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A study commissioned by the textile ministry on hank yarn, which is used for handloom production, found high lead time for its delivery by the National Handloom Development Corporation, suggesting that NTC mills with idle capacity can be roped in to make the yarn.
One of the findings is that on an average, a total of 327.71 million kilograms of cotton yarn across all counts is required by the handloom sector for yearly production.
A lead time is the latency between the initiation and execution of a process.
"The major concern of the stakeholders is lead time for the delivery of hank yarn. The stakeholders suggested that NHDC should operate with a minimum inventory model to facilitate immediate supply of hank yarn for the regular variety of count demanded in the cluster area," the study report submitted by Technopak to the ministry said.
Besides, the surveyed stakeholders highlighted that the monthly quantity quota of hank yarn -- a weaver can avail the 10 per cent subsidy on hank yarn through NHDC -- is not sufficient for their monthly requirement.
However, most of the stakeholders surveyed are of the view that the hank yarn is available with adequate quantity for their requirement. The stakeholders are getting the yarn from various channels such as open market traders, societies, yarn depots, NHDC and also directly from mills.
The Hank Yarn Packing Notification (HYPN) was institutionalised in 1974 by the central government under the provisions of the Essential Commodities Act to facilitate the raw material access of handloom weavers at a reasonable price.
The HYPN 1974 stipulated that every cotton and viscose yarn manufacturing unit should pack 50 per cent of yarn produced for domestic deliveries in hank form. Later, it was amended in 2003.
The spinners surveyed are of the view that they are willing to pay a direct cess of reasonable percentage or value if the HYPN can be withdrawn completely.
The representatives of mill associations such as SIMA and TSMA suggested that in lieu of the obligations, which was to ensure availability of hank yarn to end consumers, a weaver welfare fund of reasonable value can be directly given to the ministry of textiles.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)