The sub-committee of the State Level Bankers’ Committee (SLBC) on enhancing flow of credit to handloom and handicraft sector has suggested the banks to increase funding to these sectors.
Since the credit flow to handloom and handicraft sector is not commensurate with the credit flow to other sectors, majority of the Primary Weavers’ Co-operative Societies are defunct.
In this scenario, the banks and the financial institutions have been urged to adopt clusters identified by the textile department of Orissa government and augment financing under cluster approach.
In the recent meeting of the sub-committee, it was decided that banks should finance handicraft artisans and take coverage under credit guarantee funds trust for micro and small entrepreneurs. The banks may sanction DRI loan to weavers and artisans in the handloom and handicraft sector who are in the below poverty line (BPL) category.
The panle said, the pending loan applications of the self help groups (SHGs) operating in these sectors should be disposed of at the earliest.
It further said, in the District Credit Committee (DCC) meeting, the handloom and handicraft sector would be on the regular agenda and the performance of the banks in financing these sectors should be reviewed meticulously.
Textile and Handloom department has been requested to communicate the district collectors for constitution of District Level Task Force (DLTF).
It may be noted, apart from providing employment to about 5 lakh skilled artisans and weavers, the handloom and the handicraft sectors are contributing to the export earnings of the state.
However, as the handloom weavers are dependent on the micro finance institutions (MFIs), they are being exploited through higher interest on the loans availed from MFIs. The augmentation of credit to these sectors would help the artisans and weavers to tap low cost loans.
