1.1 About:
The Office of the Assistant Director of Handlooms, Erode functioning under the Department of Handlooms, has been operating since 1973. Under this department, there are 191 Handloom Weavers’ Cooperative Societies and 57 Powerloom Weavers’ Cooperative Societies functioning in Erode District.
1.2 Vision and Mission:
Vision:
The primary objective of the Department of Handlooms is to foster the balanced development of both handloom and powerloom industries while working to enhance the welfare of weavers and allied workers.
Mission:
1.3 Administrative Setup:
The Director of Handlooms is designated as the “Functional Registrar” for Handloom and Powerloom Weavers Cooperative Societies as well as other cooperative institutions within the handloom sector. The role is governed by the Tamil Nadu Cooperative Societies Act, 1983, and Tamil Nadu Cooperative Societies Rules, 1988.
The Department of Handlooms functions under the administrative control of the Handlooms, Handicrafts, Textiles, and Khadi Department, Government of Tamil Nadu.
The Assistant Director of Handlooms, Erode is the District Head and the Administrative Control of both Office of the Assistant Director of Handlooms and Weavers Cooperative Institutions functioning in Erode District.
The Circle Assistant Director must function within the powers delegated to him as specified under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988.
1.4 Tamilnadu Co-Operative:
Tamilnadu Co-Operative Textile Processing Mill Functioning in Erode under the administrative control of department
Institutions functioning under the administrative control of the Assistant Director of Handlooms, Erode.
1.5 Directory:
2. SECTORS
2.1 HANDLOOM SECTOR
The Handloom Weavers Co-operative Societies are primarily found in rural and semi-urban areas of Erode District. Handloom weavers work on a variety of looms, including ordinary Pit looms, Pit looms with dobby and jacquard as well as Frame looms, Frame looms with dobby and jacquard. The following are the handloom varieties produced in Erode District.
| Sl. No | Area | Varieties Produced |
| 1 | Chennimalai, Perundurai, Vijayamangalam and Erode | Bedsheet, Bedspread, Pillow covers, Towels, Home Furnishing Varieties |
| 2 | Bhavani and Anthiyur | Jamakkalam, Mat |
| 3 | Kavindapadi | Mat, Towels |
| 4 | Sathyamangalam, D.G. Pudur, Doddampalayam | Cotton Sarees, Soft Silk Sarees |
| 5 | Sivagiri, Thandampalayam | Mat, Towel, Duster Cloth Varieties |
UNIQUENESS OF HANDLOOM PRODUCTS OF TAMIL NADU
Tamil Nadu is renowned for its exceptional craftsmanship in the handloom sector, producing a wide range of textiles that are globally recognized for their beauty, elegance, and cultural significance as below:
GI PRODUCT:
THE BHAVANI JAMAKKALAM
The Bhavani Jamakkalam known for its special characters, quality, reputation resulting from particular region’s natural environment and human skill in Tamil Nadu have obtained G.I. tags. The Bhavani Jamakkalam is bold and vibrant hand-woven rugs. The highlight is the multi-coloured cross bars, woven in the pit loom. Traditionally, letters, figures and scenes are also woven by hand in the “Korvai” technique.
Kora Cotton Sarees
Kora Cotton Sarees are woven in and around Coimbatore. The saree is a blend of kora silk in the warp and cotton in the weft, with distinct motifs woven in the pallu.
2.1 POWERLOOM SECTOR
The powerloom industry refers to the use of mechanized looms to produce fabrics, which can greatly increase production efficiency compared to handlooms. The industry primarily focuses on weaving cotton and synthetic fabrics and it caters to both domestic and international markets.
The majority of powerlooms located in Ashokapuram, Veerapanchatram, Lakkapuram, Sulai, Perundurai and Chithode areas.
The Major Powerloom products are Dhoties and Sarees production and Uniform Cloth production under Government Schemes.
3 STATE SPONSORED SCHEMES FOR THE DEVELOPMENT OF HANDLOOMS AND POWERLOOMS
3.1 FLAGSHIP SCHEMES
The Government of Tamil Nadu have introduced the Distribution of Sarees and Dhoties Scheme during the year 1983 as one of the Flagship schemes. Every year on the occasion of Pongal festival, Tamil Nadu
government is implementing a scheme to provide Dhothi and saree to the poor and needy people. Out of the total requirement of Dhothi saree production plan of Tamil Nadu Government’s Scheme one-third of Dhothi Saree Scheme is produced in Erode district,. More than 50,000 powerloom weavers and ancillary workers related to the powerloom industry are benefiting from this scheme of the Tamil Nadu government.
