Page 1
Chapter_4
HISTORICAL BACKGROUND OF THE
TEXTILE INDUSTRY
===================================================
INTRODUCTION
The textile industry is as old as the human civilization. Cloth is one of the
basic needs of human being. In ancient ages, the cloth was made only from cotton.
At present, cloth is made from silk, rayon, nylon, filament yarn, man-made fiber,
viscose, staple and polyester etc. Besides this, cloth is prepared by hand process.
But in this modern era highly modernized technique and computerised looms are
used for the production of cloth. The entire process is being done by high
technique machines. Earlier, textile industry comprised of only cloth weaving, but
today it includes ginning, reeling, spinning, weaving, processing, sizing, printing
and garment manufacturing also. The textile industry plays a vital and significant
role in the economy of our country.
In the words of N.M. Mugadur, the director of enforcement, "Textile is one
of basic essential commodities and hence it is listed under essential Commodities
Act 1955. It has its own importance in the daily life of common masses as next to
food. It is classified as industrial consumable and general public consumable
commodity."
Page 2
ROLE OF TEXTILE INDUSTRY IN INDIA:
In India, the Textile Industry has got an important place. It has a great
contribution to the economy of the country. It also contributes to the industrial
output, employment generation and foreign exchange earnings. The value addition
in the manufacturing sector is 20% and the contribution to GDP is from 4 to 5%
and export earning by the Textile industry in India is more than 30% of the total
export. The textile industry spread from rural areas to the big cities like
Ahmedabad, Mumbai, Calcutta, Chennai etc. In rural areas handlooms are busy in
producing of cloth. In small cities, thousands of powerlooms are working in the
textile field. Lakhs of poor people are getting their livelihood by manufacturing
cloth. They also provide the local requirement of cloth on a lower rate of price. In
this respect, the Textile Industry is ranked next to agriculture in India.
GROWTH AND DEVELOPMENT :
The Textile Industry in India is categorized into the following three sectors,
(a) Mill Sector - Organized Sector
(b) Handloom Sector - Organized Sector
(c) Powerloom Sector - Un-organized Sector
(a) Mill Sector :
The mill sector is more organized than handloom and powerloom sector. It is
because of the fact that this sector is dominated by the capitalists. The first Textile
mill in the country was established in Mumbai in 1818 with 1,000 powerlooms.1
Growth & Development of Mill Industry:
Page 3
There was a rapid growth in 1900. There were 190 mills with 50 lakhs
spindles and 40,000 looms during the first world war it went up to to 65.97 lakhs
spindles and 94,000 looms. In the beginning of Second World War (1939), the
spindles were more than 10 millions and the number of looms went up to more than 2
lakhs. The growth and expansion got slow during the War. After the war, the mill
industry geared up on full speed again. 2
The following table gives a detailed and comprehensive study of growth of
the mill industry. 3
Table No. 4.1
Years as on
March End No. of Mills
Spindles
installed
(millions)
Looms
installed
(thousands)
Spinning Composite Total
1948
1951
1961
1971
1981
1982
1983
1984
1985
1986
1987
1988
88
107
196
379
415
442
561
639
674
702
744
752
105
276
285
291
278
281
280
281
281
282
283
283
193
383
481
670
693
723
841
920
955
954
1027
1035
10.07
11.25
13.83
17.98
21.23
21.93
22.91
24.28
25.57
26.02
26.12
26.25
193
196
199
206
208
210
210
210
210
280
280
199
Page 4
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
769
770
777
846
874
901
1148
1294
1438
1504
282
281
285
271
268
260
268
275
281
278
1051
1051
1062
1117
1142
1175
1916
1569
1719
1782
26.48
26.59
26.67
27.82
28.09
28.60
30.70
31.75
33.15
33.88
184
181
178
169
158
150
139
132
124
-
Source : Compendium of Textile statistics 1999 (Page No. 3,3.)
YARN AND CLOTH PRODUCTION :
During the war, the cloth production was meant for defence services. The
handloom sector provides the need of civilian requirement. Therefore, the mill
sector was allowed to expand the spinning wings to fulfill the demand of yarn.
The following table shows the production of yarn and cloth by mill sector.4
Table No. 4.2
Year
Yarn.
Production
(Million kg.)
