Chapter_4 HISTORICAL BACKGROUND OF THE TEXTILE INDUSTRY =================================================== INTRODUCTION The textile industry is as old as the human civilization. Cloth is one of the basic needs of human being. In ancient ages, the cloth was made only from cotton. At present, cloth is made from silk, rayon, nylon, filament yarn, man-made fiber, viscose, staple and polyester etc. Besides this, cloth is prepared by hand process. But in this modern era highly modernized technique and computerised looms are used for the production of cloth. The entire process is being done by high technique machines. Earlier, textile industry comprised of only cloth weaving, but today it includes ginning, reeling, spinning, weaving, processing, sizing, printing and garment manufacturing also. The textile industry plays a vital and significant role in the economy of our country. In the words of N.M. Mugadur, the director of enforcement, "Textile is one of basic essential commodities and hence it is listed under essential Commodities Act 1955. It has its own importance in the daily life of common masses as next to food. It is classified as industrial consumable and general public consumable commodity." ROLE OF TEXTILE INDUSTRY IN INDIA: In India, the Textile Industry has got an important place. It has a great contribution to the economy of the country. It also contributes to the industrial output, employment generation and foreign exchange earnings. The value addition in the manufacturing sector is 20% and the contribution to GDP is from 4 to 5% and export earning by the Textile industry in India is more than 30% of the total export. The textile industry spread from rural areas to the big cities like Ahmedabad, Mumbai, Calcutta, Chennai etc. In rural areas handlooms are busy in producing of cloth. In small cities, thousands of powerlooms are working in the textile field. Lakhs of poor people are getting their livelihood by manufacturing cloth. They also provide the local requirement of cloth on a lower rate of price. In this respect, the Textile Industry is ranked next to agriculture in India. GROWTH AND DEVELOPMENT : The Textile Industry in India is categorized into the following three sectors, (a) Mill Sector - Organized Sector (b) Handloom Sector - Organized Sector (c) Powerloom Sector - Un-organized Sector (a) Mill Sector : The mill sector is more organized than handloom and powerloom sector. It is because of the fact that this sector is dominated by the capitalists. The first Textile mill in the country was established in Mumbai in 1818 with 1,000 powerlooms.1 Growth & Development of Mill Industry: There was a rapid growth in 1900. There were 190 mills with 50 lakhs spindles and 40,000 looms during the first world war it went up to to 65.97 lakhs spindles and 94,000 looms. In the beginning of Second World War (1939), the spindles were more than 10 millions and the number of looms went up to more than 2 lakhs. The growth and expansion got slow during the War. After the war, the mill industry geared up on full speed again. 2 The following table gives a detailed and comprehensive study of growth of the mill industry. 3 Table No. 4.1 Years as on March End No. of Mills Spindles installed (millions) Looms installed (thousands) Spinning Composite Total 1948 88 105 193 10.07 193 1951 107 276 383 11.25 196 1961 196 285 481 13.83 199 1971 379 291 670 17.98 206 1981 415 278 693 21.23 208 1982 442 281 723 21.93 210 1983 561 280 841 22.91 210 1984 639 281 920 24.28 210 1985 674 281 955 25.57 210 1986 702 282 954 26.02 280 1987 744 283 1027 26.12 280 1988 752 283 1035 26.25 199 1989 769 282 1051 26.48 184 1990 770 281 1051 26.59 181 1991 777 285 1062 26.67 178 1992 846 271 1117 27.82 169 1993 874 268 1142 28.09 158 1994 901 260 1175 28.60 150 1995 1148 268 1916 30.70 139 1996 1294 275 1569 31.75 132 1997 1438 281 1719 33.15 124 33.88 1782 278 1504 1998 Source : Compendium of Textile statistics 1999 (Page No. 3,3.) - YARN AND CLOTH PRODUCTION : During the war, the cloth production was meant for defence services. The handloom sector provides the need of civilian requirement. Therefore, the mill sector was allowed to