ECONOMIC EVALUATION OF SILK WEAVING BY HANDLOOMS AND POWER LOOMS IN TUMKUR DISTRICT: A COMPARATIVE STUDY

Transcription

1 ECONOMIC EVALUATION OF SILK WEAVING BY HANDLOOMS AND POWER LOOMS IN TUMKUR DISTRICT: A COMPARATIVE STUDY Thesis submitted to the University of Agricultural Sciences, Dharwad in partial fulfillment of the requirements for the Degree of Master of Science (Agriculture) In AGRICULTURAL ECONOMICS By BHAVYA, A.P. DEPARTMENT OF AGRICULTURAL ECONOMICS COLLEGE OF AGRICULTURE, DHARWAD UNIVERSITY OF AGRICULTURAL SCIENCES, DHARWAD JUNE, 2014

2 ADVISORY COMMITTEE DHARWAD JUNE, 2014 Approved by : Chairman : (G. N. KULKARNI) CHAIRMAN (G. N. KULKARNI) Members : 1. (JAYASHREE A. HANDIGOL) 2. (B. K. NAIK) 3. (S. S. ANGADI) 4. (K. J. SANNAPAPAMMA)

3 CONTENTS Sl. No. Chapter Particulars CERTIFICATE ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES 1. INTRODUCTION 2. REVIEW OF LITERATURE 2.1 Growth in weaving industry in Karnataka 2.2 Socio-economic status of handloom and power loom weavers 2.3 Economics of silk weaving 2.4 Constraints of handloom and power loom weavers 3. METHODOLOGY 3.1 Description of the study area 3.2 Database and sampling procedure 3.3 Analytical tools used 3.4 Definition of terms and concepts used in the study 4. RESULTS 4.1 Growth rates in handloom and power loom units 4.2 Demographic and Socio-economic Characteristic of sample weavers 4.3 Raw material usage in silk saree production in handloom and power loom 4.4 Cost and return structures from saree production in handloom and power loom 4.5 Marketing of finished handloom and power loom products 4.6 Financial feasibility of handloom and power loom weaving units 4.7 Problem faced by handloom and power loom weaver 5. DISCUSSION 5.1 Growth rates in handloom and power loom units 5.2 Demographic and socio-economic characteristic of sample weavers 5.3 Raw material usage in silk saree production in handloom and power loom 5.4 Cost and returns structures from saree production in handloom and power loom 5.5 Marketing of finished handloom and power loom products 5.6 Financial feasibility of weaving enterprise 5.7 Problems faced by handloom and power loom weavers 6. SUMMARY AND POLICY IMPLICATIONS REFERENCES APPENDICES

4 Table No. LIST OF TABLES 3.1 Salient features of Tumkur district and selected sample taluks for study ( ) 3.2 Land utilization pattern in Tumkur district and selected sample taluks ( ) 3.3 Cropping Pattern in Tumkur district and in selected sample taluks ( ) 3.4 Irrigated area by different sources in Tumkur district and in selected sample taluks ( ) 3.5 District wise number of handloom and power looms in Karnataka during Taluk wise number of Handloom and Power loom in Tumkur District in Compound growth rates of handloom and power looms in Karnataka ( to ) 4.2 Compound growth rates of handloom and power looms in Tumkur District ( to ) Title 4.3 Demographic characteristics of sample weavers in the study area 4.4 Socio-economic characteristics of handloom and power loom sample respondent in study area 4.5 Ownership pattern of assets by households in the study area 4.6 Input use pattern in silk saree production by handlooms (Per saree) 4.7 Input use pattern in silk saree production by power looms (Per saree) 4.8 Mode of procurement of raw materials for weaving of silk Saree 4.9 Sources of Procurement of raw material for silk saree weaving 4.10 Frequency of purchasing of raw materials by the weavers 4.11 Sources of obtaining design by weavers 4.12 Change of designs by weavers 4.13 Cost of production of silk Sarees 4.14 Returns from handloom silk Saree produced 4.15 Cost of production of silk saree 4.16 Returns from power loom silk saree produced 4.17 Marketing of finished products by handloom and power loom weavers 4.18 Average Annual income of sample weavers from different sources 4.19 Distribution of income among the sample respondents 4.20 Composition of products, by value and weavers share in consumer rupee (WSCR) 4.21 Pattern of employment in weaving and government benefits 4.22 Investment cost in handloom and power loom weaving units 4.23 Evaluation of investment in handloom and power loom units 4.24 Problems faced while procuring the raw materials 4.25 Constraints with selling products 4.26 Health problems faced by handloom and power loom weavers

5 LIST OF FIGURES Figure No. Title 1. Maps showing the study area 2. Number of Handloom and Power looms in Tumkur district 3. Socio-economic characteristics of handloom and power loom sample respondent in study area 4. Procurement of raw materials for silk saree weaving 5. Average Annual income of handloom weavers Households 6. Average Annual income of Power loom weavers Households LIST OF APPENDICES Appendix No. Title I Cash flows in representative handloom unit II Cash flows in representative power loom (4 Box loom) unit III Cash flows in representative power loom (2 Box loom) unit IV Cash flows in representative power loom (Computer jacquard) unit V Cash flows in representative power loom (Chain jacquard) unit

6 INTRODUCTION Clothing occupies an important place in our society since pre-historic time. Throughout recorded time and probably even before, clothing along with food and shelter has been recognised as one of the primary needs of the human beings. According to Horn (1968) clothing is the second in triumvirate of fundamental necessities of life and it is an expression of the person reflecting his personality, way of living and his thinking. In recent years other basic necessities like health, transportation and ownership economic asset to obtain an adequate level of living have also been added. Whatever may be the priorities, clothing remained as an essential element which is necessary for human well being. The Indian textile industry is a personification of Indian culture. It has always occupied a place of honour in the industrial system of India. The spindles and the spinning wheels found in the excavation of the Sindhu Valley have proved that the textile industry is as old as Sindhu Valley civilization. Clothing occupied prime position and reflected culture of the people at all times. Indian textiles were famous for their exquisite beauty and fineness. It had become the symbol of aristocracy, gracefulness and artistry in the high society of Europe. It reached the zenith of glory before the drone of industrial revolution in the west. Mahatma Gandhi discovered the power of Charaka and used it to spin the dream of Swaraj / Independence from the British Yoke. Khadi being spun on Charaka has been associated with our heritage and history since time immemorial. However due to British supremacy over India and impact of industrial research and technology, unsystematic attitude of the government, lack of capital and severe competition from the foreign countries, the Indian textile industry is facing many challenges, to which there is need to find out solutions. Today textile industry of India comprises of khadi, woollen, silk traditional handloom sector with primitive. Power loom sector which is technologically improved form of the handloom sector and the composite mill sector with its advanced technology. Among all the three, the handloom sector is most scattered and spread throughout the country and is seen even in remote country side. Power loom sector is decentralized and scattered in and around some identified centres of handloom sector. The mill sector is well organised and integrated with spinning, weaving and processing in the same roof. Prospects of Handloom Sector in India The process of weaving primarily constitutes interlacement of two sets of threads viz., warp and weft and the equipment which operates this interlacement is called loom. The handloom is made up of a stick or wooden frame for weaving but more often it is defined as a frame for weaving equipped with some wooden devices. In India various types of looms are traditionally in practice. They can be noted on the nature of cloth produced or the places of their origin. They are generally named as Pit loom, Frame loom, Back strap loom, Vertical loom, etc,. Recently automatic and semi automatic jacquard looms and mechanical jacquard looms are becoming familiar in India. Pit looms are the most widely used handlooms in India. Interestingly, even today the finest varieties of fabrics, known for their beautiful designs and textures, are produced on throw shuttle pit looms. The famous Brocades of Varanasi, the Jamdanies of Tanda, the Patola Sarees of Patan, the Himroos of Aurangabad a vast range of exquisite hand-woven fabric of India are produced on these simple throw shuttle pit looms. As the name implies, the loom stands over a pit and the process of picking is done by throwing the shuttle across the slay by hand. The exquisite fabric produced in different parts of the country has given the status of geographical indication to the textile which is recognized as unique in their places of origin. Frame looms came into existence due to certain advantages they have in weaving designed varieties with more than two treadles. These are also helpful in weaving fabric requiring mass production. Frame looms are employed in manufacturing attractive furnishings, bed sheets and madeup items on a large scale. Semi-automatic looms are now acquiring popularity in some weaving centres in the country. Only a limited range of fabrics can be manufactured on these semi-automatic looms. These looms are operated by human effort by pedalling with legs or by moving the slay by hand. Though the methods employed in making handloom fabric are simple, the results are rather

7 extraordinary. The human involvement and ingenuity results in new creations which are unique and aesthetically delightful. According to the statistics available in India handloom industry provides livelihood to nearly 124 lakh people. Out of which 60 per cent are women, 12 per cent Schedule Caste and 20 per cent are Schedule Tribe (Annon 2001) and a chunk of handloom weavers belong to minorities. Handloom Census The first handloom census was conducted in 1988 and the second census was conducted in Presently the third census was conducted in and the highlights are discussed herewith. The latest third census of handlooms was conducted in April The National Council of Applied Economic Research (NCAER) was asked to conduct the third census of Handloom workers and issue photo Identity card to weavers and allied workers by Development Commissioner (Handloom) GOI, New Delhi. The challenge before NCAER was not only the coverage of eligible handloom households and workers but also to photograph all adults for the issuance of photo identity cards. The survey for the third census of handlooms was initiated in September 2009 and covered all the 30 states including Union territories of India, across both rural and urban locations. The coverage of the third census of handlooms in is larger compared to the earlier census exercises carried out in and Objective of Census First objective, Assessment of the total number of units both households and non-households engaged in handloom activities. Second objective, Assessment of the total number of workers involved in the activities of weaving, pre-loom and post-loom activities. Third objective, Assessment of the total number of looms both households and non-households and assessment of working and idle looms. Fourth objective, Assessment of the employment structure of the handloom sector for weavers and allied workers; and final objective Undertake the photography of all handloom weavers and allied activity workers aged between 18 and above, and to collect their individual details for photo identity cards. Major outcomes of third census are Handloom activity is mainly a rural phenomenon. 87 per cent of total household units (27.83 lakh) are located in rural areas. Nearly 61 per cent handloom worker households reside in the northeast and are in domestic production. Among majority are weaver households (82 per cent), only 13 per cent households exclusively engaged in allied activities. Over half of the total household units are engaged exclusively in commercial activities. Nearly 47 per cent of handloom weavers households are BPL and rest are non BPL. The majority of the household looms in India are Frame looms (59 per cent) followed by Pit looms (25 %). Further 78 per cent of looms in north-eastern states are Frame looms, other regions are dominated by pit looms. Nearly 75 per cent of total workforce engaged in handloom activities is female. A majority (60 %) of adult handloom work force has attained a little schooling. Nearly 67 per cent weavers are engaged on a full-time basis. Prospects of Handloom Sectors in Karnataka Karnataka can be called as Mini India with its diverse culture, languages and faiths. The State possesses much potential for economic development. The textile industry occupies an important position in the industrial landscape of Karnataka by way of its contribution to industrial production, employment generation and export earnings. It is next only to the agriculture sector in terms of employment generation. The textile sector contributes 0.50 per cent to the GDP of the state, approximately Rs.1,00,000 crore in terms of value. Karnataka accounts for 20 per cent of the national garment production, valued at around 7,500 crore and 8 per cent of the national exports. There are more than 70 large and medium textile industry in Karnataka and more than 50,000 firms that qualify under the micro, small and medium category in this sector, and the largest segment under MSME (Micro Small and Medium Enterprise) sector in the state. As per the data made available by Annual Survey of Industries (ASI) there are total of 3.86 lakh manufacturing units engaged in textile and garment sectors in the organised and unorganized categories in Karnataka. Textile units are spread all over the state; however Bagalkot, Belgaum, Bangalore, Tumkur, and Gulbarga districts are having the highest concentration of textile production units in the state.