Under the Dhothi saree distribution scheme, which is a very successful Flagship program implemented by the Tamil Nadu government every year, the production plan is being given to the powerloom weavers’ cooperative societies in Erode district and the yarn required for production is supplied to the powerloom weavers cooperative societies through the
Government Yarn Warehouse, Erode. Power loom weavers’ cooperative societies are producing Dhothi, sarees through their members and send them to procurement centres.
In Erode District, there are 45 powerloom weavers cooperative societies are working under this scheme. Under the scheme, production target has been achieved, and production has been carried out in an excellent manner and the Dhothi sarees are being sent to procurement agencies in due time and quality tested and Dhoties, Sarees distributed to the beneficiaries in time during last scheme.
Production Details Under Distribution of Sarees and Dhoties in Erode Circle for Pongal 2026:
| Sl.
No
|
Dhothi Saree Distribution scheme | variety | Target (Item) Issued (in lakhs)
|
Target (Item) Achieved (in lakhs)
|
| 1. | Pongal 2026 | Dhothi | 60.38 | 60.38 |
| Saree | 49.49 | 49.49 |
3.1.2 UNIFORM SCHEME
The Tamil Nadu government is implementing a uniform distribution Scheme to provide four sets of uniforms to school children every year. One-third of the total uniform fabric production of the Tamil Nadu government’s uniform distribution program is produced in Erode district, which is a region where powerlooms are concentrated. More than 50,000 powerloom weavers and ancillary workers related to the powerloom industry are benefiting from this scheme of the Tamil Nadu government.
Under the uniform distribution Scheme which is implemented by the Government of Tamil Nadu every year, the production plan is being given to the power loom weavers cooperative societies in Erode district and the yarn required for production is supplied to the power loom weavers cooperative societies through the government yarn warehouse, Erode. The Powerloom weavers’ cooperative societies are producing the uniforms through their members and send them to the procurement centres.
There are 45 handloom weavers cooperative societies functioning in Erode district. under the Tamil Nadu government’s uniform distribution scheme, the production target has been obtained and uniform production has been carried out in an excellent manner and uniform fabrics have been sent to the social welfare department for sewing and uniforms were distributed to the students on time.
| Sl.No | Uniform Scheme | Variety | Target Issued (in Lakh) | Target Achieved (in Lakh) |
| 1. | Academic year
2025-26
|
Drill | 46.43 | 46.43 |
| Casement | 24.29 | 24.29 | ||
| Green Shirting | 39.63 | 39.63 | ||
| Sandal Shirting | 41.54 | 41.54 | ||
| 2. |
Academic year 2026-27
|
Drill | 46.83 | Ongoing Scheme |
| Casement | 17.11 | |||
| Green Shirting | 40.16 | |||
| Sandal Shirting | 33.88 |
3.1.3 HANDLOOM SUPPORT PROGRAMME :
The Handloom Support Program introduced by the Government of Tamilnadu aims to sustain and promote the handloom sector by addressing key gaps in technological upgradation, infrastructure, skill development, product diversification, design development, market access and ensuring fair remuneration for weavers.
Under this scheme, financial assistance is provided in 7 categories:
| Sl.
No. |
Components | Share (Ratio) | |
| Govt. | Bene. | ||
| 1 | Technological Up-gradation | 90 | 10 |
| 2 | Design Development | 100 | – |
| 3 | Product Diversification | 80 | 20 |
| 4 | Brand Promotion | 80 | 20 |
| 5 | Market Expansion | 75 | 25 |
| 6 | Working Capital Assistance | 100 | – |
| 7 | Research & Development | 100 | – |
3.1.4 INTEREST SUBSIDY:
The Interest Subsidy Scheme was introduced by the Government of Tamil Nadu to support the working capital needs of Primary Weavers’ Co-operative Societies through District Central Co-operative Banks (DCCBs) under the NABARD Refinancing Scheme.