expand the spinning wings to fulfill the demand of yarn. The following table shows the production of yarn and cloth by mill sector.4 Table No. 4.2 Cloth Production Yarn. Year Production (Million kg.) Mill Decentralised (in million Sector (in million meters) meters) Total 1948 675 3949 1,151 5,100 1951 591 3727 1,014 4,741 1961 862 4701 2,372 7,073 1971 881 41.15 4,473 8,588 1981 1067 4168 6,820 10,988 1991 1510 2590 15,228 17,818 1995 1696 2271 15,976 18,247 1996 1894 2019 17,201 19,220 1997 2148 1957 19,352 21,309 1998 2213 1948 20,957 22,899 1999 2022 1785 20,689 22,474 COMPARATIVE GROWTH OF THE SPINNING AND COMPOSITE TEXTILE MILLS (NON SSI) IN 1988-89 AND 1998-99 (STATE-WISE) : 5 Table No. 4.3 NO. OF MILLS STATES/ UNION TERRITORIES SPINNING INSTALLED CAPACITY COMPOSITE SPINDLES(000) ROTORS LOOMS 1989 1999 1989 1999 1989 1999 1989 1999 1989 1999 ANDHRA PRADESH 58 96 2 2 1437 2110 744 7402 1246 1246 ASSAM 3 6 -- 2 81 130 -- -- -- 240 BIHAR 4 8 2 1 109 181 -- -- 596 60 DELHI -- -- 4 1 166 23 960 -- 2442 230 GOA 1 1 -- -- 26 26 -- -- -- -- GUJRAT 28 57 90 90 4073 4124 8992 34246 59479 45234 HARYANA 14 75 2 2 305 369 168 67856 335 211 HIMACHAL PRADESH 4 14 -- 1 74 463 -- 3112 -- 2 JAMMU & KASHMIR 2 2 -- -- 34 61 336 992 -- -- KARNATAKA 32 49 12 10 1074 1122 1632 45856 5439 2890 KERALA 24 32 5 4 721 884 -- 1724 1504 1204 MADHYA PRADESH 8 40 17 19 745 1346 3000 14348 9808 6500 MAHARASHTRA 43 124 79 77 5109 5020 2756 43044 66753 36104 MANIPUR 1 1 -- -- 16 16 -- -- -- -- ORISSA 12 15 1 1 340 362 -- 3400 1014 1048 PUNJAB 19 67 2 2 586 1329 2064 25016 1245 1023 RAJASTHAN 26 44 8 8 809 1293 1416 17840 3019 1582 TAMIL NADU 428 821 23 26 4698 12485 17840 101775 9318 5626 UTTAR PRADESH 35 56 15 16 1712 2003 -- 9232 107451 1391 WEST BENGAL 24 24 17 15 1196 1124 504 2425 9118 6695 DADRANAGAR HAVELI -- 1 -- -- -- 31 -- -- -- -- DAMAN & DIU -- 1 -- 2 -- 6 -- 1623 -- -- PONDICHERRY 3 9 3 2 171 214 -- 2888 1932 1218 769 1543 282 281 26482 34722 40412 38277 9 19399 3 12250 4 STATES UNION TERRITORIES TOTAL Note : 1989 and 1999 related to March 89 and March 99 respectively. LOCATION OF THE MILL SECTOR : Generally, the mills were set up near the cotton growing areas or near the ports where it got the import and export facilities. Instead of these, tax facility and free-land also contributed to the expansion of mill industry. As a result the regional imbalance came into existence in the textile industry. At present, Mumbai and Ahmedabad have about 60% of mills out of the total number of mills in the country. COMPARATIVE GROWTH OF THE SPINNING AND COMPOSITE TEXTILE MILLS IN 1986-87 AND 1996-97 (STATE-WISE) : 6 Table No. 4.4 STATES/ UNION TERRITORIES STATES ANDHRA PRADESH ASSAM BIHAR DELHI GOA GUJRAT HARYANA HIMACHAL PRADESH JAMMU & KASHMIR KARNATKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR ORISSA PUNJAB RAJASTHAN TAMIL NADU UTTAR PRADESH NO. OF MILLS SPINNING 1987 1997 51 2 4 -1 28 13 3 2 31 23 9 40 1 11 19 26 416 37 92 3 7 -1 52 71 11 2 46 31 43 109 1 14 53 42 776 52 INSTALLED CAPACITY COMPOSITE 1987 1997 2 -2 4 -90 2 --12 5 17 79 -1 2 8 23 15 2 2 2 3 -92 2 --11 4 16 75 -1 1 7 25 16 SPINDLES(000) 1987 1997 LOOMS 1987 1997 1326 64 109 167 26 4179 299 58 36 1068 692 817 5386 14 284 548 789 7181 1711 1204 -596 2835 -65601 393 --6401 1504 12583 76137 -1014 1245 2985 9900 13257 1929 111 181 109 26 4184 369 308 53 1176 870 1221 5000 16 378 1058 1111 11690 1952 845 240 60 312 -45477 211 --3159 1204 6598 37630 -1048 969 1502 6035 11687 WEST BENGAL UNION TERRITORIES DADRA NAGAR HAVELI DAMAN & DIU PONDICHERRY 24 22 18 17 1169 1172 9876 6796 --3 1 1 8 --3 -2 3 --192 20 3 211 --2679 --144 143 2611 20821 283 281 33148 8 5 0 Note : 1987 and 1997 related to March 87 and March 97 respectively. TOTAL 744 12391 7 In the modern age, nearly 10 lakh workers are employed in the mill industry in the country. There are a large number of auxiliary industries depending on this sector such as manufacturing accessories, spare parts, ancillaries, and chemicals etc. The spindle age capacity increased from 27.82 million in 1992 to 33.93 million as on December 1998. On the contrary, loom age decreased from 1,69,000 in March 1992 to 1,24,000 in