

However a silver lining here was the khadi movement initiated by Gandhiji during the time of
freedom struggle. Gandhiji thought unemployment to be a women’s issue, and therefore
symbolically as well as practically he introduced the ‘charkha’ (spinning wheel) as an
instrument of the freedom movement. The propagation of khadi was to protect the
employment of the poorest women. Spinning was an important home industry during the
nineteenth century. It was source of livelihood for women of all castes, communities and
even for the women of low income levels. Many widows supplemented their family income
by spinning cotton yarn. Muslim women, who were not allowed to step out of their homes to
earn livelihood, spent their time, spinning cotton thread. Thus spinning wheel brought
economic independence, especially for women. Before 1947, the expansion of khadi was
associated with mainly the goal of political and economic independence. After independence
and in the absence of Gandhiji there was almost a rapid change in the attitude of the leaders.
Significance of khadi changed from ‘Livery of freedom’ to saleable article. Khadi over the
decades has moved from a freedom fighter’s identity fabric to a fashion garment. At one time
it was secured as fabric for the farmer and rural wearer. Today there is such an increasing
demand for khadi is that despite the million (women) workers all over the country involved in
spinning it they are unable to meet the demands of the market. Many women contributed in
Gandhiji’s khadi activities. Even today women are mostly involved in the production of khadi
in one of the five year plan reports. There are interesting figures 2.75146 villagers including
19,645 Harjans(untouchables) and Muslim scattered in at least 13,451 villagers received as
spinners, weavers etc. Rs.34,85,609. The spinners were largely women. Now approximately
16 lakhs women are involved in different khadi related associations. If they spin the cotton
for eight hours a day they get Rs. 60 to Rs. 80 today with the help of new techniques.

17
 7. Role of government

7.1. Policies by the government

7.1.1 Objective behind the policies

The Indian government’s policy on handlooms till recently had an obsession with
employment generation at the expense of other objectives such as efficiency and growth.
The overall policy on handlooms on the part of the Indian government had 4 instruments:
 Focus on forming and strengthening weavers’ co-operatives as part of a rather
complex organisational structure that also included “apex bodies” at the state and
central levels and is supposed to provide inputs, and credit and marketing channels to
weavers..
 Improving productivity and quality through improved looms, imparting new skills,
designs and technology to weavers.
 Provision of subsidies, including assured supply of cotton yarn and credit at
subsidised rates; and other forms of protection including reservation of certain items
for the handloom sector. Under the Hank Yarn Obligation Order of 1985, 50% of yarn
production by spinning mills has to be in the form of hanks, for handlooms.
 Setting up of welfare schemes to help weavers improve their livelihood and working
conditions.

The primary objective of the government’s policy on handlooms since 1950 was the
production of cloth for the masses in sufficient quantities and at reasonable prices. A range of
varieties of cloth was reserved for production in the handloom sector, especially controlled or
“Janata” cloth (that is, cheap cloth for poor, rural households). Moreover, the mill sector was
forbidden in 1956 or thereabouts to install new looms to increase their capacity. The Textile
Policy of 1985 was a continuation of the earlier policies of protection to handlooms in the
form of reservations and hank yarn obligations, while the Textile Policy of 2000 was much
more of a departure. For instance it recommended that the least skilled weavers should be
shifted to semi-automatic power looms, and that the Hank Yarn Obligation Order be
reviewed.

7.1.2. Schemes

Government subsidies and protective measures include reservation of 11 varieties of cloth

for the handloom sector; subsidy for Janata cloth that ate up over 50% of the total allocation
to the handloom sector in the early 1990s until it was disbanded in 1996.
Credit and marketing support by the government includes cash credit assistance at
concessional rates to primary co-operatives and state-level apex bodies. Credit allocations
across the states and districts are highly skewed and are based on very little verification of
credit requirements. There is much evidence of bogus co-operatives that have cornered a
large share of government credit.
Government modernisation schemes have included the promotion of frame looms and
jacquard looms, training to weavers in new techniques. Several drawbacks with frame looms
that weavers have identified themselves such as less flexibility, having to weave in work
sheds as opposed to in the house, more physically difficult, and substantial additional
investment expenses which weavers cannot afford.

