A STUDY ON THE PERFORMANCE OF CO-OPERATIVE SILK

PRODUCERS IN KUMBAKONAM TALUK OF TAMIL NADU

Thesis submitted to the Bharathidasan University for

The award of the degree of

DOCTOR OF PHILOSOPHY IN COMMERCE

By

T. SENTHIL RAJESWARI

Under the guidance of

Dr.M.SELVACHANDRA, M.Com., M.B.A., M.Phil., PGDCA., Ph.D.,

Associate Professor and Head,

Post-graduate and Research Department of Commerce

A.D.M. College for Woman (Autonomous)

Nagapattinam - 611 001.

BHARATHIDASAN UNIVERSITY

TIRUCHIRAPPALLI-620 024

DECEMBER-2013

Dr. M. SELVACHANDRA, M.Com., M.B.A., M.Phil., PGDCA., Ph.D.,

Associate Professor., HOD and Research Advisor in Commerce,

A.D.M. College for Woman (Autonomous),

Nagapattinam-611 001, Tamilnadu, India

Email: drmselvachandra@gmail.com

Mobil: +91 98426 39030

Date:

CERTIFICATE

This is to certify that the dissertation entitled “A STUDY ON THE

PERFORMANCE OF CO-OPERATIVE SILK PRODUCERS IN

KUMBAKONAM TALUK OF TAMIL NADU” submitted to Bharathidasan

University, Tiruchirappalli in partial fulfillment of the requirement for the award of

the degree of Doctor of Philosophy in Commerce is a record of original research

work carried out by Mr. T. Senthil Rajeswari, under my supervision and guidance and

the thesis has not formed the basis for the award of any Degree / Diploma /

Associateship / Fellowship or similar title to any candidate of any university.

(M. SELVACHANDRA)

DECLARATION

I hereby declare that the thesis entitled “A STUDY ON THE

PERFORMANCE OF CO-OPERATIVE SILK PRODUCERS IN

KUMBAKONAM TALUK OF TAMIL NADU submitted to Bharathidasan

University, Tiruchirappalli in partial fulfillment of the requirement for the award of

the degree of Doctor of philosophy in Commerce is a record of original research

work done by me under the supervision and guidance of

Dr. M. SELVACHANDRA, M.Com., M.B.A., M.Phil., PGDCA., Ph.D., Associate

professor and Head of the Department, Post-graduate and Research Department of

Commerce, A.D.M. College for woman (Autonomous), Nagapattinam 611 001,

Tamilnadu and that the thesis has not formed the basis for the award of any Degree /

Diploma / Associateship / Fellowship or other similar title.

Signature of the candidate

(T. SENTHIL RAJESWARI)

ACKNOWLEDGEMENT

At the outset let me prostrate and express my heartfelt gratitude to the

LORD MURUGA who motivated and stood by my side to accomplish this noble

task.

I express my deep sense of gratitude to my guide and supervisor,

Dr. SELVACHANDRA, Head, Department of commerce and Associate professor

in commerce, A.D.M. College for Woman (Autonomous), Nagapattinam. Whose

constant and valuable guidance made the study possible in spite of her extremely

busy academic pursuits; she always spared time for me. In fact, she has created in

me a life-long impression by this unstinted kindness, affectionate guidance, critical

comment, valuable suggestions, advice and noble generosity. But for this support

and encouragement, the present work would not have seen in the light of the day.

My sincere thanks are due to Dr. S. MYHILI, M.com., M.Phil,. Ph.D.,

Principal, A.D.M. College for Woman ( Autonomous), Nagapattinam, and other

faculty members of the Department of commerce, A.D.M. College for Woman

(autonomous), Nagapattinam.

I am grateful to Dr. S. MUTHUKUMAR, M.com., M.phil., Ph.D.,

Reader and Hod of commerce, AVC College (Autonomous) Mayiladuthurai, for his

association with the Doctoral committee and also for his valuable advice at different

stage of the entire study.

My sense of gratitude to Dr. S.P.DHANDAYUTHAPANI, faculty of

Management studies, Anna University of technology, Trichy, Dr. A. MOHAMED

SIDDIK, Principal, RDB COLLEGE OF Arts & Science, Papanasam for their

initiation and continuous support .

It is the time to express my sincere thanks to DR.M.MOHAMED

SADIQ, Principal, Adhi parasakthi College of Arts and Science, Kalavai District.

Dr. G. ARULSELVAN,Vice Principal, Adhiparaskthi college G.B.

Nagar kalavai.for their continuous support for the completion of this study.

It is my duty to thank, M. UMA MAGESWARI, Assistant Professor of

Management, T. RAMESH, Asst. Professor of Management studies

V. CHANDRALEKHA, Asst. Professor of Management studies Adhiparasakthi

college of Engineering, Kalavai. Asst. Professor S.LAKSHMI, HOD of Dept of

Commerce, A. SATHIYA , Asst. Professor , R. SATHIYA MURTHY, Asst.

Professor, A.UDAYA KUMAR, Asst. Professor, Department of Commerce ,and

Asst.Professor U. KANNAGAVALLI., Adhiparasakthi College, Kalavai.for their

contribution to complete of this study in time.

I am very grateful to my beloved Husband MR. S.SINGARAVELU, my

children S. SWAMINATHAN and S.SWEATHA to help me in every walk of my

life.

I convey my heartfelt thanks to my beloved aunty

Mrs. SANGARANAYAHI SWAMINATHAN and my beloved mother

MRS.SEETHALAKSHMI THANGAM for their regular support and

encouragement of my achievement.

I indebted my heart full thanks to my uncle Mr. S.SELLAPPAN,

Agriculture officer, Mr. S.SIVA GURUNATHAN , Mr. S. THANGAVELU, and

S. BALAMURUGAN to their fullest support to the completion of project work.

I extend my thanks to my brother Mr. T. KRISHNA MOHAN, Sisters

E. KUMARA DEVI , K. SINGARAVALLI ,G.ANITHAELAVARASI for their

motivation to complete this project work.

(T. SENTHIL RAJESWARI )

CONTENTS

Page

Declaration

Certificate

Acknowledgement

List of Tables

List of Figures

CHAPTER

I DESIGN AND EECUTION OF THE STUDY 1

II REVIEW OF LITERATURE 20

III PROFILE AND OPERATIVE PRODUCTION

PROCESS OF CO-OPERATIVE SILK SOCIETIES

IN KUMBAKONAM TALUK 75

IV PERFORMANCE OF CO-OPERATIVE SILK

SOCIETIES IN KUMBAKONAM TALUK 106

V SOCIO-ECONOMIC CONDITIONS AND

PERCEPTIONS OF WEAVERS ON SILK

CO-OPERATIVES 194

VI MAJOR FINDINGS, SUGGESTIONS AND 231

CONCLUSION

BIBLIOGRAPHY

QUESTIONNAI

LIST OF TABLES

S. No Title Of The Table Page. No

III. 1 Various Types Of Dyes 93

III. 2 Classification Of Natural Dyes 95

III.3 Sources Of Natural Dyes 97

IV.1 Number Of Members And Looms 107

IV.2 Sources Of Capital Of Thirubuvanam Co-Operative Silk Society 108

IV.3 Sales Of Thirubuvanam Co-Operative Silk Society 110

IV.4 Purchase Of Material Of Thirubuvanam Co-Operative Silk

Society

112

IV.5 Operational Expenditure Of Thirubuvanam Co-Operative Silk

Society

114

IV .6 Marketing Expenditure Incurred By Thirubuvanam Co-

Operative Silk Society

116

IV.7 Source Of Loan Of Thirubuvanam Co-Operative Silk Society 118

IV.8 Sources Of Capital Of Cholan Co-Operative Silk Society 120

IV.9 Sales Of Cholan Co-Operative Silk Society 122

IV.10 Cost of Raw Material Of Cholan Co-Operative Silk Society 124

IV.11 Operational expenditure of cholan co-operative silk society 126

IV.12 Marketing expenditure incurred by Cholan co-operative silk

society

128

IV.13 Outstanding loans of Cholan co-operative silk society 130

IV.14 Sources of capital of Dharasuram co-operative silk society 131

IV.15 Sales of Dharasuram co-operative silk society 133

IV.16 Dharasuram co-operative purchase of raw materials 135

S. No Title Of The Table Page. No

IV.17 Operational expenditure of Dharasuram co-operative silk society 136

IV.18 Marketing expenditure incurred by Dharasuram

co-operative silk society

139

IV.18-A Outstanding loans of Dharasuram co-operativsilk society 142

IV.19 Sources of capital of Thiruvalluvar co-operativ silk society 143

IV.20 Sales of Thiruvalluvar co-operative silk society 144

IV.21 Thiruvalluvar Co-operative Purchase of Raw Materials 147

IV.22 Operational expenditure of Thiruvalluvar co-operative silk

society

149

IV.23 Marketing expenditure incurred by Thiruvalluvar co-operative

silk society

151

IV.24 Outstanding of Thiruvalluvar co-operative silk society 153

IV.25 Sources of capital of Kalaivanar co-operative silk society 155

IV.26 Sales of kalaivanar co-operative silk society 157

IV.27 Kalaivanar co-operative purchase of raw materials 159

IV.28 Operational expenditure of Kalaivan co-operative silk society 161

IV.29 Marketing expenditure incurred by Kalaivanar

co-operative silk society

163

IV.30 Outstanding loans of kalaivanar co-operative silk society 165

IV.31 Sources of capital of super silk co-operative silk society 166

IV.32 Sales of super co-operative silk society 168

IV.33 Super silks co-operative purchase of raw materials 170

IV.34 Operational expenditure of super co-operative silk society 172

IV.35 Marketing expenditure incurred by super co-operative silk

society

174

S. No Title Of The Table Page. No

IV.36 Outstanding loans of super silk co-operative silk society 176

IV.37 Sources of capital of kamarajar co-operative silk society 177

IV.38 Sales of kamarajar co-operative silk society 179

IV.39 Kamarajar co-operative purchase of raw materials 181

IV.40 Operational expenditure of kamarajar co-operative silk society 183

IV.41 Marketing expenditure incurred by kamarajar co-operative silk

society

184

IV.42 Outstanding loans of kamarajar co-operative silk society 186

IV.43 Comparative profitability analysis of seven silk co-operative

societies in kumbakonam taluk gross profit

188

IV.44 Net profit 190

IV.45 Return on Investment of Thirubuvanam Co-Oprative Silk

Socities

192

LIST OF FIGURES

S. No Title Of The Figure Page.No

III.1 Zari plate 88

III.2 Bobbin winding 90

III.3 Warping (silk) 90

III.4 Dyeing of silk yarns 92

III.5 Shade drying of dyed silk yarns 98

III.6 Swift winding 100

III.7 Pirn winding of silk yarn 100

III.8 Saree weaving with throw – shuttle 102

III.9 Mounting of saree on beam for finishing 104

III.10 Polishing process 105

IV.1 Sources Of Capital Of Thirubuvanam Co-Operative Silk

Society

109

IV.2 Sales Of Thirubuvanam Co-Operative Silk Society 111

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QUESTIONNAIRE I

PRODUCTION AND MARKETING OF SILK TEXTILE PRODUCTS.

(Questionnaire for Co-Operative Silk Societies)

NAME OF THE SOCIETY :

Date of the registration :

Date of commencement of operation :

No. of. Members as on 1.1.2000 :

No. of. Looms held by members as on 1.1.2000. :

PURCHASE OF MATERIALS : SOURCE

Silk Yarn

Zari

Dyes

Chemicals and other materials

VARIETIES PRODUCED :

Sarees

Dhoties

Skirt bits

Other goods

COST OF PRODUCTION PER UNIT/PIECE IN RUPEES:

Yarn

Zari

Chemicals

Wages

Other Expenses

Total Cost of Production………………………………………………............

% of margin added……………………………………………………….........

Price…………………………………………………………………………...

10. Finance: (a) Owned Capital:

Year 2006 2007 2008 2009 2010 2011 2012

1. Share capital by

members

2. Share capital by

state Government

3. Reserve Funds

Total .

(b) Borrowed funds:

Year. 2006 2007 2008 2009 2010 2011 2012

1. Deposits from members

2. Cash credit from District Co-operative central Bank.

3. Reserve fund loan from Govt.

4. Reserve fund loan from D.C.C.B.

5. From any other source.

Total

Grand Total

11. SOURCES MARKETING:

Year 2006 2007 2008 2009 2010 2011 2012

1. Direct sale

2. Sales through

Exhibition

3. Sales through

commission agents

4. Co-optex

12. EXPENTIURES INCURRED FOR MARKETING:

Year 2006 2007 2008 2009 2010 2011 2012

1. Commission to

consumers

2. Commission to selling

Agents

3. Salary of sales men

4. Advertisement

Total

13. VALUE OF PRODUCTION:

Year 2006 2007 2008 2009 2010 2011 2012

1. Co-operative

Societies

2. Private silk

manufacturer

Total.

14. VALUE OF SALES: (Rs. In lakhs)

Year 2006 2007 2008 2009 2010 2011 2012

1. Direct sales

2. Sales through

Exhibition

3. Sales to commission

Agents

4. Sales to commission

Agents

6. Other Sources

15 . STOCK HELD AT THE END OF THE YEAR:

Year 2006 2007 2008 2009 2010 2011 2012

1. Co-operative Societies.

2. Private silk manufacture.

Total.

16. OPERATIONAL EXPENDITURE

YEAR. 2006 2007 2008 2009 2010 2011 2012

1. Establishment

expenses

2. Trade charges

3. Bonus to weavers

4. Interest on the

borrowings

Total

17. OPERATIONAL RESULTS.

Year 2006 2007 2008 2009 2010 2011 2012

1. G.P

2. N.P.

3. Reserve fund.

4. Dividend to

members.

18. Problems faced in

a. Purchase of Raw materials.

b. Obtaining finance.

c. Controlling cost.

d. Maintaining cost.

f. Admitting members

g. Marketing the products

h. Other problems

19. Remedial measures suggested :

20. Whether there is possibility for increasing the productivity.

21. Suggestions & Recommendations :

22. Remarks. :

**************

SCHEDULE TO WEAVERS

I Socio-Demographic Information

1. Name of the head of the family/ : Household

2. Place of Domicile Village :

3. Sex : Male/Female

4. Age (in years) :

5. Marital Status : Married / Unmarried

6. Social Class : OC / BC / SC / ST / Minority

7. Religion : Hindu / Muslim / Christian /

Others if any Specify

8. Since, how long you have been living here : (years)

9. Native Place :

8. No. of earning members in the family:

9. No. of dependents : One member/Two members/

Three members/Four members

10. Nature of house accommodation : Thatched/ Tiled/ Pucca / RCC

11. Possession of house : Owned / Rented

12. In case of owned house : i. Constructed by own Funds

[ ]

ii. Build under the scheme of

[ ] Workshed-cum- House

iii. Any other specify [ ]

13. If house is constructed under any : Rs. much amount was received scheme, how: under the scheme

14. In case of rented house, rent paid per month : Rs.

15. No. of rooms in the house :

16. Monthly expenditure of your family?

17. Monthly Average income of your family:

18. Do you have any savings :

19. Debt condition :

20. Source of borrowing :

II. Information on occupation

1. What is occupational distribution of family members :

2. Is weaving primary or secondary : a) Primary [ ] occupation b) Secondary [ ]

3. Why did you enter into weaving : a) Hereditary Occupation profession? : b) No formal education

c) No infrastructure d) Don’t know e) Others (specify)

4. No. of working days for month :

5. Are you getting full work through : Yes / No weaving throughout the year

6. If not, what is the alternative : a) Work as Agriculture Labourer

source of work? : b) Work as Construction Labourer

c) Others (specify)

7. Are the looms you are working : i. Own with are : ii. Borrowed from Master

Weaver / Society

III. Information pertains to the perception of Weavers on Co-operatives

1. What are the constraints encountered in weaving profession?

2. Have you ever underwent any discrimination?

3. Work environment and health issues:

Yes No

Work Environment is responsible for Headache

work environment cause Anxiety disorder

Work Environment caused back pain

Work Environment caused any injuries

Work environment causes skin rashes

Work Environment caused Ulcers

Work Environment caused Dust allergy problem

4. Ratings of the Co-operatives Activities

Highly satisfied Satisfied Not Satisfied

Clear Transactions

Payment in time

Cordial function

Provision of subsidies

Good Market ambience

Loan arrangements

Supply of Raw materials

Political Intervention

5. Perceptions of the respondents on the strategy to improve the financial

performance of Co-operatives

Strongly agreed A

gree

d

No

opin

ion

Disa

gree

d

Strongly Disagreed

Avoid Frequent interruption in production and Non-Submission of data to bank

Maintain regular bank accounts

Optimum utilization of capacity

Required turnover of personal

Clear outstanding payments

Maintain good relationships with weavers

Increase the technical efficiency of weavers

Enhance the operational ratios

Enhance the quality of product and services

Increases in the level of stock

6. Opinion on statement for failure of funds management of co-operatives

Strongly

agreed

Agreed No opinion

Disagreed Strongly Disagreed

Deliberate diversion of funds

Poor collections

Unplanned payments to creditors

High Inventory

Unproductive expenditure

Delay in Sanction of loans

Delay in sanction of working capital limits by bank

Delay in implementation of project

7. Suggestion to improve Co-operative silk producers

1

CHAPTER I

DESIGN AND EECUTION OF THE STUDY

INTRODUCTION

Silk is the most elegant textile in the world with unparalleled grandeur,

natural sheen, and inherent affinity for dyes, high absorbance, light weight, soft

touch and high durability and known as the “Queen of Textiles”. On the other hand,

it stands for livelihood opportunity for millions owing to high employment oriented,

low capital intensive and remunerative nature of its production. The very nature of

this industry with its rural based on-farm and off-farm activities and enormous

employment generation potential has attracted the attention of the planners and

policy makers to recognize the industry among one of the most appropriate avenues

for socio-economic development of a largely agrarian economy like India. Silk has

been intermingled with the life and culture of the Indians1. India has a rich and

complex history in silk production and its silk trade dates back to 15th century.

Sericulture industry provides employment to approximately 7.56 million persons in

rural and semi-urban areas in India2. Of these, a sizeable number of workers belong

to the economically weaker sections of society, including women. India’s traditional

and culture bound domestic market and an amazing diversity of silk garments that

1Agrawal, Y., 1999, Silk Brocades.Lustre Press, Roli Books, New Delhi 2Bhagat, S.S., 1998, Silk products of Madhya Pradesh. Indian Silk, 37(6-7): 84-86.

2

reflect geographic specificity has helped the country to achieve a leading position in

silk industry.

India has the unique distinction of being the only country producing all

the five known commercial silks namely, mulberry, tropical tasar, oak tasar, eri and

muga, of which muga with its golden yellow glitter is unique and prerogative of

India. The world’s raw silk production was about 1, 31,479 meter in 2012. China

leads the world with silk production of 1, 04,000 meter or 79.1% of the produce.

India is the second largest producer of silk in the world and has 17.5% share in

global raw silk production. All the countries except China and India have been

witnessing a declining trend in raw silk production in the last two decades. However,

it is worthwhile to note whether the increasing production encompassed the

indigenous people contribution and unleash the benefits to them, silk producing

units have been categorized into private silk producers and the co-operative silk

producers across India, the contribution of the silk producers need to be assessed in

order to map-out the contribution made by the all the segments of the silk producers,

thus, the present study would be propelled to make analysis of co-operative silk

producers to find out the contribution towards silk sarees production in the same

line. The studies also unearth the socio-economic conditions of silk weavers and

their perception on co-operatives. Thirubhuvanam silk is traditionally occupied an

important place in the silk industries and a particular segment of community largely

engaged in this activities for a long period of time, so it would be imperative to take

this silk for the study purpose in order to understand the silk production in Tamil

Nadu.

3

Production and consumption of silk

Production of raw silk in India was 23,060 meter in 2011-12, of which,

mulberry raw silk output aggregated to 18,272 meter (79.24%). The remaining 4,788

meter (20.76%) was vanyasilks. Mulberry sericulture is mainly practiced in five

states namely, Karnataka, Andhra Pradesh, West Bengal, Tamil Nadu and Jammu &

Kashmir jointly account for about 97% of the total mulberry silk production in the

country. India is the largest consumer of raw silk in the world. As the consumption

of raw silk (around 28,733 meter) exceeds the production, the additional requirement

of around 5,700 meter of silk (particularly bivoltine mulberry silk of international

quality) is imported mainly from China3.

Productivity of Silk

According to the annual report of Central silk board the area under

sericulture has increased to 1, 81,089 Ha in 2011-12 compared to 1, 70,314 Ha in

2010-11. Year-wise incremental in the mulberry area during XI Plan is marginal,

which is due to rapid urbanization in the sericulture belts, increase in input costs,

labour problems, drought in Andhra Pradesh and Karnataka, and frequent price

fluctuations. Though the area under sericulture has fallen significantly, the

productivity levels in mulberry cocoon as well as in raw silk have been steadily

improving. The main reasons behind increase in productivity are adoption of higher

leaf yielding mulberry varieties, improved silkworm hybrids and better technologies

in silkworm rearing and silk reeling.

3 Annual Report of Silk Board 2011-12, Central silk Board, Bangalore

4

Significance of Handloom silk Industry

The Handloom Industry of India is essentially a traditional one. It is also a

cottage industry in the best sense of the term, as the work is done largely in the

home of the weaver himself. The loom just like the plough symbolizes the ethos of

India. In fact, the handloom industry along with agriculture is the main stay of our

rural economy. The handloom textile is unique to mill made textiles and it has a very

good glorious heritage, over the years. Handloom goods are no longer the choice of

the poor alone, but a favourite of the elite in India and abroad. Next to agriculture

the handloom industry accounts most of rural employment and income. It meets

about a quarter of the clothing needs of the country. It is essentially a very big labour

intensive and low capital industry. Handloom assumes importance because it not

only meets clothing needs of the people, but also gives expression to Indian art and

culture, craftsmanship and heritage4. The handloom industry, the largest segment in

the unorganized sector, plays a very important role in the country’s economy. The

traditional industry, known for excellence in workmanship and value addition the

world over employs over seven million weavers and about four million looms.

About 27 per cent of the total textile production in the country comes from the

handloom sector. It is agro-based and highly labour-intensive. From very early

period, this huge cottage industry was supported by the rulers and petty kings of the

country and here lies the birth of co-operative movement of state support in its crude

form. This is evident from the fact that even in the early centuries A.D. Indian

navigators who sailed to various countries had been exporting locally produced fine

variety handloom cloths only with the strong support of their petty kings and local

4Dash S. (1995): ‘Handloom Industry in India’. Metal Publications, New Delhi.

5

rulers. The organization, production and the extensive use of handloom products

were supported by the local government for several centuries and these facts are

referred to many a time by the old writers of the early centuries. Handloom cloth is

obtained from cotton. Cotton fibers (yarn) are produced by cotton hand spinning

wheels (charkas). Afterwards, these cotton fibers are dyed and woven by a

handloom and thus handloom cloths are produced.

Historical Origin and Development of Handloom Industry

The Indian handloom textile industry has an ancient lineage and was

renowned since the Indus valley civilization of 3,000 years B.C. During the mogul

period, among cottons the muslin of Decca was the most famous. In silks, the

choppers’, bandanas and corals of murshidabad were particularly fine, and the

woolen shawls of Kashmir and Amritsar were very popular in Europe, especially

France during the mid-nineteenth century. Throughout the century the European

demand led to a phenomenal expansion of Indian trade in her cotton and silk

manufactures. In the early days of colonialism, from Clive’s victory at Plessey in

1757 to the abolition of the East India Company’s monopoly in 1813, the handicraft

industries still managed to export substantially, partly by trading with the company.

As the handloom industry is an employment oriented industry today, it provides

direct employment to about 100 lake persons for their livelihood in the country in

weaving and other connected activities of handloom5.

5A.C.K. Namibia (1996): ‘Handloom Industry in India’-APH Publishing Corporation, New Delhi.

6

Handloom Industry in India

Handloom industry is the most important and the largest one in India.

Handloom weaving is in vogue from the ancient days and there are a large number

of people who are still earning their living by it. To provide effective support and

protection to this sector, a co-ordinate national policy has been evolved by the

Government of India through which it is hoped to Amelia-rate the living standard of

the weaver. As the handloom weaver is at present poorly served in most of these

respects, a massive national Handloom Development Programmed had been

launched to ensure adequate and timely supply of yarn, dyes and chemicals at

reasonable prices to the weavers and to get rid of the fear that his product may not

be sold. In India, handloom societies are concentrated in the small segment and are

mainly concentrated in different parts of the country6. On attaining independence,

Government of India rightly recognized the important role that the industry can play

well and a number of policy measures were formulated and executed to bring the

industry on sound footing. India is an agricultural country. But, the age old

handloom industry gets the second big occupation in the decentralized sector of the

country with 3.8 million meter handlooms, with an average annual production of

2900 million metres of handloom cloth and this constitutes one third (1/3) of the

country’s total cloth production.

6Rama, Mohan Rae (1990): ‘Development of Handloom Industry’. Discovery Publishing House, New Delhi.

7

Handloom Industry in the Indian Perspective

Handloom weaving is the India’s biggest cottage and labour intensive

sector, which has been playing a very important role in the country’s economy by

forming part of India’s rich heritage and exemplifying the rich artistry of the

weavers. The artisans of India are famous for hand spinning, hand printing and

hand-dyeing. They are accustomed to the art of weaving as a hereditary occupation.

There are historical records to show that handloom fabrics of India had established

their reputation in the international market long before the historic Industrial

Revolution in the West and the Indian handloom fabrics received popular patronage

and adorned regal personages, besides having received acclaim abroad in the olden

days.7 As an economic activity, the handloom sector occupies a place second only to

agriculture in terms of employment. The sector with about 23.77 lake handlooms

provides employment to 43.31 lake persons. Of which, 77.9 per cent are women, and

28 per cent belong to scheduled castes and scheduled tribes. However, this sector is

confronted with various problems, such as, obsolete technology, unorganized

production system, low productivity, inadequate working capital, conventional

product range, and weak marketing links. Handloom sector has always been a weak

competitor against power loom and mill sectors. But the significance of handloom

industry needs to be looked and assessed from the point of view of the number of

people deriving their livelihood from this sector. Unfortunately, the Government of

India has only meted out raw deal to the handloom sector through its successive

Textile Policies.

7A.K. Mishear: ‘Social Impact of Handloom Co-operatives on Weavers in Western Orissa – An Empirical Study’ Journal of Rural Development, Vol. 13(2), 1994, pp. 259-267.

8

The Role of Co-operative Movement and the Growth of Handloom Industry

Development of the Handloom industry on co-operative lines was the

cardinal element in all the plans. Co-operation has the advantage of bringing

freedom and opportunity of people with benefits of large scale management and

organization. Co-operative societies are expected to perform functions of bulk

purchase of raw material, raise capital by the issue of shares, procure finished goods

from members and minced them on favorable terms. The first Handloom Weavers

Co-operative Society was formed in 1905 after the Co-operative Societies Act had

come into existence. From that time onwards, the number of weavers’ co-operative

societies has been increased. Co-operative of Handloom has been one of the major

strategies of the government for bringing handloom weavers to an organized forum

for production. It has been the policy of the State Government to channelize all the

government assistance to the handloom weavers through the weavers’ co-operatives.

Organization of industrial weavers’ co-operative societies has been one of the

important schemes implemented by the state government for the welfare of the loom

less weavers.

Silk Production in India

Indian ‘silk industry’ is very ancient and mainly cottage based till today,

right from cocoon (raw material) production to fabric manufacture. The term

‘industry’ has been widely defined as “manufacturing through organized activity”.

However, a look at the silk industry in India, finds it as mostly unorganized existing

in the form of a farm sector and or a cottage industry. India ranks second in respect

9

of world raw silk production8. It is this position, as one of only two major silk

producers in the world, and from its employment potential, that sericulture and silk

derive their importance in the Indian textile map. Silk as produced by cultivated silk

worm was at one time the most priced of all the textile fibers. The biggest strength

of the Indian silk industry is that India happens to be the only country in the world

which produces all the four types of silk namely, mulberry, tassar, eri and muga.

Yet, currently, India produces only 15,000 tonnes of raw silk per year against the

annual requirement of 24,000 tonnes.

India continues to be the second largest producer of silk in the world.

India has the unique distinction of being the only country producing all the five

kinds of silk like, Mulberry, Eri, Muga, Tropical Tasar and Temperate Tasar.

Sericulture is an important labour-intensive and agro-based cottage industry,

providing gainful occupation to around 7.25 million persons in rural and semi-urban

areas in India. Of these, a sizeable number of workers belong to the economically

weaker sections of society. There is substantial involvement of women in this

Industry. In India, Sericulture is mostly a village-based industry providing

employment opportunities to a large section of the population. Although Sericulture

is considered as a subsidiary occupation, technological innovation has made it

possible to take it up on an intensive scale capable of generating adequate income. It

is also capable of providing continuous income to farmers. India is the second

largest producer of silk in the world with an annual silk production of more than

21,000 meters tonness in 2011-12. Although, all the known varieties of silk, viz.,

Mulberry, Eri, Muga and Tasar are produced in India, Mulberry silk is the most

8Mishra, S.N., 1997, Silk industry of Assam. Indian Silk, 35(10): 22-26

10

popular variety. Mulberry silk alone contributes more than 80% of the Country’s silk

production. Silk and silk goods are very good foreign exchange earners. Export

potential of this sector is promising as silk production in Japan is declining and that

of China, the largest silk producer the World, it is stagnant. The present global

scenario clearly indicates the enormous opportunities for the Indian Silk Industry. In

India, because of the prevalence of favourable climatic conditions, mulberry is

cultivated mainly in five states, viz., Karnataka, Andhra Pradesh, Tamil Nadu, West

Bengal and Jammu & Kashmir. These five states collectively account for 97% of the

total area under mulberry cultivation and 95% of raw silk production in the country.

Now, as a result of growing realization, sericulture is gaining ground in non-

traditional areas too.

Silk Handloom Industries in Tamil Nadu

Tamil Nadu has weavers who have migrated from other states. Many of

these migrants are from Saurashtra and Andhrapradesh. Some of the Saurashtrians

migrated more than 700 years ago. The Tamil Nadu weavers belong to the mudaliar.

The Tamil Nadu Handloom weavers cooperative society limited popularly known as

“co-optex” was established in 1935 under Co-operative Societies Act with the main

objective of organizing and promoting the handloom industry in Tamil Nadu on a

commercial basis. In Tamil Nadu, Erode district handloom societies occupy a prince

position; particularly handloom bed sheets are most popular in the southern parts of

the country. Against this back ground, it will be worth understanding the

performance of leading handloom societies9. Tamil Nadu occupies the third position

9Reddy, S.N. and Jayaram, H., 2001, Performance of primary silk handloom weavers cooperative

11

in the country with regard to the production of handloom cloth. During the year

1989-90, the approximate production of handloom cloth by the co-operative sector is

about 136 million metres with regard to the productivity per loom, the average daily

production works out to 4.8 metres per day per loom, as against the national average

of 5.1 metres per day. There is a need to improve the productivity of the handlooms

substantially. Tamil Nadu handloom industry produces a wide range of products

meant for export mancent. Madras check lunghies, Real Madras hand kerchieves,

Kancheepuram silk sarees, terry towels, furnishing materials produced at Karur,

Chennimalai areas are the product ranges being exported from Tamil Nadu. To

increase the earning of the handloom weavers and to alleviate their poverty, the

government has set up four co-operative intensive handloom development projects

at Kancheepuram, Erode, Salem and Madurai and two export production projects at

Karur and Kurinjipadi with all essential infrastructural facilities for production of

handloom cloth. TamilNadu ranks first in the country in the achievement of the co-

operative coverage of handlooms. There are still poor loom less weavers working

under the master weavers in the private sector. Government intends providing a

package of assistance to these weavers in terms of capital assistance and state

participation in the weavers’ co-operative societies. There were 2,077 primary

weavers’ co-operative societies as on 28th February 2012.

Silk weaving in Kumbakonam Taluk

Weaving is the important occupation in the district next to agriculture.

Though weaving is undertaken as a main occupation in all parts of the district, it is

Societies in Andhra Pradesh – A financial evaluation. Indian Silk, 40(3):28-31.

12

mostly concentrated in four taluks, viz., Thanjavur , Papanasam, Kumbakonam, and

Thiruvidaimaruthur. Of these four taluks silk weaving is more popular in the last

two taluks. In the district, handloom weaving is undertaken and there is no power

loom here as in Salem and Coimbatore districts. Weaving of both cotton fabrics and

silk fabrics are undertaken in the district. But in all aspects silk weaving out-

numbers the cotton weaving in the district and this point is substantiated from the

information given by the Assistant Directorate of Handlooms and Textiles.

Research Objectives

To study the profile of the co-operative silk in Kumbakonam

Taluk

To find out the capacity utilization of silk producing units under

study

To know about the marketing strategies of co-operative silk

producers in the study area

To analyse the problems and prospects of co-operative silk

producing units under study.

Statement of the Research Problem

In spite of implementation of various development schemes to protect the

silk handloom industries , the handloom sectors did not improve as it was

envisaged. Co-operative coverage was 85 per cent out of the total products. The

inherent weaknesses of the handloom industry like weak organization, officialisation

of handloom co-operatives, inadequate credit from financial institutions, inadequate

13

and poor infrastructure have made it more vulnerable to competitions from the

organized mills and the decentralized Power looms sector. The steep increase in silk

yarn prices, heaps of unsold stock, delayed payments to primary societies by the

Apex societies and the poor marketing conditions have further deteriorated

conditions. This actually poses a real problem to the poor and deprived handloom.

Traditionally, a class of handloom weavers is working under the Master weavers’ for

daily wages. These dependent weavers do not have their own looms and are under

the clutches of Master Weavers. The first and foremost measure adopted was the

restriction of the weaving capacity in the organized Mill sector. The additional cloth

requirements were to be met mainly by the handlooms. One of the major problems

faced by the handlooms societies is the inadequate supply of yarn in hank form.

Another major problem of the handloom industry is marketing. There is no clear

mechanism to transfer market intelligence to handloom weavers. Technological

backwardness is create problem to the industry. High cost of production to this

industrial sector also leads the problems to both silk producers and the marketers..

The competition from Power looms is another serious problem afflicting the

handlooms of the different areas. Yet another weakness of handloom industry is its

unorganized character. Eventhough the handloom industry of Thanjavur District

has a long heritage, traditional value and global market changes, performance of the

co-operative system in deciding the decisive factors of the silk production in the

region, it is really a mystery to note that the real silk handloom weavers of the

district have a very low living standard. Their social and economic conditions are at

a very poor condition. Plethora of the studies on the chosen domain have

concentrated on performance of silk co-operatives, socio-economic conditions of

14

the hanloom weavers, but none of the studies have introspected strategies adopted by

the silk producing units to withstand in the changing business environment and how

the customers have perceived about the quality of the sarees produced, the present

study holistically encompassed all the issues to tried to understand the issues in

business environment along with the social dimension.

Research Problem and the Parameters to be examined

As specified in the objectives the parameters to be examined under the

research problem are;

Capacity utilization in co-operatives silk producing units

Progress and working of silk producing units and sales and the

strategy adopted

Marketing methods practiced by the units.

Socio-economic conditions of the silk weavers

The objectives set forth clearly indicate the areas of handloom silk

industries to be examined. These constitute the parameters to be examined which are

investigated through primary data obtained through personal interviews with the

study units. Statistical techniques employed for examining these parameters are

explained under the methodology aspects in the subsequent paragraph in this part of

the thesis.

15

Need of the Study

Silk Industries in India has been confronted with an increasingly

competitive environment due to: liberalization of the investment regime in the

1990s, favouring foreign direct investment at the international level, particularly in

socialistic and develop in countries; the formation of the World Trade Organizations

(WTO) in 1995,forcingits member countries (including India) to drastically scale

down quantitative and non-quantitative restrictions on imports, and domestic

economic reforms. Tamil Nadu is a urban centric industrialized state so it is

imperative to examine the performance of silk industries in Tamil Nadu in order to

understand the changing dynamics of the industrial environment and to address the

issues pertains to challenges and the attainment of the silk industries in Tamil Nadu

in the recent past. The present study concentrate on co-operative silk producing units

in order to understand the performance of the silk producing units, challenges,

production process and socio-economic conditions of the weavers, thereby address

the performance of co-operative silk producing units since co-operative activities is

the nodal agency and ideal process for equitable development.

Hypotheses

Ho: Quality and customer care factors did not influence the

consumer to prefer silk products from the co-operatives silk

producers in the study area.

Ho: There is no influence of business environment, Government

policy and the finance on the performance of the silk producing

units in the study area

16

H0: Financial distress of the co-opertaive silk producing units have

not influenced the loan availability in the study area.

Research Methodology

Sources of Data

This study is of both descriptive and explorative. The empirical data have

been collected for analyzing performance of silk producing units from co-operative

societies by conducting a survey by using an interview schedule. Primary data from

these units were collected by using a pre- tested and pre-coded schedule by personal

interview with the wearers by the researcher. Secondary data were collected from

audited balance sheets of the silk producing co-operative societies, books,

magazines, journals, records. Reports and published documents of District Industries

Centre, Tamil Nadu Industrial Investment Corporation, Department of Statistics,

Government of Tamil Nadu, Ministry of Small Scale Industries and Agro Rural

Industries, Government of India, New Delhi, silk board of India and from website.

Tools for data collection

Two different sets of interview schedules were framed, one addressed to

the officials of co-operative silk produced societies and the other addressed to the

weaver respondents. The researcher itself personally interviewed the respondent and

collected the data. This study is based on primary as well as secondary data. The

primary data were used mainly for evaluating the performance of silk producing

units in Kumbakonam taluk. The interview schedule has been structured by the

researcher and to identifying the variables to be used in the interview schedule, the

17

researcher conducted a trial interview with 10 silk weavers under co-operatives

societies . A rough draft of the interview schedule was prepared and circulated

among fellow researchers for critical evaluation. The draft was revised in little after

their comments. The revised interview schedule was prepared and given to silk

producing units for a pre-test. Their suggestions were incorporated and the final

draft is prepared.

Sampling Design

The survey method was used for the study. Kumbakonam Taluk was

purposely selected for the study as it is a prominent silk producing place in

Thanjavur district of Tamil Nadu. All the 7 co-operative societies registered with

District industrial centre were selected by using simple random sampling method. 25

respondent were selected from each society constituting a total of sample respondent

were selected.

Tools for Analysis

Appropriate statistical tools were used for analyzing the data. To measure

the growth performance, compound growth rate has been applied for each society.

To test the consistency of growth performance, the Coefficient of Variation for each

component for each society has been used. To analyze the factors influencing the

impact of financial problems and the problem faced by the silk producing units

multiple regression analysis was adopted. Analysis of Variance (ANOVA) has been

applied to study the transition occurred during the study period of the co-

18

operatives silk producers, logistic regression utilized to understand the customer

choice of silk sarees procurement.

Limitations of the Study

The following are the limitations of the study

1. The study in confined to the silk producing units located in

Kumbakonam Taluk only.

2. The period of study is restricted for a period of seven years from

2006 to 2012.

3. The primary data collected about the opinion of weaver respondents

may vary according to the situation and time.

Chapter Design

The report of the study is arranged in six chapters as follows:

Chapter I : Design and Execution of the study deals with nature, scope,

objectives, statement of the problem, Need of the study, hypothesis, methodology.

Chapter II: Review of literature pertains to Co-operative societies and

handloom ,Studies pertains to silk industries ,Studies pertains to socio-economic

conditions of Handloom weavers.

Chapter III: illustrates the profile of silk societies and the production

process of silk products have been critically examined and stemmed in the chapter.

19

Chapter IV: Illustrates the capacity utilization of the various co-operative

societies based on plant level, capital investment level, sales level and purchasing

power.

Chapter V: Analysis of the Production, sales and profitability position,

functional expenditure on various overheads and the socio-economic conditions,

problems and challenges faced by weavers associated with co-operative silk

societies in the study area.

Chapter V: Exhibits the summary and conclusion, major findings and

policy suggestions.

20

CHAPTER II

REVIEW OF LITERATURE

This chapter depicts the Literature of review pertains to many studies in

India on the silk handloom industry and its problems. Some are dealing with the

handloom industry at the all India level, but some studies are based on state or

district level. The present research study is based on the importance of the handloom

industry, employment and income potentialities, socio-economic conditions and

welfare schemes as well as the problems of the handloom industry, the studies have

been categorized into various segments viz Studies pertains to Co-operative societies

and handloom ,Studies pertains to silk industries ,Studies pertains to socio-economic

conditions of Handloom weavers.

Studies pertains to Co-operative societies and handloom

Sanjay Sinha (1989)10 examines this proposition and suggests strategies

for strengthening the contribution of this activity to rural development through silk

production. The available information on the socio-economic and related technical

issues is far from comprehensive; the author found that a more systematic approach

10Sanjay Sinha “Development Impact of Silk Production: A Wealth of Opportunities” Economic and Political Weekly, Vol. 24, No. 3 (Jan. 21, 1989), pp. 157-163

21

is required to obtain the socio-economic information necessary to determine the

developmental impact of silk production. Nevertheless, the indications are that the

present production systems produce a significant positive impact. Though technical

change cannot be postponed indefinitely, it can at least be managed in the

foreseeable future to augment the contribution of silk production to development.

The potential is enormous; more professional and commercial long- term strategies

than those employed up to now could be instrumental in realizing the wealth of

opportunities that exists.

