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ABSTRACT
In the present time scenario unemployment is a very vital problem in a developing country like in
India. In this aspect up to some extent the handloom products of the handloom industry solve this
above problem. Handloom industry is coming under the small scale industry. Handloom is a rural
based and labour intensive industry. So, to make rural people economically independents, rural
industrialisation is a vital necessity through handloom industry. There are various handloom products
are produced by the handloom weavers in Odisha. Some of the products have unique demand in the
local as well as in foreign market and they have earned considerable profits and others have very
negligible profits even if they have incurred losses. Reduced in prices, increases availability, improve
the quality /colour, durability, innovative design, more varieties, latest fashion and trends, more
awareness, special market survey for handloom products, customization, suitable whether condition
and reduce intermediaries etc. are needed to improve the satisfaction level of handloom customers.
Various scholars have been studied about the handloom industry which termed as textile industry. The
present paper has both descriptive and analytical in nature. The data have been collected through the
questionnaire as well from the internet. It also has group discussion with around 100 handloom
weavers of Cuttack district. The present study attempts to analyses the profitability of handloom
products in Odisha. Various statistical tools like mean, standard deviation and chi-square test have
been used to analysis the profitability of selected handloom products of Odisha.
Keywords: SSI; Handloom; Handloom Weavers; Products and Profitability
INTRODUCTION
Odisha handloom products have a significance demand in the local and foreign market. Odisha has one
of the richest traditions of handloom and handicrafts in the country, which goes back to the time of
ancient. The ancient rock-cut caves and beautiful stone carvings drawn in the temples of medieval
Odisha provide a flash of the rich tradition of crafts, art and sculpture in the ancient past. In a poor and
industrially backward state like Odisha, these traditional industries like handloom and other popular
handicrafts such as stone carving, wood carving, silver filigree, applique, pattapainting, coir,
dhokracasting, bell metal works, etc hold considerable promise for economic empowerment and
provide gainful employment to the technically little qualified, less educated and poor in the rural non-
farm sector. It is found that next to agriculture, handloom and handicrafts sector is the major provider
of employment to the people in Odisha. Apart from that, handloom and handicrafts products of Odisha
Industry in Kerala” studied the price, profitability and employment in the handloom industry to make
detailed analysis of uniqueness of this industry and other important aspects such as organisation,
functioning and problems. He concluded that the handloom industry can solve the unemployment
problem in India to a great extent. Under the normal conditions the weavers are able to get at least 5%
profit when they marketed their products. But it cannot compete with power-loom sector.
Khan A. Shabinullah (1991)2 in his Mphil Dissertation “Production management in handloom industry
– a study based on Primary weaver’s co-operative societies in Paramakudi Taluk” studied about the
various problems of the handloom products and he concluded that the overall set up is rather
disappointing, discouraging and distressing the weavers in general because some of the societies are
bogus or defunct and existing only on paper to gain certain personal advantages. Some of the societies
are economically non-viable on account of low capital base of members besides low turnover,
inadequate working capital and continuous losses.
Singh Rajmani (1992)3 in his Ph.D thesis “Management in Handloom industry- A study of the
production and marketing of handlooms for Exports” studied the production of handlooms in the
country and identify the problems affecting it’s production along with the industry’s ability to meet
prospective demand both local and foreign. He concludedthat the design of the products have not been
changing according to taste, choice and demand of the customer. The result being that demand for
Manipuri Handloom has not been picking up.
M. Soundarapandian(2002)4 in his occasional paper of NABARD, Mumbai “Growth & Prospects of
Handloom sector in India” studied origin, growth problems and hindrance of handloom industry in
India since pre-independence period and post-independence period. He was mentioned in his paper
that the cotton clothes were largely exported to other countries. The yarn was hand spun and the cloth
hand woven and the super skill of weaker has been handed over from generation to generation.
K. Mahendra Kumar(2010)7 in his Ph.D thesis “An analysis of production and marketing of handloom
Fabrics in Andhra Pradesh – A case study of Prakasam District” studied the progress, production,
problems, marketing and the technology of handloom industry. He concluded that Handloom industry
is facing many problems related to technology, raw materials, working capital, production, pre-loom
process, marketing, competition, fascinating factors and other problems that compel them to commit
suicides.
