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CHAPTER 4
HANDLOOM WEAVERS' COOPERATIVE SOCIETIES - A PROFILE
Introduction
In TamJlnadu, Weavers' Cooperatives have a federal
system with two-tier structure consisting of Primary
Weavers' Cooperative Societies at the base and the Apex
Handloora Weavers' Cooperative Society (the Cooptex) at the
State level. Primary Weavers' Society, being, the production
cum sale unit Is established in areas where there is
concentration of weavers. On the other hand, the state level
society, being a federal organisation concentrates on
marketing of the products of its affiliates besides
assisting them for better performance. This chapter presents
a brief note on the weavers' cooperatives in Tamilnadu, in
such aspects as constitution and management, capital
structure, loom coverage, production and sale of hand! oorn
fabrics and financial performance. This will serve aa a
background for analysing their marketing strategies.
Objectives
Since Primary Weavers' Cooperative Societies (PUCSs)
are production - cum - sale units, they have aa their
objectives: Purchase of raw materials and appliances and
distributing them to member-producers for converting them
into finished products o£ required form and quality;
arranging for the marketing of finished goads to the best
advantage of the members and undertake such other activities
as may be conducive to the promotion of handloom industry in
general and the economic conditions of the weavers in
particu]ar.
The Cooptex has its principal objective of organising
handloom Industry on a commercial basis and expansion of the
market for handloom fabrics besides provision of other-
facilities to the members of affiliated primary societies.
In pursuance of the above objective, the Cooptex performs
various functions viz., purchase of raw materials and
appliances required by affiliated societies, purchase of the
finished products of the affiliated societies for sale,
undertaking pre-looming and post-looming works In connection
with handloom weaving, advising affiliated societies for
production of improved and easily marketable patterns and
designs of fabrics, and undertaking such other activities as
may help the development of handloom industry and improve
the economic conditions of weavers.
78
Age of the Primary Weavers' Cooperative Societies
The average age of PWCSs was 37.5 years. The number of
] ongstanding societies, i. . e, between 4 5 and 60 years was
A" %•
larger under category *R' followed by NC . It may be
Inferred that most of the silk weaving societies (70 per
cent) were of" recent origin when compared to other
categories. (See table 4.0.1) This reveals that there had
been a qualitative change in weavers' cooperatives; and more
number of a IIk weaving societies are coming up.
Membership
The PWCSs have two types of members viz., 'A' class and
VB' class. Any weaver above eighteen years of age who Is
competent, to contract, and residing within the jurisdiction
of the society Is eligible for admission to " h' class
membership. Minors who own looms, may however, be admitted
as 'B' class members through their legal guardian and such
members have right to enjoy only the services of the
society. Since State Government is the patron of the
For the. purpose of analysis, all the Primary Weavers' Cooperatives were categorised on the basis of their main product(a), that have formed not less than one-third or BO per cent to the total value of production of the society. Primary Weavers'Cooperatives wherein silk fabrics was the main product were categorised as VA" and those which had carpet/made-up fabrics were classified as SB' and those with other than silk and carpet/made-up fabrics were regarded as *C'.
79
Table 4.01
Age o£ PUCSs
/
cooperative movement in the state, memberahip o£ the state
government in PUCSs is a common feature.
The average membership of a PUCS during the study
period was 452. The average membership of a society under
eategoryvA' was higher (623) than other societies. During
the study period, the membership of PUCSs had been growing
at an average rate of 1.24 per cent (Table 4.02). This
80
Table 4.02
Membership in PUCSs
suggests that the membership increased steadily and the silk
weaving societies were able to attract more members.
The membership of the Cooptex consisted of all PUCSs,
Cooperative Spinning Mills, Other Cooperative institutions
engaged in the production, distribution or sale of raw
materials required by handloom weavers and the Government of
Tamilnadu. These institutions are admitted as lA' class
81
members and few individuals who are promoters of the
societies as " B' class members. The PUCSs constituted 93.18
per cent of the membership; and the growth in membership of
the Cooptex was mainly due to increase in the number of
PUCSs which recorded an average rate of 1.11 per cent during
the study period. This reveals that the primary weavers'
societies had been newly organised in the State(Table 4.03).