The objective is to enhance the financial stability of Primary Weavers’ Co-operative Societies by providing access to affordable credit. This will promote the growth of the handloom sector by reducing the cost of borrowing, enabling the co-operatives to meet their working capital requirements and ensuring their continued operations and development.
A subsidy of 6% of the interest charged on the cash credit given to the Weaver Cooperative Societies is being given by the Government of Tamil Nadu to the concerned Weavers Cooperative Societies. For the year 2025-2026, an amount of Rs.281.61 lakh has been sanctioned to 127 societies.
3.1.5 MINI HANDLOOM PARK
Objectives
Location
Project Cost
The estimate for construction of Mini Handloom Park is approved for the cost of Rs.1.73 crore by Director of Handlooms on 06.02.2025.
Special Purpose Vehicle:
The following SPV are selected to participate in Mini Handloom Park
40 Looms and Loom accessories for an amount of Rs.29.63 lakh will be installed.
Current Status:
As announced by the Hon’ble Minister for Finance and Environment, Climate Change during the Budget Speech for the year 2025-2026, a Powerloom Modernization Scheme worth Rs.50.00 crore will be implemented from 2025-2026 to meet the ever-changing technological requirements in the powerloom sector and to provide capital subsidy to upgrade 3 year old ordinary powerlooms to produce high-value fabrics.
Under this scheme, Rs.30.00 crore will be provided annually for upgrading 3,000 ordinary power looms and Rs. 20.00 crore will be provided for setting up facilities such as loom sheds, common facility centres, and quality testing laboratories to support exports in powerloom clusters.
Achievements:
Under the aforementioned scheme, 39 applications were received in Erode District via the online portal for the conversion of powerlooms into Rapier looms. and subsidy of Rs. 9.00 Lakhs has been disbursed to 2 applications having other applications are being processed at various stage.
3.1.7 Rebate Subsidy Scheme :
Under this scheme, the State Government have permitted the primary Handloom weavers’ co-operative societies to allow Government rebate at the rate of 20% or Rs.100/- per unit whichever is less to the consumers
throughout the year. 30% Special Rebate or Rs.150/- per unit is allowed consumers for the period from 15th of September to 31st January of next year (139 days).
3.2 GOVERNMENT WELFARE SCHEMES FOR HANDLOOM WEAVERS
3.2.1 Weavers Old Age Pension Scheme :
The Government of Tamilnadu is implementing the Co-operative Handloom Weavers’ Old Age Pension Scheme w.e.f. 01.04.1997. According to this scheme the Handloom weavers who have attained the age of 60 years has been enrolled
in the Old Age Pension Scheme. A sum of Rs.1200/- per month. w.e.f. 01.08.2023. Total Beneficiaries in Erode Circle as on 31.03.2026 – 7991.
3.2.2 Weavers’ Family Pension Scheme :
The Government of Tamilnadu is implementing the Co-operative Handloom Weavers’ Family Pension Scheme from the year 1992 and modified in the year 2010. According to this scheme, in the event of death of a Handloom weaver member before attaining the age of 60 years, the nominee of the deceased weaver will be paid Family Pension for 10 years or till the period if the deceased attains 60 years which one is beneficial to the Weavers family at the rate of Rs.1200/- per month w.e.f. 01.08.2023. Total Beneficiaries in Erode Circle as on 31.03.2026-379.
3.2.3 Weavers’ Savings and Security Scheme :
The Government of Tamilnadu is implementing the Co-operative Handloom Weavers Savings and Security Scheme from the year 1975, aiming at encouraging the Saving habits among the Handloom weavers.
Under this scheme, each weaver of the weavers co-operative society
contributes 8 paise per Rupee of wages earned. The Government of
Tamilnadu is now contributing 8 paise per Rupee as matching contribution to the weavers account and this 16 paise earns 6.5% Per annum as interest and the same was also credited to the weavers members account. Total Beneficiaries in Erode Circle as on 31.03.2026 – 11454.
3.2.4 HOUSING:
The Handloom Weavers Subsidized Housing Scheme is implemented to provide financial assistance for the construction of houses for handloom weavers living below the poverty line (BPL).
It aims to promote the construction of affordable houses for weavers in both rural and urban areas and integrate the Pradhan Mantri Awas Yojana (PMAY) with the Handloom Weavers Subsidized Housing Scheme to maximize benefits for weavers.
