Wage and DA hike for weavers
Tamil Nadu Minister for Handlooms, Textiles and Khadi M. Vijay Balaji announced on Tuesday (September 1, 2026) that the basic wages and dearness allowance of weavers who are members of the handloom weavers' cooperative societies will be increased by 10% each. The announcement was made while replying to the discussion on the demand for grants for the Handlooms, Handicrafts, Textiles and Khadi Department in the Assembly.
Under the Tamil Nadu Cooperative Handloom Weavers' Savings and Security Scheme, the government's contribution, currently fixed at 8%, will be increased to 16%, the minister said. This move is intended to strengthen social security for weavers.
New board and infrastructure plans
Mr. Balaji also announced the establishment of the Tamil Nadu Knitwear Board, which will comprise representatives of the government and various stakeholders. Additionally, a Silk Export Trade Facilitation Centre will be set up at the Perarignar Anna Handloom Silk Park in Kancheepuram to promote the export of high-quality silk varieties. The minister noted this would help weavers access international markets for silk clothes and expand the market for Kanchipuram silk.
To reduce electricity costs for handloom weavers and promote environmental protection, a 100% subsidy will be provided for installing solar panels in 1,000 handloom units. A Natural Dye House will also be established at a cost of ₹1 crore to encourage environmentally friendly production and value-added textile production. The minister said natural dyes, made from naturally available ingredients, would not pollute ground and water bodies and would increase the value of handloom products internationally.
A new Design Studio will be set up at Thirubuvanam in Thanjavur district at a cost of ₹20 lakh to expand market opportunities for Thirubuvanam silk. To promote the sale of handloom fabrics and other products at Nagercoil in Kanniyakumari district, a modern sales complex will be established at a cost of ₹1 crore.
Revamping spinning mills and other initiatives
The minister also said a Detailed Project Report will be prepared to revamp six cooperative spinning mills functioning under the Textiles Department, with financial assistance from the National Cooperative Development Corporation (NCDC) and procurement of new machinery. A feasibility study and Detailed Project Report will be prepared for establishing a Centre of Excellence for Home Textiles in Karur.
Other announcements included the identification and renovation of historic buildings of handloom cooperative societies without altering their antiquity, special exhibitions of Tamil Nadu handloom clothes in cities of other states to improve marketing opportunities, and the introduction of new designs with a variety of colours by Co-optex to appeal to the younger generation and enhance the Co-optex brand.
To encourage new entrepreneurs into the handloom industry, the minister said subsidies of up to ₹2.5 lakh per year would be provided, which he said would boost employment generation and encourage innovative ventures in the sector.