8 Raw material Potential for handloom sector Handloom weaving has been in carried out in Karnataka since ancient times. Literary sources such as the works of Harihara, Bilhana and other poets of the medieval period speak of a variety of fabrics produced in Karnataka and also bear references to taxes that were payable on yarn, looms and dyes. Evidently, under the patronage of the ruling monarchs and the nobility, weaving was always flourished in the state and enjoyed a position of importance next only to agriculture. With the advent of the British rule, the situation changed drastically and the weaving industry suffered on account of the policies of the imperial and also the unfair, and severe, competition from mill-made fabrics. Later on rulers the swadeshi movement propped up the industry. Thereafter, especially after the dawn of independence, the government at the centre and also at the state have been providing various incentives consistently to the handloom industry to stabilize it and regain its former glory. Karnataka has a good raw material base in respect of cotton, silk and wool which helps the development of textile industry. The state produced about of 9 lakh bales of cotton ( ) accounted approximately 60 per cent of country s production contributed by 10 districts of the state. Karnataka is the largest producer of the country s mulberry raw silk, accounting 8241 tonnes ( ) and is approximately 60 per cent of country s production. Production of silk is concentrated in the six major districts of the state. Namely Karnataka produced an approximate of 5.3 million kilograms of wool ( ), and accounted about 11per cent of total production in the country. Six major districts of the state contribute to wool production. These details explain the potentiality of textile sector in Karnataka State. The handloom industry of Karnataka is the largest cottage industry. In terms of magnitude of employment it is next only to agriculture. Therefore, it occupies an important place in the development of the state by catering to the needs of economically weaker sections of the society. The major highlights of handloom sector in Karnataka state could be summarised as: The total number of handloom worker households in the state was 37,680. Out of which 33,854 (89 per cent) households are in rural area and remaining i.e 3826(10.15per cent) households are in urban area. Hence the handloom activity is mainly a rural phenomenon. Out of total handloom worker households (37,680), 842 households belong to Scheduled Cast, 1144 households belong to Scheduled tribes, 32,468 households belong to other backward caste and 3226 households are others. In Karnataka the total number of handlooms is 40,488. Out of which 34,606 are working looms and 5,882 are idle looms. Out of total handloom worker households (37,680), the number of households with looms is 19,896 and the households without looms are to an extent of 7,784. The average size of handloom household is Out of total handloom workers (1, 82,065), the number of male (14 years and above) workers is and that of females (14 years and above) is 66,259 and the number of children (less than 14 years) is 47,727. The average earning of Handloom worker household is Rs.24, 897/- per year. With regard to the nature of dwelling house, 6830 (18.12 per cent) Handloom households are having kuchha house, 29,494 (78.27 per cent) households are having semi pucca house and only 1356 (3.5 per cent) households are having pucca house out of total 37,680 Handloom worker households. Out of total handloom worker households, 57.7 per cent (21,744 households) are having membership in Co-operative Society. With regard to source of loan taken by handloom households, 4.6 per cent from money lender, 39.8 per cent from master weaver, 2.2 per cent from friends / relatives, 27.3 per cent from Co-operative Societies, 19.7 per cent from Commercial banks, 4.1 per cent from Self Help Groups, 0.45 from traders and 1.9 per cent from others. The numbers of indebted handloom households is 0.1 lakh (25.1 per cent). Out of total handloom worker households (37680), 7223(19.16 per cent) households report that their children are interested in taking up handloom as profession: 12,827 households report unwillingness and 14,436 households report that they are uncertain and 3,194 households do not report anything. Out of total handloom households in Karnataka the number of handloom worker households reporting high threat from mill/power loom sector is 12,458. The moderate threat is reported by 15,289 households and there are the handloom households saying that there is no threat and the number of such households is 5,701. At the same time some 4,242 handloom households do not have any idea regarding threat from mill or power loom.

9 Power looms sectors in India and Karnataka During the 20 th century, there has been a considerable development in mechanical devices of weaving operations. Several new types of looms have came into existence, where as older have been refined and their scope extended. Thus power loom sector consists of manufacturing cloth with the help of up-graded handloom technology by the weavers. The introduction of decentralized power loom sector dates back to 1904 when the Jahagirdar of Ichalkaranji (the princely state) gave encouragement to weavers to install power looms and improve their standards of living. Later they were introduced in the Indian weaving industry during Till 1927 the growth of this industry was slow. In fact, this was major breakthrough in the decentralized weaving industry as manpower was substituted by mechanical power. In the early thirties many small entrepreneurs purchased looms discarded by mills in Bombay and Ahmadabad and converted them into power looms. This practice of using discarded looms continues even today but looms manufactured as power looms are also in evidence. Since these looms are reducing the strain of weaving operation and are relatively less expensive with better efficiency, productivity and higher margin of profit, thus the power looms have become more popular. During the II world war, the increased requirement of defence demand for cloth and also the civilian population boosted the development of power looms. Further the expansion of electricity services in the country also helped the power loom sector to strengthen its roots during this period. The growth of power looms was actually started during 1960s and year after year there is tremendous growth in the number of power looms. As a result, presently there are more than lakhs power looms in the country. Looking at the speed of increase in number of power looms, one may conclude that better future and prospects for power loom industry. Maharashtra has the highest number of registered power looms (11,06,474) employing 27,66,185 persons followed by Tamil Nadu (38,73,79) employing 96,84,45 persons and third state in respect of number of registered power looms is Gujarat (32,33,39) employing 80,83,48 persons, and then comes Madhya Pradesh with 10,48,23 registered power looms, providing employment to 26,20,58 persons. Karnataka is the fifth state in respect of number of registered power looms (89,900), offering employment to 2,04,725 persons.( In Karnataka 30,988 families are engaged in power loom weaving. The power looms of the state provide employment to 1, 27,535 weavers directly. The power loom have been extensively developed in the districts like- Tumkur, Bangalore (R), Bagalkot. There is a moderate development of power looms in the districts like Gadag, Chikkaballapura and Bangalore. In the remaining districts the power loom activity is found to be meagre (Census 2010). The power loom industry of Karnataka is the fifth largest in the country in terms of authorized looms. Silk varieties predominate the product mix that the industry produces; followed by art silk and cotton varieties. Tumkur and Bangalore are specialized in production of silk sarees, whereas Belgaum has concentrated on pure polyester sarees and Bagalkot is famous for cotton sarees (Khan and Ilkal sarees). Present study The present study is on the Economic Evaluation of Silk Weaving by Handlooms and Power looms in Tumkur District: A Comparative Study. The handloom and power loom industries are facing several problems such as non-availability of adequate quantity and quality of raw material, shortage of working capital, non-availability of marketing facilities, poor credit needs to handloom weavers in the co-operative field, low capacity utilization due to non utilization of new technology, failure of cooperative movement, stiff competition from organized mill and other sectors and also low budget allocation from central and state governments and improper utilization of released funds. About 613 weavers suicide cases have been registered and 1500 weavers have attempted to commit suicide due to lack of reimbursement of their personal loans taken from micro financial institutions and money lenders during 1997 to 2010 in India (Srinivasa Rao 2012). Majority of the weavers in the state are not financially sound because of inadequate earnings from weaving. Many Primary Weavers Cooperative Societies are defunct, very few societies are earning profits and the other societies are eagerly waiting for a saviour to lift them from the disastrous conditions. Considering the above facts, the present study is undertaken to through light on the status of weaving under handloom and power loom approaches with following specific objectives.

10 Objectives: 1. To analyze growth in weaving industry in Karnataka. 2. To study the socio-economic status of handloom and power loom weavers. 3. To asses the financial feasibility of investment in handloom and power loom units. 4. To analyze the economics of silk weaving products. 5. To document the constraints of handloom and power loom weavers in the study area. Hypotheses: 1. Growth in the power loom sector is more than the handloom sector. 2. There is a wide variability in the socio-economic status of handloom and power loom weavers. 3. Investment in power loom is financially more feasible and economically viable than in handloom units. 4. Silk weaving is profitable in both handloom and power loom units. 5. Extent of employment is more in handloom compared to power loom 6. Income generation is more in power loom than the hand loom. 7. Handloom and power loom weavers have number of constraints in production and marketing. Presentation of thesis The thesis is presented under six chapters. Chapter-I Introduction: In this chapter, the nature, importance of the present study and the specific objectives of the study have been indicated. Chapter-II Review of literature: it presents a comprehensive review of the relevant research work carried on related topics by economists. Chapter-III Methodology: It outlines the features of the study area, sampling design followed, relevant data and analytical tools used in the study. Along with recent concepts and terminologies. Chapter-IV Results: It is devoted to present the main findings of the study through tables and graphical presentations. Chapter-V Discussion: It presents meaningful interpretation and discussion of the results of the study. Chapter-VI Summary and policy implications: This chapter provides summary of the entire research work and suggests the policy implications emerged from the findings. Limitations of the study Due to the limitations of time and other resources, the study was confined to Tumkur district of Karnataka state. It occupies the second place in respect of number of weavers in the state. The secondary data collected was limited for period from 1995 to Further, the expressed opinions of respondents with regard to the various issues of the present study may not be totally free from personal bias and prejudice. Hence, the results of the study cannot be generalized beyond the limits of the study area.

11 REVIEW OF LITERATURE A review of past research helps in identifying the conceptual and methodological issues relevant to the study. This will enable the researcher to collect relevant data, analyze and subject them to sound reasoning and meaningful interpretation. This chapter attempts a brief review of the relevant research literature related to the present study. and compare them in the context of the present study. Keeping in view, the objectives of the present study the reviews are presented under the following headings. 2.1 Growth in weaving industry in Karnataka 2.2 Socio-economic status of handloom and power loom weavers 2.3 Economics of silk weaving 2.4 Constraints of handloom and power loom weavers 2.1 Growth in weaving industry Lakshmanan and Thiagarajan (1989) indicated that 90 per cent of the silk was grown in South India that too mainly in Karnataka. The compound growth rate for mulberry silk production, acreage and yield in India for the period to were estimated at 4.0, 2.6 and 1.6 per cent, respectively. The area under mulberry increased from 1.05 lakh acres in to 2.18 lakh acres in while, the raw silk production increased from 2046 tonnes to 7029 tonnes over the period. Karnataka was found to account for 61.2 per cent of total raw silk production in the country. Thangamuthu and Venkataravi (1989) made an analysis of trends in mulberry cultivation, cocoon production and the reeling of raw silk for the period from to In their study on assessment of the potentialities in sericulture in Tamil Nadu; found that there was a substantial increase in the area under mulberry cultivation resulting in an increase of about 40 per cent per annum in cocoon production. They stated that the state's weaving sector had not developed in line with raw silk production, resulting in almost half the silk being exported to neighbouring Karnataka. They also estimated that the development of the weaving sector could result in the generation of direct employment for more than 8000 persons. Pani (1990) studied handloom Development Policy-A critical appraisal concludes that, the handloom sector was facing a deeper crisis and it might had face the danger of its liquidation in the coming decade, if present trends continue. The researcher suggests measures like, modernizing the handloom sector on a war footing, altering the production structure to suit consumer preferences, strengthening the private sector in the handloom industry, scrapping the controlled cloth scheme, regulating the supply and prices of yarn, chemicals and dyes. and enforcing restrictions on further expansion of capacity in mills and power looms. Seemanthini (2004) studied status of Handlooms in Andhra Pradesh. The researcher has expressed her views on handloom industry by saying that; today s globalised macroeconomic processes have also affected the non-formal sector and a contemporary understanding of the nature of handloom industry and its responses are very important. The perspectives on handlooms tend to see it as a traditional activity on the decline. There is lack of understanding of the very structure of the handloom industry and its field dynamics. Shahbaz and Ananthan (2008) studied export marketing of Iranian hand-woven carpets. The researcher uses the both primary and secondary data. the researcher uses the 150 samples for study. Primary data was collected through questionnaire. And secondary data was collected through records, documents available in the Iranian carpet co. ministry of commerce, institute of commerce research and surveys, Iran centre of census etc. SPSS software used for analysis the data research. The study revealed that export of hand woven carpet in Iran is due to cheap manpower, raw materials and power full export management. In examining the problems of Iran hand woven carpet export management it can be concluded that the improper management and lack of a unique centre of decision making in export marketing and instability in export regulations policies. Weakness of state management in harmonizing the state and private sectors has caused reduction in Iran hand-woven carpet.

12 Khan and Khan (2010) tackles the reasons for the declining growth rate of Pakistan Textile Industry largely due to macro economic factors like depreciation of currency, rise of inflation rate, global recession, internal socio-political security concerns, high cost of production, this study also suggest some broad general recommendations like normalization of socio-political factors, withdrawing the withholdings and sales taxes, increasing research and development, government subsidy and minimizing internal disputes among the exporters. Manikandan and Thirunuvakkarsu (2010) studied Tamilnadu power loom industry issues and challenges (a critical study). The researcher used both primary and secondary data for the study. The research revealed that the growth of power looms in Maharashtra and Gujarat averaged 2 per cent per annum, the annual growth rate in Tamil Nadu is much higher about 6 per cent. In order to achieve the target of $ 50 billion set for the textile export by the year 2010 can be achieved only modernizing the power loom sector in the following ways: modernisation of power loom service centre, power loom modernisation, skill up gradation, establishment of new power loom centers, establishment of power loom complex, Investment subsidy in automatic and semi-automatic power loom units. The modernisation/developmental strategy should be based on the exiting competitive advantages. Anu (2011) studied Wealth and Deprivation readymade garment industry in Bangladesh. The study revealed that Bangladesh readymade garment industry has taken the advantages of local capitalists and also big retailers and western governments are reaping the benefits of workers (mostly women), inevitably, the resistance of the victims is taking shape. Bindu (2013) studied determinants of demand for Indian textile industry. The researcher uses the secondary data for the study. The study revealed that Indian textile industry has experienced a reversal of the long term declining trend in domestic demand after the early 1990s. much of the decline during Period - I (1983 to ) was accounted for by the rich in rural and urban areas who chose to save a large proportion of their income further, they increased their spending across a range of competing luxuries like consumer services, goods for textile being necessities did not record any increases in demand by the rich. The increase in privatisation of essential services, like health and education, affected expenditure on clothing by the medium and lower income sections of population. Higher prices of textiles also restricted the clothing demands of these groups. Overall, a slowly growing economy during Period - I could not deliver increased demand. Muthe (2013) studied growth and performance of textile industry in Nanded city, the researcher revealed that during 2001 there were 210 looms existed in Nanded city which reached to 248 looms in 2005 and 336 power looms upto Although number of looms grow year after year(except 2004) tendency of rise in number seems very slower, production was lakh meter in Rose to lakh meter in 2005 and lakh, meters in Annual growth rate of textile power looms production in Nanded ranging between 3.5 per cent to 7.5 per cent. Senthilkumar and Rajendran (2013) studied comparative study on performance of Indian power loom sector during pre and post LPG scenario. From the year of 1995 to 2012 performance of power loom sector clearly indicating that there was a tremendous growth. The performance of power loom sector has been fluctuated over the years in case of production. It ended with Rs crores from Rs crores in 1995 to There were ups and down in the sales even though the power looms have good amount of production from Socio-economic status of handloom and power loom weavers Anon. (1988) though The Ministry of Labour, conducted a detailed survey on Working and Living Conditions of Workers in Power loom Industry in India. The survey has revealed that a majority of the power loom units have not provided good working conditions to workers. The very nature of the units which are cottage industries have come in the way in providing the needed facilities for a decent working conditions to the workers in the power loom industry. Sundari and Manimekalai (1989) studied problems of women workers in handloom industry at vengamedu of Tamil Nadu. The study revealed that 90 per cent of the respondents were below poverty line. Meher (1995) studied handloom industry and socio-economic conditions of weavers in Orissa. The study critically examined that, due to lack of proper organizational efforts this traditional cottage industry is losing its attractive occupational status. Even the highly skilled weavers fail to make ends meet by solely depending upon this occupation. As a majority of weavers are illiterates and semiliterates, the weavers co-operative society at the village level is found to be under the effective control of dominant non-weaving and vested interest group consisting of private master weavers, petty merchants and the like.

