The Yarn Supply Scheme (YSS) with partial modification and renamed as Raw Material Supply Scheme (RMSS) has been approved for implementation during period from 2021-22 to 2025-26 with following objective and components.
Objectives of the Scheme:
- To make available quality yarn & their blends to the eligible Handloom weavers at subsidized rates.
- To set the benchmark price and quality of yarn in the open market so that price remains within reasonable limits; consistent supply and quality parameters are maintained in the market.
- To overcome the poor dyeing facilities in the sector, supply of dyed yarn by Implementing Agency(IA), helping weaver in product diversification, and hence marketability of produce.
- To facilitate handloom weavers' engagement in the sector, help competing with Mill Sector, as handloom productivity is less compared to powerloom.
Components of RMSS:
Transport Subsidy Component:- Freight reimbursement for transportation of yarn (All types)
Price Subsidy Component:- 15% Price Subsidy on Yarn (through DBT to linked bank account) with quantitative restrictions. 15% price subsidy will be available on cotton hank yarn, domestic silk, woollen and linen yarn and blended yarn of natural fibres with quantity restrictions.