The revised State Budget for 2026-27, presented by Chief Minister V.D. Satheesan on Friday (June 19), did not evoke much enthusiasm in the handloom sector despite the finance document recognising it among the “traditional industries facing severe challenges”.

Stakeholders in the sector have flagged the lack of concrete measures to uplift the sunset industry, even as pinning some hope on the budgetary promise to launch a comprehensive market development initiative called ‘Brand Keralam’ to ensure superior quality standards and premium branding for these products, including spices, seafood, handloom textiles, Ayurvedic formulations, cashew, and coir.

The Budget also promises income support schemes to traditional industries and special incentives to handloom and handicraft industries for creating digital platforms to market their products globally. It said modern machinery will be made available and working conditions improved in the sector.

The revised Budget has not made any specific allocations for the handloom sector. “We have learned from the officials that the allocations made in the previous Budget will continue. However, there is nothing much hopeful in the latest one. We have been hoping that the new government would expand the production incentive schemes, including the school uniform project. We had also expected some announcement on working capital for cooperative societies,” said Babu A.V., general secretary, Kerala State Handloom Weavers Cooperative Societies Association.

Mr. Babu, based in Kozhikode, meanwhile, welcomed the Brand Keralam initiative, exuding hope that it can cash in on the improved market interest in the traditional handloom products.

P. Chandrasekharan, who runs a handloom unit with 25 workers at Kuthampully in Thrissur, was excited about the marketing initiative. “It should help us import more products directly without middlemen,” he said.

T.S. Baby, a weaver from Ernakulam’s Chendamangalam and a member of the State Kaithari Council, was sceptical about the proposal. “Survival on the ground is more important before dreaming about the international market,” he said. Mr. Baby, however, shared some optimism about the Brand Keralam initiative. “It sounds good, but it remains to be seen how the government is going to work the plan out,” he said. He was highly critical of the Budget remaining silent on the Chendamangalam Kaithari Gramam (Handloom Village) project, despite it being in the Chief Minister’s constituency, Paravur.

Punnakkatt Biju, chairman of the centrally-sponsored Balaramapuram Handloom Production Company Ltd, termed the Budget disappointing. “Without adequate production, what’s the point in promoting business online? The Budget doesn’t offer anything for the weavers working on the ground. The proposals, in turn, will end up promoting the power loom industry,” he said.