Simon Charsley (1992)11 analyzed the existing marketing mechanism for

silk industries in India, the author stemmed with some of the important questions

such as does experience in the silk industry support Bauer's case? It does show that

the problems, to which he points, on the basis primarily of very old evidence from

other countries, remain relevant in India. His anti-intervention line is perhaps

unreasonably doctrinaire, but it usefully emphasizes that efforts to interne in

marketing and particularly to set up related markets are full of pitfalls where they are

tried. There are number of standard re ns why they are felt to be needed, and there

are a number of standard ways in which things too often go wrong. There are

questions about prides which therefore ought always to be asked when these are

being drawn up. One clearly is, whenever middlemen seem ripe for elimination,

what exactly is it that they are doing. in and for the market? It may well be a lot

more than simply buying and selling the extent that it is, alternative ways of

performing necessary functions have to be provided. But sometimes, as the success

11Simon Charsley “Developing Market Mechanisms in Indian Silk Industry” Economic and Political Weekly, Vol. 27, No. 35 (Aug. 29, 1992), pp. M117-M121

22

of cocoon marketing shows and as can be hoped for from the current policy of sup-

porting small-scale reelers by local purchase, when the questions are asked and the

costs and benefits are w1 up, the answers are not necessarily going to be against

intervention in all its forms.At the outset the author implied that middle man

intervention is very high which inhibits the benefits to the both the end.

Bhuimali Anil (2003)12 discussed rural co-operatives and their impact on

the rural economy. Author explained that the Indian farmers needed credit for

agricultural purpose which was available from the private money-lenders, but the

credit supplied by them was at a very exorbitant rate of interest. Naturally it was

beyond the reach of agriculturists. Similarly, whatever Government loan was

available that was available only at a very limited extent. In order to meet the credit

demand of the farmers at a soft rate of interest, Indian Government passed the co-

operative societies act to overcome the problem. In various countries co-operation

has been used as an institution and instrument of economic development. The author

presented three case studies to explain the activities of co-operatives societies in the

rural India and their consequent impact on the economy. First case study explained

the impact of a limited liability society, second case described the impact of an

unlimited liability society and the third presented the impact of agricultural

marketing society on rural areas of West Bengal. Author stated that co-operatives

have played a significant role not only as instrument of economic growth, but also

influencing the people towards social and economic changes by way of adopting

12Bhuimali Anil (2003), “Rural Co-operative and Economic Development”, Sarup and Sons Pub., New Delhi, 2003

23

innovation and technology. Co-operatives, in fact, help one by contribution vast

possibilities for the individuals to participate combined in the economic activities.

Seemanthini Niranjana (2004)13 tried to analyze the numerous

dimensions within the handloom sector offers insights into how to address and

understand different forms of industrial activity in the country, particularly in realms

considered as being the peripheries of a dominant industrial core, the study found

that Conventional official perception relegates handlooms to a small, niche market

(either overseas or in India), and then goes on to suggest how this niche demand

should be catered to through further design innovation and variation. Both case

studies illustrated above contest this viewpoint. While the case of Koyyalagudem's

reliance on exports shows that it creates instabilities in demand, production and

work opportunities, the case of Tenali highlights the marketing possibilities in local

contexts as well. The formation of weaver cooperatives has been seen as the most

important strategy in reviving and supporting the handloom sector. Their

functioning, however, has not been uniformly successful. This has been influenced

by a number of factors such as local elites lobbying for power, political parties

seeking to consolidate their strengths, or sheer mismanagement of the cooperatives.

Given these differences, evaluating the performance of existing weavers'

cooperatives is not an easy task.

13SeemanthiniNiranjana “Thinking with Handlooms: Perspectives from Andhra Pradesh” Economic and Political Weekly, Vol. 39, No. 6 (Feb. 7-13, 2004), pp. 553-563

24

Dharmaraju P.(2006)14 made an attempt to explore the experiences of

weavers in handloom co-operatives and their marketing strategies, the author taken

up two handloom societies for the study purpose vizAngra and Koyyalgudem, the

study revealed that both the societies appear to have utilized existing marketing

channels, but exposure to design intervention and new markets seem sporadic.

Unlike Angara which banks on traditional product like sarees, Koyyalagudem,

perhaps due to its proximity to urban centres, specializes in dress materials. To

succeed in this, it is essential to have one's ear close to the ground - but this market

feedback is incidental in the case of Koyyalagudem. There are no institutional

channels by which this information transfer and market exploration could happen

effectively. During the picket boom and years of good export business,

Koyyalagudem used to attract a number of migrant weavers from other places in AP.

This has changed in the recent past, mainly due to a fall in exports. Since 1995,

export orders have not been as forthcoming as in the past. Several reasons have been

cited for this trend, some of which are: the ban on chemical dyes by European

markets. ( Azo-free dyes are used instead, but this renders the product expensive);

the drastic increase in prices of yarn and dyes. To cut costs, inferior materials are

used, and weavers lose out in the world market. The experience of Koyyalagudem

shows that though orienting production to exports may be beneficial in the short run,

a long-term reliance on exports of cloth alone creates instabilities in demand,

production and livelihoods that cannot be absorbed by the handloom sector. In

addition, it is also important for cooperatives to explore domestic markets much

more proactive. 14Dharmaraju P. “Marketing in Handloom Cooperatives” Economic and Political Weekly, Vol. 41, No. 31 Aug. .2006 P.3385-3387

25

Prabha and Kumara Kannan(2011)15 examined the consumer

behaviors and preferences towards different kinds of extensions in fast fashion

brands (FFBs). The major objectives are i) to identify the major attributes of a retail

brand recognized by the customers. ii) to examine whether the people’s trust on a

retail brand leads to their commitment and iii) How far the personality of the

customer soars the retail brand’s trust. The research used here is descriptive

research. The Secondary research was exploratory in nature and the various models

involved in the Brand Extension process were investigated. The Primary research

done was conclusive in nature and involved a pilot survey to check the

appropriateness of the questionnaire and determine the sample size (300) of the final

research. This study is an attempt to enhance the brand extensions based on the

customer’s personality. If the entire hypotheses are accepted, it implies the strength

of retail brand, its trust and commitment over extending through their own brands. It

also studies the risk of this kind of extension over established retail brand trust. The

consumer prefers this retail shop for the superior customer service and more

collections and variety of brands. At the same time customer have less awareness of

the own retail brand. Hence proper advertisements have to be given to bring out their

own retail brands. Even peoples personality plays an important role in preferring the

brand. Thus this study discloses the personality of the consumer having influence

over their buying behavior.

15Prabha and Kumara Kannan “An empirical study on Retail branding and brand extension strategies in the Chennai Silks,Tamil Nadu” IJEMR – December 2011-Vol 1 Issue 7 - Online - ISSN 2249 – 2585 - Print - ISSN 2249 – 8672

26

Studies pertains to handloom silk industries

Kapoor (1979)16 made an attempt to synthesis the historical significance

of silk industries in India, and role and importance of the silk industries embedded

with the life of the people in the earlier period, The author explains the past glory of

silk industry in India. He holds that the Indian silk with its artistic value has an

international market and has earned the valuable foreign exchange. He suggested

increasing the silk production, and exploring the possibilities of enhancing the silk

export.

Ghosh (1984)17 in his study on “Bengal handloom industry” mentioned

that Bengal weavers were continuously trying to maintain and upgrade their

traditional handloom products. This attempt was inspite of their limitations to obtain

superfine quality yarn, poor marketing facilities and weak financial status. Non-

availability and untimely supply of raw materials especially silk, hike in prices,

inadequate finance were the problems faced by Varanasi silk weavers. The

researcher also found another weaker link i.e. the dyeing and processing sector

connected to weaving unit. Lack of proper marketing system and changing fashion

trends were challenging for the weavers who were away from advanced technology,

and also found that the hike in prices of filature, charka silk and zari, inferior quality

of both types of silks, untimely supply of raw material, scarcity of zari and

marketing were the common problems faced by the weavers community

16Kapoor- Heritage of Indian silk (1979). 17Ghosh, T.K., 1984, Bengal handloom industry. Tex. Trends, 26: 41-47

27

NaganC.Das (1984)18 made a diachronic description of silk industries in

India, the author highlighted the traditional heritage associated with silk products

and importance of silk products in the life style of the people since the earlier period,

The author makes a brief review of history of the silk industry in India. According

the silk fabrics formed a major portion of handloom sectors export to foreign

countries especially E.E.C. and North America. He makes a comparison of the

marketing aspects of cotton fabrics with that of silk fabrics at the national level.

Paulraj (1984)19examined the ammapattei silk handloom weavers in

Tamil Nadu in order to understand the attainments and challenges of the co-

operatives and its impact on the development of the weavers associated with it. The

researcher advocates the discontinuation of rebate system. Instead of the members of

silk societies may be supplied with necessary raw materials regularly through the co-

operative silk societies . The rebate amounts should be reimbursed by the

Governments without undue delay, the working capital of the society is reduced and

the production and employment in the subsequent year is affected.

Chidambaram (1985)20 made an attempt to find out the production and

marketing constrains and challenges in Tamil Nadu, In his study the researcher

makes a scientific classification of silk societies in Tamil Nadu into three – large

,medium, small. He points out the major problems in the production and marketing

of silk societies face many problems in marketing the silk products. He suggests the 18NaganC.Das-Indian Heritage (1984) 19Paulraj – An Economic Analysis of the Ammapet Silk Hand loom weavers Co-operative Society Ltd. A Study with special reference in Amapet in Thanjavur District.1984. 20Chidambaram – production and marketing problems of silk industry in Tamil Nadu. [1985].

28

extention of special rebate scheme for longer period in the case of medium and small

silk societies. He evaluates the operational efficiency of the Silk Co-operative

societies by measuring the profitability of the society.

Ramana (1987)21made an attempt to explore the correlation between silk

industries and economic development, the author systematically made an empirical

analysis and revealed that silk industries are positively influence the economic

development in India through exports and also fulfill the domestic demand or the

same, He concludes that if proper marketing channel is available . Silk industry is

one of the highly profitable industry in India.

Elangovan (1988)22examine the Thirubuvanam silk handloom weavers

co-operatives in order to asses the production and sales of the societies, In his study

the researcher attempted to present an overall view of working condition of the

Thirubuvanam silk society. As a case study it covers the aspects of procurement of

raw –materials, production, marketing, pricing policy etc., The marketing function,

is one of the many aspects of the society studied. He strongly advocates the

continuous of the rebate on sales for the silk societies.

Solaiappan (1988)23depicted the comprehensive description of the

working of silk Industry in Co-operative and private sectors in Thanjavur District

in general. A comparative study of function of production and marketing of silk 21Ramana, “Economics of sericulture and silk Industry in India”. Deep &Deep Publication New Delhi., 1987, p.1. 22Elangovan ,R., in his study on the Thirubuvanam Silk Handloom Weavers’Co – operative production and sales society Ltd. In Thanjavur District . (1988.) 23Solaiappan – Production and Marketing of Silk Textiles Products, - A study with special reference to Thanjavur District, (1988).

29

textile products in both each these sectors is made tofindout the operational

efficiency of each sector . The problems faced by this industry in general and by the

silk weavers societies and private manufactures are discussed individually and

remedial measures to overcome the problems are given. Inshort, this study is the

most comprehensive and systematic study available at present on silk industry in

Thanjavur District.

Arunachalam (1989)24 made an analysis of handloom silk industries in

Tamil Nadu, the author made an attempt to highlight the problems pertains to

production and marketing of silk products in Tamil Nadu, It is comprehensive study

on the problems of marketing of silk cloth produced by both co-operative silk

societies and private masters’ weavers. One of the important findings of the study is

that the marketing channels adopted by co-operatives as well as the private silk

manufactures influence the operational efficiency and possibility of the silk industry

in Tamil Nadu.

Govindan Nair (1993)25focused its attention of the co – operation of both cotton

handloom industry and silk handloom industry in India . It is observed that

although silk had a wide variety of uses its importance in World Textiles has been

insignificant. i.e., only 0.17 percent. The study revealed that handloom exports had

been growing at the of around 70 percent in 1991 – 92 which was attributable to the

devaluation of Indian Rupee. The export earnings can further be increased by

24Arunachalam--- Handloom Silk Industry in TamilNad, A Study of problems relatring to production and marketing. (Ph.D Thesis submitted to University of Madras). 1989. 25Govindan Nair – Cotton Handloom Exports I n 1992 – 93 --- A Review – 1993.

30

diversification of the exports to many countries of the world as suggested by the

study.

Pathak et al. (1993)26 in the survey on “Varanasi silk industry” found

that, in Varanasi, silk weavers were generally known as ‘julahas’. In general, all

communities were involved but share of Muslims (Ansaris) were prominently high.

Silk weavers constitute 69.2% of the population of weavers in the state. The silk

industry was running by three levels of weavers; small independent weavers, master

weavers and wage weavers of cooperative societies further the study revealed that

the weavers are mostly from Mudaliar community and weaving was their traditional

art. The mater weaver was an entrepreneur, who owned a number of looms

employing weavers on wage contracts and spent long hours in dexterous labour.

Most of the weavers were poor with merge means of subsistence and therefore were

forced to take loans from master weavers. The wage weavers were controlled by the

master weavers and exploited both economically and socially.

Nadigar et al. (1995)27 reported that, the Kancheepuram silk sarees are

mainly used for wedding purpose. The local market is mainly confined to Southern

states of Andhra Pradesh, Karnataka and Tamil Nadu. Beside to some extent it used

to be sent to Delhi and Bombay. About 50 per cent of silk sarees were marketed in

local Co-operative societies, in turn co-opetex purchased from co-operative societies

and market at national level. Most of the progressive master weavers market the

26Pathak, S., Sambhulingappa, Nagabhushanaiah, Y.N. and Nadigar G.S., 1993, Varanasi silk industry - A survey. Indian Silk, 31(12): 6-10. 27Nadigar, G.S., Shmbhulingappa, H.H. and Krishnamurthy, B.T., 1995, Marvelous Kancheepuramsarees. Indian Silk, 35(8): 19-22.

31

saree through retailers further the study indicated that A blend of tradition and

modernity” and reported that these sarees are expensive and mainly used for

exclusive occasions like wedding and social rituals. The price ranged from Rs.1500-

2800 depending on the variety. It enjoyed a sound domestic market in the Southern

state of the country mainly through retail outlets. Limited quantities do travels to

overseas like New Work (USA) and Singapore.

Kannaghi (1995)28 concentrated on marketing of silk sarees by the

Thirubuvanam Silk Handloom Weaver,s Coperative production and sales society

Ltd. In Thanjavur District has held competition from private silk producers of silk

because of new varities and design at chief prices, problems in procuring Zari,

absence of credit sales, lack of sales complexes and branches in many places to be

responsible for slower rate of growth. Its further observes that sales through Co –

optex have increased from Rs. 16.81 lakhs in 1987-88 to Rs. 119.04 Lakhs (increase

of about 10 times. As for channels, direct sales to be of the most important channel

of marketing available to the society.

Jacob (1996)29 carried out a study on “Grandeur of Kancheepuram” and

reported that the Kancheepuram silk sarees are heavy in nature and woven with

charka raw silk. The 16/18 denier silk is generally used. While 13/15 denier raw silk

is preferred for zari work. Warp yarns of 18 tpi and weft of 8 tpi of fine, medium

and coarse charka silk is employed. Generally 2 ply yarns are used for body and 3

ply to 4 ply for border on both sides and pallu. Kancheepuramsarees are generally 28Kannaghi – Marketing of Silk sarees by the Thirubuvanam Silk Handloom the weavers ‘ co-operative production and sale society Limited. December 1995 29Jacob, M., 1996, Grandeur of Kancheepuram. The Indian Tex. J., 106(1): 52-55

32

weft prominent. Sarees have earned a name for their durability, thickness, quality,

drapes and low creasing tendency because of its typical fabric sett. The weaving of

Kumbhokonamsarees is a slow process because of its intricacies and elaborate

designs. The weaving is done on frame looms with jacquard for border and extra

warp designs. Commonly 2 ply filature warp of 18 tpi and denier 20/22, 20/24,

16/18 and 28/32 are employed as warp, while untwisted charka silk of 2 ply to 3 ply

or even 4 ply are used as weft. Two threads gold zari is used for warp and 3 or 4 for

weft. Reed is made of bamboo wire with reed count for body as 90-96s and border

70-90s, the study further indicated that blend of tradition and modernity”. Silk saree,

furnishing fabric, dhoti, turban, silk odhani and brocade fabric for dress material

were the main products of Banaras silk industry. Silk and/or zari used for extra weft

designs. The silk saree weaving involved skill and took lots of time because of its

elaborate intricate designs. Two weavers worked together for weaving one brocade

saree.

Munikrishnappa et al. (1996)30 conducted a study on “Silk fabric

marketing”. The findings of the study revealed that silk fabrics are marketed through

government and private houses in Mysore city. Price is the vital element in the

marketing philosophy, which is themost advantageous in terms of profit and volume

of sales. The analysis made with respect to pricing system followed in all silk

showrooms, revealed that all showrooms followed fixed price system. In

Government showrooms, the price is fixed by the respective head offices where in

private showrooms the price is fixed depending upon the profit margin expected,

30Munikrishnappa, H.M., Madhavarao, Y.R. and Mallikarjuna, B.M., 1996, Silk fabric marketing.The Indian Tex. J., 106(10): 48-49.

33

prevailing market demand, consumption and some time purchasing power of the

customers and further the study exemplified that weavers sold the goods to master

weavers followed by cooperative societies and relatively very few marketed either to

wholesalers or directly to the consumers

Mamatha (1997)31 in a study on “Socio-economic status of handloom

weavers and impact of weaving on their livelihood” concluded that 61 per cent of

weavers belonged to middle adulthood (41-60 years). More than 50 per cent of the

weavers were illiterates and had medium family size. Majority of the weavers

belonged to nuclear type family and middle income group. Women constituted 80

per cent of weavers in Assam. They were involved in silk weaving products like

mekhla, chadar, saree, riha and shirtings. On an average, about 24 mekhlas or 12

chadar or 6 sarees were woven on one loom per month and the weavers earned about

Rs.1200/- as piece wages further the study indicated that The traditional weavers

who produced Chanderi saree were Momin, Julah and Kori. However, in the recent

years, even Dhobi, Teli, Chamar, Yadav, Brahmins and Jains also have taken

weaving as profession. Weaving is done by men while reeling and spinning of yarn

is done by women.

Tondon (1997)32 highlighted that silk sarees are famous for their

exquisite beauty, splendid and ethnic designs. The marketing of these silk saree is as

complex and intricate as that of its production. The article deals with ‘Satti’- the

31Mamatha, A., 1997, Socio-economic status of handloom weavers and impact of weaving on their livelihood. M.H.Sc. Thesis, Univ. Agric. Sci., Dharwad 32Tandon, P., 1997, Marketing of Banarasi silk goods. Indian Silk, 35(10): 17.

34

traditional pattern and practice of buying and selling continuously is the backbone of

the merchandising silk sarees. Dharmavaramsarees are mainly used for special

occasions like wedding and festivals. These sarees sell like hot cake and are in great

demand all over Southern India, Tamil Nadu being the major market and the study

further revealed that majority of the silk weavers sold their products in local market.

About 20 per cent weavers sold their products in the state show rooms and only 8

per cent weaver to the neighboring states. Maximum number of weavers sold their

sarees during special occasions.

Muralidharan and Shanmugasundran (1999)33conducted a study on

“Dyeing of silk with acid dye involving Ammonium persulphate / Thio-urea Redox

system”. It was found that better dye uptake results could be achieved by using

Ammonium persulphate / Thiourea redox system during dyeing of silk with acid dye

than without it. The concentration of the redox system influenced the dye uptake.

Maximum dye uptake was observed at a concentration of 0.015 ml / litre redox

system; beyond which the dye uptake decreased with increase in redox system

concentration. The study further indicated that the use of redox system improved the

dye uptake and fastness properties of the dyed material. Maximum dye uptake was

observed at a concentration of 0.015 ml/redox system, beyond which the dye uptake

decreased with increase in the concentration of redox systems.

33Murlidharan, B. and Shanmugasundharan, M., 1999, A study on redox system assisted dyeing of silk with kemacid yellow-2G. The Tex. Ind. Trade J., 37(3-4): 107-109

35

Kannan Nair (2001)34 made a study on export performance of

Co–op Tex International have found that France accounted for the highest of total

European sales, followed by Netherland, Sweden, and Belgium. The major items

exported were table cloths, Napkins, Kitchen towels and tea towels. During 1996-97

it has exported handloom products worth Rs.362.24 lakhs. The authors have

recommended maintenance of agro free and eco-friendly dyeing in the export of

handloom products. Participation in and conduct of trade fairs inside the country and

abroad for exhibiting our innovative handloom products, exploring new export

market and undertaking detailed market research for improving export sales.

Kashi Ram (2001)35 insisted the need to concentrate on innovative

products, Keeping in mind the changes in fashion, colours, and designs in overseas

market. He further observed that in addition to the launch of Rs.25,000 crore

Technology Upgraditation Funds Scheme, a Comprehensive scheme for the

handloom sector under the Deen Dayal Hath Kargahprotsahan Yojana scheme has

been launched for taking care of the entire gamut of activities such as product

development, infrastructure support, institutional support, training to weavers,

supply of equipments and marketing support

Abdul Aziz and Hanummappa –H.G (2003)36examined the problems

and prospective of silk industries in India, The author identify the major problems of

34Kannan Nair , “Export performance of Co – optex International a study. “ TamilNadu Co-operation, November 2001. 35Kashi Ram Rana, in an address at the export Award function organized by the Handloom Export Promotion Council, Textile Magazine , March, 2001 36Abdul Aziz and Hanummappa –H.G. - “Silk Industry – problems and projects” 2003

36

silk industry as shortage of raw silk, high cost of Zari, and lack of goods marketing

policy on the part of silk societies. They strongly advocate the extension of the

rebate system for a longer period. They conclude that through a scientific

advertisement campaign in the international market silk export can be enhanced.

B. Bowonder, J.V. Sailesh (2005)37 examined the usage of ICT in silk

industries at Kancheepuram, the study highlighted that he silk industry in

Kancheepuram is one of the fastest growing industries in India. Thestudy found that

currently more than 30,000 weavers working for saree making. The industry had to

compete with the synthetic fibre industry in many aspects. One of the major

drawbacks of the silk industry in Kancheepuram was the lack of support from

technology. The industry was on the brink of extinction due to the obsolescence of

the designs and design making procedures. This is because design adds splendour to

a saree and forms an integral part of its exquisiteness. A recent development in the

designing field is the introduction of computerised Jacquard borders in the

Kancheepuram silk saree. The use of information and communications technology

(ICT) has not only helped in creating new and complex designs but has also reduced

the time involved in the process. There has been an increase in the exports. The

acceptance of these silk sarees by the consumers has also increased with the

automation of the designing process. Visualisation of saree designs ahead of its

production and the ability to create new colour combinations at the click of a mouse

has increased the flexibility and reduced the time for realising new designs. Though

the materials and the techniques are changing with the market demand, the motifs

37B. Bowonder, J.V. Sailesh “ICT for the renewal of a traditional industry: a case study of Kancheepuram silk sarees” Volume 6, Number 3-5/2005

37

are still conventional in accordance with the customs and traditions of the

Kancheepuram saree. The silk industry in Kancheepuram has been transformed into

a high growth industry by the opening up of new avenues for the traditional weavers.

Subbaraj, Dr.B.and Joseph Nelson (2004)38 made an empirical analysis

on the product strategies of handloom weavers’ co-operative societies made for the

period from 1992 to 1993 – 2001 to 2002 in Dindugal District, Tamil Nadu have

observed that the PWCSs under study have simply adaptive the design as specified

in the production orders of the co-optex and the initiative and the efforts of the

PWCSs on design developments to be very little. The study further discloses another

important finding that weavers tend to resist change in the production of certain

fabrics in which they lack skill although the fabrics have ready acceptance in the

market. The reason adduced by them is that they are unable to bear the cost of

change over from one design to another. They adovacte adoption of modern

marketing strategies in tune with market changes

Chakraborthy (2005)39 carried out study on “Effects of degumming and

bleaching”. The study revealed that, degumming with soap is best indeed; strength,

crease recovery and other properties are excellent. Feel of degummed sample is

superior because a negligible part of soap retained by the fiber, which provides

suppleness. However, to reduce the 9 cost, soap can be partially eliminated by

introducing sodium carbonate (Na2CO3). Degumming may be done using alkaline

38Subbaraj, Dr.B.and Joseph Nelson, “An empirical enquiry, Indian Co-operative review, Jan 2004, pp 166-172 39Chakraborty, J.N., Gupta, R., Rani, V. and Das, M., 2005, Chemical processing of silk. The Indian Tex. J., 116(3): 39-51.

38

non-ionic detergent solution for further reduction in the cost of degumming.

Bleaching, if required can be carried out by hydrogen peroxide/ammonia

(H2O2/NH3) to improve whiteness as well as other post-degumming properties. The

degumming with 25 per cent Marscicelles soap for 90 minutes at boil lead to a

weight loss of 20.5 per cent, the study further indicated that the The enzyme

treatment was carried out relatively at a lower temperature and therefore was more

economical than the conventional process. Processing of silk with enzyme under the

above conditions was likely to retain the luster and softness of silk. Thus,

considering the weight loss and properties of silk, fungal protease could be used as

an effective degumming agent.

Prem Kumar and M. Sadika Sultana (2010)40primarily aimed at

understanding the local market and secondly to develop a marketing strategy for

Handloom exporters in Puducherry. The respondents were customers & exporters in

Puducherry state. The data collection was carried out for a period of two months.

The sample size of retail customers and exporters were 80 & 9 respectively. Statistic

tools such as simple percentage, chi-square analysis, and time series were employed.

The study revealed that number of the exporters depends upon domestic market.

Retailing was found to be the best way to promote their products in domestic

market. It also revealed that domestic market occupies 30% of total business and a

number of exporters are dependent on domestic market in this financial downturn.

Based upon the results a few strategies were suggested to improve the sales of

handloom products. 40Prem Kumar and M. Sadika Sultana “STRATEGIES TO IMPROVE SALES OF HANDLOOM PRODUCTS WITH SPECIAL REFERENCE TO PONDICHERRY” TECNIA Journal of Management Studies, Vol. 4, No. 2, October 2009 – March 2010

39

Venkatesh Kumar R., SeemaChauhan (2010)41 examined the

participation of rural women in rural industries, empirical studies become

imperative. Withstanding all social and cultural suppressions, a rural woman in India

shares abundant responsibilities and performs a wide spectrum of duties in running

the family, maintaining the household, attending farm labour, tenting domestic

animals and extending a helping hand in rural artisanship and handicraft, relatively

high profitability of sericulture, its potential in generating additional employment,

etc. are widely acknowledged, it is also necessary to highlight the enormous

promises that sericulture holds for women’s development. Except for dairying, there

is probably no other off-farm activity which would promise as great a scope for

women’s development as sericulture, the study also found that Among different

components of sericulture i.e., from soil to silk, approximately 50-60 per cent of

different activities like mulberry cultivation, silkworm rearing, and reeling, twisting,

weaving and printing involvement of women need to be strengthened and

encouraged. Not only because women have have more than 60 had per cent of the

labour forced in sericulture, but also because sericulture offers a plethora of

opportunities for improving the social status of women.

Kuldeep Singh and Monica Bansal (2012)42analyzed the handloom

industries in India, the study highlighted that the handloom industry has developed a

lot over a period of time. It is spread throughout the country. Since most of the

handloom units are run either as sole-proprietors or on partnership basis and the 41Venkatesh Kumar R., SeemaChauhan, “Women Empowerment in Sericulture: A Current Scenario in Rural India” ASIA-PACIFIC JOURNAL OF RURAL DEVELOPMENT Volume XX July 2010 42Kuldeep Singh and Monica Bansal “AN ANALYTICAL STUDY OF HANDLOOM INDUSTRY IN INDIA” Volume 1, Issue 12(December 2012)

40

owners lack the needed professional outlook in the overall handing of their units,

many of them are not even aware of the modern techniques of marketing such as

product development brand promotion, packing, advertising market, surveys and

demand forecasts. To maximize their sales volume, it has become very important to

know how one can get maximum result/response by using different marketing

strategies. For increasing the export, to provide satisfaction to customers there is

need of the study of marketing practices.

Surjit Kumar Kar, (2012)43 Undertaken a case study of Sambalpuri

Bastralaya Handloom Co-operative Society Limited (SBHCSL), or “Bastralaya”, is

a rural community-based cooperative enterprise in the Western province of state

Odisha in India the purpose of this paper is to explain traditional knowledge

management process of the community, total of 40 respondents from among

enterprise employees, members of weaving and sales branches, members of

government/ non-government agencies were interviewed/ observed. A qualitative

research method called “narrative enquiry” was used to restory and interpret

respondents' data and stories gathered from the field study. Analysis of documents

was also a method used, the study found that for management of knowledge

processes, Bastralaya focuses on creating members' skills and knowledge, i.e.

creation of contextual skills and knowledge, in addition to existing generic tacit

knowledge; building members' competence and capturing new knowledge;

crystallizing new knowledge for customer-focused design and organizational 43Surjit Kumar Kar, (2012) "Knowledge process of rural handloom community enterprise: A narrative study of SambalpuriBastralaya in India", Society and Business Review, Vol. 7 Iss: 2, pp.114 – 133

41

learning; and finally, knowledge preservation and internalization. Community

weavers inherit traditional weaving knowledge across generations and learn

informally through interaction, observation, socialization, co-operation and

apprenticeships in the natural settings of the co-operative enterprise system

Bandana Mahan (2012)44made anattempt to introduce the silk industry

of Assam and its relation to the tourism sector. Problems related to the production,

spinning, weaving, selling and focusing of the products, economic upliftment,

modernization of the products, government and other organization efforts in this

connection is also mentioned in the study. The study is based on primary and

secondary data collection; the author found that various government programmes

provide avenues for the quality fabrics, modernization of loom, and motivation of

weavers for taking up the industry as commercial lines, intention of training

facilities to artisans etc. Government of India has initiated several development

measures through Central Silk Board to give impetus to the growth and development

of silk industries. The Central Silk Board has put a lot of efforts to promote muga

industry in the north- eastern region. Setting up of a Regional Muga Research

Station in Mirza (Assam) is a major step in this direction. The Central Silk Board

also set up a Muga Raw Material Bank at Sibsagarh with sub- depot at Dhakuakhana

in upper Assam in the year 1981, to give necessary price support to the commercial

muga cocoon producers. Tourists always attracts to the original object. These

societies can provide the silk items in a reasonable price. Government may arrange

some package tour to see the silk producing process in the rural areas. Extends to the

reeling, spinning and weaving centers too. To promote and sale of the silk of Assam

44

42

a web page can be set up also, because, abundance of local talents can come up with

many more ideas. Thus, the culture will be diversified and standardized. Then the

traditional silk industry can be metamorphosed into modern industry, what is

necessary to courage and enterprise, imagination and guidance.

G. Savithri, P. Sujathamma& CH. Ramanamma (2013)45 illustrated

that the Textile industry is a very important component of India s economy, and silk

forms a small, yet important part of it because it is a high value fibre. The size of the

silk industry in India presently, is about US $ 2.75 billion. Sericulture is spread all

over India, while it has a long standing tradition in states such as Karnataka, Andhra

Pradesh, Tamil Nadu, West Bengal and Jammu & Kashmir. Silk the very name itself

evokes delicate feelings. Silk is the most elegant textile in the world with

unparalleled grandeur, natural sheen and inherent affinity for dyes, high absorbance,

light weight, soft touch and high durability and is known as the queen of textile in

the world ever. Silk has a sacred place in the cultural heritage of Indians and

intermingled with the life and culture of the Indians; which no other country can

share. Silk saree is an important bridal wear while the traditional practice of wearing

silk clothing on all auspicious days has been the strength of the Indian silk in the

domestic market. No other fabric has fascinated man so continuously over millennia

as silk. Till today, no other fabric can match it in luster and elegance Silk has been

intermingled with the life and culture of the Indians. Though India is producing all

the varieties of silk garments i.e., dress materials, scarves/stoles, readymade

garments, etc., the silk sarees are unique. The saree is almost synonymous with the 45G. Savithri, P. Sujathamma& CH. Ramanamma “GLORY OF INDIAN TRADITIONAL SILK SAREES” International Journal of Textile and Fashion Technology (IJTFT), 3(2), 61 – 68. 2013

43

word silk. It is the traditional costume of Indian woman since time immemorial. The

silk sarees of India are among the living examples of the excellent craftsmanship of

the weavers of the country. The artistic and aesthetic sense of Indian weavers is not

content with striking colours they choose for the fabrics, but lies in their mastery

over the creation of floral designs, beautiful textures, fine geometry and the

durability of such work. The weaver not only weaves with yarn but with intense

feeling and emotion. Indian handloom silk sarees known for their unique features

like beautiful colour combinations, intricate designs and wonderful motifs, tops the

demand of the domestic market. In India, there are a number of silk weaving centers

spread all over the country, known for their distinct and typical style and products.

South India is the leading silk producing area of the country also known for its

famous silk weaving enclaves like Kancheepuram, Dharmavaram, Arni,

Pochampalli, Gadwal etc. The beauty of the silk is the key to having wonderful silk

sarees. Hence the paper made an attempt to enlighten the world famous Indian

traditional handloom silk sarees.

Studies pertains to socio-economic conditions of Handloom weavers

John D.K.Sunder Singh (1981)46examined the conditions of handloom

industries in Madurai, the author recalled the traditional significance of the silk

products in Madurai in earlier period of time, It is an exhaustive study of the

Handloom industry in southern parts of Tamilnadu in general and Madurai city in

particular. It is a pioneering work of silk industry at a city level. The author is of

opinion that through a better marketing strategy the handloom industries would

46John D.K.Sunder Singh- The Handloom Industry in Madurai City. (1981)

44

enrich its potentiality and unleash the number of benefits to the consumers as well as

the weavers who have been engaging in it.

Namasivayam (1989)47 made an attempt to analyze operational

efficiency of the handloom weavers of co-operatives in Salem district, 20 handloom

co-operatives societies have taken up for the study purpose, and the survey revealed

that Silk Handloom Societies were successful in marketing their products when

compared to cotton handloom societies of the District. The rebate scheme played a

vital role for the success of the handloom weaver co-operatives. The study suggests

more liberal rebate scheme than the one in operation for the betterment of the

handloom silk weavers in the study area.

K. Rama Mohan Raoand G. Subrahmanyam (1995)48 analyzed various

crises affecting the industry and evaluated several schemes of Central Government

provided to the sector. They found that the co-operatives could attract only 30 per

cent of the total weavers of the country and a majority of weavers were still working

under the middlemen. Inadequate or improper financial support to the co-operatives

was considered one of the main reasons for their failure. The weavers were found to

be following traditional methods of production and design due to lack of exposure,

awareness and knowledge over changing technologies. The shortages of raw

materials and marketing have been severe problems for several years to the industry

and competition over the years has increased in the textile sector particularly after

47Namasivayam – Operational Efficiency of Handloom weavers Co-operative Societies in salem District of TamilNadu(1989) 48Rama Mohan Rao K. &Subrahmanyam G, .Crisis in the Handloom Industry: Some Solutions., Kurukshetra, Vol. XLIII, No.12, September 1995, Pp. 36.38.

45

the introduction of powerlooms. They recommended that the weavers must be

oriented towards the betterment of their skills, knowledge and technology in order to

ensure better quality of life.

Satya Narayana Dash (1996)49 aimed at assessing the economies of

handloom weaving among different caste groups in order to identify the process of

decline at work and to evaluate the differential impact of competition on the

different components of handloom sector. The study found that the differences arose

primarily between handloom and non-handloom cloth because of specialization in

terms of income groups, occupational groups, yarn count categories and product

groups. The author further revealed that the handloom industry is facing the

problems of scarcity of yarn, raw material and lack of sufficient marketing facilities.

The weavers are also facing the problems of lack of proper financial facilities. The

weavers in the State of Andhra Pradesh required financial assistance from the

commercial banks but the commercial banks failed to extend their support regarding

loans and advantages. At the same time the weavers also required adequate supply

of yarn at reasonable prices.

K. Rama Mohana Rao (1997)50 made an attempt in the direction of

conducting district level studies. The main objective of the study is to measure the

impact of primary handloom weavers’ co-operative societies on the socio-economic

conditions of weavers in the Visakhapatnam district, by choosing 250 weavers who 49SatyaNarayana Dash, .Role and Working of Handloom Industry in Western Orissa. Finance India, Vol. X, No.1, March 1996, Pp. 108. 110. 50Rama MohanaRao. K., .Impact of Handloom Co-operatives on the Socio-Economic Conditions of Weavers in Visakhapatnam District., Indian Co-operative Review, Vol. XXXV, No.2, October 1997, Pp. 126.132.

46

are members of cooperative societies. The author analyzed the impact of the social

life of the weavers with the help of the factors such as improvement in social status,

better household facilities to children, ability to spend on family members,

entertainment, confidence in future and participation in local associations. He

suggested that the Government should review the functioning of various primary

weavers. co-operative societies to find out the real problems and take appropriate

measures to strengthen and develop the co-operatives in order to direct them to play

a key role in the development of weaving community. The major problems facing

the industry such as marketing, finance and supply of yarn were highlighted. In

addition, the study also evaluated the efficacy of various policies adopted by the

Government for the development of the handloom industry.

Venugopal Rao and Chandrasekhar (1998)51 made an attempt to

identify the problems faced by handloom weavers and examine the various schemes

designed for the promotion and development of the handloom sector such as yarn

supply, production of cloth in handloom sector at reasonable prices, marketing

assistance, welfare of weavers, research and development, publicity and exhibition,

enforcement of Handloom Reservation Act, technical and design support through

Weavers Service Centres, special package schemes for SC/ST weavers, area based

handloom development projects and processing facilities. The authors found that in

spite of the implementation of developmental and welfare schemes, the economic

conditions of handloom weavers did not improve and the co-operative coverage has

met with only a limited success. Weak organizational functions of co-operatives, 51VenugopalRao K. and Chandrasekhar M., .Problems of Handloom Industry., Kurukshetra, Vol. XLVI, No.6, March 1998, Pp. 24.26.

47

inadequate credit from financial institutions, inadequate marketing infrastructure,

steep increase in yarn prices, huge build-up of unsold stock and delayed payments to

primary societies by the Apex Society, competition from the organized mills and

decentralized powerlooms, etc. further deteriorated the weavers conditions. They

suggested that the Indian handloom products have the potential to attract foreign

buyers, if the industry adheres to the quality standards and innovations in the

designing of products.

Kanakalatha Mukund and Syamasundari (1999)52 carried out study to

examine the functioning of weavers. Co-operatives and analyse the problems of the

co-operatives both of internal management and of the external policy regimes. Their

study related to four co-operative societies, viz., Polavaram Co-operative Society of

Krishna district, Venkateswara Cooperative Society in Chirala of Prakasam district,

Yemmiganur Co-operative Society of Kurnool district and Koyyalagudem Co-

operative Society of Nalgonda district. The authors found that the

PolavaramSociety.s price structure was unable to meet its production costs and the

society did not have surplus funds for providing advances to the working weavers

and that this society was split into three societies. Weavers in Chirala suffered from

low wages due to several weavers migrating in from Cuddapah and East-Godavari

districts to work as job weavers in this region and co-operatives also suffered

because of the inordinate delay in releasing the amounts sanctioned under

Government schemes. The Yemmiganur co-operative society faced a major problem

of capital being locked up by the buying of too much land for setting up sales depots 52KanakalathaMukund and Syamasundari. B., .Doomed to Fail?.Handloom Weavers. Co-operatives in Andhra Pradesh., Economic and Political Weekly, Vol. XXXIII, No.52, Dec.26, 1998-Jan.1, 1999, Pp. 3323.3332.

48

in various places. Koyyalagudem society was unable to provide adequate work to

the weavers so that the weavers preferred to work for master weavers. They

suggested that the Government should extend support to the cooperatives for

strengthening the societies.

Prabhakara Sarma & Joglekar (2002)53 examined the existing working

pattern and performance of the two weavers. co-operative societies to identify the

socio-economic conditions of weavers families in the East Godavari district of

Andhra Pradesh. The authors found that the handloom industry has been surviving

on hereditary basis and the parents/elders of the family are not promoting entry of

their children. The basic input of yarn in the handloom industry is not available

timely to the weavers and marketing of handloom cloth is one of the problems. The

co-operative societies were wholly dependent on the Apex Society for marketing of

their products and making the timely payments. At present, weaving provides

income at the subsistence level only and savings of household is almost nil or

negligible. The use of outdated looms is resulting in low production capacity of the

looms. The authors suggested that the Government should authorize district

cooperative bank to grant loans to societies for adjustment of payments and make

alternative arrangements for marketing of their finished products, instead of

depending on Apex Society. The societies should take initiatives to expand and

strengthen the co-operative coverage of weavers and improve their welfare facilities.

They identified the need to upgrade primitive looms with modern structural

53PrabhakaraSarma&Joglekar P.V.N., .Upgradation of Handloom Cooperatives., Indian Co-operative Review, Vol. XXXIX, No: 3, January 2002, Pp. 234.243.

49

materials and providing training programmes to weave new designs and to enhance

the production capacity.

Noorbhasha Abdul and Badrinarayana (2002)54 analysed the crisis in

handloom industries, the author found that the crisis in the handloom industry had its

roots in the National Textile Policy 1985 which had allowed indiscriminate growth

in the number of power looms in the name of promoting the country’s fabric out put.

In their analysis they have concluded that failure to make available supply of

sufficient yarn at reasonable prices to the most important factor hitting the handloom

sector.

