Gadag handloom cluster transforming with changing times

Gadag cluster is a famous cotton trading centre for Jayadhar variety of cotton. It has also occupied a significant place in the handloom industry of Karnataka. There are about 3,600 active working handlooms in the cluster. A round 10,000 people are depending in this industry for their livelihood. The cluster is also very much popular for its traditional product called Gaadi Dhadi Sarees .

History of the Gadag handloom cluster shows the rise and fall of products and goods manufactured in the past years. Even the products manufactured here have been changed from ordinary cotton sarees to mercerized cotton saris and high quality of silk saris. Today more than 50% of the production is only of cotton saris. Though the profit margin is meager in cotton saris, but it enjoys better demand compared to silk saris.

These "Gaadi dhadi" traditional saris are largely worn by women of north Karnataka and some parts of Masharastra. These people prefer these saris for almost all their cultural and traditional functions because of its combination of harmonious colours, quality and richness.

The core cluster actors are small weavers, weavers who are job workers, businessmen weavers, and small handloom production units, KHDC Ltd and the Handloom cooperative societies. Apart from weavers, skilled designers are also available in the cluster. The local designer needs adequate training for the up-gradation of design development to meet the present market needs.

Majority of the handlooms in the cluster are working under the patronage of the KHDC. The handloom weavers who work for KHDC produce furnishing fabrics, terry towels, bedsheets, suiting, shirtings, floor coverings, tablemats, etc. The other weavers in the cluster limit themselves to producing silk, silk blends and cotton traditional saris.

Almost all the weavers in the cluster are depending on job work. The weaver working under KHDC will get raw materials from KHDC and they after weaving the materials hand it back to the KHDC. The weavers, who get the raw materials from cooperative societies, produce for the respective cooperative societies.

The weavers under the master weavers to their master weavers, the weavers of khadi board to their respective khadi board. These weavers are paid the conversion charges on piece rate basis. Only the small weavers do their business on their own. The KHDC and Khadi Board market their products through their chain of sales outlet and directly to different govt institutions. The cooperatives and the small manufacturer weavers will supply their goods to local retailers and wholesalers.

The small weavers sell their products in the local market directly to the consumer or to the local trader. It has been observed in the value-chain analysis that the local traders enjoy greater margin than the others. But after proper intervention for cost reduction in inputs through bulk purchase, improved processing methods, upgrading designs and introduction of direct selling mechanism, instead of the trader, this has helped increase the earnings and margins of the weavers.

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Insight of Gadag Handloom Cluster

Majority of the Handlooms in the Cluster are working under the patronage of the KHDC. The Handloom weavers who work for KHDC produce furnishing, Terry towels, Bed sheets, Suiting, Shirting, floor coverings, tablemats ,Cut shuttle durries, etc. The remaining weavers in the Cluster limit themselves in producing silk, silk mix and cotton traditional saree, almost all the weavers in the cluster are depending on job work. The weavers working under KHDC get raw materials from KHDC and they surrender their woven fabrics to the KHDC, The weavers who get the raw materials from cooperative societies produces for respective cooperative societies, the weavers under the master weavers to their master weavers, the weavers of khadi board to their respective khadi board. These weavers are paid the conversion charges on piece rate basis. Only the tiny weavers do their business on their own.

The KHDC and Khadi Board market their products through the chain of its sales outlets, and directly to different government institutions. The cooperatives and the small manufacturer weavers supply their goods to local retailers and wholesalers. The tiny weavers are selling their products in the local market directly to the consumer or to the local trader.

It has been observed in the value chain analysis that the local traders enjoy greater margin than the others. But proper intervention for cost reduction in inputs through bulk purchase helps to improve pre-processing methods. Upgrading the designs for value addition of the product, introduction of direct selling mechanism instead of the trader will help increase in the earning of the weavers and the margins of the entrepreneurs.

The linkages of the core actors with most of the public service providers are very weak. With the exception of the weaver service centre and the Handloom and textiles Department linkages with other service providers have to be strengthened.

Since all the support institutions are existing in the cluster there is large scope for intervention in all the major areas such as design development, value addition to product, up gradation of technique, product diversification, establishment of CFC, Common marketing facility, Brand Equity etc.

Gadag Handloom Cluster

Gagad Handloom cluster is a famous cotton trading centre for Jayadhar variety of cotton. It has occupied 70kms surrounding area of Gadag.

History of the Gadag Cluster shows the rise and fall of its products. Even the products manufactured have been changed from ordinary cotton saris to mercerized cotton saris and high quality of silk saris. Today more than 50% of the production is only of the cotton saris. Though the profit margin is meager in cotton saris but enjoys better demand compared to silk saris. These "Gaadi dhadi" traditional saris are largely worn by women of north Karnataka and some parts of Maharashtra. These people prefer these saris for almost all their cultural and traditional functions because of its combination of harmonious colors, quality and richness.

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