13 Sannapapamma (2000) studied silk sarees of Molakalmuru in Chitradurga ditrict. The research revealed that majority of them were belonged to middle income group, weavers purchased raw material from Bangalore, Rayadurg and local dealers. Weavers always faced problem of hike in price, inferior quality of filature and charaka silk, untimely supply and scarcity of zari. Krishna (2004) studied income, expenditure, indebtedness, and poverty among the handloom weavers The study conducted in Srikakulam district. The researcher used the primary data for the research, A total of 200 sample households was collected from comprehensive schedule technique. The study revealed that 65 per cent of the weaver s households are found to be living below the poverty line and out of which per cent are concentrated in the expenditure range of Rs The high level of under-employment and low wage rates are found to be the main reasons for the high incidence of poverty. Average the purchase of deficit of income over expenditure is around 46.40% which indicated the high level of indebtedness among the handloom weavers households in the study area. The average household s income is in Koppara village and high Ampoli followed by Boddam. The per capita income is also relatively higher in Ampoli and Boddam. Than the other 2 villages. The reason is most of the weavers in these 2 villages are producing better quality cloth with better wage rates. an average each worker in the sample village is gainfully employed approximately for a maximum of 6 to 7 months in a year in weaving activity. Hence, the level of unemployment is almost 5 to 6 months in the handloom weaving activity the estimated under-employment is around 38 days to 60 days in all sample villages. Sudha et al. (2006) studied existing status of handloom weaving units of Rajasthan. The researcher used primary data from 180 handloom weaving units collected using interview schedule and the data was analyzed using tabular method. The study revealed that existing status of hand loom weaving units of Rajasthan are at present in a critical condition while, the know how is available in abundance. These weavers are handicapped by certain conditions and include inadequate finance, marketing bottle necks and lack of adequate infrastructural facilities. The government and other allied agencies should come forward with package of assistance viz. both technical and financial, the decentralization of this sector will help to solve the problem of handloom units and will improve the condition of weavers and will preserve the rich culture and heritage of handloom weaving. Sudha (2007) studied Durrie weaving industry of Rajasthan. The researcher used both primary data for the study. The primary data were collected from 90 samples weaving units through interview method. The study found that due to the lack of proper motivation among the young generation they showed discontentment towards the vocation. This sort of atmosphere is not good neither to the industry nor to the economy. Hence, there is imperative need on the part of the government to take proper steps to encourage the youth towards this traditional activity which not only protect the rich heritage of Indian economy but also solve employment problems to a great extent among the youth. And also Durrie weavers was pathetic, they were handicapped due to illiteracy, inadequate finance and marketing bottlenecks. Geetanjali and Nagabhushan (2009) studied poverty among weavers: study of Srikakulam in Andrapradesh. the researcher used primary data for the study. Primary data was collected from pre - tested well structured schedule. Multistage random sampling technique was used for the selection of district, village and households. The total number of sample size was 600. The researcher used the statistical tools of multiple regression model and least square method for estimation of regression coefficient. The study revealed that, about per cent of the weavers households were falling below the poverty line. And the remaining per cent household were above the poverty line. However also not so well off. The incidence of poverty among the weavers was uniformly high was because of lack of usage of modern technique in weaving, production of only traditional varieties with low count yourn, lack of sufficient financial support, lack of up gradation of skills and high dependency over master weavers for all aspects of production and marketing. Kousalya (2009) studied employment of women handloom weavers in Tamil Nadu. The researcher used the primary data collected from 160 weavers workers in Sellur and 140 Pratham weavers in Nilaiyur through random sampling method and analyzed using tabular method. The study revealed that the most of the people of this profession go in search of other profession deserting the weaving profession because of poor wage and lack of continuous job opportunities. This traditional profession of weaving has to be redeemed from obliteration by the government and is a moral and social obligation on its part.

14 Minowa and Witkowski (2009) historical study of a silk industry which investigated the policies and consequences of state- directed consumerism in Iran during the reign of Shah Abbas I ( ) of the Safavid dynasty. It was observed that building infrastructure, encouraging international trade, controlled production, and marketing through means of communication were used as promotional efforts to boom the industry. Ruby and Rachana (2010) studied livelihood through handloom weaving. The study was carried out in Jaipur district. the researcher used the primary data for the study. Sample size was 500. The data was collected through questionnaires method. The research revealed that handloom weaving is sole source of income for almost entire weaving community but they are hardly making the two ends meet. They are still stick to this ancient art where the city offers hundreds of other job opportunities. Satyanarayana et al., (2012) studied non-farm sector in rural development with references to handloom industry in Ananthapur. The study was based on the primary data. Using simple random sampling technique. The primary data was collected from 200 sample handloom weavers families of Ananthapur district. The researcher uses the comprensive schedule for collecting the necessary primary data. The study revealed expenditure pattern that 10.64% of respondent incurred an annual family expenditure in the range of Rs 15,000 to 25, % of fall covered under the annual; family expenditure ranging between Rs 25,000 to 35,000 while over 17% of the respondents accounted to have incurred expenditure over Rs 35,000 in the study area, implying the fact that the silk handloom sector sufficiently sustained the weaving households. 52 per centage of the silk handloom workers earn an income less than Rs 25,000 per years while 26% of them earn annually an income ranging between Rs 25,000-50,000 and only 22.66% of the weaver workers in the sample villages earn income over Rs 50,000 per year. Employment pattern that there are 1703 silk handloom in the 10 sampled villages in the district. According to a study conducted by late Sri. Pragada Kotaiah, an authority on handlooms, every three looms generate to 5 persons on full time basis. Based on this 1703 looms generated job to 2895 workers in the sampled villages. Kumada and Rizwana (2013) studied problem faced by handloom Industry- by taking weavers Co-operative societies in Erode District in Tamilnadu. The present study was in Descriptive in nature. The required data for the study was collected from the primary sources. Stratified random sampling technique was used to selected of 140 handloom weavers co-operative societies in Erode Districts and to analyze the data the Henry Garrett ranking technique and per centage analysis have been used. The study revealed that though the handloom industry offers massive amount of employment opportunities to lakh of artistic weavers, recently it is facing lot of problems and it has been pushed towards the declines stage of the product life cycle. In order to increase the number of active members in the society the government can increase the wages of the weavers so that they will be motivated to work continuously and to avoid the competition from mechanized sector the government should insist the compulsory usage of handloom mark for all the products produced by handloom weavers Co-operative societies. Sadikul (2013) studied socio-economic analysis of weavers family in the District of Burdwan and Murshidabad. The researcher used the primary data for the research. Random sampling method was used for collection of data. The data collection adopts survey method. Researcher use 80 sample for the research. The study revealed that` income increases the person spent more of income on nonfood consumption items, such as- cycle, television, mobile etc there is an increasing trend of annual income from weaving with increase in both average no. of looms and average no. of family members. as family size increases, the involvement of family member in weaving also increases. As a result the number of looms also increases which leads to increase in the amount of annual income from weaving. Probability of owning luxury assets such as television increases (significantly) with increase in annual income and so on. 2.3 Economics of silk weaving Angadi (1976) studied economics of handloom and power loom industry in Karnataka with special reference to Bijapur district. The researcher has examined the condition of handloom and power loom industry in Bijapur district. The study has identified the main problems faced by handloom and power loom industry as paucity of working capital, lack of modernization, non-availability of training facilities etc.

15 Nataraj and Thomas (1976) in their comparative study in Bangalore and Kolar districts reported the yield of 100 layings of bivoltine, multivoltine hybrid and traditional hybrid races to be respectively 31 kgs., 27 kgs and 23 kgs. The operational costs for an individual crop in an acre of mulberry were Rs.990 and it was capable of rearing 350 layings, the operational cost for such a rearing being Rs.580. The net income was Rs.1,150 per crop and Rs.5,750 per annum as five such crops were obtainable in an acre. A risk factor of 30 per cent was incorporated against crop failure. Mulberry cultivation costs formed 45 per cent of the cocoon production cost while labour claimed 70 per cent of the silkworm rearing costs. Rao (1980) analyzed economic aspects of Gadwal handloom industry in Andhra Pradesh. He found that the industry was facing problem because of the exorbitant rise in price of zari yarns which in turn increased the cost of production of sarees. This rise in price had consequently decreased the demand and created problem to the weavers. Shyamala et al (1980) sampled five sericultural areas of south Karnataka comprising the taluks of Chamarajanagar, Kollegal, Kunigal, Channapatna-Ramnagaram, Anekal and Kolar-Malur. Kunigal and Anekal areas being designated as seed areas of Pure mysore and bivoltine races, respectively yielding 90 kgs and 175 kgs of cocoon per acre, per annum. Chamarajanagar-Kollegal area having rainfed mulberry yielded commercial cross-breed cocoon of 242 kgs while Channapatna- Ramanagar and Kolar-Malur areas rearing the same type of cocoon under irrigation yielded kgs and kgs per acre, per annum. The yield per 100 layings was 15.5 kgs and 34.2 kgs for Kunigal and Anekal areas, and 20.1 kgs for Chamarajanagar-Kollegal area, while 21.3 kgs and 36.2kgs for Chamarajanagar-Ramanagaram and Kolar-Malur areas respectively. It was opined that provision of irrigation, adequate rearing house, information about fertilizer and disinfection would improve yields in the deficient areas. The yield gap to be achieved from potential varied between 13 per cent and 27 per cent. Anonymous (1984) estimated the cost of establishment an acre of mulberry at Rs. 961 in the bivoltine area of Anekal taluk, Bangalore district. The total cost of fertilizer, labour manure, irrigation and miscellaneous cost in mulberry cultivation together was Rs. 1,448 per annum. The total cost of leaf, layings, labour, cocoon transport and equipment hire in silkworm rearing was Rs. 6,874 per annum. The gross and net income were Rs. 15,841 and Rs.8,940 per acre, respectively. Leaf yield was estimated at 6,000 kgs per acre and cocoon yield was 35 kgs per 100 layings. On an average, two out of five crops reared in a year succumbed to disease. Karunanidhi (1986) conducted a study on living and working of unorganised handloom weavers in Ammapet village of Salem district in Tamil Nadu. The sample comprised was 60 weavers. It was reported that majority of the respondents i.e per cent received monthly wages ranging from Rs.66 to Rs. 80 only and 1.67 per cent of the respondent received the wages more than Rs. 80 per month. Kotaiah (1986) studied huge loss in wage for handloom weavers, As per the order of Andhra Pradesh government the handloom weaver s co-operatives societies have fixed the wages as Rs per day for a handloom weaver. But the weavers were getting the minimum wages as Rs A weaver s family with three adults and one child can produce 25 sarees a month at the loss of Rs.8.83 per saree. The author computed the monthly loss i.e. the difference between the minimum and actual wages accounted for about Rs.55.2 lakh or a total annual loss of Rs.6.62 crores. Singh and Malhi (1989) highlighted on Durrie weaving in rural Ludhiana of Punjab and reviewed that, the wages of these job weavers varied with the sample design. About per cent weavers fetched wages ranging from Rs. 20 to 25 where as per cent earned Rs.30 to 35 per cent durrie with complex design. Parikh (1990) studied that handloom weavers now earn an average Rs. 300 per month. He pointed out that the policies in favour of the handloom industry would not help its weavers unless production and sales were made remunerative. Sudhakar (1990) carried out a study on employment, poverty and levels of living among the handloom weavers in Andhra Pradesh. The study revealed that wages were paid to the weavers against specified warp and weft measurements or in relation to the square meters of cloth. As these costs vary between centres and between the products the costs are more in case of silk fabrics compared to cotton fabrics.

