INDEX. 1 Executive Summary i-xx. 3 Study of Handloom Sector in Bihar Context and Approach 9. 5 Infrastructure and Raw Material 16

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2 INDEX Content Page No. 1 Executive Summary i-xx 2 A macro perspective of Handloom Sector 3 3 Study of Handloom Sector in Bihar Context and Approach 9 4 Socio-Economic Status of Weavers 12 5 Infrastructure and Raw Material 16 6 Production, Marketing and Credit 22 7 Cluster Mapping 26 8 State Govt. Training Centres 31 9 Processing Plants and Co-operative Mills Proposed Business Plan for Revival of the Sector Implementation Mechanism for Proposed Business Plan Proposed Budget 53 Annexure Establishing A Model Integrated Handloom Park in Bhagalpur 56 2

3 Chapter-1 : A macro perspective of Handloom Sector 1.1 Textile Industry Textile industry meets one of the basic needs of life and has therefore been one of the first industries to develop worldwide. In India, too, industrialisation began with the textile industry and the sector continues to play a significant role in the economy with contribution of 14 % to industrial production, 16 % to export earnings and 18 % to employment in the industrial sector. The industry is providing direct employment to around 350 lakh persons and has high growth potential given its inherent strengths such as abundant raw materials, low labour cost and a thriving domestic and global market. With annual exports amounting to US$ 17 billion in and very low import intensity (1.2 %), Indian textile industry is also the single largest foreign exchange earner for the country. 1.2 Handloom Sector In this age of rapid mechanization, Handloom evokes images of a bygone era. This though, is far from true. Even as the sector has seen a gradual decline over the years, it still provides employment to about 65 lakh persons. It also contributes to our foreign exchange earnings with the sector exports amounting to around US $ 550 million. More important, the sector remains a source of livelihood for the most marginalized of our population. Also, the sector represents and preserves the legacy of our age old socioeconomic traditions and rich diversity like no other Stagnation and Decline Often romanticized, the sector is today largely a story of impoverished weavers who are fast migrating to large cities in search of alternative sources of livelihood and ending up as unskilled labour for other sectors. The sector is passing through difficult days, as it has largely failed to keep pace with the change in market conditions. Despite a slew of schemes and programmes run by various government agencies for promoting the sector, production in handloom sector has been continuously declining over the years. 3

4 Production of cloth- mill. Sq. mtr Mills Powerlooms Handlooms Hosiery While the total production of cloth has increased from 34,838 million sq mtr in to 45,378 million sq mtr in , the production of handloom sector has declined from 7,456 million sq. mtr to 5,722 million sq. mtr during this period. Thus, while the total production of cloth has increased by about 30 per cent during this period, the production of handloom sector has actually declined by about 23 per cent. The data available from the Second Handloom Census ( )- the last such survey done nationwide - also shows that the total number of handloom units in the country declined from lakhs in to lakhs in The number of looms declined from lakhs to lakhs during this period. This has resulted in the share of handlooms in the total production of cloth coming down from % in to a mere % in

5 Share in Fabric Production Hosiery 16% Mills 6% Handlooms 22% Powerlooms 56% Share in Fabric Production Hosiery 20% Mills 3% Handlooms 13% Powerlooms 64% 5

6 1.2.2 Regional Distribution The Handloom sector has great regional variations and some of the states like Assam and Manipur have rich handloom traditions and dominate the sector. WB 9% Manipur 9% Bihar 2% Others 34% Assam 46% As per the Second Handloom Census, the states of Assam (10.97 lakhs), West Bengal (2.22 lakhs) and Manipur (2.15 lakhs) together accounted for as much as 64 per cent of the handloom units. Other states with major share were Tamil Nadu (2.02 lakhs) Andhra Pradesh (1.45 lakhs) and Uttar Pradesh (1.42 lakhs). Bihar (0.52 lakhs) though accounted for merely 2 % of handloom units Schemes and Programmes The decline in the sector has happened even as the Govt. of India has been operating various schemes and programmes aimed at promotion of this sector. The Development Commissioner (Handlooms) is the apex agency for promotion of handloom sector at the national level. Major Schemes/programmes being run are as follows: Deen Dayal Hathkargha Protsahan Yojana (DDHPY) The scheme, in effect since April 2000, has a comprehensive focus and provides assistance for a range of components like margin money to avail credit, purchase of loom, dobby, jacquard, accessories; infrastructure support; design input; publicity; marketing incentive; transport subsidy and strengthening of handloom organisations. The sharing of grant portion of this Centrally Sponsored Scheme, between the central government and state governments, is in the ratio of 50:50 except in the case of North Eastern States, Jammu & Kashmir, Uttarakhand and Himachal Pradesh where the funding pattern is in the ratio of 90:10. Agencies where 100% members are from SC/ST/Minorities/Women, the funding pattern is in the ratio of 75:25. The assistance for marketing incentives under the scheme, however, is in the ratio of 50:50 between central and state government in respect of all the States. 6

7 Prior to the introduction of the DDHPY, most of the schemes were aimed at benefiting the weavers under the cooperative fold only. The DDHPY is covering weavers under both cooperative and non-cooperative fold. Handloom Export Scheme The objective of this scheme is to promote marketing efforts of the handloom agencies and individual exporters for the development of export-worthy handloom products and their publicity & marketing. The assistance is thus given in the form of organization of exhibitions and fairs, setting up of urban haats and publicity etc. Mill Gate Price Scheme In operation since , the objective of the scheme is to provide yarns to handloom weavers organizations at the mill gate price. The National Handloom Development Corporation (NHDC) is the only agency authorized to implement the scheme. NHDC has got 110 functioning Yarn Depots set up by associating State Handloom Corporations/Apex Bodies/Weavers Cooperatives/Exporters/Master Weavers, etc. from where yarn is being supplied to weavers at mill gate prices. Additional 273 yarn depots have been opened this year. Integrated Handloom Training Project Introduced in Dec. 2003, the project envisages skill up-gradation of handloom weavers/workers in Weaving Technology, Design Development, Dyeing Techniques & Managerial disciplines, to enable them to produce and market a diversified range of quality products in keeping with current trends in the domestic and international markets. Workshed -cum-housing Scheme This scheme is aimed at providing a suitable work place to the weavers to enable them to achieve better productivity. The scheme is being implemented by the respective State Handloom Development Corporations, Primary Societies or any other specialized agency set up by the concerned State Government for execution of such projects. Design Development & Training Programme (DDTP) The programme provides support for skill up-gradation of weavers through training programmes, workshops and exhibitions for development of new designs, developing linkages between various agencies etc. This is a 100 per cent Central Sector Programme, except for one component for Central assistance to State Governments for setting up of IIHTs and Workshed Centres (WSCs). 7

