'Extend low interest loans to handloom weavers'

New Delhi, Jun 28: Prime Minister Manmohan Singh has asked Finance Minister P Chidambaram to consider the feasibility of extending the low interest facility provided for agricultual loans to handloom weavers as well.

Launching the ''Handloom Mark'' here today, Dr Singh said that he had asked the Textile and Finance Ministers to look at the problem of debt which is afflicting handloom cooperatives so that this can be rescheduled or cooperatives recapitalised in a manner similar to that done for cooperative banks through the Vaidyanathan Committee.

''I am hopeful that we will resolve this problem in the next three months,'' he said and acknowledged that high cost of credit and debt overhang as serious constraints and underscored the need to address these problems on ''a priority basis''.

Reiterating the Government's commitment to adress the problems of weavers, the Prime Minister announced that 230 new Yarn Depots will be opened soon to provide easy access to yarn fo all clusters with more than a thousand looms. He also announced that Government will cover another 100 clusters in this year under the Integrated Handloom Cluster Development Scheme.

Dr Singh said this new Handloom Mark would help consumers distinguish between genuine hand woven fabric and power loom and machine-made fabric and that it would help individual weavers, weavers cooperative societies, master weavers, retailers and exporters.

Dr Singh said the handloom sector reflects not only the traditions of the weaving communities but also the socio-cultural heritage of the entire nation. The level of artistry and intricacy achieved in handloom fabrics is unparalled and beyond the scope of modern machines. Apart from spices, it was Indian handlooms that attracted traders from Europe in earlier centuries.

He said handlooms have a crucial role to play in supporting and strengthening the rural economy of the country. Apart from agriculture, handlooms are the largest source of employment in rural areas, providing employment to almost 65 lakh people.

''With the end of the quota regime in global textile trade, the demand for handlooms may well increase significantly,'' Dr Singh said and endorsed the appeal of Union Textiles Minister Shankersinh Vaghela that ''people should wear handloom clothes once a week to help the weaving community.'' However, handlooms face severe competition from power-looms and manmade-fiber. While changes in the international trading regime have created new opportunities, they also pose new threats to handlooms.

''We need to work hard to exploit the opportunities for renewed growth that have been created in developed market economies. The Handloom Mark is one such initiative to brand out handlooms and secure a high value-added niche market for this highly prized product,'' the Prime Minister said.

The Government is aware of the problems confronting handlooms.

The National Common Minimum Programme makes a firm commitment of ensuring the welfare of the handloom sector, especially the weaver community. The initiatives will cover all aspects of production and raw material supply, design and technical assistance, training and skill up-gradation and marketing, he said.

Last October, Dr Singh informed, the Textiles Ministry launched a life insurance scheme for weavers, the Mahatama Gandhi Bunker Bima Yojana, in collaboration with LIC and also launched a Health Insurance Scheme in collaboration with ICICI Lombard, to provide health facilities to weavers and their families.

''I am aware that access to credit and cost of credit are two problems facing the handloom sector and the Government has taken steps to ease this constraint. In the budget, we had announced that a scheme similar to the Technology Upgradation Fund Scheme (TUFS), which is available for the machine made textile sector, will be soon introduced for the handloom sector to provide capital subsidy for looms,'' the Prime Minister said.

The Handloom Mark should emerge as the hallmark of high quality and high creativity and will be operational throughout the country.

Individual weavers, weavers cooperative societies, master weavers, retailers and exporters will all benefit from the use of this mark.

The Prime Minister honoured National Master Weaver Award winners at a function. Mr Vaghela, Union Minister of State for Textiles E V K S Elangovan, Mr B K Sinha, Development Commissioner (Handloom) and Secretary, Textiles D P Singh were also present on the occasion.

UNI