Based on fieldwork, this paper examines the problems and prospects of the handloom sector in Andhra Pradesh. One major finding is that the growth performance of cooperatives determines the growth of other institutions - the master weavers, middle men and independent weavers. Well-performing cooperatives are the best safeguard for the handloom sector, as they protect the weaver and also provide a counterbalance to the master weaver. Competition from powerlooms is an obvious threat, but this can be countered if the sector produces high value, unique (brand value) products or medium value products which can be marketed locally or abroad, as distinct from powerloom products.
