NABARD - Student Internship Scheme 2016-2017 - page 6

Major Observations / Findings:
The non-availability of adequate quantities of good quality raw materials at reasonable prices.
The household weavers lack a proper market for selling their products. To elaborate, their market
horizon is mostly restricted to the vicinity of their villages. This readymade albeit limited reach of their
products serves the demand of the existing customer base.
A total of 37 weavers showed a positive response towards use of upgraded technology in weaving and 23
weavers were more comfortable weaving in the traditional way.
Training is a critical process needed in any work to achieve success. Training is an effective way of
enabling any person to acquire new skills and knowledge, as well as enhance better working practices.
Marketing of Handloom cloth is done by weavers themselves, master weavers, middlemen, co-operative
societies and also by marketing organisations, like Apex Weavers Co-operative societies,
63 percent weavers availed credit from Banking institutions and Government schemes at present (38
weavers) whereas 37 percent have not availed any Government schemes or Bank loan (22 weavers)
because they had a narrow perception regarding loan application procedure being complicated and they
were not sure whether they can repay or not.
A major sources of credit for household weavers (35 weavers ) are informal as most of them cannot apply
for formal credit due to lack of proper documents which is needed to avail the government schemes and
bank loans. Thus, they take credit at a higher interest rates from local money lenders. Informal sources
in the study include Self Help Group, Money Lenders, Cooperative Societies, Friends and Relatives
where the rate of interest is always high.
A few weavers showed positive response and said their major source of credit is formal. Formal sources
in the study include banks like State Bank Of India, Union Bank Of India, United Bank, Bandhan Bank,
Rashtriya Gramin Vikas Micro Finance Ltd etc . ( all the formal banks have a special interest rate for the
weavers, i.e. 3% less than the market ).
Major reasons for taking credit are personal use , financing medical expenses, financing education of
their children, expansion of accommodation and most importantly to set up a new independent weaving
loom to increase production so that they can earn some extra money.
Credit is needed for upgradation of existing machinery, purchasing yarns, looms, for transportation,
packaging etc, loan availed by the household weavers also serve several other purposes when the weavers
face a shortage of finance.
When weaver avails these Govt. schemes, the whole process is so lengthy and time consuming that the
weavers have to wait for a longer duration for the loans/schemes to get sanctioned for weaving. The
weavers are unaware of the application process and the perception regarding these schemes are narrow
and they aren’t sure if they can meet the repayment requirement.
The weavers avail the loan stating the purpose as weaving but end up consuming the loan amount for
personal use. Thus, commercial banks are reluctant in giving loans to the weavers as most of them are
unable to repay the loans because the money was not used for any revenue generating purpose.
Though Government of India has initiated various schemes for development of handloom sector,
there is still a lack of awareness about various schemes and assistance available to them . Weavers
mostly acquire the Identity Cards through agents / middle men who provide them the card without
informing them about the benefit and utility of the card.
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