Lok Sabha Question No. 179 (STARRED), answered on 2021-07-30
Subject: Subsidy to Handloom Weavers
Ministry: TEXTILES
Asked by: Sougata Ray

## LOK SABHA STARRED QUESTION NO. *179 TO BE ANSWERED ON 30.07.2021

## SUBSIDY TO HANDLOOM WEAVERS

- *179.  PROF. SOUGATA RAY:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a) whether the Government is considering any proposal to give subsidies to the handloom weavers on the proper validating of the finished product, rather than the existing subsidy on raw materials;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c)  whether  the  Government  has  any  plans  to  implement  special  package  to  develop/improve  the Handloom Sector in India at par with MSME Sector; and
- (d) if so, the details thereof and if not, the reasons therefor?

## उत्तर

ANSWER

## वस्त्र मंत्री ( श्री पीयूष गोयऱ )

MINISTER OF TEXTILES (SHRI PIYUSH GOYAL)

- (a) to (d):A statement is laid on the Table of the House.

## Statement referred to in reply to part (a) to (d) of the Lok Sabha Starred Question No.*179 for 30.07.2021

(a) & (b): The Government has no such proposal under consideration for providing subsidy to the handloom weavers on finished products. However, to encourage handloom agencies for sale of finished products, the Ministry has Marketing Incentive (MI) scheme, a sub-component of National Handloom Development Programme (NHDP). The handloom agencies across the country are eligible for MI, to improve competitiveness of handloom products, to invest in infrastructure and improve productivity.

(c) & (d): The  Handloom  Sector  is  unorganized,  rural-centric  and  traditional  in  nature.  To overcome  various  challenges  being  faced  by  handloom  weavers,  the  Ministry  of  Textiles  has  taken following new initiatives to develop and improve the handloom sector: -

- i. To support the handloom sector and to enable wider market for handloom weavers, steps have been taken to on-board weavers on Government e-Market place (GeM) to enable them to sell their products directly to various Government Departments and organizations. So far about 1.50 Lakh weavers have been on-boarded on the GeM portal.
- ii. To  enhance  productivity,  marketing  capabilities  and  ensure  better  incomes,  125  Handloom Producer companies have been formed in different States.
- iii. Under Concessional Credit/Weaver MUDRA Scheme, margin money assistance at 20% of the loan amount subject to a maximum of Rs.10,000/- per weaver, interest subvention upto 7% and credit guarantee on loans for a period of three (3) years are given.
- iv. Design  Resource  Centres  (DRCs)  have  been  set  up  in  Weavers'  Service  Centres  (WSCs)  at Delhi, Mumbai, Varanasi, Ahmedabad, Jaipur, Bhubaneswar and Guwahati, through NIFT with the  objective  to  build  and  create  design-oriented  excellence  in  the  Handloom  Sector  and  to facilitate  weavers,  exporters,  manufacturers  and  designers  access  design  repositories  for sample/product improvisation and development.
- v. To promote marketing of handloom products, Handloom Export Promotion Council (HEPC) has been organizing International Fairs in virtual mode. During the year 2020-21, 12 handloom fairs were organized in virtual mode. Besides, 53 domestic marketing events were also organized in different parts of the country for the weavers to market and sell their products.

Besides,  the  Ministry  of  Textiles  is  also  implementing  the  following  schemes  for  development  of handlooms and welfare of handloom weavers across the country:

1. National Handloom Development Programme (NHDP);
2. Comprehensive Handloom Cluster Development Scheme (CHCDS);
3. Handloom Weavers Comprehensive Welfare Scheme (HWCWS);
4. Yarn Supply Scheme (YSS);

Under the above schemes, financial assistance is provided to the eligible handloom agencies/weavers for raw materials, purchase of upgraded looms & accessories, design innovation & product  diversification,  infrastructure  development,  marketing  of  handloom  products  in  domestic  as well as overseas markets, Mudra loans at concessional rates, etc.