16 Mishra (1994) carried a comparative study between member and non- member households of handloom co-operatives in Singpalli village of Sambalpor district in western Orissa. The sample size comprised of 160 respondents each. It was reported that, the annual income of member household (4.6%) and non member households (38 %) ranged between Rs.3000 and Rs. 6,000. The annual income of 2.6 per cent of the members and 4.6 per cent of the non-members was less than Rs Barua and Gogoi (1997) conducted a study on benefits of handloom. The revealed that comparatively more money can be earned from the handloom fabrics by making garments rather than selling it in fabric from. It was also found that one can earn a minimum Rs by selling 1000 garments keeping 12 per cent as a profit. Raveendra et al. (1997) conducted a study on seasonal, spatial and temporal performance of sericulture in Hassan district of, Karnataka. They reported that the average annual compound growth rate of productivity for bivoltine cocoons was 5.3 per cent. Cocoon productivity for cross breed showed an insignificant growth rate. The total cocoon production trend registered an annual compound growth rate of per cent. Lakshmanan et al. (2000) compared economic benefits over investment in rearing bivoltine and crossbred cocoons in their study on economics of bivoltine versus cross-breed cocoon production in K. R. Nagar taluk of Mysore district. The study revealed that bivoltine rearing earns higher net returns than crossbred production, mainly wing to climatic suitability, skilled manpower and technical guidance received from developmental agencies. Sannapapamma (2000) studied silk sarees of Molakalmuru in Chitradurga ditrict. The research revealed that majority cost of the pure hand-woven silk saree depends on the quantity of the zari used in it rather than the raw silk used. Savitha (2000) in their study on management appraisal of spinning mills in Gadag district of Karnataka found that, per quintal processing of cotton worked out to Rs The total cost of processing was more in the Co-operative sector unit (Rs /q). Among the different items of cost of processing, power and fuel accounted for the major cost in both the sectors. The total cost of producing yarn per quintal of cotton processed was more in co-operative sector unit (Rs ) as compared to the private sector unit (Rs ) because of higher raw material prices paid per quintal of cotton procured by them. Chandrappa et al. (2001) conducted cost-returns analysis for shoot feeding and shelf rearing methods of mulberry cocoon production in Shidlaghatta and Chintamani taluks of Kolar district, in Karnataka. The total initial investment on building and equipment was Rs. 4,06,720 for shoot feeding and Rs.2,57,600 for shelf rearing (capacity of 500 Dfls). The corresponding values were Rs. 23, and Rs. 27, per year, and Rs and Rs per crop for shoot and shelf rearing methods, respectively. The recurring expenditure per crop was Rs. 15, for shoot feeding and Rs. 17, for shelf rearing, of which the expenditure on leaf, labour and layings were maximum in both cases. For shoot feeding and shelf rearing methods, the average cocoon yields were and kg for 100 Dfls, and the net returns were Rs. 13, and Rs. 11,540.89, respectively. The average cost incurred for producing a kilogram of cocoon was higher (Rs.77.71) with shelf rearing than shoot feeding (Rs.69.43). The returns per rupee invested was higher with shoot feeding (Rs.1.76) than shelf rearing (Rs.1.58). Rao et al. (2001) in their study on comparative economics of cocoon production in coastal area and traditional areas of Andhra Pradesh showed that the cost and returns structure of cocoon production varied widely between the two areas. The cost of cocoon production was evaluated to be Rs and Rs in Chittoor (traditional area) and Eluru (coastal area) areas, respectively. The average yield obtained by the Chittoor farmers was higher (42.99 kg/100 dfls) than that of Eluru farmers (38.50 kg/100 dfls). The Eluru farmers realized a lower average price for cocoon (Rs /kg) compared to Chittoor farmers (Rs /kg) due to the non-availability of marketing facilities in that area which in turn caused deterioration of cocoon quality due to long distance transportation for marketing. The net revenue earned by Chittoor farmers was higher (Rs ) than that of Eluru farmers (Rs ). The cost benefit ratio was estimated at Rs. 1:1.70 and 1:1.22, respectively for Chittoor and Eluru areas. They also recommended that the extension agency should intensify its efforts and strengthen the marketing system in new areas to make the enterprise more viable.

17 Srinivasa et al. (2001) reported that the total cost of production of cocoons was Rs , Rs and Rs for bivoltine rearers, multivoltine rearers and the overall category, respectively, in the study on cropping patterns and income levels of sericulturists in Mandya district, in Karnataka. The net returns for the three categories were found to be Rs , Rs and Rs , respectively. They also stated that the net returns were low in the case of bivoltine rearers compared to the multivoltine rearers as the bivoltine race (CSR) was reared only from September-February in which only three crops could be harvested as compared to five crops of multivoltine. Umesh et al. (2001) observed that under shoot feeding, the total cost of cocoon production per crop of 500 DFL's was Rs , of which the expenditure on silkworm rearing alone was Rs , whereas under shelf rearing, the total cost of cocoon production and silkworm rearing was Rs and Rs , respectively, as indicated from their study on economic performance of mulberry cocoon production under different methods using chawki worms in Chintamani taluk of Kolar district. The costs of mulberry leaves accounted for the highest costs in both rearing methods, followed by labour and chawki worm costs. However, the cost incurred for labour in shelf rearing method was marginally higher (23.10%) over shoot feeding (19.38%). On an average, rearers have realized a net returns of Rs under shoot feeding and Rs under shelf rearing for every crop of 500 DFL's. To produce 1 kilogram of cocoon under shoot feeding and shelf rearing, rearers have to spend Rs and Rs.75.29, to gain a net returns of Rs and Rs.47.20, respectively. For every rupee invested in cocoon production, returns of Rs.1.82 in shoot feeding and Rs.1.63 in shelf rearing is expected. Hiriyanna et al. (2002) evaluated the economics of CSR hybrids 'vis-à-vis' the popular multi x bi hybrid (PM x NB4D2) in their study on comparative economics of bivoltine hybrids with multi x bi hybrid cocoon production. The expenditure incurred for rearing CSR hybrids was higher than that of multi x bi hybrid rearing due to usage of more inputs but benefit cost ratio-wise, CSR hybrids were rated better than multi x bi hybrids. Reddy et al. (2002) reported in their study on comparative economic analysis of bivoltine and multi-bivoltine silkworm rearing in Karnataka, that the total annual operational costs incurred by small, medium and large farmers for multi-bivoltine cocoon rearing was Rs , Rs and Rs The number of disease-free layings and number of hired labour used annually by small, medium and large farmers for rearing multi-bivoltine cocoon ranged from 1099 to 1249 and 58 to 273 mandays, respectively. Lakshmanan and Mallikarjuna (2006) reported that the cost of cocoon production per kg of cocoon increased from Rs during to Rs in , which is due to the escalation of input prices in their study on an economic analysis of sericultural farming business in Tamil Nadu - an empirical study. The average cocoon price increased from Rs to Rs They also suggested to introduce minimum support price for commercial cocoon producers to increase both profitability and productivity in the region. Lakshmanan et al., (2008) revealed that both the gross returns and net returns were quite high under the assured irrigated condition than the semi irrigated conditions. The profitability from sericulture was to the tune of Rs per acre per year in case of Karnataka state, followed by Rs per acre per year in case of Tamil Nadu and Rs. 74,607 per acre per year in case of Andhra Pradesh. The highest net return obtained in Karnataka was attributed mainly to the highest average yield of silkcocoon and price. Muralidhar and Sreenivasa (2012) studied the economics of silk cocoon Production: in Kolar. The researcher used the both primary and secondary data for the purpose of the study. The primary data was collected from the sericulturists using a pretested structured questionnaire with both open and closed end questions. Secondary data was collected from research reports, technical journals, magazines etc. the sample size was 50 which included egg producer 10, Chawki rearing 10, Cocoon producers 30. Researcher used the stratified random sampling technique for the study. The research revealed that variable cost of mulberry Cocoon rearing decrease with increased production. Where as in case of fixed cost, it increases with increased production. This may be due to infrastructure arrangement to be made for rearing house

18 2.4 Constraints of handloom and power loom weavers Nityanand (1954) studied problem and prospects of Indian textile mills and also the decentralized handloom and power looms sector stressed the need for technological up gradation of the handloom industry. One of the significant recommendations of the committee was the gradual conversion of handlooms into power looms in the cooperative field. This would enable the handloom industry technically more efficient and would improve the standard of weaving. The committee felt that this would give a boost to the development of power loom sector in rural and semi-rural areas. Anon (1964) studied problems of power loom industry. The committee focused on the financial needs of the power loom sector in the country. The committee s findings had great relevance for formulating new policies towards the strengthening of the power loom industry and improving its financial base. Onkar (1985) studied Indian Textile Industry period of and analyses demand and supply condition of textile. The author has closely examined the changes in the pattern and composition of demand for textiles. His analysis of the problem of inadequate modernization of mill industry is quire revealing. He has highlighted the declining market share of the handloom sector and the ascendancy of power looms over composite mills. Anita (1988) conducted a study on problems of hand loom weavers in Pochampalli and Vellanki of Andhra Pradesh. The findings of the study revealed that majority of the weavers were not facing any major problems either with the co-operative society or master weavers. The weavers were unhappy since they had no freedom in selecting the designs. Awade (1988) studied Power looms sentenced to death? On account of government textile policy has highlighted the chronic problems faced by the decentralized power loom industry and injustice caused to the power loom sector by the Textile Policy of Halasagi (1991) studied marketing of power loom products in Bijapur District. He has pointed out that lack of marketing organization and poor marketing efforts by unit owners is mainly responsible for the present crises in the industry. Kirsur and Shivaprakash (1991) studied marvelous and poignant story of the silk weavers of Molakalmuru and reported that the weavers were facing the problems of lack of sufficient marketing facilities to their products. The master weavers faced the problem of increased labour charges and lack of demand during off-season. Their main question is to whom to sell and how? which narrates about the constricted advertising channel. Siddhanti (1993) studied Working Capital Management in power loom industry A Case Study of Gadag Betageri. The story has highlighted the fact that a majority of power loom units in the study area have been suffering from inadequacy of working capital which has created many operational problems. Power loom unit owners have no scientific knowledge of assessment and management of working capital. He has pointed out that there is lack of awareness among the majority of power loom unit operators regarding scientific forecast, planning and controlling techniques for effective management of working capital. Hooli (1995) studied problems of marketing of power loom products with special reference to Bijapur district A Diagnostic Study. He has pointed out that, lack of modernization, inadequate working capital, lack of institutional framework, rising cost of raw materials, etc are the important hurdles in the way of smooth working and development of the industry and are mainly responsible for the present crisis in the industry. Therefore, the researcher has suggested both the central as well as state governments to give attention towards the economic upliftment of the weavers community. Narsaiah and Krishna (1999) studied crisis in handloom industry. It was identified in the study that handloom industry has been facing the problem of improper financial facilities and irregular supply of yarn. As a result of this the Weavers Societies and corporations are not functioning well. The raw material price increased every year and the cost of the handloom cloth has increased than the power loom cloth. The study found that the number of co-operative sales. Outlets in Andhra Pradesh were very limited and they are located at inconvenient place at respective canters. Gurumoorthy and Rengachary (2002) studied problems faced by handloom industry. The study identified the major problems as shortage of input, poor working capital, and accumulation of huge stock and marketing of handloom products. It was stated in the study that pricing is one of the major problem of the handlooms sector. The price of handloom fabrics fixed by the society covers

19 only the direct expenses known as cost of raw materials and wages. It does not cover indirect expenses known as overheads which in turn affect the profitability of the handloom products. It was suggested in the study that to overcome the shortage of input the capacity of the spinning mills can be increased, to overcome the working capital problem the co-optex has to settle its dues to handloom co-operatives as and when the procurement is made, to overcome the accumulation of huge stock. co-optex may be directed by government to increase its procurement further co-optex and handloom Co-operatives should jointly promote the publicity of the products through fairs and exhibitions. It was also suggested that instead of following market oriented approach the handloom industry has to follow consumer oriented approach in their production and marketing. Dharmaraju (2006) studied marketing in handloom co-operatives. Research revealed that over the decades, the experience of handloom co-operatives has been a mixed one. The arbitrary mergers, excessive control by master weavers and local power groups, politicization and bureaucratization and mismanagement of funds are some factors that have obstructed the efficient functioning of co-operatives. Manickavasagam and Pandian (2007) studied problem of women workers in textile mills: The research was conducted to study textile mills in Dindigal district. The researcher used primary data for the study. Primary data was collected through questionnaires. A selection of 110 workers was made on a simple random basis at the rate of 10 workers from each selected textile mills in Dindigal district. The study revealed that in the women mill worker have to stand in front of huge machines throughout their 8 hours of work per day. They get leg, hip and knee pain. 10 per cent of the women had uterus problem this has very much affected their health. Suggestion given by the researcher was proper utilization of workers in the textile mills would be a success. If the mills come forward to make ample provision for women workers welfare measure like canteens, credit facilities, sports club, and education facilities for their children etc. Mathiraj and Rajkumar (2008) made an analytical study on production of handloom products and their marketing. The study narrated the production related problems of the Handloom Weavers Societies and reviewed the marketing process carried out by the Weavers Societies. It was found in their study that the societies in Ramanathapuram district were facing wide fluctuation in yarn price, and lack of availability of skilled labour force was another problem. It was suggested that the production pattern, sales design may be formulated to accelerate the handloom products in the market and modernization of handloom industries can be made with a moderate cost to ease down the problems of weavers. Tripathy (2009) made an attempt to study the problems and perspectives of handloom industry in Orissa. It was opined in the study that in decentralized handloom industry there are many problems due to illiteracy of the weavers, inadequate finance and vasted interests, Procurement of raw-materials, product developments, quality control, cost control, inability to fix a stable price due to fluctuation in yarn price etc. The study suggested that handloom products marketer should understand the customer preferences about design and colour combination in selection of handloom products and they should consider product development as an essential exercise for successful marketing of handloom products. Arif and Thakor (2011) studied An analytical study of the functioning and the problems of the power loom industry in Maharashtra with special; reference to Malegaon district, Nashik. The study involved the data collected from the primary as well as secondary sources. The primary data was collected primarily from power loom units and power loom workers, Secondary data relating to power loom industry was collected from reports of ministry, New Delhi, office of the textile commissioner, Mumbai, PDEXIL(power loom development export promotion council) Mumbai, power loom service centre, Malegaon, Directorate of Textile and Co-operation, Govt of Maharashtra, Nagpur and records of Malegaon municipal corporation, and labour office etc The study revealed that to solve the problem of power loom industry of Malegaon establishment of Up gradation and modernization of plain power loom to semi automatic level, industrial estate and textile park, marketing complexes, processing facilities etc were necessary. Vijaya (2013) studied present conditions and problems of handloom weavers in Kovur Mandal, in Nellore District of Andhra Pradesh. The researcher used primary data for the research. Random sampling technique was used for collection of data. Pretested schedule was used for collecting primary data from sample of 120 Handloom weavers. The research revealed that handloom weavers faced the problem of co-operatives in respect of inefficiency in supplying raw yarn, non availability of raw yarn, lack of infrastructure, financial problems, natural calamities, labour problems,

