The cotton yarn is the main raw material for the weavers and rise in the price of cotton has been a matter of concern for the weavers all over the country.  However, the Govt. of Tamil Nadu has intimated that costly cotton has not affected the handloom cloth sector to a great extent. This information was given by the Minister of State for Textiles, Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha today to a question raised by Shrimati Jayanthi Natarajan.
 

The Minister further stated that the Government of India is implementing following schemes for overall development of the handloom sector in the country including Tamil Nadu:-
 

i)    Integrated Handloom Development Scheme
ii)    Handloom Weavers Comprehensive Welfare Scheme
iii)   Marketing & Export Promotion Scheme
iv)   Diversified Handloom Development Scheme
v)   Mill Gate Price Scheme
 

In addition, Comprehensive Handloom Cluster Development Scheme (CHCDS) has been introduced in 2008-09 with an objective to empower handloom weavers and build their capacity to enhance competitiveness of their products in the domestic as well as global market in a sustainable and reliant manner. The scheme covers clearly identifiable geographical locations with at least 25,000 looms in which Government of India’s financial support would be up to Rs.70 crore.   Four such Mega Handloom Clusters have been sanctioned so far at Varanasi (Uttar Pradesh), Sivasagar (Assam), Virudhunagar (Tamilnadu) and Murshidabad (West Bengal).  Further, the Govt. of India has taken the following initiatives to control the prices of cotton and cotton yarn:-
 

1.Capping of cotton exports for cotton season 2010-11 (October to September);
2.Hank Yarn Obligation expanded from 40s counts to 80s counts w.e.f. 31.03.2010;
3.Stringent checking of Hank Yarn Obligations on spinning mills;
4.Withdrawal of DEPB incentive of 7.67% on cotton yarn exports w.e.f. 21.4.2010
5.Withdrawal of duty drawback on yarn w.e.f. 29.4.2010;
6.Constitution of a Cotton Yarn Advisory Board to monitor domestic and international prices of cotton yarn; and
7.Capping cotton yarn export  for financial year 2010-11.

The Government of Tamil Nadu is also implementing following schemes for welfare of the handloom weavers and the development of the handloom sector, the Minister added.
 

i)     Free distribution of Sarees and Dhoties Scheme
ii)    Free supply of Uniform Scheme
iii)    Free supply of Electricity to handloom & powerloom weavers
iv)   Interest subsidy Scheme
v)    Rebate subsidy Scheme
vi)   Old age Pension scheme
vii)   Savings and Security Scheme
            

RM/JL

(Release ID :70481)