8 In addition, there are various Welfare Schemes for weavers like Thrift Fund Scheme, Health Package Scheme, Group Insurance Scheme and New Insurance Scheme etc. Major New Initiatives during the Tenth Plan Integrated Handloom Cluster Development Scheme The Scheme launched in Nov is a significant initiative by Govt. of India for handloom sector. Realising the significance of cluster approach, this Scheme is targeted at major interventions in major handloom sectors across the country. This is presently operational in 20 clusters across the country, viz. Chirala and Madhavaram (Andhra Pradesh), Bijoynagar (Assam), Kullu (Himachal Pradesh), Gadag (Karnataka), Trivandrum (Kerala), Chanderi/Gwalior (Madhya Pradesh), Imphal (Manipur), Sonepur and Bargarh (Orissa), Triruvannamalai, Trichy and Kurinjipadi (Tamil Nadu), Varanasi, Bijnore, Barabanki and Mubarkpur (Uttar Pradesh), Burdwan, Nadia (West Bengal) and Bhagalpur (Bihar). The Scheme provides for Rs. 2 crore for development of a cluster in an inclusive and holistic manner, and to build up its capacity to meet the challenges of the market and global competition in a sustainable and self-reliant manner. Handloom Mark Launched in June, 2006, Handloom Mark is another major initiative for the sector. The Handloom Mark is aimed at serving as a guarantee for the buyers that the product being purchased is genuinely hand woven. This is to address the increasing trend of power loom fabrics being sold as those of handlooms. This has emerged as a significant threat to the sector. The Handloom Mark helps distinguishing handloom products from power looms and mill made products. It is likely to promote sales of handloom products and improve price realization for handloom products in both domestic and international markets. Technology Upgradation Fund Scheme (TUFS) for the Handloom Sector This Scheme, instrumental in giving a boost to the textile industry since 1999, has been made operational for Handloom sector since July The Scheme provides for 25 % capital subsidy for the purchase of new machinery and equipment for pre-loom & postloom operations, up-gradation of handlooms testing & Quality Control equipments for exclusive use by the handloom production units. The capital ceiling per project is Rs lakhs and the maximum capital subsidy is Rs lakh. The eligible agencies for the assistance are both existing handloom units with a minimum of 10 handlooms housed in a common work-shed and new units which are proposed to be set up with at least 10 handlooms at one place in a common work-shed. 8

9 1.2.4 Major Support Institutions in the Sector Weavers Service Centre/Indian Institutes of Handloom Technology At present, 25 Weavers Service Centres are operational and they are primarily engaged in research and development for new technology and designs and providing training to weavers to upgrade their skill and increase productivity. The Indian Institutes of Handloom Technology (IIHTs) have been set up to provide qualified and trained manpower to the handloom Sector. IIHTs are further engaged in undertaking experimental and research programmes aimed at increasing productivity. Presently, there are four IIHTs at Varanasi, Salem, Guwahati and Jodhpur in the Central Sector and two IIHTs at Venkatagiri (AP) and Gadag (Karnataka) in the State Sector. National Handloom Development Corporation (NHDC) NHDC was set up in 1983 to act as the apex agency to assist the speedy development of the sector by coordinating activities relating to procurement and supply of inputs at reasonable prices, augmenting the marketing efforts of the state handloom agencies and initiating development activities for upgrading the technology in the handloom sector and improving their productivity. Presently, the Mill Gate Price Scheme is being implemented through the Corporation. Handloom Export Promotion Council (HEPC) HEPC was set up in 1965 as the nodal agency for export promotion efforts related to the cotton handloom textiles sector. The council provides to its members services like trade information & intelligence, business missions/buyer seller meets and participation in trade fairs abroad etc. Association of Corporations and Apex Societies of Handlooms (ACASH) This is the apex body, created in 1984, for providing a common platform to various handloom development corporations and apex weavers cooperative societies in the country and to coordinate activities of various departmental agencies in the sector. 9

10 Chapter-2 : Study of Handloom Sector in Bihar Context and Approach 2.1 Background The State of Bihar is today at the most crucial juncture. After a long hiatus, the process of development is again acquiring the requisite momentum. However, the State faces a daunting task of first catching up with rest of the country and then keeping pace with it. Considering the potential of the state economy and its existing resources, the Govt. of Bihar has decided to accord priority to sectors like food processing and handlooms. It is in this context that IL&FS has been mandated by the Department of Industries, Govt. of Bihar, for diagnostic survey and preparation of business plans for seven handloom clusters (districts) in Bihar, viz., Gaya, Bhagalpur, Madhubani, Siwan, Biharsharief, Darbhanga and Patna. These seven districts were identified by the Govt. of Bihar considering their importance in the state handloom sector as also future potential for their growth. The mandate was essentially aimed at coming out with a strategy for revival and sustainable growth of the handloom sector in the state with a focus on increased income opportunities for the weavers in the State. The assignment was started with scanning of secondary data available about the handloom sector in general and in particular about the status of the sector in the state. Also, it was realized that a proper perspective of the sector in the state would necessitate inputs from other prominent handloom clusters in the country. Thus, a visit was carried out to Chanderi cluster in MP, which is one of the most prominent clusters in the country and has also experienced UNIDO s three years project intervention. The diagnostic survey itself was carried out in two phases : qualitative and quantitative surveys. The survey, in the identified seven districts of Bihar, was aimed at identifying the constraints precluding the development of the handloom sector with a specific focus on the weavers. The survey also evaluated the efficacy of the delivery platform put in place by the Government of Bihar manifesting in varied policies and programmes to improve the living conditions of the weavers. The ultimate purpose of the survey was to come out with credible inputs and database for the formulation of a sustainable business plan to economically empower the weavers who represent the weaker sections of the society. An effort was made to get feedback from major stakeholders in the survey. The survey attempted to understand the state environment for weaving sector by looking at the socio-economic status of the weavers and matters like present production status, demand and supply gaps, appropriateness of techniques and tools used, appropriateness and relevance of designs in respect of market, present skill level and availability, 10