Looms Coverage
There were 4.28 lakh handlooms in Tamilnadu, which were
concentrated in a few districts. The districts such as
Salem, Periyar and Chengleput had 10 to 15 per cent of
handlooms each, while Kamarajar, Colmbatore, Madurai, South
Arcot , North Arcot and Trichy districts had 5 to 10 per
cent each of total looms in the state. The districts such as
Anna (Dindigul), Madras, Pudukottai , Tanjore, Naget-eoil and
Dharmapuri had less than 5 per cent each. So far as looms
coverage o£ the Cooptex is concerned, 2.S5 lakh looms had
been brought under its fold, of which nearly 28,000 looms
were idle . Thus the effective cooperative coverage of
handlooms in the state was 57.85 per cent during 1989-90.
1 Government of Tamilnadu, Handlooms and Textiles: Policy
and Programmes 1990-91, Op.cit., p.6.
82
Tattle 4.03
Membership of the Cooptex
So fa r as t h e PUCSs a r e c o n c e r n e d , t h e a v e r a g e number
o£ handlooms p e r s o c i e t y in t h e a r e a o£ o p e r a t i o n was 3764,
o£ which o n l y 14 .23 p e r cen t had been b rough t under t h e
83
cooperative fold. Of the total number of looms covered, only
74.15 per cent were active looms. Further, among the
different categories of societies, "A' category societies
had largest coverage (57.26 per cent); whereas the " B'
category societies had greater proportion of active looms
('70.54 per cent). The societies under category lC were
found to be weak both in respect of coverage of looms and
active looms (Table 4.04).
Therefore, it may be inferred that though majority of
looms of the weavers' cooperatives were 'active' the mixed
fabrics weaving societies had poor looms coverage and high
* percentage of idle looms. Thus silk weaving societies had
shown greater potential for growth than the rest.
Funds
The main source of finance are share capital, deposits,
borrowings, and retained earnings. PUCSss receive share
capital from members including individual weavers and the
State Government, thrift deposits from members, and other
deposits from traders/merchants and non-members. Besides
their retained earnings, they borrow from central
cooperative banks for their current capital requirements and
* Handlooms that are operated for less than 90 days in a
year are treated as idle looms.(This is the norm of the Director of Handlooms and Textiles, Madras).
84
Table 4.04
Looms Coverage of PHCSs - Average frota 1964 - 85 to 1988 - 89
from s t a t e government for- m o d e r n i z a t i o n of looms, and such
o t h e r b l o c k c a p i t a l r e q u i r e m e n t s .
During the p e r i o d under- r e v i e w , on an ave rage 82.53 per
c e n t and 80.26 pe r c e n t of c a p i t a l in s o c i e t i e s under-
8 5
category "C and 'B' respectively were in the form of
borrowed capital; whereas it was only 57.94 per cent in "A'
category societies. In absolute terms also, the total
capital per society under category VA' was the highest
(Rs.73.12 lakh) followed by category 'B' (Rs.63.83 lakh).
The societies under 'C category had much smaller capital
base (Re.14.98 lakh). (Table 4.05) This shows that silk
weaving societies had a much stronger owned capital base
coupled with larger deposits as compared to other categories
of societies. Thus, it may be inferred that silk weaving
societies have greater potential for generating larger
quantum of revenue and augmenting their owned capital base
than the others.
So far as the Cooptex is concerned, the authorised
share capital is Rs.50 crore made up of 100 lakh shares of
Rs.50/- each. Of these shares, not more than 10 per cent to
the value of Rs. 50 lakh is to be allocated to other
cooperative institutions, other than weavers' cooperatives
and the Government of Tamilnadu. As per bye law, the total
borrowings of the society should not exceed ten times the
paid up share capital and the reserve fund and further, the
total sum so borrowed should at any time not exceed the
value of yarn and the finished goods in the custody of the
society. The society borrows fund from the State Government,
86
Table 4.05
Capital Structure of PWCSs - Average per society (1984 - 85 to 1988 - 89)
(Rs. in Thousand)
Figurei in parentheses indicate percentages to column tota l .
t h e S t a t e C o o p e r a t i v e Bank, t h e NABARD, Commercial Banks and
o t h e r p u b l i c f i n a n c e c o m p a n i e s / c o r p o r a t i o n s . B e s i d e s , i t
a c c e p t s d e p o s i t s from p r i m a r y s o c i e t i e s and t r a d e r s .
