Date:26/05/2005 URL: http://www.thehindubusinessline.com/2005/05/26/stories/2005052601771700.htm

Back AP panel to submit report on handloom sector next month

Our Bureau

Hyderabad , May 25

A HIGH-powered committee constituted to study the handloom sector in the State is slated to submit its report by early June.

The report would cover measures required to shore up the sector, infusion of funds and compensation package for weavers' families.

Addressing a press conference here on Wednesday, the State Finance Minister, Mr. K. Rosaiah, said that the Government was keen to provide necessary support to the sector, as handlooms constitute the second most important sector after agriculture.

The committee headed by himself and comprising Members of Legislative Assembly is in the process of completing the study on the State handloom sector, which is witness to adverse times lately due to dwindling demand for handloom produce, consequently leading to scores of families committing suicide unable to bear the financial crisis.

The report would be submitted to the Chief Minister, Dr.Y.S. Rajashekhara Reddy, for follow up action, Mr Rosaiah said.

He reiterated the Government's commitment to the sector, which is reflected by higher budgetary allocation this fiscal at Rs 76.50 crore, up from Rs 50.69 crore last year.

The Minister said that a high-tech textile park planned for Kothur in Mahaboobnagar has received Central Government approval.

Highlighting the handloom sector performance including that of APCO, Mr Rosaiah said that negotiations were on to convince bulk users such as railways, airlines and airports to use handloom products as this would not only help the sector but also provide ethnic touch.

However, since handloom products cannot match the cost competitiveness of machine produced mass merchandise, "we are keen that they use handloom products and expect to convince them to help the sector," he said.

The Minister said new weavers' self-help groups will be organised and financial support arranged through banks particularly for women folk.

As a part of Central Government scheme, a one-time rebate of 10 per cent was passed on to various weavers' cooperatives.

Further, the Government has sanctioned Rs 10 crore to APCO towards revolving fund for procurement of fabrics from weavers' cooperative societies.

This year, APCO achieved a turnover of Rs. 100 crore against Rs 79 crore last year and the procurement has increased to Rs 42.46 crore from Rs. 33.54 crore.