Looms fall silent in Sircilla as weavers quit amid mounting debt

As the nation observed National Handloom Day, thousands of Telangana’s weavers had little to celebrate. The State’s once-thriving handloom industry is now reeling from broken promises, debt, and dwindling support. The shelving of key institutions and stalled cooperative society elections have further deepened the crisis.

Hyderabad: A thriving livelihood source for weavers till a couple of years ago, Telangana’s handloom sector is now staring at a bleak future. As the country marked National Handloom Day on Thursday, thousands of weavers and ancillary workers in the State found little cause for celebration.

A combination of mounting debt, vanishing employment opportunities and limited government support is forcing many weavers to exit the industry in search of alternative livelihoods.

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After scrapping the Bathukamma saree orders last year, the Congress government had assured that two sarees would be distributed annually to each Self-Help Group (SHG) woman in the State. Orders for 1.20 crore sarees were to be placed with weavers in Rajanna-Sircilla.

However, the government is now planning to distribute only one saree every six months, placing fewer orders than promised. Due to this shortfall, nearly 15,000 of the 60,000 workers in Sircilla have left the sector and are now selling vegetables or working as hotel suppliers, said CITU State Secretary Kurapati Ramesh.

With falling production levels, several powerloom units have shut down. To compound their woes, these units have been stripped of the power subsidy and are not recognised as small-scale industries. Unit owners are being asked to pay Rs. 8 per unit for electricity, and meters are reportedly being seized when dues are unpaid, Ramesh said.

The Congress government had also announced a loan waiver of up to Rs. 1 lakh for weavers, and an administrative sanction of Rs. 33 crore was approved last month. But implementation has been bogged down by multiple conditions.

The scheme covers loans (including principal and interest) taken between April 1, 2017, and March 31, 2024, and is expected to benefit around 5,000 weavers. However, government-appointed district committees are demanding that weavers repay the excess amount beyond Rs. 1 lakh in order to be eligible. For instance, a weaver with a loan of Rs. 1.50 lakh must first pay Rs. 50,000 before availing the Rs. 1 lakh waiver.

“To clear this excess, weavers are being forced to borrow again. Why can’t the government waive the assured Rs. 1 lakh without imposing additional burdens?” Ramesh questioned.

Another scheme, the thrift fund benefit, also places unrealistic conditions. Workers are required to weave at least 80 sarees a year to qualify for subsidised yarn. But for many, this benchmark is unachievable due to physical strain and high costs involved in procuring dyes, fabrics and other materials.

In the past, the BRS government had established Handloom and Powerloom Corporations aimed at improving the welfare of weavers. These institutions have since been shelved by the present Congress government, Ramesh said.

Adding to the sector’s woes, elections to cooperative societies have been pending for 15 months. These elections enable weavers to elect a District Director, who in turn helps select the TSCO Chairman, posts typically held by members of the weaving community, who understand the challenges and can advocate for sector-specific solutions.