what are the conclusion of the problems faced by artisans
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it is there in the textbook but i cant recall what it was
heavy taxes
is the only one i could remember
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The crafts value chain is fragmented
The current crafts sector can be broadly categorized into five verticals. It aims to demonstrate the different stages in craft production from producers to markets and inputs required at each stage. It must be noted, however, that each craft will have a slightly different set of processes.
1. Organisation : Artisans are usually structured into groups through informal contracts between traders, master artisans and low-skilled artisans. More formal systems of artisan organization involve four main types of entities:
● Self Help Groups (SHGs) are set up with the help of external technical intermediaries such as non profits or through government schemes, and typically comprise 10-20 artisans, usually women. SHGs serve as a form of social collateral, enabling artisans to establish linkages with input providers such as raw material suppliers, microfinance institutions and banks, and downstream players such as aggregators and retailers.
● Mutually Aided Co-operatives(MACs) are created to provide artisans with a platform for equitable participation. Legislated at the state government level, MACs enable artisans to pool funds as equity and own their production units. However, due to strong government influence, this structure has failed to gain popularity in most states other than Andhra Pradesh and Kerala.
● Producer companies were created as a for-profit legal entity in the Companies Bill in 2002 to enable primacy producers to participate in ownership and contribute equity.
● Private Limited Companies are for-profit legal entities that allow artisans to participate in ownership as shareholders, while enabling external funders to invest capital.
However, most artisans continue to work independently as there is a widespread lack of awareness about the advantages of being organized into the above forms.
2. Procuring and processing raw materials : Traditionally, raw materials used by artisans were widely available due to the close linkages between evolution of crafts and locally available materials. Further, the jajmani system, which consisted of a reciprocal relationship between artisanal castes and the wider village community for the supply of goods and services, provided artisans with access to community resources. However, with the breakdown of these traditional structures, along with competition from organized industry, artisans find it challenging to buy quality raw materials at affordable prices. In the absence of raw material banks, they are often forced to rely on local traders who provide them with raw materials against orders, albeit at high prices, or switch to non-traditional raw materials
3. Production : Although techniques and processes vary widely from one craft to the next, crafts production generally takes place in households, with multiple family members engaged in different aspects of the process. Even where organized artisan structures exist, artisans typically produce within community settings. Production is generally seasonal, with crafts activity being suspended during harvest season, as most artisans are also engaged in agriculture to supplement their livelihoods.
4. Aggregation and intermediary trade : Aggregation involves bringing together products from decentralized production units to enable economies of scale in transportation, storage and retail. Due to the dismal status of infrastructure and communication in India, aggregating products is a challenging task, and leads to many of the bottlenecks in the crafts supply chain today. Buyers and retailers lack incentives to overcome upstream, supply-side issues, which results in a loss of opportunities for artisans to access markets.
5. Markets : The markets for the craft products can be broadly understood as local, retail shops – high-end as well as mainstream, exhibitions and exports. Among these, local markets are still the common markets for many artisans. The contemporary markets, domestically as well as internationally, have grown with an expanding demand for ethnic products that have a story linked to them. However, these products are in low supply due to supply chain inefficiencies.
6. Demand : With the advent of globalization and the availability of cheaper and more varied products, crafts face severe competition in contemporary markets. They are typically perceived as traditional, old-fashioned and antithetical to modern tastes. There have been limited efforts to reposition the image of crafts and build consumer appreciation of the history and cultural identity associated with handmade products. In addition, there are few instances of traditional crafts being contemporized to fit with changing consumption patterns.
The current crafts sector can be broadly categorized into five verticals. It aims to demonstrate the different stages in craft production from producers to markets and inputs required at each stage. It must be noted, however, that each craft will have a slightly different set of processes.
1. Organisation : Artisans are usually structured into groups through informal contracts between traders, master artisans and low-skilled artisans. More formal systems of artisan organization involve four main types of entities:
● Self Help Groups (SHGs) are set up with the help of external technical intermediaries such as non profits or through government schemes, and typically comprise 10-20 artisans, usually women. SHGs serve as a form of social collateral, enabling artisans to establish linkages with input providers such as raw material suppliers, microfinance institutions and banks, and downstream players such as aggregators and retailers.
● Mutually Aided Co-operatives(MACs) are created to provide artisans with a platform for equitable participation. Legislated at the state government level, MACs enable artisans to pool funds as equity and own their production units. However, due to strong government influence, this structure has failed to gain popularity in most states other than Andhra Pradesh and Kerala.
● Producer companies were created as a for-profit legal entity in the Companies Bill in 2002 to enable primacy producers to participate in ownership and contribute equity.
● Private Limited Companies are for-profit legal entities that allow artisans to participate in ownership as shareholders, while enabling external funders to invest capital.
However, most artisans continue to work independently as there is a widespread lack of awareness about the advantages of being organized into the above forms.
2. Procuring and processing raw materials : Traditionally, raw materials used by artisans were widely available due to the close linkages between evolution of crafts and locally available materials. Further, the jajmani system, which consisted of a reciprocal relationship between artisanal castes and the wider village community for the supply of goods and services, provided artisans with access to community resources. However, with the breakdown of these traditional structures, along with competition from organized industry, artisans find it challenging to buy quality raw materials at affordable prices. In the absence of raw material banks, they are often forced to rely on local traders who provide them with raw materials against orders, albeit at high prices, or switch to non-traditional raw materials
3. Production : Although techniques and processes vary widely from one craft to the next, crafts production generally takes place in households, with multiple family members engaged in different aspects of the process. Even where organized artisan structures exist, artisans typically produce within community settings. Production is generally seasonal, with crafts activity being suspended during harvest season, as most artisans are also engaged in agriculture to supplement their livelihoods.
4. Aggregation and intermediary trade : Aggregation involves bringing together products from decentralized production units to enable economies of scale in transportation, storage and retail. Due to the dismal status of infrastructure and communication in India, aggregating products is a challenging task, and leads to many of the bottlenecks in the crafts supply chain today. Buyers and retailers lack incentives to overcome upstream, supply-side issues, which results in a loss of opportunities for artisans to access markets.
5. Markets : The markets for the craft products can be broadly understood as local, retail shops – high-end as well as mainstream, exhibitions and exports. Among these, local markets are still the common markets for many artisans. The contemporary markets, domestically as well as internationally, have grown with an expanding demand for ethnic products that have a story linked to them. However, these products are in low supply due to supply chain inefficiencies.
6. Demand : With the advent of globalization and the availability of cheaper and more varied products, crafts face severe competition in contemporary markets. They are typically perceived as traditional, old-fashioned and antithetical to modern tastes. There have been limited efforts to reposition the image of crafts and build consumer appreciation of the history and cultural identity associated with handmade products. In addition, there are few instances of traditional crafts being contemporized to fit with changing consumption patterns.
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