High cotton yarn prices on account of cotton exports have put thousands of powerloom weavers and processors in the town of Burhanpur under a tight squeeze. The weavers are already facing frequent power cuts and state government apathy.
“Burhanpur weavers have already been suffering for years. There is no let up in frequent power cuts and poor facilities, the recent decision of the Central government to allow cotton exports has prompted stock holding tendency among farmers and traders, we have no option but to buy costly yarn. Unlike Madhya Pradesh, the government of Maharashtra has offered slew of sops to our competitors in the neighbouring state (Maharashtra),” Ikram Ansari, All India Powerloom Board member told Business Standard. He led a delegation in the month of October and urged the Union government to allow cotton exports only when the arrival starts in mandis.
Besides, the powerloom weavers in Burhanpur have to face frequent power cuts. “Each day there is a power cut of six to eight hours. We have regular power load-shedding schedule in Burhanpur from 900-1,200 hours and 300-600 hours. It has made our work more difficult. We have to pay to labourers even if looms are not operational,” Ansari said, who was also the chairman of Ikram Ansari committee constituted few years back to suggest on revival of the powerloom industry in Burhanpur. However, traders have said the cotton yarn price surge is due to late arrivals and lower purchase by spinners.
Six years back the state government had accorded industry status to the sector but no benefit has been granted to these small cottage industry. “Most of the powerloom owners are offered slew of sops and concessions in the neighbouring state of Maharashtra. They are offered 30 per cent subsidy on powerloom purchase and other subsidies of the state government. Madhya Pradesh government has offered no exemption, no concession or subsidy so far despite that we also enjoy industry status,” he said.
Madhya Pradesh Bunkar Sahkari Sangh, a cooperative society, had been dissolved by the ruling Bharatiya Janata Party (BJP) in the state in 1994. “Since then they have not done anything to revive the cooperative, due to political reasons,” Ansari said.
Earlier as well, the state government had planned to shift the weavers from the main city which cannot accommodate more powerloom weavers due to the increasing population, had formed a co-operative called “Burhanpur Fairdeal Cooperative Society” to set up a textile park. But the state government turned down their demand for exemptions in stamp duty and registration of a 54-acres of land on which the looms were supposed to be shifted. But later the members refused this demand of the government as “stamp and registration charges were more than the cost of the land”.
The decline of the powerloom units began in 1986, when the town started facing power shortages and entry tax on cotton was imposed. Though no accurate data are available on operational powerlooms in the state, local associations’ records say of the 32,800 installed powerlooms in Burhanpur, 29,000 powerlooms are operational. “State government will soon work out a plan to address problems of the powerloom industry,” a senior government official said.