APCO's role

According to recent APCO rules, if the stocks are not sold in the market within three months of their procurement from the cooperatives, the apex body does not procure further stocks. So, the APCO manager, who is responsible for the clearing of stocks, lifts only stocks that have a sure market. This has led to a sharp fall - from Rs.12 lakhs a year to Rs.4 lakhs - in APCO's procurement from cooperatives in Dubakka. Cooperatives have had to turn to private traders, who buy saris at Rs.250 a piece - or Rs.30 lower than the making cost.

The APCO selling price of a mercerised cotton sari is Rs.280 plus the cooperative society profit (12 per cent) plus the profit margin (45 per cent) of the apex body. A Dubakka sari is therefore cheaper in the private market.

APCO gives only 60 per cent of the price of procured saris to the cooperative societies; the balance is given in the form of yarn from the National Handloom Development Corporation (NHDC) at a high price. Even that yarn is difficult to get as APCO is not paying the NHDC, which therefore does not release yarn.

Thus, the cooperative societies are forced to buy yarn from the market at high prices.

Earlier APCO used to provide societies with a "production plan". Not any more. It used to give cooperative societies orders and advice them on the product and quality. But now it says that this is not its responsibility and societies should produce according to market needs. The Andhra Pradesh Textile Development Corporation (APTEX), which used to purchase directly from the weavers and sell products in the market, was closed by the TDP government.

Asks G. Devaraj, Medak District Secretary of Andhra Pradesh Weavers Association: "How will the weavers obtain market information, who will retrain them, provide them the designs, and so on? Is it not the government's responsibility to help the weaving sector, which provides employment to millions of people?"