87
During the year 1983-84, the total capital of the
society was Rs. 6899.30 lakh which rose to Rs.10,986.15 lakh
in 1988-89; the compound growth rate being 8.06 per cent.
With regard to composition of capital of the society, during
the period under review, the borrowings of the society
formed 74.07 per cent and the share capital 22.76 per cent.
Other items such as deposits and reserves formed less than 2
per cent each. (Table 4.06). A substantial portion of the
limited share capital, as much as 93.99 per cent was
subscribed by the State Government. The share capital
subscribed by Cooperative Spinning Mills, other cooperative
institutions and 'B' class members formed a very
insignificant percentage to total paid up capital of the
society. (Appendix 2.01)
It is therefore, inferred that the proportion of
borrowed capital to the total capital was high in primary
societies as well as in the Cooptex and the financial
participation of the State Government either as loan or aa
share capital contribution to weavers' cooperatives was
substantial.
88
89
Management
So far as the Cooptex is concerned, the management as
per its bye law vests in a Board consisting of 15 members.
The manner of constitution of the Board (Appendix IV) would
reveal that it is dominated by bureaucrats nominated by the
State Government, rather than by elected representatives of
various interest groups.
The members of the Board shall elect from among
themselves a President, a Vice-President and a Treasurer.
The administration of the affairs of the Cooptex vests on
Executive Committee comprising the President, the Vice-
President, the Treasurer, the Managing Director, the
Director of Handlooms and Textiles,the Registrar of
cooperative Societies, One representative of the Tarnllnadu
State Cooperative Bank and three of the representatives of
PUCSs.
As on 15.3.1971 the Board of Directors was superseded
by the Director of Handlooms and Textiles and the management
of the affairs of the Cooptex was entrusted to the Special
Officer under section 72 (i) of the Tamilnadu Cooperative
Societies Act 1961, who is functioning under the control of
the Director of Handlooms and Textiles, Tamilnadu.
So far as PUCSs are concerned, the management as per
bye-law vests in a Board consisting of seven to twelve
90
members of whom atleast five to seven members shall be
weaver members. The Government or any authority specified in
this behalf by the Government, may nominate a representative
on the Board of Management of the society till the share
capital held by the Government is retired.
The representatives of the weavers in the Board of
Management shall be elected by the general body for a period
of three years. One third of them shall retire annually from
office by rotation and the vacancies caused by the
retirement of such members shall be filled by election at
the general meeting held for the purpose. The members of the
Board shall elect from among themselves a President, a
Vice-President and a Treasurer. The administration of the
affairs of the society shall vest in an executive committee
consisting of the President, Vice-President, Treasurer, and
the Secretary.
The Board of Management of the PUCSs have also been
superseded by the Director of Handlooms and Textiles under
Cooperative Societies (Appointment of Special Officers) Act
of 1976. The management of the affairs of each primary
society has been entrusted to the Special Officer. Further,
to assist him In matters pertaining management of the
society, a President and a Vice-President have also been
nominated by the Registrar (Director of Handlooms and
91
Textiles) for a period of five years. Thus, it is a matter
of concern that the democratic system has been stifled,
giving place to the bureaucratic domination.
Organisational Structure
This Is an Important means for achieving the objectives
of an organisation. While designing the organisational
structure, due care should be taken to ensure proper
grouping of work teams and proper division of tasks and
division of authorities and responsibilities among different
1evels.
The organisational structure at the primary level is
simple and all the PUCSs have 'line' type structure
which is characterised by direct vertical authority
responsibility, accountability relationships connecting jobs
and positions at each level with those above and below it.
