The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

A large amount of bamboo also 'leaks' to private traders. The largest source
seems to be head-load pass holders. The private traders are willing and able to give
advance payments for the bamboo. They are perceived to be more trustworthy, and
they pay more quickly and on better terms than KSBC. Hence, the head-load pass
holders and other cutters divert some of their produce to private traders.
The weavers obtain their raw material through the KSBC. There are separate
Mat Depot and sub-depots that arrange adequate supplies of reed from the RCCs and
distribute reeds to registered weavers. The reeds are 'advanced' to the weavers, who
take the woven mats back to the depot for sale, at which time the value of the
advanced raw material is deducted from the payment. The Mat Depots are also
responsible to ensure that the reed-to-mat ratio is correct (to guard against weavers
diverting reed or mats to private traders) and to arrange the transport of mats of
Angamaly. The weavers do not sell directly to consumers, and they do not have
access to market information. Even the product specifications (mat dimensions) are
determined by KSBC. In effect, KSBC controls all functions in the market chain.
KSBC was set up specifically to replace private traders. But as in the raw material
trade, private mat traders have re-emerged. They are able to procure small numbers
of mats from KSBC traders. If they can procure raw material they can also contract
larger volumes of mats.
There is also a reed distribution center (RDC) where reed is sold to traditional
basket and handicrafts makers (mainly Sambavas). Bamboo weaving was traditionally
done by landless agricultural laborers, mainly people from the Scheduled Castes and
Schedules Tribes, as a leisure time/off-season occupation, and as part of their feudal
obligation to the landed class. This situation changed radically as bamboo mat emerged
as an important tradable commodity. As bamboo work is associated with backward
classes and hence "backwardness", able-bodied males prefer not to get involved in
this work and prefer to let it be done at home by women who are otherwise unable
to enter the labor market because of time constraints.
Angamaly area is relatively rich agriculturally, there are good employment
prospects in the agriculture sector. Many laborers work in agricultural fields in season
and weave during off-season. Wages for farm work are much higher than for bamboo
work ---- Rs 75 for 8 hours of farm work versus Rs 40 for 12 hours of bamboo work.
There are, however, a number of other benefits for a bamboo worker. KSBC gives an
annual bonus (11.5% of turnover), and provides health and accident insurance cover,
food subsidy, education subsidy, and even a 'marriage contribution' for daughters of
all registered bamboo workers. Local political leaders use bamboo workers as 'vote
banks' and therefore protect the benefits of the workers and also their illegal acts in
return for political support. This has led to the operation of unauthorized channels
through which at least 22% of mats move.
A major feature is the home-based character of the production activity. The
concept of material cost and labor cost do not figure directly. The market agent
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