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For the handloom industry in Tamil Nadu to retain competitiveness, marketing incentives should be given to all handloom co-operative societies without restrictions, said Chief Minister Edappadi K Palaniswami.
Under the the National Handloom Development Programme, two restrictive clauses were introduced recently. The Handloom Weavers Co-operative Societies can avail themselves of incentives for a maximum of three years only and the turnover should not be more than ₹30 lakh.
New guidelines
In a letter to Prime Minister Narendra Modi, Palaniswami highlighted the need to remove the recent restrictions imposed on the cooperative societies for availing marketing incentives.
As per the new guidelines, 285 societies consisting of 53,140 weavers will be eligible for getting the financial assistance under the Marketing Incentive, as opposed to 868 societies consisting of 2.69 lakh weavers previously.
Cap on turnover
Palaniswami also noted that capping the sales turnover to ₹30 lakh will impact the sale of handloom goods and cash flow, which will affect employment. This will lead to stock accumulation and loss of working capital and in turn to migration of workers.
The Chief Minister said in the letter that the weaver societies in the State heavily depend on the marketing incentive to promote sales. Also, societies with a turnover of more than ₹30 lakh have more members and hence need marketing support to face stiff competition from the powerloom sector.
At a time when the industry is already reeling under the GST burden, Palaniswami said in the letter that extending the marketing incentive to the entire handloom sector will help them reap the benefits envisaged by the National Handloom Development Programme.
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