Cloth Production
Total Mill
(in million
meters)
Decentralised
Sector (in million
meters)
1948 675 3949 1,151 5,100
1951 591 3727 1,014 4,741
Page 5
1961 862 4701 2,372 7,073
1971 881 41.15 4,473 8,588
1981 1067 4168 6,820 10,988
1991 1510 2590 15,228 17,818
1995 1696 2271 15,976 18,247
1996 1894 2019 17,201 19,220
1997 2148 1957 19,352 21,309
1998 2213 1948 20,957 22,899
1999 2022 1785 20,689 22,474
Page 6
COMPARATIVE GROWTH OF THE SPINNING AND COMPOSITE TEXTILE
MILLS (NON SSI) IN 1988-89 AND 1998-99 (STATE-WISE) : 5
Table No. 4.3
STATES/
UNION
TERRITORIES
NO. OF MILLS INSTALLED CAPACITY
SPINNING COMPOSITE SPINDLES(000) ROTORS LOOMS
1989 1999 1989 1999 1989 1999 1989 1999 1989 1999
STATES
ANDHRA PRADESH
ASSAM
BIHAR
DELHI
GOA
GUJRAT
HARYANA
HIMACHAL PRADESH
JAMMU & KASHMIR
KARNATAKA
KERALA
MADHYA PRADESH
MAHARASHTRA
MANIPUR
ORISSA
PUNJAB
RAJASTHAN
TAMIL NADU
UTTAR PRADESH
WEST BENGAL
UNION TERRITORIES
DADRANAGAR HAVELI
DAMAN & DIU
PONDICHERRY
58
3
4
--
1
28
14
4
2
32
24
8
43
1
12
19
26
428
35
24
--
--
3
96
6
8
--
1
57
75
14
2
49
32
40
124
1
15
67
44
821
56
24
1
1
9
2
--
2
4
--
90
2
--
--
12
5
17
79
--
1
2
8
23
15
17
--
--
3
2
2
1
1
--
90
2
1
--
10
4
19
77
--
1
2
8
26
16
15
--
2
2
1437
81
109
166
26
4073
305
74
34
1074
721
745
5109
16
340
586
809
4698
1712
1196
--
--
171
2110
130
181
23
26
4124
369
463
61
1122
884
1346
5020
16
362
1329
1293
12485
2003
1124
31
6
214
744
--
--
960
--
8992
168
--
336
1632
--
3000
2756
--
--
2064
1416
17840
--
504
--
--
--
7402
--
--
--
--
34246
67856
3112
992
45856
1724
14348
43044
--
3400
25016
17840
101775
9232
2425
--
1623
2888
1246
--
596
2442
--
59479
335
--
--
5439
1504
9808
66753
--
1014
1245
3019
9318
107451
9118
--
--
1932
1246
240
60
230
--
45234
211
2
--
2890
1204
6500
36104
--
1048
1023
1582
5626
1391
6695
--
--
1218
TOTAL 769 1543 282 281 26482 34722 40412 38277
9
19399
3
12250
4
Page 7
Note : 1989 and 1999 related to March 89 and March 99 respectively.
LOCATION OF THE MILL SECTOR :
Generally, the mills were set up near the cotton growing areas or near the ports
where it got the import and export facilities. Instead of these, tax facility and free-land
also contributed to the expansion of mill industry. As a result the regional imbalance
came into existence in the textile industry. At present, Mumbai and Ahmedabad have
about 60% of mills out of the total number of mills in the country.
COMPARATIVE GROWTH OF THE SPINNING AND COMPOSITE TEXTILE
MILLS IN 1986-87 AND 1996-97 (STATE-WISE) : 6
Table No. 4.4
STATES/
UNION
TERRITORIES
NO. OF MILLS INSTALLED CAPACITY
SPINNING COMPOSITE SPINDLES(000) LOOMS
1987 1997 1987 1997 1987 1997 1987 1997
STATES
ANDHRA PRADESH
ASSAM
BIHAR
DELHI
GOA
GUJRAT
HARYANA
HIMACHAL PRADESH
JAMMU & KASHMIR
KARNATKA
KERALA
MADHYA PRADESH
MAHARASHTRA
MANIPUR
ORISSA
PUNJAB
RAJASTHAN
TAMIL NADU
UTTAR PRADESH
51
2
4
--
1
28
13
3
2
31
23
9
40
1
11
19
26
416
37
92
3
7
--
1
52
71
11
2
46
31
43
109
1
14
53
42
776
52
2
--
2
4
--
90
2
--
--
12
5
17
79
--
1
2
8
23
15
2
2
2
3
--
92
2
--
--
11
4
16
75
--
1
1
7
25
16
1326
64
109
167
26
4179
299
58
36
1068
692
817
5386
14
284
548
789
7181
1711
1929
111
181
109
26
4184
369
308
53
1176
870
1221
5000
16
378
1058
1111
11690
1952
1204
--
596
2835
--
65601
393
--
--
6401
1504
12583
76137
--
1014
1245
2985
9900
13257
845
240
60
312
--
45477
211
--
--
3159
1204
6598
37630
--
1048
969
1502
6035
11687
Page 8
WEST BENGAL
UNION TERRITORIES
DADRA NAGAR HAVELI
DAMAN & DIU
PONDICHERRY
24
--
--
3
22
1
1
8
18
--
--
3
17
--
2
3
1169
--
--
192
1172
20
3
211
9876
--
--
2679
6796
--
--
144
TOTAL 744 143
8 283 281
2611
5 33148
20821
0
12391
7
Note : 1987 and 1997 related to March 87 and March 97 respectively.
