Chennai: The Tamil Nadu Assembly has announced a significant 10% increase in wages and dearness allowance for handloom weavers, alongside the establishment of a new Tamil Nadu Knitwear Board. This move aims to bolster the handloom sector and provide enhanced support to its workforce.
Information available with The Chenab Times indicates that the wage hike will benefit numerous weavers across the state. The establishment of the Knitwear Board is expected to streamline policies and provide a dedicated platform for addressing the specific needs of the knitwear industry, a vital component of Tamil Nadu’s textile economy. Previously, wage revisions for certain segments, such as school uniforms, had not been updated since 2007, highlighting a long-standing need for such adjustments.
The decision comes amidst ongoing discussions and demands from various weaver associations regarding better compensation and working conditions. Recent reports suggest that while the government has implemented a hike, some associations had initially expected a larger increase, advocating for up to a 30% rise for certain products. However, the current 10% hike for dhotis and approximately 8% for sarees, alongside revised rates for school uniform production, represents a step towards improving the financial standing of the weavers.
The handloom sector in Tamil Nadu boasts a rich history spanning over 2,000 years, with globally renowned weaves such as Kanchipuram silk, Madurai Sungudi, and Chettinad cotton. Despite this heritage, the industry has faced challenges due to competition from powerlooms and mass-produced textiles. The establishment of mini handloom parks in key textile hubs like Coimbatore, Gudiyatham, Jayankondam, and Kancheepuram is part of the state’s strategy to support these artisans by providing resources and market access for high-value, market-oriented products.
The formation of the Tamil Nadu Knitwear Board is particularly significant given the state’s prominent role in the textile industry. Tiruppur, often referred to as the knitwear capital of India, contributes a substantial portion of the country’s apparel exports. The city alone accounts for a significant percentage of India’s total cotton knitwear exports, supplying major global brands. The new board is anticipated to foster innovation, enhance infrastructure, and promote the growth of this crucial sub-sector.
This initiative aligns with broader state government efforts to strengthen the textile industry, which is considered a key driver for achieving Tamil Nadu’s economic growth targets. The state’s Integrated Textile Policy 2025-26 and the allocation of substantial funds in the interim budget underscore a commitment to modernizing the sector, promoting employment generation, and improving global competitiveness. The government has also been focusing on initiatives such as establishing advanced quality testing laboratories and supporting the modernization of powerlooms.
The handloom and powerloom sectors have seen various wage revisions in recent years. While a wage hike was agreed upon in February 2022 for powerlooms, issues regarding its implementation have been raised. The current decisions by the Tamil Nadu Assembly reflect a continuous effort to address the evolving needs of the weaving community and to ensure the sustainability and prosperity of one of the state’s most traditional and culturally significant industries.
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