An oligopolistic market, fluctuating market conditions, inadequate modernisation and the subordinate status of hired workers have contributed to the poor living conditions of workers in Sircilla, a powerloom centre of Andhra Pradesh. The state and central governments need to intervene in a more organised fashion to end the distress.

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