11 potential of the fabric produced for both domestic and export market, existing backward and forward linkages, availability of credit for weavers in the clusters and finding out the need for infrastructure requirement. 2.2 Data Collection Data was collected both through primary and secondary sources and through quantitative and qualitative methods. Primary data was collected from the weavers, the community and the stakeholders, while the secondary data was collected from published sources, through relevant websites etc. The quantitative data was mainly collected by interviewing 440 weavers and major stakeholders like traders (mahajans) and weavers cooperative societies. 2.3 Sampling and Coverage A two stage sampling technique was adopted to select the households engaged in handloom activities. First stage was the selection of the villages and at the second stage all the weavers working on the handlooms in these villages were interviewed (Table 2.3). The sample in each district was spread over a number of villages. Table 2.3 : Sample coverage under the survey District Villages and clusters visited Number of weavers Interviewed Patna Siguari and Fatua 77 Siwan Sultanpur, Lagghi, & Chowki 61 Gaya Manpur, Tikari, & Chakund 61 Biharsharif Nepura, Kadirgunj, Biswan Bigah, Lodipur & Madhavpur 61 Madhubani Madhepur, Paraul & Umari 60 Darbhanga Sirhauli, Vishambarpur & Wazirpur 60 Bhagalpur Champa Nagar,Nathnagar, Ambabag, Aligang & Puraini 60 Total 440 In addition to the above structured interviews, 4 Focus Group Discussions (FGDs) were conducted among the community of weavers and several in-depth interviews among the stakeholders. The stakeholders covered were government officials from the District Industry Centre including General Managers among others, people from the banking sector overseeing the execution of credit plan, representatives of the District Chamber of 11

12 Commerce, traders directly engaged in the production and marketing of the handloom products, office-bearers of the Primary Weavers Cooperative Societies, technical experts associated with government owned weavers training centres and processing units and people in several apex bodies of the state responsible for coordinating the production and marketing of the handloom products. 2.4 Study Tools For this study, a structured questionnaire was developed for the handloom weavers keeping in view the objectives of the study. Similarly, guides for FGDs and in-depth interviews were developed and finalized to get optimum results Field Operations Deployment of field teams In all, 12 field investigators and 3 supervisors were deployed for conducting the field study. All of them were males and had experience in conducting large-scale surveys. These field officials administered the quantitative questionnaire among the target group. The gaps and inconsistencies found in the filled - in questionnaires were rectified in the field itself. Deployment of Handloom Experts While the above survey was aimed at getting structured data from the field by a market research team, handloom experts were deployed to get specific inputs relating to the sector. In particular, handloom experts visited state government institutions, mainly training centres and processing plants, and, co-operative spinning mills to address the concerns of the state government on revival and developing a business plan for such institutions. 2.6 Data Management and Preparation of Business Plan All the completed questionnaires and information were analysed to arrive at findings keeping in view the objectives of the study. Based on information gained from the field and discussion with various stakeholders, including state government officials, a detailed business plan has been suggested with an implementation mechanism. The business plan has suggested interventions which meet the criteria of viability and sustainability. 12

13 Chapter-3 : Socio-Economic Status of Weavers 3.1 Background During the survey, information was collected from a sample of 440 weavers regarding their work profile, work duration, family dependence on the handlooms, number of family members engaged in the handloom activities, their main source of income and monthly income, ownership of handlooms, working conditions etc. Findings and observations have been analyzed and discussed briefly in this chapter Working Status All the 440 handloom weavers cited handloom weaving as part of their family vocation. It was found that other family members including women in the household were also contributing to the work. Most of the weavers are in the age-group of 18 to 45 years. 3.3 Handlooms in working condition The data shows that nearly two-thirds (63%) of the weavers have 1-2 sets of handlooms in working condition, while about one-fourth (22%) have 3-4 sets in working condition and the remaining one-sixth (15%) had more than four sets in working condition. There was no marked variation by district (Table 3.3) Table 3.3 : Total handlooms in working condition District No of Interviews 1-2 Set 3-4 Set 5-6 Set 7-8 Set 9-10 Set Patna Siwan Gaya Nalanda Madhubani Darbhanga Bhagalpur Total

14 The above data indicates that most of the weavers are still operating on a very small scale and do not have a commercially sustainable size of operation. This stresses the need of federating the weavers and bringing their operations to a viable scale as previously formed weavers co-operatives, aimed at the same purpose, have largely failed to deliver. 3.4 Workers engaged Most of the weavers were being assisted by 2-3 workers each, in the operation. Typically, there are three workers needed for two handlooms. Table 3.4 : Total number of Handloom Weavers, Handlooms and Workers Engaged District No. of Interviews No. of Handloom Units No. of workers Engaged Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total Thus, the sector not only provides sustenance to weavers but also generates employment for others. 3.5 Ownership of Looms Out of 440 weavers, only 239 (54%) were found to be owning the handlooms and the remaining 201 (46%) were provided looms by traders. District-wise analysis shows that Madhubani district has the highest concentration of weavers owning looms followed by Siwan (Table 3.5) 14

15 Table 3.5 : Weavers by Ownership of Looms District No. of Interviews Owning looms Looms provided by traders Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total This clearly suggests a low level of income amongst weavers as more than 45 % of them are not able to afford even basic looms which would cost around Rs. 5,000. This is despite the fact that there are a number of schemes both by the central govt. and state govt. for providing subsidy to weavers for purchase of handlooms Weavers by Gender Out of 440 weavers, 411 were men and 29 were women. Weaving is thus a male dominated occupation and role of women is limited. However, women in the family do play a role in providing support services to the weavers, particularly in pre-weaving and post-weaving operations. 3.7 Income Dependence It was observed that weaving is the main source of income for 62 per cent of the respondents, which highlights the economic importance of handloom sector in the area under study. The situation was similar across all the seven districts covered under the study (Table 3.7.) 15

16 Table 3.7 : Family dependence on handlooms District No. of Interviews Partially Dependent Totally Dependent Patna Siwan Gaya Nalanda Madhubani Darbhanga Bhagalpur Total Income level On an average, 27 per cent of the weavers earned monthly income ranging between Rs. 1,501/- and Rs. 2,000/-, 15 per cent of them earned between Rs. 1,001/- and Rs 1,500/-, about 14 per cent earned between Rs. 2,001/- and Rs. 3,000/- and 10 per cent weavers earned a monthly income below Rs. 1,000/-. It may be mentioned that only 34 per cent of the weavers reported an income of over Rs. 3,000/- per month. Table 3.8 : Monthly income of weavers District No. of Interviewers Rs Rs Rs Rs Rs Patna Siwan Gaya Nalanda Madhubani Darbhanga Bhagalpur Total