In the modern age, nearly 10 lakh workers are employed in the mill industry
in the country. There are a large number of auxiliary industries depending on this
sector such as manufacturing accessories, spare parts, ancillaries, and chemicals
etc.
The spindle age capacity increased from 27.82 million in 1992 to 33.93
million as on December 1998. On the contrary, loom age decreased from 1,69,000
in March 1992 to 1,24,000 in December 1998.
Out of the total 1788 cotton / man made fiber textile mills, 192 mills are in
the public sector, 152 in the co-operative sector and 1444 in the private sector.
The growth capacity in the organized mill sector is given as under.
GROWTH CAPACITY IN THE ORGANIZED MILL SECTOR 7
Table No. 4.5
Year ending No. of Mills Installed No. of
Spinning
Compos-
ite Total
Spindles
(000)
Rotors
(000)
Loom
(000)
31.3.1992 846 271 1117 27.82 113 169
31.3.1993 874 268 1142 28.09 127 158
31.3.1994 909 266 1175 28.60 139 150
31.3.1995 1148 268 1416 30.70 185 139
31.3.1996 1294 275 1569 31.75 226 132
Page 9
31.3.1997 1438 281 1719 33.15 276 124
31.3.1998 1504 278 1782 33.88 313 124
31.3.1998(P) 1510 278 1788 33.93 317 124
P-Provisional
The follows table showing the closure of cotton/man made fibre textile
(mills) in India.
CLOSURE OF COTTON/MAN MADE FIBRE TEXTILE (MILLS) 8
Table No. 4.6
Year/Month
End No. of Mills Installed Capacity
Employees
on roll
Spinning Composite Total Spindles Rotors Loom
s (000)
1992-93
1993-94
1995-96
1996-97
1997-98
Dec. 1998
64
75
100
118
127
184
59
57
71
91
93
100
123
132
171
209
220
284
3520
2590
4668
5469
5752
6994
1776
3232
6589
9270
10813
21686
366
362
450
542
553
585
178
173
228
252
260
299
The following table gives an obvious picture of production of spun yarn
industry SSI in India.
PRODUCTION OF SPUN INCLUDING SSI 9
Table No. 4.7
Year Cotton
Yarn
Blended
Yarn
100% Non-
Cotton Yarn
Total
Yarn
1992-93 1569 247 125 1941
Page 10
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99 (Apr.-Sep.)
(P)
1998-99 (A)
(P) Provisional
(A) Anticipated
1697
1696
1894
2148
2213
987
2045
305
346
395
484
583
306
630
140
158
196
162
177
86
185
2142
2200
2485
2794
2973
1379
2860
The following table indicates the count-wise production of cotton yarn.
COUNT-WISE PRODUCTION OF COTTON YARN 10
Count-Group (Million Kg.)
Table No. 4.8
Year 1 -
10s
11s –
20s
21s –
30s
31s -
40s
41s –
60s
61s –
80s
81s- &
above Total
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99 (Apr.-Sep.)
(P)
1998-99 (A)
241
278
282
310
479
503
220
465
346
385
389
415
511
518
228
470
284
314
321
391
405
462
25
395
487
494
470
490
515
539
240
501
136
144
145
153
136
136
55
134
44
48
48
95
60
53
22
45
31
37
43
40
52
39
17
35
1569
1697
1696
1894
2148
2250
987
2045
Page 11
(P) Provisional
(A) Anticipated
CIVIL DELIVERIES OF HANK YARN 11
Table No. 4.9
Item 1992-
1993
1993-
1994
1994-
1995
1995-
1996
1996-
1997
1997-
1998
1998-
99
(Apr.-
Sep.)
