High Cost, Hard Labour: Handloom Weavers Seek Govt Support, Stability

A day before National Handloom Day 2024 on 6 August, Karan, an Agra-based handloom weaver in his late 20s, set up his shop at the famous INA market in New Delhi to sell his handmade textiles. While working in the national capital's humid weather, he said, “How can I survive? I shall request the central government that it either puts an end to the handloom or do something so that we can sell our products and make a reasonable profit, beyond our current hand-to-mouth existence.”

While elaborating on the financial issues he and his family are facing, Karan told BW Businessworld, “Our ancestors took out a loan to set up these looms, one by one. This work is in our blood, but now, there is no stability. A saree that costs Rs 5,000 to make and we can barely sell it for Rs 6,000. Customers want to pay only Rs 1,000, Rs 2,000 at most.” 

Interestingly, while speaking on the tenth National Handloom Day, India's vice president Jagdeep Dhankar said that let's take a pledge, make it a habit to use handloom products— sarees, kurtas, ghagras, cholis—and elevate them to a fashion statement, a brand and improve consumption qualitatively. 

While this statement sets a tone of positive reinforcement and motivation for consumers, it probably seems a distant dream for the weavers whose products are being talked about here. In India's massive textile sector, Karan and many like him are struggling to make ends meet in a fading industry. Despite his skill and dedication, the handloom weaver's income is precarious, forcing him to plead for government intervention.

“People do not have the money to buy our sarees. We are caught in a cycle—celebrated by the government one day, ignored the next. In some cities, we have to pay Rs 18,000 just to set up a shop. How can we keep going,” said Babulal, a weaver from Uttar Pradesh's Varanasi who primarily deals in Benarasi silk weaving.

In cities like Chandigarh, Agra and Surajkund, they have to submit a demand draft of Rs 18,000 to set up our shops, claimed Babulal. Despite being a national award winner for his work in handloom weaving, Babulal's exquisite sarees fail to translate into a sustainable livelihood. The high cost of raw materials and the labour-intensive process make his craft priceless, but the market fails to recognise its true value, leaving his family's survival a daily struggle.

High Cost And Painstaking Labour
Babulal who came to Delhi from Yogi Adityanath's Uttar Pradesh in search of better income, stated, “The high cost of raw materials, along with the labour-intensive nature of our job, means that even the most basic sarees require significant capital to manufacture. People don't buy our products because they don't have that kind of money." 

When asked about the reasons behind low customer turnout, both these weavers attributed the high cost of yarn, the lack of abundance of the yarn and the kind of intricate manual labour required, even with the advent of power looms, as the reason for it. The Indian handloom sector, which employs more than 4.3 million weavers and affiliated workers, is one of the largest unorganised economic activities and is an integral part of the rural and semi-rural livelihood. 

Notably, handloom weaving constitutes one of the most vibrant aspects of the Indian cultural heritage and provides both direct and indirect employment to lakhs of weavers and allied workers. Since the past few years, the sector has generated about Rs 50,000 crore in annual revenue from local consumption and exports.

A 12 per cent goods and services tax (GST) on handloom products was implemented as part of India's broader GST implementation, which took effect on 1 July 2017. Initially, handloom products were exempt or placed in lower tax bands, but changes in GST rates over time resulted in the implementation of a 12 per cent tax on select handloom items.

This reform was intended to create a more uniform tax structure across the sector, but it has been greeted with opposition from groups concerned about the impact on traditional weavers. Even if it has created a discussion, the GST has also resulted in increasing industry formalisation, which improves transparency and compliance. Few experts noted that this tax policy has helped to integrate the sector into the larger economy, potentially improving its access to official financing and government schemes.

From The Middlemen Crisis To Marketing Challenges
“The government has put a 12 per cent GST on us and it’s unfair,” Bilal Ahmad, Pashmina shawls' weaver from Srinagar, Jammu & Kashmir told BW. He added, "We already struggle with middlemen taking a cut. If only we could reach customers directly, things might be different, as by doing so both artisans and customers could benefit, as the elimination of middlemen would allow for more reasonable pricing and fairer profits. We need more support and more opportunities to sell our work at fairs, at markets.

Weavers like Ahmad face a tangled web of challenges. Middlemen's hefty commissions and a 12 per cent GST rate limit their already fragile livelihoods. According to industry experts, direct access to customers could be the lifeline they need, promising fairer profits and reasonable prices, but support and opportunities remain elusive, leaving their craft on the brink of unravelling.

