Bargarh cluster is famous for its intricate tie & dye design saris popularly known as Sambalpuri Sari. Barring few neighboring countries the export market for sari is limited though it is rich in art and tradition.

History of Bargarh has never faced a set back and is a growing handloom cluster. The quality and design of the products is gradually improving. The products manufactured have been changed from coarser count cotton to finer count and use of chemical dye stuff having good fastness got momentum. The only drawback is the products are costly and cannot reach low end segment of the market. The product needs to be diversified to suit the domestic as well as export market.

The core cluster actors are small weavers, Master Weavers and cooperative societies. Most of the cooperative societies are now running in losses because of which they are not able to take proper care of its members. It forced the members to take shelter of the master weavers. The Sambalpuri Bastralay HLCS Limited, one of the biggest primary cooperatives of the state once running in profit is also now facing the same problem. It is the pioneer of all cooperatives in the cluster and has done a lot of development for the handloom industry.

Analysis of business operation clearly indicates that, the weavers are facing raw material problems not in the terms of availability but in the terms of high price fluctuation. Most of the weavers, Master Weavers and cooperatives purchase the raw material from the private traders on credit for which, they have to bear some extra cost.

Analysis of business operation reveals another fact that, the weavers are in need of dyeing and design improvement to suit the niche market, besides improving their looms, with some technical modification on the old pit looms.

The most important observation is that, though the products are of high quality and rich in design, still it has not reached to export market and have not been able to establish a good position in the national market as well. In this field the products are to be diversified according to the market demand for which market survey has to be conducted.

There are no such BDS providers in the cluster.

Most of the dyeing units are confined to private yarn traders. The dyeing unit of, Sambalpuri Bastralaya , need to be modernized and at least 30 to 40% of the capacity need to be utilized by other weavers, master weavers as well as cooperatives.

There are number of SHGs in the cluster, which have been financed by the banks under various Govt. Schemes like SGSY. But their functioning is not up to the mark for which one federation of the SHGs needs to be formed which administers the overall development of weavers. It may also take the help of NGO

The Value Chain analysis speaks for entering in to niche market with some value addition to the products and some reduction on raw material cost.

In the action plan prepared, main emphasis has been given to reduction in cost of raw material, design and dyeing development, technological up gradation, diversification of products to establish a good position in the niche market.

The strategy for direct market linkages will be established by conducting buyer-seller meets, exposure visit big retail out lets in Metros, participation/ organization in different fairs and exhibitions. In addition to the above, common product brochure catalogue will be published for facilitating the market linkages.

The cluster which is having around 5000 active looms, with 16 National Awardees, 10 State Awardees and with one large PWCS Sambalpuri Bastralaya, there is a great scope for further improvement.

Bargarh Handloom cluster is spread over the entire Block of Bargarh, Attabira, Bijepur and Sohella. The cluster has 7158 numbers of looms as per the survey report of the zonal Handloom office taken up during the year 2004 out of which 5102 looms are working in 299 different villages. The main products of the cluster are cotton sarees of tie-dye and small amount of dress materials, lungi and napkins etc. The annual production is around 10 Crores rupees. The products of this area are mostly marketed in Orissa and National market. The cluster so to say represents Orissa in quantitative and qualitative Tie-Dye Cotton Sarees as no other clusters of other districts in Orissa produces such sarees.

Activities in the cluster started taking momentum with the involvement of Late Padmashree Dr. Krutartha Acharya and his four associates in the cluster area during 1942 and started their business with production on limited numbers of looms. Later he converted his business in to a co-op. society named Sambalpuri Bastralaya registered during the year 1954 under Bihar and Orissa Co. op. Societies Act and established in Bargarh town. This is the first firm in the cluster, which took the leadership in weaving activities of cluster and stood as a milestone in its history.

To look after the interest of the industry, Office of the Assistant Director of Textiles, Bargarh was established and started functioning from 1962. Similarly Orissa Weavers Co-Operative Spinning Mill at Tora, a village adjacent to Bargarh started it’s functioning during 1971 and acted as a forward linkage to the industry by providing major raw material input i.e. yarn. Marketing supports from Bastralaya, Orissa State Handloom weavers Co-Operative society, functioning of a production branch of Orissa State Handloom Development Corporation at Bargarh to look after the weavers working out of the Co-Operative fold, availability of yarn at reasonable price at the door step encouraged the activities of the Weaver Co-operative Societies, which were the major firms and maximum in number till the mid of ‘00s which grew up mainly during 1980-1996. Inducing production agents to Corporation branch and gradual declining activities of OSHDC started giving birth to private entrepreneurs from early 90’s and now a number of master weavers, traders are in the business. On the other hand gradual reduction of Government subsidies, declining support from apex WCS, closure of Handloom Development Corporation, closure of local spinning mill, abnormal increase in yarn price, and mismanagement at the primary wcs level are the main reasons of reduction in the number of active co-operative societies. There are 5102 numbers of working looms and about 9000 weavers are in the cluster. They belong to Bhulia and Schedule caste out of which the Bhulia are dominating in numbers. Their craftsmanship is excellent and unique in weaving traditional cotton tie-dye designed products.

There are 19 PWCS, and 138 SHGs functioning in the cluster