(P)
1998-
1999(A)
Cotton
Blended
100% Non-Cotton
Total
377
1
37
415
422
Neg.
42
464
438
1
51
490
504
1
66
571
519
4
67
590
540
5
53
598
243
2
24
269
508
5
52
565
(P) Provisional
(A) Anticipated
(B) HANDLOOM SECTOR :
Handloom industry is the oldest one in the country. This industry has been
playing a vital role in the production of cloth for countries. The Indian Muslim
weavers attracted the buyers of foreign countries like Egypt, Arab, Greece and
Rome. The handloom sector was in full gear during the Second World War. During
Page 12
the war time, this industry satisfied the internal demand of the country. After the
war, this sector suffered a setback.
RESTRICTION BY THE GOVERNMENT :
In 1950, the government enforced a policy of reservation of some types of
the cloth for the handloom industry. The government of India restricted the mills
and large powerloom unit from manufacturing of dhoties with border containing
coloured yarn and exceeding 1/4" width or use of jari or art silk or silk yarn on
dhoti border. Production of any Lungi, Sarang or Gumcha with a check pattern or
any cloth with check pattern and having a width between 42" and 52" from which
Lungees, Sarang, and Gumchas could be made, and the production of chaddars,
bed sheets, bed covers and anything of checked or stripe pattern was prohibited.
Because of this restriction the handloom industry got a new life. The government
policy of course, was always favouring the handloom sector.
ROLE OF GOVERNMENT IN THE PROGRESS OF HANDLOOM:
For the development and expansion of handloom sector the government of
India has taken the following steps.
(i) In 1952 Textile Inquiry Committee was appointed under the
chairmanship of Shri Nityanand Kanungo.
(ii) All India Handloom Board was set up to advise the government in
respect of the problems of handloom industry.
(iii) Additional Excise Duty on Cloth Act was passed in 1953.
For the promotion and development of the handloom sector different
schemes have been introduced for the (handloom) weavers. They are as under.
a) Employment generation programmes.
b) Modernization and Upgradation of Technology.
Page 13
c) Input Support.
d) Marketing Support.
e) Publicity.
f) Infrastructural Support.
g) Welfare measures.
h) Composite growth oriented packages.
The follows table shows the number of Handlooms state-wise.12
Table No. 4.10
Name of the states No. of Handloom
Urban Rural Total
Andhra Pradesh 57327 162383 219715
Arunachal Pradesh 68 45448 45516
Assam 653775 1343793 1404168
Bihar 11557 71100 82657
Goa 9 86 95
Haryana 13969 6303 20272
Himachal Pradesh 1075 30289 31364
Jammu & Kashmir 4617 20655 25272
Karnataka 36999 44586 81585
Kerala 4751 46878 51629
Madhya Pradesh 15740 31691 47431
Maharashtra 50953 16689 67642
Manipur 42359 227902 270261
Meghalay 427 7774 8201
Mizoram 21092 82702 103794
Page 14
Nagaland 11224 66279 77503
Orisa 5933 113072 11900 5
Punjab 3651 8577 12228
Rajasthan 8151 25105 33256
Tamil Nadu 121742 306803 428545
Tripura 264 118808 119072
Uttar Pradesh 99966 160748 260714
West Bengal 37194 301305 339499
Pondichari 3867 1376 5243
Total 630489 3260087 3890576
CLOTH PRODUCTION :
22% of the total production of cloth is manufactured by the handloom sector,
especially dhoties and sarees in various parts of the country. It is because of the
state government intervention through financial help and implementation of
various development and welfare schemes this sector has been able to withstand
the competition from powerloom and mill sector. As a result, the cloth production
has gone up to 7862 million sq. meters in 1997-98.
