Yarn Supply Scheme

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Yarn is the most important raw material for hand weaving. Manufacturers/distributors and handweavers who rely on yarn are facing a shortage due to rising prices. The National Handloom Development Corporation  (NHDC) was formed to address the issues. The Yarn Supply Scheme (YSS) seeks to make subsidized yarn available to disadvantaged handweavers and help them compete with the industrial and machine weaving sectors.

Mill Gate Price Scheme

The Mill Gate Price Scheme (MGPS) has been in effect since 1992 to make yarn available to handweavers by reimbursing freight costs to warehouse operators. released to NHDC based on initiated proposals and use of previously released funds. The Mill Gate Pricing Plan (MGPS)  continued along with a 10% subsidy and changes. This plan is called the Yarn Supply Scheme (YSS) with a total outlay of Rs.433 crores.

Mill Gate Price is the price at which yarn is purchased from registered Silk Exchange license holders. The cotton ball yarn is sourced from factories that produce ball yarn under the Hank Yarn Packing Obligation as registered by the Textile Commissioner. This helps eliminate monopolies and cartels. NHDC buys yarn in bulk and therefore the MGP is lower than what is bought from wholesalers at the factory gate.

NHDC Depots

NHDC has warehouses or depots in key locations to stock yarn grades and reduces delivery time. This allows smaller quantities to be delivered to individual units and weavers in less time. A person is appointed for each core group who picks up the notches from the handweavers and coordinates with them. This script will then be delivered to the nearest NHDC warehouse. 2% is charged for deposit fees.

Mobile Vans

GSP-enabled vehicles are used to transport the yarn. This GPS information is integrated into the e-Dhaga app so that all partner agencies can keep track. Yarn reservoirs open up on handlooms. They serve as a collection point for the products from handlooms and as a source of supply for the yarn.

10% subsidy under the scheme

Since hand-woven products are inherently expensive due to long waiting times in weaving due to complex and exquisite designs and lower productivity compared to machine looms, explicit subsidization of ball yarn is essential. A subsidy of 10% applies to cotton yarn and domestic silk. ; are subject to volume restrictions. Wool for individual weavers and weaver cooperatives is now also subsidized at 10%.

Eligibility criteria

  1. All handloom development centres
  2. Handloom organizations including weavers’ cooperatives at the national, state, provincial or primary level
  3. Handloom manufacturers registered with the Export Promotion Council of the Ministry of Textiles or exporting directly
  4. Handloom groups sanctioned under Mega Groups or integrated into handlooms Textile Parks
  5. Any other agency approved by the  Development Commission Office (Handlooms), Ministry of Textiles

These eligible agencies place their scripts with NHDC. A connection will be established between NHDC and providers. the subsidy of 10%.This can be requested from the NHDC website. All types of yarns are supplied including polyester, acrylic, viscose, jute, blended yarn and zari. But not everyone is eligible for a 10% subsidy. The advance payment procedure before bleeding and yarn delivery (15 to 45 days) does not apply to individual weavers and main weavers’ unions. The National Handloom Development Corporation (NHDC) has opened distribution centres to introduce them to selling yarn in cash.

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