20 high cost of raw yarn weaver s co-operative societies or Government agencies are not active in selling their product, competition from power/ mill made products. and lack of marketing facilities were the other problems. It was suggested that the Government and its allied agencies should provide more financial assistance at concessional rates to the handloom co-operative societies on need basis. The Co-operative Society should work honestly without indulging in unfair practices and canalize the benefits, facilities and incentives, offered to the weavers, and weavers should realize that the they organize themselves into for the welfare of the weavers. Jayavel (2013) studied textile industry measure on member weavers of silk handloom cooperative societies in Kanchipuram district. The researcher used primary data collected through; sample survey method from a Sample size was 684 weavers. The research revealed that majority of weaver members of the silk co-operatives felt that due to a various reasons they do not get job satisfaction in their present occupation. Due to globalisation and modernization of textile industry, the handloom co-operative weavers faced lot of problems like meager wages, poor working conditions, inadequate non-monetary benefits, and insufficient work throughout the year. Thus, the involvement of members and opinion will certainly improve the performance of silk weavers co-operative societies not only in study area but also in other areas. Hence, the Government should take necessary steps to overcome the problems of handloom weavers and improve the social status of the weavers.

21 METHODOLOGY The research methodology and design of the study is an important component of research. To analyze various objectives of the study, an appropriate methodology describing selection of study area, sampling design, nature and sources of data and tools of analysis are considered important. This chapter presents the detailed methodology adopted in the present study. The chapter is presented under the following heads: 3.1 Description of the study area 3.2 Database and sampling procedure 3.3 Analytical tools used Tabular analysis Compound growth rate Project Evolution Technique Budgeting Technique Garrett s score technique Test of significance 3.4 Definition of terms and concepts used in the study 3.1 Description of the study area The description of the study area becomes important and provides the background information about various features relevant in the context of the specific objectives of the study. The relevant information provided relates to location of the study area, demographic features related to population distribution, density and its composition, soil type and climatic conditions, agrarian prospective, crops and composition and irrigation status. The same is furnished in the following paragraphs Location of the study area Peninsular India has a land mass of 32,80,483 sq km with 15,200 km land frontier. India lies to the north of equator between 8.5 to 37.6 north latitude and 68.7 to east longitudes. India has a varied temperature ranging between 15.7 C and 35.5 C. Indian textile industry is one of the largest and oldest sectors in the country and among the most important in the economy in terms of output, investment and employment. The sector employs nearly 35 million people and after agriculture, is the second-highest employer in the country. Its importance is underlined by the fact that it accounts for around 4 per cent of Gross Domestic Product, 14 per cent of industrial production, 9 per cent of excise collections, 18 per cent of employment in the industrial sector and 16 per cent of the country s total exports earnings. With direct linkages to the rural economy and the agriculture sector, it has been estimated that one of every six households in the country depends on this sector, either directly or indirectly, for its livelihood (Census ). It is of interest to note that the geographical location of people engaged in handloom sector to know where the skills and potentials are largely concentrated, so that due focus and incentives could be channelled into building up the industry. As is well-known, the reservoir of handloom skills is concentrated in the North-Eastern states, which together account for lakh (60.5 %) handloom households. Assam alone accounts for lakh (44.6 %) handloom households, whereas Manipur and Tripura have 1.79 lakh (6.4 %) and 1.21 lakh (4.3 %), of such households, respectively. Other states with comparatively large handloom household concentrations are: West Bengal 4.07 lakh (14.6 %), Andhra Pradesh 1.77 lakh (6.4 %). Tamil Nadu 1.89 lakh (6.8 %), Uttar Pradesh 1.11 lakh (4.0 %) and Karnataka 0.38 lakh (0.3 %), Geographical location of people engaged in power loom sector indicated that Maharashtra had the highest number of registered power looms (11,06,474) employing 27,66,185 persons followed by Tamil Nadu (38,73,79) employing 96,84,45 persons and third state in respect number of registered power looms was Gujarat (32,33,39) employing 80,83,48 persons and then comes Madhya Pradesh with 10,48,23 registered power looms providing employment to 26,20,58 persons. Karnataka is the fifth state in respect of number of registered power looms (88,566), giving employment to 2,04,725 persons.

22 Karnataka is the eighth largest state in India with an area of 190 lakh hectares. It is situated between 11 5' and 18 45' North latitude and between 74 12' and 78 40' East longitude in the southern plateau. The state receives the average rainfall of about 1139 mm both from southwest and northeast monsoons. The temperature ranges from 14 C to 40 C. The important crops grown in the state are sorghum, paddy, ragi, maize and wheat among cereals, redgram, bengal gram, green gram among pulses, while, groundnut, sunflower and safflower are the major ones among oilseeds crops. The crops like cotton, chilli, sugarcane and tobacco are important ones among commercial crops. Mango, sapota and banana among fruit crops and coconut, areca nut and coffee are prominent among plantations crops Tumkur district Tumkur district is one of the 30 districts in Karnataka located in southern part of the state (Fig.1). It lies between and North latitude and and East longitudes. The district is surrounded by Ananthapur district of Andhra Pradesh in the north, Kolar and Bangalore districts in the east, Mandya district in the south and Chitradurga and Hassan in the west. The study was undertaken in Tumkur district which occupies the second place in respect of number of weavers in the state and also it falls in first place in number of power loom weavers in the state. (2010 report, Department of handloom and textile, Karnataka) Geographic and demographic features The salient geographic and demographic features of the study area and of the sample taluks are presented in Table 3.1. Tumkur district has an area of 10,597 Sq. km of which, Tiptur taluk has an area of 785 Sq. km. Gubbi and Turvekere taluks have an area of 1221 and 778 Sq. km, respectively Climate, rainfall and soil type Tumkur district falls in the eastern dry agro-climatic zone. The temperature starts rising from January and reach its peak in May. Temperature at peak reaches around 40 0 C. Thereafter it declines during the monsoon period. The mean maximum and minimum temperatures of district are C and C respectively. The humidity is lowest during the winter season and highest during the monsoon period. The winds are predominantly south westerly during the summer and north-easterly during the winter. The annual potential evapotranspiration is over 1800 mm with monthly rates less than 100 mm during December and January and over 250 mm during May. Rainfall distribution pattern in the district is irregular and erratic. The district has a normal rainfall of 585 mm, as against 838, 612, 617, 667 mm for Tiptur, Gubbi and Turvekere taluks respectively. Soils in Tumkur district comprised of red, gravelly, sandy, clay, loamy, black and sandy loamy or sandy clay type. Similar types of soils were found in all the three study taluks. The landscape consists mainly of undulating plains and interspersed hills with two parallel ranges running north to south Land utilization pattern Land utilization pattern of the district and of selected taluks for the year is presented in Table 3.2. The net area sown in the Tumkur district was 5, 58,953 hectares and that of Tiptur taluk was 50,722 hectares (9.07 per cent) and that in case of Gubbi and Turvekere taluks was 65,108 (11.64 per cent) and 50,844 (9.09 per cent) hectares, respectively. The total fallow land for the district accounted for 1,48,454 hectares, of that 3866 hectares in Tiptur taluk and 9,392 and 10,477 hectares in Gubbi and Turvekere taluks, respectively Cropping pattern The area devoted to different crops in the selected district and taluks are presented in the Table 3.3. The major crops in Tumkur district and in the selected taluks were paddy, ragi maize, sorghum among cereals; bengal gram, pegion pea among pulses. arecanut and coconut are important ones among commercial plantation crops with the net sown area of 60,096 hectares cereals, pulses, horticultural crops, oil seeds and plantation crops occupied 9.79 %, 8.06%, 17.47%,0.24% and 11.62% area respectively in Tiptur taluk; 10.58%, 9.22%, 23.86%, 1.23%, and 22.27% in Gubbi taluk, 9.10%, 8.0%, 7.86%, 0.22% and 0.77% in Turvekere taluks respectively.

23 Karnataka State TUMKUR DISTRICT Selected taluks Fig. 1. Map showing study area

24 Table 3.1: Salient features of Tumkur district and selected sample taluks for study ( ) Sl no Particulars Tumkur District Tiptur Taluk Percentage to District Gubbi Taluk Percentage to District Turvekere Taluk Percentage to District 1. Geographical area(sq km) Total population Rural Population Urban population Male Population Female population Population Density(Sq km) Normal Rainfall (mm) Actual Rainfall (mm) Livestock population Total livestock Source: Tumkur District at a Glance , District statistical office, Tumkur

25 Table 3.2: Land utilization pattern in Tumkur district and selected sample taluks ( ) (Area in ha) Sl no Particulars Tumkur District Tiptur taluk Percentage of District Gubbi Taluk Percentage of District Turvekere taluk Percentage of District 1. Area under forest Land not available for cultivation 1.Non-Agricultural uses Barren land Total Other uncultivated land 1.cultivable waste Permanent pastures Trees and groves Total Fallow land 1. Current fallow others fallow Total Net sown area Geographical area Source: Tumkur District at a Glance , District statistical office, Tumkur

26 Table 3.3: Cropping Pattern in Tumkur district and in selected sample taluks ( ) (Area in ha) Sl No Particulars Tumkur District Tiptur taluk % To District Gubbi taluk % To District Turvekere taluk % To District I Cereals 1 Paddy Ragi Sorghum Bajra Maize Other cereals Subtotal II Pulses 1 Bengal gram Pigeonpea Other Pulses Subtotal III Horticulture crops 1 Fruits Vegetables Spices Subtotal IV Other non-food crops 1 Arecanut Coconut Subtotal V Oil seeds 1 Groundnut Sunflower Other oil Seeds Subtotal Grand total Source: Tumkur District at a Glance , District statistical office, Tumkur

27 Table 3.4: Irrigated area by different sources in Tumkur district and in selected sample taluks ( ) (Area in ha) Sl. No. Particulars Tumkur District Tiptur Taluk % to District Gubbi Taluk % to District Turvekere Taluk % to District 1 Canals Tanks Wells Bore wells Total Source: Tumkur District at a Glance , District statistical office, Tumkur

28 3.1.7 Area irrigated by different sources The area irrigated by different sources in Tumkur district for the year of has been presented in Table 3.4. The tanks and bore wells formed the major sources of irrigation in Tumkur district. The total irrigated area of the district was 1,93,547 hectares and while, in Tiptur taluk it was 22,770 hectares, in Gubbi it was 31,057 hectares and in Turvekere it was 19,607 hectares. 3.2 Database and sampling procedure Selection of study area Tumkur district was purposively selected for investigation and it occupies second place in respect of number of weavers in the state. Further it fallows first place in the number of power loom weavers in the state.(department of handloom and textile Bangalore, 2013) and is depicted in Table 3.5. In the selected district out of ten taluks, three taluks having largest number of power loom weavers were selected. The first one is Tiptur taluk having total of 7420 weavers of which 2420 are handloom weavers, 5000 are power loom weavers. The second one is Gubbi taluk having total of 3020 weavers and of which 2000 are handloom weavers, 1000 are power loom weavers And the third taluk selected was Turvekere taluk having total of 1300 weavers and out which 300 are handloom weavers, 1000 are power loom weavers (Table 3.6). Taluk head quarter was concentrated for selection of weavers as more weaver families were concentrated in taluk head quarters. Finally weavers were selected randomly Selection of sample respondents Three taluks from among 10 taluks in Tumkur district were selected based on the largest number of handloom and power loom units. Further, in each taluk town head quarter were selected randomly on the basis large number handloom and power loom units by holding discussion with deputy chairman of textile and handloom development. After that in each selected town head quarter was classified into independent weaver and master weavers. In order to study the socio-economic status of handloom and power loom weavers, financial feasibility of investment in handloom and power loom units. Economics of silk weaving products and problem faced by handloom and power loom weavers twenty weavers were selected in each independent weavers and master weavers group. Among twenty independent weavers ten from independent handloom weavers and ten from power loom independent weavers. In case of twenty master weavers, ten from handloom master weavers and ten from power loom master weaver total forty weavers households selected in each taluks. Thus, in all total size of the sample respondents together formed 120 weavers. Tumkur District Tiptur taluk Gubbiu taluk Turuvekere taluk IW MW IW MW IW MW HL PL HL PL HL PL HL PL HL PL HL PL HL: Hand loom PL: Power loom, IW: Independent weavers, MW: Master weavers Sampling design