Table shows the percentage of various cloth pattern. 13
Table No. 4.11
S r. No. Type of Cloth % to Total
Production
1 Dhoties 23
2 Sarees 26
3 Shirting & Coatings 08
4 Bed Sheets 04
Page 15
5 Towels 08
6 Others including lungees, Sarees
Sarang, Hanker chiefs, Bleeding mattress etc. 31
Total 100
Growth of Powerloom, Employment And Production of Cloth 15
Table No. 4.12
Year No. of Powerloom
Units
No. of Powerloom
(Revised) Employment
1992 309064 1200111 3000278
1993 310590 1239268 3098170
1994 319728 1314003 3285008
1995 326286 1365284 3413210
1996 333017 1411903 3529758
1997 349280 1523336 3808340
1998 355791 1576977 3942443
(upto 31.8.98)
(C) POWERLOOM SECTOR
It is very difficult to indicate when and where the first powerloom was set up
in the country. However, the Fact Finding Committee had pointed out that there
were 15000 powerlooms in 1942. The main centres of powerlooms are Mumbai,
Page 16
Ahmedabad, Ichalkaranji, Sholapur, Surat, Tanda and Jabalpur. Some other state
having powerlooms are West Bengal, Karnataka and Punjab.
In 1941, Mumbai had almost 55% of the total powerloom in the country. Other
important states were Madhya Pradesh and Karnataka. In 1958, the powerloom
spread out rapidly in other states also.
Following table shows the percentage of location of powerloom in various
states and union territories of India. 16
Table No. 4.13
Sr.
No. States
Total Number
of Powerlooms
(in Lakhs)
Cotton
Powerlooms
(in Lakhs)
1 Andhra Pradesh 0.15 0.09
2 Assam 0.12 0.02
3 Bihar 0.07 0.06
4 Gujrat 0.92 0.23
5 Haryana 0.02 0.01
6 Karnataka 0.34 0.12
7 Kerala 0.06 0.05
8 Madhya Pradesh 0.16 0.13
9 Maharashtra 2.26 1.76
10 Orissa 0.04 0.04
11 Punjab 0.22 0.05
12 Rajasthan 0.08 0.07
13 Tamil Nadu 0.93 0.69
14 Uttar Pradesh 0.24 0.19
Page 17
15 West Bengal 0.15 0.13
16 Other States and Union Territories 0.05 0.03
Total 5.71 3.67
CONVERSION SCHEME OF HANDLOOM TO POWERLOOM:
According to the Kanungo Committee the Government introduced a scheme of
conversion of the Handloom into Powerloom in the co-operative sector. It
recommended 35,000 powerloom only. There were some conditions to be observed
in the conversion which are as follows.
(i) The allotment of looms would be on co-operative basis only.
(ii) Powerloom should be housed in weaver’s cottages themselves.
(iii) Other powerloom co-operative societies may be formed.
(iv) The size of the powerloom unit should be of 10 looms.
(v) Powerloom unit should be located in rural areas. The place having the
population of 30,000 or less than that shall be considered as a rural area.
(vi) Only one powerloom to each weaver should be allotted.
(vii) Powerloom under this scheme is meant exclusively for the production of
cotton only.
For the completion of this scheme, a loan upto 87.50% as a share capital and
Rs. 100/- as a membership fees for the co-operative societies was provided.
Besides, the cent percent loan for the cost of powerloom with motor and other
expenses out of which 50% of the total sum will be given as a grant and 50% as a
loan. Rs. 500/- was also sanctioned as a working capital.
The scheme proved to be a failure in Maharashtra due to the shortage of
working capital. There were many difficulties such as delay in the supply of
Page 18
powerloom, supply of electricity and provision of capacity. In rural areas
electricity was not available.
REASON FOR THE FAILURE OF THE SCHEME :
The government tried its best for the success of the Conversion Scheme and
provided financial assistance but, the scheme did not prove to be success in a true
sense of the term for the following reasons.
(i) The working capital was not sufficient to run the powerloom.
(ii) The people, who have had 30,000 handlooms in rural areas, related to co-
operative societies discouraged the scheme.
(iii) There were no power facilities for winding warping sizing supply of yarn
and finishing etc.
(iv) There was no proper arrangement for the allotment of looms in the co-
operative societies.
GROWTH OF POWERLOOM INDUSTRY :
The decentralised powerloom sector plays a unique role in meeting the
clothing needs of the country. The growth and expansion of powerloom industry
over the years have been phenomenal.