December 1998. Out of the total 1788 cotton / man made fiber textile mills, 192 mills are in the public sector, 152 in the co-operative sector and 1444 in the private sector. The growth capacity in the organized mill sector is given as under. GROWTH CAPACITY IN THE ORGANIZED MILL SECTOR 7 Table No. 4.5 Year ending No. of Mills Spinning Composite Installed No. of Total Spindles Rotors Loom (000) (000) (000) 31.3.1992 846 271 1117 27.82 113 169 31.3.1993 874 268 1142 28.09 127 158 31.3.1994 909 266 1175 28.60 139 150 31.3.1995 1148 268 1416 30.70 185 139 31.3.1996 1294 275 1569 31.75 226 132 31.3.1997 1438 281 1719 33.15 276 124 31.3.1998 1504 278 1782 33.88 313 124 31.3.1998(P) 1510 278 1788 33.93 317 124 P-Provisional The follows table showing the closure of cotton/man made fibre textile (mills) in India. CLOSURE OF COTTON/MAN MADE FIBRE TEXTILE (MILLS) 8 Table No. 4.6 Year/Month No. of Mills End Installed Capacity Total Spindles Rotors Loom Employees on roll Spinning Composite 1992-93 64 59 123 3520 1776 366 178 1993-94 75 57 132 2590 3232 362 173 1995-96 100 71 171 4668 6589 450 228 1996-97 118 91 209 5469 9270 542 252 1997-98 127 93 220 5752 10813 553 260 Dec. 1998 184 100 284 6994 21686 585 299 s (000) The following table gives an obvious picture of production of spun yarn industry SSI in India. PRODUCTION OF SPUN INCLUDING SSI 9 Table No. 4.7 Year 1992-93 Cotton Blended 100% Non- Total Yarn Yarn Cotton Yarn Yarn 1569 247 125 1941 1993-94 1697 305 140 2142 1994-95 1696 346 158 2200 1995-96 1894 395 196 2485 1996-97 2148 484 162 2794 1997-98 2213 583 177 2973 1998-99 (Apr.-Sep.) 987 306 86 1379 (P) 2045 630 185 2860 1998-99 (A) (P) Provisional (A) Anticipated The following table indicates the count-wise production of cotton yarn. COUNT-WISE PRODUCTION OF COTTON YARN 10 Count-Group (Million Kg.) Table No. 4.8 Year 1- 11s – 21s – 31s - 41s – 61s – 81s- & Total 10s 20s 30s 40s 60s 80s above 1992-93 241 346 284 487 136 44 31 1569 1993-94 278 385 314 494 144 48 37 1697 1994-95 282 389 321 470 145 48 43 1696 1995-96 310 415 391 490 153 95 40 1894 1996-97 479 511 405 515 136 60 52 2148 1997-98 503 518 462 539 136 53 39 2250 1998-99 (Apr.-Sep.) 220 228 25 240 55 22 17 987 (P) 465 470 395 501 134 45 35 2045 1998-99 (A) (P) Provisional (A) Anticipated CIVIL DELIVERIES OF HANK YARN 11 Table No. 4.9 1998- Item 1992- 1993- 1994- 1995- 1996- 19971993 1994 1995 1996 1997 1998 99 (Apr.Sep.) 19981999(A) (P) Cotton 377 422 438 504 519 540 243 508 Blended 1 Neg. 1 1 4 5 2 5 100% Non-Cotton 37 42 51 66 67 53 24 52 Total 415 464 490 571 590 598 269 565 (P) Provisional (A) Anticipated (B) HANDLOOM SECTOR : Handloom industry is the oldest one in the country. This industry has been playing a vital role in the production of cloth for countries. The Indian Muslim weavers attracted the buyers of foreign countries like Egypt, Arab, Greece and Rome. The handloom sector was in full gear during the Second World War. During the war time, this industry satisfied the internal demand of the country. After the war, this sector suffered a setback. RESTRICTION BY THE GOVERNMENT : In 1950, the government enforced a policy of reservation of some types of the cloth for the handloom industry. The government of India restricted the mills and large powerloom unit from manufacturing of dhoties with border containing coloured yarn and exceeding 1/4" width or use of jari or art silk or silk yarn on dhoti border. Production of any Lungi, Sarang or Gumcha with a check pattern or any cloth with check pattern and having a width between 42" and 52" from which Lungees, Sarang, and Gumchas could be made, and the production of chaddars, bed sheets, bed covers and anything of checked or stripe pattern was prohibited. Because of this restriction the handloom industry got a new life. The government policy of course, was always favouring the handloom sector. ROLE OF GOVERNMENT IN THE PROGRESS OF HANDLOOM: For the development and expansion of handloom sector the government of India has taken the following steps. (i) In 1952 Textile Inquiry Committee was appointed under the chairmanship of Shri Nityanand Kanungo. (ii) All India Handloom Board was set up to