Under the scheme, a total subsidy of Rs.4.00 lakh is provided to each beneficiary for the construction of houses.
The Government of India is contributing Rs.79,200/- as central share and the Government of Tamil Nadu is contributing Rs.1,72,800/- as state share for the construction per house for rural people. Besides, an additional share of Rs.1,48,000/- is being provided to rural handloom weavers by the Government of Tamil Nadu, making a total subsidy of Rs.4.00 lakh.
The scheme is being implemented in rural areas by the Tamil Nadu Rural Development and Panchayat Raj Department.
27 Weavers Benefited under this scheme in Erode Circle.
Urban area
The Government of India is contributing Rs.1,50,000/- as central share and the Government of Tamil Nadu is contributing Rs.60,000/- as state share for the construction per house for urban people. Besides, an additional share of Rs.1,90,000/- is being provided to urban handloom weavers by the Government of Tamil Nadu, making a total subsidy of Rs.4.00 lakh. This scheme is implemented in urban areas by the Tamil Nadu Urban Habitat Development Board.
157 Weavers Benefited under this scheme in Erode Circle.
The Free Electricity to Handloom Weavers has been implemented since 2006-2007 with the aim of easing the financial burden on handloom weavers and providing them with better working conditions.
Supply of free electricity up to 300 units bimonthly to handloom weavers, starting from March 3, 2023.
9799 Handloom weavers benefited under this scheme in Erode District for the year 2025-2026.
The Free Electricity to Powerloom Weavers has been implemented since 2006-2007 with the aim of easing the financial burden on powerloom weavers and providing them with better working conditions.
Supply of free electricity up to 1000 units bimonthly and subsidized electricity for consumption beyond 1000 units to powerloom weavers, starting from March 3, 2023.
| Revised subsidy tariff w.e.f. 01.07.2024 | |||
|
Unit |
Tariff per unit | Govt. subsidy per unit | Tariff per unit payable by the
weavers |
| (in Rs.) | |||
| 1-500 | 6.95 | 6.95 | – |
| 501-1000 | 8.00 | 8.00 | – |
| 1001-1500 | 8.00 | 3.55 | 4.45 |
| 1500 and above | 8.00 | 2.35 | 5.65 |
11,893 powerloom weavers benefited under this scheme in Erode District for the year 2025-2026.
3.2.6 Award:
The Tamil Nadu Government has been implementing the “Best Weavers Award” and “Best Designer Award” to recognize and reward the contributions of weavers and designers in the handloom sector.
3.2.7 State Level Best Young Designers Award:
The State Level Best Young Designers Award is an initiative introduced by the Tamil Nadu Government from the year 2022-2023 to encourage young talented designers and foster a connection between the youth and the handloom sector.
The competition aims to inspire young talent by connecting students and designers with the handloom industry, showcasing their creativity. It seeks to identify innovative designs that align with market trends, enhancing the appeal of handloom products and boosting the sector’s growth, visibility, and sales in Tamil Nadu and beyond.
The Talented Weavers Award is an initiative by the Government of Tamil Nadu to encourage and recognize the craftsmanship of weavers producing unique handloom products including silk and cotton sarees, dhoties, and handloom export varieties.
The Talented Weavers Award is given to 60 weavers in 20 categories in every year. The details of cash awards are as follows:
The total expenditure of the Talented Weavers Award scheme amounts to Rs.4.00 lakh, which is funded through the Co-operative Research and Development Fund of the Tamil Nadu Co-operative Union. This scheme will be continued in 2025-2026.
3.3 SCHOLARSHIPS
3.3.1 Awarding Scholarships under Dr.MGR Handloom Weavers Welfare Trust
The Dr. MGR Handloom Weavers Welfare Trust was established in 1986 with the primary objective of supporting the wards of handloom weavers to pursue higher education. The Trust provides scholarships to deserving students from the families of weavers, encouraging them to excel in their studies particularly those excelling academically, while fostering gender balance in education.
Scholarships are being awarded annually to the top 5 Male and 5 Female students who secure the highest marks in the X and XII standards. Additionally, scholarships are also extended to the graduates based on performance in the respective courses.