Not only the production of cloth but also the employment have been increasing
rapidly in the powerloom sector. The powerloom industry produces a wide range
of cloth, both grey and processed. The contribution of powerloom sector is 55% of
the total production of cloth in the country. The powerloom products are
comparable in the world market. The importance to the Indian economy in the
present circumstances should not be therefore overlooked. A great deal of
responsibility is therefore thrust on the powerloom industry. The first
Page 19
powerloom unit was set up in 1904 in the country. The growth of powerloom
industry started during the First World War. The First World War brought a golden
chance to flourish, not only to the handloom sector but also to the powerloom
industry in the country. The traditional handloom owners turned powerloom due to
low expenses and handloom profits. There was also exemption to the small
powerloom units from the restriction that was imposed on bigger units. The
number of units was increasing slowly. After the Second World War, there was
rapid growth in the powerloom sector. In 1958, the number of powerlooms went up
to 44500. In 1980, it increased by 45 lakhs.
GROWTH OF POWERLOOM INDUSTRY IN MAHARASHTRA:
Bombay, Bhiwandi, Malegaon, Dhule, Ichalkaranji and Sholapur are the main
centres of powerloom industry in Maharashtra state. All these centres have a
speciality in the pattern of weaving and are known for their variety of cloths.
Ichalkaranji is famous for its superfine dhoties and multi-colour sarees that are
called 'Patal'. The powerloom of Sholapur are engaged in manufacturing Jacquard
Chaddars and towels that earn a handsome foreign exchange for the country. On
the other hand, Malegaon and Dhule are well-known for coloured sarees with silk
and Zari border Irkal, Zar-Zamin, Apsara, Mangla, Boutique are some of the
famous pattern of sarees. Moreover grey cloth is another product of the centre.
Bombay has got main place in the textile industry. All types of cloths such as long
cloth, grey cloth, suiting, shirting, printed materials, dhoties and silk sarees are
some of the special products of Bombay textile industry.
Importance of Bombay:
Page 20
Earlier, it is mentioned that the textile industries are established near the cotton
growing areas and near the port, which had the facility of import and export. After
the First World War, the textile industry was mainly concentrated in Bombay due
to the following reasons.
(i) Humid climate of Bombay is suited for the cotton spinning.
(ii) Facility of Transport.
(iii) Easy availability of funds.
(iv) Provision of raw-material.
(v) Advertising facility.
(vi) Import and Export facility.
(vii) Supply of electricity and water.
(viii) Banking facility.
(ix) Cheap and skilled labour.
(x) Connected to all big cities of India by railways, roads and air.
(xi) Head office of the Textile Commissioner.
(xii) Main centre of mill industries on the textile field.
(xiii) International city due to air-port.
(xiv) Being the capital of Maharashtra state.
(xv) Facilities of processing, sizing, printing, spinning and dying etc.
OTHER POWERLOOM CENTRES IN MAHARASHTRA:
Apart from Mumbai, there are also some other important powerloom centres in
Maharashtra. They are Bhivandi, Malegaon, Ichalkaranji, Dhule Sholapur etc.
(i) Bhiwandi: Bhiwandi has got more importance in the textile industry
than the others centers of powerloom as it is located near Bombay. Because of
locality, Bhiwandi received all facilities that are available in Bombay. Presently,
Page 21
more than one lakh powerlooms are running over there. The powerloom industry
got rapid growth and expansion due to financial assistance and support of mill
owners from Bombay. One more reason is that, in Bombay, after 1980, the mill
mazdoors went on strike under the leadership of Datta Samant. Nearly 13 mills
were locked due to less than enough capital and strikes. Lakhs of mazdoors
became jobless. The mill owners turned towards Bhiwandi by supplying sized
beams and yarn and encouraged the setting of powerlooms. The mill owners
received prepared cloth. It is called "Master Weavers". Approximately 60%
powerlooms are working as master weavers. At present, suiting and shirting are
common products. Now a days, the famous powerloom centre is experiencing a
sever crisis of electricity supply. The charges are increased from Rs. 120/- to Rs.
300/- per powerloom by the Government of Maharashtra which is unbearable not
only for the powerloom owners form Bhiwandi but also the other centres. Due to
the crisis 50% powerloom units are locked-up.
(ii) Ichalkaranji: Ichalkaranji is one of the eminent powerloom centre in
southern Maharashtra. The powerloom industry started here in 1904. The specialty
of this center is the product of multi-coloured ‘Patal’ sarees made from imported
yarn. After 1956, the weavers of Ichalkaranji shifted their production to grey cloth
in fine and superfine dhoties and mulls. Influenced with the present age of
modernization, the weavers are on the path of modernization of powerlooms.
(iii) Sholapur: Sholapur is situated in the southern part of Maharashtra.