P. Karunakaran and Joseph Nelson (2002)55 have analyzed factors

responsible for the present plight of Handloom weavers. In their opinion frequent

price fluctuation of yarn and its shortage accentuated the crisis in handloom

industry. The quality of Yarn from private mills is said to be much superior to that it

procured from Co-operative spinning mills.The condition that weavers should get

only from Cooperative mills have driven the weavers to the wall. The study also

points out that inadequate flow of institutional credit, lack of marketing

infrastructure, increase in cotton yarn prices, delayed payment to primary societies ,

delayed payment to primary societies by the apex society all have been responsible

for the present condition of handloom industry. The growth of powerloom industry

posed the greatest danger to handloom weavers. It has sidelined the handloom

54Noorbhasha Abdul and Badrinarayana, S.V. “Role of A.P.C.O. in the promotion of Handloom co-operatives in Andra Pradesh “ Indian Co – operative review, July 2002. PP. 52 &53 55Karunaharan ,Dr. R. and Joseph Nelson Dr. D. “Plight of Handloom Weavers Need for vibrant action”, Tamil Nadu Journal of Co-Operation , April, 2002. PP. 26---29

50

industry in many parts of Tamilnadu. The Handloom weavers in Southern part of

Tamil Nadu have switched over to beedi industry.

Horindra Gogoi and A.K. Sharma (2003)56 made a study on impact of

Weavers co- Operatives on members in employment in Assam in1988, the study

revealed that employment from weaving as well as total employment of member

house holds was significantly higher than that of non-employment of member

weaver holds thereby showing the positive impact on the earnings of member

weaver households accentuated by weavers co-operatives. The study has also

conducted that apart from high price of yarn, its irregular supply and non-availability

of new design of weaving at low costs were the major marketing problems.

Gupta, Dr. p. and Mrs. Sudha Babel (2004)57 examined the problem of

handloom weavers in Rajasthan, the study found that non-availability of new

designs and modern tools were cited as problems by weavers working for middle

men. The economic conditions of handloom weaving unit does not depend merely

on the quantity and quality from private mills is said to be much superior to that

procured from cooperative spinning mills. The condition that weavers should get

only from cooperative mills, but it also influenced by the intelligent selling of the

product to get maximum profit. Hence they stress the needed for educating and

training weavers on production cloth to suit the changing fashion.

56HorindraGogoi and Sharma ,A.K.”Impact of weavers cooperatrives on members unemployment – a case study “ Indian Cooperative Review, January 2003 . PP. 51. 57Gupta, Dr. p. and MrsSudha Babel, “Problems of handloom weavers in Rajasthan” The Textile Magazine, 2004, pp 30-32.

51

Nagarajan (2004)58 made and analysis of marketing environment and

dynamics of textiles in Chitoor district, while analyzing marketing environment of

handloom products, advocates a strong case for middlemen as otherwise the weaver

has to cater to the needs of local consumers only. It is middlemen who carry the

clothes and arrange for bulk display as a measure of widening the market. In his

opinion, “the absence of proper and sufficient facilities to safeguard the interest of

weavers leads to the entrance and existence of middlemen and their inevitable

participation in the sales of handloom products.

Sameer Sharma (2004)59examined the entrepreneur development among

weaver clusters, the study found that the weavers were formed into consortia to help

themselves by mobilizing limited resources, providing avenues for collective action

and overcoming constraints associated with size, promoting technological

development and enhancing their ability to compete in local and global markets. He

explained the three kinds of networks operating in weaver clusters of Andhra

Pradesh: Co-operative and Government Traders, Master Weavers and Non-

Government Organizations. He traced out the major problems faced by weaver

clusters of Andhra Pradesh to design gap, weak institutional linkages, technological

gap, low value addition, lack of innovation, stagnant weaver skills and inadequate

working capital, low turnover and rising inventories. Finally, he drew important

lessons from the Pochampalli experiment. First, it is possible to assist traditional

58Nagarajan “Marketing dynamics of textiles, a case for handloom products in Chitoor District” paper presented at the Nationall seminar on marketing in the New Era – Sri Venkateswara University, Andra Pradesh, 2004 59Sameer Sharma (Commissioner of Industries, Government of Andhra Pradesh), .APCO . An Experience of Restructuring an Organisation in an Emerging Market Economy., Indian Co-operative Review, Vol.42, No.1, July 2004, Pp. 26.34.

52

producers like weavers to participate in an evolving market economy. They require

.total. Assistance covering all dimensions of their life, to reach the critical mass

necessary to assist the weavers to break out of the subsistence production cycle. In

Pochampalli, the interventions included health care by corporate hospitals,

construction of work-sheds and houses, and a complete menu of economic benefits.

Secondly, the interventions should be decided in close consultation with the

stakeholders and have the flexibility for mid-course corrections. Thirdly, inputs from

technical experts, like NIFT and continuous business mentoring is required to assist

the transition of such producer groups to a market economy.

Jyothi and Aruna (2006)60focused on the production, pricing and

organisational problems of handloom industry. For that purpose, a field survey was

conducted in Krishna District by taking into account 30 Handloom Weavers Co-

operative Societies and 70 Master Weavers as sample. In this study, the authors

pointed out the lapses of the Government in respect of non-compliance of the rule of

hank yarn to be produced by the spinning mills and the supply of yarn by the

NHDC. This was found to be the prominent reason for most of the weavers and

master weavers to buy the required yarn from the mills and there is no strict control

exercised on the regulation of prices of yarn, dyes and other chemicals. According to

this article, cotton yarn prices have thrown the handloom industry out of gear at a

time when stiff competition from the powerloom sector has made survival difficult,

particularly in Andhra Pradesh, Tamil Nadu and West Bengal. But most of the State

Governments appeared to be lukewarm in enforcing the reservations as the

60Jyothi and Aruna, .Problems and Prospects of Handloom Industry.,Indian Journal of Commerce, Vol. 59, No.1, January-March 2006, Pp.87.95.

53

powerlooms lobby is active and directing mills to produce hank yarn to the

stipulated requirement for distribution to handloom units. But many mills are not

fulfilling this obligation on the plea that they do not have adequate supply of reels to

produce hank yarn.

K.V. Rao and G. Naga Raju (2008)61 evaluated the various problems,

viz. production, marketing and organization faced by the handloom industry in

Andhra Pradesh. The major findings of the study are: the powerloom sector is able

to misuse the concessions given to handlooms and the former is able to produce the

reserved varieties of handloom sector. The spinning mills were unable to produce 50

per cent of yarn in the form of hank yarn. There was also inadequate supply of raw

materials and their high prices. Weavers are mostly using traditional type of pit

looms. Further, marketing of handloom products in Andhra Pradesh was one of the

most important problems. Existence of number of intermediaries between the

producer and the consumer is yet another significant issue. Various schemes have

been implementing by the Government for the promotion and development of

handloom industry and welfare of handloom weavers, which were also not able to

increase the living standards of the handloom weavers. The author suggested that the

APCO and NHDC should open number of yarn depots or yarn banks at the

prominent handloom centers of Andhra Pradesh to maintain stability in the prices of

yarn and other raw materials. Financial assistance shall be provided in collaboration

with the banks and financial institutions to enable weavers to acquire latest type of

61K. V. Rao& Naga Raju G, .Working of Handloom Industry in Andhra Pradesh., Indian Co-operative Review, Vol. 46, No. 1, July 2008, Pp. 1.21.

54

looms and to overcome the financial problems of both weavers and co-operative

societies.

Suresh Kumar and Ganesh (2008)62 analyzed the distribution of income

between member and non-member weavers, find out variations in the expenditure on

essentials and trace out difference in savings and investment pattern of members and

non-member weavers. The authors found that the income of member weavers was

very high over the income of non-member weavers; so that they were able to spend

their income on essential commodities of food, cloth, etc. and utilized marginal

savings for acquisition of required assets. They suggested that the non-member

weavers should become member weavers so that they would also get the benefits as

enjoyed by the member weavers and increase their social and economic status in the

society. The author particularly highlighted the issues such as poverty, low standard

of living, hunger, poor health, malnutrition, illiteracy, deceases, poor sanitary

housing conditions, lack of communication and infrastructure facilities. He found

that socio-economic conditions of the weavers were in poor state. Finally, he

suggested that the Government should take measures to provide food security and

wage employment programmes and implementation of labour welfare schemes.

NarasinghaBehera (2009)63 focused on economic impact of working of

Weavers. Co-operative Societies on member-weavers in Bargarh district of Western

62Suresh Kumar K.S. & Ganesh G., .Product Strategies of Handloom Weavers. Co-operative

Societies . An Empirical Enquiry. Kurukshetra, Vol. XLVI, No.5, Pp. 45.46. 2008

63NarasinghaBehera, .Economic Impact of Weavers. Co-operatives on Member . Weavers in Bargarh District, Orissa., Journal of Rural Development, Vol. 28, No. 2, April-June 2009, Pp. 159.168.

55

Orissa for the period from 1993-94 to 2000-01. For this study, 173 active members

and 45 not-active members from nine Weavers. Cooperative Societies were selected.

The study covered the aspects like age, education, experience, ownership of looms,

number of working days, family size, income, expenditure pattern, savings, dwelling

house, loom-shed, household properties and indebtedness of weaver members. He

found that the Weavers. Co-operative Societies were providing employment

opportunities to the members on an average for 252 days in a year. The member-

weavers were getting wages regularly from the weavers. Societies for weaving the

cloth. The primary weavers. Co-operative societies were able to help increase the

income of member-weavers. Thus, he suggested to the Government to take measures

to attract more non-active members towards societies, so that they also could draw

benefits from the societies.

L.P. Ramalingam (2010)64 assessed the socio-economic conditions of

handloom weavers in Madhurai district of Tamil Nadu. The study mainly analysed

the socio-economic factors of age, gender, marital and educational status,

occupational distribution, ownership of house property and occupational diseases.

The major findings of the study are: i) majority of the weavers are in the age group

of above 40 years; ii) educational status of the weavers is below 10th standard; iii)

system of occupation is hereditary in nature; iv) 88 per cent of the weavers lived in

rented houses and 91 per cent of the weavers were attacked by occupational

diseases. Finally, the author suggested some measures, viz. attracting young

generation in this field, conducting periodical medical camps, extending loan

64Ramalingam, .Socio-Economic Status of Handloom Weavers.,Kisan World, Vol. 38, No.1, 2010, Pp. 29.31.

56

facilities to the eligible weavers and providing minimum guaranteed wage, PF, etc.

to regain the glory of handloom industry. Further the study revealed that member

weavers of co-operatives did not gain anything so far as their exposure to mass

media is concerned; Weavers association with co-operative organization did not help

in improving organizational matters; Member weavers were aspiring for higher

education of their children and spent more money for the same purpose. They were

not interested to put their children in the traditional profession, because of lack of

scope for comfortable living.

I.M. Desai (1978)65 in his study clearly indicated its commitment to the

development of cottage and small scale industries including the 3.8million

handlooms which provide rural employment to over 10million weavers in this

industry. This revolution in rural India will not merely assure continuous

employment to the handloom weavers but also help in sustaining and reviving the

rich folk arts and crafts of our age and old culture which should be given rightful

place of dignity and prestige in the society, clothing occupies the second position

among the three absolute necessities of human life. His work concentrates on the

history of the industry which dates back to 5,800 years, its socio-economic

importance, the problems faced by this Industry and also reasons for its nation wide

popularity. His work also reveals the structure, organization and wage conditions in

the handloom industry. It also suggests the measures suitable for the improvement of

handloom industry in India.

65I.M.Desai, “Living with Indian Handlooms”, Journal of Industry and trade, Vol.XXVIII,No.9 &10,September & October 1978. p.13-15.

57

K. Bharathan, (1983)66 in his study, which looks into the change in the

relative share of workers of the cloth industry of Tamil Nadu, comes out with his

finding that the industry is losing ground on the basis of employment potentialities.

He ascribed it to the „inconsistency in the policies of the Central and State

Governments. He also states that the women constituted about one third of the total

workers in the industry in 1961 and were to be found relatively more in the

household than in the non-household sector. But in 1971, the share of the women

workers has increased to a little above the third of the total workers, the fabrics

produced in handlooms as could be expected would be costlier to produce as

compared to other sector, the extent of difference over powerloom sector being on

the average about 22 percent with cotton fabrics. This increased cost of handloom is

due to the higher conversion cost, consequent to the very low labour productivity.

The labour productivity in weaving alone is extremely low, handlooms requiring

more than 100 operative hours to produce 100metres of fabric, which is labour 12 to

15 times the operative hours employed in the other sectors

Jain L.C.(1983)67 in his study in his serious problems faced by the

handloom sector has observed that though banks were nationalized in the name of

poor producers like handloom weavers, the latter have not received even 10 per cent

of their requirements, while colossal sums of soft loans are being pumped into the

mills. If anything, there is a flow of credit in the reverse direction. (i.e) form the 66Bherathan “Cotton handloom industry in Tamil Nadu”, Working paper, Madras Institute of

Development studies Madras, June 1983, p.4. 67Jan.L.C, “Handlooms face liquidation”, Economic and Political weekly, Vol.18, No.35, August

1983, P.1521-1522

58

handloom weavers to the government due to inordinate delays in reimbursement of

rebate and subsidy,a majority of the weavers in the country are in fact illiterate albeit

being adepts in their own line of activity. Because of their inadequate earnings from

the profession, they are not financially sound enough to carry on the production as

well as marketing activities with their limited funds. New and again, they have to

depend invariably on master weavers both for business as well as for subsistence.

The performance of the existing institutional infrastructure both for financing and

marketing of handlooms is far from satisfactory. Co-operative movement in the

industry has also not developed on sound lines. Though there are a very few

societies contributing to the improvement of the socio-economic lot of the weavers,

a majority of the societies in the country are found to be in dormant shape. This is

further observed that in some handloom centres where the co-operative societies are

ineffective and dormant, the master weavers are more active in controlling the entire

business

A.K. Rajula Devi, (1983)68 states that on the marketing side, the apex

body of the primary societies popularly known as „co-optex markets about 50 per

cent of the fabrics produced in the co-operative sector. It has been directed to

procure the entire production of small primaries whose annual sales turnover does

not exceed Rs.5 lakhs and 50 per cent of the production of the remaining societies,

the author further ascribes this meagre response of the handloom industry to the co-

operative sector, to the ignorarce to the weavers towards their coming under the co-

operative fold. It is the task of government machinery to inculcate the advantages of

68Rajula Devi, “Plight of Handlooms”, Kurukshetra, Vol.XXXI, No.7, January 1, 1983, p.21.

59

co-operatives sector in the minds of handloom weavers so that better response can

be had in future. The following statement shows the progress of the Tamil nadu

Handloom weavers’ co-operative society Ltd., Madras. This society was established

in 1935 and it gives an impetus to the development of weaver s co-operative in

Tamilnadu

Ramesh M. Bhatt (1983)69 in his study estimated that a large number of

women engaged in handloom sector either as weavers or as supportive workers in

pre-weaving and post weaving activities. This study was conducted between

November 1981 and September 1982 in Mahesena district of Gujarat. About 1010

households were surveyed in 125 villages. The aim of this study was to analyse the

potential of women employment in the district. There were 1953 adult women

amongst the 1010 house holds. It is estimated that out of 1953 adult women 60

percent were in the age group of 15 to 35 years and about 42.8 percent women were

illiterate. Nearly 38.89 per cent of women were engaged in weaving as a subsidiary

occupation. The author states that the widespread participated of women in activities

pertaining to weaving clearly indicates that there is tremendous growth of

employment opportunities for women in the hand-loom industry. The author also

observed that at present they are not paid for any pre weaving operation. They do

but from weaving they could earn additional income. Besides the study reveals that

nearly 89 per cent of the women weavers are engaged in household activities. From

69Ramesh M.Bhatt, “Women should be Equal Partners in Handloom Sector”, Yojana, Vol.27, No.5

March 16-31, 1983, p.25.

60

this study it is clear that the employment of women in handloom industry is quickly

increasing with time.

K.Suyambulingam (1986)70 in his study “Handloom Exports in India”

reveals that in terms of employment, the handloom industry of the state is next

important to agriculture. This industry provides direct employment to nearly 20lakhs

people and livelihood to another 30lakhs people. This 50 lakhs associated with the

handloom industry is fairly big while compared to the total working population of

the decentralized sector of the state. Further, he states that the total working

population amounts to 35.69lakhs. So, the percentage of the weaving population to

that of the total working population of the district works out to be a flattering figure

of 31.88 per cent. This study clearly shows the significance and need of the

handloom industry terms of employment potentialities of the district in the days to

come and again makes oneself think of the extent to which employment opportunity

could be provided by them in handloom industry.

According to Nagen C. Das, (1986)71 the major obstacle that hinders

proper development of the handloom weaving industry despite its long traditional

background is its very low production. Though several factors are responsible for

this state of affairs, one aspect that has become more prominent is the presence of

large number of women weavers and that also, large majority of them are not

70K.Suyambulingam “Handloom Exports in India”, Co-operation, August 1986,p.116

71NagenC.Das, “Development of Handloom Industry”, Deep and Deep Publications, New Delhi,

1986,p.40-61.

61

professionalized which presents the absence of commercial weaving, the fruits of the

industry are actually grabbed by extortionate middlemen and as a consequence

majority of the weavers are not showing enthusiasm in this traditional profession.

However, they are continuing their present line of activity since they found no other

way to sustain themselves. The nation cannot afford to allow the handloom industry

to decay rapidly and die a violent death in struggle with the mills because of its

effects on unemployed segment of the rural population. Thus, the provision of

employment to the traditional weaving communities provides more a social

responsibility than an economic necessity.

B. Ramakrishna Rao and G.Subarahmanyam (1987)72 in their study

reveal, there is a necessity to safeguard the handloom weavers working from

middlemen. Strict enforcement of minimum wages for handloom weavers is highly

essential. A scheme similar to that of provident fund should be introduced in both

private and co-operative sectors, if necessary, by enacting legislation for the

purpose. The Government should come with heavy hand and should snub the

malpractices adopted by the master weavers. Further, it is also necessary on the part

of the Government to strengthen the co-operative societies financially and

administratively,organization of industrial weavers co-operation societies has been

one of the important schemes implemented by the state government for the welfare

of the loomless weavers. There are a large number of loomless weavers, struggling

72Ramakrishna Rao and G.Subarahmanyam, “Handloom industry in Coastal Andhra Pradesh: a

Survey”, Kurukshetra, Vol.XXXV, No.6, 1987, p. 14,15,16,21,22 & 34

62

hard under the master weavers, on whom they necessarily depend for their

livelihood.

Sahab Deen Maurya (1988)73 attempted a multidisciplinary approach to

the study of Indian Women. He studied histo-political, socio-economic and spatio-

cultural aspects of women in life. His study consists of two parts, ie., present nations

scene of women’s life and the current patterns of women’s status in different regions

of the country. In his study Maurya analysed the functional characteristics of women

in rural Uttar Pradesh. There are a number of obstacles and social restrictions that do

not allow women to adopt various occupations freely. Besides, some occupations

requiring hard physical and manual labour are not favourable for women. In the two

areas of Uttar Pradesh, Himalaya hills and Easter Utter Pradesh rural females are

more active and are engaged in agricultural activities. The author stated that the

cottage and rural industries like handloom industry provide ample opportunities and

such industries should be developed in such a way that they could provide more

employment to the rural women. He also observed that in the field of textiles,

handloom industry occupies a distinctive place in the state

V. Rajagopal (1990)74 in his study, examined the production and

marketing structure of handlooms in Kannur and Thiruvananthapuram Districts. He

says the location specific studies throw light on the structure and functioning of the

industry in particular regions and provide greater insights into the dynamics of the

industry. He found that the production in kannur is centralized. On the other hand,

73Maurya, S.D. “Women in India” Chugh publications, Allahabad 1988. p.2.

74Raja Gopalan.V. “The Handloom Industry in North and South Kerala: A study of production and Marketing structure” Centre for Development Studies, 1990

63

independent weaving household exist in Balaramapuram, which markets their goods

by having them in the daily evening markets or in the village fairs. He found that

there was marked decline in the number of persons engaged in the weaving. This

decline may be possibly have been on account of severe competition from machine

made goods. In the present century also, all types of mundu, neriathu and thorth

constitute the bulk of the product mix in South Travancore. The industry in this

region was traditionally differentiated in its product mix. While one sector of the

industry produced fine varieties the remaining section concentrated on the

production of coarse varieties of cloth. Also in this region the industry was

essentially oriented towards the domestic market. Also he found that most of the

primary co-operatives in Thiruvananthapuram districts do not have any particular

production strategy.

Subathra (1994)75 has pointed out in her study that, India adopted a

developmental model based on protection of domestic industry against foreign

competition; the creation of a public sector, and a degree of protection for the small-

scale, labour –intensive industrial production in the decentralised sector against

large-scale capital-intensive production in the domestic formal sector. This

development strategy was followed for thirty years since independence with the

variation in policy, although a major change in the direction of a more export-

oriented strategy emerged late in the 80s. While Nehru’s policy of mixed economy

aimed to protect traditional industries and bring up modern industries, Narashimha

75B.Subburaj, “A change in Approach for Sustainable Employment by Handloom co-operatives”, The Tamil Nadu journal of Co-operation, Vol.80, No.12, March 1995,p.29.

64

Rao’s government followed Rajiv Gandhi s policy of clearing the way for liberal

economy. This had meant curbing all restrictions over „Protected Interests

Aswini Kumar Mishra (1994)76 brought out the impact of handloom co-

operatives on social life-style of weavers in Western Orissa. The major findings of

the study were that: (i) member weavers did not gain any things of aras their

exposure to mass media is concerned; (ii)Weavers association with co-operative

organization did not help in improving organization almatters; (iii)Member weavers

were aspiring for higher education of their children and spent more money for the

same purpose. They were not interested to put their children in the traditional

profession, because of lack of scope for com for table living.

According to U.M. Shah, (1995)77 the handloom weavers, mostly

belonging to economically weaker section, have been brought into co-operative fold.

Though about 21 percent of the commercial looms are actively involved in the co-

operative sector, the co-operative coverage is about 58 per cent of the total

handlooms in the country estimated about 39lakhs. Progressive co-operatisation of

handlooms is a significant achievement of co-operative development in India, which

besides ensuring adequate and timely support of yarn and other raw materials has

helped in the marketing of finished textiles. To a considerable extent, the handloom

weavers have been saved from exploitation through a net work of 1,51,522 primary

handloom co-operatives working in different parts of the country The Journal on

76Aswini Kumar Mishra(1994)“Social Impact of Handloom Co-operatives on Weavers in Western Orissa: An Empirical Study”, Journal of Rural Development, Vol.13, No.2, April-June 1994, Pp. 259-267. 77Shah, “Co-operative Development, Progress and Trends”, The Tamil Nadu Journal of Co-operation, Vol.87, No.8, November 1995,p.23.

65

Tamil Nadu Journal of Co-operation gives the information that All India Handloom

Fabrics Marketing Co-operative Society Limited was set up by the Government of

India, at the national level in the year 1955 to organize and develop markets both

within the country and abroad for handloom fabrics, madeups, and garments. The

society has its retail outlets under the name and style of Handloom house in all State

capitals and cities within our country. The society also set up handloom houses in

Singapore and Mouritius while it exports promotion offices at New York and

Frankfurt. The society’s exports are increasing year after year.

T.R. Gurumoorthy (1995)78 in his article Market Development

Assistance to Handloom Co-operative Societies reveals that marketing of handloom

fabrics is an essential element in the overall administration of the handloom co-

operatives. Handloom co-operatives are not so strong financially to compete with

the mill sector in the textile market. In order to improve the marketing capabilities of

the handloom co-operatives, Central Government provides financial assistance to the

handloom co-operatives under “Market Development Assistance Scheme”. The

financial assistance extended under this scheme is meant for interest subsidy, rebate,

establishment and modernization of showrooms and construction of god owns, the

co-optex and the Government of Tamil Nadu organize exhibitions and primary

societies also participate in these exhibitions. It is noticed that the number of

exhibitions conducted during the October-December months, is the highest, which

78T.R.Gurumoorthy, “Market Development Assistance to Handloom Co-operative Societies”,

TamilNadu Journal of Co-operation, vol.87, No.5, August 1995, p.7

66

suggests the seasonality of demand for handloom fabrics influenced by festival

occasions

According to Noorbasha Abdul (1996)79 Handloom is one such

venerable industrial segment which has been severally affected under the reforms

regime and has culminated in large-scale de- employment of weavers and the

shrinking of real wages. The large-scale starvation deaths of handloom weavers in

Prakasam and Guntur districts of Andara Pradesh in the second half of 1991

triggered a spate of media reports that have focused on the plight of weavers,

Technological innovations have brought about several changes in the wearing

industry, which was flourishing in the region and other parts of India, The study also

revealed that handloom workers are aware of popular designs and modern

implements and accessories. Lack of training and finance are the two major factors

that limited the adoptions of modern implements in weaving. She pointed out that

the development of the industry through modernization will inject new vitality and

vigour in the rural and semi-urban areas of Kerala and thereby can reduce the

gravity of unemployment.

P.C. Mahapatro (1996)80 conducted in the state of Orissa. He examined

there levance of the handloom industry to the economy of the Orissa state and

scrutinized the general characteristics of the industry. Output and employment

79Noorbasha Abdul, “Handlooms in Distress” Economic and Political weekly, Vol.XXXI,No.23,

une,1996,p.1384-1386

80Mahapatro P. C (1996) “Economics of Cotton Handloom Industry in India”, Ashish Publishing House, New Delhi, 1996.

67

aspects of the industry, income of the weaving households and their economic

conditions have been analyzed. The major problems facing the industry such as

marketing, finance and supply of yarn were highlighted. In addition, Thestudy also

evaluated the efficacy of various policies ad opted by the Government for the

development of the handloom industry in Orissa.

Sailendra Narain (2000)81 pointed out that the handlooms sector forms a

part of India s rich heritage and exemplifies the richness and artistry of the weavers.

The Handloom (Reservation of Articles for production) Act 1985 aims at protecting

the interests of weavers. Under this act, 11 textile articles are presently reserved for

exclusive production by handlooms units. In order to help in formulation of effective

schemes for the benefit of handloom weavers, NCAER was assigned the task of

undertaking a census of Handlooms in 1995-96 by the ministry of Textiles, the study

further identifies some major developments that have shaped the evolution of

handloom silk weaving industry after independence, which applies to cotton

handloom weaving too. They are highly supportive state policy in terms of

restrictions on mill sector, reservation of a part of mills spindlage to produce

measures for handloom clothes and reorganization of production structure through

the creation of co-operatives.

G.V. Chalam (2001)82 madean attempt was made to examine the

financial performance of Handloom Weavers Co-operative Societies in Krishna

81SliendraNarain, “Traditional industries”, SIDBI Report on SSI Sector -2000, issue-2, 2000,pp.47-48. 82Chalam G. V. (2001) “Problems and Prospects of Handloom Industry in Co- operative Sector A Study of Handloom Weavers Co-operative Societies in Krishna District”, Indian Co-operative Review, Vol. XXXVIII, No. 3, January 2001, Pp. 137- 142 .

68

District during the period of 1994-2000 and also describe various problems faced

by the Handloom Weavers Co-operative Societies in respect of in adequate

activation of looms, political interference, high production cost, lack of adequate

marketing facilities, improper implementation of development schemes, misuse of

funds and heavy dues from the Apex Society(APCO).He suggested that the

Government should strictly implement the Reservation Act and extend 15per cent

of Market Development Assistance to relieve societies from the problem of

working capital. The State and Central Governments should take necessary steps for

the modernization of looms to increase the productivity of workers and take

measures to bring the large number of weaver sunder co-operative fold.

Babu (2001)83 observes, “Handloom is the largest industry in the

unorganized sector in terms of size, income and employment potential. Handloom

sector accounts for about 30percent of the total textile production and about 60

percent of the employment in the text industry”. According to him “Handloom

weavers in the country are mainly concentrated in seven states as in Assam. West

Bengal, TamilNadu, Manipur, Uttar Pradesh, Maharashtra and Andhra Pradesh,

Among the south Indian states, Tamil Nadu is the most important in terms of the

size of weaver population and share of total production,Handloom sector provides

direct and indirect employment to 6.5 million persons engaged in weaving and allied

activities. As a result of Government intervention through financial assistance and 83BabuP.Ramesh, “Organizational Structure, Labour Relations and Employment in Kancheepuram

Silk Weaving”, NLI Research Studies Series No. 021/2001, V.V. Giri National Labour Institute,

Noida,2001

69

implementation of various development and welfare schemes, this sector has been

able to withstand competition from the powerloom and Mill sectors production in

this sector has reached to 6792million sq.metres in 1998-99. This sector contributed

to 19 percent cloth produced in the country and contribution substantially to the

household weaver is generally lower when he worked as member of the cooperative

society and also as a weaver under the control of master weavers. The health hazards

are very high in the weaving industry and as a result, expenditure on healthcare

accounts for a considerable proportion of their income. The number of weavers in

the co-operatives has declined by 63 per cent and most often weavers continue to be

members on the rolls, but do not receive work from the societies for long periods of

time and weavers generally prefer not to work for Master Weavers in places where

the co-operatives were strong. The quantity of cloth produced in the co-operative

sector in the state declined by 77.3 per cent and co-operatives have failed to fulfill

their basic responsibility of promoting and assisting handloom weaving in the state

and the performance affected by various internal and external factors. Further, the

failure of APCO has led to piling up of stocks and heavy dues pending for long

periods of time has contributed to increasing sickness among co-operatives.

Amrita Singh Shailaja. D. Naik (2009)84 examined the socio-economic

conditions of the Banaras silk weavers, the study found that the Handloom weavers

in Banaras, who have inherited this occupation, are in pitiable condition owing to

the poor socioeconomic conditions. Majority of them are wage weavers who earn

84Amrita Singh Shailaja.D.Naik, “Status of Banaras weavers: A profile” Karnataka J. Agric. Sci.,

22(2) :(408-411) 2009

70

minimal wages in spite of working for more than ten hours a day. It is interesting to

note that the literacy rate among the weavers community is quite encouraging. The

two religions predominantly engaged in weaving are Muslim and Hindu; who lived

in urban locality. Almost fifty per cent of the community belonged to middle income

group; who were engaged with Master Weavers or in the Co-operative Societies.

The basic raw material required for the production of silk sarees were silk and zari

purchased largely from the local market but sometimes from Master Weavers or Co-

operative Societies, on credit, the respondents opined that Provision for raw

materials at reasonable price, special training to improve existing weaving

technology, knowledge about scientific and low cost techniques of weaving, dyeing

and finishing, financial assistance and other necessary inputs is the need of the

daythe country s export earnings

S. MahendraDev, S. Galab, Vinayan (2008)85 examined the problems

and prospects of the handloom sector in Andhra Pradesh. The major finding of the

study is that the monthly income of the household weaver is generally lower when

he worked as member of the cooperative society and also as a weaver under the

control of master weavers. The health hazards are very high in the weaving industry

and as a result, expenditure on healthcare accounts for a considerable proportion of

their income. The number of weavers in the co-operatives has declined by 63 per

cent and most often weavers continue to be members on the rolls, but do not receive

work from the societies for long periods of time and weavers generally prefer not to

work for Master Weavers in places where the co-operatives were strong. The 85MahendraDev, S. Galab, P. Prudhuikar Reddy and SoumyaVinayan,.Economics of Handloom Weaving; A Field Study in Andhra Pradesh.,Economic and Political Weekly, Vol. XLIII, No. 21, May 2008, Pp. 43.51.

71

quantity of cloth produced in the co-operative sector in the state declined by 77.3 per

cent and co-operatives have failed to fulfill their basic responsibility of promoting

and assisting handloom weaving in the state and the performance affected by

various internal and external factors. Further, the failure of APCO has led to piling

up of stocks and heavy dues pending for long periods of time has contributed to

increasing sickness among co-operatives.

Gundeti Ramesh (2009)86 made an attempt to high light the socio-

economic conditions of handloom weavers by selecting 180 handloom weavers

working in weaving co-operative society of Kothapally of Karimnagar District. The

author particularly highlighted the issues such as poverty, low standard of living,

hunger, poorhealth, malnutrition, illiteracy, deceases, poor sanitary housing

conditions, lack of communication and infrastructure facilities. He found that socio-

economic conditions of the weavers were in poor state. Finally, hesuggested that the

Government should take measures to provide food security and wageem ployment

programmes and implementation of labour welfare schemes.

Thirunarayanasamy and Paramasivam (2009)87 explained various

welfare schemes and programme simplemented by the Government of Tamil Nadu

and Government of India to enhance production, productivity and efficiency of the

handloom sector and enhance the income and socio-economic status of the weavers

by upgrading the weavers skills. The schemes covered included: Savings and 86Gundeti Ramesh (2009) “Some Issues of Handloom Weavers A Study in Karimnagar District of Andhra Pradesh”, Kurukshetra,Vol. 57, No. 8, June 2009, Pp. 33-37. 87Thirunarayanasamy M. &Paramasivam J. “Welfare Schemes for Handloom Weavers An Outline”Kisan World, Vol. 36, No. 10, October 2009, Pp. 18-22.

72

Security Scheme, Central Thrift Fund Scheme, Tamil Nadu Handloom Weavers

Family Pension Scheme, Co-operative Handloom Weavers Old Age Pension

Scheme, Weavers House-cum-work shed scheme, Mahatma Gandhi Bunkar Bima

Yojana Scheme, Health Insurance Scheme for Handloom Weavers, Dr.

M.G.R.Handloom Weavers Welfare Trust and Payment of Scholarship to Students

of Indian Institute of Handloom Technology. They have illustrated that the

welfare schemes implemented for handloom industry were very much helpful and

needful to the industry; they concluded that by the successful implementation of

these schemes, the handloom industry would be in a position to increase the

productivity and efficiency of the handloom weavers and enhance the income level

and socio- economic conditions of the weavers.

Gopinath (2010)88 explored the question of how far the Khadi

programme has had an impact on the livelihoods of the artisans. It is observed that

contrary to Gandhiji’s assumption of achieving the basic socio-economic and wider

objectives of the artisan’s well-being through the khadi programme, it is leading to

occupational interlocking, wherein moving to alternate occupations is highly

constrained due to the absence of alternate job prospects with the existing low skill

levels of the artisans. This further perpetuates or entraps artisans and their families

in a low-income situation with worse outcomes for their future generations. Further,

the presence of a large number of artisans from the marginalised sections (Scheduled

Castes or SCs in weaving and women in spinning) is a cause for concern as they are

88Gopinath, WAGES, WORKING CONDITIONS AND SOCIO-ECONOMIC MOBILITY OF

SPINNERS AND WEAVERS IN THE UNORGANISED KHADI INDUSTRY: FINDINGS FROM

A SURVEY IN INDIA,The Indian Journal of Labour Economics, Vol. 53, No. 2, 2010

73

the least empowered sections of the society. It is a clear case of institutional failure,

wherein the Khadi and Village Industries Commission (KVIC) and the associated

institutions entrusted with achieving the socio-economic well-being of the artisans

through the khadi programme have failed to realise the goals. The analysis raised

questions as to whether employment in the khadi sector can be termed as ‘decent

work’ with very low levels of wages and without much of social security. The only

area wherein there seems to be hope is in the innovation of higher spindle charkhas,

which would involve lesser drudgery and fetch more wages. In addition to this, the

training of weavers and innovation in the improvement of looms and designs of

products needs to be undertaken to encourage the production of highly value-added

products in order to improve the socio-economic conditions of the artisans. Further,

artisans should also be encouraged to unionise/organise to improve their working

conditions. However, it is heartening to know that some of the suggestions

mentioned in the report are being implemented by KVIC today after a decade of

implementation of different schemes.

Alin Borah Bortamuly and Kishor Goswami (2012)89 made an attempt

to analyse the factors influencing the wage structure of the handloom industry from

a gender perspective. It examines the wage differential with respect to gender as

well as type of work the workers are entrusted with. The study is based on primary

data collected from 300 respondents in 13 districts in Assam. Multiple regression

technique is used to analyses the data. The results show that in case of contractual

workers, there is no gender discrimination in wages, whereas it is found in case of

monthly rated workers. Productivity of the workers is found to be significant both

for monthly rated as well as contractual workers. Factors like education and

89Alin Borah Bortamuly and KishorGoswami “FACTORS INFLUENCING WAGE STRUCTURE OF HANDLOOM WORKERS IN ASSAM” Journal of Rural Development, Vol. 31, No. (2) pp. 139 – 150 April-june. 2012

74

experience do not have any significant influence on the wage structure of the

workers in the handloom industry in Assam. Thus, the government machinery

should address the gender wage discrimination for monthly rated weavers and

reelers, and back up support facilities for contractual workers of the industry in the

State. The present study greatly extends our understanding of the wage earnings

scenariin Assam’s handloom sector from gender perspective.

Review of the various studies related to handloom co-operative and

handloom silk co-operative societies were reviewed the review reveals the different

dimension on the broader area. the present study “A STUDY ON THE

PERFORMANCE OF CO-OPERATIVE SILK PRODUCERS IN

KUMBAKONAM TALUK OF TAMIL NADU” attempts to fill this research gap.

the results of the study are expected to provide a practical contribution in the study

area the performance and the socio economic conditions of the silk weavers in the

present scenario.

75

CHAPTER III

PROFILE AND OPERATIVE PRODUCTION PROCESS OF

CO-OPERATIVE SILK SOCIETIES IN KUMBAKONAM TALUK

Co-operative movement in India is one of the largest movements in

the world. Co-operative movement has made tremendous progress in every aspects

of the Indian economy. Co-operative act ivities occupy a major place in the sphere

of the Indian economy. Initially, the co-operative movement was started with a

limited scope of activities of rural credit but now it has entered in all fields of

economic activity with social essence. Now the movement which has covered 100

per cent villages and 75 per cent rural households and functioning over 5,45,000

Co-operatives of various levels with membership coverage of 236 million and

working capital of 34,00,555 million inclusive of credit and non-credit co-

operative societies. It has been playing a significant role in disbursing agricultural

credit, distribution of agricultural inputs, providing market support, processing, etc.

Co-operative movement has been recognized as an effective instrument for the

economic development of the rural masses and for improvement in the socio-

economic condition of the poor. The co-operative movement in India had its origin

elsewhere and was introduced to this region by foreign rule. But even after

independence, the movement continued in the planned economy. The movement

has been recognized as an effective instrument for the economic development of the

rural masses and for improvement in the socio- economic conditions of the

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neglected. In India co-operation had become a part of national policy and hence the

Indian co-operative movement is sometimes ironically described not as a movement

but only as a product of government policy. It spread and diversified with the

encouragement and support of the government. The co-operative movement in India

was basically organized against the money lenders to rescue farmers from the

clutches of the poverty and indebtedness. The need for agricultural credit through

co-operatives felt because of rural indebtedness. The Indian co-operative movement

was initiated by the government; it spread and diversified with the encouragement

and support of the government. In this connection, observation made by

NABARD in its Annual Report, 2001-2002 is; “Co-operatives have contributed

significant growth to the government by the growth of industrial and the growth of

institutional infrastructure in the rural areas, private capital formation in the

agriculture sector and distribution of farm inputs like fert ilizers, seeds, etc., The

determination interest of Government in co-operatives and the importance

attached to them was reflected in the appointment of various committees

regarding to review their development and functioning”.

A Thematic note on Co-operatives and its Growth in India

Co- operatives works for the sustainable development of the overall

economy through various policies. Co-operative societies serve their members most

effectively and strengthen the co-operative movement by working together through

local, regional, national and international structure. The place of co-operatives in

Indian economy and its role in social and economic affairs has developed a new

dimension with the beginning of the planning. India emphasized the process of

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planning stemmed partly from the urge of backwardness and partly from line which

gave an force to achieve social justice, equality and a decent livelihood for all

citizens, the promotion of co-operative thought of not merely as an extension of

state action but as a step towards the realization of the best of the co- operative

widespread prosperity.

India adopted a socialistic pattern and pursued the policy of a mixed

economy with features of both capitalism and socialism. The Planning Commission

which was established in 1950 set the social and economical targets based on

equity and justice. With the objective of self-sufficiency public sector recognized

key of development under the direct control of the State. The second sector of the

economy i.e. private sector came under the regulatory mechanism of the State. The

third sector of the Indian economy which would act as a balancing factor for the

limitations of the public and private sector was the co-operative sector. Co-

operative institutions recognized as an important agents of rural development,

social justice and equity. The co-operative movement must be financially strong,

organically integrated, professionally managed and forward looking. New

economic policy since 1991 brought into focus the important issues related to the

organizational and business restructuring, adoption of modern technology, new

ways of mobilization of resources and measures to upgrade the standards of

productivity. Co- operation is able to survive competition from private sector and

public sector rivals, particularly in areas of marketing, technological

innovations, and mobilization of resource and development. Strength and

flexibility of the co-operative movement tackle the various issues effectively which

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opened up with globalization in matters of trade, agriculture production and

financial services

Conceptual illustration of Co-operatives

Man is a social animal imbued with desires and aspirations and which

can be fulfilled within society. Co-operation is basic to the development of

human beings and ultimately to the progress and prosperity of society at large.

Human body system is a good example of perfect co-ordination among the

different organs. Similarly, human beings have to co-operate for the happier and

healthier life. Co-operation is a joint or collective action of people directed

towards some specific goal in which there is common interest or hope of getting

some reward. Such co - operation may be voluntary or involuntary, direct or

indirect, formal and informal but there always is a combination of efforts

towards a specific end in which all the participants have a stake, real or

imagined.