advise the government in respect of the problems of handloom industry. (iii) Additional Excise Duty on Cloth Act was passed in 1953. For the promotion and development of the handloom sector different schemes have been introduced for the (handloom) weavers. They are as under. a) Employment generation programmes. b) Modernization and Upgradation of Technology. c) Input Support. d) Marketing Support. e) Publicity. f) Infrastructural Support. g) Welfare measures. h) Composite growth oriented packages. The follows table shows the number of Handlooms state-wise.12 Table No. 4.10 No. of Handloom Name of the states Urban Rural Total 57327 162383 219715 68 45448 45516 Assam 653775 1343793 1404168 Bihar 11557 71100 82657 Goa 9 86 95 Haryana 13969 6303 20272 Himachal Pradesh 1075 30289 31364 Jammu & Kashmir 4617 20655 25272 Karnataka 36999 44586 81585 Kerala 4751 46878 51629 Madhya Pradesh 15740 31691 47431 Maharashtra 50953 16689 67642 Manipur 42359 227902 270261 Meghalay 427 7774 8201 Mizoram 21092 82702 103794 Andhra Pradesh Arunachal Pradesh Nagaland 11224 66279 77503 Orisa 5933 113072 11900 5 Punjab 3651 8577 12228 Rajasthan 8151 25105 33256 121742 306803 428545 264 118808 119072 Uttar Pradesh 99966 160748 260714 West Bengal 37194 301305 339499 Pondichari 3867 1376 5243 630489 3260087 3890576 Tamil Nadu Tripura Total CLOTH PRODUCTION : 22% of the total production of cloth is manufactured by the handloom sector, especially dhoties and sarees in various parts of the country. It is because of the state government intervention through financial help and implementation of various development and welfare schemes this sector has been able to withstand the competition from powerloom and mill sector. As a result, the cloth production has gone up to 7862 million sq. meters in 1997-98. Table shows the percentage of various cloth pattern. 13 Table No. 4.11 S r. No. Type of Cloth % to Total Production 1 Dhoties 23 2 Sarees 26 3 Shirting & Coatings 08 4 Bed Sheets 04 5 Towels 08 6 Others including lungees, Sarees Sarang, Hanker chiefs, Bleeding mattress etc. 31 Total 100 Growth of Powerloom, Employment And Production of Cloth 15 Table No. 4.12 No. of Powerloom No. of Powerloom Units (Revised) 1992 309064 1200111 3000278 1993 310590 1239268 3098170 1994 319728 1314003 3285008 1995 326286 1365284 3413210 1996 333017 1411903 3529758 1997 349280 1523336 3808340 1998 355791 1576977 3942443 (upto 31.8.98) Year Employment (C) POWERLOOM SECTOR It is very difficult to indicate when and where the first powerloom was set up in the country. However, the Fact Finding Committee had pointed out that there were 15000 powerlooms in 1942. The main centres of powerlooms are Mumbai, Ahmedabad, Ichalkaranji, Sholapur, Surat, Tanda and Jabalpur. Some other state having powerlooms are West Bengal, Karnataka and Punjab. In 1941, Mumbai had almost 55% of the total powerloom in the country. Other important states were Madhya Pradesh and Karnataka. In 1958, the powerloom spread out rapidly in other states also. Following table shows the percentage of location of powerloom in various states and union territories of India. 16 Table No. 4.13 Sr. No. States Cotton Total Number of Powerlooms Powerlooms (in Lakhs) (in Lakhs) 0.15 0.09 1 Andhra Pradesh 2 Assam 0.12 0.02 3 Bihar 0.07 0.06 4 Gujrat 0.92 0.23 5 Haryana 0.02 0.01 6 Karnataka 0.34 0.12 7 Kerala 0.06 0.05 8 Madhya Pradesh 0.16 0.13 9 Maharashtra 2.26 1.76 10 Orissa 0.04 0.04 11 Punjab 0.22 0.05 12 Rajasthan 0.08 0.07 13 Tamil Nadu 0.93 0.69 14 Uttar Pradesh 0.24 0.19 15 West Bengal 0.15 0.13 16 Other States and Union Territories 0.05 0.03 Total 5.71 3.67 CONVERSION SCHEME OF HANDLOOM TO POWERLOOM: According to the Kanungo Committee the Government introduced a scheme of conversion of the Handloom into Powerloom in the co-operative sector. It recommended 35,000 powerloom only. There were some conditions to be observed in the conversion which are as follows. (i) The allotment of looms would be on co-operative basis only. (ii) Powerloom should be housed in weaver’s cottages themselves. (iii) Other powerloom co-operative societies may be formed. (iv) The size of the powerloom unit should be of 10 