The Government of Tamil Nadu is providing stipend to the wards of the handloom weavers who are pursuing a Diploma in Handloom and Textile Technology (DHTT) in Indian Institute of Handloom Technology (IIHT), Salem from the year 1977.
This apart, the Government of Tamil Nadu also providing stipend to wards of the handloom weavers who enrolled in the Diploma in Handloom and Textile Technology (DHTT) program at other institutes in Karnataka, Andhra Pradesh, and Kerala under Tamil Nadu’s quota.
The stipend provided to students pursuing the Diploma in Handloom and Textile Technology (DHTT) is Rs.2,500 per month for each year, with Government of India (GoI) contribution of Rs.1,250 and the Government of Tamil Nadu contribution of Rs.1,250 (GoTN) for the first, second, and third years. The state share amount is being sourced annually from the Cooperative Education Fund of Tamil Nadu Cooperative Union.
4 SCHEMES OF GOVERNMENT OF INDIA
4.1 Cluster Development Programme
The Government of India’s National Handlooms Development Programme (NHDP) aims to promote the sustainable growth and empowerment of handloom weavers by transforming handloom clusters into self- sustaining socio-economic hubs.
The Cluster Development Programme (CDP), implemented as one of the schemes under National Handloom Development Programme, focuses on the welfare of handloom weavers both in cooperative fold and outside the cooperative fold.
The revised guidelines for 2022-2026 emphasize uplifting weavers through innovative strategies and comprehensive support. The Cluster Development Programme (CDP) enhances the welfare of weavers through targeted interventions enabling them to thrive in a self-reliant environment.
The Government of India provides financial assistance up to Rs.2.00 crore for the development of each handloom cluster. This assistance aimed to improve infrastructure, technology, market access and skill development.
|
Components |
Assistance (Rs. in
Lakh) |
|
|
1 |
Looms / accessories, lighting units, construction of individual Work shed, Construction of Common work shed, Solar lighting system for common work shed, etc., | 150.00 |
| 2 | Appointment of Designer | 15.00 |
| 3 | Project Management Cost | 15.00 |
| 4 | Other interventions | 20.00 |
During the year 2023-2024, the Government of India have sanctioned 2 small handloom cluster in Erode circle at a project cost of Rs.1.90 crore and sanctioned Rs.0.89 crore as 1st instalment for the benefit of 415 weavers as given below:
|
Sl. No. |
Nameofthe Cluster and District |
No.of Beneficiaries |
Project Cost (Rs. in Lakh) |
| 1 | Annai Bhavani, Erode | 210 | 98.000 |
| 2 | Nasiyanur, Erode | 205 | 92.300 |
The Government of India introduced the Weaver MUDRA Scheme under the National Handloom Development Programme in the year 2016-2017. The scheme aims to provide concessional credit to handloom weavers through nationalized banks, ensuring financial support for their growth and development.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched by the Government of India, specifically designed to provide financial protection in the event of accidental death, disability, or injury. The scheme aims to offer affordable insurance coverage for the general public, especially those from low-income groups.
Features of PMSBY:
Target Group: Available to all Indian citizens, including weavers, aged 18 to 70 years.
Coverage:
The “Chief Minister’s Comprehensive Health Insurance Scheme,” implemented by the Government of Tamil Nadu, is now being integrated with the Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
This unified health insurance initiative provides coverage upto Rs.5 lakh per family per year. The State Government has taken steps to ensure that all eligible handloom weaver families are included in this integrated health insurance scheme.
In Erode District 17,894 handloom weaver families have been enrolled under the scheme as on 31.03.2026.
The Government of India has introduced several initiatives such as the Handloom Mark, Silk Mark, and India Handloom Brand to provide authenticity and exclusive identity to handloom and silk products under the scheme.
4.5.1 Handloom Mark
The Handloom Mark was launched by the Union Government on 28th June 2006 to create a distinct identity for handloom products and enhance their marketing in both
domestic and international markets.
Introduced by the Government of India on 17th April 2004, the Silk Mark aims to promote pure and natural silk products in domestic and international markets.
The India Handloom Brand was launched by the Government of India during the celebration of the 1st National Handloom Day on 7th August 2015. This initiative endorses the quality of handloom products, focusing on parameters such as raw material, processing, weaving, design, and social and environmental compliance.
