After the Centre announced its decision of withdrawing the marketing incentive scheme, it has made a negative impact on the weavers in Krishna district, since it has led to decline in sale of handloom products resulting in piling of inventories.

The weavers feel decline in sales are driven by the withdrawal of rebate on the products. Handloom products worth nearly Rs 9 crore to Rs 10 crores are piled up in godowns and the 36 cooperative societies operating in the district were said to be holding up stocks worth more than Rs 11 crores up to March 31 this year. With the APCO making some purchases and marginal sales in retail market, the total stocks have now reduced to Rs 9 crore to Rs10 crores.

The Central government discontinued the scheme in 2012-13 fiscal year. Earlier, under the scheme, the Centre used to offer a rebate of 20 per cent on retail sale of handloom cloth to help weavers’ cooperative societies improve sale and get continuous employment to the members. Apart from the impact of scheme withdrawal, even pending dues are adding to the woes of the weavers. The government is yet to disseminate dues for the 2010-11and 2011-12 years under the market incentive scheme, which has touched Rs 1.51 crore.