From the most primitive sophisticated community throughout the world

we come across some or the other form of co-operation among the people living in a

particular area or region be it for some agricultural operations or of social, economic

or political activity. Co-operation has rightly been regarded as one of the least

noticed economic miracles of the last century. Co-operation is as old as humanity

and co-operation is older than the co-operative movement. The co-operative

movement is only one example of human co-operation among others. The meaning

of co-operation varied from thinker to thinker and from one sphere of human

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activity to another. To the sociologists, it is a social economic movement, for

the socialists, it is a social order in which man is free frorm class struggle,

economists believe that, it is one of the form of business organization in which there

is no scope of being exploited by middlemen. The lawyers take to be an

organization in whose membership one enjoys the special privileges and

concessions conferred by law. Thus, co-operatives are better than private and public

enterprises to serve the common goal due to their commitments to the values and

principles in handling their business. After all, effective functioning of these co-

operatives depends on the effective utilization of their resource

The Role of Saurashtras in the Handloom Weaving Thiirubuvanam:

The industry of silk weaving was in the hands of private capitalists in the

period before the independence of India. In 1950, ” The Handloom weaver’s

society” was established in Thiribuvanam with a motive of sharing the income of the

industry enjoyed only by the capitalists among all the weavers involved in the

industry The association was united with the district AITUC. The workers in the

weaving organized many struggle under the leadership of AITUC, and received

higher wages only after picketing. The weavers were made the members of the co-

operative society. As a result, the Thirubuvanam silk co - operative society was

founded in 1955. Co-operative is a voluntary and organized association of a

number of individuals, dominated by a common need for the purpose of carrying

collectively and independently an economic function which will provide specific

economic benefit. It is one of the enterprise and not a charitable association. The

functions of co- operative organization is on the basis of equality. It is on the

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principle of self - help policy as well as mutual help. It is an association of persons

and not of capital.

Progress of weavers Co-operative

The progress of Weavers and Non-Weavers Co-operatives in India

increased from 20,940 to 20,871 and non-weavers co-operatives from 49,142 to

48,841 during the year 2002-03 to 2011-12 with growth rate of 0.33 percent and

0.61 percent respectively. For the same period the membership increased from

19,177 thousand to 1, 91, 91 thousand and 22, 55,100 to 22, 56,543 thousand

whereas growth rate was 0.075 percent and 0.065 percent respectively. Share capital

of weavers increased from Rs.1608.78 to Rs.1611.38 million and on-weavers

increased from Rs.951 million to Rs.964 million during the period from 2011-12.

Government contribution in share capital of weavers co-operatives was 36.6 percent

in the year 2011 – 12. Working capital of weavers’ co-operatives decreased from

Rs.9113 million to Rs.9041.1 million and non- weavers’ working capital increased

from Rs.44, 00.5 million to Rs.4410.5 million during the same period.

Profile of the Silk Co-operatives in operation at Thirubuvanam Taluk .

The silk industry vested in the hands of private ownership fully before the

independence. In the year 1950 weavers’ handloom society was established in

Tirubuvanam. The weavers of this area people a were become the members of the

society mostly the members are belonging to the community of sourastra,they named

as ‘pattunool karargal’, they spread their survival with their own business at

kumbakonam, Thirubuvanam, Thiruvidaimaruthur, Thirunagaswaram, Patteeswaram,

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Thuguli they lead their life by run the business on those areas. In these areas the silk

production were executed by both private silk weavers’ co- operative societies. The

welfare schemes for the weavers have been planned and put in action by this society.

Following this, in the year 1978 onwards various co-operative silk producers’

societies has been formed. They were named ” Thiruvalluvar co - operative silk

producers society, Thirubuvanam silk society, cholan silk society, kamarajar society,

Kalaivanar silk societies, Darasuram silk societies and “super co-operative society

had been formed. Along with these one more co-operative silk producers societies

formed by the women in the name of Chief Minister Dr. J. Jayalalitha but which is

not succeed as expected. Individual profile of every society were summarised in the

following headings.

Thirubuvanam Co-operative Silk Society z:322.

This society was started in 1955. The society, which had 129 members in

the beginning, has obtained a good growth. This society which was struggling to

have RS.1600/- of sales now is selling for 23 crores of rupees and has achieved the

name of the top society in India and received the gold medal and appreciation from

the central government of India. Now it has earned 4 crores of profit and received

the award from the government of Tamil Nadu. It garlanded the former president of

Russia Mr.Gaorchev with silk shawl, which had the design of late Rajiv Gandhi

become very famous in Mumbai.

In the world Tamil conference conducted in Thanjavur, the silk shawl

with the designs of Thanjavur temple. The figures of Raja Raja chozhan, and

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Thiruvalluvar brought great wonders in the minds of our prime minister and

foreigners. In addition to it, the figures of Thandhai Periyar, Aringnar Anna,

Kalaignar Karunanithi and chief minister Dr. Jayalalitha were designed on the silk

shawl and earned a good of the society who skillfully designed, and appreciation.

The minds of our prime minister and foreigners. The central government called the

members awarded them with prizes to honor them. The government of Tamil Nadu

also gave them the first prize and congratulated them.

Thirubuvanam Tthiruvalluvar Handloom Silk Weavers’

Co-operative Society T. R(H)55

This society was registered on 28.2.1978. this society started functioning from

30.5.1978, with Mr. K.V. Thulasi Ramaiyyar as the first member and with 131

members. It introduced new designs with the artistic skill of expert weavers. It got

the first place in sales in the all India handloom exhibition in Trichy in the year

1986-87 and got the shield as the prize. Now there are more than 700 members in

this society. Now there are more than 200 looms functioning. The welfare schemes

for the weavers have been planned and put in action by this society.

Thirubuvanam Cholan Handloom Silk Weavers’ Co-oprative Society

T.R (H).85 This society was begun in 1980 with 100 members. Now it is

functioning in a good way with more than 1800 members. The designed silk sari of

Mrs. Bama, a member of this society had a great appreciation from the president of

India in 1993and was awarded the prize for the best design in India. This society

was selected as the best society in the Thanjavur district in 1994 and was awarded a

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prize. The sari which was designed and woven by a member of the society

Mr.M.N.purusothaman won the second prize in 1995 for the best designing in Tamil

Nadu. The government of Tamil Nadu selected member of this society

Mr.Arivazhagan and sent him to china for 15 days of training.

This society had a good record of sales by having its own sales centers in

Chennai and Mannarkudi, and 24 units of agency in almost all the main towns of

Tamil Nadu. It has created a record in sales for 4 crores of rupees. In addition to

that, it has planned to increase the sales to 8 crores of rupees.

Thirbuvanam Kamarajar Co-operative Silk Society

This society was registered on 3.10.1981 in the beginning , there were 25

members and 5 looms. Now there are more than 400 members and 72 rooms. In the

all India silk sales competition in Trichy in the year 1996, this society got the second

place.

Thirubuvanam Super Co-operative Silk Society

This society was registered on 19.3.1984 in the name, ”Thirubuvanam

super handloom weavers’ co-operative silk society for production and sales”. This

society was inaugurated on 20.5.1984, under the president ship of public works

department minister Mrs.S.R.Radha and with the felicitation of milk products

welfare department minister Mr.K.Kalaimani by handling, over yarns to 5 member

of this society. Now this society is functioning skillfully with its 283 members and

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100 looms. In addition to it, it is increasing its growth by starting sales centre’s in

many towns like Madurai, Salem, Nagarkoil and Pondicherry.

This society participates in ali the exhibition during festivals, and increase

its sales and gets achievements. It has received prizes for the same not only that, the

main success of this society is that it gives continuous work to the looms which are

under the control of this society. Mr. P. Gopalakrishnan. B.Sc., D. co-op has been

working as the manager of this society from its beginning. 9 members work as

assistants for him.

Chief Minister Dr.Puratchi Thalaivi J. Jeyalalitha Handloom women

weavers’ Co-operative Silk Society. C. d (h)12 This society was registered on

20.4.1995 with 110 women members. It started functioning from 10.5.1995 10

looms are continuously at work in this society. The manager of this society is Mrs.

D .Geetha. The co-operative society for women which is run by women in

Thirubuvanam is skillfully governed and it is to be appreciated.

The achievements of Co-operative silk societies

The societies in which these people are members have received national

awards for best workman ship. The silk fabrics created from their artistic skills have

been exhibited in the world wide exhibitions. Those silk fabrics throw a challenge to

the international quality in artistic skill and technology. It also shows the spirit of the

community. The technology in computer known as “wonder of knowledge” is

assessed by the expects in computer, as based on the traditional handloom weaving

technology. They have the traditional method of working by deciding on the type of

figures on the silk fabrics and drawing the figures prior to weaving. By calculating

correctly how many yarns to be had in the up and down to be pressed and how many

85

times the stripe (nada) have to be inserted. In computers, the “programming” is

based on this principle. When there was no modern convenience they used their

skills in weaving silk fabrics in handloom with such an artistic beauty to please the

people. The forefathers of these weavers who had the technical skill of this

wonderful weaving had been patronized by kings of olden times and there are

evidences in history to prove this.

PRODUCTION PROCESS OF THIRUBUVANAM SILK PRODUCTS

The silk sarees production is the multi- faceted work entails lot of

nebulous procedures such as given below.

Raw materials

Raw material plays a vital role in the production of any product or goods.

The essential raw materials required for the production of Thirubuvanam silk sarees

are silk and zari, but cotton is used exceptionally used for cutworks sarees for extra

weft designs. The details about the raw material viz., requirement per saree, source

of procurement, frequency of purchase, mode of payment and problems faced while

procuring are dealt under the following subheadings. The silk sarees are exclusive

and ethnic in nature as obvious silk sarees are unique in features, appearance,

texture, colour and design. Where in silk yarn and zari are the basic two raw

materials (Plate 1). These sarees are woven with two types of silk yarns, Bangalore

silk i.e. mulberry silk and China silk; and the popular denier are 14/16, 16/18 and

20/22. The Bangalore silk ranged from Rs.1800-2000 per kg and Chinese silk

Rs.1400-1600 per kg. The weavers purchased raw silk from Bangalore, Malta and

sometimes from local dealers; latter who in turn purchase silk from Bangalore,

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Malda and sometimes from China. The gold and silver zari are used to create

glittering embossed extra weft pattern that gave a classic touch to the saree. The

popular zari numbers used are 1200, 1400, 1600 and 3700.

The four types of zari commonly used in Thirubuvanam silk sarees are:

a) Pure zari

b) Tested zari

c) Powder zari and d) Plastic zari

The composition of different varieties of zari is presented here under:

a) Pure zari: This is also known as real zari. The centre core of pure

zari is made up of degummed twisted red or yellow mulberry

silk yarn; over which silver lametta and badla (flatten wire) is

wound. The silver zari threads are electroplated with pure gold

solution, to produce gold zari.

b) Tested zari: It is also called imitation zari because it has the

external features of real zari and thus, resembles the real zari in

terms of shine. This variety is similar to real zari except copper

lametta used in place of silver and silver gilding is done on copper

wire. For gold zari, the tested zari is electroplated with gold

solution.

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c) Powder zari: The manufacturing process of powder zari is similar to

tested zari, where in powder gilding is done on imitation zari in

place of gold gilding.

d) Plastic zari: The manufacturing process is more or less same as

other varieties. In this variety plastic thread is used as lametta

instead of copper or silver.

All Thirubuvanam sarees are either woven with pure zari and some

of them woven with other varieties of imitation, powder and plastic zari. Most of

the time zari thread is purchased from Surat and sometimes from the agent at the

Kumbakonam. The cost of pure zari ranged from Rs.10, 000 - 13,000 per kg,

imitation zari Rs.600-800/kg, powder zari Rs.200 kg and plastic zari is Rs 350-500

per kg. Silk and zari are the main raw materials used for extra weft designs in

Thirubuvanam silk sarees, but in Kora work sarees, cotton is used to create extra

weft patterns. The weavers generally purchase cotton from Salem (Tamil Nadu) or

local dealers. The cost of ranged from Rs.350 – 400 per kg.

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ZARI PLATE 1. RAW MATERIALS

The various varieties of Thirubuvanam silk sarees are produced with the

help of zari korra. The name of few varieties are Brocade, Chiffon Jamdani, Jungla,

Resham buti, Satin border, Satin embossed, Tanchoi and Tissue saree are mainly

woven with silk and zari, whereas Kora cutwork have cotton designs on silk ground.

The technique of weaving these sarees is more or less same but each saree is

different in its composition. The requirement of raw materials for each saree

varied according to the intricacy of the designs woven.

Technology of weaving Thirubuvanam Silk sarees

The technology of weaving Thirubuvanam silks sarees encompasses

type of loom employed, various preparatory & loom processes involved and

several post loom processes consisted of Preparatory process or pre-loom processes.

The term preparatory signifies the number of stepwise processes carried out prior to

weaving. The silk weaving are subjected to the following preliminary processes:

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Warp preparation

Degumming

Dyeing

Weft preparation

Warp preparation

i. Bobbin winding: It is a process of transferring the silk yarns on to the

smaller packages i.e. bobbins. Initially the bobbin is placed on the steel rod of

bobbin winder machine. The silk hank is placed on the swift of the bobbin

winding machine and on rotating; the yarn is mechanically transferred on to the

bobbin, of either wooden or plastic. Each bobbin is filled according to the required

length of yarn. ( plate 2)

ii. Warping: The dully filled bobbins are placed on to the creel. The yarn

from each bobbin is drawn through the guide & leasing section and further wound

on a vertical warping mill, called Khali in locally. The method adopted for warping

is sectional warping, where in the number of silk yarns in each section depends upon

the number of ends required to produce a saree. (Plate 3).

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PLATE 2. BOBBIN WINDING

PLATE 3. WARPING (SILK)

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Degumming

Raw silk contains silk gum (sericin) which constitutes about 20-30 per

cent of its total weight. The raw silk need to be purified before it takes any colour.

The silk is made soft by removing sericine (gum) and other impurities. This process

also imparts luster to the yarn.

Components of Degumming Process

The components required for degumming process are

1. Soap – 200 g/ kg silk yarn

2. Soda ash – 10-20 g/kg silk yarn

3. MLR – 1:30

These three components were get ready for the further process by the

temperature of Boiling point with in minimum 45 minutes to maximum one hour.

The degummed silk is washed thoroughly first with warm water and then in cold

water to remove the traces of soap liquor. About 25 per cent weight loss is

observed after degumming. Kharna is the term locally referred for degumming.

Dyeing

The process of colouring something by using a natural or synthetic

substance is known as dyeing. The usage of natural dyes in olden days obsolete in

present days. However Thirubuvanam silk industries have been utilizing the natural

dyes which won’t be harmful to the skin, the dyers depended on nature for the raw

materials and dyer to add colours to the fabrics. Generally the dyes were extracted

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from vegetation, minerals and from animals. The use of natural dyes slowly

dwindled from 1886 after the establishment of synthetic dyes. The natural dyes were

in use for many hundred years in the past. Now the habit has been revived with the

ideas of pollution free hygiene and purity. The argument now is that the natural dye

is very suitable but no modern mechanism or an innovative mass production of

natural dyes has been invented. Hence there is a compulsion to use only the

synthetic dyes.

Dyeing

PLATE 4. DYEING OF SILK YARNS

Rangai is the term referred to dyeing in local language. The

degummed silk is dyed either in acid or direct or metal complex dyes to produce

variety of colour ways.

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TABLE NO: III . 1

VARIOUS TYPES OF DYES

Sl.

No.

Acid dye Direct dye Metal complex dye

1 Acid colour Direct colour Metal complex colour

2 5-10 per cent glauber salt 30 per cent glauber

salt

Ammonium Sulphate

3 1-2 per cent Acetic acid 20 per cent Acetic

acid

1-2 per cent Aceticacid

4 MLR 1:30 MLR 1:30 MLR 1:30

5 Temperature 90-95°C Temperature 90°C Temperature 90°C

6 Time 30-45 minutes Time 45-60

minutes

Time 30 minutes

SUPPORTING ARGUMENTS FOR NATURAL DYES

The following are the supporting arguments for natural dyes.

Pollution in the atmosphere. For instance the changes took place in

the temperature of the world as a result of the hole formed in the

ozone layer.

Most of the synthetic dyes, particularly AZO dye is the cancer

instigating substance.

The synthetic dyes especially the petro synthetics are very hot. It is

poisonous, and it affects the environment and also the human

surroundings.

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The reasons for the fall in the use of natural dyes

Natural dyes are not easily available.

The required color cannot be obtained.

The difficulty in the task of making dyes.

The troubles in using the dyes.

The less number of dyes.

The unsteady condition.

The absence of the capacity to prolong.

The benefits in using natural dyes

It is got from sources which can be revived.

It is not dangerous to health.

There is no chemical reaction in producing it.

The waste can be easily disposed.

It goes in harmony with nature.

Though there has been a talk about natural dyes for more than 150

years, the use of natural dyes cannot be seen because of the

absence scientific research in it.

The use of natural dyes is increasing in foreign countries like

Germany and America. As proper attention is not given to it in our

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country, the importance of natural dyes has lost its hold here. In the

present day situation, more than twelve organizations are selling

natural dyes in small packets.

Some important natural dyes

The colours needed by us can be taken from all the vegetables. Dyes can

be obtained from animals. The basic colours like blue, red and yellow can be

produced from natural dyes. The factories to produce natural dyes have been started

in Rajasthan in India natural

Dyes have come to the market for sales some of the natural dyes are stated below:-

TABLE NO : III .2

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CLASSIFICATION OF NATURAL DYES ON THE BASIS OF

APPLICATION PROPERTIES: SOURCE

S. No Botanical name/source Common Name Dye class

1 Indigofera tinctoria Indigo Vat

2 Rubia tinctorum Madder Mordant/disperse

3 Rubia cardifolia Manjeet Acid/mordant/disperse

4 Ceasalpinia sappan Sappanwood Mordant/disperse

5 Luccifer Lac dye Acid/mordant

6 Berberis aritata Berberine Basic

7 Bulea frondosa, monosperma Tesu Morda

8 Mailotus philippensis Kamala Modant/disperse

9 Rheum emodi Dolu Mordant/disperse

10 Quercus infectoria Gall nuts Acid/mordant

11 Acacia catechu Cutch Acid/mordant/discperse

Natural dyes are extracted from the following natural materials such as vegetation

and minerals. They are represented in the tabular column given below.

TABLE NO : III . 3

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SOURCES OF NATURAL DYES

S.

No

Colours Sources

1 Lemon yellow Turmeric powder, myrobalan or harda, symplocus

laurina,woodfordia fruiticosa.

2 Gold colour Skin of pomegranate, modhukai poo

3 Orange Rubia cord folia(manjeet)

4 Light brown Acacia

5 Dark brown Acacia catechu, kais crystal, ficus microcarpa.

6 Grey Ventilago madrae, patina

7 Pink Red sandal

8 Red Madder(menjistha),alizarin red.

9 Blue Indict(indigo era tinctoria)

10 Black Iron, old japery

11 Olive Ventilago madras, rattan jothi.

These natural dyes should be oozed well in the alum solution before

dyeing. So that the dyes get fixed to the fabric or yarn.

Dyeing procedure

The dye bath is set at 40°-50°C with required amount water as per

MLR and added 5 to 10 per cent glauber salt, the crystal and 1-2 per cent glacial

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acetic acid. The dye paste is then added to dye bath and the temperature is

gradually raised. The degummed silk hanks are suspended on smooth steel rods

and immersed in dye bath. The temperature is raised to 90- 95°C during 30

minutes and continued to dye for next 15 minutes (Plate 4). If the dye is not

exhausted within the stipulated period of dyeing time, 1-2 per cent glacial acetic

acid is added to the dye bath and dyeing is continued for another 10-15

minutes, totaling to one hour. Finally the hanks are rinsed thoroughly in cold

water, squeezed and shade dried. (Plate 5) The dyeing procedure for direct and

metal complex dyes is same. Instead of glauber salt, ammonium sulphate (5%) is

used as buffer in metal complex dye to enhance dye uptake.

PLATE 5. SHADE DRYING OF DYED SILK YARNS

The dyed silk hank is placed on swift or natawa, which is a bamboo

frame with a central axis. The natawa frame is round in shape and slightly

narrower in the middle than at the upper and lower ends. The silk hank is placed

on natawa, which is then transferred on to a yarns from two pareta are drawn

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together and laid on to a third pareta. From pareta, the thread is transferred to a

small pirn, by means of hand driven charkha. The entire operation is manually

carried out and mainly performed by the women. The ready pirn, nari is the

package for picking. The pirn is placed in the shuttle, made of buffalo-horn with

a small glazed surface, enabling it to slide rapidly in the shed.

The ‘Kalabattun’ is the zari used as weft is wound on a well polished

simple bamboo stick called kandhi, made from superior quality bamboo,

imported from Upper Bengal. The zari, when used as extra weft is transferred

from bobbin to the small pirn with the help of simple charkha.

Winding

After shaded the yarns with various colour which the weavers requires its

dyed afterwards those yarn makes into dry for one or two days in shady place.

Dyed yarns put into other process like winding, the winding processed by two types

like swift winding and prin winding of silk yarn. This winding process works out

with the help of some properties which is made out of bamboo. (Plate 6 and plate 7)

100

PLATE 6. SWIFT WINDING PLATE 7. PIRN WINDING OF

SILK YARN

Pre-weaving processi

Beaming: Tana tanna, refers to arrangement of warp threads for

beaming locally and Tanihara, is the one who involves in arrangement of warp

threads. The dyed warp yarns are transferred on to a salai, a wooden tube on

one end that revolves freely round a long iron needle, on the other hand. The

ready salai is taken to an open area where a framework is setup for the

arrangement of warp threads. These warp threads are stretched in this open area,

called tana tanna (Plate 8). One end of each thread is attached to a wooden

cylinder, nothing but a four-faced beam, called tur and the other end of each yarn,

fully extended, is attached to a stick by means of ropes which is already tied to a

peg or clamp. The stick .kantia-ka-danda, has a number of iron hooks (called

Kantia) fixed at equidistance. The lease rods (Sakara), always in pairs, are

placed at different intervals throughout the length of warp sheet. Each pair of

lease rods is tied with cotton-twines (Banka-ka-tagla) to hold them together

and to keep lease intact. The ready warp sheet is spread uniformly, and checked

individual yarn for breakage, damage or defects; and if any are duly mended and

101

corrected. This operation is called sahi-karana. The lease rods, samaras are

removed from the warp sheet while the cotton twines are retained intact. The

hooked- stick is then released from the peg and the threads are vigorously

stretched manually. Simultaneously the roller at the other end is rotated

outwards for taut winding of warp threads. This is beaming, called as turai in

regional language, the process of transferring the warp sheet on to the warp

beam. The whole cylinder is then carefully packed and taken to the loom.

ii. Piece work: Saree weaving is always commences from pallav region.

Piece work is a process of joining new warp ends to the corresponding warp

thread of previous saree. Twisting is the technique employed to join the ends

together with the help of gum/glue.

iii. Gaiting the loom: The new warps are then gaited, known as dressing

the loom. In every loom the warp threads are not stretched to the full length of

the sari but it depends upon the longitudinal space available in the room. The

number of harness (Gathwa), reed (Hatha or Kanghi), warp beam (Bhanjni) and

cloth beam (Tur or Lapetan) are tied on to the respective positions. The warp

beam is secured in the middle with a rope which is tied to the peg, called agela

posted in the ground. Generally the warp beam, bhanjni should be at a distance

of 2 ½ to 3 yards and peg, agela at a distance of 4 to 4½ yards away from the

position of weavers. Between the warp beam and cloth beam, a set of lease rods

(Senthas) are placed alternately, in order to complete the loom preparation i.e.

gaiting and then the loom is set for weaving

Weaving of silk sarees

102

The Thirubuvanam silk sarees are woven on throw shuttle pit looms by

single person but for this processes needs a helper. Saree weaving is

accomplished by using one big throw shuttle carrying weft yarn for ground

fabric and many tiny shuttles or pirns carrying silk or zari thread for extra weft

designs. After every two ground picks a separate treadle (Paosar) is operated to

create third shed by jacquard mechanism to produce extra weft patterns of

either zari or silk thread. In other words the extra weft pattern is

produced by swivel technique. (Plate 9). During weaving process, the weaver

sprinkles water on warp sheet (Tana) occasionally with the help of abgir (a

broom-like instrument) to maintain its elasticity, failing which, it would lead to

yarn breakage due to dryness. Thus the Sari is woven with great care and

patience.

PLATE 8 . SAREE WEAVING WITH THROW – SHUTTLE

Taking up and letting off

103

The completion of sari is called reja pujna. The woven cloth (Than or

Reja) is taken up and wound on the cloth beam (Tur) and the process is called

taking up. The woven fabric, when taken off from the loom is called a kora than,

the pure fabric. During letting off, the warp yarns are released from warp

beam (Bhanjni) as and when the woven cloth is taken up.

Cutting and doffing the saree

After completion of each saree an extra length of approximately one

inch is woven and separated from the cloth beam with the help of knife. This

however, helps to prevent the slippage of yarns through the dents. Extra length of

eight to nine inches of warp sheet is left at the back of the harness to which warp

ends of new saree will be twisted, glued and joined. The weaver now begins to

weave the new saree.

Mounting of sarees (Post loom processes)

The saree, after taking out from the loom is carefully folded for

delivery. Formerly, the sarees were given special finish by exclusive workers

called, Kundigar. To add glaze and sheen, the saree is treated with sizing

material. The fabric is mounted on wooden beam (Tur, cloth beam) (Plate 10)

104

PLATE 9. MOUNTING OF SAREE ON BEAM FOR FINISHING

Sizing solution is gently sprayed manually over it with the help of

sprayer and then the saree is tightly wou

nd on the be a m.

Post weaving process

After mounting the silk saree, its ready to market. The woven saree is

dried with cloth beam (Tur) along and later separated from tur (Plate 11).

105

PLATE 10. POLISHING PROCESS

This finishing process is called ‘polishing’. The saree is examined for

flaws and then systematically folded, packed in polyethylene bags.

106

CHAPTER IV

PERFORMANCE OF CO-OPERATIVE SILK SOCIETIES IN

KUMBAKONAM TALUK

This chapter indicates productivity and potentiality of silk Co-operative in

Kumbakaonam Taluk. In a heterogeneous, complex and stratified society like ours,

the position, the dependence and disabilities of small scale enterprises stem from

their multiple restrictions, caused by a variety of economic and social factors, the

level of completion and policy of the state can generally be measured by the level of

oppression and exploitation of indigenous manufacturers in the society. The close

examination of the casual relationship of various economic variables and the

structure of the business, the changing scenario in the silk industries functions

especially after globalization lot of transformation embedded with the structural

changes in the production function as well, thus this section elaborately discussed

the empirical findings of functions, performance and constraints of Silk society in

Kumbakaonam Taluk. This chapter depicts the Co-operative silk society in the study

area, the information encompass capital, working capital and challenges confronted

to Co-operatives.

107

Capacity utilization of Thirubuvanam Co-operative silk society

This section depicts the Thirubuvanam Co-operative silk society which

encompass the operational issues and pecuniary issues pertains to the various

components via procurement of Raw materials, sales, marketing expenditure,

operational expenditure, sources of capital and outstanding loans, since the capacity

of the Co-operative is the manifestation of these elements operational efficiency.

TABLE N0: IV.1

NUMBER OF MEMBERS AND LOOMS

Name of the society

Members

Active Looms

Inactive Looms

Total Looms

Thiruvalluvar 1806

(26.5)

1744

(30.6)

643

(31)

2387

(30.7)

Cholan 1980

(29.1)

1955

(34.3)

294

(14.2)

2249

(28.9)

Darasuram 450

(6.6)

150

(2.6)

387

(18.6)

537

(6.9)

Kalaivanar 282

(4.1)

100

(1.8)

46

(2.2)

146

(1.9)

Super 262

(3.8)

74

(1.3)

23

(1.1)

97

(1.2)

Thirubuvanam 1800

(26.4)

1558

(27.3)

472

(22.7)

2030

(26.1)

Kamarajar 227

(3.3)

126

(2.2)

212

(10.2)

338

(4.3)

Total 6807

(100)

5707

(100)

2077 (100) 7784

(100)

Source : secondary data

108

Table No: IV.1 Explains the number of members, and the looms which

they operate to run their business. Out of seven societies the Cholan co-operative

society is having more in member with the active loom of 34.3 per cent like wise

inactive and its actetive loom accounted in the society were14.2 per cent . Next to

cholan both Thirubuvana and Thiruvalluvar society lies very near percentage. The

level of members in every society were depednds up the on the capacity of the

society. The members level I was not fluctuate for the stduy period.

TABLE NO : IV. 2

SOURCES OF CAPITAL OF THIRUBUVANAM

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Share of members

Reserve Fund Total Capital

2006 200.53 (18.7)

871.40 (81.3)

1071.93

2007 217.53 (19)

925.77 (81)

1143.30 (6.7)

2008 234.99 (19.3)

984.22 (80.7) 1219.21 (6.6)

2009 253.85 (19.5)

1048.22 (80.5)

1302.07 (6.8)

2010 272.28 (19.5)

1125.27 (80.5)

1397.55 (7.3)

2011 286.60 (16.6)

1436.36 (83.4) 1722.96 (23.3)

2012 309.53 (16.9)

1516.79 (83.05)

1826.32 (6.0)

Overall Growth 2006 200.5 871.4 1071.9 2012 309.5

(54.4) 1516.7 (74.1)

1826.3 (70.4)

Source: Secondary data (Audited report of TSCS)

109

FIGURE IV.1

0.0

500.0

1000.0

1500.0

2000.0

2006 2007 2008 2009 2010 2011 2012

1071.9 1143.3 1219.2 1302.1 1397.6

1723.01826.3

Source of Capital

Table.4.2. depicts the sources of capital of Thirubuvanam co-operative

silk producer during the study period, as 18.7 percent of the capital generated

through share of members in 2006 which is declined to 16.9 percent in 2012, none of

the money received as share of capital during the study period, around 81.3 percent

of the fund generated through reserve fund in 2006 which was enhanced to 83.05

percent in 2012, with respect to overall growth performance around 2 crores and 53

thousand of fund raised through share of members which was increased to 3 crores 9

lakhs and 52 thousands in 2012 with the hike of 54.4 percent, none of the fund

raised from share from Government, nearly 8 crores and 71 lakhs have generated

through reserve fund in 2006 which enhanced to 15 crores 16 lakhs and 79

thousands in 2012 with the increase of 74.1 percent with regard to overall capital 10

crores 71 lakhs and 93 thousands have raised in 2006 which is enhanced to 18 crores

26 lakhs and 32 thousands in 2012 with the hike of 70.4 percent, as there had been a

positive trend found in capital generation through various sources, the financial

110

position of the Thirubuvabuvanam appears relatively sound to invest from their

reserve fund during the study period since the operational efficiency of the silk with

its own experience and the strategies to adopted in the functional arena enable them

to obtain the sound financial position which accentuated proportion of own reserve

contribution towards capital for the Thirubuvanam silk producers in the study area.

TABLE NO: IV.3

SALES OF THIRUBUVANAM CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Direct Sales Sales through

Exhibition

Sales through Agent

Sales through Co-operative

Total Sales

Amount Rs. Amount Rs. Amount Rs. Amount Rs. 2006 1649.98

(60.6) - 1063.46

(39) 11.11 (0.4)

2724.55

2007 1775.24 (65.9)

- 905.91 (33.6)

13.06 (0.5)

2694.21 (-1.1)

2008 2067.94 (66.3)

- 1033.38 (33.1)

16.63 (0.5)

3117.95 (15.7)

2009 2417.44 (71.3)

- 955.44 (28.2)

18.98 (0.6)

3391.86 (8.8)

2010 2596.79 (75.7)

- 797.15 (23.2)

38.53 (1.1)

3432.47 (1.2)

2011 2864.36 (77.1)

- 823.36 (22.2)

29.27 (0.8)

3716.9 (8.3)

2012 3150.79 (76.8)

- 922.16 (22.5)

31.61 (0.8)

4104.5 (10.4)

Overall Growth 2006 1649.98 1063.46 11.1 2724.5 2012 3150.79

(91) 922.16

320 (-13.3) 31.6

(184.5) 4104.5 (50.7)

Source: Secondary data (Audited report of TSPCS):

111

2724.6 2694.23118.0

3391.9 3432.53716.9

4104.5

0.0500.0

1000.01500.02000.02500.03000.03500.04000.04500.0

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

FIGURE IV.2

Table No: IV.3. exemplifies the value of the sales of silk products through

various sources of Thirubuvanam Co-operative silk society in study period, with

regard to direct sales around 60.6 percent of the value of sales obtained in 2006

which is increased 76.8 percent in 2012, with regard to sales through exhibition

none of the sales taken place under this category, with respect to sales through age

around 39 percent of the sales made in 2006 and which was decline to 22.5 percent

in 2012,, in connection with the sales through Co-operative nearly 0.4 percent sales

made under this category and increased to 0.8 percent in 2012.with regard to overall

changes around 16 crores 49 lakhs and 98 thousands in 2006 which is increased to

31 crores 50 lakhs and 80 thousands in 2012 with the hike of 91 percent of direct

sales taken place during the period. They do not sold anything through exhibition

during the study period, 10 crores 63 lakhs and 46 thousands worth of silk products

sold through commission agents in 2006 which declined to 9 crores 22 lakhs and 16

thousands in 2012 with the decline of 13.3 percent, through Co-operative they sold

11 lakhs and 11 thousands in 2006 which increased to 31 lakhs and 61 thousands in

2012 with the hike of 184.5 percent, at the outset overall value of the silk product

sole were 27 crores 24lakhs and 55 thousands which is increased to 41 crores 4lakhs

112

and 57 thousand with the hike of 50.7 during the study period, it is apparent from

the empirical findings that Thirubuvanam Co-operative silk society witnessed

consistent and concurrent escalation from all the sources of sales during the study

period as the society got sound marketing strategies and traditional customers for a

long time it also obtained the large chunk of customers who have been traditionally

wanted to purchase from Thirubuvanam silk producers as it stand in the market for a

long period of time which enhance the confidence level of the customers in the same

line the silk producers adopting new innovative designs and marketing strategies

which keep the Thirubuvanam sales trend in positive trend over the period of time.

TABLE NO: IV.4

PURCHASE OF MATERIAL OF THIRUBUVANAM CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Yarn Zari Chemicals Total Expenditure

Amount Amount Amount Amount 2006 28.65

(22.3) 93.05 (72.3)

6.96 (5.4) 128.65

2007 33.63 (19.6)

131.13 (76.4)

6.94 (4)

171.69 (33.5)

2008 33.86 (19.5)

133.84 (77.2)

5.57 (3.2)

173.27 (0.9)

2009 24.55 (12.4)

167.74 (84.4)

6.51 (3.3)

198.81 (14.7)

2010 38.78 (17.3)

181.25 (80.9)

4.10 (1.8)

224.14 (12.7)

2011 42.36 (18.1)

187.28 (80.1)

4.26 (1.8)

233.90 (4.4)

2012 45.75 (18.8)

202.26 (79.2)

4.60 (2)

252.61 (8)

Overall Growth 2006 28.6 93.0 6.9 128.6 2012 45.7

(47.8) 202.2

(117.4) 4.2

(-33.9) 233.9 (96.3)

Source: Secondary data (Audited reports of TSPCS)

113

Table No: IV. 4 depicts the value of the raw materials purchased by

Thirubuvanam Co-operative silk society during the study period, with respect to

yarn purchase about 22.3 percent of the total raw materials purchase incurred in

2006 and then onwards value of purchase slightly fluctuated and in 2012 it come

down to 18.1 percent with slight decline from 2006,with respect to zari purchase

nearly 72.3 percent of the total raw materials purchase incurred in 2006 and then

onwards value of purchase consistently increased and in 2012 it gone up to 79.2

percent with significant escalation from 2006,with regard to Chemical purchase

around 5.4 percent of the total raw materials purchase incurred in 2006 and then

onwards value of purchase consistently decreased and in 2012 it had decline to 2

percent with significant decline from 2006, with regard to total expenditure there

has been consistent increase during the period.

The overall growth of the various components witnessed steady hike, the

Co-operative silk society spent around 28 lakhs and 64 thousand in 2006 which is

increased during the study period, as the marketing expenditure is the prominent

expenditure with induce the sales and the production, the statistical evidence

indicated that Thirubuvanam Co-operative silk society have spent consistently

during the study period. In connection with zari procurement in 2006 the Co-

operative spent nearly 93 lakhs which is increased to nearly 2 crores and 2 lakhs

with the hike of 117.4 percent, for chemical purchase around 7 lakhs spent on 2006

and which is declined to 4 lakhs and 60 thousand with the decline of 33.9 percent at

the outset total raw material purchase for Thirubuvanam Co-operative silk society

was around 1 core and 30 lakhs which is increased 2 crores and 53 lakhs in 2012

with the hike of 96.3 percent, It could be inferred from the empirical findings that

consistent increase witnessed during study period as the sales and production

increased rapidly it is obvious that the marketing expenditure witnessed

114

corresponding escalation, in the same line the more sales entail the increase in

commission to the sales and the trade charges moreover co-operative silk producers

bound to spare the significant portion towards commission as co-operatives obliged

to spare the same irrespective of margin of profit, since the co-operatives use

functioning for the cause of welfare of the stakeholders rather than mere profit

alone.

TABLE NO: IV.5

OPERATIONAL EXPENDITURE OF THIRUBUVANAM CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Estab.Exp Trade Exp Bonus to Weavers

Int on Borrowing

Total Expenditure

2006 14.39 (0.8)

550.28 (29.3) 1300.31 (69.2)

13.04 (0.7)

1878.02

2007 18.32 (0.9)

496.57 (25.6)

1405.16 (72.5)

18.34 (0.9)

1938.39

2008 16.43 (0.9)

538.34 (28.3)

1327.24 (69.8)

19.36 (1)

1901.37

2009 17.30 (0.7)

498.30 (21.2)

1832.73 (77.8)

6.65 (0.3)

2354.98

2010 18.36 (0.8)

518.02 (21.4)

1880.73 (77.6)

7.42 (0.3)

2424.53

2011 19.27 (0.7)

546.12 (19.9)

2167.53 (79.1)

8.37 (0.3)

2741.29

2012 22.84 (0.8)

585.99 (20.4)

2260.73 (78.5)

8.84 (0.3)

2878.40

Overall Growth 2006 14.3 550.2 1300.3 13.0 1878.0 2012 22.8

(58.7) 585.9 (6.5)

2260.7 (73.9)

8.8 (-32.2)

2878.3 (53.3)

Source: Secondary data (Audited report of TSPCS)

115

Table No:. IV.5 depicts the operational expenditure of the Thirubuvanam

silk Co-operative silk society during the study period, with regard to establishment

expenditure around 0.8 percent of the expenditure made under this category and

remained same proportion in 2012, with respect to Trade expenditure around 29.3

percent of the expenditure made under this classification and declined to 20.4

percent in 2012, with regard to bonus to weavers around 69.2 percent of the

expenditure made out of the total expenditure in 2006 and increased 78.5 in 2012,

nearly 0.7 percent spent towards interest payment for the borrowing in 2006 and

which is declined to 0.3 percent in 2012, with respect to overall growth. Around 14

lakhs and 38 thousands in 2006 which is increased to 2 crores 22 lakhs and 83

thousands in 2012 with the hike of 58.7 percent of expenditure occurred on

establishment cost, around 5 crores 50 lakhs and 28 thousands in 2006 which is

increased to 5 crores 85 lakhs and 98 thousands in 2012 with the hike of 6.5

percent of expenditure occurred on trade charges during the study period, about

13 crores and 31 thousands in 2006 which is increased to 22 crores 60 lakhs and 73

thousands in 2012 with the hike of 73.9 percent of expenditure occurred on bonus

to weavers during the study period, with respect to interest payment towards

borrowing about 13 lakhs and 4 thousands in 2006 which is decreased to 8 lakhs

and 38 thousands in 2012 with the hike of 32.2 percent of expenditure occurred on

bonus to weavers during the study period, at the outset overall value of the

operational expenditure was 18 crores 78 lakhs and one thousand which is

increased to 28 crores 78 lakhs and 39 thousand with the hike of 53.3 during the

study period, as the Co-operatives had the standard norms on the expenditure pattern

irrespective of the sales and production since the Co-operatives are with the vested

interest to protect the weavers, thus, the operational expenditure have been

116

escalating even though there was not corresponding increase in sales and production

during the study period.

TABLE NO: IV.6

MARKETING EXPENDITURE INCURRED BY THIRUBUVANAM

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Commission to consumer

Commission to selling

agent

Salary to sales

Person

Advertisement Total Expenditure

2006 214.73

(76.5)

54.72

(19.5)

1.76

(0.6)

9.31

(3.3)

280.52

2007 227.35

(81)

45.47

(16.2)

1.96

(0.7)

5.76

(2.1)

280.54

2008 444.26

(89)

43.75

(8.8)

2.25

(0.5)

8.87

(1.8)

499.13

2009 384.27

(83.5)

63.59

(13.8)

2.25

(0.5)

10.16

(2.2)

460.27

2010 400.03

(87.2)

46.70

(10.2)

2.70

(0.6)

9.07

(2)

458.50

2011 462.76

(86.7)

58.60

(11)

2.70

(0.5)

9.42

(1.8)

533.48

2012 534.95

(87.8)

61.71

(10.1)

2.81

(0.5)

10.01

(1.6)

609.48

Overall Growth

2006 214.73 54.72 1.7 9.3 280.5

2012 534.95

(149.1)

61.7

(12.8)

2.8

(59.9)

10.0

(7.6)

609.4

(117.3)

Source: Secondary data (Audited report of TSPCS)

117

Table.IV.6 Depicts the marketing expenditure of the Thirubuvanam silk

co-operative silk society during the study period, with regard to commission to

consumer around 76.5 percent of the expenditure made under this category and

increased to 87.8 percent in 2012, with respect to commission to selling agent

around 19.5 percent of the expenditure made under this classification and declined to

10.1 percent in 2012, with regard to salary to sales person around 0.6 percent of

the expenditure made out of the total expenditure in 2006 and slightly declined in

2012 with 0.5 percent,nearly 3.3 percent spent towards advertisement in 2006 and

which is declined to 1.6 percent in 2012, with respect to overall growth, around 2

crores 14 lakhs and 73 thousands in 2006 which is increased to 5 crores 34 lakhs

and 95 thousands in 2012 with the hike of 149.1 percent of expenditure occurred on

commission to consumer during the period, around 54 lakhs and 72 thousands in

2006 which is increased to 61 lakhs and 70 thousands in 2012 with the hike of 12.8

percent of expenditure incurred on commission to selling agent during the period,

around 1 lakh and 76 thousands in 2006 spent towards salary which is increased to 2

lakhs and 81 thousands in 2012 with the hike of 59.9 percent, around 9 lakh and 31

thousands in 2006 spent towards advertisement which is increased to 10 lakhs and

one thousand in 2012 with the hike of 7.6 percent, at the outset overall value of the

marketing expenditure was 2 crores 80 lakhs and 52 thousands which is increased to

6 crores 9 lakhs and 48 thousand with the hike of 117.3 during the study period,

as the marketing expenditure is the prominent expenditure with induce the sales and

the production, the statistical evidence indicated that Thirubuvanam Co-operative

silk society have spent consistently during the study period.

