NAGPUR, Nov 11: Handloom weavers' cooperatives and handloom corporations in several major states in the country will be denied subsidy worth around Rs 60 crore because the Union textiles ministry was not warned in advance by the Finance Ministry about the withdrawal of the subsidised Janata Cloth Scheme.

The affected states include Maharashtra, Gujarat, Rajasthan, Haryana, Uttar Pradesh, Madhya Pradesh, Karnataka, Bihar, West Bengal and Assam. In the absence of advance information, the weavers produced the cloth under the scheme and handed it over to the respective corporations who now have no money to pay them.

According to weaver leader, Mannu Datta, of the Hind Mazdoor Kisan Panchayat, more than 20 lakh weaver families across the country will face starvation owing to the government's bungling.

The handloom weaver can never compete with the organised mills in the open market. With a view to helping weavers find a slot in the market and provide employment, the subsidy scheme on Janata Cloth was started in 1977. Under the scheme, the Centre would arrive at production estimates in proportion to the number of handlooms operating in respective states. After the production target was reached, the Centre would make the subsidy amount available to states in instalments.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.