Handloom crisis in Andhra Pradesh and Telangana

The handloom industry in Andhra Pradesh and Telangana is facing a severe crisis, due to a sharp drop in the number of looms, growing raw material costs, and increasing weaver suicides. Once a major employment source, the sector has been steadily eroding since economic liberalization in the early 1990s.

Key factors contributing to the crisis are: escalating raw material prices especially that of cotton yarn and dyes due to exports, and the failure of spinning mills to supply the mandated quota of yarn to the handloom sector. Government support has also dwindled, with cuts in policy, budget, and financial aid. The imposition of GST has further burdened weavers with additional taxes.

Despite being a significant employer, the handloom sector has been neglected in favor of mill and power loom industries. Earlier policies were in place to protect handloom weavers, with time they have either been diluted or abandoned. Weavers, lacking organization and facing economic vulnerability, are unable to effectively advocate their rights.

The crisis is particularly acute in regions like Chirala, Pochampally, Dharmavaram, and Madanapally, where handloom production is a mainstay. The situation is exacerbated by the weakening of cooperatives and the rampant copying of handloom designs by power looms, despite legal protections.

Government apathy is evident in the lack of action to address the crisis, despite promises from both the previous and current state governments. The sector urgently needs support through market intelligence, design upgrades, credit facilities, and enforcement of intellectual property rights. Reviving the handloom industry is crucial for employment generation and economic growth.