17 Thus, more than 50 per cent of weavers presently earn less than Rs. 2,000 per month. The major reason is that weavers are even now not fully engaged. Most of the weavers reported non-availability of work for 10 to 12 days in a month. During Monsoon and its attendant floods there is cessation of work for almost 45 to 60 days, as was found in the case of Puraini in Bhagalpur following flooding of the weaving clusters. Such a low level of earning has kept the weavers trapped in the vicious circle of poverty with little disposable income to allow them to go for modern loom accessories or better quality of raw materials. This has also acted as a barrier to skill upgradation and adoption of new designs. Most important, the low income level acts as a repellant for the younger generation which perceive handlooms as a career that is not financially rewarding. 17

18 A Success Story against Odds The downslide of handloom sector in Bihar has not deprived it of its success stories. A combination of individual entrepreneurship and state intervention has created many individuals who have demonstrated the strength and resilience of the handloom sector. One can identify many such individuals who are material for case studies. Following is an account of one such weaver from Gaya who has proved what individual enterprise can achieve in the face of heaviest of odds Tarkeshwar Nath- Revisiting Tradition Tarkeshwar Nath, aged 40, is a successful weaver from Maanpur, Gaya. Born into weaver s family of Patwatoli, Maanpur, he was inspired by his father Dhaalchand Prasad and grand-father Late Rooplal Ji to carry forward the family tradition. His grandfather was a trainee weaver in the Gaya Cotton and Jute Mill and later sought credit from a local mahajan to set up a handloom in his mud-built house. Since then the family has been depending on weaving for livelihood. Tarkeshwar Nath, after completing his education, has been engaged in weaving for around 15 years. Realising the strength of number, the basic philosophy of cluster approach, he founded a Self-Help Group (SHG) named Shrijan in The SHG consists of 10 local weavers who have all come together to realise the gains of unity. He was inspired and guided in this by local SBI officials. This SHG moved from strength to strength and was able to have a corpus of Rs. 12 lakhs from 10 of its members and SBI then sanctioned a loan of Rs. 36 lakhs to Shrijan. All the members of Shrijan are now managing their business through this SHG. The members have around 40 handlooms and 20 power looms and the SHG is taking advantage of Mill Gate Price Scheme for providing yarn to its members as also taking care of marketing. During FY ending March 07, Shrijan had a turnover of around Rs. 40 lacs, of which around 35 lakhs came from handlooms. In addition to the handlooms owned by members, SHG has been able to provide job work to other weavers in the region. Tarkeshwar Nath has been managing the marketing efforts of Shrijan and has been able to have good marketing linkages for products like Tauliya and Gamcha in Jharkhand and West Bengal. However, he understands that low value items, which the local weavers are producing, may not be able to sustain them and bring them prosperity. Thus, he, along with some of members of Shrijan, has decided to visit other prominent handloom clusters in the country and thinking of setting up a Handloom park in Gaya which would concentrate on high value items. 18

19 Chapter-4 : Infrastructure and Raw Material 4.1 Background During the field work, data was collected about the investment in handlooms, skill upgradation status, quality and availability of raw materials, processing facilities etc. The findings and observations made in the field have been presented in the tables and discussed briefly in this chapter. 4.2 Capital cost Handloom sector by it nature is not a capital intensive business. Most of the basic looms cost around Rs Additional accessories like dobby and jacquard may cost further Rs Thirty seven per cent of the respondents incurred an expenditure ranging between Rs. 7001/- and Rs. 10,000/-, 20 per cent spent an amount between Rs. 5001/- and Rs. 7000/-, about 22 per cent spent between Rs. 3001/- and Rs. 5000/- and the remaining 18 per cent of the weavers spent an amount ranging between Rs. 1000/- and Rs. 3000/- on handlooms. District-wise data did not show any marked variation. The variations depended on factors such as the number of handlooms, type of handlooms, self-fabrication or purchase etc. The table below suggests that the sector remains a low investment business and most of the weavers are not in a position to make investment in accessories needed for value addition. Table 4.2: Expenditure incurred on handloom installation Distt. No. of Interviews Rs Rs Rs Rs Above Patna Siwan Gaya Nalanda Madhubani Darbhanga Bhagalpur Total

20 4.3 Raw Materials Procurement Majority of the weavers (69%) were procuring raw material from local traders. In most of the cases, weavers do job work for the traders and thus raw material is supplied by local traders to weavers and weavers get paid for job work.. (Table 4.3.1) Table : Source for Procurement of Raw Material (Percentage) District No. of Interviews Provided by traders Procured on their own Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total This would clearly suggest that most of the weavers are dependent on local traders for raw materials. Thus, the weavers are confined to doing job work and do not realise their true share in product value. Weavers in the state have also not been able to take advantage of schemes like Mill Gate Price Scheme or provision of raw material depots. All this has adverse impacts on income levels of the weavers Quality Nearly 57 per cent of the weavers reported raw material quality to be average, about 25 per cent reported this to be of poor quality and only 17 per cent reported raw material to be of good or excellent quality. 20

21 Table : Quality of Raw Material Procured by the Weavers (Per centage) Distt. No. of Interviews Poor Average Good Excellent Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total Availability Around 43 per cent of the weavers, procuring raw materials on their own, reported no problems in getting raw material, while the remaining 57 per cent cited problems in procuring the raw materials. Table : Availability of raw-material (Per centage) District No. of Interviews Easily Available Not Easily Available Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total

22 4.3.4 Type and Volume Silk is being used as raw material only in Bhagalpur and Gaya out of seven districts in which survey was conducted. In Bhagalpur, 73 per cent of the weavers used silk as raw material, while in Gaya only 3 per cent of the weavers purchased silk. The weavers in the remaining districts were purchasing only cotton. On an average, 27 per cent of the weavers purchased less than 50 kg. of material at a time. 58 per cent of them purchased between 51and 100 kg., 11 per cent purchased a quantity ranging between 101 and 150 kg and 4 per cent 151 kg and above quantity at a time. None of the weavers purchased 151 kg or more material in Gaya, while maximum weavers in Patna and Darbhanga (6-7%) purchased kg of material at a time. (Table 4.3.4) Table : Volume of Raw-Material Purchased At a Time District No. of Interviews Cotton Silk 1-50 Kg Kg Kg. 151 Kg. + Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total

