Mill Gate Price Subsidy Scheme
By Cottage and Rural Industries Department, Government of Gujarat
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Quick Answer
A Gujarat government scheme providing a 15% subsidy on yarn purchases and freight reimbursement to handloom cooperatives, NGOs, and development centers to support economically weak weavers.
About this subsidy
Launched in 2007, the "Mill Gate Price Subsidy Scheme", implemented by the Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, aims to provide quality yarn at subsidized rates to handloom weavers, ensuring affordability and improved product quality. The scheme offers freight reimbursement (1–8.5% based on yarn type and region) and a 15% subsidy on yarn purchases from NHDC-recognized depots. Eligible beneficiaries include handloom cooperatives, NGOs, and development centers. The scheme is implemented through District Industries Centers (DICs) and aims to sustain employment for economically weak weavers, especially from Scheduled Castes. This initiative by the Government of Gujarat addresses a critical need for the handloom sector, enabling weavers to access raw materials at competitive prices. By reducing the cost burden, the scheme not only enhances the economic viability of handloom weaving but also supports the preservation of traditional crafts and skills. It serves as a vital support mechanism for rural industries and communities dependent on handloom production, fostering both economic empowerment and cultural heritage. The focus on economically vulnerable groups, particularly Scheduled Castes, underscores its social upliftment goals and contribution to inclusive economic development in the state.
Eligibility
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Subsidy providers
Benefits & Funding
What You Get
The scheme provides significant financial relief to handloom weavers through two primary benefits:
- 15% Subsidy on Yarn Purchase: Applicants receive a 15% subsidy on the purchase of yarn from National Handloom Development Corporation (NHDC)-recognized depots. This subsidy is directly credited to the beneficiary via RTGS/e-payment, making quality yarn more affordable.
- Freight Reimbursement: Reimbursement for freight charges is provided, varying based on the type of yarn (Non-Silk/Jute, Silk, Jute/Jute Blended) and the geographic region (Plain Area, Hills/Remote, North-East). Reimbursement rates range from 1% to 8.5% of the freight cost. Additionally, an extra 2.5% is provided to cover depot operating charges, ensuring comprehensive support for the logistics of yarn procurement. This dual benefit structure significantly reduces operational costs for weavers, promoting sustainability and growth in the handloom sector.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process primarily involves administrative review at the District Industries Centre (DIC) level. After submission, the designated staff at the DIC will scrutinize the application form and attached documents to verify eligibility, including the applicant's entity type and proof of yarn purchase from NHDC-recognized depots. The application will be cross-referenced with scheme guidelines to ensure compliance. Once all criteria are met and documents are verified, the subsidy amount for yarn purchase will be processed for direct credit via RTGS/e-payment, and freight reimbursement will be handled separately. The process is largely a compliance check rather than a competitive selection.
Application Process
- 1
Purchase Yarn
Purchase yarn from NHDC-recognized depots to be eligible for the subsidy.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the Mill Gate Price Subsidy Scheme?
The scheme's primary objective is to provide quality yarn at subsidized rates to handloom weavers, thereby ensuring affordability, improving product quality, and sustaining employment for economically weak weavers in Gujarat, especially those from Scheduled Castes.
Who is eligible to apply for this subsidy?
Handloom cooperative societies, NGOs, and development centers are eligible to apply. A key requirement is that they must purchase yarn exclusively from NHDC-recognized depots.
How is the 15% yarn purchase subsidy disbursed?
The 15% subsidy on yarn purchases is credited directly to the eligible applicant's account via RTGS/e-payment after verification.
Are there different rates for freight reimbursement?
Yes, freight reimbursement rates vary depending on the type of yarn (Non-Silk/Jute, Silk, Jute/Jute Blended) and the region of procurement (Plain Area, Hills/Remote, North-East). Rates range from 1.00% to 8.50%.
Where can I get the application form?
The application form for the Mill Gate Price Subsidy Scheme must be obtained in hard copy from the designated staff at your local District Industries Centre (DIC) after purchasing yarn from NHDC-recognized depots.
Is there any specific deadline for application?
The application process requires submission within a "prescribed period (if any)". It is advisable to inquire about specific submission deadlines at your local District Industries Centre (DIC) when collecting the application form, as these may vary or be communicated locally.
Sources
Data on this page is compiled from official program and provider references.