(See Chart 2). The organisation structure of the Cooptex
la complex; and has '"line-staff functional' type
organisational structure. Marketing function finds a
prominent place in the organisational structure as indicated
in the organisational chart 3, with appropriate territorial
divisions and functional specialisation such as
advertisement and export.
92
CHART 2
" g — w p —
9 4
The textile processing has two distinct stages,namely,
pre-looming and post-looming. In pre-looning processes,the
* yarn is made to undergo various treatments like scovering,
. , * * @ dyeing, Sizing, etc., to make it fit to put on loom for
weaving.
Post-loom processes involve ornamentation of finished
handloom cloth like printing, mercerising,* sanforcing,
polymerising,* calendering" , water repelling, fine
proofing/ smooth feel, embroidery, bead and glass work etc.
The cost of any finished product must necessarily include
the cost of both the processes, and its marketability
* .Scovering is the process of removal of all the impurities
contained in the fibres. * *
Dyeing is a process of application of colour in textile fabrics/fibre to produce uniform colouration of the entire fabrics.
@ Sizing is the process of the removal of protruded fibres
by burning out from the surface of the material or fabrics.
#T
It is a process of improving the physical properties of the cotton materials like lustre, moisture, absorption, dyeability and bulkiness. ##
It is a finishing process for removing shrinkage to the fabric so that the fabrics may not shrink at the time of use. * Polymerisation is a process of creating inter owenness to
the fabrics. a-*
It is a finishing process for improving the surface character of the fabric and to induce glossiness and lustre.
95
depends not only on its attraction in finished state but
also of its competitive production cost.
Most of the pre-loom jobs are done by weavers
themselves either individually or collectively or get: done
on payment of charges to processors. Since post-loom
processes need capital investment in the form of machines,
equipments and the like, weavers are unable to undertake
them on their own and therefore, these activities are to be
done by/through their cooperatives. It is also to be noted
that the type of activities under pre-looming and post-
looming processes needed for a fabric, vary from product to
product. Cooperatives are , therefore, expected to undertake
the above processing activities, provided such activities
ensure the advantages of cost and scale of operations so
that productivity of weavers as well as efficiency of the
cooperative could invariably be enhanced.
So far as PUCSs are concerned, some of them had their
own facilities for pre as well as post-looming processes and
some others got their processing job done by outside
agencies. Dyeing/Bleaching was the most common processing
activity needed by PUCSs (80 per cent) followed by warping
(75 per cent), printing (52 per cent) and sizing (48 per
cent). One third of the primary societies needed other-
processing activities like reeling, sanforeing/mercerlslng
96
and calendering. Majority of the PUCSs had their own
facilities for dyeing, sizing, warping and reeling while
printing, sanforcing/mercerising were got done by outside
agencies, and mostly with the help of the Tamilnadu
Cooperative Textiles Processing Mills Ltd., Erode(Table
4.07).
Raw Materials
The raw materials for the weaving Industry include yarn
made of cotton, art-silk, silk, wool and synthetic fibres,
dye-stuff, chemicals and zat-i (gold/silver fibres).
Although the proper mix of raw materials add utility to
fabrics, yarn is the major item and others give tangible
features and enhanced value to the product. As raw materials
determine the quality, cost and saleability of fabrics and
the productivity of weavers, their importance for handloom
weaving assumes greater significance. The supply of yarn and
other raw-materials, on a dependable basis and at reasonable
price, supported by other infrastructural facilities, is
perhaps the basic requisite for the sustained growth of the
handlooms.
Since cotton handlooms account for more than three
fourth of the looms in Tamilnadu, cotton yarn is the major
97
* raw material for manufacturing fabrics. Cotton yarn is
procured by the Cooptex on outright basis from 20
cooperative spinning mills, as well as the wills under the
Tamilnadu Textile Corporation and Cooperative Spinning Mills
of other states. Polyester blended and cent per cent
polyester filament yarn are procured from Pett-oflle
Cooperatives and open market, art silk from South India
Viscose and silk yarn from State Silk Marketing
Board/Corporat i on.