23 4.3.5 Periodicity of purchase Nearly 17 per cent of the weavers were purchasing their raw material on a fortnightly basis, 24 per cent on a monthly basis, and majority of nearly 60 per cent were buying raw materials for over a month, together. Table 4.3.5: Periodicity of Raw-Material Purchase (of those working for self) (Per centage) Distt. No. of Interviews Working for self* Fortnightly Monthly Over a Month Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total An analysis of the above tables on raw material shows in addition to dependency of the weavers on local traders for their raw material supply, average volume of purchase of raw materials is also low and quality of raw materials for most of the weavers is low which would result in low value realization. Thus, there needs to be interventions in the sector aimed at facilitating easy access of weavers to yarns and dyeing materials of good quality at reasonable prices. 4.4 Skill Upgradation Among the sample weavers, only one-third of the weavers had gone through a process of upgrading their skills, while majority admitted to not going through any skill upgradation programme. District-wise variation shows that minimum skill upgradation was reported among weavers of Darbhanga district (25%) and maximum among weavers of Bhagalpur district (33%) closely followed by Patna (district 32%). Further, only % of weavers talked about upgrading their skills in tune with the trade. 23

24 Table 4.4 : Upgradation of Skills of Handloom weavers District No of Interviews Upgraded Not upgraded (Per centage) Training as per market trend Patna Siwan Gaya Nalanda Madhubani Darbhanga Bhagalpur Total 440 All those who upgraded the skills had done it through state agencies. However, an environment of ignorance with regard to government schemes and programmes for the betterment of their lot pervaded the clusters. In spite of various state govt. training institutions for the weavers, most of weavers have not been able to take advantage of them. It was clear that state govt. institutions, supposed to work for the purpose, have been mostly at disconnect with the status of the sector and weavers. However, this has also happened largely because of a severe lack of resources with state govt. organizations, both in terms of physical and financial resources. Any effort at revival of the sector in the state would therefore have to necessarily involve complete revamping of such state government institutions. 4.5 In-House Dyeing and Finishing Facilities Out of the total of 440 weavers, 33 to 39 per cent had in-house facilities for dyeing the products, in various districts. Similarly, between 38 and 43 per cent had in-house facilities for finishing the products. In all, 34 per cent of the weavers had in-house dyeing facilities and 40 per cent had in-house facilities for finishing the products. 24

25 Table 4.5 : In-House Facilities District No. of Interviews Dyeing Facility Available In-House (Per centage) Finishing Facility Available In-House Available Not Available Available Not Available Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total However, the present in-house facilities for dyeing and finishing are very primitive and not suitable for high value products. This has been cited as a major constraint by most of the weavers in catering to high-end consumers. Most of the weavers thus realise the significance of post-weaving operations in getting right market price and have shown their eagerness for interventions to address this issue. 25

26 Chapter-5 : Production, Marketing and Credit 5.1 Background During the fieldwork, data was also collected relating to the production techniques, application of designs, items produced, availability of market for selling the produce etc. The findings and observations made in the field have been presented in the tables and discussed briefly in this chapter. 5.2 Production Technology Among the 440 weavers, 93 per cent were still operating on pit looms and only 7 per cent were working on frame looms. District-wise variation shows that only in districts of Gaya and Bhagalpur, more than 10 % of weavers were using frame looms. Table 5.2 : Handloom weavers by use of production technology Dist. No. of Intervie ws Pitloom Frame loom Pitloom (Per centage) Frame loom 1. Jacquard 2. Dobby 3. Normal 4. Jacquard 5. Dobby 6. Normal Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total

27 Around 45 per cent of the looms did not have basic jacquard as an attachment and only 29 per cent of looms had dobby attachment. This clearly has an adverse impact on the productivity of looms. While the weavers feel the need for upgradation of their pit looms to frame looms or with other technical attachments to enhance productivity, financial resources remain a constraint. 5.3 Design In majority of cases (87 %), the designs were provided by the traders, while about onetenth (9%) of them claimed to have developed designs on their own. Others (4%) were following traditional designs (Table 5.3). Table 5.3 : Handloom Weavers By Application of Designs (Per centage) District No. of Interviews Provided by Traders / Buyers Self Innovation Traditional Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total Design, the unique selling point of handloom products, remains an ignored area in the state. Barring some sporadic attempts by the traders, based on feedback from the major buyers, there is no organised effort in the state to help weavers adapt to new designs. Any revival effort for the sector has to have a major focus on this matter. 27

28 5.4 Items Produced The weavers produce various handloom articles. The major products are saris, bed sheets, towels, curtains, stoles, plain fabrics and items such as gamcha, dusters etc. Various items produced by different households are given below (Table 5.4) Table 5.4 : Different Items Produced Per Year Per Household (Pieces) District No. of Interviews Towel Stole Sari Curtain Bed- Sheet Fabric (Mtr.) Others (Gamcha, Duster etc.) Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total While Siwan and Patna are producing mainly saris and yardage, Bhagalpur has the largest range of items. The handloom clusters in the state are thus mainly engaged in traditional items like towels, bed sheets, saris and plain fabric. There is no effort to reorient production to modern dress materials and such other value added items which have a lion s share in today s handloom market. A business plan would therefore have to look at this aspect closely. 28

29 5.5 Availability of Market A vast majority of weavers (68%) during the survey reported selling their products in local markets. Around 18 per cent were selling to govt. institutions and only 14 per cent were selling in the regional markets. Table 5.5 : Availability of market for selling the produce (Per centage) District No. of Interviews Institutional Market Regional Market Local Market Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total The problem of market linkage thus remains acute. Selling in local markets, essentially to traders, brings little value to weavers. However, absence of new and innovative designs and inadequate processing facilities come in the way of market linkages. Lack of efforts in brand creation has been a major bane of the sector in the state. Thus, a business plan needs to have major focus on brand creation and market linkages. 5.6 Availability of Credit A large percentage of the weavers reported non-availability of credit. The most important source of credit reported was money lenders (34%), followed by family/relative/friends (25%) and banks (19%). District-wise variation shows more utilization of credit from the banks by weavers of Darbhanga (25%), followed by Siwan (21%) compared to their counterparts in other districts. 29

