CHENNAI: Tamil Nadu Chief Minister K Palaniswami today urged the centre to remove the two clauses which were introduced recently in the National Handloom Development Programme for societies to avail marketing incentives.
According to him, the clauses specified that the turnover of Handloom Weavers Co-operative Societies should not be more than Rs 30 lakh and can avail incentives only for a three-year period.
In the earlier scheme, there was neither any time limit nor sales turnover as eligibility criteria, making it easier for the societies to avail the incentives, Palaniswami said in a letter to Prime Minister Narendra Modi.
The Chief Minister said only 285 societies consisting of 53,140 weavers in Tamil Nadu would become eligible, as against 868 societies which consist of 2.
69 lakh weavers for the incentives under the new initiative.
On the other clause that the Societies' can avail incentives only if the turnover is up to Rs 30 lakh, he said, it would lead to affect the sales of handloom.
"There will not only be any cash flow in the societies, continuous employment would also be affected", he said.
Holding that co-operative societies depend 'heavily' on the marketing incentives, he said due to the new clauses there would be accumulation of stock and loss of working capital.
The co-operative societies struggle "very hard" due to impact of Goods and Services Tax and it is imperative that they get continuous support to liquidate the stocks, he said.
He pointed out those societies which have more than Rs 30 lakh turnover also employ large number of members and marketing incentive was required to face the "stiff competition".
Palaniswami said the societies provide employment to lakhs of weavers, which is the prime objective of the National Handloom Development Programme.
He requested Modi to remove the Rs 30 lakh turnover cap on societies and also the three-year time limit, so as to extend the benefit of marketing incentive to the entire handloom sector.