Handloom industry in the doldrums

Number of handloom units drops to 45,000 in 2017 from 0.1 million in 2003

The number of handloom units has registered a sharp fall mainly due to a continuous growth of powerlooms and dyeing factories in the country over the years, according to a study.

A gradual change in women's dress habit and fashions is also responsible for such a situation.

As a result, the number of handlooms has dropped to 45,000 in the country in 2017 compared to 0.1 million in 2003, said a recent study conducted by Bangladesh Institute of Development Studies (BIDS). Some 165,000 handlooms were in operation in the country in 1990, it added.

The objective of the study was to look into the existing status of the country's handloom industry in reference to the past and formulate a hypothesis on the future standing.

The study was conducted based on secondary materials drawn from desk review of available published and unpublished documents and primary information gathered from field visits to important handloom concentration areas and also some selective areas producing artistically-designed delicate fabrics.

The rate of decline in the establishments and employment during 1990-2003 was estimated at 3.8 per cent and 1.31 per cent respectively. The corresponding rate was estimated at 5.0 per cent and 6.80 per cent for the period 2003-2013.

The handloom industry has taken its own course of transition to powerloom.

The decline in the number of handloom units has to have serious implications for labour displacements and unemployment.

It was reported that the labourers already displaced were mostly absorbed in other sectors like the readymade garment industry and rural transportation (non-motorised vehicles such as rickshaw-van and motorised vehicles like motorcycles and scooters).

Many displaced workers from handlooms found overseas employment as well.

The factors accountable for the long-term growth of the handloom industry during 1947-1990 include a favourable government policy towards protecting handlooms by adopting some fiscal measures against competition from mills and imports.

Consumers' preference for handlooms in the main lines of production such as cotton saris and lungis, production of certain specialised fabrics and cheap supplies of outside labour, especially female and child workers are the factors for the industry's growth, the study added.

National Association of Small & Cottage Industries of Bangladesh (NASCIB) president Mirza Nurul Ghani Shovon told the FE that handloom is an ancient industry which should be revived and protected by providing financial and policy support to entrepreneurs.

The handloom industry can maintain high quality products like saris or others, but powerloom cannot do such, he added.

Earlier, Bangladesh Handloom Board provided raw materials to the handloom industry, but it stopped later. It was a big blow for the industry, he said.

Besides, entrepreneurs used to get loan on easy-term, Mr Shovon said.

The handloom board should play an effective role in reviving the industry. Proper patronisation by the government can revive the industry again, he said.

Dr Muhammad Abdul Latif, former director of Institute of Microfinance, laid emphasis on shifting the handloom industry into powerloom.

With the passage of time, the people have been trendy and fashionable and advanced technology has been developed, so the industry is turning into powerloom, he told the FE.

Even the employees of the industry are not out of job as they are joining powerloom, readymade garment and other sectors, he said.

Dr Nazneen Ahmed, senior research fellow at Bangladesh Institute of Development Studies (BIDS), said the government should turn the handloom industry into powerloom industry.

"The government can declare many of the handloom products as heritage," she told the FE.

It is true that the handloom industry cannot compete with the powerloom industry due to technological advancement, Ms Ahmed said.

• Courtesy: The Financial Express /Sep 10, 2018