Sholapur is a centre where mills, handlooms and powerlooms have developed side
by side. In the beginning, the handloom was providing the local needs. After the
First World War, a mill was established in 1950-55. Hence the weavers purchased
and set up their own looms. At present, one lakh powerlooms are working there.
They are busy in manufacturing Jacquard chaddars and towels. These products
Page 22
have great demand in the country and are also exported to African countries and
are earning foreign exchange.
(iv) Dhule: Dhule is situated on Bombay-Agra Road, to the east of Malegaon
in Maharashtra, at a distance of 55 kms. It is also known for its coloured sarees as
is Malegaon. At present, 20,000 powerlooms are working there. Presently some
powerlooms are manufacturing grey cloth of cotton, polyester and rotto etc.
At present, all the powerloom centre in Maharashtra are facing the crisis of the
increase in the electric charges. The fixed rate of Rs. 120/- to 160/- now has been
increased upto Rs. 300/- per powerloom by the M.S.E.B. Strikes, morcha, hunger
strikes, processions, meetings and representations are organized to ventilate
grievances.
A COMPARATIVE STUDY OF POWERLOOM INDUSTRY WITH THE
HANDLOOM SECTOR AND MILL SECTOR :
The Indian Textile Industry is divided into three sectors. Among them,
powerloom and handloom sectors are decentralised and non-organized. The Mill
Sector is powerful and is dominated by the capitalists. Generally, it is said that, the
powerloom sector is the great rival of mill and handloom sectors. According to the
14th report of the Estimate Committee of the 6th Loksabha of March 1978 that
"The powerloom industry at all on the contrary is playing a role of restricting the
monopolistic powers of Mills sector and thereby helping a common man to get
cloth at reasonable price." 17
It is a matter of fact that the powerloom industry is extended to small towns
and villages in Indian Territory. At all the centres, the weaving pattern of cloth is
varied according to the area. So there is no question of competition. At present, in
Ichalkaranji and Sholapur, powerlooms are engaged in producing ties coloured
Page 23
cheek sarees, mull etc. In Madras, the handlooms are concentrated on the
production of dhoties, saree, shirting, coating and towels. In Malegaon coloured
sarees grey, polyester and rotto are manufactured.
In fact, the powerloom and handloom sectors are producing 75 per cent of the
total cloth produced in India. These two sectors are busy in providing a gainful
employment to the poor people of the area. In this manner, it is helping to promote
the economy of the county and also solving its unemployment problem.
In spite of these important roles of the powerloom industry, it does not get any
facility from the government. On the contrary, the powerloom owners are exploited
by the mill owners, capitalists, traders, and middlemen. Several other restrictions
are imposed by the government to time in order to save the mill and handloom
sector.
RECOMMENDATIONS OF THE COMMITTEES:
Instead of giving any facility or financial help to the powerloom industry the
governments appointed various committees to find out the problems of textile
industry in the country. Kanungo committee (1954), Ashok Mehta Committee
(1964), Siva Raman Committee (1974) were appointed by the government to study
the problems. Among them, the only committee of Ashok Mehta, recommended in
a true manner and in sympathetic way for the powerloom industry. It was the first
committee which advised the government to include the powerloom sector in Five
Year Economical Development Plan. It also granted the powerloom industry its
social status.
The Kanungo Committee and Siva Raman Committee recommendations were
disfavouring as well as discouraging the powerloom sector.
Page 24
According to the fact Finding Committee (1942) "A more serious rival to the
handloom industry than the mills had arisen in the small sector powerloom
factory."
This rival combines itself owing to its medium scale production, the
advantages of both mill and handlooms. It can utilize cheap electric power and
avail itself of the modern appliances in weaving. The competition from
powerlooms is a growing phenomenon which about 15 years ago the handlooms
had nothing to fear from. Powerlooms are not subject to any irksome restriction
such as factories Act or special taxes. As such they are source of competition in
important line to the mills as well. The cost of production in powerloom is
comparatively low owing to small overhead charges and economics of mechanical
production. 18
The recommendations of Siva Raman Committee were very harmful
for the powerloom sector. Therefore, there was no question for the Mill sector to
go against it. The Siva Raman Committee suggested that for the protection of
handloom weavers against unemployment, the government must impose restriction
on further expansion and growth of powerloom industry. Really, the
recommendations of Siva Raman Committee were poison for the powerloom
sector. So it is clear that anytime and anyway, the policy of the government in
respect of powerloom industry is not favourable and encouraging. Because of this
the powerloom suffered and faced a lot of difficulties and could not do much
progress in the textile field of the country. Whatever progress is seen by the
powerloom sector in various centres are self dependent and without any help from
the government Later or earlier in the B.J.P. Govt., the textile minister Mr. Kansi
Ram Rana who is from Surat in Gujrat constituency which is one of the
powerloom centres in India, paid sympathetic heed towards the industry. It is
hoped that some encouraging and needful step would be taken by him. It is because
Page 25
while formation of All India Textile Board, Mr. Momin Mujeeb Ahmed has been
selected from Malegaon powerloom centre as a representative.
