The Hindu Business Line : Handloom sector focusing on skill-intensive products

Mr K. Shanmugam, Executive Director, Handloom Export Promotion Council (HEPC), said that these segments, which are the stronghold of the handloom sector, had been eroded because of the shift to powerloom and the entry of Chinese mass-produced fabrics.

Across the board, Chinese textile products are 10-20 per cent cheaper than Indian ones, he said.

Between April 2002 and March 2003, exports of Real Madras Handkerchief (an embroidered piece of cloth that is exported only to a few African countries), once a major export from India, fetched only Rs 12 crore (Rs 17 crore earlier), a decline of 30 per cent.

Similarly, export earnings of lungies fell from Rs 46 crore to Rs 40 crore from April 2003 to March 2004, a decline of 13 per cent. Similar declines are seen this year too, he said.

Mr Shanmugam said that HEPC has been encouraging weavers to concentrate on more intricate designs and items that require more craftsmanship, like handmade quilts and carpets.

But here again, mass-produced cheaper fabric has eaten into the marketshare of Indian products. A good example of this is the ikat, in which a single strand of yarn is dyed in various colours and is difficult to duplicate.

The copy available in the international market is printed with the same design and is much cheaper, too, unlike the Indian textile, which is woven.

"India's strength lies in catering to the small and medium quantity requirements of buyers," Mr Shanmugam said. The markets for such products are mainly in the European Union where handmade, well-crafted products are appreciated.

Almost 33 per cent of the total exports are to the US, the bulk of which are made-ups and terry towels. The total handloom exports out of India, both made-ups and garments are about $12 billion.

Mr Shanmugam said that the past year was tough on handloom exports. The fluctuations in yarn price and the exchange rate against the dollar hit this segment hard, he added.