18
The Indian government has also initiated many developmental programmes and
welfare schemes for weavers. For example the Handloom Development Centres Schemes
introduced in 1993 and the Handloom Village Development Scheme, the Work shed-cum-
Housing Scheme, and the Thrift-cum-Savings scheme. It is hard to differentiate one
government scheme from another as their goals are vague and they lack clearly defined
priorities. They also seem to be devised by New Delhi and implemented at the state level
without much reference to regional specificities or requirements.
Handloom Boards in India

It is the promotional concern and for establishing foreign markets that the Indian Government
has set up various boards. The main task of such boards is to look after the production level,
export and import facet, making schemes effective and providing necessary funds for the
growth of handloom industry. Along with this, their work process also includes providing
advice to the government on the matters of implementing new technologies or trends. All this
helps in making the backbone of handloom industry ever more strong.

Janashree bima yojna: - This scheme is from the Life Insurance Corporation of India for the
khadi workers between the age of 18-59 years and who are below or marginally above the
poverty line. The scheme requires a premium of rs.100 per annum per member, 50% of the
premium of the scheme is borne by the government of India from the social security fund.
The benefits are payable under the situation of death or accidents.

Handloom export promotion council: -

The Handloom Export Promotion Council, registered under the Companies Act, 1956, was
constituted in 1965 by the Government of India as the nodal agency for export promotion
efforts related to the cotton handloom textiles.

The Handloom Export Promotion Council provides a wide range of services:

» Dissemination of trade information & intelligence;
» Publicity abroad for Indian handloom products;
» Organisation of business missions/buyer seller meets and participation in International trade
events;
» Consultancy and guidance services for handloom exporters;
» Liaison with the Government of India on all procedural and policy matters relevant to the
handloom export trade;
» Dealing with trade complaints pertaining to handloom exports;
» Liaison with the commercial agencies abroad for augmentation of handloom exports;
» Facilitating product diversification and adaptation to meet modern market requirements;
» Providing impetus to modernization of handlooms for the export market; and
» Provision of design inputs to promote export of handloom products.

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7.2 Criticism of the polices

 The Janata Cloth Scheme de-skilled weavers by making them shift to poor quality
cloth.
 Only 30% of weavers are covered by weavers’ co-operatives.
 The economic condition of weavers has not improved despite a plethora of
developmental schemes for weavers.
 Steep increases in cotton yarn prices. In the 1990s export-oriented spinning mills were
set up, which enjoy advantages over spinning mills in the Domestic Tariff Area,
because of which there was a steady increase in yarn exports and a steep rise in yarn
prices.
 Building of unsold stock and delayed payments by apex societies to weavers’ co-
operatives has resulted in further deterioration of weavers’ livelihoods.

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8. Impact of globalisation

8.1. Introduction

In the broad sense of a significant participation in world trade, the Indian textile industry had
been ‘globalized’ for at least 200 years before 1950. In the period 1950-85, the level of
participation receded, and the influence of such ‘global’ variables as comparative factor cost
or productivity on the textile industry declined in a regime protected by tariffs, quotas, and
artificial exchange rates. The last 15 odd years has seen a return to globalization aided by
limited reduction in tariffs and quotas and market-driven exchange. But this global world was
a different one from the one before. If craftsmanship was the source of India’s unique
advantage in the eighteenth century, it was cheap labour in the late-twentieth century. But
cheap labour was spread the world over, and capital being very mobile, competition in
labour-intensive textile manufacturing was intense. In short, for a developing country,
globalization was both a bundle of opportunity as well as a challenge.
As one would expect, therefore, the effect of market opening has been mixed. In general,
the market reforms led to sharp acceleration in employment and investment rates in the
labour-intensive consumer goods industries, while leading to a deceleration in wages. Export
opportunities played a role in the expansion, whereas internal labour mobility and access to
informal and female labour accounted for the slowdown in wages. Export opportunities came
as a boon for the apparel industry, and for the power looms who sold them the fabric. The
stagnation in real wages, together with rise in productivity, implies increase in profitability.
Lured by these prospects, in these highly labour-intensive and low-investment firms, an
estimated one million jobs were created in the course of an export boom in the period 1985-
96, nearly all of it in the informal sector.
But the experience of exporting also revealed serious weaknesses of the supplier firms,
weaknesses that arose due to inexperience, ‘asymmetric information’ and chances of fraud,
absence of regulation, and above all, poor infrastructure. On the whole, the informal sector
firms have emerged as a major supplier to the world market, which entails a very large
expansion in employment. But, individually, many of these firms are vulnerable, and so are
the individual workers.

