[Schemes] Handloom Mark, Handicraft Sector: Government schemes, problems, reforms

1. Handloom vs Handicraft?
2. Why Handloom Mark?
3. What is Handloom Mark?
4. Social Security for Handloom n Handicraft?
5. Mahatma Gandhi Bunkar Bima Yojana
6. Health Insurance Scheme (HIS) for weavers
7. Special schemes?
   1. Technology Upgradation Fund (TUF)
   2. Integrated Handlooms Development Scheme (IHDS)
   3. Mill Gate Price Scheme
   4. Babasaheb Ambedker Hastshilp Vikas Yojna (AHVY)
   5. Marketing Promotion Programme
8. Problems faced by Handicraft and Handloom
9. Reform, New suggestions
10. Mock Questions for UPSC Civil Service Exam

Handloom vs Handicraft?

Textile ministry looks after both sectors via

1. Office of the Development Commissioiner for Handlooms.
2. Office of the Development Commissioner for Handicrafts.

Why Handloom Mark?

• Thanks to technological developments, the handloom products are being increasingly replicated on power looms at a much lower cost.
• Then “economy of scales” comes into picture (= If you produce something at mass-scale then cost price of each product unit will decrease).
• Therefore, a power loom can sell the products at much lower selling price and yet keep good profit margin compared to a small time handloom weaver.

What is the solution?

• Government came up with “Handloom Mark” system.
• This is being operated by Development Commissioner for Handlooms=> falls under Ministry of Textiles.

What is Handloom Mark?

• A logo that can be stiched on every handloom product.
• It’ll serve as a guarantee for the buyer that given product genuinely hand woven and not produced using machinery /power-loom.
• National Institute of Design (NID), Ahmedabad created this logo.
• This Handloom mark is in two forms

• If someone misuses this logo. E.g. a powerloom miller stitching fake “Handloom Mark” logos on his readymade products then he can be jailed and fined under Trademarks Act.

Anyways, let’s take a look @some other important schemes/programs for Handloom and handicraft sector.

Social Security for Handloom sector?

Mahatma Gandhi Bunkar Bima Yojana

1. Gives monetary relief incase of a weaver’s death or disability.
2. Administered by LIC.
3. Also provides scholarship for their children in class 9 to 12.

Handicraft sector has similar scheme under the name “Janashree Bima Yojana for Handicrafts Artisans”
Health Insurance Scheme (HIS) for weavers

• Weaver, his wife and two children, can get free treatment for pre-existing diseases as well as new diseases
• Administered by ICICI.

Handicraft sector has similar scheme under the name “Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY)”

Special schemes for Handloom sector?

Technology Upgradation Fund (TUF)

• Run by Ministry of Textiles-> Office of the Development Commissioner
• It provides subsidy to weavers for

1. Purchase of new machineries and equipments;
2. Factory building and
3. renovation of existing factory building

Integrated Handlooms Development Scheme (IHDS)

• form Self Help Groups (SHGs).
• Government gives you money for buying raw material + machines.
• training in weaving, dyeing, designing and business  Management.

Mill Gate Price Scheme

• Cotton yarn is the major input for handloom weaving. In recent years, there has been a phenomenal rise in the prices of yarn.
• main reason for this is the sharp increase in the prices of cotton.
• To solve this problem, Government  launched this scheme.
• Here, Government helps the handloom weavers to buy yarn at the price @which it comes out from a Mill. (No middlemen eating commi$$ion.)

Marketing Promotion Programme

• Government organizes Special Expos, Craft Melas, Urban Haats and Marketing Complexes;
• Gives National Awards and National Merit Certificates to weavers and artisans.
• Holds seminars with professional designers and marketing consultants.

Handicraft: Babasaheb Ambedker Hastshilp Vikas Yojna (AHVY)

• Issue of ID cards to the artisans
• Supply of improved modern tools
• Training seminars
• Marketing
• Exposure tours
• Loans

Problems faced by Handicraft and Handloom

1. Raw material @reasonable price= not available. Government schemes work on paper only, due to infrastructural problems (roads connectivity etc).
2. Cannot comepte with machine made products because of they lack marketing,  Management and sales expertise.
3. No synergy between Government agencies responsible for handlooms, handicrafts, khadi and the cottage industry sectors =kingdoms within kingdom=Inefficient utilization of resources. Some people get double benefits (Handicraft+Handloom) schemes while others don’t get even one.
4. The role of women in the handloom industry is largely unacknowledged.
5. Artisans still rely upon local moneylenders. They charge heavy interest rate, leaving the artisan in vicious poverty cycle.

Financial issues:

• Although Government has made many schemes to give them loans via Scheduled Commercial Banks, Cooperative Banks, Regional Rural Banks, etc. But
• These banks donot have branches in remote rural areas, particularly in North East and J&K.
• Even where bank branch is available, the needy people are unaware of the schemes.
• They’ve to go through lengthy paperwork and repeated trips to bank-office, to get loan money= inconvenient for those living in remote areas.

Reform, New suggestions

Given by Planning Commission’s Committee, for 12^th FYP

1. Create a Distress Relief Fund, to help weavers and artisans during various crises such as natural or manmade disasters, severe economic distress and suicides.
2. e-kiosks, a single-window based loan-clearance system via SIDBI and NABARD
3. Artisan Credit Card (ACC) should be promoted.
4. Pension Scheme should be introduced through the support of the National Social Security Fund.
5. More funding for North Eastern Regions.
6. Remove the artificial divisions between Khadi, Handicraft, Handloom etc. that compartmentalize administration of common sectors. Just focus on a unified ‘Handmade in India’.
7. Social welfare schemes should be strengthened for ensuring better living conditions for weavers, artisans and ancillary workers.
8. Women workers should be recognized as contributors and be included in various schemes/programmes in their own individual capacities.
9. Financial inclusion and financial literacy support programs.

Mock Questions for UPSC Civil Service Exam

Q1. find Incorrect Statement?

1. Ministry of Commerce has come up with Handloom Mark Scheme to increase overseas demand of Indian Handloom product.
2. This Handloom mark guarantees consumers that their handloom products are environment friendly and have not used child labour.

1. Only 1
2. Only 2
3. Both
4. None

Q2. Which of the following are correctly matched?

1. Only 1
2. Only 2
3. Both
4. None

General Studies Mains Questions:

1. Handloom Mark (5m)
2. Mahatma Gandhi Bunkar Bima Yojana (5m)
3. Babasaheb Ambedker Hastshilp Vikas Yojna.
4. Steps taken by the Government to protect and promote handloom sector. (10m)
5. Steps taken by the Government to protect and promote handicraft sector. (10m)
6. What do you understand by Handloom and Handicraft? Discuss the significance, problems and opportunities of these sectors. (10m)