30 Table 5.6 Availability of credit Distt. No. of Interviews Credit from Banks Credit from Money Lenders Credit from Family/ Relatives/ Friends (Per centage) Credit not Available Patna Siwan Gaya Biharsharif Madhubani Darbhanga Bhagalpur Total The above data clearly shows the failure of public sector banks in catering to this sector even while there are so many schemes and programmes, launched from time to time, to address credit needs of the poor, including weavers. It has been observed that the banking institutions normally shy away from lending to this sector. District Credit Plans of the seven districts reveal little credit flow to the weavers. Outlay of funds to SSI & NFS sector is abysmally low and hence availability of credit emerges as one of the major challenges towards growth of handloom sector in Bihar. Out of total priority sector advances, SSI and NFS advances vary from 4 to 15 per cent across the districts.. Majority of the weavers were ignorant of the existence of any special credit programme for them by the banks. Though, almost all the districts have branches of most of the leading nationalized banks, there seemed to be an indifference to the handloom sector. One probable reason could be the bad track record of the weavers in terms of debt servicing and periodical loan waivers being granted to the sector by government. However, the weavers have to be provided adequate access to credit facilities for making a turn around of this sector. 30

31 Chapter-6 : Cluster Mapping This chapter gives district-wise information on major production clusters, raw material being used, major products, estimated no. of weavers and handlooms and turnover etc. 6.1 Biharsharief The number of handloom weavers in the district of Biharsharif is just around 225. A large number of weavers have moved to other livelihood opportunities. The number of handlooms in the district is estimated to be around 200. A much larger number of handlooms has become junk over years. Major Clusters: The major handloom clusters in the district of Biharsharif are Nepura, Alinagar, Baswanbigah, Lodipur, Amber and Imaadpur. Major Products: The major handloom products of Biharsharif are Cotton Bed sheets and Silk fabric. Raw Material: The raw materials used by the weavers are cotton and silk yarn. There is no common facility centre like raw material depot in the district which would enable the weavers to procure the raw materials at reasonable rates. This remains a problem area for them.. State Institutions/Weavers Societies : Weavers Training Centre, Jhinganagar, is catering to training needs of weavers of the district. In addition, a Central Processing Plant is located in Biharsharief which is though closed for around a decade. Out of 36, only around six PWCSs are functional in the district. Suggestions of the Stakeholders: The stakeholders in Biharsharif suggested that regulations in regard to the products which are to be produced by the handloom sector should be enforced seriously. Arrangements for a raw material depot, upgradation of existing training facilities, credit and market linkages were other demands raised by the weavers. 6.2 Bhagalpur The number of weavers in the district is approximately 15,000. Total number of handlooms in the district is approximately 12,000. Major Clusters: Major clusters in the district are Nathnagar, Champa Nagar, Aliganj, Puraini, Dariapur, Shekpura, and Mirzafari. 31

32 Major Products: The weavers in the handloom clusters of Bhagalpur show great versatility in production. These clusters produce silk-based yardage (Tasar, Muga, Katia, Eri, Gicha, and Mulberry), bed-sheets, scarves, stoles, furnishing material and dress material. Raw-Material: The raw material used in these clusters are silk-yarn, cotton-viscose, which is not easily available. The raw material depot closed down more than 15 years ago and weavers are dependent on local shops for their supplies. State Institutions/Weavers Societies : Being the most prominent textile cluster of the state, many central government and state government institutions are located in the district. Polyster & Silk Vastra Training cum Production Centre, Barari, Bhagalpur, Weavers Training Centre, Puraini, Bhagalpur are major institutions for handloom sector. Central Silk Board office is also located in the district. There is also a co-operative spinning mill in the district which is not presently operational. The number of PWCSs in the district is around 110 but most of them are defunct. Suggestions of Stakeholders: Availability of silk yarn and lack of processing facilities for value addition were cited as major concerns by stakeholders. Inadequate marketing linkages were another concern. It was pointed out by weavers and entrepreneurs that handlooms are facing a steep decline and losing market share to the powerloom sector. The weavers highlighted the need for a cocoon yarn depot and arrangements for regular buyer and seller meets. The need for a design development centre also came out clearly during discussions. 6.3 Darbhanga The number of weavers in the district of Darbhanga is estimated at around 575. The number of handlooms in the district would be around 500. Major Clusters: Major weaving clusters in the district are Sirhauli, Vishambharpur, Tahtaar, Madhpur and Wazidpur. Major Products: Major products of the district are towels and bed sheets. Raw Materials : The raw material used by the weavers in Darbhanga is raw cotton which is supplied by State Khadi Board. The supply though is uncertain and therefore weavers have to often depend on the local market. State Institutions/Weavers Societies : There is no training centre in the district of Darbhanga. There are 75 PWCS in Darbhanga but none of them is functional. There is a Dying & Finishing Plant located in the district which has been closed for more than a decade. 32

33 Suggestions of the Stakeholders: The revival of khadi outlets along with the processing plant was a major concern in the district. Lack of capital was also cited as a growth obstacle. 6.4 Gaya Total number of weavers in the district of Gaya is estimated to be around 675. Total number of handlooms in the district would be in the neighborhood of 500. Major Clusters: Major handloom clusters in the district of Gaya are Maanpur, Chakund, Karmoni, Barachitti and Tikari. Major Products: The major products of the handloom clusters in the district of Gaya are towels, bed sheets, silk fabric, saris and blankets. Raw Material: The raw material used in the handloom-weaving clusters of Gaya is cotton yarn, silk yarn and threads. Despite the existence of two yarn depots in the district, sourcing of raw materials in the district remains problematic. The capacity and management of yarn depots remain problems. State Institutions/Weavers Societies: There is a Weavers Training Centre in Chakand, Gaya. Silk Service Centre, Maanpur is another institution to provide training to the weavers. There are around 61 Primary Weavers Co-operative Society (PWCSs) in the district of Gaya..Most of such societies are though not really active and are starved of funds. Twenty societies have already been liquidated. Suggestions of the Stakeholders: The need to have better training facilities was highlighted by the weavers. This would help in value addition, efficiency and enhanced production. Availability of raw materials like natural yarns and natural colors at reasonable rates was also a felt need of the cluster. Problems relating to credit and market were further cited as issues to be addressed. 6.5 Madhubani The number of weavers in the district is around 500. The number of handlooms in the district would be around 400. Major Clusters: Major handloom clusters in Madhubani district are Madhepur, Mauwara, Rahika, Pandaul, Navtauliya and Amri. Major Products: Major handloom products are Thaan (cloth), Dhoti, Towels and Dasuti (rug). 33

