Title : Traditional Industry in the New Market Economy
Authors : Kanakalatha Mukund and B Syama Sundari
Published by : SAGE Publications India Pvt Ltd
M-32 Market, Greater Kailash–I, New Delhi - 110 048
Publication Date : Year 2001
Pages : 170 Price : Rs. 395/-

Have the traditional enterprises been swept away by the winds of Economic Liberalization ? Are we in a position to save our dwindling heritage of rural handicrafts – like the handloom industry? The answers to these are provided in the new book by Sage Publications, titled ‘Traditional Industry in the New Market Economy’.

Though the focus of the book is on the cotton handlooms of Andhra Pradesh, the authors explode the myth that the traditional industry is dying or dead. In fact they provide ample evidence that the market for handlooms (in this case) is actually growing. They maintain that the failures of this sector can be laid at the door of official agencies that have not been able to market the products effectively. The politicization of weavers’ cooperatives is yet another stumbling block in terms of marketing the product. The authors have even offered a novel policy framework with the accent on providing autonomy to weavers’ cooperatives as well as restricting the government to performing the role of a facilitating agency.

The importance of non-farm traditional enterprises in the rural economy could hardly be overstated as India, in spite of being an agrarian country, is not able to provide more than 100 days of farm work to the agricultural labour in one full working year of 300 days. In fact, the poor in this subcontinent are surviving due to their self-employment through free enterprises and not the government welfare. Coming back to the handloom sector, it gives employment to the largest number of people next only to agriculture. The importance of this activity also lies in the fact that it is a home-based activity providing self-employment to skilled workers. Apart from being an employment provider, this activity needs very little capital investment and is extremely efficient in its use of energy, a scarce resource in India. Taking the larger picture, the economists keep hampering on the fact that handloom is no match for power looms in terms of productivity and economic profitability. The authors argue that this so-called profitability is, in fact, ‘private profitability’. Mahatma Gandhi used to say, " I believe in production by the masses and not mass-production." Our country needs more and more work for the teeming millions who are subsisting below the poverty line. So, the power looms may have benefited the rich but they turn out to be less desirable in terms of ‘social profitability’.

The authors emphasize that not all benefits can be quantified in economic terms either. Field surveys reveal that in spite of their relatively low incomes, the handloom weavers live and work with a sense of dignity and pride in the work that they are doing.

Handloom weaving is also of historical importance as it represents a tradition of skill and aesthetics, which is an inherent and integral part of our cultural heritage. Thus, the authors conclude, the continued survival of handloom weaving is vital from an economic as well as a larger perspective.

The book provides an in-depth study of the three main actors in the handloom sector – the weaver, the trader and the government. It presents the interaction between these three key players through an analysis of the relation of production, the markets and the marketing channels. It explodes the prevalent myth that handloom weaving is inherently non-viable and non-competitive. Instead, the authors demonstrate that it is a dynamic sector (and not a dying craft) with great market potential, given its links with national and international markets.

This book is an important document for readers from the fields of economics, rural development, sociology and industrial development. It is also a must for planning bodies and official agencies entrusted with the task of encouraging traditional industries. q