8.2. Impact on silk weaving industry

The silk saree weaving industry witnesses a major impact of the globalisation, demand of
Banarasi sarees has shown a downward trend over the years. Since the 1990s, when the
economic boom has been sweeping the nation, the wages of the weavers are declining day-
by-day. Though the quality of the saree has gone up but it does not commensurate with the
wages of the weavers. Presently, weavers who toil for 12 to 16 hours get half of the wages,
which they got earlier. Moreover, the power looms have wreaked havoc in the lives of the
weavers by snatching their work and pushing them to starvation. The middlemen and loom
owners are taking full advantage of their helplessness. Weavers' woes never ends,
shopkeepers add one more to it by burdening them with complicated and tougher designs and
further harass them by claiming that there are no buyers for the finished products. Such
manoeuvring tactics are used as ploy to push the weavers to the brink of disaster and further
tighten the noose on their necks of the weavers. As regards the availability of raw silk, it
appears that the industry is passing through a phase of crisis. There is often an artificial

21
scarcity of raw silk is created by traders. If a small weaver was to go to the market to buy
silk, then it would be difficult for him/her to buy in larger quantities who at the lowest rung
of the industry neither have purchasing capacity to buy raw silk in huge quantities nor they
have enough business in which the raw silk, if purchased could be used. However,
interventions either by government co-operatives or community cooperatives in helping the
weavers to gain easy access to raw silk, has been not of much positive consequence so the
small and marginal weavers are left out in the bargain. They also do not have enough money
at their disposal to block it by way of purchase of raw silk at the so-called subsidised rates
offered by the cooperative. 'Economic reforms' of the
Central Government has harmed the sector with the unhindered entry of the Multinational
Corporations (MNCs). Imported Chinese silk, which are cheaper, have flooded the market,
which is brought via Nepal and available at Rs. 1100/- per kilogram so it has become the first
choice for the artisans. While MNCs are being given a free hand to operate but so-called
weaver friendly cooperatives are allowed to decay, at the cost of the marginalised weaver.
Surat produces artificial silk (viscose) thread, which is available at a much lower price. Also,
the Banarasi saree designs are being copied and to produce duplicate Banarasi sarees using
artificial silk like material. However the deluge of artificial silk has pushed the Banarasi silk
sector, reducing its business. It has resulted in further reducing the cost of the exquisite
Banarasi saree produced in handlooms.
When the product is substandard or the product loses its demand in the market, the weaver
has to sell it at a price that may not even cover his labour cost. In the weaving industry,
imitation is not valued. The product with a unique design, pattern and texture commands a
high price. As soon as the design is copied, the product gets devalued. The weaver has to bear
this loss. Change of product invariably involves substantial investment that affects the
weavers adversely. Power operated looms also compound the problem, as an electricity
connection is not easy to come by. Moreover, continued declared and undeclared power cuts
add to the agony.

8.3. Migration due to liberalization:

The policies of liberalisation have in fact had a deteriorating effect on the weavers' wages and
employment. The exploitation has reached its zenith, throwing skilled artisans from the sector
and pushing them to obscure work profiles, such as pulling rickshaws, peeling and selling
green chanas, making incense sticks, cleaning garbage heaps. Women have started working
as domestic maids in middle class houses in their neighbourhood.

8.4. Flaws in the government policies

Handloom weavers are facing severe livelihood crisis because of adverse government
policies, globalisation and changing socio-economic conditions. The national and state
governments do have several schemes pertaining to production inputs, market support and
development, meant to safeguard the interests of the weaving community. Ineffective
implementation of the schemes and the changed context of textile industry, increasing
competition from the power loom and mill sectors have been largely responsible for the crisis
in the handlooms. Lack of information to weavers regarding various policies and schemes is
no less a significant cause for the dwindling fortunes of the weaver community. Even
government departments and implementing agencies related to handloom suffer from
inadequate information and data resulting in a widening gap between policy formulation and
implementation. In the recent decades, due to lack of information and fast paced changes,
practices in handloom sector became static and apparently redundant.

22
Presently, government policies are increasingly influenced by the globalisation processes and
are related to WTO-induced trade regimes. As the controls on exports get liberalised and
domestic markets open up, the textile scenario in the country is likely to undergo drastic
changes in terms of skills, inputs like designs, market trends and changing demands therein. 
In earlier planning processes at the national level, development of handloom sector was seen
as a stimulation for rural development, being based on local resources, local craftsmanship
and catering primarily for local markets. In the first decades following India's independence,
all national policies emphasised this. However, current thinking at the apex policy level is
that the handloom sector is a redundant profession and is a burden on the government
exchequer. Political leadership, in general, has been avoiding taking up cudgels on behalf of
the weaver community. 