34 Raw Material: The raw material used in the handloom sector of Madhubani is cotton yarn. The weavers in the district are dependent on the local market yarn. There is a Yarn Centre in the village of Hari Nagar wherein some weavers have formed a group to avail of NHDC s mill gate supply scheme. State Institutions/Weavers Societies : There is no weaver training centre in Madhubani. There are no PWCSs in the district of Madhubani. The co-operative spinning mill in the district remains closed. Suggestions of the Stakeholders: The stakeholders concern centreed on nonavailability of credit and market. Revival of co-operative mill was another major concern. 6.6 Patna The number of weavers in the district is around 850. The number of handlooms in the district is around 700. Major Clusters: Major handloom clusters in the district are Sigauri and Fatua. Handloom clusters such as Masaudhi, Punpun, Bahadurganj, Makdunchak and Navinagar have ceased to exist. Major Products: Major products in Sigauri are bed sheets and furnishing items. Fatua produces Dastars and bandages. Raw Material: The raw material used in the handloom clusters of Patna are mainly cotton yarn. There is no raw material depot for the weavers. State Institutions/Weavers Societies : Bihar State Training Institute in Rajendranagar is the only institution imparting training to the weavers in the district. There are 89 PWCSs in the district, out of which only 25 are functional. Bu even the functional societies remain largely on paper. Suggestions of the Stakeholders : The discussion with stakeholders brought out usual issues relating to availability of credit, market linkage, training facilities etc. 6.7 Siwan Total strength of weavers in Siwan is estimated around Total number of handlooms in the district is around 1,550. Major Clusters: Major clusters in the district are Sultanpur, Lagghi Chowki, and Ghanauti. Major Products: The major handloom products of district are bed sheet, towel, waist-leg wrap (lungi), and shirting. 34

35 Raw Material: The raw material used in the weaving clusters of Siwan is cotton and polyester. There is no common facility centre like raw material depot for sourcing of the raw material. State Institutions/Weavers Societies: There is no training centre in the district, either belonging to state government or central government, to impart training to the weavers. There is a co-operative spinning mill in the district which lies closed. The number of PWCSs in the district is 35, most of which remain inactive. Suggestions of Stakeholders: Most of the suggestions centered around improvement in credit and marketing facilities along with revival of the co-operative spinning mill. A Summary of seven handloom clusters (Districts) : Districts Estimated no. of weavers Estimated no. of Handlooms Major products Estimated Turnover (Rs. in Lakh) Biharsharief Cotton Bed sheets and Silk fabric. Bhagalpur 15,000 12,000 Silk-based cloth-length (Tasar, Muga, Katia, Eri, Gicha, and Mulberry), bedsheets, scarves, stoles, furnishing material and dress material 90 35,000 Darbhanga Towels and bed sheets 250 Gaya Towels, bed sheets, silk fabric, saris and blankets Madhubani Thaan (cloth), Dhoti, Towels and Dasuti (rug). Patna Bed sheet and furnishing items, Dastars and bandages. Siwan 1,850 1,550 Bed sheet, towel, waist-leg wrap (lungi), and shirting Total 19,675 15,850 46,959 35

36 Chapter-7 : State Govt. Training Centres There are eight state government institutions for training and capacity building of handloom weavers in the state these are: 1) Weavers Training Centre, Chakand, Gaya 2) Weavers Training Centre, Amarpur, Banka 3) Weavers Training Centre, Obra, Aurangabad 4) Central Design Centre, Rajendra Nagar, Patna 5) Polyster & Silk Vastra Training cum Production Centre, Barari, Bhagalpur 6) Weavers Training Centre, Kako, Jahanabad 7) Weavers Training Centre, Puraini, Bhagalpur 8) Weavers Training Centre, Jhinganagar, Nalanda In addition, there is Bihar Institute of Silk & Textiles, which provides long term training in silk and textile technology. A brief profile of five of weaves training centre located in the identified clusters along with Bihar Institute of Silk & Textiles is given below. 7.1 Polyester & Silk Cotton Training Cum Production Centre, Barari, Bhagalpur 36

37 Polyester & silk cotton Training Cum Production Centre was established around 30 years back in Berari to impart training to handloom weavers. Every year 24 candidates in the age group of are trained for a period of 6 months. A stipend of Rs. 300 per month is paid to the candidates after successful completion of the course. The centre lacks basic infrastructure, equipment and quality trainers and hence it is not able to evince interest among weaving community. The centre is still using 4 frame looms of model and 3 frame looms of model. There is also an old washing machine. Lack of working capital is coming in the way of adequate training arrangements. 7.2 Weaver Training Centre, Jhing Nagar, Biharsharif. Weaver Training Centre was established in 1967 to impart training in cotton weaving and dyeing. Every year 24 candidates are trained for duration of one year and Rs 300 is paid every month by way of stipend to each candidate. At present, the centre is run from a rented building and training is provided on 6 frame looms of model. The centre is functioning with inadequate manpower and lack of raw material for trainees. There is no proper equipment for training in dyeing. Lack of basic infrastructure remains a big concern. 37

38 7.3 Weaver Training Centre, Chakand, Gaya This WTC was established in 1992 to impart training to weavers in weaving, colour designing and technical details of the weaving looms. This centre is situated in weavers dominated area and enjoys good reputation in the weaving community. The Centre has 6 looms from state government and further 10 looms have been granted by Govt. of India. There are also accessories like dobby and jacquard available in the centre. Every year 24 people are trained in the centre for duration of one year and Rs 300 is paid every month by way of stipend to each candidate. The facility for training in dyeing and finishing remains a point of concern. 7.4 Weaver Training Centre, Puraini, Bhagalpur 38