Despite these challenges, Bilal acknowledged the role of the government in providing subsidy loans and other forms of financial support. However, he stressed that more needs to be done to help artisans like himself reach a wider market, suggesting that increased opportunities to participate in fairs and flea markets dedicated to handloom products could be a vital lifeline.

Similarly, Basheen Bano, a weaver from Kota, Rajasthan who primarily deals in Kota sarees that celebrate the delicate nature of pure gold zari work, accepts marketing as a huge problem for the handloom sector. “Kota sarees are heavy and expensive and we are not able to sell them everywhere,” Bano explained with a heavy tone.

With prices starting at Rs 10,000, Bano's sarees cater to a niche market that values tradition and craftsmanship. However, finding customers who can afford and appreciate her work is increasingly challenging. “We do not want to reduce its price as it is our heritage and it is worth it,” she said, putting the graveness of the tension between maintaining the integrity of her craft and the pressures of a market that often favours cheaper, mass-produced alternatives, at the forefront.

Primarily, marketing, high production costs, unavailability of proper opportunities to put their work in front of the world and the expensive nature of the goods produced, have surfaced as the problems the handloom artisans are dealing with. However, the Indian government has made several efforts to promote and support the handloom sector and its workers. These programs include financial aid for loom upgrades, workshop construction, product development and marketing; credit facilities for weavers and organisations; welfare measures such as insurance and scholarships; and assistance with raw material supply.

These initiatives include the National Handloom Development Programme, Raw Material Supply Scheme, Handloom Export Promotion Council, India Handloom Brand, Aatma Nirbhar Bharat Abhiyaan, Handloom Producer Companies (PCs), and domestic marketing events among others. The government has also established the ‘India Handloom’ brand to promote high-quality handloom items and has taken steps to solve the sector's issues during the Covid-19 pandemic.

Post Pandemic World
According to a report of Avendus Spark in July 2024, the textile industry is seeing signs of recovery, with global retailers and brands reporting that their inventory levels have returned to pre-covid standards. However, it highlighted that a cautious outlook on demand as garment companies await a boost in order book momentum. This cautious optimism suggests that the order cycle may remain shorter than usual for the foreseeable future.

The report added that in 4QFY24, EBITDA margins for garment manufacturers improved by 177 basis points, primarily due to lower input costs. Vertically integrated players reported better margin growth compared to peers. However, EBITDA margins fell by 80 basis points, suggesting a possible slowdown in volume demand.

Man-made staple fibres (MMSF) saw a 5 per cent year-on-year (YoY) revenue growth. The cheaper imports from countries like China and Bangladesh led to pricing pressures. Capacity constraints limited volume growth opportunities for MMSF players, it added. 

While highlighting the significance of consumer education, effective marketing and government backing in bolstering the handloom sector, Deepali Rastogi, a textile technology professor at Lady Irwin College's Department of Fabric and Apparel Science, said that the labour costs have a substantial impact on the price of handloom products. 

Rastogi added, "The fundamental reason for the greater price of handloom products is the enormous labour required. The production process is slow, which naturally raises the cost.” To remedy this, educating consumers about the benefits of handloom items and appealing for government subsidies might be viable measures.

Rastogi mentioned that handloom products have already made major inroads into mainstream fashion, particularly in the context of slow fashion. "Handloom products are an essential element of slow fashion, and their integration into mainstream fashion is well underway," she shared.

According to her, direct selling from craftspeople to consumers could be an effective technique for increasing recognition of handloom artisans. "Efforts by NGOs and government bodies, through initiatives like exhibitions and dedicated markets such as Dilli Haat, are steps in the right direction.” She believes that these platforms help craftsmen gain attention and market access.

Talking about the difficulty of creating a sustainable market for handloom items, Rastogi shed light on the importance of raising awareness among the younger population. "One of the most difficult issues is getting young people to abandon quick fashion in favour of handloom products, despite their higher cost. "It is critical to raise awareness and build a willingness to invest sustainably," she added.

Currently, India's handloom sector, despite its cultural significance and economic importance, faces numerous challenges, including high production costs, middlemen exploitation, and inadequate marketing opportunities. Government initiatives and consumer education can help, but a sustainable solution is the need of the hour to address these issues and promote direct access to markets for artisans.