The government today said it has not stopped giving subsidy on woolen yarn to weavers.
The clarification comes in the wake allegations by a Congress MP that this assistance was stopped in three states.
"The Government of India clarifies hereby that subsidy on woolen yarn has not been stopped and will continue to be available to weavers," the Textile Ministry said in a statement.
"Member of Parliament, Viplove Thakur, raised this issue during Zero Hour in Rajya Sabha on May 7. The MP stated that subsidy on woolen yarn used by weavers of Himachal Pradesh, Uttar Pradesh and Jammu & Kashmir has been stopped," it added.
"Women weavers have been badly affected due to this and are sitting idle. "Modi government should take care of the poor ...Swadeshi things are being removed," she had alleged.
The Congress member had alleged that the step had badly affected the livelihood of weavers in Himachal Pradesh, Uttar Pradesh and Jammu and Kashmir.
Thakur had alleged that while subsidy was being given to silk and cotton yarn weavers in Varanasi, which Prime Minister Narendra Modi represents, and Gujarat where he hailed from, it had been stopped for the poor weavers of woollen yarn.
Almost the entire opposition supported her in the demand with Anand Sharma (Cong) saying handloom and handicraft sector provided second largest employment in the country and care should be taken on restoration of subsidy on wool yarn.
