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Business & Entrepreneurship; Social welfare & Empowerment

Mill Gate Price Subsidy Scheme

The scheme provides 15% subsidy on yarn purchases from NHDC depots to handloom weavers, cooperatives, and NGOs, along with freight reimbursement (1–8.5%). Intended beneficiaries include weavers below the poverty line.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Yarn Purchase Subsidy | 15% subsidy on yarn bought from NHDC-recognized depots. | Freight Reimbursement | - Non-Silk/Jute Yarn: Plain Area: 1.00%, Hills/Remote: 1.75%, North-East: 3.00% | - Silk Yarn: Plain Area: 1.00%, Hills/Remote: 1.25%, North-East: 1.50% | - Jute/Jute Blended Yarn: Plain Area: 7.00%, Hills/Remote: 8.00%, North-East: 8.50% | _Additional 2.5% depot operating charges._ | Disbursement Mode** | 15% subsidy credited via RTGS/e-payment. | Freight reimbursement is processed separately.

Who can apply

The applicant must be a handloom cooperative society, NGO, or development center.; The applicant must purchase yarn from NHDC-recognized depots (e.g., Gujarat State Handloom & Handicrafts Development Corporation).

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who is eligible to apply for the yarn subsidy under this scheme?

Handloom cooperative societies, NGOs, and development centers purchasing yarn from NHDC-recognized depots can apply.

What percentage of subsidy is provided on yarn purchases?

A 15% subsidy is offered on yarn purchased from NHDC-recognized depots.

From which depots must the yarn be purchased to qualify for the subsidy?

Yarn must be purchased from NHDC-recognized depots like Gujarat State Handloom & Handicrafts Development Corporation.

Is there any freight reimbursement available under this scheme?

Yes, freight reimbursement ranging from 1% to 8.5% is provided based on yarn type and region.

How is the freight reimbursement percentage determined?

It varies by yarn type (non-silk/jute, silk, jute/jute blended) and region (plain, hills/remote, North-East).

What additional charges are applicable for depot operations?

An extra 2.5% is charged for depot operating expenses.

How is the 15% subsidy amount disbursed to beneficiaries?

The subsidy is transferred directly to beneficiaries' accounts through RTGS or e-payment.

Is the freight reimbursement processed along with the yarn subsidy?

No, freight reimbursement is processed separately from the yarn subsidy.

What documents are required to claim the yarn purchase subsidy?

Applicants need purchase invoices from NHDC-recognized depots and bank details for disbursement.

What proof is needed for freight reimbursement claims?

Freight receipts must be submitted along with the reimbursement application.

Do applicants need to submit registration proof?

Yes, cooperative societies and NGOs must provide their registration documents.

Are individual weavers eligible for this subsidy?

No, the scheme is only for handloom cooperatives, NGOs, and development centers.