Monipuri Tribe
Monipuri Tribe
Suntu
II, No.
Kumar
2, 2005,
Ghosh
pp. 1-12
et al
ABSTRACT
Handloom industry in Bangladesh is having glorious past, questionable present and blurry future
due to a lot of internal and external factors that are acting behind the scene. In this paper, we have
identified those predominant factors that are moving the wheels of this industry slowly. And among
them, shortage of working capital, high cost of raw material procurement, lack of organizing
capability, inadequate technology and efficiency, and lack of policy support are major forces which
are bitterly hit the handloom industry.
1
Suntu Kumar Ghosh et al
2
Handloom Industry on the Way of Extinction
legal and illegal ways and 2) Power loom produced this industry of last 15 years (from 1989 to 2004)
cloths (Ahmed, 1999). In our next discussion, we to reveal the past and present situation of this
are going to illustrate a comprehensive scenario of industry.
Since 1989-90 fiscal year to until 2003-04 fiscal of cloth production in mills jumped up
year, the share of the cloth production in the tremendously.
handloom sector dropped sharply while the share
50
40
30
20
10
0
1989- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003-
90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04
Year
Source: (‘The Daily News Today’, February 08, 2005, Page- 10)
Figure 1, clearly shows the upward trend of the in the handloom sector during the last 15 years
share of cloth production in mills and the from 1989-90 to 2003-04. (News Today: Feb
downward trend of the share of cloth production 2005; 10)
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Suntu Kumar Ghosh et al
60
20 5.8
0
1989-90 2003-04
Year
Source: (‘The Daily News Today’, February 08, 2005, Page- 10) (Appendix-2)
From the above Figure, we can see, in 1989-90 production in textile mills jumped to over 72
fiscal year the textiles mills had a share of about 18 percent in 2003-04 fiscal year while the share of
percent cloth production as against handloom handloom and power-loom sectors slide to 21
sector’s about 65 percent and power-loom sector’s percent and 5.8 percent respectively. (News
17 percent. However, the share of cloth Today: Feb 2005; 10)
1500
meters
826.8
1000 590
0
1989-90 2003-04
Year
Handlooms (in million meters) Mills (in million meters)
Powerlooms (in million meters)
Source: (‘The Daily News Today’, February 08, 2005, Page- 10)
From the figure- 3, we can see that the handloom during the last 15 years. On the other hand, the
production has been decreasing significantly from mill production registered a subsequent increase in
826.8 million meters to 590.0 million meters cloth production during the last 15 years. The total
4
Handloom Industry on the Way of Extinction
From the above table it is clear that our factor indicates .000 probability (.000) which is less than
analysis is appropriate as KMO test result is the significance level (.05).
greater than .5o and it is valid as Bartlett’s test
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Suntu Kumar Ghosh et al
From the above table, 7 factors have been 70% that indicates the adequacy of the analysis
extracted as cumulative frequency is greater than through the derived factors.
Component Matrix a
Component
1 2 3 4 5 6 7
Weavers dont get quality
.686 .255 -.340 .131 -.064 -.076 -.079
raw materials
Weavers dont get raw
.630 .347 -.188 -.307 2.E-02 -.169 3.E-02
materials in time
Weavers dont get raw
.619 .434 -.251 -.122 2.E-02 -.235 .121
materials at right price
Suffers from inadequate
.589 .156 .175 -.246 6.E-02 .172 -.345
contemporary technology
Government supports are
-.316 .806 .117 .309 -.110 8.E-02 8.E-02
not sufficient
Government supports are
-.392 .739 6.E-02 .291 -.200 9.E-02 1.E-02
not effective
Weaver's faces scarcity of
-.208 .488 7.E-02 -.289 .410 -.333 .104
working capital
Promotions are not
.321 .189 .704 .279 .140 -.069 -.147
effective
The Industry faces
competition from mill & .321 -.158 .688 .117 -.190 -.258 .157
powerloom sector
Weaver's have lack of skill .370 -.021 -.401 .511 -.228 .263 -.158
Distribution channel is not
.440 -.133 .115 .422 .586 9.E-02 -.175
efficient
High level of skill is
needed to produce .355 .061 .341 -.349 -.574 .253 -.066
handloom products
Weaver's Association is
-.023 .245 .122 -.323 .350 .753 .104
not efficient
Production is not
.489 -.138 2.E-02 .183 3.E-02 .184 .762
sufficient to meet demand
Extraction Method: Principal Component Analysis.
a. 7 components extracted.
7 factors have been extracted from the component V. Analysis of Factors under H1 and other core
matrix on the basis of factor loadings to encounter hypotheses through T-Test
our first hypothesis (H1) that is, the declining
productivity of handloom industry is caused by Factor-1: Weavers do not get quality raw
simultaneous activation of internal and external materials at right time and right price
forces.
