Liquidation of Handloom Weavers’ Cooperatives in Madurai Circle, Tamil Nadu: Causes, Impacts, and Policy Solutions

Abstract

The Liquidation of Weavers' Cooperative Societies (WCSs) in Madurai District has generated major concerns regarding the sustainability of the handloom sector and weavers' socio-economic welfare. The shutdown of these societies has resulted in large-scale unemployment and economic hardship among weavers, who depend entirely on cooperative assistance for income and provision of raw materials. The reduction in WCSs has also diminished collective bargaining capacity, leaving individual weavers exposed to exploitation by intermediaries and private traders. Besides, the conventional handloom ssector has also been dealt a blow since the liquidation of these cooperatives has undermined the coherent production and marketing off hand woven goods, and hence, the demand has dwindled along with heritage craftsmanship. Withdrawal of institutional credit facilities and government subsidies granted hitherto through WCSs has further excluded weavers from main stream economic activities, compelling most of them to seek alternative means of livelihood or seek informal employment opportunities.