23
9. Conclusion

The weavers of India thus constitute a large part of the unorganized or the informal sector in
the country. Without any stable income, old age security through pensions or reliance on their
younger generations, accessibility to easy and non-burdening loans and insurance facilities;
the only assistance to these weavers, is the government. It is time that the state should realise
the prominence of this ancient art and give priority to safeguard the interests of the beholders
of this tradition.

9.1 ILO proposition

The fourteenth Asian Regional meeting of the ILO recently organized in Busan, Republic of
South
Korea (August 29th – September 1st, 2006) endorsed an Asian Decent Work Decade (2006-
2015), during which concentrated and sustained efforts will be developed in order to
progressively realize decent work for all in all countries. During the proceedings, social
protection was explicitly mentioned as a vital component of Decent Work by a number of
speakers including the employers and workers representatives. The need to roll out social
security to workers and their families in the informal economy, to migrant workers and to
non-regular workers in the formal economy was also perceived as a major national social
policy objective. The need to enter into a more intensive dialogue with respect to the design
and financing of national social security systems to equip them to cope with the new
requirements and challenges of a global economy also emerged as a major outcome of the
meeting.

9.2 Initiatives by the Indian government

The challenge of providing social security benefits to each and every citizen has already been
taken up in India. In 2004, the United Progressive Alliance (UPA) Government pledged in its
National Common
Minimum Programme (NCMP) to ensure, through social security, health insurance and other
schemes the welfare and well-being of all workers, and most particularly those operating in
the informal economy who now account for 94 per cent of the workforce. In line with this
commitment, several new initiatives were taken both at the Central and at the state level,
focusing mainly on the promotion of new health insurance mechanisms, considered as the
pressing need of the day. At the same time, and given the huge social protection gap and the
pressing demand from all excluded groups, health micro-insurance schemes driven by a wide
diversity of actors have proliferated across all India. While a wide diversity of insurance
products has already been made available to the poor, health insurance is still found lagging
behind in terms of overall coverage and scope of benefits, resulting in the fact that access to
quality health care remains a distant dream for many.

24
9.2.1 Introduction
The Indian Textiles Industry has an overwhelming presence in the economic life of the
country as seen throughout the paper through its contribution to industrial output,
employment generation, and the export earnings of the country. Currently, it contributes
about 14 per cent to industrial production, 4 per cent to the GDP, and 16.6 per cent to the
country's export earnings. The sector comes under the purview of the Ministry of Textile
(MoT), Government of India (GoI). Because of the high employment in the sector and the
cost disadvantage faced by handlooms as compared to the Mill & Power loom sectors due to
the manual nature of production, the GOI has followed a policy of protection of the sector
through interventions such as financial assistance and implementation of various
developmental and welfare schemes. As a result, the production of handloom fabrics has
gone up to 6108 million sq. meters in 2005-06, from 500 million sq. meters in the early fifties
accounting for 13% of the total cloth produced in the country (excluding clothes made of
wool, silk and hand spun yarn).

The various schemes being implemented by the ministry of textiles for Handlooms address
the needs of the weavers who belong to disadvantaged social strata and occupational groups
which are at the bottom of the economic hierarchy. Concerted efforts are being made through
the schemes and programmes to increase production, productivity, and the efficiency of
weavers and enhance their income and socio-economic status by providing skill up-gradation,
infrastructure and input supports to them. Under its welfare measures the MoT has
implemented life insurance schemes, a health package scheme, a thrift fund and a work shed-
housing scheme. The health package scheme evolved into the ‘Health Insurance scheme’ for
weavers which were launched in November 2005 under a partnership with ICICI General
Insurance Company for a two year period. In 2007, a new tender process was initiated and
with some modifications and increase in potential targets. It was renewed with ICICI again
for another 2 years.

9.2.2 Target population

Within the textile industry, the handloom sector is one of the largest employers in India,
providing employment to about 6.5 million people (second only to agriculture) as per the
joint census of Handlooms and Power looms 1995-1996. The sector represents the continuity
of the age-old Indian heritage of hand weaving and reflects the socio-cultural tradition of the
weaving communities. This sector is highly dispersed and handloom weavers can be found in
470 clusters spread across the country.