The hypothesis is accepted, as probability (.000) is
Extracted Factors under H1: less than the significance level (.05). So we can
• Weavers don’t get quality raw materials conclude that weavers do not get quality
at right time and right price raw materials at right time and right price. (See-
• Government supports to Handloom table:1)
Industry are not sufficient and effective.
• Promotion of handloom products is not Factor-2: Government supports to Handloom
effective. Industry are not sufficient and effective
• Weavers have skill deficiency.
• High level of skill is needed to produce The hypothesis is accepted, as probability (.000) is
handloom products. less than significance level (.05). So, we can
• Weavers Association is not efficient. conclude that Government supports to Handloom
• Production of handloom products is not Industry are not sufficient and effective (See
sufficient to meet demand table: 2).
6
Handloom Industry on the Way of Extinction
Factor-3: Promotion of handloom products is less than significance level (.05). So, we can
not adequate conclude that high level of skill is needed to
produce handloom products (See-table: 5)
The hypothesis is accepted, as probability (.000) is
less than significance level (.05) So we can Factor-6: Weavers’ Association is not efficient
conclude that Promotion of handloom products is
not effective. . (See-table: 3) The hypothesis is accepted, as probability (.000) is
less than significance level (.05) . So, we can
Factor-4: Weavers have skill deficiency conclude that weavers’ association is not efficient
(See-table: 6)
The hypothesis is accepted, as probability (.000) is
less than significance level (.05). So, we can Factor-7: Production of handloom products is
conclude that weavers have skill deficiency. (See- not sufficient to meet demand
table: 4)
The hypothesis is not accepted, as probability
Factor-5: High level of skill is needed to (.423) is greater than the significance level (.05).
produce handloom products So we can not conclude that Production of
handloom products is not sufficient to meet
The hypothesis is accepted, as probability (.000) is demand. (See-table: 7)
We have extracted seven factors from the factor H2: Weavers are suffering from inadequate
analysis; moreover, with these factors, there are contemporary technology.
also some significant factors that are also H3: Weavers face scarcity of working capital.
important to find out the reasons for which the H4: Existing distribution channel of handloom
Handloom industry of Bangladesh is now on the products is not efficient.
way of extinction. So, in the following, we will H5: Handloom industry faces intense competi-
analyze these factors. tion from mill and power loom sector.
Testing of other core hypotheses: conclude that weavers are suffering from
inadequate contemporary technology. (See
H2: Weavers are suffering from inadequate table: 10)
contemporary technology. H3: Weavers face scarcity of working capital
The hypothesis is accepted, as probability (.000) is The hypothesis is accepted, as probability (.000) is
less than significance level (.05). So, we can less than significance level (.05). So, we can
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Suntu Kumar Ghosh et al
conclude that weavers face scarcity of working monitoring cell under Handloom Board of
capital..(See-table:8) Bangladesh to monitor activities of those
wholesalers and retailers who are engaged
H4: Existing distribution channel of handloom in selling raw materials for handloom
products is not sufficient. products to prevent any unfair advantage.
In addition, all tax and levies should be
The hypothesis is accepted, as probability (.000) is waived on all kinds of raw materials
less than significance level (.05). So, we can which will ensure the right price.
conclude that existing distribution channel of
handloom products is not sufficient. (See-table:9) • We have found that weavers suffer from
inadequate contemporary technology. So,
H5: Handloom industry faces intense government should take necessary steps
competition from mill and power loom to make available these technologies in
sector. local market and should waive all taxes
on these technologies so that weavers can
The hypothesis is accepted, as probability (.000) is
afford these technologies.
less than significance level (.05). So, we can
conclude that handloom industry faces intense
• Another major finding is- weavers suffer
competition from mill and power loom sector.
from scarcity of working capital. Most of
(See- table: 11)
the time, weavers acquire their working
capital from their own money and
VI. MAJOR FINDINGS sometimes they acquire capital from
various institutions like govt. banks,
• Weavers do not get quality raw materials
private banks and some other financial
at right time and right price.
institutions. Both government and private
• Government supports to Handloom sectors should work to solve this problem
Industry are not sufficient and effective. of working capital.
• Promotion of handloom products is not
effective. • We have found that high level of skill is
• Weavers don’t have skill deficiency. needed to produce handloom products,
• High level of skill is required to produce but there is no development program for
handloom products. weavers. So various specialized trainings
• Weavers Association is not efficient. program should be launched for weavers
• Production of handloom products is that will keep them updated. Both private
sufficient to meet demand. and public sectors can work for this.
• Weavers are suffering from inadequate
contemporary technology. • We have found that government supports
• Weavers face scarcity of working capital. to this industry are not sufficient and
• Existing distribution channel of handloom effective. Government should be more
products is not efficient. responsible and should provide more
• Handloom industry faces intense policy support to save this ancient
competition from mill and powe industry. Our neighboring county, India,
provides approximately 20% incentives to
VII. RECOMMENDATION their handloom industry and these create
problems like lots of handloom products
After analyzing our all-major and associated enter in our market through illegal ways
findings, we recommend the following steps, as these products are cheaper than our
which we believe, will provide a direction for local products. To eliminate this problem,
further improvement of this sector. government can provide incentives to
those weavers who produce those
• We have found that weavers don’t get handloom products which have high
raw materials at right time and at right demand in national and international
price. In this case, our recommendation is market, such as Sharee, Lungi, Bed sheet
that government should have a etc.