looms. (v) Powerloom unit should be located in rural areas. The place having the population of 30,000 or less than that shall be considered as a rural area. (vi) Only one powerloom to each weaver should be allotted. (vii) Powerloom under this scheme is meant exclusively for the production of cotton only. For the completion of this scheme, a loan upto 87.50% as a share capital and Rs. 100/- as a membership fees for the co-operative societies was provided. Besides, the cent percent loan for the cost of powerloom with motor and other expenses out of which 50% of the total sum will be given as a grant and 50% as a loan. Rs. 500/- was also sanctioned as a working capital. The scheme proved to be a failure in Maharashtra due to the shortage of working capital. There were many difficulties such as delay in the supply of powerloom, supply of electricity and provision of capacity. In rural areas electricity was not available. REASON FOR THE FAILURE OF THE SCHEME : The government tried its best for the success of the Conversion Scheme and provided financial assistance but, the scheme did not prove to be success in a true sense of the term for the following reasons. (i) The working capital was not sufficient to run the powerloom. (ii) The people, who have had 30,000 handlooms in rural areas, related to cooperative societies discouraged the scheme. (iii) There were no power facilities for winding warping sizing supply of yarn and finishing etc. (iv) There was no proper arrangement for the allotment of looms in the cooperative societies. GROWTH OF POWERLOOM INDUSTRY : The decentralised powerloom sector plays a unique role in meeting the clothing needs of the country. The growth and expansion of powerloom industry over the years have been phenomenal. Not only the production of cloth but also the employment have been increasing rapidly in the powerloom sector. The powerloom industry produces a wide range of cloth, both grey and processed. The contribution of powerloom sector is 55% of the total production of cloth in the country. The powerloom products are comparable in the world market. The importance to the Indian economy in the present circumstances should not be therefore overlooked. A great deal of responsibility is therefore thrust on the powerloom industry. The first powerloom unit was set up in 1904 in the country. The growth of powerloom industry started during the First World War. The First World War brought a golden chance to flourish, not only to the handloom sector but also to the powerloom industry in the country. The traditional handloom owners turned powerloom due to low expenses and handloom profits. There was also exemption to the small powerloom units from the restriction that was imposed on bigger units. The number of units was increasing slowly. After the Second World War, there was rapid growth in the powerloom sector. In 1958, the number of powerlooms went up to 44500. In 1980, it increased by 45 lakhs. GROWTH OF POWERLOOM INDUSTRY IN MAHARASHTRA: Bombay, Bhiwandi, Malegaon, Dhule, Ichalkaranji and Sholapur are the main centres of powerloom industry in Maharashtra state. All these centres have a speciality in the pattern of weaving and are known for their variety of cloths. Ichalkaranji is famous for its superfine dhoties and multi-colour sarees that are called 'Patal'. The powerloom of Sholapur are engaged in manufacturing Jacquard Chaddars and towels that earn a handsome foreign exchange for the country. On the other hand, Malegaon and Dhule are well-known for coloured sarees with silk and Zari border Irkal, Zar-Zamin, Apsara, Mangla, Boutique are some of the famous pattern of sarees. Moreover grey cloth is another product of the centre. Bombay has got main place in the textile industry. All types of cloths such as long cloth, grey cloth, suiting, shirting, printed materials, dhoties and silk sarees are some of the special products of Bombay textile industry. Importance of Bombay: Earlier, it is mentioned that the textile industries are established near the cotton growing areas and near the port, which had the facility of import and export. After the First World War, the textile industry was