Nadh Rayapati Raveendra, Rao P. Venkat and et al. (2013)8 in their topic “Handloom market: need for
market Assessment, problems and marketing strategy” they have studied the market assessment,
problems, marketing strategy and marketing mix etc. They concluded that Reduce the prices , increase
availability , improve the quality / colour durability , innovative design, More varieties , latest fashion
and trends , more organized , more advertising , increase awareness , special market survey for
handloom products , customization, suitable to weather conditions and reduce intermediaries etc. are
needed to improve the satisfaction level of handloom customer. Promotion / advertisement ,
availability / increase number of outlet ,exhibitions ,develop new designs , awareness , price to be
reduced , proper marketing , more customization of products, link it with brand India , improve the
quality , customer friendly services , improve durability , provide machines to weavers , remove
middleman from chain and fashion orientation etc. are needed to make handloom more popular.
A. Ramesh (2015)10in his topic “Analysis of profitability and Financial Health of the Handloom
weavers co-operatives societies in Karur District” studied the profitability and financial health about
the handloom weaver’s society. He concluded that there is no significance in achieving gross profit of
the various societies.
Boruah Rickey Rani and Kaur Satvinder (2015)1 in their topic “A study on the analysis of economic of
weavers’ cooperative societies in Assam” analyzed the business operation of selected handloom
weaving units in Assam and concluded that this sector is beset with manifold problems such as
The table-6 shows that sample of seven handloom products have annual average profit of Rs. 6600/-
and Standard deviation of the seven handloom products is 3460.25 and co-efficient of variation is
52.43%.
Hypothesis
H1: There is a significance difference between annual profits of sample handloom products.
From the above table, it appears that the calculated value of the chi-square=10884.85 and that the
given observation being in the nature of an individual series, the degree of freedom is given by
V=n-1=7-1=6
Thus, with reference to the degree of freedom(d.f) at 5% level of significance, the critical value of chi-
square is obtained at χ20.05=12.592.
A comparison between the calculated value (10884.85) and the critical value (12.592) of the χ 2 reveals
that the calculated value of χ2 is much more than critical value. Hence, the difference between the
observed and expected values of profits is significant and thus the hypothesis that all the seven
handloom products have equal profits potential is rejected.
So, Accept H1and reject H0. Means there is a significant difference between profits earned by seven
sample handloom products of Odisha.
CONCLUSION
The Odisha handloom products have wide demand in the local as well as foreign markets. As per our
study to the profitability of Odisha handloom products have a significance difference in their earning
of profits. Though handloom sector provides employment opportunities to the poor and dominant
people but the master weavers and the independent weavers have to invest in those handloom products
which have more profitability to them.
According to our study Unit-1 has annual profits of Rs 5, 66,400/- and per month income or monthly
income is Rs. 47,200/-. This unit consist 12 no. of handloom weavers. So, profits per month per
handloom weaver is Rs. 3933/-. This unit has maximum per month and per handloom weaver profits.
As per the product basis scraf has maximum annual profits of Rs. 12, 00,000 /- and per month profit is
Rs. 1, 00,000/- of all the ten handloom units. So, here per weaver and per month profits is Rs. 10,000/-
of all units. So, the weaver should invest in the product scarf.
This handloom industry started to decline since the industrial revolution and subsequent technological
changes. In addition, the introduction of money economy, free plays of market forces and dominance
of finance capital sickness to this industry. When handlooms started consuming mill made yarn, the
net effect was the dependency of this traditional industry on the organised capitalist cotton mill
industry. The ruling classes which protect the interests of capitalists in cotton textile industry, controls
and restricts the development of handloom industry. Yet this industry survived only because of the
consumers’ preference to handloom products.
SUGGESTION
Promotion / advertisement , availability / increase number of outlet ,exhibitions ,develop new designs ,
awareness , price to be reduced , proper marketing , more customization of products, link it with brand
India , improve the quality , customer friendly services , improve durability , provide machines to