29 Table 3.5: District wise number of handloom and power looms in Karnataka during 2013 Sl no District Name No. of Hand looms % to the total No of power looms % to the total Total looms 1. Bagalkot , Tumkur , Belagavi , Gadag , Ballary , Chikballapur , Gulbarga , Koppal , Bengalore , Yadgir Davangere Hassan Haveri Kodagu (Madikere) Others ,810 Total ,486 Source: Department of Handloom and textile Bangalore

30 Table 3.6: Taluk wise number of Handloom and Power loom in Tumkur District in 2013 Sl no Taluks No of Handloom % to the total No of Power loom % to the total 1. Chikkanayakanahalli Gubbi Paavagada Shira Tiptur Turvekere Koratgere Madugiri Tumkuru kunigal Total Source: Department of Handloom and textile Tumkur

31 Nature and sources of data The primary data were collected and documented from sample weavers on various indicators of handlooms and power looms weaving from selected taluks of the district for the year The data pertained to socio-economic profile of weaver related to costs and returns, income generation, economic viability, financial feasibility of handlooms and power looms were collected using the well designed pre-tested questionnaire from the weavers through recall method as the weavers did not maintain the weaving records. However, they were able to provide necessary information which was cross checked for its accuracy. Secondary data required for the study was collected from various published sources. Secondary data for the study has been collected from the Department of Industry and Commerce, Bangalore; Karnataka Handloom Development Corporation, Bangalore; Department of Handloom and Textiles Bangalore; Department of Handloom and Textiles Tumkur; University Libraries, Internet, Books, Theses, Published research papers, other published sources and finally discussions with executives, chairpersons and directors and officials of department of handlooms and textiles, Bangalore to know the various aspects of handloom and power loom activities. Analytical tools and techniques The analytical tools employed in the present study were elaborated under the following headings Growth rate analysis In order to analyze the growth of handlooms and power loom units in Karnataka. Compound growth rates were computed using the method of least squares by fitting the Semi-Logarithmic function. The same is furnished below. Where, Y t = ab t e u Y t = dependent variable (Handlooms and power looms) a = intercept term b = (1+r) and r is the compound growth rate t = time trend u = error term In the Logarithmic form the function could be expressed as, Log Y =log a + t log b + u log e Log a and Log b were obtained using the ordinary least squares procedures, and the R 2 was computed for the goodness of fit. (Antilog of Log (b - 1))* 100 gave the per cent growth rate). Significance of the results was tested using t test Tabular Analysis The tabular presentation method was followed to study the socio-economic characteristics of sample weavers, problems faced with respect purchase of raw material, selection of design, mode of procurement of raw material, frequency of purchasing the raw material, employment generation of handloom and power loom, and selling of products, etc of the sample weavers with respect to handloom and power loom activity. The averages and percentages were worked out of above mention aspects Financial feasibility analysis The techniques used for the financial analysis of investment in handloom and power loom units were: 1. Pay Back Period (PBP) 2. Net Present Value / worth (NPV) 3. Benefit-Cost Ratio (B: C Ratio) 4. Internal Rate of Return (IRR)

32 Pay Back Period (PBP) Pay back period represents the length of time required for the stream of cash proceeds produced by the investment to be equal to the original cash outlay i.e. the time required for the project to pay for itself. In the present study, payback period was calculated by successively deducting the initial investment from the net returns until the initial investment is fully recovered. Initial investment Payback period = Average annual net cash inflow According to the payback criterion, the shorter the payback period, the more desirable is the project Net Present Value The present value represents the discounted value of the net cash inflows to the project. In the present study, a discount factor of per cent was used to discount the net cash inflows representing the opportunity cost of capital. It can be represented by NPV = Yn (1 + r) -n I i=1 n Where, Yn = refers to the net cash inflows in the n th year r = refers to the discount factor I = Initial investment The decision rule associated with the Net Present Value is, the project will be accepted if its value is positive and rejected if its value is negative (if the net present value is zero, it is a matter of difference) Benefit Cost Ratio The Benefit Cost Ratio (BCR) was worked out by using following formula Discounted cash inflows/benefits B: C ratio = Discounted cash outflows/cost Where, BCR n t = 1 = n t = 1 B C t t (1 + dr ) (1 + dr ) B t = Benefits in each year C t = Costs in each year r = Discount rate (12 per cent) n = Economic life of the Processing unit t t It measures the present value of returns per rupee of invested and it is a relative measure. The decision rule is that, accept the project, when BCR is greater than one, reject it when BCR is less than one and if BCR is zero, it is a matter of indifference.

33 Internal Rate of Return (IRR) The rate at which the net present value of project is equal to zero is Internal Rate of Return (IRR) to the project. The net cash inflows were discounted to determine the present worth following the interpolation technique. The method of interpolation followed is as under: Internal rate of return = Lower discount rate + Difference between two discount rates Present worth of the cash flow at the lower discount rate Absolute difference between present worth of cash flow at two discount rates Assumptions made in financial feasibility analysis 1. The economic life of handloom unit was considered as 12 years and that for power loom unit was considered as 15 years. 2. The apportioned cost of establishment and other fixed costs, expenditure on installation of machine, power, labour and all operating expenses in the production silk sarees in handloom and power loom were taken and this was the cash out flow. 3. The return or income obtained by the sale of final products constituted the cash inflows of the project. 4. Operational cost of handloom unit was assumed to have increased by 8 per cent. And in case of power loom it was assumed to be 5 per cent. 5. Maintenance and replacement cost in handloom was assumed at 5 per cent and in case of power loom it was assumed as 10 per cent. 6. A discount factor cost at 11 per cent was assumed for financial feasibility analysis of weaving Tabular analysis/ Budgeting technique Budgeting technique was followed for estimating the cost and returns in the production of handloom and power loom and tabular analysis was used to analyze the price spread and efficiency of different handloom and power loom Garrett Ranking Technique To know the constraints in production, marketing of Handloom and power loom weavers. Garrett s ranking technique was used. Basically it gives the change of orders of constraints and advantages into numerical scores. The major advantage of this technique as compared to simple frequency distribution is that the constraints and advantages are arranged based on their importance from the point of view of respondents. Hence the same number of respondents on two or more constraints may have been given different rank (Kumar et al. 1999). Garrett s formula for converting ranks into per cent was given by Where Rij= rank given for ith factor by jth individual Per cent position=100* (Rij-0.5)/Nj Nj= number of factors ranked by jth individual The per cent position of each rank then converted into scores referring to the Table given by Garret and Woodswordh (1969). For each factor, the scores of individual respondents were added together and divided by the total number of the respondents for whom scores were added. These mean scores for all the factors were arranged in descending order, ranks were given and based on the ranks most important factors were identified Garrett s ranking technique was adopted for studying problems faced by Weavers in production and marketing of handloom and power looms products.

34 3.3.6 Test of significance In order to test the equality of means pertaining to output from handloom and power loom units, the students t test was carried out to know the existence of difference between handloom and power loom weaver with respect to selected indicators by using the following formula. t= Where, S 2 p= and X 1 = Mean of first group X 2 = Mean of second group N 1 = No. of observations of first group N 2 = No. of observations of second group S 2 p = Pooled variance of sample S 2 1 = Variance of first group S 2 2 = Variance of second group The resulting t values were compared with table values at chosen (1% and 5%) level of significance. If computed values were greater than the table values, then, it is inferred that the difference between the two means is significant at that level. 3.4 Definition of terms and concepts used in the study 1) Looms: The process of weaving primarily constitutes interlacement of two sets of threads viz. warp and weft and the equipment which operates this interlacement is called loom. 2) Handloom: An equipment made out of wooden frame to weave cloth by human effort. 3) Power loom: An equipment made out of iron frame to weave cloth by the use of power/electricity. 4) Weaving: Sending the shuttle which contains the weft thread from one side of the loom to the other through threads of the warp, and in driving the weft threads closely together to form even cloth. 5) Warping: It is a process of drawing required number of warp yarn from the creel machine under controlled tension and place over the warp beam (Filature silk). 6) Charaka: Weft silk 7) Box loom : the name is given with reference to the present on slay slay which contains multiple shuttle boxes each shuttle carry separate/ different colored filling yarn by drop box mechanism can produce beautiful combination of checks design, 8) Jacquard type: the jacquard is a shedding device place on the top of the loom to produce large figured pattern with the help of punch cards. 9) Pit loom: the loom which provides pit with dimension of 3.50 *3.50* 3.5 (length * breadth * depth) 10) 3-D sarees: Embossed design are developed by using chain jacquard to create 3-D effect in the saree. 11) Gatti type: the border which contain zari.

35 12) Brocade type: originally a heavy rich silk fabric ornamented with raised figures formed by extra weft threads through jacquard mechanism. 13) Box design type: A saree woven on box loom with checks effect. 14) L T saree: Low twist yarn are used for preparing saree. 15) Household: A household is a group of persons who commonly live together and would take their meals from a common kitchen unless exigencies of work prevented any of them from doing so. But not on the road side, pavements or temple mandaps and the like. 16) Interest on working capital: The interest on working capital was charged at the rate at which banks were advancing short-term loans (11%) for non-agricultural activities. 17) Interest on fixed capital: The interest on fixed capital (assets such as buildings and looms) was charged at the rate of interest which banks were advancing term loans (11%). 18) Gross return: The total value of product is referred to as the gross return. 19) Net return: Return obtained by subtracting the total cost from gross return. 19) Household industry: A household industry is one in which an individual unit is run by the head of the household himself and or mainly by the members of the household. Further, the unit does not run as a registered factory. 20) Variable costs: The variable costs included were cost of raw material used, weavers wage, repair charges, power charges etc. Actual price paid towards these inputs was included along with the payments made in kind were accounted only once. 21) Fixed costs: investment cost of machines, rent of buildings, etc.

36 RESULTS In accordance with the objectives of this study, the data collected both from primary and secondary sources were analyzed and interpreted. The findings of the study are presented in this chapter under the following heads. 4.1 Growth rates in handloom and power loom units Growth rates of handloom and power loom units in Karnataka Growth rates of handloom and power loom units in Tumkur District 4.2 Demographic and Socio-economic Characteristic of sample weavers Demographic characteristics of sample weavers in the study area Socio-Economic profile of sample weavers in the study area Ownership pattern of assets by households in the study area 4.3 Raw material usage in silk saree production in handloom and power loom Input use pattern in handloom and power loom per saree production Mode and source of procurement raw material for weaving of silk saree Frequency of purchasing the raw material by weavers Source of obtaining design by weavers Change of design by weavers 4.4 Cost and return structures from saree production in handloom and power loom Cost of production of saree in handloom Return from silk saree production in handloom Cost of silk saree production in power loom Return from silk saree production in power loom 4.5 Marketing of finished handloom and power loom products Marketing of handloom and power loom finished products Annual income of sample weavers Product wise allocation of looms, production composition, and their value share in handloom and power loom Pattern of employment in weaving and government benefits 4.6 Financial feasibility of handloom and power loom weaving units Investment pattern in handloom and power loom weaving unit Financial feasibility of handloom and power loom weaving unit 4.7 Problem faced by handloom and power loom weaver Problems in the procurement of raw materials Constraints with selling practices Health problems faced by handloom and power loom weavers 4.1 Growth rates of handloom and power loom units Growth rates in number of handloom and power loom units in Karnataka as a whole and Tumkur in particular for the period of seventeen years to have been worked out and presented in the Tables 4.1 and Table 4.2 and Fig. 2.