mainly concentrated in Bombay due to the following reasons. (i) Humid climate of Bombay is suited for the cotton spinning. (ii) Facility of Transport. (iii) Easy availability of funds. (iv) Provision of raw-material. (v) Advertising facility. (vi) Import and Export facility. (vii) Supply of electricity and water. (viii) Banking facility. (ix) Cheap and skilled labour. (x) Connected to all big cities of India by railways, roads and air. (xi) Head office of the Textile Commissioner. (xii) Main centre of mill industries on the textile field. (xiii) International city due to air-port. (xiv) Being the capital of Maharashtra state. (xv) Facilities of processing, sizing, printing, spinning and dying etc. OTHER POWERLOOM CENTRES IN MAHARASHTRA: Apart from Mumbai, there are also some other important powerloom centres in Maharashtra. They are Bhivandi, Malegaon, Ichalkaranji, Dhule Sholapur etc. (i) Bhiwandi: Bhiwandi has got more importance in the textile industry than the others centers of powerloom as it is located near Bombay. Because of locality, Bhiwandi received all facilities that are available in Bombay. Presently, more than one lakh powerlooms are running over there. The powerloom industry got rapid growth and expansion due to financial assistance and support of mill owners from Bombay. One more reason is that, in Bombay, after 1980, the mill mazdoors went on strike under the leadership of Datta Samant. Nearly 13 mills were locked due to less than enough capital and strikes. Lakhs of mazdoors became jobless. The mill owners turned towards Bhiwandi by supplying sized beams and yarn and encouraged the setting of powerlooms. The mill owners received prepared cloth. It is called "Master Weavers". Approximately 60% powerlooms are working as master weavers. At present, suiting and shirting are common products. Now a days, the famous powerloom centre is experiencing a sever crisis of electricity supply. The charges are increased from Rs. 120/- to Rs. 300/- per powerloom by the Government of Maharashtra which is unbearable not only for the powerloom owners form Bhiwandi but also the other centres. Due to the crisis 50% powerloom units are locked-up. (ii) Ichalkaranji: Ichalkaranji is one of the eminent powerloom centre in southern Maharashtra. The powerloom industry started here in 1904. The specialty of this center is the product of multi-coloured ‘Patal’ sarees made from imported yarn. After 1956, the weavers of Ichalkaranji shifted their production to grey cloth in fine and superfine dhoties and mulls. Influenced with the present age of modernization, the weavers are on the path of modernization of powerlooms. (iii) Sholapur: Sholapur is situated in the southern part of Maharashtra. Sholapur is a centre where mills, handlooms and powerlooms have developed side by side. In the beginning, the handloom was providing the local needs. After the First World War, a mill was established in 1950-55. Hence the weavers purchased and set up their own looms. At present, one lakh powerlooms are working there. They are busy in manufacturing Jacquard chaddars and towels. These products have great demand in the country and are also exported to African countries and are earning foreign exchange. (iv) Dhule: Dhule is situated on Bombay-Agra Road, to the east of Malegaon in Maharashtra, at a distance of 55 kms. It is also known for its coloured sarees as is Malegaon. At present, 20,000 powerlooms are working there. Presently some powerlooms are manufacturing grey cloth of cotton, polyester and rotto etc. At present, all the powerloom centre in Maharashtra are facing the crisis of the increase in the electric charges. The fixed rate of Rs. 120/- to 160/- now has been increased upto Rs. 300/- per powerloom by the M.S.E.B. Strikes, morcha, hunger strikes, processions, meetings and representations are organized to ventilate grievances. A COMPARATIVE STUDY OF POWERLOOM INDUSTRY WITH THE HANDLOOM SECTOR AND MILL SECTOR : The Indian Textile Industry is divided into three sectors. Among them, powerloom and handloom sectors are decentralised and non-organized. The Mill Sector is powerful and is dominated by the capitalists. Generally, it is said that, the powerloom sector is the great rival of mill and handloom sectors. According to the 14th report of the Estimate Committee of the 6th Loksabha of March 1978 that "The powerloom industry at all on the contrary is playing a role of restricting the monopolistic powers of Mills sector and thereby helping a common man to get cloth at reasonable price." 