In as much as PUCSs are highly dispersed and located
throughout the state in remote rural areas, the distribution
of yarn by the Cooptex is not a simple task. The different
counts of hank yarn needed by PUCSs may not be available
with Cooperative uSpinnine Mills located in the respective
area wherein PUCSs exist. That means, the required counts of
yat-n available with the Cooperative Spinning Mills
elsewhere, are to be made available to needy primaries. On
the other hand, If primaries themselves are permitted to
procure yarn directly from the Cooperative Spinning Mills,
It will lead to several problems. Uith a view to regulating
* Cooperative sector requires on an average 4000 bales of
yarn per month in various counts. (See Government of Tamllnadu, Handlooms and Textllea-Pol icy and Programme 1989-90, Op.cit., p.6).
98
Table 4.07
Production Facilities in PUCSs
Figures in parentheses indicate percentages to row total.
and monitoring the production of yarn by Cooperative
Spinning Mills and distribution of the same to primaries,
the Cooptex has created a network of 21 yarn depots situated
in important weaving centres of Tamilnadu. The PUCSs place
indents for their monthly yarn requirements in advance, to
the respective yarn depots in their area. The consolidated
99
figures are sent to the office of the Director of Handlooms
and Textiles, Madras for mill wise allotment. On receipts of
allotment orders from the Director of Handlooms and Textiles,
the mills are given despatch instructions for delivery of
yarn bales to the various yarn depots. The yarn bales so
received by the yarn depots are sold to primaries baaed on
their indents. The PUCSs after remitting cost of the yarn at
the concerned District Central Cooperative Bank, take
delivery from the yarn depots. In case, the required count
of yarn is not available at the yarn depot 'no stock
certificate' is issued to PUCSs to the extent of one week's
requirement to enable them to buy the yarn from the Mills/
Open market.
The Cooptex distributed on an average Rs.3949.44 lakh
worth yarn to PUCSs which had been growing at the rate of
3.54 per cent during the period under study. Among the
various types of yarn distributed by the Cooptex (Table
4.08) as much as 74.13 per cent were in the form of cotton
yarn, 23.49 per cent in the form of polyester and l.S per
cent in the form of art silk. Till 1987-88 silk yarn was not
distributed by the Cooptex, because the silk weaving
societies themselves procured yarn directly from the State
Silk Marketing Board/Corporation. Since the Cooptex imported
silk yarn from China in the year 1987-88, it also started
100
Table 4.08
Distribution of Yarn to FMCSs by the CoopteK
(value in Rs. lakh)
d i s t r i b u t i n g them t o s e l e c t s i l k w e a v i n g s o c i e t i e s . However ,
t h e p r o p o r t i o n o f s i l k y a r n d i s t r i b u t i o n t o t o t a l was v e r y
i n s i g n i f i c a n t ( 0 . 5 6 p e r c e n t ) .
101
Similarly, dye-stuff and chemicals and zarl were not
procured by the Cooptex. PUCSs had been procuring the
required dye-stuff and chemicals from the open market and
zari from the Tamilnadu Zari Ltd.,Kancheepuram and Surat
merchants. In so far as the societies under category "A' are
concerned, 67.55 per cent of the value of raw material were
Jn the form of sari. The silk yarn procured from state
institutions and open market formed 21.2.1 per cent and 10.57
per cent respectively to the total value of raw materials.
Among other societies, 93 to 96 per cent of their raw
materials were in the form of yarn. As much as 34 to 39 per
cent of yarn requirements were met from the open market. The
value o£ dye-stuffs and chemicals constituted a meagre
percentage to the total value of raw materials in all
category of societies (Table 4.09).
It may be inferred that 5 5 to 61 per cent of the
material requirements comprising mainly yarn, in respect of
societies other than silk weaving societies were met by the
Cooptex, while only less than 25 per cent of the requirement
of silk weaving societies were met by the above source.
Thus, the private merchants/dealers of raw materials still
play a significant role in catering to the raw-material
requirements of PUCSs in Tamilnadu particularly the silk
102
Table 4.09
Procurement of Raw aaterials by PWCSs
(average from 1984-85 to 1968-89)
(Rs, in OOO's)
103
weaving societies. The role o£ the Cooptex was conspicuous
by its absence in respect of sari, dyes and chemicals.
