Kannur handloom weavers unpaid Rs 8.5 crore for eight months
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…

The Story in Brief
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.
The Indian Opinion
The narrative that handloom is dying because it is outdated misses the point. Kannur’s weavers are not victims of technology but of a government scheme that promised steady work and then stopped paying on time. Eight months without wages is not a market failure; it is an administrative collapse. The real test now is whether the state will clear the pending Rs 28.5 crore (uniform arrears plus incentives) and revise procurement rates to reflect current yarn and labour costs, or leave another traditional industry to fade into nostalgia.
Source: thehindu.com
This story was synthesised by AI from the source linked above.



















