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Report on Marketing Study in the Area of Handloom Project Under CLSP Component of OFFDI

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Report on Marketing Study in the Area of Handloom Project Under CLSP Component of OFFDI Report on Marketing Study in the area of Handloom Project under CLSP component of OFFDI Supported by: Department of Planning and Co-ordination Government of Orissa Project implemented by: Institute of Rural Development and Management Studies(IRDMS) Report on Marketing Study in the area of Handloom Project under CLSP component of OFFDI Supported by: Department of Planning and Co-ordination, Government of Orissa Project implemented by: Institute of Rural Development and Management Studies(IRDMS) Content Background The Study Area Sambalpuri handloom in the operational area Social-economic profile of the weaver community The Marketing Study The Process The Weaving Operation Supply of Raw materials Marketing Channels Marketing of the woven goods The marketing Channels Issues The Existing Supply Chain Conclusion Background Orissa has the richest traditions of handloom and handicrafts in the country, more specifically having handlooms like Sambalpuri, Maniabandha, Bomkei, Bandha etc. Amongst these Sambalapuri have its unique identity and demand in the market because of its texture, design and durability of colour. Although the Sambalpuri name of a locality attached to the product, since age long the textile type has its presence in undivided Phulbani and KBK region since ages. The traditional cultural trend and costume adopted Sambalpuri handloom as customary item in the society. The traditional artistic handloom fabrics and other craft items reflect the cultural heritage of the region. Which became the major livelihood option of the state next to agriculture and the handloom sector provides major employment to people in the informal economic sector. As the weaving sector depends mostly on government patronage as incentives provided to the handloom industry from time to time. As a result excluding the highly skilled tie and dye weavers constituting around 40 per cent of the weaving population, while the rest depends on the local market and local marketing out let's to sustain their livelihood. At present it is observed that the handloom industry of Orissa in particular and the country in general is passing through a very difficult time. The introduction of new economic policy (NEP) and adoption of SAP (structural adjustment programme) measures by the Government of India since 1990 have resulted in downfall and decelerating growth of the handloom sector in the absence of adequate state sector support and interventions. The primacy of the market economy and globalization without adequate innovative measures and support for the handloom fabrics have slowly started affecting the growth of the industry and livelihood of the weavers all over the country. Orissa, a least industrialized and poor state has become the worst sufferer. The latest Handloom Census conducted by the NCAER (National Council for Applied Economic Research) during 1995-96, however, shows that the number of commercial looms in Orissa was 76,645. In these looms 81,440 persons were working as full-time weavers and 23,236 were part-time weavers. Added to this, 45,210 persons were engaged in full-time preparatory works and 58,172 persons were employed on part- time basis. Thus, during 1995-96, the handloom industry of the state was providing direct employment to 2.08 lakh persons as against 2.44 lakh persons during 1987-88. This shows that the handloom sector in Orissa has registered a marked decline in the post liberalization years. Although Orissa is a traditionally non-cotton growing state, it has a substantial and numerically larger size of weaving population depending on handloom industry for their livelihood because of absence of industrial source of livelihood and the customary practices in the society. The Study Area The present study area is restricted to the block of Baraplli in Bargargh district and the nearby trading outlets at Bargargh, to understand the basic features of Marketing and related issues to it. Sambalpuri handloom in the operational area: As Sambalpuri handloom is predominate in the area and the only source of livelihood for the weavers' community the study covers almost all the stakeholders associated to the sector. The handloom of Orissa, particularly woven by the weavers of Bargarh District have been appreciated all over the Country and abroad because of its appealing form , workmanship design and color combination . The tie and dye design otherwise known as IKAT fabric, popularly known as “Bandha” technique in handloom weaving. Western Orissa has been the most appealing from of hand of weaving process with an intricate art of long tradition of excellence and craftsmanship, mainly woven in the district is a specific design which is only possible in manual labor. The 17,133 weavers in the district mainly engaged in making of traditional Sambalpuri design of tie and dye sari and other dress material like dress materials, towel, napkin, door and window curtain, handkerchief etc. Eminent personalities like Late Sri Krutarth Acharya and Sri Kunja Bihari Meher