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Organisation : Office of the Development Commissioner (Handlooms)
Scheme Name : Yarn Supply Scheme
Applicable States/ UTs : All Over India
Website :
Terms & Conditions :

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Handloom Yarn Supply Scheme

Handloom weaving is a labour intensive occupation spread throughout the country, mostly in villages. The handloom sector employs over 43 lakh persons in weaving and allied activities (as per handlooms census of India 2009-10).

Related : MGBBY Mahatma Gandhi Bunkar Bima Yojana :

The main raw material used by this sector is yarn, which is being produced by spinning mills. The yarn trade was controlled by the traders and most of the handloom weavers were dependent on the traders for their yarn requirement. This had resulted in unchecked escalation in yarn prices and shortage in its availability.


The objective of this component is to make available all types of yarn at Mill Gate Price to the eligible handloom weavers so as to facilitate regular supply of basic raw materials to the handloom sector and help utilize the full employment potential of the sector.

Scope Of The Scheme

The agencies which will be eligible to avail of the benefit of the scheme will be as under :
a) All handloom organizations (including weaver co-operative societies) at National/ State/ Regional/ Primary Handloom level.
b) Handloom Development Centres.
c) Handloom producers/manufacturers exporting directly and registered with HEPC/ any other Export Promotion Council under Ministry of Textiles/Director of Industries/Handlooms of State/U.T.

d) The Consortium/producers Company formed in the handloom clusters sanctioned under IHDS/IHCDS/Mega Clusters/Integrated Handloom Textile Parks.
e) Members of recognized/approved handloom associations.
f) NGOs fulfilling CAPART norms.
g) Self Help Groups/ Joint liability Groups.
h) Individual weavers and Weavers entrepreneurs.
i) Any other agency approved by the Office of the Development Commissioner (Handlooms), Ministry of Textiles, Government of India.

Supply Mechanism

1 The eligible agencies will place their indents on NHDC under the scheme.
2 NHDC will tie-up the supplies from the suppliers as per the demand specifications.
3 The user agencies should use the yarn under the scheme for captive production of cloth on handloom or for supply to their member societies/weavers directly enrolled under them by passing on the benefits of the scheme to them in full.

Claim Reimbursement

Under the Yarn Supply Scheme, following assistance shall be provided by the Government of India :
(i) Freight reimbursement for transportation of yarn (all types)
(ii) Expenses of operating the yarn depots.
(iii) 10% Price Subsidy on hank yarn (cotton, silk, wool)
(iv) Service Charges to NHDC
Out of these, 10% price subsidy will be paid by NHDC upfront in the invoice for which advance will be given to NHDC by Govt. of India.

Presently NHDC is supplying yarn directly from the place of mill to the place of handloom weaver/ agency. NHDC places order on mill after getting the corresponding indent from the handloom weaver/society.

This involves a delivery period of 10-15 days from the mills in southern states to the handloom weavers/agencies in northern states and 30-60 days to the handloom weavers/agencies in north-eastern states.

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