8
Handloom Industry on the Way of Extinction
• We have found that existing promotional Asian development Bank (ADB) “Strategic Issues
campaign is not adequate. So intensive and potential Response- Small and medium
promotional programs like trade fairs, Enterprise Development and export
public relations, sales promotions and expansion”, Dhaka-2002.
advertising should be undertaken.
Bakht , Z (1998) “Jobs opportunities and Business
• We have found that handloom industry Support (JOBs) Programm”e: Growth
faces intense competition from mill and potentials of small and Medium Enterprises: A
power loom sector. So government can Review of Eight Sub- sectors in Bangladesh,
create a quota system for handloom in Bangladesh, , BIDS, for JOBS Sub-sector
industry, under which, some special Study.
products such as Sharee, Lungi, Bed sheet
etc which have high demand in national Basu, S. N, (2001). ‘Tate O Rong’, Bakshi
and international markets, can exclusively Printers: Calcutta. P- 2-12, 24, 101, 118-122,
be produced by handloom.
Chowdhury, N. (1989): “Bangladesh’s Handloom
Economy in Transition: A Case of market
VII. CONCLUSION
Unequal Growth, Structural Adjustment and
Economic Mobility Amid Laissez-faire
All recommendations are to boost up the sales and
markets”: A Synthesis The Bangladesh
market share of handloom industry in Bangladesh.
Development Studies, Vol. XVII, Nos. 2 & 1.
This industry is facing a lot of problems that have
been highlighted through our discussion and made
Mandal, Al H (1989) “ Distribution of yarn in the
necessary recommendations to bring the handloom
Handloom Sector of Bangladesh: A Further
industry at the blooming stage of development. We
Study” The Bangladesh Development Studies,
should extend our helping hand to the government
Volume XVII, Nos. 2 & 1
and NGOs to pave the way of development for our
poor weavers.
Sobhan, R. (1989) “Employment and social issues
in the Formulation of policy for the Handloom
REFERENCES Industry”. The Bangladesh Development
Studies, Volume XVII, Nos. 2 & 1.
Ahmed, M. U. (1999): "Development of Small-
scale industries in Bangladesh in the New Zohir, I. S. (1996): “An Assessment of Industrial
Millennium”: Challenges and Opportunities, Policy in Bangladesh”: What Policies are We
Asian Affairs, Vol.21, NO.1, Jan-march. Talking About? February.
9
Suntu Kumar Ghosh et al
APPENDICES
Table: 1
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Weavers dont
get raw -6.224 99 .000 -.9000 -1.1869 -.6131
materials in time
Table: 2
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Government
supports are not -9.811 99 .000 -1.0900 -1.3104 -.8696
sufficient
Table: 3
One-Sample Test
Test Value = 3
95% Confidence
Mean Interval of the
Sig. Mean
Differen Difference
t df (2-tailed) Difference
ce Lower Upper
Promotions
are not -15.626 99 .000 -1.5300 -1.7243 -1.3357
effective
Table: 4
One-Sample
Test Value =
95%
Interval of
Sig. Mean Differenc
t df (2- Difference Lower Upper
Weaver's have
-.494 99 .622 -7.E- -.3510 .2110
of skill
10
Handloom Industry on the Way of Extinction
Table:5
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
High level of
skill is needed
to produce -10.780 99 .000 -1.2600 -1.4919 -1.0281
handloom
products
.
Table: 6
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Weaver's
Association is -6.259 99 .000 -.8300 -1.0931 -.5669
not efficient
Table: 7
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Production is not
sufficient to meet -.804 99 .423 -.1200 -.4162 .1762
demand
Table:8
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig Mean Difference
t df (2-tailed) Difference Lower Upper
Weaver's faces
scarcity of -13.947 99 .000 -1.3500 -1.5421 -1.1579
working capital
11
Suntu Kumar Ghosh et al
Table: 9
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Mean Difference
t df Sig. (2-tailed) Difference Lower Upper
Distribution channel
-9.381 99 .000 -1.2000 -1.4538 -.9462
is not efficient
Table: 10
One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Suffers from
inadequate
-6.969 99 .000 -.9600 -1.2333 -.6867
contemporary
technology
Table: 11
One-Sample Test
Test Value = 3
95% Confidence
Mean Interval of the
Sig. Difference Difference
t df (2-tailed) Lower Upper
The Industry
faces
competition
-13.709 99 .000 -1.4500 -1.6599 -1.2401
from mill &
powerloom
sector
12