Crisis in Handloom Industry

  1. The handloom industry in Telangana, a crucial sector after agriculture, faced neglect and difficulties due to policies by Andhra rulers.

  2. Economic reforms led to a scarcity of Chiluva Silk/Yarn, the main raw material, making it hard to obtain in the market.

  3. The State government removed a 10% subsidy on Yarn, adding to the industry’s challenges.

  4. The Central Government imposed an excise tax on cotton and synthetics, causing a significant increase in yarn prices.

  5. Prices for dyes and chemicals also escalated, leading to irreparable damage to the handloom sector.

  6. Weavers faced financial distress, taking out high-interest loans and incurring heavy debts, with many unable to repay and resorting to suicide.

  7. The Siricilla region, known as “Uricilla,” is a notable center for handloom production in Telangana.

  8. In 2004, the YSR government formed a committee led by K. Rosaiah to address weaver issues, which proposed 14 recommendations that were largely ignored by the government.

  9. Attempts to support weavers through APCO (Andhra Pradesh State Handloom Weavers Cooperative Society) were largely unsuccessful.

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