9.2.3 Insurance plan

 Eligibility
All weavers whether male or female earning at least 50% of their income from
handloom weaving are eligible to be covered under the “Health Insurance Scheme”.
The scheme is also open to the ancillary handloom workers such as those engaged in
warping, winding, dyeing, printing, finishing, sizing, “Jhala” making, “Jacquard
cutting” etc. The scheme covers persons between the age group of 1 day to 80 years.
The weaver and his/her family is covered, family being defined as the weaver, his/her
spouse and two dependent children. Weavers belonging to Primary Weavers Coop
Society, Apex Society/ Handloom development Cooperation’s are automatically
eligible, while weavers not belonging to these need a certificate from the State
Directorate of Handlooms that they are fulfilling the eligibility conditions.

25
  Exclusions
The insurance plan excludes coverage for corrective cosmetic surgery or treatment,
HIV-AIDS, sterility, venereal diseases, intentional self-injury, use of intoxicating
drugs or alcohol, war, riot, strike, terrorism acts and nuclear risk. It also excludes
critical illnesses such as cancer, paralysis, myocardial infarction, bypass surgery,
kidney failure, stroke, TB etc.
 Plan Benefits
The insurance plan includes the following benefits:
Hospitalization costs: Up to Rs 15,000
Domiciliary hospitalization: Up to Rs 4,000
OPD: Up to Rs 7,500
Limit per illness: Rs 7,500
Ayurvedic/Unani/Homeopathic: Rs 4,000
Dental treatment: Rs 250
Eye treatment: Rs 75
Spectacles: Rs 250
Baby coverage: Rs 500
Maternity benefit: Rs 2,500
 Premium Rate
The premium rate in the first two years was Rs 1,000 per family of four. The weaver
contributed Rs 200 per annum, while the Ministry of Textiles as contributor paid the
remaining Rs 800. Under the current scheme (2007-2009), the premium was reduced to Rs
781.6 per family with a similar contribution sharing.

9.2.4 Plan Distribution

In the first two years of implementation, the Insurance Company and its TPAs were to
popularise the scheme and produce information material in vernacular languages. A
prospective beneficiary was required to fill up an enrolment form and submit the same to the
State Directorate of Handlooms along with his/her share of the premium. The State DoH
scrutinised the application and forwarded the list of beneficiaries along with the premium to
the insurance company who issued the Health Cards along with statement indicating names
of individuals insured to the SDH, who informs the individual beneficiaries.
Under the current scheme the Insurance company has to fulfil the following responsibilities-
prepare information related to the scheme in vernacular languages in different states, provide
enrolment forms, enrol the weavers, collect the premium and deposit it with the state. In order
to carry out these tasks, the Insurance Company has recruited cluster coordinators who in turn
report to the district coordinators and ultimately to a state coordinator. Total ICICI staff
presently stands at 550. ICICI reaches the target members through various means – meeting
with the Gram Pradhan explaining the scheme and identifying the concerned families through
them. New meeting points such as Melas (fairs) and places of religious worship (e.g. Malwis
in mosques) were also used.

9.2.5 Service Delivery

Initially the Insurance Company had 3,500 empanelled hospitals across the country where
members could receive cashless services on showing the health card. This number has now
reduced to 1,650. In case a member chooses to take treatment in a hospital outside the panel,
the expenditure is reimbursed by the insurance company. A unique feature of this scheme is
the rural clinics that are also part of the network where a member can access cashless Out
Patient (OPD) services. Such clinics have a doctor and a pharmacist who can provide
consultation as well as access to medicines. The scheme has tried to locate such clinics for

26
each cluster. In the first year there were 10 and this figure rose fourfold in the second year.
Currently, there are more than 300 rural clinics associated with the scheme. In most cases
these were existing private doctors who were in a sense franchised into providing the
services. In some cases however, the Insurance Company also helped in setting up such
clinics.

9.2.6 Coverage
The scheme succeeded in covering over 1 million people in its first year of operation. It
recorded an explosive growth in Year III with 1.7 million families covered with an average
family size of 3.8 – over 6 million people – ranking second amongst the largest health
insurance scheme operating in India.

9.2.7 Contribution
From Year I onwards, the Government of India supported the scheme through a fixed
contribution (80%) to the premium. In Year III, this contribution decreased in accordance
with the lower premium that was re-negotiated with the insurance company. Over a three-
year period the total GoI contribution amounted to Rs 1,648 million. In addition to the
Central Government share, several State Governments also provided a contribution to the
premium, thus reducing the part to be paid by the policyholder. While the
State of Tamil Nadu contributed Rs. 50; most other States matched the weavers’ contribution
(Rs. 100 – 10% of the former Rs. 1000 premium). This contribution is not expected to be
affected by the recent decision to lower the premium amount.

