# Kannur handloom weavers unpaid Rs 8.5 crore for eight months 2026-08-07T11:48:21+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet On National Handloom Day (August 7), weaving sheds across Kannur were silent, a stark contrast to the celebrations. The district, once called the Manchester of Kerala, is now fighting for survival. Nearly 3,000 handloom workers have not received wages for eight months, with cooperative societies awaiting about Rs 8.5 crore from the government’s school uniform scheme. Production incentives introduced in 2017 have been unpaid since 2019, with arrears estimated at Rs 20 crore in Kannur alone. Kerala’s handloom workforce has shrunk from 25,000-30,000 to around 18,000; cooperative societies fell from 600 to 450. Rising yarn costs and GST burdens have compounded the crisis, while power looms dominate exports. Industry representatives say the system, not the product, has failed. The government procures uniforms at 2019 rates despite soaring costs, and societies absorb the difference. Meanwhile, private exporters have shifted to power looms because of cost and speed. However, some see hope: the Indian Institute of Handloom Technology, Kannur, believes the sector can survive as a premium craft through customisation and designer brands. ## Coverage - thehindu.com Tags: cooperative societies, handloom, Kannur, school uniform scheme, wages, weavers Canonical: https://indianopinion.org/kannur-handloom-weavers-unpaid-rs-8-5-crore-for-eight-months/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/kannur-handloom-weavers-unpaid-rs-8-5-crore-for-eight-months/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.