118

TABLE NO:. IV. 7

SOURCE OF LOAN OF THIRUBUVANAM CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year

Deposit’s from

members

Cash credit from

kumbakonam central co-

operative bank

Total Outstanding

2006 724.62

(95.7)

32.55

(4.3)

751.717

2007 794.56

(74.2)

276.11

(25.8)

1070.67

(41.4)

2008 849.87

(89.2)

102.49

(10.8)

952.36

(-11.1)

2009 894.57

(96)

36.94

(4)

931.55

(-2.2)

2010 924.43

(96.9)

29.26

(3.1)

953.69

(2.4)

2011 986.57

(98.5)

15.43

(1.5)

1002.00

(5.1)

2012 1071.42

(98.9)

1213

(1.1)

1083.54

(8.1)

2006 724.6 3255000 757.1

2012 1071.4

(47.9)

1212798

(-62.7)

1083.5 (43.1)

Source: Secondary data (Audited report of TSPCS)

119

Table No: IV.7 during the study period as the outstanding of loans would

revealed the financial distress of the organization, nearly 95.7 percent of the

outstanding loans owe to members of Co-operativeertaive society, around 4.3

percent borrowed from Kumbakonam Central Co-operative bank in 2006 which

Table No: No:. 4.6 depicts the outstanding of loans of the Thirubuvanam Co-

operative silk society was 98.9 percent and 1.1 percent from depositors and central

Co-operative silk societys in 2012 respectively, with regard to overall growth nearly

7 crores 24 lakhs and 62 thousands fund owe to depositors in 2006 and which

increased to 10 crores 71 lakhs and 41 thousands in 2012 with the hike of 47.9

percent, with regard to outstanding of loans from Kumbakonam central Co-operative

bank nearly 32 lakhs and 55 thousands owe to bank in 2006 which is declined to 12

lakhs and 12 thousands in 2012, as the institutional credit have declined during the

study period which connoted that the financial position of the Co-operative silk have

been sound and improved during the study period, it might because the

Thirubuvanam silk co-operative have sound financial as well as business structure

last for longer period of time.

120

TABLE NO: IV. 8

SOURCES OF CAPITAL OF CHOLAN CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Share from Govt Reserve Fund Total Capital

2006 42.15

(55.5)

33.81

(44.5)

76.0

2007 51.18

(58.9)

35.75

(41.1)

86.9

(14.4)

2008 49.77

(57)

37.52

(43)

87.3

(0.4)

2009 49.77

(57)

37.52

(43)

87.3

(0)

2010 53.32

(58.7)

37.52

(41.3)

90.8

(4.1)

2011 58.66

(61)

37.52

(39)

96.2

(5.9)

2012 62.29

(61.9)

38.39

(38.1)

10.1

(4.7)

Overall Growth

2006 42.14 33.81 75.9

2012 62.2 38.3

(13.5)

100.6

(32.5)

Source: Secondary data (Audited report of TSPCS)

121

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011 2012

76.186.9 87.3 87.3 90.8

96.2

10.1

Source of Capital

Source of Capital

FIGURE IV.3

Table No:.IV.8 the sources of capital of Cholan Co-operative silk society

during the study period, as 55.5 percent of the capital generated through share of

members in 2006 which is increased to 61.9 percent in 2012, none of the money

received as share of capital during the study period, around 44.5 percent of the fund

generated through reserve fund in 2006 which was declined to 38.1 percent in 2012,

with respect to overall growth performance around 42 thousand of fund raised

through share of members which was increased to 62 lakhs and 29 thousands in

2012 with the hike of 47.8 percent, none of the fund raised from share from

Government, nearly 33 lakhs and 81 thousands have generated through reserve

fund in 2006 which enhanced to 38 lakhs and 38 thousands in 2012 with the increase

of 13.5 percent with regard to overall capital 75 lakhs and 96 thousands have raised

in 2006 which is enhanced to 1 crore and 68 thousands in 2012 with the hike of 32.5

percent, as there had been a positive trend found in capital generation through

various sources, the financial position of the Cholan appears relatively sound to

invest from their reserve fund as the larger co-operatives have got more members

and their contribution in terms of subscription would be more thus the financial

122

position of cholan co-operative appears to high in the same line their business also

relatively higher which accentuate the cholan co-operatives to rely largely on their

own funding for the working capital in the study period.

TABLE NO: IV.9

SALES OF CHOLAN CO-OPERATIVE SILK SOCIETY

(Rs. in Lakhs)

Year Direct Sales

Sales through

Exhibition

Sales through Agent

Sales through Co-operative

Total Sales

2006 2144.97 (60.6)

- 1382.49 (39.0)

14.44 (0.4)

3541.9

2007 1242.66 (65.9)

- 634.14 (33.6)

9.14 (0.5)

1885.94 (-46.8)

2008 1447.56 (66.3)

- 723.37 (33.1)

11.64 (0.5)

2182.56 (15.7)

2009 1450.46 (71.3)

- 573.26 (28.2)

11.39 (0.6)

2035.11 (-6.8)

2010 1558.07 (75.7)

- 478.29 (23.2)

23.12 (1.1)

2059.48 (1.2)

2011 1718.62 (77.1)

- 494.02 (22.2)

17.56 (0.8)

2230.19 (8.3)

2012 1856.11 (85.5)

- 540.95 (9.5)

18.62 (6)

2415.6 (8.3)

Overall Growth

2006 2144.9 1382.49 14.4 354.1

2012 1856.1 (-13.5)

540.9 (-60.9)

18.6 (28.9)

2415.6 (-31.8)

Source: Secondary data (Audited report of CSPCS)

123

3541.9

1885.942182.56 2035.11 2059.48 2230.19

2415.6

0

500

1000

1500

2000

2500

3000

3500

4000

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

FIGURE IV.4

Table No: IV 9 demonstrates the value of the sales of silk products

through various sources of Cholan Co-operative silk society in study period, with

regard to direct sales around 60.6 percent of the value of sales obtained in 2006

which is decreased 39 percent in 2012, with regard to sales through exhibition none

of the sales taken place under this category, with respect to sales through agent

around 39 percent of the sales made in 2006 and which was decline to 33.6 percent

in 2012,, in connection with the sales through Co-operative nearly 0.4 percent sales

made under this category and increased to 6 percent in 2012,with regard to overall

changes around 21 crores 44 lakhs and 98 thousands in 2006 which is decreased to

18 crores 56 lakhs and 10 thousands in 2012 with the decline 13.5 of direct sales

taken place during the period, they didn’t sold anything through exhibition during

the study period, 13 crores 82 lakhs and 24 thousands worth of silk products sold

through commission agents in 2006 which declined to 5 crores 40 lakhs and 94

thousands in 2012 with the decline of 60.9 percent, through Co-operative they sold

14 lakhs and 44 thousands in 2006 which increased to 18 lakhs and 61 thousands in

2012 with the hike of 28.9 percent, at the outset overall value of the silk products

124

sole were 35 crores 41 lakhs and 91 thousands which is decreased to 24 crores 41

lakhs and 57 thousand with the decline of 31.8 during the study period, it is

apparent from the empirical findings that Cholan Co-operative silk society

witnessed constant and simultaneous decline in the sales throughout the study

period except the hike in Co-operative sales as it shown that the institutionalized

marketing facilities enabled them to enhance the sales in better way at the outset all

the sources of sales during the study period have been showing decline except Co-

operative during the study period.

TABLE NO:. IV. 10

COST OF RAW MATERIAL OF CHOLAN CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Yarn Zari Chemical Total

2006 52.22 (28.1)

132.33 (71.2)

1.41 (0.8)

185.96

2007 40.76 (19.6)

166.33 (79.9)

1.17 (0.6)

208.27 (12)

2008 54.46 (26.6)

149.34 (72.9)

1.14 (0.6)

204.94 (-1.6)

2009 35.40 (19.7)

143.32 (79.8)

0.79 (0.4)

179.49 (-12)

2010 44.39 (24.8)

133.76 (74.7)

0.98 (0.5)

179.12 (-0.2)

2011 48.75 (26) 137.86 (73.5)

0.89 (0.5)

187.51 (4.7)

2012 52.17 (24.0) 147.52 (0.5)

0.96 (0.5)

200.64 (7.0)

Overall Growth 2006 52.2 132.3 1.4 185.9 2012 52.1

(-0.08) 147.5 (11.5)

0.9 (-32.9)

200.6 (7.9)

Source: Secondary data( Audit report of CSPCS)

125

186.0

208.3204.9

179.5 179.1

187.5

200.6

160.0165.0170.0175.0180.0185.0190.0195.0200.0205.0210.0215.0

2006 2007 2008 2009 2010 2011 2012

Total sales

Total sales

FIGURE IV.5

Table No:. IV.10 illustrates the value of the raw materials purchased by

Cholan Co-operative silk society during the study period, with respect to yarn

purchase about 28.1 percent of the total raw materials purchase incurred in 2006

and then onwards value of purchase slightly fluctuated and in 2012 it come down to

24 percent with slight decline from 2006,with respect to zari purchase nearly 71.2

percent of the total raw materials procurement incurred in 2006 and then onwards

value of purchase constantly augmented and in 2011 it gone up to 75.5 percent

with significant acceleration from 2006,with regard to Chemical purchase around

0.8 percent of the total raw materials spent on chemicals purchase in 2006 and then

onwards value of purchase consistently decreased and in 2011 it had decline to 0.5

percent with mild decline from 2006, with regard to total expenditure there has been

consistent increase during the period.

The overall growth of the various components witnessed steady hike, the

Co-operative silk society spent around 52 lakhs and 20 thousand in 2006 which is

decreased to around 52 lakhs and 17 thousand in 2012 with the decline 0.08

percent, in connection with zari procurement in 2006 the Co-operative spent nearly

1 crore 32 lakhs which is increased to nearly 1 crores and 47 lakhs with the hike of

126

11.5 percent, for chemical purchase around 1lakhs spent 41 thousands on 2006 and

which is declined to 95 thousands with the decline of 33.9 percent at the outset

total raw material purchase for Cholan Co-operative silk society was around 1 crore

and 85 lakhs which is increased 2 crores and 60 thousands in 2012 with the hike of

7.9 percent, it is apparent from the empirical verification that there has been

consistent increase in raw materials procurement as climatic conditions affects the

sericulture production at large and the labour cost for sericulture activities also

escalating which substantially had impact on the hike of silk yarn and in the same

line private players pressure also hiked.

TABLE NO: IV. 11

OPERATIONAL EXPENDITURE OF CHOLAN CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year Est ab.Exp Trade .Exp

Bonus to Weavers

Total Expenditure Estab.Exp

2006 17.05 (12.9)

74.98 ( 56.7)

4.29 (3.2)

35.90 (27.1)

132.2

2007 23.47 (16.9)

74.29 (53.5)

4.80 (3.5)

36.40 (26.2)

138.9 (5.1)

2008 27.45 (17.2)

89.13 (55.9)

4.33 (2.7)

38.64 (24.2)

159.5 (14.8)

2009 27.73 (20.5)

67.13 (49.7)

- 40.24 (29.8)

135.0 (-15.3)

2010 25.29 (20.4)

51.08 (41.3)

- 47.34 (38.3)

123.7 (-8.4)

2011 21.80 (16.6)

56.80 (43.2)

- 52.77 (40.2)

131.3

2012 20.25 (14.9)

59.01 (43.4)

0 56.62 (41.7)

135.8 (3.4)

2006 17.0 74.9 429104 35.8 132.2 2012 20.2

(18.7) 59.0

(-21.3) 0 56.6

(57.7) 135.8 (2.8)

Source: Secondary data (Audited report of CSPCS)

127

Table No.IV.11 depicts the operational expenditure of the Cholan silk

Co-operative silk societysdurin g the study period,with regard to establishment

expenditure around 12.9 percent of the expenditure made under this category and

incarsed to 14.9 percent in 2012, with respect to Trade expenditure around 56.7

percent of the expenditure made under this classification and declined to 43.4

percent in 2012, with regard to bonus to weavers around 3.2 percent of the

expenditure made out of the total expenditure in 2006 and which was curtailed in

2012,nearly 27.1 percent spent towards interest payment for the borrowing in 2006

and which is increased to 41.7 percent in 2012, with respect to overall growth,

around 17 lakhs and 05 thousands in 2006 which is increased to 20 lakhs and 24

thousands in 2012 with the hike of 18.7 percent of expenditure occurred on

establishment cost, around 74 lakhs and 98 thousands in 2006 which is decreased to

59 lakhs and a thousand in 2012 with the decline of 21.3 percent of expenditure

occurred on trade charges during the study period, about 4 lakhs and 29 thousands

in 2006 which is curtailed in 2012 for expenditure on bonus to weavers during the

study period, with respect to interest payment towards borrowing about 35 lakhs

and 89 thousands in 2006 which is increased to 56 lakhs and 62 thousands in 2012

with the hike of 57.7 percent of expenditure occurred on bonus to weavers during

the study period, at the outset overall value of the operational expenditure was 1

crore 32 lakhs and one thousand which is increased to 1 crore 35 lakhs and 58

thousand with the hike of 2.8 during the study period, as the Co-operatives had

the standard norms on the expenditure pattern irrespective of the sales and

production since the Co-operatives are with the vested interest to protect the weavers

but the financial distress forced them to curtailed the bonus to the weavers during

the study period but the interest payment expenses more alarmingly, thus, the

128

operational expenditure have been escalating even though there was not

corresponding increase in sales and production during the study period.

TABLE NO: IV. 12

MARKETING EXPENDITURE INCURRED BY CHOLAN CO-

OPERATIVESILK SOCIETY

( Rs in Lakhs)

Year Commission to consumer

Commission to selling

agent

Salary to sales Person

Advertisement Total Expenditure

2006 171.78

(75.2)

46.51 (20.4)

1.60

(0.7)

8.47

(3.7)

228.3

2007 209.16

(81.4)

40.92

(15.9)

1.57

(0.6)

5.30

(2.1)

256.9

(12.5)

2008 386.51

(89.9)

33.69 (7.8)

1.94

(0.5)

7.63 (1.8)

429.75

(67.3)

2009 353.53

(84.1)

56.60

(13.5)

2.07

(0.5)

8.13

(1.9)

420.3

(-2.2)

2010 360.03

(87.4)

42.50

(10.3)

2.30

(0.6)

7.17

(1.7)

411.98

(-2)

2011 402.60

(86.9)

49.81

(10.7)

2.30

(0.5)

8.67

(1.9)

463.37

(12.5)

2012 457.35

(87.4)

53.99

(10.3)

2.46

(0.5)

9.21

(1.8)

523.0

(12.9)

Overall Growth

2006 171.7 46.51 1.6 8.4 228.36

2012 457.3

(166.2)

53.9

(16.09)

2.4

(53.8)

9.2

(8.7)

523.0

(129)

Source: Secondary data (Audited report of CSPCS)

129

Table No:. IV.12depicts the marketing expenditure of the Cholan silk Co-

operative silk societys during the study period,with regard to commission to

consumer around 75.2 percent of the expenditure made under this category and

increased to 87.4 percent in 2012, with respect to commission to selling agent

around 20.4 percent of the expenditure made under this classification and declined to

10.3 percent in 2012, with regard to salary to sales personnel around 0.7 percent

of the expenditure made out of the total expenditure in 2006 and slightly declined in

2012 with 0.5 percent, nearly 3.7 percent spent towards advertisement in 2006 and

which is declined to 1.8 percent in 2012, with respect to overall growth, around

1crores 71 lakhs and 78 thousands in 2006 which is increased to 4 crores 57 lakhs

and 35 thousands in 2012 with the hike of 166.2 percent of expenditure occurred on

commission to consumer during the period, around 46 lakhs and 51 thousands in

2006 which is increased to 53 lakhs and 99 thousands in 2012 with the hike of

16.09 percent of expenditure incurred on commission to selling agent during the

period.

Around 1 lakh and 60 thousands in 2006 spent towards salary which is

increased to 2 lakhs and 46 thousands in 2012 with the hike of 53.8 percent, around

8 lakh and 47 thousands in 2006 spent towards advertisement which is increased to 9

lakhs and 21 thousand in 2012 with the hike of 8.7 percent, at the outset overall

value of the marketing expenditure was 2 crores 28 lakhs and 83 thousands which is

increased to 5 crores 23 lakhs and 2 thousand with the hike of 129 percent during

the study period, as the marketing expenditure is the important component of the

expenditure structure of Cholan Co-operative silks which enables the sales

promotion, however, irrespective sales level societies bound to provide the entitled

130

privileges to the weavers so the expenditure appears escalating without concerning

the corresponding increases in sales level.

TABLE NO: IV.13

OUTSTANDING LOANS OF CHOLAN CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year

Deposit’s from members Total Outstanding

2006 199.1

(100) 199.2

2007 222.5

(100)

222.5

(11.7)

2008 228.2

(100)

228.3

(2.5)

2009 228.2

(100)

228.3

(0)

2010 228.2

(100)

228.3

(0)

2011 197.5

(100)

197.5

(-13.4)

2012 184.6

(100)

184.7

(-6.5)

Overall Growth

2006 199.1 199.1

2012 184.6

(-7.3)

184.6

(-7.3)

Source: Secondary data (Audited report of CSPCS)

131

Table No: IV. 13 depicts the outstanding of loans of the Cholan Co-

operative silk society during the study period as the outstanding of loans would

revealed the financial distress of the organization, 100 percent of the outstanding

loans owe to members of Co-operative society, with regard to overall growth nearly

1 crores 99 lakhs and 15 thousands fund owe to depositers in 2006 and which

decreased to 1 core 84 lakhs and 66 thousands in 2012 with the decline of 7.3

percent, which implies that the members of the cholan have been delinking

significantly during the study period in the same line Cholan Co-operative ertaive do

not availed institutional credits during the study period.

TABLE NO: IV.14

SOURCES OF CAPITAL OF DHARASURAM CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year Share of members Share from Govt

Reserve Fund

Total Capital

2006 11.45 (34.9)

19.01 (58.0)

2.30 (7.0)

32.75

2007 10.64 (33.3)

19.02 (58.1)

2.30 (7.0)

31.95 (-2.5)

2008 11.64 (35.3)

19.01 (58.0)

2.30 (7.0)

32.94 (3.1)

2009 11.11 (34.3)

19.01 (58.0)

2.30 (7.0)

32.42 (-1.6)

2010 12.11 (36.2)

19.01 (58.1)

2.30 (7.0)

33.41 (3.1)

2011 12.31 (36.6)

19.01 (58.1)

2.30 (7.0)

33.62 (0.6)

2012 12.58 (37.1)

19.01 (58.1)

2.30 (7.0)

33.89 (0.8)

Overall Growth 2006 11.4 19.0 2.30 32.7 2012 12.5

(9.9) 19.0 (0) 2.30 (0) 33.8(3.5)

Source: Secondary data (Audited report of DSPCS)

132

30.5

31

31.5

32

32.5

33

33.5

34

2006 2007 2008 2009 2010 2011 2012

32.75

31.95

32.94

32.42

33.4133.62

33.89

Total Capital

Total Capital

FIGURE IV.6

Table No: IV.14 portrays the sources of capital of Dharasuram Co-

operative silk society during the study period, as 34.9 percent of the capital

generated through share of members in 2006 which is increased to 37.1 percent in

2012, around 58 percent of the capital generated through share from Government in

2006 which is declined to 56.1 percent in 2012, around 7 percent of the fund

generated through reserve fund in 2006 which was declined to 6.8 percent in 2012,

with respect to overall growth performance around 1 lakh 14 thousand of fund

raised through share of members which was increased to 1 lakh and 58 thousands in

2012 with the hike of 9.9 percent, around 1 lakh and 90 thousand raised from share

from Government and remained same in 2012 as well, nearly 2 lakhs and 29

thousands have generated through reserve fund in 2006 which also remained same

in 2012, with regard to overall capital 32 lakhs and 75 thousands have raised in 2006

which is enhanced to 33 lakhs and 88 thousands in 2012 with the hike of 3.5

percent, share of the government and reserve fund have neither increased nor

133

decreased during the study period but depositors portion witnessed moderate

escalation during the study period, the Co-operatives have got the institutionalized

support from the Government and got moderate support from own sources during

the study period.

TABLE NO: IV.15

SALES OF DHARASURAM CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Direct Sales Sales through Agent

Sales through Co-operative

Total Sales

2006 10.73

(60.6)

6.91

(39.1)

0.07

(0.4)

17.7

2007 6.21

(65.9)

3.17

(33.6)

0.05

(0.5)

9.4

(-46.8)

2008 7.24

(66.3)

3.61

(33.1)

0.06

(0.5)

10.9

(15.7)

2009 7.25

(71.3)

2.87

(28.2)

0.06

(0.6)

10.2

(-6.8)

2010 7.79

(75.7)

2.39

(23.2)

0.11

(1.1)

10.3

(1.2)

2011 8.59

(77.1)

2.47

(22.2)

0.08

(0.8)

11.2

(8.3)

2012 9.45

(77.2)

2.70

(22.1)

0.9

(0.9)

12.3

(9.9)

Overall Growth

2006 10.7 6.9 0.07 17.7

2012 9.4

(-11.9)

2.7

(-60.9)

0.9

(30.8)

12.2

(30.8)

Source : Secondary data (Audited report of DSCS)

134

17.7

9.410.9 10.2 10.3 11.2

12.3

02468

101214161820

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

FIGURE IV.6

Table No: IV.14 demonstrates the value of the sales of silk products

through various sources of Dharasuram Co-operative silk society in study period,

with regard to direct sales around 60.6 percent of the value of sales obtained in 2006

which is increased 77.2 percent in 2012, with regard to sales through exhibition

none of the sales taken place under this category, with respect to sales through agent

around 39 percent of the sales made in 2006 and which was decline to 22.1 percent

in 2012,, in connection with the sales through Co-operative nearly 0.4 percent sales

made under this category and increased to 0.8 percent in 2012,with regard to overall

changes around 10 lakhs and 72 thousands in 2006 which is decreased to 9 lakhs

and 45 thousands in 2012 with the decline 11.9 of direct sales taken place during the

period, they didn’t sold anything through exhibition during the study period, 6 lakhs

and 91 thousands worth of silk products sold through commission agents in 2006

which declined to 2 lakhs and 70 thousands in 2012 with the decline of 60.9 percent,

through Co-operative they sold 7 thousands in 2006 which increased to 9 thousands

in 2012 with the hike of 30.8 percent, at the outset overall value of the silk products

135

sole were 17 lakhs and 70 thousands which is decreased to 12 lakhs and 25 thousand

with the decline of 30.8 during the study period, it is apparent from the empirical

findings that Dharasuram Co-operative silk society have made significant decline in

the sales throughout the study period as the multiple competition and the lack of

proper marketing mechanism adopted were might be the responsible for decline in

the sales during the study period.

TABLE NO: IV. 16

DHARASURAM CO-OPERATIVE PURCHASE OF RAW MATERIALS

(Rs in Lakhs)

Year Yarn Zaire Chemical Total

2006 1.50 (52.1)

.80 (27.8)

.58 (20.1)

2.88

2007 1.63 (71.6)

.96. (12.3)

1.26 (16.1)

7.82 (171.5)

2008 15.20 (85.5)

1.20 (6.7)

1.38 (7.8)

17.78 (127.4)

2009 16.00 (84.3)

1.50 (7.9)

1.48 (7.8)

18.98 (6.7)

2010 17.00 (84)

1.60 (7.9)

1.63 (8.1)

20.23 (6.6)

2011 14.30 (86.4)

.98 (5.6)

1.27 (7.7)

16.55 (-18.2)

2012 15.55 (88.0)

1.0 (6.2)

1.06 (5.8)

17.67 (6.7)

2006 1.5 0.80 0.58 2.8

2012 15.5 (936.8)

1.05 (31.7)

1.05 (82.7)

17.6 (513.4)

Source: Secondary data (Audited report of DSPCS)

136

Table No: IV.16 illustrates the value of the raw materials purchased by

Dharasuram Co-operative silk society from 2006 to 2011, with regard to yarn

purchase about 52.1 percent of the total raw materials purchase incurred in 2006

and then onwards value of purchase consistently shown ascending tend and in 2012

it gone to 88.4 percent with significant escalation from 2006,with respect to zari

purchase nearly 27.8 percent of the total raw materials procurement incurred in

2006 and then onwards value of purchase constantly declined and in 2011 it come

down to 6.2 percent with significant deceleration from 2006,with regard to

Chemical purchase around 20.1 percent of the total raw materials spent on

chemicals purchase in 2006 and then onwards value of purchase consistently

decreased and in 2012 it had decline to 5.8 percent with substantial decline from

2006, with regard to total expenditure there has been consistent increase during the

period except consistent decline during 2012, the overall growth of the various

components witnessed firm hike.

Dharasuram Co-operative silk society spent around 1 lakh and 50

thousand in 2006 for yarn purchase which is increased to around 15 lakhs and 55

thousand in 2012 with the escalation of 936.8 percent, in connection with zari

procurement in 2006 the Co-operative spent nearly 80 thousands which is increased

to nearly 1 lakh and 5 thousands with the hike of 31.7 percent, for chemical

purchase around 58 thousands on 2006 and which is increased to 1 lakh and 5

thousands with the increase of 82.7 percent at the outset total raw material purchase

for Dharsaram Co-operative silk society was around 2 lakhs and 88 thousands

which is increased 17 lakhs and 66 thousands in 2012 with the hike of 513.4

percent it is apparent from the empirical verification that the expenditure proportion

137

is unlike to Cholan and Thirubuvanam as Darsuram spent less to zari procurement

than yarn, as Darausram Co-operative silk society might have opt for other fiber zari

rather than silver coated zari for their production, at the outset the overall

expenditure have witnessed steady increase upto 2010 but declined to 2012.

TABLE NO: IV. 17

OPERATIONAL EXPENDITURE OF DHARASURAM CO-OPERATIVE

SILK SOCIETY (Rs in Lakhs)

Year Estab. Expenses

Trade Expenses Bonus to Weavers

Interest on Borrowing

Total Expenditure

2006 12.79

(12.2)

60.74

(57.8)

3.22

(3.1)

28.36

(27)

105.0

2007 19.72

(17.4)

62.39

(55.1)

3.84

(3.4)

27.30

(24.1)

113.2

(7.7)

2008 23.60

(19.4)

64.18

(52.8)

2.81

(2.3)

30.91

(25.4)

121.5

(7.3)

2009 22.18

(23)

47.0

(48.7)

0 27.41

(28.3)

96.5

(-20.6)

2010 17.1

(20.2)

34.7

(41.0)

0 33.14

(39.0)

85.1

(-11.9)

2011 15.04

(16.8)

38.62

(43.1)

0 35.88

(40.1)

89.5

(5.3)

2012 14.54

(15.9)

40.24

(44.0)

0 36.67

(40.1)

91.5

(2.1)

Overall Growth

2006 12.7 60.7 3.2 28.3 105.1

2012 14.5

(13.7)

40.2

(-33.7)

0 36.6

(29.3)

91.4

(-12.9)

Source: Secondary data ( Audited report of DSPCS)

138

Table No: IV. 17 depicts the operational expenditure of the Dharasuram

silk Co-operative silk society during the study period, with regard to establishment

expenditure around 12.2 percent of the expenditure made under this category and

increased to 15.9 percent in 2012, with respect to Trade expenditure around 57.8

percent of the expenditure made under this classification and declined to 44 percent

in 2012, with regard to bonus to weavers around 3.1 percent of the expenditure

made out of the total expenditure in 2006 and which was curtailed in 2012,nearly 27

percent spent towards interest payment for the borrowing in 2006 and which is

increased to 40.1 percent in 2012, with respect to overall growth,around 12 lakhs

and 78 thousands in 2006 which is increased to 14 lakhs and 54 thousands in 2012

with the hike of 13.7 percent of expenditure occurred on establishment cost, around

60 lakhs and 73 thousands in 2006 which is decreased to 40 lakhs and 24 thousand

in 2012 with the decline of 33.7 percent of expenditure occurred on trade charges

during the study period, about 3 lakhs and 21 thousands in 2006 which is curtailed

in 2012 for expenditure on bonus to weavers .

During the study period, with respect to interest payment towards

borrowing about 28 lakhs and 35 thousands in 2006 which is increased to 36 lakhs

and 67 thousands in 2012 with the hike of 29.3 percent of expenditure occurred

during the study period, at the outset overall value of the operational expenditure

was 1 crore 5 lakhs and 10 thousand which is increased to 91 lakhs and 45

thousand with the decline of 12.9 percent during the study period, as the Co-

operatives had the standard norms on the expenditure pattern irrespective of the

sales and production since the Co-operatives are with the vested interest to protect

the weavers, however, the operational expenditure pattern shows that they couldn’t

spent on bonus towards weavers after 2008 which indicated the financial distress of

139

the Co-operative in the same line the indebtedness have been increased significantly

during the study period.

TABLE NO: IV.18

MARKETING EXPENDITURE INCURRED BY DHARASURAM

CO-OPERATIVE SILK SOCIET (Rs in Lakhs)

Year

Commission to consumer

Commission to selling

agent

Salary to sales

Person

Advertisement Total Expenditure

2006 60.12

(71.8)

19.88

(23.7)

0.69

(0.8)

3.09

(3.7)

83.8

2007 81.89

(82)

15.55

(15.6)

0.54

(0.5)

1.94

(1.9)

99.9 (19.3)

2008 122.14

(85.7)

15.38

(10.8)

0.57

(0.4)

4.36

(3.1)

142.5

(42.6)

2009 120.27

(81.1)

22.67

(15.3)

0.93

(0.6)

4.39

(3.0)

148.3

(4.1)

2010 175.41

(90.9)

13.60

(7.0)

0.79

(0.4)

3.14

(1.6)

192.9

(30.1)

2011 146.55

(86.4)

19.90

(11.7)

0.83

(0.5)

2.43

(1.4)

169.7

(-12)

2012 128.08

(83.1)

23.36

(15.2)

0.86

(0.6)

1.88 (1.2)

154.2

(-9.1)

Overall Growth

2006 60.1 19.8 0.68 3.0 83.7

2012 128.0

(113.0)

23.3

(17.5)

0.85

(24.5)

1.8

(-39.3)

154.1

(84.02)

Source: Secondary data (Audited report of DSPCS)

140

Table No: IV.18 depicts the marketing expenditure of the Dharasuram silk

Co-operative silk societysdurin g the study period, with regard to commission to

consumer around 71.8 percent of the expenditure made under this category and

increased to 83.1 percent in 2012, with respect to commission to to selling agent

around 23.7 percent of the expenditure made under this classification and declined to

15.2 percent in 2012, with regard to salary to sales personnel around 0.8 percent

of the expenditure made out of the total expenditure in 2006 and slightly declined in

2012 with 0.6 percent,nearly 3.7 percent spent towards advertisement in 2006 and

which is declined to 1.2 percent in 2012, with respect to overall growth,around 6

lakhs and a thousand in 2006 which is increased to 12 lakhs and 35 thousands in

2012 with the hike of 113.2 percent of expenditure occurred on commission to

consumer during the period, around 19 lakhs and 88 thousands in 2006 which is

increased to 23 lakhs and 36 thousands in 2012 with the hike of 17.5 percent of

expenditure incurred on commission to selling agent during the period, around 68

thousands in 2006 spent towards salary which is increased to 85 thousands in 2012

with the hike of 24.5 percent, around 3 lakh and 8 thousands in 2006 spent towards

advertisement which is decreased to 1 lakh and 85 thousand in 2012 with the

decline of 39.3 percent, at the outset overall value of the marketing expenditure

was 83 lakhs and 78 thousands which is increased to 1 crore 54 lakhs and 17

thousand with the hike of 84.02 percent during the study period, as the marketing

expenditure is the important component of the expenditure structure of Dharasuram

Co-operative silks which enables the sales promotion, however, irrespective sales

level societies und to pe the entitled privileges to the weavers so the expenditure

appears escalating without concerning the corresponding increases in sales level.

141

TABLE No: IV.18-A

OUTSTANDING LOANS OF DHARASURAM CO-OPERATIVSILK

SOCITEY (RS In Lakhs)

Year Deposit’s from

members

Cash credit from

kumbukonam central Co-

operative bank

Total

Outstanding

2006 289.85

(95.2)

14.65

(4.8)

30.44

2007 325.77

(75.6)

104.92

(24.4)

43.06

(41.1)

2008 399.44

(90.1)

44.07

(9.9)

44.35

(3.0)

2009 384.67

(96.1)

15.53

(3.9)

40.02

(-9.8)

2010 434.48

(97.4)

11.41

(2.6)

44.59

(11.4)

2011 394.63

(98.2)

7.25

(1.8)

40.19

(-9.9)

2012 342.14

(98.2)

6.29

(1.8)

348.43

(-13.3)

Overall Growth

2006 2898 14.6 30.4

2012 342.1

(18)

6.2

(-57.1)

348.4

(14)

Source: Secondary data (Audited report of DSPCS)

142

Table No:. 4.18 A depicts the outstanding of loans of the Dharasuram

Co-operative silk society during the study period as the outstanding of loans would

revealed the financial distress of the organization, 95.2 percent of the outstanding

loans owe to members of Co-operativeertaivesoceity in 2006 which is increased to

98.2 percent in 2012, nearly 4.8 percent of outstanding loans owe to Kumbakonam

central Co-operative bank in 2006 which is declined to 1.8 percent in 2012, with

regard to overall growth nearly 2 crores 89 lakhs and 84 thousands fund owe to

depositers in 2006 and which increased to 3 core 42 lakhs and 14 thousands in 2012

with the increase of 18 percent, with regard to outstanding owe to Kumbakonam

central Co-operative bank nearly 14 lakhs and 64 thousand have registered which is

declined to 6 lakhs and 28 thousand in 2012 with 57.1 percent decline, at the outset

total outstanding was 3 crores and 4 lakhs and 49 thousands which was increased to

3 crores 48 lakhs and 43 thousands in 2012 with the increase of 14.4 percent during

the study period. It is apparent from the empirical finings that outstanding have been

steadily increased from 2006 to 2012.

143

TABLE NO: IV.19

SOURCES OF CAPITAL OF THIRUV ALLUVAR CO-OPERATIV SILK

SOCIETY (Rs in Lakhs)

Year Share of

members

Share from

Govt

Reserve

Fund

Total Capital

2006 16.35

(31.3)

31.68

(60.7)

4.18

(8)

52.21

2007 16.37

(31.3)

31.68

(60.7)

4.18

(8)

52.21

(0)

2008 19.40

(35.1)

31.68

(60.7)

4.18

(7.6)

55.26

(5.8)

2009 19.84

(35.6)

31.68

(60.7)

4.18

(7.5)

55.70

(0.8)

2010 20.19

(36)

31.68

(60.7)

4.18

(7.5)

56.05

(0.6)

2011 20.52

(36.4)

31.68

(60.7)

4.18

(7.4)

56.38

(0.6)

2012 20.68

(36.6)

31.68

(60.7)

4.18

(7.4)

56.54

(0.3)

verall Growth

2006 16.3 31.6 4.18 52.2

2012 20.6

(26.5)

31.6

(0)

4.18

(0)

56.5

(8.3)

Source: Secondary data (Audited report of TVSPCS )

144

50

51

52

53

54

55

56

57

2006 2007 2008 2009 2010 2011 20 12

52.21 52.21

55.2655.7 56.05 56.38 56.54

Total Capital

Total Capital

FIGURE IV.7

Table No:.IV.19 portrays the sources of capital of Thiruvalluvar Co-

operative silk society during the study period, as 31.3 percent of the capital

generated through share of members in 2006 which is increased to 36.6 percent in

2012, around 60.7 percent of the capital generated through share from Government

which was declined to 56 percent in 2012, around 8 percent of the fund generated

through reserve fund in 2006 which was declined to 7.4 percent in 2012, with

respect to overall growth performance around 16 lakh 35 thousand of fund raised

through share of members which was increased to 20 lakhs and 68 thousands in

2012 with the hike of 26.5 percent, around 31 lakh and 68 thousand raised from

share from Government and remained same in 2012 as well, nearly 4 lakhs and 18

thousands have generated through reserve fund in 2006 which also remained same

in 2012, with regard to overall capital 52 lakhs and 21 thousands have raised in 2006

which is enhanced to 56 lakhs and 54 thousands in 2012 with the hike of 8.3

percent, share of the government and reserve fund have neither increased nor

decreased during the study period but depositors portion witnessed moderate

145

escalation during the study period, the Co-operatives have got the institutionalized

support from the Government and got moderate support from own sources during

the study period.

TABLE NO: IV.20

SALES OF THIRUVALLUVAR CO-OPERATIVE SILK SOCITEY

(Rs in Lakhs)

Year Direct Sales.z Sales through Agent. Total Sales

2006 32.68

(95)

1.71

(5)

34.3

2007 40.86

(97.8)

.90

(2.2)

41.7

(21.4)

2008 36.53

(99)

.38

(1)

36.9

(-11.6)

2009 56.62

(99)

.56

(1)

57.1

(54.9)

2010 77.01

(99.7)

.21

(0.3)

77.2

(35)

2011 86.62

(99.6)

.36

(0.4)

86.9

(12.6)

2012 101.95

(99.6)

.39

(0.4)

102.3

(17.7)

Overall Growth

2006 32.6 1.71 34.3

2012 101.9

(212)

0.3

(-77.0)

102.3

(197.6)

Source: Secondary data (Audited report of TVSPCS)

146

34.341.7 36.9

57.1

77.286.9

102.3

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

FIGURE IV.8

Table No:.IV.20 demonstrates the value of the sales of silk products

through various sources of Thiruvalluvar Co-operative silk society in study period,

with regard to direct sales around 95 percent of the value of sales obtained in 2006

which is increased 99.6 percent in 2012, with regard to sales through exhibition

none of the sales taken place under this category, with respect to sales through agent

around 5 percent of the sales made in 2006 and which was decline to 0.4 percent in

2012, in connection with the sales through Co-operative none of sales made under

this category, with regard to overall changes around 32 lakhs and 68 thousands in

2006 which is decreased to 1 crore and 9 lakhs and 5 thousands in 2012 with the

escalation of 2.2 times from 2006 of direct sales taken place during the period, they

didn’t sold anything through exhibition during the study period, 1 lakh and 71

thousands worth of silk products sold through commission agents in 2006 which

declined to 39 thousands in 2012 with the decline of 77 percent, through

Co-operative they haven’t sold anything, at the outset overall value of the silk

147

products sole were 34 lakhs and 39 thousands which is decreased to 1 crore 2 lakhs

and 34 thousand with the increase of 197.6 during the study period, it is apparent

from the empirical findings that Thiruvalluvar Co-operative silk society have made

significant increase in direct sales and major proportion obtained from this source

only and unlike other Co-operative Thiruvalluvar haven’t made any significant sales

through other mode of sales during the study period.

TABLE NO: IV.21

THIRUVALLUVAR CO-OPERATIVE PURCHASE OF RAW MATERIALS

(Rs in Lakhs)

Year Yarn Zari Chemical Total Expenditure

2006 46.9 (28.1)

119.10 (71.2)

1.27 (0.8)

167.36

2007 36.69 (19.6)

149.70 (79.9)

1.05 (0.6)

187.44 (12)

2008 49.01 (26.6)

134.40 (72.9)

1.03 (0.6)

184.45 (-1.6)

2009 31.86 (19.7)

128.99 (79.8)

.69 (0.4)

161.55 (-12.4)

2010 39.95 (24.8)

120.38 (74.7)

.88 (0.5)

161.21 (-0.1)

2011 43.88 (26)

124.08 (73.5)

.80 (0.5)

168.76 (4.7)

2012 48.71 (26.2)

136.11 (73.3)

.86 (0.5)

185.69 (10.0)

Overall Growth

2006 46.9 119.0 1.2 167.3

2012 48.7 (3.7) 136.1 (14.3) 0.8 (-32.4) 185.6 (10.9) Source: Secondary data (Audited report of TVSPCS)

148

Table No: IV.21 illustrates the value of the raw materials purchased by

Thiruvalluvar Co-operative silk society from 2006 to 2011, with regard to yarn

purchase about 28.1 percent of the total raw materials purchase incurred in 2006

and then onwards value of purchase consistently shown descending trend and in

2012 it came down to 26.2 percent with significant decline from 2006,with respect

to zari purchase nearly 71.2 percent of the total raw materials procurement

incurred in 2006 and then onwards value of purchase constantly increased and in

2011 it gone to 73.3 percent with significant appreciation from 2006,with regard to

Chemical purchase around 0.8 percent of the total raw materials spent on

chemicals purchase in 2006 and then onwards value of purchase consistently

decreased and in 2012 it had decline to 0.5 percent with substantial decline from

2006, with regard to total expenditure there has been consistent increase during the

period except consistent decline during 2012, the overall growth of the various

components witnessed firm hike, the Thiruvalluvar Co-operative silk society spent

around 46 lakh and 99 thousand in 2006 for yarn purchase which is increased to

around 48 lakhs and 71 thousand in 2012 with the escalation of 3.7 percent, in

connection with zari procurement in 2006 the Co-operative spent nearly 1 crore

and 19 lakes 9 thousands which is increased to nearly 1 core 36 lakh and 11

thousands with the hike of 14.3 percent, for chemical purchase around 1 lakh and

72 thousands on 2006 and which is decreased to 86 thousands with the decrease

of 32.4 percent at the outset total raw material purchase for Thiruvalluvar

Co-operative silk society was around 16 lakhs and 73 thousands which is increased

18 lakhs and 56 thousands in 2012 with the hike of 10.9 percent it is clear from the

empirical verification that the expenditure on raw materials purchase were steadily

increased during the study period.