9.2.8 Challenges
 The insurance plan has still to address the following main challenges:
 Geographical coverage: The scheme is presently covering a wide diversity of clusters
across the country, which creates brand new communication challenges;
 Overall coverage: The scheme already registered an exponential growth in terms of
the number of insured in its third year of operation which is still expected to further
increase next Year. This rapid growth puts severe strains on the accounting and
monitoring functions;
 Hospital network: The network has not stabilized over a three-year period. About half
of the health facilities previously associated with the scheme were disempanelled in
Year III;
 Dual service payment mechanism: Although relying on a still broad hospital network,
the scheme is not pure cashless yet and reimbursement operations significantly add to
the workload;
 Training and administration of a huge staff spread over various states;
 Huge gaps in the management information system, as demonstrated by the incapacity
to provide updated figures on all aspects of activities developed by the scheme – such
as insured demographic profile, gender-disaggregated data, number and cost of
claims, hospital-wise claims distribution, disease break up of claims, insurance plan
distribution and administration costs…

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 REFERENCES

 BOSE TARUN KANTI; GLOBALIZATION PUSHES VARANASI WEAVERS TO

HUNGER AND DEATH; PEOPLE’S VIGILENCE COMMITTEE FOR HUMAN RIGHTS;
ASIAN HUMAN RIGHTS COMMISSION
 COMPENDIUM OF TEXTILE STATISTICS (2000); TEXTILE COMMISSIONER;
MUMBAI
 DR. KAVITA V. SUCHAK; RURAL INDUSTRIALIZATION WITH SPECIAL
REFERENCE TO KHADI; PUB. YOGESH SUCHAK; PAGE 52 & 61
 HTTP://THAINDIAN.COM/NEWSPOTRAL/FEATURE/KARNATAKA-SILK-
WEAVERS-FRET-OVER-FALLING-PROFITS-DUE-TO-
GLOBALISATION_100210265.HTML.IXZZ0WKXUWVYN
 HTTP://WWW.INDIACRAFTS.COM/HANDLOOM
 HTTP://WWW.HANDICRAFTSOFINDIA.ORG/HANDLOOMSININDIA/HANDLLOMW
EAVINGSTYLESININDIA
 HTTP://WWW.KVIC.ORG.IN/UPDATE/INSURANCE_KHADI_ARTISANS.HTM
 INDIA: HEALTH INSURANCE SCHEME FOR HANDLOOM WEAVERS; ILO SUD-
REGIONAL OFFICE FOR SOUTH ASIA; SERIES - SOCIAL SECURITY EXTENSION
INITIATIVES IN SOUTH ASIA
 INDIA TOGETHER; VARANASI WEAVERS GET GI PROTECTION – 01 NOVERMBER
2009.MHT
 KUNDU ABANTI; PATTERN OF ORGANIZATION OF HANDLOOM INDUSTRY IN
WEST BENGAL PART ONE; SOCIAL SCIENTIST, VOL.9, NO. 1(AUG., 1980); PP. 18-
32
 MINISTRY OF TEXTILES; ANNUAL REPORT 2001-02; CHAPTER V; HANDLOOM
INDUSTRY
 M.K. GANDHI ; VILLAGE SWARAJ ; PUB. NAVAJAN ; AHEMDABAD ; PG. 3
 NATIONAL EXPORT PROMOTION COUNCIL; ANNUAL REPORT 2004-05
 NEVE GREET DE; WEAVING FOR IKEA IN SOUTH INDIA: SUBCONTRACTING,
LABOUR MARKETS AND GENDER RELATIONS IN A GLOBALVALUE CHAIN
 NIRANJAN SEEMANTHINI AND VIJAYAN SOUMYA; REPORT ON GROWTH AND
PROSPECTS OF HANDLOOM INDUSTRY
 PRESENT SCENERIO OF THE INDIAN WEAVING INDUSTRY; INDIAN WEAVING
INDUSTRY
 RAGHUVANSHI LENIN; INDIA’S DYING WEAVING INDUSTRY; GUEST
COMMENTARY; DECEMBER 13, 2007
 RAJ ANJALI AND DEVA SIDDHARTH; INDIAN HANDLOOMS: AN UNCERTAIN
FUTURE
 ROY TIRTHANKAR; NATIONAL OVERVIEW INDIA; TEXTILE CONFERENCE IISH;
11-13 NOV. 2004

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