of this district have been awarded with “Padmashree” for their outstanding contribution in Sambalpuri Tie & Dye methods. Out of 52 nos. of working Weavers Cooperative Societies of Bragarh district the Sambalpuri Bastralya Handloom coop. Society Ltd. having its headquarters at Bargarh, within the jurisdiction of un divided Sambalpur district then after it extended to K.B.K district and subsequently extended to coastal belt of Orissa, was organized by Dr. Padmashree Krutratha Acharya during the year 1954 There are about 6000 nos. of its regular wavers under 'A' class membership, working through its 49 nos. of Weaving Branches and numbers of Weavers coop. Societies from Western Orissa and 33 nos. of W.C.S from coastal belt . By this about 15,000 weavers are being provided with gainful employments below the poverty line category. Social-economic profile of the weaver community: The Bargarh district lies between 200 43' to 2100 41' North latitude and 82 39' to 830 58' East longitude. It is one of the western most districts of the State of Orissa and came in to existence as a district from 1st April 1993 as separate district from Sambalpur. It is bounded on the north by the state of Chhatisgarh and on the east Sambalpur district, on the south lies Balangri and Subarnapur district and on the west is bounded with Nuapara district. Bargarh district has an area of 5837 Sq. Kms with a population of 13.46 Million as per 2001 census, out of which 6.81 millions are male and 6.65 millions are female. Bargarh District has two distinctly different kinds of scenario in the field of economic development one is agriculture and other one is handloom. The area under the Command area of Hirkud Dam has a fairly developed agricultural based livelihood practices. The rain fed area like Padampur Sub Division and Bhatli & Ambabhona Block of Bargarh Sub Division are backward with traditional agriculture and lack of development of other sectors as well. During the recent years there is an increased demand for other allied industries and service like Poultry, Diary becoming increasingly popular. Lacks of scope in service sector, the unemployed youth are evincing more interest in self- employment opportunities. Besides, traditional workers like potters, Blacksmiths, Construction Workers etc., there are fairly good presence of handloom weavers' concentrations in the district. The Marketing Study: As discussed earlier, handloom being the second largest traditional livelihood sector in the district and more particularly in the operational area of the project. The current study intended to understand different aspects affecting the sector and more specifically the market chains mechanism associated with the sector. The study was conducted in the program area, with a objective to understand different key factors, channels and status in marketing of the Sambalpuri handloom sub sector. The Process: The study process was initiated with a thorough visit to the secondary information available on handloom sector of Orissa followed by interaction with primary and secondary stakeholders associated. A questionnaire pertaining to the subject was also administered to collect information from primary source. The Weaving Operation The sustainability of traditional weaving operation is greatly dependent on the prevailing market position, efficiency of management of the weavers' co-operative societies and production centers, availability of basic raw material-yarns, dyes etc. Though the sector is facing problems to survive and maintain its position particularly in the light of the serious challenge posed by advent of power looms and the organized mill sector, the weaving community still continues to struggle to maintain their livelihood by pursuing their traditional occupations. Many handloom co-operative societies and production centers are passing through the crisis situation caused due to competitive environment by the organized modern textile sector. The present status of weaving operation and working of the looms, availability of raw material, utilization of weaving assets, modernization of loom and marketing of the handloom products have been studied during the process. It is important to note that in spite of growing competitions and pressure caused by the modern textile sector, and shortage/irregular availability of raw materials, almost all the weaver families met have still been continuing with their weaving operations to limited scale. Govt. assistance in terms of credit availability, supply of yarns and dyes, training and supervision, quality assurance and marketing support has been reflected in dwindling position of traditional weaving sector. Supply of Raw materials The materials used for weaving the handloom products are of tools / machineries and raw materials. The majority of tools and machineries are of one time input, where as raw materials like yarns and colors are the variable items being used in a regular basis. As Sambalpuri handloom is a traditional type of art most of looms being used are made out of wood and iron. Local craftsmen manufacture the loom and other ancillaries. While for raw materials the weavers depends on out side producers located at Coimbatoor and other south Indian towns.
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