EXPLOITATION OF POWERLOOM OWNERS:
Yarn is the basic need for handloom and powerloom industry. These yarns are
supplied by the textile mills. The handloom requires the yarn in the form of hanks
while the powerloom in the form of cones or sized beams. The Textile Mills and
Spinning Mill are dominated by the capitalist. They have created the vicious circle
of distribution chain of yarn to the powerloom weavers. In the selling process of
yarn there are relatives of mill owners, agents, brokers and other middlemen who
purchase and sell the yarn. In this way, the sold and purchased yarn passes through
four to five hands before reaching its actual users. At every stage, the profit is
earned. These middlemen buy and fix the price of yarn according to the
fluctuations of demand and supply. They create a shortage of yarn and increase the
price. In this way, the powerloom owners or weavers have to pay more than the
actual price of millrate, so the poor, disorganized and helpless powerloom weaver
owners are exploited by the millsowners. Apart from this, the government does not
take any effective step to stop these malpractices of mill owners.
There is no doubt that the small powerloom owners and weavers are very
much in the grip of the mill owners and middlemen and being exploited and put to
hardships.
It is because, during the elections, the mill owners and capitalists give election
funds to the political parties for their expenditure in election.
After the election the mill owners sell yarn according to their will by creating
artificial shortage of yarn. That’s why the government does not pay any heed
Page 26
towards the protest or strike of the powerloom owners.
EXPLOITATION BY THE CLOTH MERCHANT:
Lack of processing facility is one of the deficiencies in the powerloom
industry. As a result, the powerloom owners helplessly sell their grey cloth from
the mills and traders or master weaver who sells the cloth on higher rate after
processing. Here these traders and mill owners created artificial market crisis and
exploit the powerloom owners.
This exploitation of powerloom owners is continued on both the sides
i.e. at the selling of yarn and purchasing of cloth. The powerloom owners do not
take any interest in the co-operative movement. They are totally dependent on the
yarn suppliers, traders and cloth merchants. In this regard, the Estimate Committee
of 1978 recommended “the state government should come forward with the time
bound programme to free weavers from the clutches of master weavers.” 19
Page 27
REFERENCE
1. The Powerloom Enquiry Committee Report 1964
Ministry of Textile and Commerce
Government of India, New Delhi
Page No. 5
2. All India Textile Mill Federation, Bombay
Compendium of Textile Statistics 1999
Page No. 30
3. Ibid, Page No. 65
4. Ibid, Page No. 31
5. Ibid, Page No. 31
6. Annual Report 1998-99 Textile Industry
Government of India
Page No. 12
7. Ibid. Page No. 15
8. Ibid. Page No. 13
9. Ibid. Page No. 14
10. Ibid. Page No. 11
11. Powerloom Inquiry Committee
Page No. 11
12. Assistance Director Office of the Commissioner
Handloom, Powerloom, Ministry of Textile,
Govt. of India, New Delhi. 110011
13. Powerloom Enquiry Committee 1964
Minsitry of Commerce Textile & Commwerce
Government of India, New Delhi
Page No. 29
Page 28
14. Annual Report 1998-99,
Ministry of Textile,
Government of India, New Delhi
Page No. 18
15. Annual Report 1998-99, Ministry of Textile,
Government of India, New Delhi
Page No. 19
16. R. R. Ansari,
A study of Marketing Problems of Powerloom
Industry in Malegaon.
Thesis Submitted to University of Pune, 1979
Page No. 49
17. Powerloom Enquiry Committee Report 1964
Ministry of Commerce and Textile
Government of India, New Delhi
Page No. 39
18. Yantra-Magh, November 1980, Ichalkaranji
Page No. 30
19. Powerloom Enquiry Committee Report 1964
Ministry of Commerce and Textile
Government of India, New Delhi
Page No. 31
xxx