149

TABLE NO: IV.22

OPERATIONAL EXPENDITURE OF THIRUVALLUVAR

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Estab. Expenses Trade .Expenses Interest on

Borrowing

2006

11.30

(52)

12.05

(48)

25.08

2007 1.40

(53.6)

12.17

(46.4)

26.21

(4.5)

2008 1.34

(52.2)

12.26

(47.8)

25.66

(-2.1)

2009 1.80

(42.9)

23.89

(57.1)

41.85

(63.1)

2010 18.22

(35.5)

33.11

(64.5)

51.33

(22.7)

2011 18.22

(33.4)

36.27

(66.6)

54.49

(6.2)

2012 18.62

(32.9)

37.94

(67.1)

56.56

(3.8)

Overall Growth

2006 11.30 12.0 25.0

2012 18.62

(42.9)

37.9

(214.8)

56.5

(125.5)

Source: Secondary data (Audited report of TVSPCS)

150

Table No. IV.212 depicts the operational expenditure of the

Thiruvalluvar silk Co-operative silk society during the study period, with regard to

establishment expenditure around 52 percent of the expenditure made under this

category and decreased to 32.9 percent in 2012, with respect to Trade expenditure

around 48 percent of the expenditure made under this classification and increased to

67.1 percent in 2012, with regard to bonus to weavers and interest payment none of

the expenditure were made during the study period, with respect to overall growth,

around 13 lakhs and 3 thousand in 2006 which is increased to 18 lakhs and 20

thousands in 2012 with the hike of 42.9 percent of expenditure occurred on

establishment cost, around 12 lakhs and 5 thousands in 2006 which is increased to

37 lakhs 93 thousand in 2012 with the increase of 214.8 percent of expenditure

occurred on trade charges during the study period, at the outset overall value of the

operational expenditure was 25 lakhs and 8 thousand which is increased to 56

lakhs and 55 thousand with the escalation of 125.5 percent during the study

period, unlike other societies Thiruvalluvar Co-operative have not spent on interest

payment and bonus to weavers during the study period, moreover, irrespective of the

sales and profit Thiruvallur co-operatives have been allocating funds towards trade

charges and other operational expenditure so these expenditure seems inelastic so

the operational expenditure have been escalating throughout the study period.

151

TABLE NO: IV. 23

MARKETING EXPENDITURE INCURRED BY THIRUVALLUVAR

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Commission

to consumer

Commission

to selling

agent

Salary to

sales

Person

Advertisement

Total

Expenditure

2006 120.24

(69.7)

44.19

(25.6)

1.30

(0.8)

6.9

(4) 172.6

2007 181.97

(83.3)

31.10

(14.2)

1.18

(0.5)

4.1

(1.9)

218.4

(26.5)

2008 305.34

(89)

27.96

(8.1)

1.43

(0.4)

8.4

(2.4)

343.1

(57.1)

2009 286.36

(82.5)

50.37

(14.5)

1.6

(0.5)

8.8

(2.5)

347.2

(1.2)

2010 313.22

(88.2)

33.99

(9.6)

1.8

(0.5)

6.2

(1.7)

355.2

(2.3)

2011 366.37

(88)

42.34

(10.2)

1.7

(0.4)

6.1

(1.5)

416.5

(17.2)

2012 383.59

(88.1)

44.58

(10.2)

1.6

(0.4)

5.3

(1.2)

435.2

(4.5)

Overall Growth

2006 120.2 44.1 1.30 6.8 172.5

2012 383.5

(219)

44.5

(0.9)

1.6

(29.2)

5.3

(-22.5)

435.1

(152.1)

Source: Secondary data (Audited report of TVPCS)

152

Table No: IV.23 depicts the marketing expenditure of the Thiruvalluvar

silk Co-operative silk societysdurin g the study period, with regard to commission to

consumer around aro zund 69.7 percent of the expenditure made under this category

and increased to 88.1 percent in 2012, with respect to commission to selling agent

around 25.6 percent of the expenditure made under this classification and declined to

10.2 percent in 2012, with regard to salary to sales personnel around 0.8 percent

of the expenditure made out of the total expenditure in 2006 and slightly declined in

2012 with 0.4 percent,nearly 4 percent spent towards advertisement in 2006 and

which is declined to 1.2 percent in 2012, with respect to overall growth,around 1

core 20 lakhs and 24 thousand in 2006 which is increased to 3 crores 83 lakhs and

58 thousands in 2012 with the hike of 219.2 percent of expenditure occurred on

commission to consumer during the period, around 44 lakhs and 18 thousands in

2006 which is increased to 44 lakhs and 58 thousands in 2012 with the hike of 0.9

percent of expenditure incurred on commission to selling agent during the period,

around 1 lakh 29 thousands in 2006 spent towards salary which is increased to 1

lakh 67 thousands in 2012 with the hike of 29.2 percent, around 6 lakh and 86

thousands in 2006 spent towards advertisement which is decreased to 5 lakh and 32

thousand in 2012 with the decline of 22.5 percent, at the outset overall value of the

marketing expenditure was 1 crore 72 lakhs and 59 thousands which is increased to

4 crore 35 lakhs and 16 thousand with the hike of 152.1 percent during the study

period, as the marketing expenditure is the important component of the expenditure

structure of Thiruvalluvar Co-operative silks which enables the sales promotion,

however, irrespective sales level societies bound to provide the entitled privileges to

153

the weavers so the expenditure appears escalating without concerning the

corresponding increases in sales level.

TABLE NO: IV.24

OUTSTANDING OF THIRUVALLUVAR CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year

Deposit’s from members

Cash credit from kumbukonam central

Co-operative bank

Total Outstanding

2006 14.492

(93.3)

10.45

(6.7) 155.34

2007 15.097

(66.1)

77.31

(33.9)

228.28

(47)

2008 19.547

(89.2)

23.57

(10.8)

219.04

(-4)

2009 19.681

(96.4)

7.40

(3.6)

204.20

(-6.8)

2010 24.035

(97.7)

5.56

(2.3)

245.91

(20.4)

2011 27.624

(98.5)

4.17

(1.5)

280.41

(14)

2012 28.895

(98.5)

4.36

(1.5)

293.30

(4.6)

Overall Growth

2006 14.4 10.45 155.3

2012 28.8

(99.4)

4.36

(-58.2)

293.30

(88.8)

Source: Secondary data (Audited report of TVSPCS)

154

Table No:. IV.24 depicts the outstanding of loans of the Thiruvalluvar

Co-operative silk society during the study period as the outstanding of loans would

reaveled the finacial distress of the organziation, 93.3 percent of the outstanding

loans owe to members of Co-operativeertaivesoceity in 2006 which is increased to

98.5 percent in 2012, nearly 6.7 percent of outstanding loans owe to Kumbakonam

central Co-operative bank in 2006 which is declined to 1.5 percent in 2012, with

reagrd to overall growth nearly 1crore 44 lakhs and 92 thousands fund owe to

depositers in 2006 and which increased to 2 crore 88 lakhs and 94 thousands in 2012

with the increase of 99.4 percent,with regard to outstanding owe to Kumbakonam

central Co-operative bank nearly 10 lakhs and 41 thousand have registered which is

declined to 4 lakhs and 35 thousand in 2012 with 57.1 percent decline, at the outset

total outstanding was 1 crore and 55 lakhs and 34 thousands which was increased to

2 crores 93 lakhs and 30 thousands in 2012 with the increase of 88.8 percent during

the study period.It is aparent from the empirical finings that outstanding have been

steadily increased from 2006 to 2012.

155

TABLE NO : IV.25

SOURCES OF CAPITAL OF KALAIVANAR CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Share of members Share from Govt.

Reserve Fund Total Capital

2006 5.46

(67.6)

0.37

(4.6)

2.25

(27.8)

8.08

2007 5.13

(66.2)

0.37

(4.8)

2.25

(29.0)

7.75

(-4.1)

2008 3.56

(57.6)

0.37

(6.0)

2.25

(36.4)

6.18

(-20.3)

2009 3.64

(58.1)

0.37

(5.9)

2.25

(35.9)

6.26

(1.3)

2010 4.12

(61.1)

0.37

(5.5)

2.25

(33.4)

6.74

(7.7)

2011 4.46

(63.0)

0.37

(5.2)

2.25

(31.8)

7.08

(5.0)

2012 44.78

(64.6)

0.37

(5.0)

2.25

(30.4)

7.40

(4.5)

Overall Growth

2006 5.4 0.37 2.25 8.08

2012 4.7

(-12.4)

0.37

(0)

2.25

(0)

7.40

(-8.4)

Source: Secondary data (Audited report of KSPCS)

156

0123456789

2006 2007 2008 2009 2010 2011 2012

8.08 7.75

6.18 6.266.74 7.08 7.4

Total Capital

Total Capital

FIGURE IV.9

Table No: IV.25 Portrays the sources of capital of Kalaivanar Co-

operative silk society during the study period, as 67.6 percent of the capital

generated through share of members in 2006 which is decreased to 64.6 percent in

2012, around 4.6 percent of the capital generated through share from Government

which was increased to 5 percent in 2012, around 27.8 percent of the fund generated

through reserve fund in 2006 which was increased to 30.4 percent in 2012, with

respect to overall growth performance around 5 lakh 46 thousand of fund raised

through share of members which was decreased to 4 lakhs and 78 thousands in 2012

with the decline of 12.4 percent, around 37 thousand raised from share from

Government and remained same in 2012 as well, nearly 2 lakhs and 25 thousands

have generated through reserve fund in 2006 which also remained same in 2012,

with regard to overall capital 8 lakhs and 8 thousands have raised in 2006 which is

declined to 7 lakhs and 40 thousands in 2012 with the decline of 8.3 percent, share

of the government and reserve fund have neither increased nor decreased during the

study period but depositors portion witnessed moderate escalation during the study

period, the Co-operatives have got the institutionalized support from the

Government and got moderate support from own sources during the study period.

157

TABLE NO: IV.26

SALES OF KALAIVANAR CO-OPERATIVE SILK SOCIETY

(Rs. in Lakhs)

Year Direct Sales Sales

through

Exhibition

Sales

through

Agent

Sales through

Co-operative

Total Sales

2006 0.64

(10.0)

0.43

(6.7)

5.34

(83.3) _ 6.41

2007 0.86

(18.1)

0.26

(5.5)

3.65

(76.4) _

4.78

(25.4)

2008 1.02

(16.3)

0.32

(5.1)

4.19

(67)

0.73

(11.6)

5.23

(30.9)

2009 1.08

(18.8)

0.03

(0.6)

3.77

(65.5)

0.87

(15.2)

5.76

(-7.8)

2010 1.01

(22.6)

0.06

(1.5)

2.69

(60.1)

0.71

(15.8)

4.47

(-22.5)

2011 1.06

(18.0)

0.18

(3.1)

3.20

(54.4)

1.44

(24.5)

5.89

(31.8)

2012 1.15

(18.4)

0.20

(3.1)

3.47

(54.4)

12.17

(24.5)

6.39

(8.5)

Overall Growth

2006 0.64 0.43 5.3 0.73 6.4

2012 1.15

(79.4)

0.20

(-53.4) 3.4 (-34.9) 12.7 (115.5)

6.3

(-0.2)

Source: Secondary data (Audited report of KSPCS)

158

FIGURE IV.10

6.4

4.85.2

5.8

4.5

5.96.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

Table No: IV.26 demonstrates the value of the sales of silk products

through various source of kalaivanar Co-operative silk society in study period, with

regard to direct sales around 10 percent of the value of sales obtained in 2006 which

is increased 18 percent in 2012, with regard to sales through exhibition 6.7 percent

in 2006 and declined to 3.1 percent in 2012, with respect to sales through agent

around 83.3 percent of the sales made in 2006 and which was decline to 54.4

percent in 2012, in connection with the sales through Co-operative none of sales

made under this category in 2006 and increase to 24.5,with regard to overall changes

around 63 thousands in 2006 which is increased to 1 lakh and 14 thousands in 2012

with the decrease of 79.4 percent from 2006 of direct sales taken place during the

period, they sold 42 thousands through exhibition in 2006 which was declined 19

thousands during the study period, 5 lakh and 37 thousands worth of silk products

sold through commission agents in 2006 which declined to 3 lakhs 47 thousands in

2012 with the decline of 34.9 percent, through Co-operative the Co-operative made

159

72 thousands in 2008 and increased to 1 lakh and 56 thousands in 2012, at the

outset overall value of the silk products sole were 6 lakhs and 40 thousands which is

decreased to 6 lakhs and 38 thousand with the decrease of 0.2 during the study

period, it is apparent from the empirical findings that Kalaivanar Co-operative silk

society have made significant increase in direct sales and decline in sales through

exhibition, sales through agent and increase in Co-operative, at the outset meager

proportion of the increase taken place during the study period.

TABLE NO. IV.27

KALAIVANAR CO-OPERATIVE PURCHASE OF RAW MATERIALS

(Rs in Lakhs)

Year Yarn Zari Chemical Total Expenditure

2006 0.22 (89.7)

0.02 (9.8)

0.00120 (0.5)

0.24

2007 0.88 (85.5)

0.14 (13.9)

656 (0.6)

1.03 (323.1)

2008 1.51 (84.3)

0.27 (14.9)

1345 (0.7)

1.79 (73.6)

2009 2.11 (88.4)

0.26 (14.9)

1390 (0.6)

2.39 (33.0)

2010 2.23 (86.5)

0.32 (12.7)

1865 (0.7)

2.58 (7.9)

2011 2.32 (86.4)

0.34 (12.9)

1824 (0.7)

2.68 (4.1)

2012 2.52 (86.2)

0.37 (13.0)

2053 (0.7)

2.92 (8.8)

Overall Growth 2006 0.21 0.024 0.0012 0.24 2012 2.5

(1049.0) 0.34

(1343.3) 0.018

(1420.2) 2.6

(997.2) Source: Secondary data (Audited Report of KSPCS)

160

Table No: IV..27 elucidates the value of the raw materials purchased by

Kalaivanar Co-operative silk materials purchase incurred in 2006 and then onwards

value of purchase consistently shown downward trend and in 2012 it came down to

86.2 percent with significant decline from 2006,with respect to zari purchase nearly

9.8 percent of the total raw materials procurement incurred in 2006 and then

onwards value of purchase constantly increased and in 2011 it gone to 13 percent

with significant increase from 2006,with regard to Chemical purchase around 0.5

percent of the total raw materials spent on chemicals purchase in 2006 and then

onwards value of purchase consistently increased and in 2012 it had increased to

0.7 percent with substantial hike from 2006, with regard to total expenditure there

has been consistent increase during the period except consistent decline during 2012,

the overall growth of the various components witnessed firm hike, the kalaivanar

Co-operative silk society spent around 21 thousand in 2006 for yarn purchase

which is increased to around 2 lakhs and 51 thousand in 2012 with the escalation of

1049 percent, in connection with zari procurement in 2006 the Co-operative spent

nearly 2 thousands which is increased to nearly 34 thousands with the hike of

1343.3 percent, for chemical purchase around 1hundred and twenty on 2006 and

which is increased to 1.8 thousand with the increase of 1420 percent at the outset

total raw material purchase for Kalaivanar Co-operative silk society was period.

161

TABLE NO: IV.28

OPERATIONAL EXPENDITURE OF KALAIVAN CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year Estab.

Expenses

Trade

Expenses

Bonus to

Weavers

Interest

on

Borrowing

Total

Expenditure

2006 1.88

(20.6)

1.09

(11.9)

6.15

(67.5)

6.15

(67.5)

9.12

2007 1.73

(15.2)

1.56(13.7) 8.09

(71.1)

8.09

(71.1)

11.39

(2.49)

2008 181

(15.2)

1.61(13.5) 8.53

(71.3)

8.53

(71.3)

11.96

(5)

2009 1.76

(15.3)

1.51(13.1) 8.23

(71.5)

8.23

(71.5)

11.51

(-3.8)

2010 1.82

(15.7)

2.38(20.5) 5.03

(57.2)

5.03

(63.9)

11.62

(1)

2011 1.76

(20.0)

2.01

(22.8)

4.82

(58.0)

4.82

(57.2)

8.81

(-24.9)

2012 165

(19.8)

1.84

(22.1)

_ 4.82

(58.0)

8.31

(-5.6)

Overall Growth

2006 1.88 1.09 _ 6.15 9.1

2012 1.64

(-12.4)

1.84

(69.2)

_ 4.8

(-21.6)

8.3

(-8.9)

Source: Secondary data (Audited report of KSPCS)

162

Table No: IV.28 depicts the operational expenditure of the Kalaivanar

silk Co-operative silk societys during the study period,with regard to establishment

expenditure around 20.6 percent of the expenditure made under this category and

decreased to 19.8 percent in 2012, with respect to Trade expenditure around 11.9

percent of the expenditure made under this classification and increased to 22.1

percent in 2012, with regard to bonus to weavers nothing have beeen spent by the

Co-operatives during the study period, with respect to interest payment none 67.5

percent spent in 2006 which get declined to 58 percent in 2012, with respect to

overall growth,around 1 lakh and 88 thousand in 2006 which is decreased to 1 lakh

and 64 thousand in 2012 with the decline of 12.4 percent of expenditure occurred

on establishment cost, around 1 lakh and 8 thousands in 2006 which is increased to

1 lakh 83 thousand in 2012 with the increase of 69.2 percent of expenditure

occurred on trade charges during the study period, with regard to interest for

payment 6 lakhs and 15 thousands spent in 2006 and which is increased to 4 lakhs

and 82 thousands, at the outset overall value of the operational expenditure was 9

lakhs and 11 thousand which is decreased to 8 lakhs and 30 thousand with the

decrease of 8.9 percent during the study period, as the Co-operatives bound to

make some payments irrespective of the sales level, thus, the operational

expenditure tend to hike persistently during the study period.

163

TABLE NO: IV.29

MARKETING EXPENDITURE INCURRED BY KALAIVANAR

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Commission

to consumer

Commission

to selling

agent

Salary

to sales

Person

Advertisement Total

Expenditure

2006 1.21

(51.7)

0.10

(4.3)

1

(42.7)

0.03

(1.3) 2.3

2007 7.64

(85.4)

0.30

(3.4) 1(11.2)

0.01

(0.1)

9.0

(282.5)

2008 1.93

(59.8)

0.30

(9.3) 1(31.0) _

3.2

(-63.9)

2009 3.15

(71.1)

0.28

(6.3)

1

(22.6) _

4.4

(37.2)

2010 3.43

(72.8)

0.27

(5.7)

100

(21.2)

0.01

(0.2)

4.7

(6.3)

2011 3.13

(71.8)

0.22

(5.0)

1

(22.9)

0.01

(0.2)

4.4

(-7.4)

2012 2.89

(70.6)

0.20

(4.8)

1

(24.4)

0.01

(0.2)

4.1

(-6)

Overall Growth

2006 1.21 0.1 1 0.03 2..3

2012 2.8

(139)

0.20

(96.5)

1

(0)

0.01

(-68.3)

4.0

(75.1)

Source: Secondary data (Audited report of KSPCS)

164

Table No: IV.29 depicts the marketing expenditure of the Kalaivanar silk

Co-operative silk societysdurin g the study period,with regard to commision to

consumer around around 51.7 percent of the expenditure made under this category

and increased to 70.6 percent in 2012, with respect to commision to to selling agent

around 4.3 percent of the expenditure made under this classification and increased

to 4.8 percent in 2012, with regard to salaray to sales personnel around 42.7

percent of the expenditure made out of the total expenditure in 2006 and declined

in 2012 with 24.4 percent,nearly 1.3 percent spent towards advertisement in 2006

and which is declined to 0.2 percent in 2012, with respect to overall growth,around

1 lakh and 21 thousand in 2006 which is increased to 2 lakhs and 89 thousands in

2012 with the hike of 139 percent of expenditure occurred on commission to

consumer during the period, around 10 thousands in 2006 which is increased to 19

thousands in 2012 with the hike of 96.5 percent of expenditure incurred on

commission to selling agent during the period, around 1 lakh rupees in 2006 spent

towards salary which is remained same in 2012 as well, around 3 thousands in 2006

spent towards advertisement which is decreased to 950 in 2012 with the decline of

68.3 percent, at the outset overall value of the marketing expenditure was 2 lakhs

and 34 thousands which is increased to 4 lakhs and 9 thousand with the hike of

75.1 percent during the study period, as the marketing expenditure is the important

component of the expenditure structure of Kalaivanar Co-operative silks which

enables the sales promotion, however, irrespective sales level societies bound to

provide the entitled privileges to the weavers so the expenditure appears escalating

without concerning the corresponding increases in sales level.

165

TABLE NO: IV. 30

OUTSTANDING LOANS OF KALAIVANAR CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Deposit’s from members

Cash credit from kumbukonam central Co-operative bank

Total Outstanding

2006 72.46

(95.7)

3.26

(4.3)

75.72

2007 71.51

(76.4)

22.09

(23.6)

93.60

(23.6)

2008 93.48

(89.7)

10.76

(10.3)

104.25

(11.4)

2009 93.93

(96.2)

3.70

(3.8)

97.65

(-6.3)

2010 78.58

(96.8)

2.63

(3.2)

81.21

(-16.8)

2011 80.90

(98.6)

1.19

(1.4)

82.09

(1.1)

2012 83.81

(98.6)

1.22

(1.4)

85.03

(3.6)

Overall growth

2006 72.4 3.2 75.7

2012 83.8

(15.7)

1.2

(-62.7)

85.02

(12.3) Source: Secondary data ( Audited report of KSPCS)

Table No: IV.30 depicts the outstanding of loans of the Kalaivanar Co-

operative silk society during the study period as the outstanding of loans would

revealed the financial distress of the organziation, 95.7 percent of the outstanding

loans owe to members of Co-operativeertaive soceity in 2006 which is increased to

166

98.6 percent in 2012, nearly 4.3 percent of outstanding loans owe to Kumbakonam

central Co-operative bank in 2006 which is declined to 1.4 percent in 2012, with

regard to overall growth nearly 72 lakhs and 46 thousands fund owe to depositors

in 2006 and which increased to 83 lakhs and 81 thousands in 2012 with the increase

of 15.7 percent, with regard to outstanding owe to Kumbakonam central Co-

operative bank nearly 3 lakhs and 25 thousand have registered which is declined to

1 lakhs and 21 thousand in 2012 with 62.7 percent decline, at the outset total

outstanding was 75 lakhs and 71 thousands which was increased to 85 lakhs and 2

thousands in 2012 with the increase of 12.3 percent during the study period.It is

clear that outstanding have been fluctauting and reapyment of debt from central Co-

operative bank decelerate the burden of debt of the Kalaivanar Co-operative silk

society during the study period.

TABLE NO: NO: IV.31

SOURCES OF CAPITAL OF SUPER SILK CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Share of members Share from Govt Total Capital 2006 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2007 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2008 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2009 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2010 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2011 2.34

(79.6) 0.60

(20.4) 2.9

(100) 2012 2.34

(79.6) 0.60

(20.4) 2.9

(100) Source: Secondary data (Audited report of KSPCS)

167

0

0.5

1

1.5

2

2.5

3

2006 2007 2008 2009 2010 2011 2012

2.9 2.9 2.9 2.9 2.9 2.9 2.9

Total Capital

Total Capital

FIGURE IV.11

Table No: IV.31 Portrays the sources of capital of Super Co-operative

silk society during the study period, as 79.6 percent of the capital generated through

share of members in 2006 which remained constant in 2012, around 20.4 percent of

the capital generated through share from Government which was remained same in

2012, none of the contribution acquired from reserve fund, with respect to overall

growth performance around 2 lakh 34 thousand of fund raised through share of

members which remain constant in 2012, around 60 thousand raised from share

from Government and remained same in 2012 as well, with regard to overall capital

2 lakhs and 94 thousands in 2006 as well as in 2012 share of the government and

depositors fund have neither increased nor decreased during the study period.

168

TABLE NO: IV. 32

SALES OF SUPER CO-OPERATIVE SILK SOCIETY

(RS in Lakhs)

Year Direct Sales Sales

through

Exhibition

Sales

through

agent

Co-

operative

Total

2006 0.79

(10.6)

0.05

(0.7)

6.59

(88.7)

_ 7.43

2007 1.20

(18.1)

0.36

(5.4)

5.07

(76.5)

_ 6.63

(-10.8)

2008 1.26

(16.6)

0.44

(5.8)

4.90

(64.4)

1.01

(13.3)

7.61

(14.8)

2009 1.28

(16.0)

0.04

(0.5)

5.59

(70.0)

1.08

(13.5)

7.99(5)

2010 1.32

(21.0)

0.12

(1.9)

3.73

(59.3)

1.12

(17.8)

6.29

(21.3)

2011 1.47

(15.5)

0.24

(2.5)

4.56

(48.1)

3.21

(33.9)

9.48

(50.7)

2012 1.65

(15.4)

0.26

(2.4)

5.33

(49.5)

3.52

(32.7)

10.76

(13.5)

Overall Growth

2006 0.79 0.05 6.59 _ 7.4

2012 1.65

(109.1)

0.26

(425.1)

5.3

(-19.2)

_ 10.7

(44.8)

Source: Secondary data (Audited report of KSPCS)

169

7.46.6

7.6 8.0

6.3

9.510.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total

FIGURE IV.12

Table No: IV.32 demonstrates the value of the sales of silk products

through various source of Super silk Co-operative silk society in study period,

with regard to direct sales around 10.6 percent of the value of sales obtained in 2006

which is increased 15.4 percent in 2012, with regard to sales through exhibition 0.7

percent in 2006 and increased to 2.4 percent in 2012, with respect to sales through

agent around 83.7 percent of the sales made in 2006 and which was decline to 49.5

percent in 2012, in connection with the sales through Co-operative none of sales

made under this category in 2006 and registered to 32.7 percent in 2012 ,with regard

to overall changes around 79 thousands in 2006 which is increased to 1 lakh and 65

thousands in 2012 with the increase of 109.1 percent from 2006 of direct sales

taken place during the period, the Co-operative sold 5 thousands through exhibition

in 2006 which was increased 26 thousands during the study period, 6 lakh and 59

thousands worth of silk products sold through commission agents in 2006 which

declined to 5 lakhs 32 thousands in 2012 with the decline of 19.2 percent, through

Co-operative the Co-operative made 35 thousands in 2012, at the outset overall

170

value of the silk products sole were 7 lakhs and 43 thousands which is increased to

10 lakhs and 76 thousand with the increase of 44.8 during the study period, it is

apparent from the empirical findings that Super Co-operative silk society have

made significant increase in direct sales and decline in sales through exhibition,

sales through agent and increase in Co-operative, at the outset meager proportion of

the increase taken place during the study period.

TABLE NO: IV.33

SUPER SILKS CO-OPERATIVE PURCHASE OF RAW MATERIALS

(Rs in Lakhs)

Year Yarn Zari Chemical Total Expenditure

2006 1.30 (78)

0.33 (19.8)

0.04 (2.2)

1.67

2007 1.32 (79.9)

0.30 (18.2)

0.03 (1.9)

1.65 (-0.8)

2008 0.80 (77.7)

0.21 (20.4)

0.02 (1.9)

1.03 (-37.7)

2009 1.46 (81.3)

0.30 (16.7)

0.04 (2.0)

1.80 (74.4)

2010 1.82 (81.8)

0.36 (16.2)

0.05 (2.0)

2.23 (23.9)

2011 1.64 (82.1)

0.32 (16.0)

0.04 (1.9)

1.99 (-10.2)

2012 1.43 (80.9)

0.31 (17.5)

0.03 (1.6)

1.76 (-11.7)

Overall Growth

2006 1.30 0.33 0.40 1.67

2012 1.43 (9.8)

0.30 (-6.7)

0.03 (-20.5)

1.76 (5.8)

Source: Secondary data (Audited report of KSPCS)

171

Table No: IV.33 express the value of the raw materials purchased by

Super Co-operative silk society from 2006 to 2011, with regard to yarn purchase

about 78 percent of the total raw materials purchase incurred in 2006 and then

onwards value of purchase consistently shown upward trend and in 2012 it gone

upto 80.9 percent with significant increase from 2006,with respect to zari

purchase nearly 19.8 percent of the total raw materials procurement incurred in

2006 and then onwards value of purchase constantly fluctuated and in 2011 it

decline to 17.5 percent with significant decrease from 2006,with regard to

Chemical purchase around 2.2 percent of the total raw materials spent on

chemicals purchase in 2006 and then onwards value of purchase consistently

decreased and in 2012 it had decreased to 1.6 percent with substantial decline

from 2006, the overall growth of the various components witnessed consistent

fluctuation, the Super Co-operative silk society spent around 1 lakh and 30

thousand in 2006 for yarn purchase which is increased to around 1 lakh and 42

thousand in 2012 with the escalation of 9.8 percent, in connection with zari

procurement in 2006 the Co-operative spent nearly 33 thousands which is

decreased to nearly 30 thousands with the decline of 6.7 percent, for chemical

purchase around 3 thousand in 2006 and which is decreased to 2 thousand with the

decrease of 20.5 percent at the outset total raw material purchase for Super Co-

operative silk society was around 1 lakh and 66 thousand which is increased 1lakh

and 76 thousands in 2012 with the hike of 5.8 percent it is clear from the

empirical verification that the expenditure on raw materials purchase were steadily

increased during the study period.

172

TABLE NO: IV.34

OPERATIONAL EXPENDITURE OF SUPER CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year

Estab. Expense

Trade

Expenses

Intough on

Borrowing

Total

Expenditure

2006 2.65

(15.7)

2.01

(11.9)

12.25

(72.4) 16.9

2007 2.35

(18.7)

1.43

(11.4)

8.79

(69.9)

12.6

(-25.7)

2008 2.22

(14.4)

2.08

(13.5)

11.09

(72.1)

15.4

(22.4)

2009 2.11

(13.1)

2.41

(15)

11.53

(71.8)

16.1

(43)

2010 2.32

(14.3)

2.16

(13.3)

11.76

(72.4)

16.2

(1.2)

2011 2.46

(14.9)

3.17

(19.2)

10.92

(66)

16.6

(1.9)

2012 2.17

(13.4)

2.12

(12.5)

11.44

(67.8)

15.2

(1.1)

2006 2.6 2.01 12.2 16.9

2012 2.1

(-5.5)

2.12

(5.5)

11.4

(-6.6)

15.2

(-10.1)

Source: Secondary data (Audited report of KSPCS)

173

Table No: IV.34 depicts the operational expenditure of the Super silk

Co-operative silk society during the study period ,with regard to establishment

expenditure around 15.7 percent of the expenditure made under this category and

decreased to 13.4 percent in 2012, with respect to Trade expenditure around 11.9

percent of the expenditure made under this classification and increased to 12.5

percent in 2012, with regard to bonus to weavers nothing have beeen spent by the

Co-operatives during the study period, with respect to interest payment around 72.4

percent spent in 2006 which get declined to 67.8 percent in 2012, with respect to

overall growth,around 2 lakhs and 65 thousand in 2006 which is decreased to 2

lakhs and 17 thousand in 2012 with the decline of 18 percent of expenditure

occurred on establishment cost, around 2 lakhs and a thousand in 2006 which is

increased to 2 lakhs 12 thousand in 2012 with the increase of 5.5 percent of

expenditure occurred on trade charges during the study period, with regard to

interest for payment 12 lakhs and 25 thousands spent in 2006 and which is decreased

to 11 lakhs and 44 thousands, at the outset overall value of the operational

expenditure was 16 lakhs and 91 thousand which is decreased to 15 lakhs and 21

thousand with the decrease of 10.01 percent during the study period, as the Co-

operatives bound to make some payments irrespective of the sales level, thus, the

operational expenditure tend to hike persistently during the study period.

174

TABLE NO : IV.35

MARKETING EXPENDITURE INCURRED BY SUPER

CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Commission

to consumer

Commission to

selling agent

Salary to

sales

Person

Advertisement Total

Expenditure

2006 1.08

(52.7)

0.08

(3.9)

0.87

(42.1)

0.03

(1.263) 2.1

2007 6.49

(84.9)

0.22

(3.0)

0.92

(0.12)

0.01

(0.094)

7.6

(270.2)

2008 1.73

(59.4)

0.24

(8.4)

0.94

(32.2) _

2.9

(-61.8)

2009 2.39

(67.4)

0.22

(6.4)

0.93

(26.2) _

3.6

(21.5)

2010 2.77

(71.5)

0.21

(5.4)

0.89

(22.9)

0.01

(0.242)

3.9

(9.5)

2011 2.66

(69.5)

0.19

(5.2)

0.96

(25.1)

0.01

(0.248)

3.8

(-1.6)

2012 2.49

(67.8)

0.19

(5.3) 0.87

0.01

(0.3)

3.7

(-3.9)

Overall Growth

2006 1.08 0.081 87000 0.03 2.1

2012 2.4

(128.9)

0.19

(140)

87000

(0)

0.01

(-64.9)

3.6

(78.0)

Source: Secondary data (Audited report of KSPCS)

175

Table No: IV.35 depicts the marketing expenditure of the Super silk Co-

operative silk society during the study period,with regard to commision to consumer

around around 52.7 percent of the expenditure made under this category and

increased to 67.8 percent in 2012, with respect to commision to to selling agent

around 3.9 percent of the expenditure made under this classification and increased

to 5.3 percent in 2012, with regard to salaray to sales personnel around 42.1

percent of the expenditure made out of the total expenditure in 2006 and declined

in 2012 with 26.7 percent, nearly 1.3 percent spent towards advertisement in 2006

and which is declined to 0.3 percent in 2012, with respect to overall growth,around

1 lakh and 08 thousand in 2006 which is increased to 2 lakhs and 49 thousands in

2012 with the hike of 128.9 percent of expenditure occurred on commission to

consumer during the period, around 8 thousands in 2006 which is increased to 19

thousands in 2012 with the hike of 140 percent of expenditure incurred on

commission to selling agent during the period, around 1 lakh rupees in 2006 spent

towards salary which is remained same in 2012 as well, around 2.6 thousands in

2006 spent towards advertisement which is decreased to 924 in 2012 with the

decline of 64.6 percent, at the outset overall value of the marketing expenditure

was 2 lakhs and 6 thousands which is increased to 3 lakhs and 67 thousand with the

hike of 78 percent during the study period, as the marketing expenditure is the

important component of the expenditure structure of Super Co-operative silks which

enables the sales promotion, however, irrespective sales level societies bound to

provide the entitled privileges to the weavers so the expenditure appears escalating

without concerning the corresponding increases in sales level.

176

TABLE NO: IV.36

OUTSTANDING LOANS OF SUPER SILK CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year Deposit’s from members

Cash credit from Kumbukonam central Co-operative bank

Total Outstanding

2006 43.48

(96.3)

1.69

(3.7) 45.2

2007 49.26

(72.1)

19.05

(27.9)

68.3

(51.2)

2008 48.44

(87.9)

6.66

(12.1)

55.1

(-19.3)

2009 67.09

(96.7)

2.29

(3.3)

69.4

(25.9)

2010 60.09

(97.2)

1.72

(2.8)

61.8

(-10.9)

2011 61.18

(97.1)

1.8

(2.9)

63.0

(1.9)

2012 62.5

(97.1)

1.8

(2.9)

64.5

(2.3)

Overall Growth

2006 43.48 1.6 45.16

2012 62.57

(43.9)

1.87

(11.2)

64.41

(44.8)

Source: Secondary data (Audited report of KSPCS

Table No: IV.36 depicts the outstanding of loans of the Super Co-

operative silk society during the study period as the outstanding of loans would

revealed the financial distress of the organization, 96.3 percent of the outstanding

177

loans owe to members of Co-operative society in 2006 which is increased to 97.1

percent in 2012, nearly 3.7 percent of outstanding loans owe to Kumbakonam

central Co-operative bank in 2006 which is declined to 2.9 percent in 2012, with

regard to overall growth nearly 43 lakhs and 47 thousands fund owe to depositors

in 2006 and which increased to 1 lakh and 69 thousands in 2012 with the increase of

10.9 percent, with regard to outstanding owe to Kumbakonam central Co-operative

bank nearly 1 lakh and 69 thousand have registered which is increased to 1 lakh and

87 thousand in 2012 with 10.9 percent increase, at the outset total outstanding was

45 lakhs and 16 thousands which was increased to 64 Lakhs and 45 thousands in

2012 with the increase of 42.7 percent during the study periodIt is clear that

outstanding have been consistently escalating during the study period.

TABLE NO: IV.37

SOURCES OF CAPITAL OF KAMARAJAR CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Share of members Share from Govt Total Capital

2006 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2007 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2008 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2009 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2010 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2011 2.45

(75.4) 0.8

(24.6) 3.25 (100)

2012 2.45

(75.4) 0.8

(24.6) 3.25 (100)

Source: Secondary data (Audited report of KSPCS)

178

FIGURE IV.13

0

0.5

1

1.5

2

2.5

3

3.5

2006 2007 2008 2009 2010 2011 2012

3.25 3.25 3.25 3.25 3.25 3.25 3.25

Total Capital

Total Capital

Table No:IV.37 describes the sources of capital of Kamarajar Co-

operative silk society during the study period, as 75.4 percent of the capital

generated through share of members in 2006 which remained constant in 2012,

around 24.6 percent of the capital generated through share from Government which

was remained same in 2012, none of the contribution acquired from reserve fund,

with respect to overall growth performance around 2 lakh 45 thousand of fund

raised through share of members which remain constant in 2012, around 80

thousand raised from share from Government and remained same in 2012 as well,

with regard to overall capital 3 lakhs and 25 thousands in 2006 as well as in 2012

share of the government and depositors have neither increased nor decreased during

the study period.

179

TABLE NO: IV.38

SALES OF KAMARAJAR CO-OPERATIVE SILK SOCIETY

(Rs in Lakhs)

year Direct

Sales

Sales through

Exhibition

Sales

through

Agent

Sales through

Co-operative

Total

Sales

2006 0.71

(10.6)

0.05

(0.7)

5.9

(88.7) - 6.7

2007 1.1

(18.1)

0.32

(5.4)

4.6

(76.5) -

6.0

(-10.8)

2008 1.1

(16.6)

0.40

(5.8)

4.4

(64.4)

0.90

(13.3)

6.8

(14.8)

2009 1.2

(16)

0.04

(0.5)

5.0

(70)

0.97

(13.5)

7.2

(5)

2010 1.2

(21)

0.11

(1.9)

3.4

(59.3)

1.0

(17.8)

5.7

(-21.3)

2011 1.3

(15.5)

0.22

(2.5)

4.1

(48.1)

2.88

(33.9)

8.5

(50.7)

2012 1.6

(16.4)

0.25

(2.5)

4.7

(47.5)

3.35

(33.7)

10.0

(17.01)

Overall Growth

2006 0.7 0.045 5.93 - 6.6

2012 1.6

(130.4)

0.24

(446.2)

4.74

(-20.08)

- 9.98(49.3)

Source: Secondary data (Audited report of KSPCS)

180

6.76

6.8 7.2

5.7

8.5

10

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2012

Total Sales

Total Sales

FIGURE IV.14

Table No: No:.4.38 Demonstrates the value of the sales of silk products

through various source of Kamarajar silk Co-operative silk society in study period,

with regard to direct sales around 10.6 percent of the value of sales obtained in 2006

which is increased 16.4 percent in 2012, with regard to sales through exhibition 0.7

percent in 2006 and increased to 2.5 percent in 2012, with respect to sales through

agent around 88.7 percent of the sales made in 2006 and which was decline to 47.5

percent in 2012, in connection with the sales through Co-operative none of sales

made under this category in 2006 and registered to 33.7 percent in 2012 ,with regard

to overall changes around 71 thousands in 2006 which is increased to 1 lakh and 63

thousands in 2012 with the increase of 130.4 percent from 2006 of direct sales

taken place during the period, the Co-operative sold 4.5 thousand through

exhibition in 2006 which was increased 24 thousands during the study period, 5

lakh and 93 thousands worth of silk products sold through commission agents in

2006 which declined to 4 lakhs 74 thousands in 2012 with the decline of 20.8

percent, through Co-operative the Co-operative made 1 lakh and 56 thousands in

2012, at the outset overall value of the silk products sole was 6 lakhs and 68

181

thousands which is increased to 9 lakhs and 98 thousand with the increase of 49.3

during the study period, it is apparent from the empirical findings that Kamarajar

Co-operative silk society have made significant increase in direct sales, in sales

through exhibition, decline in sales through agent and increase in Co-operative,

which unlike picture from rest of the societies as sales through agent was declining,

at the outset meager proportion of the increase taken place during the study period.