37 Table 4.1: Compound growth rates of handloom and power looms in Karnataka ( to ) Particular CGR (%) Mean ( no of looms) Coefficient of variation (%) Handloom * Power loom 3.23 * Note: * indicates 1% level of significance Table 4.2: Compound growth rates of handloom and power looms in Tumkur District ( to ) Particulars CGR (%) Mean ( no of looms) Coefficient of variation (%) Handloom -1.50* Power loom 1.58** Note: * indicates 1% level of significance ** indicates 5% level of significance

38 Handloom Power loom Fig. 2. Number of Handloom and Power looms in Tumkur district Fig 2: Number of Handloom and Power looms in Tumkur district Number of loom

39 4.1.1 Growth rates of handloom and power loom units in Karnataka An overview of Table 4.1 showed that the number of handloom was found to be declining significantly at the rate of 2.12 per cent per annum and in case of power looms increased significantly by 3.22 per cent per annum. During the study period the computed for handlooms (10.88%) showed more stability than the power looms (16.29%) in Karnataka Growth rates in handloom and power loom units in Tumkur District An overview of the result presented in Table 4.2 showed that the number of handlooms was found to be declining significantly at1 per cent probability level with the rate of 1.50 per cent per annum and in case of power loom it was increased was found to be significantly at 5 per cent probability at the rate of 1.58 per cent per annum. The instability indices in respect of number of handlooms (0.08%) and that for during the study period. power looms (0.25%) was very low indicated greater stability during the study period. 4.2 Demographic and socio-economic characteristic of sample weavers To analyse demographic and the socio-economic characteristics of the sample weavers primary data relating to age, gender, level of education, caste, family composition, family type occupational pattern, ration card ownership, association with socio organization etc were collected and analyzed to get an insight into the socio-economic profile of the sample handloom and power loom weavers and are presented under the following sub-heads Demographic characteristics of sample weavers The results presented in Table 4.3 revealed that majority of the handloom weavers belonged to middle age (45%) between 31 to 50 years and per cent of the weavers belonged to old age followed by young age (20.00%) between 18 and 30 years. In case of power loom weavers, majority belonged to middle age (53.33%) group while per cent of the weavers belonged to old age group followed by young age (25.00%). About 90 per cent and 92 per cent households of weavers in case of handloom and power loom respectively were male headed influenced their dominance as head of the family and the remaining were headed by female members. This indicated almost similar trend in both weavers categories. It could be observed from the educational status of handloom weavers that 42 per cent of them were illiterate. On the other hand only about 22 per cent of power loom weavers were illiterates. Considering the educational achievement of handloom weavers it could be ascertained that 40 per cent, 13 per cent and 5 per cent of them respectively attained primarily attained secondary and collegiate level education and none of them pursued higher education. Contrary to this among the power loom weavers, the attainment of educational level was relatively better when compared to handloom weavers. Among the power loom weavers, 45 per cent, per cent and 10 per cent pursued primary, secondary and collegiate education. While, at least 5 per cent of power loom weavers possessed higher education. On the caste composition, majority of handloom and power loom weavers belonged to Devanga caste (70% and 55% respectively) which traditionally had known to pursue weaving profession. Incidentally, 20 per cent of the weavers in both the categories of weaving belonged to scheduled caste and scheduled tribes. While, on the other hand 10 per cent of the weavers were Muslims in the handloom and as large as 25 per cent loom sector of them were there in the power. Average family size and its composition in both handloom and power loom weavers showed that in both the cases male member marginally outnumbered (44.61% and 42.41%, respectively) when compared to female members (34.18% and 37.52%, respectively) proportion of children in both the categories of families remained on par (21% to 20%). The average size of the family across weavers remained between 5 to 6 members per family. From the Table 4.3 it was clear that majority of handloom and power loom weaves belonged to nuclear family (70% and 91.67%, respectively). However proportion of nuclear families in power loom was more than in handloom weavers About thirty per cent handloom weavers adapted joint family system and in case of power loom weaves, nearly eight per cent belonged to joint family. Average weaving experience of handloom weavers was marginally (13.01years) longer than that of power loom weavers (10.23 years). This showed that handloom weavers have more experience than power loom weavers.

40 Table 4.3: Demographic characteristics of sample weavers in the study area Sl no Variable Category Handloom (n=60) Power loom (n=60) 1. Age Young age (18-30 yrs) Middle age (31-50 yrs) Old age (above 50 yrs) Frequency % Frequency % Gender Male Female Education Illiterate Primary School Secondary College Higher education Caste Devanga Average family composition (number) SC ST Muslim Male Female Children Average family size Average number of weavers per family Family type Joint family Average weaving experience (year) Nuclear family

41 Table 4.4: Socio-economic characteristics of handloom and power loom sample respondent in study area Sl no Variable Category Handloom Power loom Frequency % Frequenc % y 1. Main Occupation Weaving Agriculture Business Subsidiary Govt/private occupation service Petty Business** Other * None Ration card owned BPL APL No cards ICICC/Yashawini/ health card owned Yes No Choose of profession Hereditary First generation Job opportunity Interest in weaving 6. Association with Village organization panchayath NGO SHG None association Land holding Up to 2.5 acre acre acre Land less Average land size(acre) Source of credit to weavers family Money lender (95432) Master weaver (24428) Friends/ relatives (40658) (68000) (30478) (8070) Bank (30000) (50000) Note ** indicate Hotel/pan shop/retail shop,*indicate coconut merchant and weaving related business, Figures in parenthesis indicates average credit

42 Plate 3: Socio-economic characteristics of handloom and power loom sample respondent in study area

43 4.2.2 Socio-economic profile of sample weavers The results on the occupational pattern presented in Table 4.4 and Fig.3 showed that weaving was the main occupation for majority of per cent of handloom weavers, whereas 70 per cent of the power loom weavers depended on weaving as the main source of income. The remaining per cent in handloom and only 8.33 per cent of the weavers in power loom sector depended on agriculture as main source of employment and income. Interestingly, per cent of power loom weavers were involved in business activities along with weaving as the main occupation. Whereas, only 5 per cent of handloom weavers were involved in business activities as major source of income. Thus, results revealed relatively greater diversification in the occupational pattern among the weavers of both the categories in the study district. Hence, it could be inferred that weaving alone was not adequately supporting the families for their livelihood. Interestingly, Government or private service, petty business activities and other occupations as coconut merchant and weaving related business constituted the secondary occupations and sources of income to the weaving households among both the categories of weavers. Among the handloom weavers per cent of them had petty business as secondary source of income where as only per cent in case of power loom weavers. Similarly, per cent of handloom weavers had govt/private service as secondary occupation while, among the power loom weavers per cent of them were engaged in government/private service. In general majority of the handloom weavers (48%) and power loom weavers (38%) were depended on secondary source of income for livelihood. On the ownership of ration card by handloom and power loom weavers, (Table 4.4) it could be ascertained that majority of handloom (46.66 %) weavers were below poverty line as against per cent in case of power loom weavers owned BPL cards. As large as per cent of power loom weavers had APL cards while in case of handloom weavers, per cent pocessed APL cards. Thus, in all a large proportion of them in both the categories of weavers together pocessed had BPL and APL cards. Only 15 per cent handloom and 25 per cent of power loom weavers did not own either BPL or APL cards. Further. About per cent of power loom weavers pocessed ICICC or Yashaswini health cards as against only per cent in case of handloom weavers. It could be inferred that handloom weavers had poor awareness about health card compared to power loom weavers. The silk weaving has been acquired either through hereditary or for other reasons (Table 4.4). The results depicted that majority of the handloom weavers selected weaving as a profession because of hereditary (36.66%) reasons followed by first generation (35.00%) weavers and very few ( about 12 %) of the weavers selected handloom weaving on their own for reasons of job opportunity in weaving sector. In case of power loom weavers, silk weaving was selected as a profession because of hereditary reasons by per cent weavers followed by prospects of job opportunity (35.00%) in weaving as the reason and another 20 per cent of the them selected power loom weaving and were of first generation weavers due to higher job opportunity (20.00%) and based on their interest another 6.67 per cent chose weaving as profession. Association of silk weavers with social organizations showed that in case of handloom weavers only 3 per cent were members of village panchayat, per cent of them were members in SHGs followed by 5.00 per cent as members of NGOs. As against this, in case of power loom weavers, 8.33 per cent were associated with village panchayat as members and as high as about 27 per cent were members in SHGs followed by very few weavers (about 5%) with NGO as members. Interestingly, in all it could be seen that association of power loom weavers in the local organizations was more when compared to handloom weavers. The post classification of the sample weavers into different farm size groups in both categories (Table 4.4) indicated that the average farm size owned was very low among both the handloom and power loom weavers (0.13 and 0.10 acre, respectively) and hence agriculture is considered as less prominent of profession among both the weaver classes as indicated by a large majority of handloom (87 %) and power loom weavers (90%) did not own any land. The non-institutional sources of credit dominated even today as major source of credit to weavers in the study area than banking institutions. Across weavers categories it was indicated that money lenders, friends and relatives and master weavers were the ones on whom weavers depended for credit requirements. Among the handloom weavers, money lenders, friends and relatives accounted to cater about 67 per cent and 63 per cent as financers. The proportion of power loom

44 weavers who depended on private sources for credit were found to be less in number compared to handloom weavers. Among them, dependence of power loom weavers on money lender was to the extent of about 42 per cent, friends and relatives accounted for 37 per cent while, the dependence of power loom weavers on master weavers for credit was relatively more at 35 per cent against 25 per cent by handloom weavers. However, the weavers dependence for credit needs on banking institutions was almost on par across handloom (42%) and power loom (47%) weavers Ownership pattern of assets by households in the study area The results on the ownership pattern of durable household assets such as radio, television, refrigerators, washing machine, bicycle, two and four wheelers and all farm assets together by sample weavers are presented in Table 4.5. The power loom weavers were found to be better equipped in terms of pattern of household assets ownership than their counterpart handloom weavers. In respect of each household not only more number of power loom weavers owned these assets and also the average number and in terms of owned asset value was also relatively higher among power loom weavers when compared to handloom weavers. There was ownership of two wheelers found among weaver class where, about 57 and 65 per cent with the value of Rs.38500/vehicle and Rs.48000/vehicle for handloom and power loom weavers respectively owned two wheelers. Few house holds have ownership of four wheelers with the value of Rs /vehicle and Rs /vehicle in 5 and 15 per cent of handloom and power loom weavers households respectively Raw material usage in silk saree production in handloom and power looms In the production of any commodity the use of different raw materials are critical. The raw material commonly used in the production of sarees is filature silk, charaka silk and zari. However, quality parameters like the yarn type, yarn count, turns per inch, and amount of silk that are to be adhered for production of different of types sarees such as Gatti, 3-D, Box design and brocade type of sarees and these parameter of quality remain the same irrespective of type of sarees produced in handloom and power loom units Input use pattern in handloom and power loom per saree production Inputs used per silk saree production of different types in handloom were presented in Table 4.6. It can be observed from the result that, the average human labour utilization per unit was 1.50 man days in case of Gatti type saree, it was 2.5 man days in 3-D type saree, 3.5 man days in Boxdesign type saree and 4.00 man days in brocade type saree production. The variation in labour days used depended on the type and design of the saree produced by weavers. The quantity of filature silk and charak silk used remained the same across saree types and it was gm and 250 gm, respectively. The quantity of zari used per saree production was observed to be slightly varying for different types of sarees produced. The zari is being used in sarees enrich the appearance of the product and is considered to be one of the components that attract the consumers interest in the market. In case of Gatti type, the quantity of Zari used was of 1.05 marc (Zari measured in marc), in 3- D saree it was 1.10 marc, in Box-design it was 1.12 marc and in Brocade type the quantity used was 2.00 marc. Inputs used per silk saree production such as Resham saree, LT saree, and Cotton silk saree in power loom were presented in Table 4.7. It could be inferred from the results that the average human labour utilization was found to highest at 0.40 man days/product in case of Resham and Cotton silk sarees. While in case of LT sarees, the labour used per saree was 0.30 man days. This variation in man days used largely because of design of the saree produced. The quantity of warp used remained on par in all the three types of sarees produced under power loom and it was 16 gm/saree. The quantity of zari used per saree production was also observed to be the same for different types of sarees produced in the power loom. The zari is being used in sarees enrich the appearance of the product and is considered to be one of the important components that attract the consumers interest for product in the market. The weft silk as a raw material, its quantity required for Resham silk saree was highest at gm followed by Cotton Silk saree required gm and in case of LT saree, quantity of weft silk was gm per saree. The other constituent of the cost includes cost on electricity/power and the power requirement remained the same (1 HP) across types of sarees.