17 It is a matter of fact that the powerloom industry is extended to small towns and villages in Indian Territory. At all the centres, the weaving pattern of cloth is varied according to the area. So there is no question of competition. At present, in Ichalkaranji and Sholapur, powerlooms are engaged in producing ties coloured cheek sarees, mull etc. In Madras, the handlooms are concentrated on the production of dhoties, saree, shirting, coating and towels. In Malegaon coloured sarees grey, polyester and rotto are manufactured. In fact, the powerloom and handloom sectors are producing 75 per cent of the total cloth produced in India. These two sectors are busy in providing a gainful employment to the poor people of the area. In this manner, it is helping to promote the economy of the county and also solving its unemployment problem. In spite of these important roles of the powerloom industry, it does not get any facility from the government. On the contrary, the powerloom owners are exploited by the mill owners, capitalists, traders, and middlemen. Several other restrictions are imposed by the government to time in order to save the mill and handloom sector. RECOMMENDATIONS OF THE COMMITTEES: Instead of giving any facility or financial help to the powerloom industry the governments appointed various committees to find out the problems of textile industry in the country. Kanungo committee (1954), Ashok Mehta Committee (1964), Siva Raman Committee (1974) were appointed by the government to study the problems. Among them, the only committee of Ashok Mehta, recommended in a true manner and in sympathetic way for the powerloom industry. It was the first committee which advised the government to include the powerloom sector in Five Year Economical Development Plan. It also granted the powerloom industry its social status. The Kanungo Committee and Siva Raman Committee recommendations were disfavouring as well as discouraging the powerloom sector. According to the fact Finding Committee (1942) "A more serious rival to the handloom industry than the mills had arisen in the small sector powerloom factory." This rival combines itself owing to its medium scale production, the advantages of both mill and handlooms. It can utilize cheap electric power and avail itself of the modern appliances in weaving. The competition from powerlooms is a growing phenomenon which about 15 years ago the handlooms had nothing to fear from. Powerlooms are not subject to any irksome restriction such as factories Act or special taxes. As such they are source of competition in important line to the mills as well. The cost of production in powerloom is comparatively low owing to small overhead charges and economics of mechanical production. 18 The recommendations of Siva Raman Committee were very harmful for the powerloom sector. Therefore, there was no question for the Mill sector to go against it. The Siva Raman Committee suggested that for the protection of handloom weavers against unemployment, the government must impose restriction on further expansion and growth of powerloom industry. Really, the recommendations of Siva Raman Committee were poison for the powerloom sector. So it is clear that anytime and anyway, the policy of the government in respect of powerloom industry is not favourable and encouraging. Because of this the powerloom suffered and faced a lot of difficulties and could not do much progress in the textile field of the country. Whatever progress is seen by the powerloom sector in various centres are self dependent and without any help from the government Later or earlier in the B.J.P. Govt., the textile minister Mr. Kansi Ram Rana who is from Surat in Gujrat constituency which is one of the powerloom centres in India, paid sympathetic heed towards