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. In the short run, the state governments should source procurement of cloth for supply to various welfare schemes from the powerloom producers. In the medium term the central government should make it possible for the powerloom operators to access funds from the existing textile modernisation schemes.