TABLE NO: IV.39

KAMARAJAR CO-OPERATIVE PURCHASE OF RAW MATERIALS

(Rs in Lakhs)

Year Yarn Zari Chemical Total Expenditure

2006 0.3

(82.3) 0.05(15.8)

0.006

(1.9) 0.32

2007 0.3

(82.7) 0.07(15.5)

0.007

(1.8)

0.42

(32)

2008 0.6

(85) 0.10(13.9)

0.008

(1.1)

0.72

(127.2)

2009 0.7

(80.6) 0.15(17.3)

0.018

(2.1)

0.87

(20.9)

2010 0.9

(78.5) 0.22(20.1)

0.016

(1.5)

1.10

(26.3)

2011 0.9

(73.7) 0.31(24.8)

0.019

(1.5)

1.25

(14)

2012 1.0

(73.7) 0.33(24.8)

0.020

(1.5)

1.35

(7.8)

Overall Growth

2006 0.3 0.05 0.006 0.32

2012 1.0

(331.4)

0.33

(568.4)

0.020

(241.4)

1.35

(326.1) Source: Secondary data (Audited report of KSPCS

182

Table No:IV.39 exhibits the value of the raw materials purchased by

Kamarajar Co-operative silk society from 2006 to 2011, with regard to yarn

purchase about 82.3 percent of the total raw materials purchase incurred in 2006

and then onwards value of purchase consistently shown descending trend and in

2012 it came down to 73.7 percent with significant increase from 2006,with

respect to zari purchase nearly 15.8 percent of the total raw materials procurement

incurred in 2006 and then onwards value of purchase constantly fluctuated and in

2011 it increased to 24.8 percent with significant increase from 2006,with regard

to Chemical purchase around 1.9 percent of the total raw materials spent on

chemicals purchase in 2006 and then onwards value of purchase consistently

decreased and in 2012 it had decreased to 1.5 percent with substantial decline

from 2006, the overall growth of the various components witnessed consistent

escalation, the Kamarajar Co-operative silk society spent around 26 thousand in

2006 for yarn purchase which is increased to around 99 thousand in 2012 with the

escalation of 281.4 percent, in connection with zari procurement in 2006 the Co-

operative spent nearly 5+ thousands which is increased to nearly 33 thousands

with the increase of 568.4 percent, for chemical purchase around 6 hundred spent

in 2006 and which is increased to 2 thousand with the increase of 241.4 percent at

the outset total raw material purchase for Kamarajar Co-operative silk society was

around 31 thousand which is increased 1lakh and 34 thousands in 2012 with the

hike of 326.1 percent it is clear from the empirical verification that the expenditure

on raw materials purchase were steadily increased during the study period.

183

TABLE NO: IV.40

OPERATIONAL EXPENDITURE OF KAMARAJAR CO-OPERATIVE

SILK SOCIETY

(Rs in Lakhs)

Year Estab.Exp Trade .Exp Int on Borrowing Total Expenditure 2006 1.2

(4.6) 1.7

(6.5) 22.8

(88.9) 25.6

2007 1.1 (5.1)

0.5 (2.5)

19.4 (92.4)

21.0 (-18.1)

2008 1.2 (4.8)

0.9 (3.3)

23.9 (91.9)

26.0 (23.9)

2009 1.6 (5.7)

0.9 (3.3)

24.9 (91)

27.3 (5.4)

2010 0.9 (3.1)

1.0 (3.5)

26.0 (93.4)

27.8 (1.7)

2011 0.9 (3.4)

0.9 (3.2)

25.5 (93.4)

27.3 (-1.7)

2012 0.9 (3.1)

0.9 (3.0)

26.8 (93.9)

28.5 (4.4)

Overall Growth 2006 1.2 1.7 22.8 25.6 2012 0.9

(-25.3) 0.9

(-48.5) 26.8

(17.8) 28.5

(11.5) Source: Secondary data (Audited report of KSPCS)

Table No: IV.40 depicts the operational expenditure of the Kamarajar

silk Co-operative silk society during the study period, with regard to establishment

expenditure around 4.6 percent of the expenditure made under this category and

decreased to 3.1 percent in 2012, with respect to Trade expenditure around 6.5

percent of the expenditure made under this classification and decreased to 3 percent

in 2012, with regard to bonus to weavers nothing have beeen spent by the Co-

operatives during the study period, with respect to interest payment 88.9 percent

spent in 2006 which get increased to 93.9 percent in 2012, with respect to overall

growth,around 1lakh and 17 thousand in 2006 which is decreased to 87 thousand

184

in 2012 with the decline of 25.3 percent of expenditure occurred on establishment

cost, around 1 lakh and 66 thousand in 2006 which is increased to 85 thousand in

2012 with the decrease of 48.5 percent of expenditure occurred on trade charges

during the study period, with regard to interest for payment 22 lakhs and 76

thousands spent in 2006 and which is increased to 26 lakhs and 80 thousands, at the

outset overall value of the operational expenditure was 25 lakhs and 59 thousand

which is increased to 28 lakhs and 53 thousand with the increase of 11.5 percent

during the study period, as the Co-operatives bound to make some payments

irrespective of the sales level.

TABLE NO: IV.41

MARKETING EXPENDITURE INCURRED BY KAMARAJAR CO-

OPERATIVE SILK SOCIETY

(Rs in Lakhs)

Year Commission to selling agent

Salary to sales Person

Advertisement Total Expenditure

2006 0.07 (5.6)

1.06 (84.8)

0.12 (9.6) 1.25

2007 0.04 (3.1)

1.12 (88.2)

0.11 (8.7) 1.27(1.6)

2008 0.04 (3)

1.18 (90.8)

0.08 (6.2) 1.30(2.3)

2009 _ 1.40 (88.6)

0.18 (11.4) 1.58(21.5)

2010 0.03 (1.5)

1.80 (90.5)

0.16 (8) 1.99(25.9)

2011 0.03 (1.4)

1.96 (91.6)

0.15 (7)

2.14 (7.5)

2012 0.04 (1.76)

2.06 (92.1)

0.15 (6.6)

2.25 (4.9)

Overall Growth 2006 0.07 1.06 0.12 1.25 2012 0.04

(-50) 2.06

(94.3) 0.15 (25)

2.25 (79.6)

Source: Secondary data (Audited report of KSPCS)

185

Table No: IV.41 depicts the marketing expenditure of the Kamarajar silk

co-operative silk society during the study period, with regard to commission to

consumer nothing have been spent, with respect to commission to to selling agent

around 5.6 percent of the expenditure made under this classification and decreased

to 1.7 percent in 2012, with regard to salary to sales personnel around 84.8

percent of the expenditure made out of the total expenditure in 2006 and increased

in 2012 with 92.1 percent, nearly 9.6 percent spent towards advertisement in 2006

and which is declined to 6.6 percent in 2012, with respect to overall growth, around

7 thousands in 2006 which is increased to 3.5 thousands in 2012 with the decline of

50 percent of expenditure incurred on commission to selling agent during the

period, around 1 lakh and 6 thousand rupees in 2006 spent towards salary which was

increased to 2 lakhs and 6 thousands in 2012, around 12 thousands in 2006 spent

towards advertisement which is increased to 15 thousands in 2012 with the decline

of 25 percent, at the outset overall value of the marketing expenditure was 1lakh

and25 thousands which is increased to 2 Lakhs and 24 thousand with the hike of

79.6 percent during the study period, as the marketing expenditure is the important

component of the expenditure structure of Kamarajar Co-operative silks which

enables the sales promotion, unlike other Co-operatives Kamarajar Co-operatives

didn’t made any commission towards consumer through discount during the study

period.

186

TABLE NO: IV. 42

OUTSTANDING LOANS OF KAMARAJAR CO-OPERATIVE SILK

SOCIETY

(Rs in Lakhs)

Year

Deposit’s from

members

Cash credit from

kumbukonam central Co-

operative bank

Total

Outstanding

2006 22.5

(95.6)

1.04

(4.4) 23.5

2007 30.2

(73.7)

10.77

(26.3)

41.0

(74.3)

2008 22.9

(86.5)

3.59

(13.5)

26.5

(-35.2)

2009 22.4

(95)

1.18

(5.0)

23.5

(-11.3)

2010 52.7

(97.9)

1.14

(2.1)

53.8

(128.6)

2011 57.2

(98.1)

1.11

(1.9)

58.3

(8.4)

2012 59.6

(98.1) 1.13 (1.9)

60.8

(4.2)

2006 22.4 1.04 23.50

2012 59.6

(165.4)

1.13

(8.9)

60.7

(158.5)

Source: Secondary data (Audited report of KSPCS

187

Table No:IV.42 Portrays the outstanding of loans of the Kamarajar Co-

operative silk society during the study period as the outstanding of loans would

reaveled the finacial distress of the organziation, 95.6 percent of the outstanding

loans owe to members of Co-operativeertaivesoceity in 2006 which is increased to

98.1 percent in 2012, nearly 4.4 percent of outstanding loans owe to Kumbakonam

central Co-operative bank in 2006 which is declined to 1.9 percent in 2012, with

reagrd to overall growth nearly 22 lakhs and 46 thousands fund owe to depositers

in 2006 and which increased to 59 lakh and 62 thousands in 2012 with the increase

of 165.4 percent,with regard to outstanding owe to Kumbakonam central Co-

operative bank nearly 1 lakh and 04 thousand have registered which is increased to

1 lakh and 13 thousand in 2012 with 8.9 percent increase, at the outset total

outstanding was 23 lakhs and 50 thousands which was increased to 60 lakhs and 75

thousands in 2012 with the increase of 158.5 percent during the study period.It is

clear that outstanding have been consistently escalating during the study period.

188

TABLE NO: IV.43

COMPARATIVE PROFITABILITY ANALYSIS OF SEVEN SILK CO-

OPERATIVE SOCIETIES IN KUMBAKONAM TALUK GROSS PROFIT

Yea

r

Thir

ubuv

anam

Cho

lan

Dar

asur

am

Thir

uval

luva

r

Kal

aiva

nar

Supe

r

Kam

araj

ar

Tota

l Gro

ss

Prof

it

2006 489.89 40.59 2.86 5.72 0.53 1.92 1.09 542.6

2007 561.4

(14.6)

61.6

(52)

2.13

(-25.5)

14.6

(155.6)

0.14

(-73.6)

0.79

(-58.9)

0.6

(-45)

641.2

(18.2)

2008 413.3

(-26.4)

51.81

(-16)

1.99

(-6.7)

9.46

(-35.3)

0.33

(135.7)

0.13

(-83.5)

1.03

(71.7)

478.05

(-25.5)

2009 601.3

(45.5)

81.09

(56.5)

1.80

(-9.5)

16.4

(73.4)

0.38

(15.2)

1.03

(692.3)

1.47

(42.7)

703.47

(47.2)

2010 560.5

(-6.8)

84.0

(3.6)

1.61

(-10.7)

18.2

(11.4)

0.36

(-5.3)

0.78

(-24.3)

1.63

(10.9)

667.08

(-5.2)

2011 623.16

(11.2)

88.30

(5.1)

1.53

(-5)

19.42

(6.3)

0.52

(44.4)

0.62

(-20.5)

1.31

(-19.6)

734.86

(10.2)

2012 656.81

(5.4)

93.06

(5.4)

1.41

(-7.7)

20.72

(6.7)

0.61

(15.4)

0.68

(11.2)

1.39

(6.2)

774.68

(5.4)

Overall Growth

2006 489.9 40.6 2.9 5.7 0.5 1.9 1.1 542.6

2012 656.8

(34.1)

93.06

(129.3)

1.4

(-50.8)

20.7

(262.3)

0.61

(15.1)

0.68

(-64.8)

1.39

(27.5)

774.6

(42.8)

Source : Secondary data ( Audited reports Silk Co-operative societies)

189

542.6641.2

478.1

703.5 667.1734.9 774.7

0100200300400500600700800900

2006 2007 2008 2009 2010 2011 2012

Gross Profit

Gross Profit

FIGURE IV.15

Table No. IV. 43 depicts the gross profit of the co-operative silk producer

in the study area, with respect to Thirubuvanam the gross profit was 489.8 lakhs in

2006 which is hiked to 656.7 lakhs in 2012 with the hike of 34.1 percent during the

study period, cholam silk producers have obtained the Gross profit 40.6 lakhs in

2006 which is increased to 93.06 lakhs in 2012 with the hike of 129.3 percent, with

respect to Darasuram 2.9 lakhs of gross profit obtained in 2006 and which is

declined to 1.4 lakhs in 2012 with the decline of 50.8 percent during the study

period, with respect to Thiruvalluvar co-operative silk producer the gross profit was

5.7 lakhs in 2006 which is hiked to 20.7 lakhs in 2012 with the hike of 262.3

percent during the study period, with regard to Kalaivanar co-operative silk

producer the gross profit was 0.5 lakhs in 2006 which is hiked to 0.6 lakhs in 2012

with the hike of 15.1 percent during the study period, as per as Super co-operative

silk producer as concern the gross profit was 1.9 lakhs in 2006 which is declined to

0.68 lakhs in 2012 with the decline of 64.8 percent during the study period,with

regard to Kamarajar co-operative silk producer the gross profit was 1.1 lakhs in

2006 which is hiked to 1.39 lakhs in 2012 with the hike of 27.5 percent during the

190

study period, it oculd be inferred from the empirical verification that except

Thirubuvanam , Cholan and Thiruvalluvar co-operative silk producer rest of the silk

producers have undergone fluctuation in gross profit during the study period and in

the same line the analysis also revealed that the proportion of the profit margin

between 15 percent to 26 percent for all the co-operatives in the study area, at the

outset the profit of the co-operative silk producers were relatively poor when

compare to the labourious activity involved in the silk sarees production in the study

area.

TABLE : NO. IV. 44

NET PROFIT

Yea

r

Thir

ubuv

anam

Cho

lan

Dar

asur

am

Thir

uval

luva

r

Kal

ivan

ar

Supe

r Si

lks

Kam

araj

ar

Tota

l Net

Pro

fit

2006 269.06 18.3 1.5 2.7 0.25 0.98 .69 293.5

2007 281.03 (4.4)

29.4 (61.5)

1.10 (-26.8)

11.7 (9.7)

0.06 (-74.8)

0.39 (-59.6)

0.6 (-45)

324.28 (10.5)

2008 193.93 (-31.0)

25.1 (-14.6)

0.9 (-11.7)

5.281 (-54.0)

0.14 (133.1)

0.06 (-82.4)

0.03 (71.7)

225.4 (-30.5)

2009 366.54

(89) 39.2

(55.9) 0.9

(-7.3) 9.39

(48.7) 0.17 (19)

0.58 (-22.1)

0.37 (42.7)

417.1 (85)

2010 376.14 (2.6)

40.6 (3.6)

0.7 (-12)

10.75 (40.1)

0.16 (-5.9)

0.42 (-27.6)

0.42 (10.9)

429.1 (2.9)

2011 392.56 (4.4)

41.9 (3.1)

0.78 (-2.3)

11.7 (70.8)

0.22 (37.5)

0.34 (-18.2)

0.31 (-19.6)

447.8 (4.3)

2012 429.0 (9.3)

43.8 (4.5)

0.7 (-3.8)

12.9 (11.1)

0.25 (11.8)

0.37 (9.3)

0.4 (9.3)

487.4 (8.8)

Overall Growth 2006 269.1 18.3 1.5 2.7 0.25 0.98 0.69 293.5

2012 429

(59.4) 43.8

(139.8) 0.7

(-53.8) 12.9

(339.8) 0.25

(-0.06) 0.37

(-62.2) 0.4

(-18.4) 487.42 (66.1)

Source : Secondary data ( Audited reports Silk Co-operative societies)

191

293.5324.3

225.4

417.2 429.2 447.8487.4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2006 2007 2008 2009 2010 2011 2012

Net Profit

Net Profit

FIGURE IV.16

Table No. IV. 44 depicts the net profit of the co-operative silk producer

in the study area, with regard to Thirubuvanam the net profit was 269.1lakhs in 2006

which is hiked to 429 lakhs in 2012 with the hike of 59.4 percent during the study

period, cholam silk producers have obtained the Net profit 18.3 lakhs in 2006 which

is increased to 43.8 lakhs in 2012 with the hike of 139.3 percent, with respect to

Darasuram 1.5 lakhs of net profit obtained in 2006 and which is declined to 0.7

lakhs in 2012 with the decline of 53.8 percent during the study period,with respect

to Thiruvalluvar co-operative silk producer the net profit was2.7 lakhs in 2006

which is hiked to 12.9 lakhs in 2012 with the hike of 339.3 percent during the study

period,with regard to Kalaivanar co-operative silk producer the net profit was 0.25

Lakhs in 2006 which is experienced mild decline to 0.24 Lakhs in 2012 with the

decline of 0.06 percent during the study period, as per as Super co-operative silk

producer as concern the net profit was 0.98 lakhs in 2006 which is declined to 0.37

Lakhs in 2012 with the decline of 62.2 percent during the study period,with regard

192

to Kamarajar co-operative silk producer the net profit was 0.69 Lakhs in 2006

which is hiked to 0.4 Lakhs in 2012 with the decline 18.4 percent during the study

period, it is apparent from the empirical verification that net profit of the co-

operative silk producers trend more or less corresponding to the to the gross profit

during the study period, however Super and Kamarajar silk producers have

undergone negative trend along with Darausram, at the outset it could be inferred

that the net profit of the co-operative silk producers were reladequate.

TABLE NO : IV.45

RETURN ON INVESTMENT OF TIRUBUVANUM CO-OPERATIVE SILK SOCIETIES

Year

Thir

uval

luva

r

Cho

lan

Dar

asur

am

Kal

aiva

nar

Supe

r

Thir

ubuv

anam

Kam

araj

ar

2006 0.05 0.26 0.04 0.03 0.33 0.26 0.21

2007 0.22 0.34 0.34 0.00 0.13 0.25 0.19

2008 0.09 0.03 0.03 0.02 0.02 0.16 0.02

2009 0.17 0.03 0.03 0.01 0.020 0.28 0.11

2010 0.19 0.45 0.04 0.02 0.15 0.27 0.12

2011 0.20 0.44 0.02 0.03 0.13 0.23 0.09

2012 0.23 0.43 0.02 0.03 0.15 0.24 0.12

Source: secondary data

193

The above table No IV.45 exhibits the result of return on investment for

the seven silk co-operative societies were functioning . return on investment lies

very high for the Thirubuvanam silk society due to high member and the society has

more active looms when compared with all other societies .Even though when

compared with previous seven years investment turn on inv year 2012 increased by

9,35 percent it seems to be an gradual increase in ROI. It clear that by way of

return on investment Thirubuvanam , Thiruvalluvar and Cholan co-operative silk

societies performed well , return on investment of the Super silk co-operative

societies and Kamaajar co-operative silk societies were fall on the next of the

leading societies., and the return on investment of kalaivanar and Darasuram silk

co-operative societies were very megare because of the demand of the product is

going to outdated due to high cost poor technology.

194

CHAPTER V

SOCIO-ECONOMIC CONDITIONS AND PERCEPTIONS OF

WEAVERS ON SILK CO-OPERATIVES

In this Chapter an attempt is made to analyze, various aspects of the socio

economic conditions and perceptions of silk weavers in Kumbakonam taluk. The

important tactors such as sex age, caste, education, marital status, economic states

and business profile, financial structure and of weavers were studied..

Gender

One significant universally accepted criterion of development is gender.

There is a clear distinction made in development literature between sex and gender.

Sex relates to the biological differences between male and female, whereas gender

relates to the roles assigned to male and female in the society. Thus, gender is a

socio-economic variable involving roles, responsibilities, constraints, opportunities

and needs of males and female in an economy.

195

TABLE NO: V. 1

GENDER WISE DISTRIBUTION OF THE RESPONDENTS

Response category Numbers Percentage

Male 122 69.7

Female 53 30.3

Total 175 100

Source: Primary data

Table No: V.1 gives the gender wise distribution of the respondents. In

the study 69.7 percent of the respondents were male and 30.3 percent of the

respondents were female, it could be inferred from the empirical verification that

more than 2/3 of the respondents were male even most of the weavers were male

and women were assisting them in the process.

Age wise distribution of the Respondents

TABLE NO: V.2

AGE WISE DISTRIBUTION OF THE RESPONDENTS

Age (years) Category Numbers of Respondents Percentage

Up to 30 20 11.3

31 to 40 29 16.3

41-50 60 34

51 to 60 44 25.3

above 60 23 13

Total 175 100 Source: Primary data

196

TABLE NO: V.3

EDUCATIONAL STATUS OF THE RESPONDENTS

Educational Level Numbers of Respondents Percent

Illiterate 18 10

Primary 64 37

S.S.L.C 46 2.2

H.Sc 33 19

Degree/ Diploma 14 8

Total 175 100

Source: Primary data

Table No:V.3 exhibits the educational status of the respondents in the

study area, out of 175 respondents 37% were belongs to the category of primary

education, 26% of weavers’ respondents were completed the school education, 19%

respondents were finished their HSC and higher education of degree and diploma

were completed by 14% respondents. Nearly 18% of the respondents has even

primary educational qualification.

Caste

Indian society stratified with the closed caste system which is the

operating element in accessing the social, economic and cultural privileges from the

society, Especially in the rural society caste the important identity to the individuals,

government has categorized the cluster of caste into major divisions for its

197

administrative purpose to implement the affirmative action, at the outset Indian

social system is caste bounded society.

TABLE NO: V.4

CASTE WISE DISTRIBUTION OF THE RESPONDENTS

Community Numbers Percent

FC 33 18.7

BC 124 70.7

MBC 12 7

SC 6 3.7

Total 175 100

Source: Primary data

Table No:V.4 depicts the caste wise classification of the respondents, 18.7

percent of the respondents belong to FC, 70.7 percent of the respondents belong to

BC, 7 percent hails from and 3.7 percent belongs to MBC and SC respectively. In

precise, majority of the respondents belonged to BC in the respondents groups in the

study area, especially the saurastra people largely engaging in these activities along

with rest of the communities in the study area.

198

Marital Status

TABLE NO: V.5

MARITAL STATUS OF THE RESPONDENTS

Marital Status Numbers Percent

Married 151 86

Unmarried 13 7.7

Divorced / Individual 6 3.7

Widows 5 2.7

Total 175 100

Source: Primary data

TABLE NOV.6

INCOME PATTERN OF RESPONDENTS

Income Grade (finance) Numbers Percent

Less than 20,000 88 50.3

20,001 to 30,000 71 40.7

30,001 to 40,000 11 6

40,001 and above 5 3

Total 175 100

Source: Primary data

199

0

10

20

30

40

50

60

Less than 20,000 20,001 to 30,000 30,001 to 40,000 40,001 and above

50.3

40.7

63

Income

FIGURE V.1

Table NoV.6 It can be seen from the table that more than 50per colves the

response annual income floss the Rs20,000. with regard to income of the respondent

50.3 percent of the respondents annual income is less than 60,000, nearly 41

percent of the respondents income range from 60001 to 90,000, 6 percent of the

respondents income constitutes from 90,001 to 1,20,000, and 3 percent of the

respondents annual income is above 120000 , nearly 91 % of the respondents annual

income were below 90,000 which implies that the women weavers were get less

income which had repercussions on poverty and purchasing power of the weavers

in the study area.

200

TABLE NO:V.7

HOUSEHOLD EXPENDITURE

Expenditure Numbers Percent

Less than 60,000 88 50.3

60,001 to Rs 90,000 71 41

90,001 to 1,20,000 11 6

1,20,001 and above 5 2.7

Total 175 100

Source: Primary data

FIGURE V.2

Table No:V.7 illustrates the expenditure pattern of the respondents, none

of the people falls in no expenditure category, 70.3 percent of the respondents spend

on procurement of food and non-food items per annum between 0-10000,8.3

percent of the respondents spends between 10001-20000, 10.3 percent of the

House Hold Expenditure

201

respondents spends from the slab between 20001-30000, 3 percent of the

respondents spend between 30001-40000, 2 percent of the of the respondents spends

from 40001-50000, 2 percent of the of the respondents spends from 50001-60000,

and 3 percent of the respondents spends 60,000 and above per annum, it could be

inferred from the analysis that low level of the expenditure is the result of low

income level, further the analysis revealed that persistence of poverty high among

the weavers in the study area.

TABLE NO:V.8

SAVINGS PATTERN OF RESPONDENTS

Annual savings Numbers Percent

Nil 65 37.3

Up to Rs 100 53 30

100-200 26 15

200-300 13 7.7

400-500 11 6.3

500 and above 6 3.7

Total 175 100

Source: Primary data

202

37%

30%

15%

8%6% 4%

Savings

No savings

0-100

100-200

200-300

400-500

500 and above

FIGURE V.3

Table No:.V.8 exemplifies the savings pattern of the respondents, around

37.3 percent of the people revealed that they haven’t made any savings, 30 percent

of the respondents were savings 0-100 per month, 15 percent of the respondents

were made saving 101-200 per month, 7.7 percent of the people saves between 200-

300 rupees per month,6.3 percent of the respondents were saves between 400-500

per month and 3.7 percent of respondents were made savings 500 and above per

month, Saving money is a mirage among the weavers households,. The SHG has

taken the responsibility of collecting some of the earnings of the weavers once in 15

days under chits. So also the weavers organized themselves in groups to collect

little money daily, weekly or fortnightly from each weaver who is willing to join the

association. The respondents who saved money at home revealed that it was difficult

for them to contribute regularly to the chits.

203

40%

30%4%

25%

1%

Source of Loan

Private Money lenders

Pawn Broker

Co-operative banks

SHGs

Commercial banks

TABLE NO:V.9

SOURCES OF LOAN TO THE RESPONDENTS

sources of loan Numbers Percent

Money lenders 71 40.3

Pawn broker 53 30

Co-operative banks 6 3.7

SHGs 44 25

Commercial banks 2 1

Source: Primary data

FIGURE V. 4

Table No: V.9 illustrates the source of loan of the respondents as loans

are the important component of the economic activity of the weavers in the study

area, around 40.3 percent of the respondents use to avail the loan from the private

moneylenders, 30 percent of the respondents revealed that they mortgage the jewels

204

in the nearby pawn broker shops for the credit requirement, 3.7 person availed loan

from co-operative banks, 25 percent of the respondents availed the loan from SHGs

and merely 1 percent of the respondents were got the loan from commercial loans, it

could be inferred from the empirical investigation that the institutionalized credit

facilities are not accessible to the respondents at the large.

TABLE NO:V.10

BUSINESS PROFILE OF DESPONDENCE

Business experience (year) Numbers Percent

Up to 5 yrs 23 13.3

6--10 yrs 46 26.3

11--15 yrs 60 34

16--20 yrs 24 13.7

Above 20 years 22 12.7

Total 175 100

Source: Primary data

Table No:V.10 illustrates the no of years of experience of the respondents

as weaver, 13.3 percent of the respondents had experience for last five years, 26.3

percent got experience between 6 yrs to 10 yrs, 34 percent run the company

between 11yrs to 15 yrs,13.7 percent got the between 16 yrs to 20 yrs,12.7 percent

of the respondents had experience for more than 20 years, majority of the

respondents have got experience more than 15years, around 60 percent of the

respondents falls in the category, it could be inferred from the analysis that major

205

3%

14%

77%

5% 1%

No of days of employment

0-1011--15

15-2021-25

26-30

chunk of the respondents were middle aged people and got more experience as

weaver.

TABLE NO :V.11

JOB AVAILABILITY PER MONTH

Days of Employment

in a month

Number of

respondents

Percentage

0-10 5 2.8

11--15 26 14.7

15-20 134 76.7

21-25 9 5.0

26-30 1 0.8

Total 175 100

Source: Primary data

206

Table No:V.11 represents the respondents statement on the number of

days of employment get per month, 2.8 percent of the respondents have opined that

they got the employment of 0-10 days per month, 14.7 percent of the respondents

have told that they could avail the employment between 11-15 days per month,76.7

percent of the respondents explained that they got 15-20 days of employment per

month,5 percent of the respondents got the employment between 21-25 days,merly

0.8 percent of the respondents got the employment between 26-30 days per month,

the majority of the respondents have got the employment between 15-20 days per

month which means that large segment of the respondents have got the job during

half of the month in the same line season wise employment is also palyed pivotal

role in determining the no days of employment in the study area.

TABLE NO:V.12:

OPINION ABOUT EMPLOYMENT AND COMPENSATION

Opinion Job adequacy Wage rate

Numbers Percent Numbers Percent

Yes 17 9.6 21 11.9

No 158 90.4 154 88.1

Total 175 100 175 100

Source: Primary data

207

FIGURE V.5

Table V.12 illustrates the respondents perception on getting adequate

employment and wage in the study area, 90.4 percent of the respondents have told

that they haven’t got the adequate employment to meet their minimum subsistence

level, only 9.6 workers have told that they use to get adequate employment, it could

be quite strange from the above table but people have told that the employment

given to them is not adequately support them to lead the minimum standard of

living, with regard to income the income level generated through the work, 88.1

percent of the respondents have told that they don’t get the adequate income out of

the weaving work, they are all very concern about the increasing prices for the

essential commodities and also felt regret that their income is not increase to that

level to meet the expenditure, 11.9 percent of the respondents have told that they got

the adequate income from the work, despite of the fact human won’t satisfied with

208

what they have but here the income pattern really grim and also the expenditure is

escalating on the other hand.

TABLEV.13

DIFFICULTIES OF WEAVERS IN KUMBAKONAMTALUK

Opinion Numbers Percentage

Underutilization capacity 11 6.3

Inadequate work place 21 12.0

Forced to work more time 15 8.6

Inability to adapt latest technology 14 8.0

All above five 114 65.1

Total 175 100

Source: Primary data

FIGURE V.6

6.3

12.0

8.6

8.065.1

Underutilization capacity

Inadequate work place

Forced to work more time

Inability to adapt latest technology

All above five

209

Table 5.15 explains the kind of difficulties weavers has been facing in the

study area, 6.3 percent of the respondents have told that their capacity have not been

optimally utilized, 12 percent of the respondents have opined that they haven’t got

the adequate space for working ,8.6 percent of the respondents have opined that they

had been forced to work more than the entitled time schedule,8 percent of the

respondents opined that they have inadequate potentiality to adopt the new

innovative skills and technology, 65.1 percent of the respondents have exemplified

that they had been facing all the above five problems, hence it is very apparent from

the empirical illustration that weavers working for wages are more vulnerable than

the weavers owning the looms and they have been undergoing lot of problems in the

working area.

TABLE V 14

OCCUPATIONAL DISEASES

Yes Percent No Percent

Causes eye sight 121 69.1 54 30.9

Causes Skin rashes 109 62.3 66 37.7

Causes back pain 111 63.4 64 36.6

Causes Asthma 116 66.3 60 34.3

Causes spin disorders 117 66.9 58 33.1

All the above 165 94.3 10 5.7

Source: Primary data

210

FIGURE V.7

0.010.020.030.040.050.060.070.080.090.0

100.0

Causes eye sight

Causes Skin

rashes

Casues back pain

Causes Asthma

Casuses spin

disorders

All the above

69.162.3 63.4 66.3 66.9

94.3

30.937.7 36.6 34.3 33.1

5.7

Occupational diseases

Yes

No

Table.V.14 depicts the opinion of the respondents whether work

environment is caused any diseases, 69.1 percent of the respondents opined that the

work environment caused eye sight problems ,30.9 percent of the respondents

opined no for the same,62.3 percent of the respondents opined that the work

environment caused Skin rashes,37.7 percent of the respondents revealed it didn’t

caused, 63.4 percent of the respondents opined that the work environment caused

back pain, 36.6 percent of the respondents opined no for the same,66.3 percent of

the respondents opined that the work environment caused asthma and respiration

,34.3 percent of the respondents didn’t accept the statement,61.7 percent of the

respondents opined that the work environment causes spin disorders,33.1 percent of

the respondents opined no for the same, 94.3 percent of the respondents opined that

the work environment causesall the above diseases, 5.7 percent revealed no for the

statement, hence at the outset working environment responsible for diseases of the

211

respondents. Generally the silk weaving activities use to have lot of process,

including dying, spinning, cleaning all these activities entails consequences which

unleash lot of externalities to the employees both positive and negative moreover

looms operators have not followed the adequate safety measures for their workers so

health deterioration is that the workers are working in the hazardous environment.

TABLE: V.15

OPINION OF RESPONDENTS FOR THE POOR PERFORMANCE OF SILK

CO-OPERATIVES

Opinion Strongly

agreed

Agreed No

opinion

Disagree

d

Strongly

Disagreed

Num

bers

Perc

ent

Num

bers

Perc

ent

Num

bers

Perc

ent

Num

bers

Perc

ent

Num

bers

Perc

ent

Improper

marketing

strategies

52 29.7 57 32.7 13 7.7 30 17 23 13

Delay in payment

creditor

60 34 69 39.7 12 6.7 20 11.3 15 8.3

Heavy

administrative cost

53 30.3 65 37.3 17 9.7 22 12.3 18 10.3

Delay in credit

collection of sales

32 18 37 21.3 9 5.3 53 30 44 25.3

Delay in getting

payments from

Govt

63 36 66 37.7 12 6.7 19 10.7 16 9

Source Primary data

212

Table: V.15 depicts the Opinion of respondents for the poor performance

of silk co-operatives in the study area, with regard to Improper marketing strategies

around 29.7 percent of the respondents strongly agree the statement, 32.7 percent

agreed, 7.7 percent didn’t have opinion, 17 percent didn’t agreed the statement and

13 percent strongly disagreed the statement, with regard to Delay in payment

creditor nearly 34 percent of the respondents strongly agree the statement, 39.7

percent agreed, 6.7 percent didn’t have opinion, 11.3 percent didn’t agreed the

statement and 8.3 percent strongly disagreed the statement, with respect to Heavy

administrative cost around 30.3 percent of the respondents strongly agree the

statement, 37.3 percent agreed, 9.7 percent didn’t have opinion, 12.3 percent didn’t

agreed the statement and 10.3 percent strongly disagreed the statement, with respect

to Delay in credit collection of sales 18 percent of the respondents strongly agree

the statement,21.3 percent agreed, 5.3 percent didn’t have opinion, 30 percent didn’t

agreed the statement and 25.3 percent strongly disagreed the statement, with respect

to Delay in getting payments from Govt around 36 percent of the respondents

strongly agree the statement, 37.7 percent agreed, 6.7 percent didn’t have opinion,

10.7 percent didn’t agreed the statement and 9 percent strongly disagreed the

statement, it could be inferred that improper financial management is the disaster for

the co-operatives poor performance and the various endogenous and exogenous

factors which accentuate the financial distress of the silk co-operatives in the study

area.

213

TABLE NO: V 16

PERCEPTIONS OF THE RESPONDENTS ON THE STRATEGY TO

IMPROVE THE FINANCIAL PERFORMANCE OF CO-OPERATIVES

Opinion Strongly agreed

Agreed No opinion Disagreed Strongly Disagreed

Num

ber

perc

ent

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Avoid Frequent interruption in production and Non-Submission of data to bank

64 36.3 67 38.3 12 6.7 18 10.3 15 8.3

Maintain regular bank accounts

58 33.3 61 35 8 4.3 26 15 22 12.3

Optimum utilization of capacity

57 32.3 63 36 9 5.3 24 13.7 22 12.7

Required turnover of personal

62 35.7 79 45.3 12 6.7 12 6.7 10 5.7

Clear outstanding payments

64 36.7 74 42 13 7.7 12 7 12 6.7

Maintain good relationships with weavers

61 34.7 72 41 13 7.3 18 10 12 7

214

Opinion Strongly agreed

Agreed No opinion Disagreed Strongly Disagreed

Num

ber

perc

ent

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Num

ber

s pe

rcen

t

Increase the technical efficiency of weavers

65 37.3 87 49.7 5 3 10 5.7 8 4.3

Enhance the operational ratios

58 33.3 76 43.3 13 7.3 16 9 12 7

Enhance the quality of product and services

64 36.7 85 48.7 6 3.7 12 6.7 8 4.3

Increases in the level of stock

53 30 59 33.7 11 6 32 18 22 12.3

Source: Primary data

Table No:V.16 Depicts the Perceptions of the respondents on the strategy

to improve the SSI productivity , with regard to the statement that Avoid Frequent

interruption in production and Non-Submission of data to bank 36.3 percent

strongly agreed the statement, 38.3 percent agreed, 6.7 percent didn’t have

opinion, 10.3 percent disagreed and 8.3 percent strongly disagreed the statement,

with regard to the statement Maintain regular bank accounts 33.3 percent strongly

agreed the statement, 35 percent agreed, 4.3 percent didn’t have opinion, 15

percent disagreed and 12.3 percent strongly disagreed the statement, with regard

to the statement Optimum utilization of capacity 32.3 percent strongly agreed the

215

statement, 36 percent agreed, 5.3 percent didn’t have opinion, 13.7 percent

disagreed and 12.7 percent strongly disagreed the statement, with regard to the

statement Required turnover of personal 35.7 percent strongly agreed the

statement, 45.3 percent agreed, 6.7 percent didn’t have opinion, 6.7 percent

disagreed and 5.7 percent strongly disagreed the statement, with regard to the

statement Clear outstanding payments, around 36.7 percent strongly agreed the

statement, 42 percent agreed, 7.7 percent didn’t have opinion, 7 percent disagreed

and 6.7 percent strongly disagreed the statement, with regard to the statement

Maintain good relations with weavers, around 34.7 percent strongly agreed the

statement, 41 percent agreed, 7.3 percent didn’t have opinion, 10 percent

disagreed and 7 percent strongly disagreed the statement, with regard to the

statement Increase the technical efficiency of weavers, around 37.3 percent

strongly agreed the statement, 49.7 percent agreed 3 percent didn’t have opinion,

5.7 percent disagreed and 4.3 percent strongly disagreed the statement, with

regard to the statement Enhance the operational ratios, around 33.3 percent

strongly agreed the statement, 43.3 percent agreed 7.3 percent didn’t have

opinion, 9 percent disagreed and 7 percent strongly disagreed the statement, with

regard to the statement Enhance the quality of product and services, around 36.7

percent strongly agreed the statement, 48.7 percent agreed 3.7 percent didn’t

have opinion, 6.7 percent disagreed and 4.3 percent strongly disagreed the

statement, with regard to the statement Increases in the level of stock, around 30

percent strongly agreed the statement, 33.7 percent agreed 6 percent didn’t have

opinion, 18 percent disagreed and 12.3 percent strongly disagreed the statement,

216

on the whole respondents have well aware about the financial distress of the co-

operatives.

TABLE NO: V.17`

PERCEPTIONS ON WEAVERS ON THE PERFORMANCE OF CO-

OPERATIVES

Opinion Highly

satisfied

Percent Satisfied Percent Not

Satisfied

satisfied

Percent

Clear

Transactions

26 15 29 16.7 120 68.3

Payment in time 30 17 32 18 114 65

Cordial function 23 13.3 27 15.3 125 71.3

Provision of

subsidies

19 10.7 22 12.7 134 76.7

Good Market

ambience

13 7.7 17 9.7 145 82.7

Loan

arrangements

18 10.3 22 12.3 135 77.4

Supply of Raw

materials

16 9 20 11.7 139 79.3

Political

Intervention

17 9.7 20 11.3 138 79

Source: Primary data

217

0

20

40

60

80

100

15 17 13.3 10.7 7.7 10.3 9 9.716.7 18 15.3 12.7 9.7 12.3 11.7 11.3

68.3 6571.3

76.782.7

77.4 79.3 79

Perceptions on weavers on the performance of Co-operatives

Highly satisfied

Satisfied

Not Satisfied satisfied

FIGURE 5.8

Table No: No: V.17 illustrates the perceptions of the respondents on silk

co-operatives performance, with respect Clear Transactions 15 percent of the

respondents highly satisfied with the transparency in truncations, 16.7 percent

satisfied and 68.3 percent of the respondents were not satisfied, with respect

Payment in time 17 percent of the respondents highly satisfied with the payment

process, 18 percent satisfied and 65 percent of the respondents were not satisfied,

with respect to Cordial function 13.3 percent of the respondents highly satisfied with

the cordial functional relationship among the co-operative members and officials,

15.3 percent satisfied and 71.3 percent of the respondents were not satisfied, with

regard to Provision of subsidies 10.7 percent of the respondents highly satisfied

with the provision of subsidies , 12.7 percent satisfied and 76.7 percent of the

218

respondents were not satisfied, with respect toGood Market ambience 7.7 percent of

the respondents highly satisfied with the marketing facility available in the co-

operative, 9.7 percent satisfied and 82.7 percent of the respondents were not

satisfied, with respect to Loan arrangements 10.3 percent of the respondents highly

satisfied with the institutional loan facilities made available through co-operatives,

12.3 percent satisfied and 77.4 percent of the respondents were not satisfied, in

connection withSupply of Raw materials the 9 percent were highly satisfied,11.7

percent have satisfied and 79.3 percent of the respondents were not satisfied, and in

regard to Political Intervention in co-operative around 9 percent highly satisfied,

11.3 percent were not satisfied and the 79 percent were not satisfied with the

facilities, it could be inferred from the empirical findings that majority of the

respondents have not satisfied with the various activities of the co-operative

societies ,however, co-operative societies use to give minimum guarantee to the

weavers when compare with the private players, thus, it was apparent from the study

that the amenities were inadequate in the study area.

219

TABLE NO: V.18

SUGGESTIONS TO IMPROVE SILK CO-OPERATIVES

Opinion Numbers Percent

Timely delivery of raw materials 12 7

Cheap credit 9 5.3

Reduce political intervention 7 4

Technical education/ training and research 6 3.7

Extension of market 8 4.3

Organization of trade fairs and exhibitions 6 3.3

Display of products at show rooms and imports

at different trade centers and a broad

6 3.7

Govt. Policy and taxation 5 3

All the above 115 65.7

Total 175 100

Source: Computed from Primary data

Table No: No:.V.18 illustrates the Suggestions of the respondents to

improve the silk co-operatives in the study area, 7 percent t of the respondents

revealed that timely delivery of raw materials without compromising the quality,

5,3 percent institutional credit at cheaper interest rate need to provided for co-

operative operation and launch, 4 percent opined that adoption of new innovative

method reduce the cost of the production, 3.7 percent revealed that technical

education/training and research need to be developed with more focus to SSI

development, 4.3 percent for extension of market for the product, 3.3 percent opined

that periodical Organization of trade fairs and exhibitions is essential for the

220

development of silk co-operative, 3.7 percent opined that there is a need to Display

of products at show rooms and imports at different trade centers and a broader level,

3 percent of the respondents opined that Government taxation policy need to be

restructured in favour of silk co-operatives development,65.7 percent of the

respondents opined that all the above suggestions is essential for the development of

silk co-operatives , on the whole it could be inferred that the financial facilities,

marketing and the technical innovations need to be enhanced for the development

of silk co-operatives in the study area.

