• After World War II, there was a shortage of mill-made yarn, which was crucial for the handloom industry.
• The Nizam’s government implemented a coupon system, where only a limited amount of yarn was provided each month in exchange for coupons.
• During this period, the middlemen and traders involved in the yarn supply chain adopted inefficient practices, and the artificial yarn shortage caused significant difficulties for handloom workers.
• In response to this, Sri Konda Lakshman Bapuji took the initiative to establish handloom cooperative societies with the goal of ensuring that handloom workers received sufficient yarn.
• The idea was to set up a central handloom association to bring the wholesale yarn business under the control of local communities.
• However, the Nizam’s government did not approve of these proposals to establish cooperative societies.
• After the police action and the merger of the Nizam’s state with India on September 17, 1948, the new government allowed the registration of handloom societies.
• In 1949, the establishment of handloom cooperative societies took place, with significant efforts from Sri Guntaka Narasayya Pantulu and Sri Konda Lakshman Bapuji to promote these new organizations.
• Fifty new societies were formed, and in 1954, the Hyderabad Weavers’ Association, under the name “Haiko,” was established as a central organization.
• Sri Konda Lakshman Bapuji served as the president of the Haiko association, with Sri Guntaka Narasayya Pantulu as the vice-president.
• The central organization (Haiko) began receiving yarn directly from mills, allowing handloom workers to access enough yarn through the cooperative societies.
• Sri Bapuji traveled across districts with seven-colored flags, promoting the establishment of cooperative societies and spreading the message of economic empowerment.
• Villagers, seeing these seven-colored flags, recognized them as symbols of a new economic revolution.
• As the handloom societies strengthened, they began to engage in textile trade, with the societies purchasing fabrics, which were then bought by the central organization.
• The Haiko association started its own fabric distribution program, producing textiles based on market demand.
• In 1956, a national-level cooperative society was proposed, and a meeting was held with leaders from across India, including Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Bihar, Bengal, Maharashtra, Haryana, and Punjab.
• The decision to establish a nationwide handloom cooperative society was made at a meeting in Benaras, leading to the registration of the All India Handloom Weavers’ Fabrics Cooperative Society in Bombay (Mumbai).
• Sri Machani Somappa from Rayalaseema, Emmiganur, was elected president of this central body, while Sri Konda Lakshman Bapuji was appointed to the board of directors.
• Under the leadership of Sri Konda Lakshman Bapuji, the Indian Prime Minister, Jawaharlal Nehru, and Finance Minister, Krishna Menon, were approached to address the challenges faced by the handloom industry. A special scheme was requested to support the sector.
• As a result, a “cess” tax was levied on mill-produced textiles, and the revenue generated was allocated for the protection, development, and welfare of the handloom industry.
• To facilitate this, the central government established a National Handloom Board, with Sri Konda Lakshman Bapuji as a member.
• In addition to the central body, the government decided to set up handloom cooperatives at the state level as well.
• Funds were allocated from government sources and banks to support the handloom industry at the village level.
• However, the handloom societies faced financial decline due to the regulatory advantages given to mill-produced textiles.
• In an attempt to make handloom textiles more competitive, the government introduced subsidies on handloom fabrics to counter the lower prices of mill-made textiles.
• Unfortunately, some cooperative leaders misused these subsidies, leading to corruption.
• With unnecessary interference from government officials and the negative influence of some society leaders, the handloom cooperative movement began to decline.
• Today, millions of handloom workers have lost their livelihoods, and many have faced hunger, starvation, and even suicide.
• The absence of genuine support and the lack of unity within the cooperative movement has further exacerbated the challenges faced by the handloom sector.
