Telangana Education Department Cancels School Uniform Order, Major Setback for Handloom Cooperative

• Telangana education department cancels school uniform order impacting Tesco
• Tesco faces uncertainty as welfare orders worth 200 crore remain pending
• Government shifts to tender system replacing direct orders to handloom cooperative

The Telangana handloom cooperative society Tesco has been hit by a significant blow after the state education department cancelled a major school uniform order for the upcoming academic year. The decision has come at a time when the cooperative was already facing uncertainty over pending welfare department orders.

For decades, Tesco has been a key supplier of school uniforms and welfare-related materials in the state. Every year, based on orders received in January, the cooperative would complete production and ensure delivery by May so that students received uniforms before schools reopened. This long-standing system now appears to be coming to an end.

The cancelled order, valued at around 105.54 crore, was meant for the 2026 – 2027 academic year. Officials confirmed that a formal communication was sent to Tesco informing them about the withdrawal. The move has left the organization in shock, as it depended heavily on such large scale government contracts.

Adding to the concern, orders worth nearly 200 crore related to blankets and clothing from various welfare departments have not been issued even after deadlines passed. This delay had already created anxiety among Tesco officials, and the latest decision has further deepened their worries.

The cooperative operates through 393 handloom societies, providing employment to a large number of workers involved in producing uniforms and other materials. With the cancellation of direct orders, the livelihoods of many artisans may now be at risk.

Officials have indicated that the government is shifting towards a tender based procurement system. Instead of giving direct orders to Tesco, contracts will now be awarded to private firms through a competitive bidding process. This marks a clear policy change in how such supplies will be handled going forward.

While some limited orders related to departments such as women and child welfare, health, and panchayat raj may still come to Tesco, the scale is expected to be much smaller compared to previous years.