Production/Procurement of Fabrics
The PUCSs procure the entire fabrics that are produced,
out of the yarn and other raw materials supplied by them to
their weaver members. While supplying yarn and other raw
materials, PUCSs see that the value of such raw materials do
not exceed the value o£ share capital contributed by the
members. The PUCSs give detailed instructions and product
specifications on warp, weft, pattern, design etc., while
issuing, yarn to each member-weavers. Usually, 20 to 4 5 days
are allowed to complete weaving. An allowance of 5 to 10 per
cent for warp and 2 to 5 per cent for weft is normally
provided for yarn waste. For extra work design, additional
yarn is given as per actual requirements. Uhen a weaver-
delivers the woven cloth to the society, they are inspected
before acceptance, so as to ensure that the fabrics are of
acceptable quality and are free from defect. Since
primary societies have no scientific instrument at their
* Quality is judged on the basis of picks, width and length
of a piece.
* * Fabric's defects include bad selvedge, damaged design in
borders, missing ends, less picks, uneven dyeing, shortage in width due to the usage of inferior reeds, defective design etc.
10 4
1 0 5
disposal for accurate and objective assessment of" yarn
quality, they adopt very loose 'quality tolerance limit'.
Based on the fabrics pattern and design and amount of labour-
involved, wages are paid as per the norms of the Director of
Handlooms and Textiles.
The PUCSs undertake production of fabrics against
production orders of the Cooptex, merchants/tradera and in
few cases consumers. In the absence of such production
orders, they also produce fabrics in anticipation of the
markets. On an average Rs.13.65 lakh, Rs.4.84 lakh and
Rs.1.26 lakh worth of fabrics were produced per month by
each society under category "A' , 'B' and "C respectively.
The growth rate was the highest (13.48 per cent) among the
societies under category 'A' followed by societies under 'B'
(2.54 per cent) and 'C (0.96 per cent) categories during
the period under review. Of the total production in these
societies, the proportion of 'production to order' was the
highest ( 65 per cent) In societies under category 'B' while
it was 50 per cent in 'A' category societies, and 40 per
cent In '" C category societies (Table 4.10).
Mostly PUCSs found no problem in the disposal of
fabrics 'produced to order', unlike in the case of fabrics
that were produced in anticipation of the market.
106
Since, the Cooptex is the nodal agency for the
cooperative hand loom industry In Tamllnadu, the
responsJbi3ity of procuring quality products with reasonable
price lies In its procurement function. Tt is obliged to
procure not leas than 50 per cent, of the production of
PUCSs. The important seasons for procurement are X-tnas,
Deepawali and Pongal, and during such seasons it helpa PUCSs * •
to liquidate their stocks. As regards Janatha and Non-
Janatha polyester fabrics, the entire production of PUCSs Is
procured by the Cooptex.
The State is divided Into 12 regions to facilitate
easy procurement. Among these, Non-Janatha cotton fabrics
were available from as much as 3 0 regions whereas non-
janatha polyester and Janatha items were available from S
regions, and silk from 6 regions only. The Cooptex has
procured on an average Rs.6954.85 lakh worth hand loom
fabrics which works out to Ra.579.57 lakh per region. It has
recorded an annual growth of 8.52 per cent during the period
under review. Of the total procurement, non-Janatha cotton
* Janatha fabrics refer to a] 3. fabrics that are produced
under Janatha/Susman cloth scheme of the government. These fabrics are 3ow quality - low price units. For production of every one sq.tntr. cloth Ra.2.75 Is given as production subsidy by the government; but no rebate Is allowed on sales to consumers. The product materials Include polyester/ blended yarn, cotton, art silk and do not include silk yarn.