the industry. It is hoped that some encouraging and needful step would be taken by him. It is because while formation of All India Textile Board, Mr. Momin Mujeeb Ahmed has been selected from Malegaon powerloom centre as a representative. EXPLOITATION OF POWERLOOM OWNERS: Yarn is the basic need for handloom and powerloom industry. These yarns are supplied by the textile mills. The handloom requires the yarn in the form of hanks while the powerloom in the form of cones or sized beams. The Textile Mills and Spinning Mill are dominated by the capitalist. They have created the vicious circle of distribution chain of yarn to the powerloom weavers. In the selling process of yarn there are relatives of mill owners, agents, brokers and other middlemen who purchase and sell the yarn. In this way, the sold and purchased yarn passes through four to five hands before reaching its actual users. At every stage, the profit is earned. These middlemen buy and fix the price of yarn according to the fluctuations of demand and supply. They create a shortage of yarn and increase the price. In this way, the powerloom owners or weavers have to pay more than the actual price of millrate, so the poor, disorganized and helpless powerloom weaver owners are exploited by the millsowners. Apart from this, the government does not take any effective step to stop these malpractices of mill owners. There is no doubt that the small powerloom owners and weavers are very much in the grip of the mill owners and middlemen and being exploited and put to hardships. It is because, during the elections, the mill owners and capitalists give election funds to the political parties for their expenditure in election. After the election the mill owners sell yarn according to their will by creating artificial shortage of yarn. That’s why the government does not pay any heed towards the protest or strike of the powerloom owners. EXPLOITATION BY THE CLOTH MERCHANT: Lack of processing facility is one of the deficiencies in the powerloom industry. As a result, the powerloom owners helplessly sell their grey cloth from the mills and traders or master weaver who sells the cloth on higher rate after processing. Here these traders and mill owners created artificial market crisis and exploit the powerloom owners. This exploitation of powerloom owners is continued on both the sides i.e. at the selling of yarn and purchasing of cloth. The powerloom owners do not take any interest in the co-operative movement. They are totally dependent on the yarn suppliers, traders and cloth merchants. In this regard, the Estimate Committee of 1978 recommended “the state government should come forward with the time bound programme to free weavers from the clutches of master weavers.” 19 REFERENCE 1. The Powerloom Enquiry Committee Report 1964 Ministry of Textile and Commerce Government of India, New Delhi Page No. 5 2. All India Textile Mill Federation, Bombay Compendium of Textile Statistics 1999 Page No. 30 3. Ibid, Page No. 65 4. Ibid, Page No. 31 5. Ibid, Page No. 31 6. Annual Report 1998-99 Textile Industry Government of India Page No. 12 7. Ibid. Page No. 15 8. Ibid. Page No. 13 9. Ibid. Page No. 14 10. Ibid. Page No. 11 11. Powerloom Inquiry Committee Page No. 11 12. Assistance Director Office of the Commissioner Handloom, Powerloom, Ministry of Textile, Govt. of India, New Delhi. 110011 13. Powerloom Enquiry Committee 1964 Minsitry of Commerce Textile & Commwerce Government of India, New Delhi Page No. 29 14. Annual Report 1998-99, Ministry of Textile, Government of India, New Delhi Page No. 18 15. Annual Report 1998-99, Ministry of Textile, Government of India, New Delhi Page No. 19 16. R. R. Ansari, A study of Marketing Problems of Powerloom Industry in Malegaon. Thesis Submitted to University of Pune, 1979 Page No. 49 17. Powerloom Enquiry Committee Report 1964 Ministry of Commerce and Textile Government of India, New Delhi Page No. 39 18. Yantra-Magh, November 1980, Ichalkaranji Page No. 30 19. Powerloom Enquiry Committee Report 1964 Ministry of Commerce and Textile Government of India, New Delhi Page No. 31 xxx
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