HANDLOOMS 43 fixed amount to the government. For example, in 1973 the government received only about 45 percent (3,728,000 kg) of yarn from the mills against the allotted amount of 8,347,000 kg. d) Mills have a tendency for showing a certain price of issue for their yarn which, by the time it reaches the weaver, is actually sold in the black market at a price higher than the price shown in the books of the mills. Apart from yarn, the other inputs include dyes and chemicals, the bulk of which is available from indigenous production by the country dyers. As such, it has not been possible for Bengal weavers to get standardized dyed yarn. The unreliable indigenous colouring has stood in the way of West Bengal entering the market in competition with leading states in handloom weaving like Tamil Nadu, Haryana, Maharashtra and Manipur, where the variety^ fastness and brightness of colours of handloom fabrics are assured. Provision of Finance The availability of institutional finance is a prime factor for the development of the handloom industry where the majority of weavers is still in the grip of local mahajans, A system of private money-lending in the form of supply of raw material and inputs operates in every weaving cluster in Bengal even today. Funds arc available in the form of loan and grant from the state and central budgets to be channelized to various developmental heads for the promotion of the industry. There has been a provision for work* ing capital loan from the Apex and primary weavers5 societies. It was with an eye to increase the membership of primary weavers^ societies that 75 percent of the total share of a weaver was contributed as share capital loan. But from 1976 the government substituted the share capital loan by itself purchasing shares in primary weavers^ societies,6 and weavers' share of both working and share capital loans has steadily decreased, with a simultaneous and significant expansion of government investment in the capital of the Apex and primary societies, the Handloom and Powerloom Development Corporation and the cooperative spinning mill (see Table I). This is a restrictive practice on the part of the government because the return on working capital and share capital loans from the cooperative sector is not usually satisfactory. The failure of cooperative societies to pay back interest or loan instalments and the closure of a number of societies every year were the adverse factors^ A continuous and ever expanding need for product diversification^