The government today approved continuation of the Mill Gate Price Scheme (MGPS) along with 10 per cent subsidy component with modifications for weavers while renaming the programme as 'Yarn Supply Scheme' (YSS).
"The plan outlay for YSS during the 12th Plan will be Rs 443 crore," Information and Broadcasting Minister Manish Tewari told reporters after the Cabinet Committee on Economic Affairs (CCEA) took a decision in this regard.
The scheme will cover the weavers who are "under privileged as also vulnerable groups", by providing them subsidised yarn so that they can compete with the powerloom and mill sector.
The target for the 12th Plan will be to supply 3,506 lakh kg yarn worth Rs 4,364 crore.
The Centre has been implementing MGPS since 1992 for making yarn available to handloom weavers at mill gate price by reimbursing transportation charges to depot operating agencies, which are primary weavers cooperative societies, apex societies and other handloom organisations.
Under the modified scheme, along with hank yarn and domestic silk, 10 per cent subsidy will also be applicable to wool for individual weavers and weavers cooperative societies.
At present, 10 per cent subsidy on mill gate price is payable to cotton yarn and domestic silk with quantity restrictions.
An official statement said that to increase the coverage of primary weavers societies and individual weavers and to introduce cash sale of yarn, National Handloom Development Corporation (NHDC) proposes to open distribution centres and warehouses in various parts of the country.
"To begin with 10 such distribution centres are to be set up," it said, adding service charges to NHDC are proposed to be enhanced by 0.5 per cent in all the states.
