Natural Textiles (NT ) is a textile cooperative society founded by the producers of handloom weavers is registered under the act. As the Cooperative society grew, it became very committed to corporate social responsibility (CSR). “Our aims,” NT says on its website, “include providing safe and secure employment, contributing to society through using environmentally friendly production practices and supporting ethical causes”. Many people believe that NT’s success is tied to its reputation for taking care of its employees and for its commitment to CSR. Due to covid, there is an acute fall in demand and the Cooperative society could go out of business.
(a) Natural Textiles is registered under which Act?
(b) Identify the type of cooperative society formed by the handloom weavers and
give any two reasons as to why they might have formed it?
(c) Why can’t NT survive during low demand period?
Answers
Answer:
(a)National Textile Corporation Limited (NTC) was incorporated under the Indian Companies Act, 1956.
(b) The handloom industry TN may be divided into organised sector represented by primary weavers, co-op societies and an apex society and unorganised sector comprising of independent weavers, master weavers with weavers working under them and weavers in the handloom factories. Weaver's cooperative is a way in which weavers can reduce their dependence on the merchant and earn a higher income for themselves. Here, people with common interests come together and work for their mutual benefit. Weavers form a group and take up certain activities collectively. The advantages of this system were that workers involved could work at their own speed while at home, and children working in the system were better treated than they would have been in the factory system, although the homes were polluted by the toxins from the raw materials.
(c) With a rapid increase in the wealthy upper middle class of emerging economies and expanding demand for quality products has led to the rise in the demand of home textiles. ... There is a certain shift in interest from economical to quality products among the consumers.“It is obvious that the current fashion system is failing both the environment and us. This report sets out a compelling vision of an industry that is not only creative and innovative, but also circular. To achieve such a necessary system change that will benefit society as a whole will require strong political will. Whilst this may not be straightforward, the way is now clear.”