Profitability and Resource Use Efficiency of Handloom Weavers: A Study in Sirajganj District

Abstract

Handloom industry, one of largest handicraft industry in Bangladesh, providing the majority of rural employment after agricultural farming. However, empirical studies on handloom weavers are limited in Bangladesh. Therefore, this study aimed to explore the socio-economic characteristics, profitability and resource use efficiency of handloom weaving in Sirajganj district of Bangladesh. Primary data were collected from 90 randomly selected handloom weavers through face-to-face interviews. Data were collected between January and February 2020. Descriptive statistics and double log multiple regression function was used to satisfy the objectives. Most of the handloom weavers had primary level of education. The average annual income of weavers was around Tk. 145 thousand. Among the handloom weavers, gamcha weavers achieved higher profit compared to saree and lungi weavers. On an average, yearly net profit for saree, lungi and gamcha weavers were Tk. 122920, 184543 and 220113 respectively. Weavers of saree, lungi, and gamcha earned a minimum profit of Tk. 54840, 69690, and 39270 a year, respectively. On the other hand, weavers of saree, lungi and gamcha earned a maximum profit of Tk. 426170, 352670, and 434340 every year, respectively. Human labor, yarn cost, colour & chemical cost negatively influenced handloom weaver’s profit. Resource use efficiency indicated that most of inputs were overutilized by handloom weavers. Several factors, including high yarn and chemical costs, a lack of bank loans, and insufficient marketing facilities, may hinder the expansion of the handloom weaving sector in the study areas.