45 Table 4.5: Ownership pattern of assets by households in the study area Handloom Power loom Sl no Particular No. of weavers who owned Percentage Average no. Average value per unit (Rs.) No. of weavers who owned Percentage Average no. Average value per unit (Rs.) I. Total no. of respondent II. Household assets Radio T.V Refrigerator Washing machine Bicycle Two wheeler Four wheeler III. Farm asset

46 Table 4.6: Input use pattern in silk saree production by handlooms (Per saree) Sl no Particular Unit Gatti Saree 3-D Saree Box design Saree Brocade Saree 1. Filature silk gm Charaka silk gm Zari Marc Human labour Man day

47 4.3.2 Mode and source of procurement of raw materials for weaving of silk saree Tables 4.8 and 4.9 and Fig. 4 presents the results on the mode and sources of procurement of raw materials in weaving silk sarees by handloom and power loom units. Among the handloom weavers, the main modes of procurement of raw materials by majority were found to be on cash payment (40 %) and in exchange of finished (40 %) products. While, the remaining 20 per cent handloom weavers procured raw materials on partial payment from the raw material suppliers. Contrary to this, procurement mode of raw materials by power loom weavers on cash payment (10%) was less predominant whereas, procurement in exchange of finished (50 %) products and on partial payment (40%) was more predominantly adopted by weavers. The source of procurement of raw material among the handloom and power loom remaining same. Majority of handloom weavers (about 48 %) procured from local dealers followed by 25 per cent each procured raw material from producers and master weavers. In case of power loom weavers, a similar tendency was witnessed on raw material procurement. Major percentage of (40%) weavers purchased from local dealers followed by master weavers (35%) and producers (25%) of raw silk engaged mainly in silk reeler s activity. Factors like the socio-economic status of the weavers and their proximity to the suppliers of raw materials might have influenced the mode of payment while purchase of raw materials by handloom and power loom weavers. However, Weavers Cooperative Societies did not play any role as suppliers of raw materials as only 1.60 per cent handloom weavers procured them from such weavers societies as against none of the power loom weavers had linkage with weavers society for procurement of raw materials Frequency of purchasing of raw materials by weavers The frequency of raw material purchase has been presented in Table Majority of handloom weavers purchased raw material fortnightly (95%) followed by monthly (only 5%) where as 100 per cent power loom weavers purchased raw materials fortnightly. From this, it could be inferred that weaving being regular activity taken up continuously round the year the procurement of raw materials was rather made fortnightly than procuring it in advance Sources of obtaining design by weavers Table 4.11 revealed that majority of handloom weavers obtained their design from professional designers (43.33%), about 27 per cent create their own designs based on their skills developed over the years in the profession and 25 per cent got designs from master weavers. However, in the power loom sector 40 per cent of the weavers procured obtained designs from master weavers followed by 30 per cent of them from professional designers and was out of their own experience in the field Change of designs by weavers Table 4.12 revealed that change of designs by the weavers. It is observed from the table that, irrespective of handloom and power loom sectors majority of the weavers change the design (41.66 % and %) in the producer to based on the fashion trend and market demand. Where on weaving prefer to change the design once in six months. 4.4 Cost and returns structures from saree production in handloom and power loom Cost of production of saree in handloom The quantities of raw materials utilized with respect to production of different types of sarees by handloom weavers are presented in Table The results revealed that the quantities of raw materials used were more in case of handloom production across product type in respect of all major inputs like filature silk, charaka silk, zari, and labour units when compared to power loom. The total cost of production of Gatti type saree was Rs , of this cost, per cent was variable cost and the remaining only 1.60 per cent was fixed cost. The distribution pattern of variable cost on various raw materials used in Gatti type saree revealed that charaka silk shared the highest per cent of the total variable cost followed by cost on filature silk that accounted per cent and labour cost at per cent. The share of other costs (cost of transportation, gum materials and greece) and interest on working capital accounted was 0.46 per cent and 9.75 per cent, respectively.

48 Table 4.7: Input use pattern in silk saree production by power looms (Per saree) Sl no Particular Unit Resham Saree LT Saree Cotton Silk Saree 1. Warp Gm Weft Gm Zari Marc Electricity HP Human labour Man day Table 4.8: Mode of procurement of raw materials for weaving of silk Saree Category Handloom (n=60) Power loom (n=60) Frequency % Frequency % On cash payment In exchange of finished goods On partial payment Table 4.9: Sources of Procurement of raw material for silk saree weaving Category Handloom Power loom Frequency % Frequency % roducers Local dealers Master weavers Co-operative Societies

49 50 45 Handloom Power loom Percentages Producers Local dealers Master weavers Co-operative Societies Fig. 4. Procurement of raw materials for silk saree weaving Fig 4: Procurement of raw materials for silk saree weaving

50 Table 4.10: Frequency of purchasing of raw materials by the weavers Particular Handloom Power loom Frequency % Frequency % Fortnightly Monthly Table 4.11: Sources of obtaining design by weavers Sl no Particular Handloom Power loom Frequency Per cent Frequency Per cent 1. Self Customers Master weaver Local traders Table 4.12: Change of designs by weavers Sl no Frequency Handloom Power loom Frequency Per cent Frequency Per cent 1. Yearly Based on demand Six month once More than year

51 Table 4.13: Cost of production of silk Sarees Handloom (Rs/saree) Sl no Particular Gatti Saree 3-D Saree Box design Saree Brocade Saree I. Variable cost Cost % Cost % Cost % Cost % II Filature warp Charaka weft zari Human labour Others * Interest on working capital at 11 % Subtotal I Fixed cost Rental value of building Depreciation Interest on fixed capital at 11% Subtotal II Total cost per saree (I + II) Other*: Material includes, transportation charge, other material like gum, Greece etc

52 The share of the fixed cost in total cost of Gatti type saree production was Rs that accounted only for 1.60 per cent of total cost of production. In case of 3 D type saree production total cost of production per unit was Rs and of which per cent was variable cost and the remaining 1.54 per cent was fixed cost. The distribution pattern of variable cost on different raw materials used in 3-D type product revealed that cost on charaka silk shared the highest per cent (34.55%) followed by cost on filature silk that accounted to per cent of the total cost. In case of Box design type saree, the total cost of production per saree was Rs and of this total cost, per cent composed of variable cost and the remaining of only 1.55 per cent was fixed cost. The distribution pattern of variable cost on different raw materials used in Box design type saree revealed that cost on charaka silk had the highest share (33.92%) in the total cost followed by human(22.98%) labour cost. In case of Brocade type saree production, the total cost of production was put at Rs Of this total cost, per cent was variable cost and the remaining only 1.56 per cent was fixed cost. The distribution pattern of variable cost on the raw materials used in Brocade type saree revealed that charaka silk shared the highest cost (30.44%) of the total variable cost followed by labour cost at per cent Return from silk saree production in handloom The average selling price and per unit net returns of different type of saree produced in handloom were presented in Table The average selling price and cost of production of Gatti type saree was Rs and Rs , respectively. The net returns obtained by weavers were Rs per saree with the benefit cost (B:C) ratio of In case of 3-D type saree, the average selling price and production cost per unit was Rs and Rs , respectively. The net returns realised by weaver per saree was Rs with the B: C ratio of In case of Box design type saree, the average selling price and the cost of production were Rs and Rs , respectively. The net return realised was Rs per saree and the B:C ratio obtained was Finally, in case of Brocade type saree, the average selling price and cost of production was estimated to be at Rs and Rs , respectively. The net return was realised was Rs per saree and return per rupee cost was at The analysis of the cost and returns structures of silk saree production across brands/types in handloom production indicated that the highest net returns was witnessed in case of Brocade type silk saree (Rs with B:C ratio of 1.11) followed by Boxdesign type (Rs with B:C ratio of 1.10) silk saree, 3-D type silk saree (Rs with B:C ratio of 1.07) and Gatti type silk saree (Rs with B:C ratio of 1.06) Cost of silk saree production in power loom The quantities of raw materials utilized with respect to production of different types of sarees by power loom weavers are presented in Table The results revealed that the quantities of raw materials required for production of all the sources woven by power loom viz. weft, warp, zari, human labour etc were found to be less as compared to handloom. The total cost of production of Resham type saree was Rs , of this cost, per cent was variable cost and the remaining only 0.98 per cent was fixed cost. The distribution pattern of variable cost on various raw materials used in Resham type saree revealed that human labour shared the highest per cent (41.63) of the total cost followed by cost on weft that accounted per cent and warp at 2.65 per cent. The share of other costs that include cost of transportation, gum materials and Greece and interest on working capital accounted was 1.89 per cent and 5.74 per cent, respectively. The electricity cost was 0.11 per cent. The share of the fixed cost in total cost of Resham type saree production was Rs that accounted only for 0.98 per cent of total cost of production. Remaining only 1.56 per cent was fixed cost. The total cost of production of LT type saree was Rs , of this cost, per cent was variable cost and the remaining only 1.60 per cent was fixed cost. The distribution pattern of different cost on various raw materials used in LT type saree revealed that human labour shared the highest per cent of the total cost followed by cost on weft that accounted per cent and warp at 2.72 per cent. The share of other costs (cost of transportation, gum materials and Greece) and interest on working capital accounted was 1.60 per cent and 3.48 per cent, respectively. The electricity charges were 0.18 per cent. The share of the fixed cost in total cost of LT type saree production was Rs that accounted only for 1.60 per cent of total cost of production. The total cost of production of Cotton silk saree was Rs , of this per cent was variable cost and the remaining only 0.96 per cent was fixed cost. The distribution pattern of variable cost on various raw materials used in Cotton silk saree revealed that human labour shared the highest per cent (36.89) of the total cost. Next, the cost on charaka silk that accounted per cent and warp at 1.60 per cent. The share of other costs (cost of transportation, gum materials and Greece) and interest on working capital accounted was 1.07 per cent and 6.03 per cent, respectively. The electricity charge cost was 0.18 per cent. The share of the fixed cost in total cost of Cotton silk saree production was Rs that accounted only for 0.96 per cent of total cost of production. Remaining only 0.96 per cent was fixed cost.

53 Table 4.14: Returns from handloom silk Saree produced Particular Handloom (Rs/Saree) Gatti saree 3-D saree Box design Brocade Selling price (Rs) Cost of production (Rs) Net return (Rs) B:C ratio Table 4.15: Cost of production of silk saree Sl no I. Variable cost Particular Power loom (Rs/saree) Resham Saree LT Saree Cotton Silk Saree Cost % Cost % Cost % Warp Weft zari Human labour Power charge Other materials Interest on working capital at 11% Subtotal I II Fixed cost 1. Rent value of Building Depreciation Power connection Interest on fixed capital at 11% Subtotal II Total cost (I + II) Other*: material include, transportation charge, other material like gum, Greece etc

54 4.4.4 Return from silk saree production in power loom The average selling price and per unit net returns of different type of sarees produced in power loom were presented in the Table The average selling price and cost of production of Resham type saree was Rs and Rs , respectively. The net returns obtained by weaver were Rs per saree with the benefit cost (B:C) ratio of In case of LT type saree, the average selling price and production cost per unit was Rs and Rs , respectively. The net returns realised by weaver per saree was Rs with the B: C ratio of However Cotton silk saree, the average selling price and per saree production cost were Rs and Rs , respectively. The net return was Rs per saree and the B:C ratio obtained was Moreover Resham type saree, the average selling price and cost of production was estimated to be at Rs and Rs respectively. The net returns of saree was Rs per saree and returns per rupee cost was 1.30 The analysis of the cost and returns structures of silk saree production among brands/types in power loom production indicated that the highest net returns was observed in case of Resham type silk saree (Rs with B:C ratio of 1.30) followed by cotton silk saree type (Rs with B:C ratio of 1.28) silk saree, and LT type saree (Rs with B:C ratio of 1.24) 4.5 Marketing of finished handloom and power loom products Marketing of handloom and power loom finished products It is clear from the Table 4.17 that majority (55%) of the handloom weavers sold their products in the local market. About per cent of them sold their products to the master weavers. The traders and melas/exhibitions were the third important selling points of products which accounted only 10 per cent each. Marketing of products in case of power loom weavers showed that local markets (50%) and master weavers (35%) were the important markets for finished products followed by export of products by 15 per cent wavers. Melas and exhibitions were not considered by power loom weavers as markets for their products. Thus, it could be inferred that sale through local traders and master weavers was most prominent and followed by both handloom and power loom weavers Annual income of sample weavers The income distribution pattern of weaver households has been presented in Table 4.18, Fig. 5 and Fig. 6. The results showed that the average total annual income of power loom weavers (Rs.15,20,610) from different sources was more than the handloom (Rs.11,63,604.51) weavers in the study area. The analysis of source wise income among weavers categories indicated that power loom weavers realised the highest annual income (Rs 15,20,610) from weaving activity and was significant at 5 % level and it accounted for per cent of the total income when compared handloom weavers (Rs.11,63,604.51) and that accounted to the tune of per cent of the total income from various sources. Among the handloom weavers, the other important sources of income obtained to households were from petty business (Rs.10,520) activity with a share of 0.88 per cent (significant at 5% level ) followed by Government/private service (significant at 5% level) contributing Rs.8046/annum (0.68%), business activity contributed 0.42 per cent income at (significant at 5% level ) Rs.5043/annum, the contribution of agriculture to the total income was insignificant and accounted for only 0.13 per cent (Rs.1500/annum) of the total income of the family and other source which included the income from weaving related business and from coconut selling activities accounted for 0.04 per cent (Rs.500/annum) of the total income. In case of Power loom weavers, the other important sources of income to the households were from Govt/private service (Rs.15046) activity with a share of 0.97 per cent followed by business contributing Rs annum (0.72%), petty business activity contributed 0.32 per cent income at Rs.5040/annum, the contribution of agriculture to the income was insignificant and accounted for only 0.06 per cent (Rs.1000/annum) of the total income of the family and other source which included the income from weaving related business and from coconut selling activities accounted for 0.04 per cent (Rs.550/annum) of the total income The pattern of income distribution among handloom and power loom weavers were analyzed presented in Table 4.19 It was observed from the Table majority of handloom weavers households belongs to group of Rs (43.33%) followed by Rs (38.33%) and in case of power loom weavers households majority of weavers households belongs to the group of Rs. > (98.33% ) the table revealed that economic status of power loom weavers was better compared to handloom weavers households.

55 Table 4.16: Returns from power loom silk saree produced Particular Power loom Resham Saree LT Saree Cotton silk Saree Selling price (Rs) Cost of production (Rs) Net return (Rs) B:C ratio Table 4.17: Marketing of finished products by handloom and power loom weavers Market/functionary Handloom (n=60) Power loom (n=60) Frequency % Frequency % Local Market Master weavers Melas/exhibition Traders Export Table 4.18: Average Annual income of sample weavers from different sources Sl no Sources Handloom (Rs/family) Power loom (Rs/family) T-value Rupees Percentage Rupees Percentage 1. Weaving * 2. Agriculture * 3. Business * 4. Govt/Private service * 5. Petty business * 6. Others** * Average total income per family(rs) 11,89, ,53, * Note : **indicate coconut merchant and weaving related business, * Significant at 5 per cent

56