39 This centre was previously located at Jagdishpur but was relocated in Puraini in The Centre is being run from a rented and ill maintained house. There are two framelooms of 1977 model in the training centre. Training is being given for making of bed sheets, towels and shirting and also in coloring of the yarn. There is also training available in stitching of the clothes. Each year, 24 persons are trained in stitching and coloring for a period of one year. There are problems related to lack of space, non-availability of modern looms and quality trainers. The centre gets flooded with water in the rainy season. Relocation of centre is a need. Inadequate budget support is another concern. 7.5 Central Design Centre, Patna The centre, around 20 years old, provides training in weaving and designing. It has 12 looms- 9 flying shuttle frame-looms and three pedal looms- for training facilities. The centre has targeted to train 36 candidates every year for a period of six months. During , 14 persons were trained in the first batch, 19 more persons are being trained in the second batch. The old looms, inadequate stipend amount, lack of raw materials, absence of quality trainers are major concerns. 39

40 7.6 Bihar Institute of Silk & Textiles Bihar Institute of Silk & Textiles is a textile engineering college located in Bhagalpur. This is the largest such Institute in the state and was established in The Institute was initially offering 4-year B.Tech. in Silk Technology and Textile Technology. The institute was thus not merely dedicated to handlooms, but was aimed at the entire textile sector in the state. Due to insufficient infrastructure, the Institute had to be closed down for long. The last full-fledged course was conducted during Revived in 2005, the Institute is presently offering a two years vocational course in silk and textile technology. The major course of concern in the institute is lack of teaching staff. Out of present employee strength of 40, there are only 7 lecturers and interestingly none of them has a degree in textile technology. All the teachers are of applied sciences viz., Botany, Zoology, Physics, Chemistry etc. Thus, teaching is being carried out by 2 lab assistants and 2 production managers who have diplomas in textile technology. The present strength of candidates is only 20. The labs and requisite equipment are not available even as the syllabus has been updated and modeled on IIHT Diplomas. 7.7 Major concerns relating to Weaver Training Centres : Major issues having an adverse impact on functioning of these training centres are given below: Lack of basic infrastructure Most of the training institutes do not have adequate basic infrastructure. These centres are being run from dilapidated buildings which have no proper access to power and water supply. Typically, training hall is dark with no proper ventilation. While these centres are supposed to be operated as production centres, too, there is no space for raw material storage. There are poor arrangements for trainees to operate looms. For example, at Puraini, while the centre has got 12 looms and some dyeing equipment, only 2 looms are being used for training. Rest 10 looms and dyeing equipment are dumped in two rooms as the centre doesn t have space to install 10 looms and dyeing unit Lack of Training equipment In almost all the cases, except to an extent in Chakand, Gaya, training equipment is old and ill maintained. Most of the looms are not in good condition and do not have accessories to give proper training. Unless the training centres are provided with modern looms with dobby and jacquard, weaving skills would remain a concern Outdated Syllabus/No quality trainers The teaching staff and content of teaching in all these centres need complete revamping. The syllabus is out dated, there is no coverage of new weaving techniques, product diversification, design development and processing of products. Consequently, the training centres have no attraction for the weavers. Most of the trainees are thus women, 40

41 even as it is a well known phenomenon that weaving remains largely a male dominated activity. The trainers themselves are either absent or lack requisite skills for training No industry/market linkage A key component of any successful training institute/centre has to be its linkage to industry. The trainees have to be linked to market through a training programme, only then a training programme would attract good candidates. This linkage need not be through a regular job. In handloom sector, a training programme should equip the trainees with requisite skills which would help them in meeting the present market demand and thus training inputs have to be decided in close consultation with exporters/traders. 41

42 Chapter-8 : Processing Plants and Co-operative Mills The State govt. had established Dying & Finishing Plant, Darbhanga and Central Processing Plant, Biharsharief for ensuring value addition in the sector. However, these two Centres are lying closed for more than a decade now. In addition, there are three cooperative spinning mills in the state which used to provide yarn to the handloom sector in the state. They have also been not in operation for long. This chapter gives a diagnostic status of these processing plants and co-operative mills. 8.1 Dyeing & Finishing Plant, Darbhanga Dyeing and Finishing Plant in Darbhanga was established in It started operation in 1963 and was closed down in The major reason of establishing the Plant was to provide pre-weaving and post-weaving linkages to the weavers of North Bihar. Thus, the plant had facilities for preparing beams for weaving by handloom weavers along with washing, dyeing and printing facilities for yarn and fabric. However, the pre-weaving processing plant, cone winding, warping and sizing plant could not be started in Darbhanga, In , the state government provided a grant of Rs. 5,95,000 to revive the plant but the attempt was not successful and the plant remains closed. The machines in the plant have become largely useless due to pilferage and lack of maintenance for over a decade. The main reason for closure of the plant was decline of khadi sector as it was the major client for the plant. As the khadi sector was not in a position to provide job work, the plant was not able to compete in the market due to its technical and management limitations. 42

43 Presently, there are only 9 employees on the rolls against a sanctioned strength of 22 employees. Even while the plant remains closed, an amount of around Rs lakhs per month is being spent by the state government towards salaries and establishment charges on the plant. Inside Dyeing & Finishing Plant, Darbhanga 8.2 Central Processing Plant, Biharsharief The processing plant at Biharsharif was set up in and was operational till Planned on the lines of plant at Drabhanga, the processing plant at Biharsharief has the facilities of sizing, dyeing, printing, washing and finishing. The plant was catering to the region of central and southern regions of the state. The plant at Biharsharief was dependent on job work for State Khadi Board, State Handloom Corporation and powerloom industry in Gaya. Once the khadi sector faced decline, the plant was not able to sustain. 43

44 Dilapided building of Central Processing Plant, Biharsharief Presently, there are around 40 employees on the rolls against sanctioned strength of 58. Thus, the state govt. has to incur an expenditure of Rs lakhs per month despite the plant remaining closed for over a decade. The plant and machinery inside the plant have been reduced largely to junk over the years. Another picture of Central Processing Plant, Biharsharief 44

45 Machinery inside the plant 8.3 Co-operative Spinning Mills at Bhagalpur, Pandaul and Siwan Out of these three spinning mills, two mills located at Bhagalpur and Siwan were visited for diagnostic study. Bhagalpur Co. op Spinning Mill was started in The mill has been built on 25 acres of plot in the city. The installed capacity of the mill is 25,000 spindles. However, it was reported that the plant could never operate more than 12,500 spindles. Gradually, the capacity utilization got further reduced and the mill was closed in year The normal count produced in the mill was 34s. A visit to the unit shows following status of plant and machinery : Machine Type No. of Machines Blow 4 Carding 30 Drawing 6 Simplex 10 Spindles