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Summary No-05
Profile of the Student :
Name: Puja Khiwasara
Degree Programme:MBA
University/ Institute:Banasthali Vidyapith, Banasthali University
Profile of the Mentor:
Name: R.K. Gahlawat
Designation:AGM
Department:DOR
Name of Regional Office: Rajasthan (Jaipur)
Objectives of the study
i. To study the status, problems and challenges faced by handloom sector in Rajasthan.
ii. To access the areas of credit requirement of the weavers.
iii. To identify issues hindering availability of adequate and timely institutional credit to weavers
through formal channels.
iv. To study institutional ecosystem & sustainable models in handloom sector.
v. To suggest actionable measures to be taken by the lending institutions and the State /Central
Government in order to improve access to finance.
Sample State/ Distt/ Blocks/ Villages:
Bikaner, Jaipur and Kota
Sample size:
32(6 Weaver’s societies, 7 master weaver, 15 weavers, 4 banks).
Research Methodology:
The study was conducted in 3 districts of Rajasthan: Bikaner, Jaipur and Kota. The study helps to
identify the requirement of working capital and term credit for the purpose of production, marketing,
and loom upgradation. Detailed Questionnaires were developed for interacting with weavers, Weaver’s
Cooperative Societies /Master Weavers and Bankers. Based on the questionnaire and field level
situations, interactions /discussions were done with weavers, master weavers, weavers societies, bankers
and government officers. Information related to the study /project was collected and consolidated.
Major Findings:
•
General Problems of the handloom sector:
Though it is the second largest employment
generation activity in India, handloom sector in Rajasthan faces multifarious problem of weak
infrastructure, high cost of production, lack for technology, low demand, ineffective marketing, and
lack of availability of timely and adequate credit.
•
Assessing the demand for credit in area selected:
This study aimed to assess credit gap
in selected districts by assessing the demand for credit and supply of credit by various financial
institutions. The credit demand in the handloom sector is for working capital, maintenance of looms,
ancillary activities and small portion of consumption expenses. The working capital was accessed by
the operating cycle of different handloom products. The average number of operating cycle in a year
