Chendamangalam’s Famed Handloom Industry Battles Crisis Ahead of Onam

Syllabus: GS3/Economy

Context

• With Onam round the corner, customers are insistent on authentic ethnic wear called Chendamangalam handloom.

Chendamangalam Handloom Industry 

• Cultural Significance: Chendamangalam (Ernakulam, Kerala) is famed for its traditional handloom products, especially in demand during Onam.
• Crisis in the Weaving Sector: Weavers have declined from ~5,000 in the 1980s to ~500 now (spread across 5 cooperative societies).
• Causes: Lure of employment guarantee schemes, perception of low wages, and youth disinterest.
  • Remuneration is viable if adapted to new designs/market needs.

• Resilience & Innovation: Chendamangalam-Karimpadam Handloom Cooperative Society gained global attention in the 2018 floods by making ‘Chekutty dolls’ from soiled cloth.

Handloom Industry

• The Indian handloom industry is one of the oldest and most vibrant cottage industries in the world.
• The Swadeshi Movement, launched on 7th August 1905, championed indigenous industries as a form of economic resistance to colonial rule.
  • In honour of this legacy, the Government of India declared 7th August as National Handloom Day in 2015. 
• According to the 4th All India Handloom Census (2019–20), about 35.22 lakh households are involved in this work, and around 72% of economic handloom weavers are women. 
• Top Export Destination: In FY 2024-25, the United States remained the largest destination, followed by the United Arab Emirates, the Netherlands, France, and the United Kingdom, respectively. 
• Products: Made-ups such as cushion covers, curtains, table linen, and other household items contributed 42.4% in 2024-25, followed by floor coverings like carpets, rugs, and mats, which made up 40.6%.
  • Clothing accessories contributed 12.7%, while fabrics accounted for 4.3%.

Major Challenges Faced by the Industry

• Declining Number of Weavers: Younger generations moving away due to low income, lack of social security, and absence of modern skill training.
  • Traditional weavers are aging, leading to a shrinking workforce.
• Economic Distress: Rising cost of raw materials (cotton, silk, dyes) but low selling prices due to middlemen exploitation.
• Competition from Powerlooms & Mills: Mass-produced, machine-made fabrics are cheaper, faster to produce, and dominate markets.
  • Handloom products lose price competitiveness despite better quality and uniqueness.
• Weak Marketing & Branding: Limited penetration in domestic and global markets due to the absence of branding, modern retail, and e-commerce adoption.
• Technological & Skill Gaps: Traditional looms are labor-intensive and less productive.
  • Lack of design innovation and modern training to meet changing fashion trends.
• Globalisation & Import Competition: Cheap imports (especially from China and Bangladesh) are flooding Indian markets.
  • Indian handloom struggles to compete internationally due to high production costs and a lack of aggressive export promotion.

Government Initiatives

• GeM Onboarding: Allows weavers to sell directly to government departments via the Government e-Marketplace (GeM).
• Raw Material Supply Scheme (RMSS): It has been approved for implementation for the period 2021–22 to 2025–26.
  • The scheme aims to support handloom weavers by ensuring the availability of quality yarn at affordable prices.
• Marketing Assistance: Expos and district-level events are organised regularly to provide a marketing platform to the handloom weavers. 
• Certification of Handloom Products: The Handloom Mark was launched in 2006 to provide a distinct identity to handloom products.
  • In 2015, the India Handloom Brand (IHB) was introduced for branding high-quality handloom products. 
• Small Cluster Development Programme (SCDP): Need-based financial assistance of up to ₹2 crore per cluster is provided for interventions.
• Skill Up-gradation: Weavers and allied workers receive training to learn new weaving techniques, adapt to modern technologies, and develop new designs and colours. 
• Design Resource Centers (DRCs): Established in major cities to enhance design excellence in handlooms.
• Weavers’ Welfare Scheme: Includes National Handloom Development Programme (NHDP), Comprehensive Handloom Cluster Development Scheme (CHCDS), Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS), Yarn Supply Scheme (YSS), and Hathkargha Samvardhan Sahayata.
• Weaver MUDRA Scheme: Offers financial assistance for working capital and new technology investments.

Source: TH