NABARD - Student Internship Scheme 2016-2017 - page 16

was 3 – 6 depending upon the time taken for availability of raw material, weaving, availability of
timely market, and receipt form sales proceeds. The average working capital requirement per loom
ranges in between Rs.30,000 to Rs.75,000 per annum.
Looms used by the weavers were old and outdated. Most of the weavers were found ignorant about
the new technology. It was observed that there was a felt need for loom upgradation. As handlooms
are small units, the size of term loan requirement is very small. Tara looms, Dobby and Jaccquard are
technologies that may be installed as one time investment as to increase productivity and innovation
in designs and patterns
The average amount of financing done by banks under Weaver Credit Card Scheme to weavers was
found to be Rs. 25,000. Thus there was almost double the credit gap in demand and supply of credit
and it ranged in between Rs.5,000/- to Rs.50,000/-.
Credit Support to handloom sector:
Lack of adequate and timely access to credit is one of the
biggest challenges of Handloom Sector in Rajasthan. The findings of the study have shown that only
a small percentage of credit requirements of handloomweavers is met from institutional finance. The
study has analyzed the importance of assessing the credit gap, different dimensions of credit related
issues for handloom sectors and the bottlenecks in credit delivery mechanism. The discussion with
the weavers revealed that banks were reluctant to finance weavers. The RRR package has not led
to revival for PWCs in Rajasthan. It was observed that the Self-Help Groups was formed so that
delivery of credit support can be easily available to weavers.
• Institutional Ecosytem for Handloom Sector and Sustainable Models for Handloom Sector: The
handloom sector in India comprises a wide range of agencies and organisation. The governance
of its diverse components is spread over several central government ministries and numerous
state departments while implemental players primarily include NGOs, market organizations, and
financial agencies. The challenge for the sector is to achieve convergence of policies and schemes to
optimize production and marketing in a manner that will benefit the most vulnerable members of
the value chain, i.e. the handloom producers and their families. It is also important to achieve scale
and sustainability in production in order to attain a stable market environment families.
To achieve sustainability of the handloom sector, agencies like Rang Sutra Craft Duniya Producer
Company Limited, Rangsutra Crafts private limited, FabIndia, Tattvam Lifestyles Private limited
have their own models for supply of raw material; at production level, intervention are required
in bringing new designs, accounting and marketing, different credit models to support handloom
sector. These agencies are working closely with the handloom weavers to bring innovation and
providemarketing support for handloomsector. HandloomMark, Geographical IndicationPatenting
[GI], E-marketing technology adopted by agencies will help handloom sector grow. Moreover
the importance of studying these models is included in the study because these are financial well
supported by banks.
Major Recommendations:
a. There is a dire need for adopting focused approach to set up full-fledged Directorate of Handloom.
b. Common facility centres may be used for effectively by employing professional staff for its
management. All information regarding government schemes and policies need to be processed
through timely meetings and display notices on CFC.
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