Hypotheses testing

Ho: There is no influence of business environment, Government policy

and the finance on the performance of the silk producing units output in the study

area.

TABLE NO: V. 19

MODEL SUMMARY

Model R R

Square

Adjusted

R Square

Std. Error

of the

Estimate

Durbin-

Watson

1 .678(a) 0.625 0.691 833.79 1.001

a. Predictors: (Constant)Business environment, Policy of the Govt,

Institutional Loan, Marketing

b. Dependent Variable: Output

221

TABLE NO: V. 20

ANOVA (B)

Mode Sum of

Squares

df Mean

Square

F Sig.

1 Regression 5663.8 167 1331.21 10.2 .002(a)

Residual 1211.1 133 675.4

Total 6874.9 300

a. Predictors: (Constant)Business environment, Policy of the Govt,

Institutional Loan, Marketing

b. Dependent Variable: Out

TABLE NO: V. 21

COEFFICIENTS(A)

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta B Std. Error

Output 1.161 234.4 1.012 0.38

Business

environment

0.098 1.234 0.001 0.54 0.23

Policy of the

Govt

0.032 1.112 0.003 0.31 0.44

Institutional

Loan

0.083 0.871 0.012 0.61 0.55

Marketing 0.091 0.773 0.022 0.91 0.71

222

a. Predictors: (Constant)Business environment, ,Policy of the Govt,

Institutional Loan, Marketing

b. Dependent Variable: Output

Y= + x1+ x2+………….. xn

Output = 1.161 + (0.001-Busi-envion) + (0.003 - Policy of Govet) +

(0.012 - Ins loan) (0.23) (0.44) (0.55) + (0.022 - marketing) (0.71)

The Multivariate Regression was applied to find whether silk products

influenced by the business environment and government polices, The Regression

result shows that the calculated F value is 1.161 which is greater than the Table No:

No: value of 1.012 at 5 % level of significance. Since the calculated value is greater

than the Table No: No: value it is inferred that the business environment, govt policy

and financial variables have strong influence in determining the output of the silk

products in the study area. Hence the hypothesis is rejected

Ho: Quality and customer care factors didn’t influence the consumer

to prefer silk products from the co-operatives silk producers in the study area.

Logistic Regression is a technique used when the dependent variable is

dichotomous (0 or 1). Unlike OLS, the methods used to estimate the parameters

involve nonlinear approaches such as maximum likelihood. The logistic

specification is based on the Cumulative Normal Distribution. One of the more

useful aspects of logistic regression is that it outputs the probability of the event

which will fall between 0 and 1 (0% to 100%). Therefore, given a set of independent

223

variables, you could predict the probability of the event occurring using

specification. For this study, it has been attempted to study factors which might

influence the consumer preference The variable whether the Quality of work or

Customer care been identified as the outcome variable (dependent variable) where it

has been coded as 1 for ‘Yes’ and 0 ‘No’.

To study the factors which are likely to the following predictor variables

were identified and used in the logistic Regression Analysis:

TABLE NO :V. 22

MODEL FITTING

Model -2 Log Likelihood (-2LL) Chi-Square df Sig.

Intercept Only 59.02

Final 171.2 11.1 300 0

Source: Computed from primary data

The values given against ‘Intercept only’ and ‘Final’ are the initial and

final estimates of the log likelihood function of the model, which explains how well

the model fits the data. "Intercept Only" describes the initial estimates of the model

that does not control for any predictor variables and simply fits an intercept to

predict the outcome variable. The term "Final" describes the final estimates of the

model which includes the selected independent variables. This has been arrived at

through an iterative process that maximizes the log likelihood estimate outcome

variable. By including the predictor variables and maximizing the log likelihood of

the dependent variable, the "Final" model should improve upon the "Intercept Only"

224

model. This can be seen in the differences in the -2 Log Likelihood values

associated with the models. The difference between the ‘intial’ and ‘Final’

estimates of the -2LL show that there has been an improvement in the model. The

goodness of fit of the –2LL value is 186.62 which was used to test the goodness of

fit of the model using chi-square test. The chi-square value is 103.13, which is

significant at least at 1% level (given as 0.001 under the column ‘Sig.’). The ‘df’ is

the degrees of freedom of the Chi-Square distribution used to test the Chi-Sqare

statistic and is defined by the number of predictors in the model.

TABLE NO: V. 23

PSEUDO R-SQUARE

Cox and Snell .552

Nagelkerke .664

McFadden .541

Source: Computed from primary data

Link function: logit.

For binary logistic regressional data including eight explanatory variables

(silk quality, colour ,quality of zari, trendy, Cordial care of sales man, more display,

lower prices, discount,) the model prediction was done seven explanatory variables.

These variables were selected for model building and further validation of model.

Across-correlation matrix was prepare dinitially to see if the variables were highly

correlated to one another. Overall prediction efficiency of the variables was assessed

based on Nagelkerke - R2 and – Log Likelihood values. Influence of individual

225

variables including categorical variables was assessed using Wald statistics. Hosmer

and Leme show goodness-of-fittest (chisquaretest) and concordance analysis

(classification Table No: No:s) were done to understand the fit of the model

(Hosmer and Leme show, 1989).Sensitivity (percentage true positive or presence

correctly predicted) and specificity (percentage true negative or absence correctly

predicted) were calculated for each cut-off point (0.1to0.9) and best cut-off point

was chosen on the basis of optimum sensitivity and specificity. The cut-off level

would allow categorization of the probability value store present either below the

cut-off point or 1ifit is above the cut-off point. Logistic regression was done using

the selected variables and appropriate cut-off level and the probability of occurrence

was estimated for each of the species using the following formula.

Probability of event (or presence) =1/(1 –EXP–z)

where, Z= a + (b1 ´ X1)+ (b2 ´ X2)+ (b3 ´ X3)+ …….. (bk X k),

a =constant, b = coefficients and X = predictor variable.

There are several Pseudo R-Squares. It reveals the logit regression does

not have an R squared calculated in OLS regression. However, the Pseudo R-square

values are similar to the R square in OLS, but are not equivalent to OLS R squares.

These pseudo R squares are only rough estimates of how well the model fits the

data. From the above Table No: No: we can see that the R square values vary

between 0.541 to 0.664, which suggest that there is a moderate level of correlation

between the dependent and independent variables used in the study. The following

Table No: No: ---gives the estimates of the predictor variables used in the study.

226

• Silk Quality

• Colour ,

• Quality of zari

• Trendy

• Cordial care of sales man

• More display

• Lower prices

• Discount

TABLE NO: V. 24

LOGISTIC REGRESSION FOR CONSUMER PREFERENCE-

PARAMETER ESTIMATES

Variables Coefficient S.E. Wald df Sig. Exp(B)

Threshold

(Customer

Prefrence)

1.9269 9.0801 0.4509 1 0.007* 0.0009

Silk Quality 0.0054 0.0054 0.8586 1 0.002* 0.9054

Colour , 0.0036 0.0027 1.1484 1 0.003* 0.8964

Quality of zari 34.38 17.964 3.2967 1 0.005 0.0153

Trendy 9.1197 8.28 1.0917 1 0.071 1.3635

Cordial care of sales

man

41.3631 27.1665 2.0862 1 0.028 0.0729

More display 2.2536 0.8721 6.012 1 0.81 0.0738

Lower prices 0.0045 0.0036 0.6786 1 0.001** 0.0504

Discount 0.0036 0.0027 1.0539 1 0.004* 0.6624

(Link function: logistic)

227

* - Significant at 5% level

** - Significant at 1% level

NS :Not Significant

The results of the regression coefficients of the predictors are given under

the heading ‘Estimate’. The predicted probability of workers engagement can be

calculated using these coefficients (the first value under this column, the coefficient

for "Threshold" is the constant term in the model). For a given household, the

predicted probability of workers engagement be calculated as F (1.92+ 0.005*

Colour+0.003* Quality of Zari-1+………+0.004 ) Where F is the cumulative

distribution function of the standard normal. However, the coefficients cannot be

interpreted as we explain in OLS regression. It is explained in OLS that an unit

increase in predictor variable value will result in the corresponding the coefficient

times value increase in the dependent variable. But it is not so in Logistic

Regression. The increase in probability of outcome variable (here going for workers

engagement) for one-unit increase in a given predictor is dependent both on the

values of the other predictors and the starting value of the given predictors. For

example, if we hold all other predictors as constant at zero except age, then the

working hour one hour increase from say from 8 to 9 had a different effect than the

one year increase from 9 to 10. However, it could be understood from the regression

coefficients that, a positive coefficient will mean that an increase in the predictor

leads to an increase in the predicted probability. A negative coefficient means that

an increase in the predictor leads to a decrease in the predicted probability. Based on

this, from the above regression Table No: No: it could be seen that the predictors

228

silk quality, Colour, Quality of Zari, Lower price, More display, trendy and have

positive effect on dependent variable. That is, increase in these predictors will result

in increase in probability of going influence the work engagement through

enhancing the customer preference. Thus, the qualitative variables have strong

influence of customer preference.

H0: Financial distress of the co-operative silk producing units have not

influenced by the process of getting loan in the study area.

TABLE NO: V.25

MODEL SUMMARY

Model R R

Square

Adjusted

R Square

Std. Error of the

Estimate

Durbin-Watson

1 .991(a) .982 .968 1083.786 2.081

a. Predictors: (Constant),High loan outstanding , High interest, Loan

default, raw material price hike, wage hike

b. Dependent Variable: Loan availability

229

TABLE NO: V. 26

ANOVA (b)

Model Sum of Squares

Df Mean Square

F Sig.

1 Regression 5805.632 270 12571.954 18.78 .000(a)

Residual 1058.895 30 2104.889

Total 6864.527 300

a. Predictors: (Constant),High loan outstanding, High interest, Loan

default, raw material price hike, wage hike

b. Dependent Variable: Loan availability

TABLE NO: V. 27

COEFFICIENTS(C)

Unstandardized Coefficients

standardized Coefficients

t Sig.

B Std. Error Beta B Std. Error

Loan Availability

1.578 2475 1.008 0.073

High loan Outstanding

0.057 0.032 0.15 0.03 0.025

High interest 4.111 3.461 0.19 0.08 0.114

Loan default 1.836 0.682 0.76 0.56 0.023

Raw material price hike

3.058 4.26 0.41 0.42 0.071

Wage hike 7.707 60.02 0.31 0.81 0.26

230

Y= + x1+ x2+………….. xn

Loan= 1.578 +(0.015- high loan outstanding )+(0.19- high interest

payment)

(0.025) (0.114)

+(0.76-loan default )+(0.41- raw material hike )+

(0.23) (0.71)

(0.31- wage hike

(0.26)

The Multivariate Regression was applied to find whether the financial

distress of the co-operatives inhibits to avail the loan facility the study area, The

Regression result shows that the calculated F value is 1.578 which is greater than the

Table No: No: value of 1.008 at 1 % level of significance. Since the calculated value

is greater than the Table No: No: value it is inferred that the independent variables

have strong influence in obtaining loan in the study area. Hence the hypothesis is

rejected.

231

CHAPTER VI

MAJOR FINDINGS, SUGGESTIONS AND CONCLUSION

Tamil Nadu has been occupying an important place in the silk handloom

industry in India and has been an integral element in the economic structure of the

state from time immemorial. The decline of co-operative silk handloom society due

to the non-availability of raw materials and competition from mill-made imported

textile products were among the other important factors that brought about the

decline of the industry. The study presents contemporary nuances of the industry

with a view to identifying the factors leading to its performance. So the study made

an attempt to make analysis of co-operatives silk producers in Kumbakonam since

the place is well known for Thirupuvanam silk sraees, It also attempts to focus on

aspects of the conditions of co-operative silk producers process, constraints and

challenges. The present study also gives broad indications of the likely consequence

of different policies implemented by the successive Governments. The findings of

this study have considerable relevance to run the industry on modern techniques at

all levels and improve the conditions of the handloom industries.

232

MAJOR FINDINGS OF THE STUDY

The findings of the study have been categorized into various segments viz

business profile, Overall performance of the co-operative silk producers,

disaggregated analysis of financial and sales of all the co-operative silk producers,

socio-economic conditions of the weavers of co-operative silk societies in the study

area.

OVERALL PERFORMANCE OF THE CO-OPERATIVES SILK

PRODUCERS IN KUMBAKONAM TALUK

No looms in silk producing

Around 39.8 percent of the looms owned and 60.2 percent were hired, it

could be inferred from the empirical verification that the no of looms hired was high

in co-operative silk producers.

Membership level of Silk co-operatives

During 2006 the average membership level were 1345 which has been

steadily declining gradually and in 2013 it was 812 with the decline of around 40

percent which implies that the membership position have been declined sharply, lack

of competence and the performance of silk weaving could be one of the important

criterion for the decline of membership but in the same line growth of private

players could be the important reasons for the membership deterioration in the study

period.

233

Average Cost of Production for piece

Around 55.6 percent of the respondents spent minimum of Rs.1600 and

58.9 percent of spent maximum 45000 per piece, around 11.3 percent of the

respondents spent minimum of Rs.400 and 35.3 percent of spent maximum 27000

per piece, with regards to Chemicals around 9.7 percent of the respondents spent

minimum of Rs.350 and 2.2 percent of spent maximum 2100 per piece, with regards

to Wages around 20.8 percent of the respondents spent minimum of Rs.750 and

2.7 percent of spent maximum 2100 per piece, with respect to other expenses

around 2.8 percent of the respondents spent minimum of Rs.600 and 0.8 percent of

spent maximum 600 per piece, with regard to total cost of production the co-

operatives spent minimum Rs.3600 and maximum Rs.76400.

Source for capital

Nearly 14.3 percent of silk producers put their deposit from members for

working capital in 2006 and same revealed for the year 2012 for the same category,

14.3 percent of the of the co-operatives silk producers borrowed reserve fund loan

from District central co-operative bank for the year 2006 and the same amount of

person borrowed for 2012 as well, 14.3 percent obtained trade credit from handloom

development corporation in 2006 whereas in 2012 they didn’t got the fund from the

said organization, 57.1 percent revealed that they utilized all the above sources for

their working capital and 71.4 percent for 2012

Average Profit margin silk producers acquire the margin of 10% for the

saree worth of Rs.3000, with respect to the worth between Rs 3001 to Rs 6000

234

private producers obtained the profit margin of 12% with respect to the saree worth

between Rs.6001 to Rs. 10,000 the silk producers obtained the profit margin of 15%

with regard to the worth between Rs.10001- Rs. 15000 the silk producers gained

20%, silk producers got 20% profit margin for the worth of the saree between

Rs.15000-Rs 20000, and with regard to the worth of the saree more than Rs.20000

the producers obtained the profit margin of 25%,

Value of sales

14.3 percent sold in the up to 10 lakhs and in 2012 around 42.9 percent

sold the products in the same category, during the year 2006 around 14.3 percent of

the silk producers sold between 10lakhs to 20lakhs whereas in 2012 around 14.3

percent were sold in same category with no variation, during the year 2006 around

42.9 percent of the silk producers sold between 21lakhs to 30lakhs whereas in 2012

around 28.6 percent were sold in same category with slight decline in the category,

during the year 2006 around 14.3 percent of the producers sold between 31lakhs to

40lakhs whereas in 2012 around 14.3 percent were sold in same category without

any changes, during the year 2006 silk producers sold more than 40 lakhs whereas

in 2012 none of them fall in this category

Profit pattern

None of the co-operative obtained gross profit were fall in category up to

2lakhs in 2006 which increased to 71.4 percent in 2012,with respect to net profit

28.6 percent fall in this category in 2006 which is increased to 85.7 percent in 2012,

around 14.3 percent of the gross profit and 42.9 percent of net profit of silk

235

producers were fall in category between 2lakhs to 3 lakhs in 2006 which decline

to 14.3 and 14.3 percent respectively in 2012, 42.9 percent of the gross profit and

14.3 percent of net profit of silk producers were fall in category between 3lakhs to

6 lakhs in 2006 which was declined to 14.3 and increased to 14.3 percent

respectively in 2012, around 28.6 percent of the gross profit and none net profit of

14.3 silk producers were fall in category between 6lakhs to 10 lakhs in 2006

which was deceased none for both gross and net profit in 2012.

Operational Expenditure

During the year 2006 around none of the silk producers spent up to

15k and 2012 remains the same status, during the year 2006 around 14.3 percent

of the producers spent between 15k to 25k whereas in 2012 nearly 14.3 percent

were spent in same category, during the year 2006 around 71.4 percent of the

producers spent between 15k to 25k whereas in 2012 nearly none spent in same

category, during the year 2006 around 14.3 percent of the producers spent

between 25k to 40k whereas in 2012 nearly 57.1 percent were spent in same

category, during the year 2006 none of the producers spent between 40k to 50k

whereas in 2012 nearly 28.6 percent were spent in same category.

Expenditure incurred for marketing

During the year 2006 around 14.3 percent of the silk producers spent

Rs.15,000 whereas in 2012 none spent in same category, during the year 2006

around 14.3 percent of the silk producers spent between 15,000 to 25,000

whereas in 2012 nearly 14.3 percent were spent in same category, during the year

236

2006 around 42.9 percent of the silk producers spent between 25k,000 to 30

whereas in 2012 nearly 14.3 percent were spent in same category, during the year

2006 around 28.6 percent of the silk producers spent between 35,00 to 50,book

whereas in 2012 nearly 42.9 percent were spent in same category, during the year

2006 none spent more than 50k whereas in 2012 around 28.6 percent were

spent in same category.

Cruxes of Disaggregated analysis of Co-operatives silk Producers

This section of the findings exemplifies the value of the Raw materials,

sales, sources of finance, operational and marketing expenditure and the

outstanding of loans of all the co-operative silk producers taken for the study.

Thirubuvabanm co-operative silk co-operative society

Sources of Capital

Nearly 10 crores 71 lakhs and 93 thousands have risen in 2006 which is

enhanced to 18 crores 26 lakhs and 32 thousands in 2012 with the hike of 70.4

percent.

Sales

Overall value of the silk products sole were 27 crores 24lakhs and 55

thousands which is increased to 41 crores 4lakhs and 57 thousand with the hike of

50.7 during the study period.

237

Value of Raw materials

Total raw material purchase for Thirubuvanam co-operative silk producer

was around 1 crore and 30 lakhs which is increased 2 crores and 53 lakhs in 2012

with the hike of 96.3 percent

Operational Expenditure

Value of the operational expenditure was 18 crores 78 lakhs and one

thousand which is increased to 28 crores 78 lakhs and 39 thousand with the hike of

53.3 during the study period.

Marketing Expenditure

Value of the marketing expenditure was 2 crores 80 lakhs and 52

thousands which is increased to 6 crores 9 lakhs and 48 thousand with the hike of

117.3 during the study period

Outstanding of Loans

Nearly 32 lakhs and 55 thousnads owe to bank in 2006 which is declined

to 12 lakhs and 12 thousands in 2012.

Cholan co-operative silk society

Sources of Capital

75 lakhs and 96 thousands have raised in 2006 which is enhanced to 1

crore and 68 thousands in 2012 with the hike of 32.5 percent.

238

Sales

Overall value of the silk products sole were 35 crores 41 lakhs and 91

thousands which is decreased to 24 crores 41 lakhs and 57 thousand with the

decline of 31.8 during the study period.

Value of Raw materials

Raw material purchase for Cholan co-operative silk producer was around

1 crore and 85 lakhs which is increased 2 crores and 60 thousands in 2012 with the

hike of 7.9 percent

Operational Expenditure

Value of the operational expenditure was 1 crore 32 lakhs and one

thousand which is increased to 1 crore 35 lakhs and 58 thousand with the hike of

2.8 during the study period

Marketing Expenditure

Value of the marketing expenditure was 2 crores 28 lakhs and 83

thousands which is increased to 5 crores 23 lakhs and 2 thousand with the hike of

129 percent during the study period

Outstanding of Loans

Nearly 1 crores 99 lakhs and 15 thousands fund owe to depositers in 2006

and which decreased to 1 crore 84 lakhs and 66 thousands in 2012 with the decline

of 7.3 percent.

239

Dharasuram Co-operative

Sources of Capital

Overall capital 32 lakhs and 75 thousands have raised in 2006 which is

enhanced to 33 lakhs and 88 thousands in 2012 with the hike of 3.5 percent.

Sales

Value of the silk products sole were 17 lakhs and 70 thousands which is

decreased to 12 lakhs and 25 thousand with the decline of 30.8 during the study

period.

Value of Raw materials

Total raw material purchase for Dharsaram co-operative silk producer was

around 2 lakhs and 88 thousands which is increased 17 lakhs and 66 thousands in

2012 with the hike of 513.4 percent.

Operational Expenditure

Value of the operational expenditure was 1 crore 5 lakhs and 10 thousand

which is increased to 91 lakhs and 45 thousand with the decline of 12.9 percent

during the study period.

Marketing Expenditure

Value of the marketing expenditure was 83 lakhs and 78 thousands which

is increased to 1 crore 54 lakhs and 17 thousand with the hike of 84.02 percent

during the study period.

240

Outstanding of Loans

Total outstanding was 3 crores and 4 lakhs and 49 thousands which was

increased to 3 crores 48 lakhs and 43 thousands in 2012 with the increase of 14.4

percent during the study period

Thiruvalluvar Co-operative Silk Societies

Sources of Capital

Overall capital 52 lakhs and 21 thousands have raised in 2006 which is

enhanced to 56 lakhs and 54 thousands in 2012 with the hike of 8.3 percent,

Sales

Value of the silk products sole were 34 lakhs and 39 thousands which is

decreased to 1 crore 2 lakhs and 34 thousand with the increase of 197.6 during the

study period

Value of Raw materials

Total raw material purchase for Thiruvalluvar co-operative silk producer

was around 16 lakhs and 73 thousands which is increased 18 lakhs and 56 thousands

in 2012 with the hike of 10.9 percent.

Operational Expenditure

Value of the operational expenditure was 25 lakhs and 8 thousand which

is increased to 56 lakhs and 55 thousand with the escalation of 125.5 percent

during the study period.

241

Marketing Expenditure

Value of the marketing expenditure was 1 crore 72 lakhs and 59

thousands which is increased to 4 crore 35 lakhs and 16 thousand with the hike of

152.1 percent during the study period.

Outstanding of Loans

Total outstanding was 1 crore and 55 lakhs and 34 thousands which was

increased to 2 crores 93 lakhs and 30 thousands in 2012 with the increase of 88.8

percent during the study period.

Kalaivanar co-operative silk society

Sources of Capital

Overall capital 8 lakhs and 8 thousands have raised in 2006 which is

declined to 7 lakhs and 40 thousands in 2012 with the decline of 8.3 percent.

Sales

Overall value of the silk products sole were 6 lakhs and 40 thousands

which is decreased to 6 lakhs and 38 thousand with the decrease of 0.2 during the

study period

Value of Raw materials

Outset total raw material purchase for Kalaivanar co-operative silk

producer was around 24 thousands which is increased 2 lakhs and 68 thousands in

2012 with the hike of 997.2 percent.

242

Operational Expenditure

Value of the operational expenditure was 9 lakhs and 11 thousand which

is decreased to 8 lakhs and 30 thousand with the decrease of 8.9 percent during

the study perio

Marketing Expenditure

Overall value of the marketing expenditure was 2 lakhs and 34 thousands

which is increased to 4 lakhs and 9 thousand with the hike of 75.1 percent during

the study period.

Outstanding of Loans

Total outstanding was 75 lakhs and 71 thousands which was increased to

85 lakhs and 2 thousands in 2012 with the increase of 12.3 percent during the study

period.

Super silk co-operative society

Sources of Capital

Overall capital 2 lakhs and 94 thousands in 2006 as well as in 2012 share

of the government and depositors fund have neither increased nor decreased during

the study period.

243

Sales

Overall value of the silk products sole were 7 lakhs and 43 thousands

which is increased to 10 lakhs and 76 thousand with the increase of 44.8 during the

study period.

Value of Raw materials

Total raw material purchase for Super co-operative silk producer was

around 1 lakh and 66 thousand which is increased 1lakh and 76 thousands in 2012

with the hike of 5.8 percent.

Marketing Expenditure

Value of the marketing expenditure was 2 lakhs and 6 thousands which is

increased to 3 lakhs and 67 thousand with the hike of 78 percent during the study

period.

Outstanding of Loans

Total outstanding was 45 lakhs and 16 thousands which was increased to

64 lakhs and 45 thousands in 2012 with the increase of 42.7 percent during the study

period.

Kamarajar co-operative silk society

Sources of Capital

To overall capital 3 lakhs and 25 thousands in 2006 as well as in 2012

share of the government and depositors fund have neither increased nor decreased

during the study period.

244

Value of Raw materials

Outset total raw material purchase for Kamarajar co-operative silk

producer was around 31 thousand which is increased 1lakh and 34 thousands in

2012 with the hike of 326.1 percent.

Sales

Overall value of the silk products sole was 6 lakhs and 68 thousands

which is increased to 9 lakhs and 98 thousand with the increase of 49.3 during the

study period.

Marketing Expenditure

Overall value of the marketing expenditure was 1lakh and 25 thousands

which is increased to 2 lakhs and 24 thousand with the hike of 79.6 percent during

the study period.

Operational Expenditure

Overall value of the operational expenditure was 25 lakhs and 59

thousand which is increased to 28 lakhs and 53 thousand with the increase of 11.5

percent during the study period.

Outstanding of Loans

Total outstanding was 23 lakhs and 50 thousands which was increased to

60 lakhs and 75 thousands in 2012 with the increase of 158.5 percent during the

study period.

245

Socio-economic conditions of Weavers

Gender wise distribution of the Respondents

In the study 69.7 percent of the respondents constitutes male and 30.3

percent of the respondents were female.

Age wise distribution of the Respondents

Nearly 11.3 percent of the respondents were the age group up to 30;

nearly 16.3 percent of them were in the age group between 31-40 years. 34 percent

of them were in the age group of 41-50 years, 25.3 percent of them were in the age

group of 51-60 years and 13 percent were lies in above 60 years category.

Educational status of the Respondents

Nearly 56 percent of the respondents were got the education up to primary

level, 32 percent of the respondents have completed high school education, 5.5

percent and 3 percent of the respondents have studied HSc and degree

respectively,3.5 got the diploma in various disciplines with regard to the education

pattern of the of the respondents it was observed that significantly major chunk of

the respondents has got education up to S.S.L.C around 86 percent of the

respondents were constitutes under this category.

Income Pattern of House holds

Around 50.3 percent of the respondents annual income is less than

60,000, nearly 41 percent of the respondents income range from 60001 to 90,000, 6

246

percent of the respondents income constitutes from 90,001 to 1,20,000, and 3

percent of the respondents annual income is above 120000 , nearly 91 % of the

respondents annual income were below 90,000 which implies that the women

weavers were get less income which had repercussions on poverty and purchasing

power of the weavers in the study area.

Household Expenditure

Nearly 70.3 percent of the respondents were spend on procurement of

food and non-food items up to 10000, 8.3 percent of the respondents spends between

10001-20000, 10.3 percent of the respondents spends from the slab between 20001-

30000, 3 percent of the respondents spend between 30001-40000, 2 percent of the of

the respondents spends from 40001-50000, 2 percent of the of the respondents

spends from 50001-60000, and 3 percent of the respondents spends 60,000 and

above per annum.

No of years of experience

Around 13.3 percent of the respondents had experience for last five years,

26.3 percent got experience between 6 yrs to 10 yrs, 34 percent run the company

between 11yrs to 15 yrs, 13.7 percent got the between 16 yrs to 20 yrs, 12.7 percent

of the respondents had experience for more than 20 years, majority of the

respondents have got experience more than 15years, around 60 percent of the

respondents falls in the category.

247

Opinion on employment and Wage

Around 90.4 percent of the respondents have told that they haven’t got the

adequate employment to meet their minimum subsistence level, only 9.6 workers

have told that they use to get adequate employment, it could be quite strange from

the above table but people have told that the employment given to them is not

adequately support them to lead the minimum standard of living, with regard to

income the income level generated through the work, 88.1 percent of the

respondents have told that they don’t get the adequate income out of the weaving

work, they are all very concern about the increasing prices for the essential

commodities and also felt regret that their income is not increase to that level to

meet the expenditure, 11.9 percent of the respondents have told that they got the

adequate income from the work.

Influence of work environment on disease

Around 69.3 percent of the respondents opined that the work environment

caused headache,30.7 percent of the respondents opined no for the same,62.3

percent of the respondents opined that the work environment caused anxiety

disorder,37.7 percent of the respondents revealed it didn’t caused, 66 percent of the

respondents opined that the work environment caused injuries, 34 percent of the

respondents opined no for the same,66.7 percent of the respondents opined that the

work environment caused skin rashes,33.3 percent of the respondents didn’t accept

the statement,61.7 percent of the respondents opined that the work environment

caused ulcers,38.3 percent of the respondents opined no for the same,70 percent of

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the respondents opined that the work environment caused dust allergy problems,30

percent revealed no for the assertion.

Reasons for failure of funds management of co-operatives

With regard to deliberate diversion of funds 29.7 percent of the

respondents strongly agree the statement, 32.7 percent agreed, with regard to Poor

collections of funds 34 percent of the respondents strongly agree the statement,

39.7 percent agreed, with respect to Unplanned payments to creditors 30.3 percent

of the respondents strongly agree the statement, 37.3 percent agreed, with respect to

High Inventory 30 percent didn’t agreed the statement and 25.3 percent strongly

disagreed the statement, with respect to Unproductive expenditure 36 percent of

the respondents strongly agree the statement, 37.7 percent agreed, with respect to

Delay in Sanction of loans 38.3 percent of the respondents strongly agree the

statement, 43.7 percent agreed, with respect to Delay in sanction of working

capital limits by bank 36.3 percent of the respondents strongly agree the statement,

46.7 percent agreed, with regard to Delay in implementation of project 32.7

percent of the respondents strongly agree the statement, 40 percent agreed.

Perceptions on weavers on the performance of Co-operatives

With respect Clear Transactions 15 percent of the respondents highly

satisfied with the transparency in transactions, 16.7 percent satisfied and 68.3

percent of the respondents were not satisfied, with respect Payment in time 17

percent of the respondents highly satisfied with the payment process, 18 percent

satisfied and 65 percent of the respondents were not satisfied, with respect to

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Cordial function 13.3 percent of the respondents highly satisfied with the cordial

functional relationship among the co-operative members and officials, 15.3 percent

satisfied and 71.3 percent of the respondents were not satisfied, with regard to

Provision of subsidies 10.7 percent of the respondents highly satisfied with the

provision of subsidies , 12.7 percent satisfied and 76.7 percent of the respondents

were not satisfied, with respect to Good Market ambience 7.7 percent of the

respondents highly satisfied with the marketing facility available in the co-operative,

9.7 percent satisfied and 82.7 percent of the respondents were not satisfied, with

respect to Loan arrangements 10.3 percent of the respondents highly satisfied with

the institutional loan facilities made available through co-operatives, 12.3 percent

satisfied and 77.4 percent of the respondents were not satisfied, in connection with

Supply of Raw materials the 9 percent were highly satisfied,11.7 percent have

satisfied and 79.3 percent of the respondents were not satisfied, and in regard to

Political Intervention in co-operative around 9 percent highly satisfied, 11.3 percent

were not satisfied and the 79 percent were not satisfied with the facilities, it could be

inferred from the empirical findings that majority of the respondents have not

satisfied with the various activities of the co-operative societies ,however, co-

operative societies use to give minimum guarantee to the weavers when compare

with the private players, thus, it was apparent from the study that the amenities were

inadequate in the study area.

Suggestions to improve silk co-operatives performance

7 percent of the weaver respondents revealed that timely delivery of raw

materials without compromising the quality, 5,3 percent institutional credit at

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cheaper interest rate need to provided for co-operative operation and launch, 4

percent opined that adoption of new innovative method reduce the cost of the

production, 3.7 percent revealed that technical education/training and research need

to be developed with more focus to SSI development, 4.3 percent for extension of

market for the product, 3.3 percent opined that periodical Organization of trade fairs

and exhibitions is essential for the development of silk co-operative, 3.7 percent

opined that there is a need to Display of products at show rooms and imports at

different trade centers and a broader level, 3 percent of the respondents opined that

Government taxation policy need to be restructured in favour of silk co-operatives

development, 65.7 percent of the respondents opined that all the above suggestions

is essential for the development of silk co-operatives

Syntheses of constraints faced by the stakeholders in Silk handloom industries

in the study area

The Problem of Wages

The most crucial problem on labour wages raised due to lesser wage rate,

the silk producers are unable to maintain substantial business but it inevitable labour

need to be acknowledged with their work, it would be suggested that fixing the wage

rate may be increased by the societies for their betterment.

The Problem Lack of Credit Facilities

The most penetrating problem that is frequently experienced by silk

producers of the place of selected study area is the lack of credit facilities it is found

out from the analysis, it’s suggested that the seven co-operative silk societies at

kumbakonam Taluk may attempt tie-up with the bankers and arrange the credit

facilities.

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Problem of Raw Material Shortage

Another important problem that is again met with the poor silk producers

is the shortage of raw-materials. It is found out that the regular employment and

production of silk handloom cloths are frequently affected with the shortage of raw-

materials such as yarn, dyes, chemicals and loom breakages. This creates actually a

very great lag to the silk producers not only in terms of discontinuing in production.

The Problem of Marketing of Handloom Products

This is very frequency expedience problem of silk producers in the study

area. This is because of the fact that the quality of the selected silk products is

always found to be relatively lower attraction in the cloth market when compared to

the rest of the cloth of Power Loom and the Mill Sector regain, it is also found out

that the marketing condition is very poor and highly in certain for the silk sarees

because of the factors such as high cost of production and low productivity which

are often hampering fair prices to the handloom products.

The Problem of Low Economic Status

A very important but serious handloom weaver problem that quite often

cited by this poor to silk producers is the low economic status which is often to these

people in the community. Even though few people are affluent but the in general the

sauratra people engaging in silk production engulfed with lot of indebtedness and

relatively lower economic status, When we talk in terms of a great social concept of

Economic Development with social principle, it is seen that the social status appears

sound but the Economic status is very poor and low in the study area. The usual yard

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stick which is followed to measure out the economic status of any people in the

community, occupation and the community, occupation and the level of income that

is generally gained by a person when we measure the silk producers with the above

mentioned yardstick, it is clearly found out that by all means the silk producers have

certainly in lower economic status.

The Problem of Stock Piling of Handloom Products

Another long felt and yet another vital handloom weaver welfare problem

is stock piling problem of handloom products. The silk producers of the study area

are very often affected by the stock piling problem for fairly a long period of time.

Only now the Government of Tamil Nadu has taken effort to rectify this grave

problem to a very great extent. Therefore, this problem very seriously affects their

regular employment opportunities and income conditions, especially in the long

period. So, silk producers may be thrown out of job opportunities, even now and

then. This will aggravate their existing high degree of poverty and misery in the

study area.

The Problem of Political Intervention

The last but one identified problem by the silk producers of the study area

especially in the co-operatives is frequent intervention of political parties in the

regular functioning of handloom industry. This is often complained by the poor silk

producers that their ordinary political and economic conditions are very often

disturbed by the Statesmen in the study area. Any social or economic advancement

is made by these political people with great caution and political advantage.

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Therefore many social and economic policies which will favour the weaving

population quite often seem to be in an uncompleted form. It is the fact to see in any

Government of „Eastern Block Countries that each and every „Economic and social

Policies of the Government are strictly based on „working the vote Banks

principle . But they do not know that this political policy very seriously affects the

real interest of poor communities and their participation in the co-operatives have

nullify the interest of the silk weavers and the industries in the study area.

Policy Suggestions

Silk industries is an age-old traditional industry beset with multi-furious

problems. The industry, thus, requires a multi-pronged approach to infuse life and

sustain its development. Industry is providing one of the most basic needs of people

and holds importance; maintaining sustained growth for improving living standards

of the weaver and customers. An attempt has been made in this section to offer a few

suggestions for improving the plight of silk industries encompassing the interest of

all the stakeholders involved in the silk production.

There is a need to increase the variety of products by focusing on

designs and modernize the dying and processing activities in the

sector to increase the share of cloth production by the sector in the

total cloth production of the country.

For protecting the silk producers from the encroachment on their

livelihood, the Government of India shall strictly implement the

Reservation Act 1985 by placing the reserved items of sector in the

IX Schedule of Indian Constitution. The Government shall innovate

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some new product ranges which are so far untouched by power

looms. The Government also shall regulate the production of hank

yarn by the spinning mills meant to be supplied to sector.

Competition from power looms and mill sectors is obviously a

major threat. This can be countered if the sector produces high

value, and distinctive products for foreign market.

The supply of yarn is another chronic problem faced by the

industry. There is a necessity to ensure adequate and smooth

supply. Further, intermediaries present in the yarn trade should be

eliminated. There is also a requirement for expansion and

strengthening of the co-operative coverage and more spinning mills

should be set up in the state to reduce heavy dependence from other

States/Centres.

According to the Hank Yarn Obligation Order, the spinning mills

have to produce 50 per cent of yarn in the form of hanks for

ensuring adequate supply to sector. This order should be strictly

implemented.

In order to ensure adequate and regular supply of yarn, the

Government, Tamil Nadu shall establish yarn depots or yarn banks

at the prominent centers of Tamil Nadu or within clusters.

Increasing the productivity of the sector is also essential to bring

down the average cost of production. Mechanisms must be

developed for reducing the cost of activities. A Working Group

may be constituted by the Government of India/Tamil Nadu with

qualified Cost Accountants to examine the cost structure of

products and make suitable recommendations.

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Weavers are using traditional type of pit looms that are designed to

produce only certain varieties of fabrics. Thus, there must be focus

on technology in favour of improved production methods. The

Government also should provide training to enable weavers to lean

to use modern looms and technology to produce quality products

and increase productivity per loom.

Weavers. Service Centres should conduct dyeing demonstration-

cum- Design Exhibitions with a view to bringing awareness among

weavers and dyers of that area on the importance of dyeing to

improve the quality of the product. These centers shall be directed

extend help to all types of weavers.

Co-operatives are facing the problem of periodical accumulation of

finished goods. The Government shall arrange for an organized and

assured marketing facility for the development of co-operatives.

For this purpose, the State Government may continue the policy of

financing Tamil Nadu Department to procure stocks from the

Primary Co-operative Societies on cash payment basis, than on

credit.

Instead of entirely depending on the apex society for marketing, the

primary co-operative societies may also adopt a multi-pronged

strategy for marketing their products through local sales,

participation in exhibitions and sales to be made through Non-

Government Organisations.

The Government shall take necessary measures to reorganize the

defunct co-operative societies. If necessary, it has to initiate

criminal proceedings against those responsible for mismanagement.

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The industry till now depended mainly on private sources or

moneylenders for its credit requirements. A beginning was made to

make available credit facility to the industry on an institutional

basis. Through the introduction of the RBI schemes for financing

the weavers. Co-operative societies. This should be pursued

vigorously.

The Government should provide financial assistance to the silk

producers by way of loans through Artisan Credit Cards at nominal

rate of interest i.e. 3 per cent and recover the loans in flexible

installments.

Insurance, Gratuity and Pension schemes must be extended to the

silk weavers also.

The Government should also devise a mechanism to meet

consumption needs and social obligations of weavers. Lest, they

should fall into a debt trap of money-lenders.

The Government has been organizing textile parks so far. These

parks are meant to serve all types of mills. Instead, the government

may establish Parks. Exclusively for sector.

The Government deserves all appreciation for designing the scheme

of supplying yarn at the Mill Gate Price. But the supply is far short

of the requirement. There are also complaints that the cost of the

yarn supplied through this scheme is much higher than the

prevailing market price.

This needs to be corrected. Further, other inputs like dyes and

chemicals also need to be covered under the scheme, since price

fluctuations are considerable for these items also.

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There is also a need for establishing more Weavers. Service Centres

country with a weaving population of 65 lakh persons, 25 WSCs is

too small a number. It would be in the fitness of things to recognize

Mandal Headquarters for establishing WSCs (one for each Mandal)

at least in those districts having high concentration of weaving

population.

Capacity Building in Sector through Training and Technology

Interventions need to be given, with an objective of increasing the

productivity and earning capacity of the weavers. All independent

weavers, weavers working for co-operative societies, SHGs, Master

Weavers, NGOs are eligible for availing benefits under this

scheme. It proved very helpful to all categories of workers.

All the more, it is evident from the study that the Central

Government only appears to be the sole initiator. Unless the State

Governments at the grassroots level take interest, it becomes

difficult to make programmes successful.

The Ministry of Textiles has initiated the development of Export

Zones (HEZ) at various clusters in India to create supply hubs for

the export market with an upgraded infrastructure and trained

weavers. This needs to gain further momentum.

From time to time, the Government of India has been formulating

various National Textile Policies. Instead of focusing on Textile

Policies, the Government of India should concentrate on the

formulation of National Policy to facilitate weavers to meet the

challenges of global environment.

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The Government should also introduce separate women welfare

schemes. For women entrepreneurs, weavers/workers, since more

women were engaged in the sector.

Scope for further studies

Socio Economic conditions of the handloom weavers could be

important area need to be probed

Government Handloom policies in the new economic policy regime

is an another vital area need introspection

Transition of clothing pattern and the silk sarees consumption could

be an another area which deserved assessment