107
Table 4.11
Product His of Fabrics Procured by the CoopteK
(Rs. in Lakh)
108
fabrics formed the largest single component (42 pet- cent)
while Janatha items formed 30.13 per cent. Silk and non-
janatha polyester constituted only 15.33 per cent and 12.52
per cent respectively of the total procurement. However, the
growth rate in respect of silk and janatha fabrics was much
faster than the procurement of Non-Janatha polyester and
Non-Janatha cotton fabrics (Table 4.11). Immediately after
procurement, necessary efforts were taken to dispose the
fabrics in the market. (See Chapter 5)
Therefore, it may be concluded that order based
production was higher among carpet/made-ups weaving and
mixed fabrics weaving societies followed by silk weaving
societies in Tamilnadu. Janatha fabrics and non-janatha
cotton fabrics constituted a major chunk in the total
procurement of the Cooptex. Besides, the Cooptex has
procured 100 per cent of Non-Janatha polyester fabrics of
PUCSs in Tamilnadu.
Placement of Production Orders with PWCSs
Aiming at stabilising and streamlining the production
operations of PWCSs uniformly throughout the year and
providing regular and continuous employment to weavers, the
Cooptex procures fabrics once in three months from PWCSs. It
has introduced the production plan concept wherein
109
JMPrcWMIIIMWW^I'-.^
production orders are prepared in consonance with specific
sales periods, say, Deepawali, Pongal, Hand loom Ueek
festival, etc. The Cooptex arrives at the net requirements
for the current seasonal sales on the basis of the previous
season's product-wise sales which makes Jt possible to
correlate the sales with the existing stock. This kind of
planning helps to identify and produce only those products
which would sell in the market.
The Sales Manager of warehouses are requested to select
the designs and colour combination in the various items as
per the requirements of the target market. These designs are
given in the form of fabrics samples to the PUCSs by the
warehouse managers retaining counter samples. The PWCSs
arrange production as per these samples in consultation with
the manager and production supervisors concerned, if any.
The PUCSs will have to arrange production only according to
these designs, failing which, the fabrics will not be
procured from them.
At the time of procurement, the warehouse mangers visit
the PUCSs along with Manager (design and production). The
production supervisors are expected to ensure that the goods
as per the selected design are packed and despatched to the
warehouses concerned. This arrangement enables the selling
110
Table 4.12
Met Working Results of the Cooptex
units of the C.ooptex to get required type o£ goods which
will avoid stagnation of goods, and also increase the
ultimate sales value. Uhlle arriving at the quantity to be
ordered in each variety of fabrics, the saleability and the
stock of the last day of preceedlng month are being taken
into consideration.
Net Working Result
Cooperatives do not aim at profit. However, they are
expected to earn profit sufficient enough to make reasonable
allocation towards their various reserves so that they can
be economically strong and can accomplish their social
objectives in the long run. It is revealed in the table 4.12
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Table 4.13
Net Working Results of PUCSs
Figures in parentheses indicate percentages to column total.
that the Cooptex was working with mixed fortunes during the
period under review. Similarly, it is also revealed that
majority (54 per cent) of the PUCSs were working with mixed
fortunes. However, 90 per cent and 50 per cent of societies
under category lA' and -R' respectively had earned profit in
all the years under review,while 70 per cent of societies
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under category "C were working with mixed fortunes (Table
4.13). Thus, it may be stated that majority of weavers'
cooperatives Jncludine the Cooptex in Tamilnadu were working
with mixed fortunes during the period under review, lacking
consistency in the financial results. However, the
performance of the silk weaving and carpet/made-up fabrics
societies were better.
Conclusion
The overall performance of Weavers' Cooperatives
including the Cooptex in Tamilnadu was not satisfactory, and
it also varied from region to region and society to society.
Weak owned-capital base resulting in too much dependence on
borrowed capital, non-avallabl11ty of required raw materials
with organised institutions/agencies besides high dependency
of PUCSs for production of fabrics especially on the Cooptex
had been affecting their performance, and majority of
weavers' cooperatives including the Cooptex bad mixed
fortunes in their working results. However, the primary silk
weaving c-.oopertives were in the forefront in their- over all
performance followed by the carpet/made-ups weaving
societies and mixed fabrics weaving societies in Tamilnadu.
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