Lok Sabha Question No. 595 (UNSTARRED), answered on 2026-02-03
Subject: Traditional Handloom Production
Ministry: TEXTILES
Asked by: Shri Pushpendra Saroj

(a) & (b):

follows:

## TRADITIONAL HANDLOOM PRODUCTION

## 595. SHRI PUSHPENDRA SAROJ:

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

- (a) the present customs and tax structure applicable to raw silk and silk yarn used in traditional sectors such as Banarasi silk and Chikankari;
- (b) whether any review has been undertaken in view of the lower effective duty on imported finished synthetic fabrics under recent trade agreements, if not, the reasons therefor;
- (c) the steps taken by the Government to protect the livelihood of weavers and artisans in Uttar Pradesh who are shifting away from pure silk to cheaper synthetic yarn due to higher input costs, and the support provided to sustain traditional handloom production; and
- (d) the amount of unutilised Input Tax Credit (ITC) pending with Micro, Small and Medium Enterprises (MSME) units engaged in Banarasi silk and Chikankari work in, and the impact of delayed ITC refunds on their working capital, district-wise?

उत्तर

ANSWER

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा ) THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

The present customs duty and tax structure applicable to raw silk and silk yarn is as

|           | Customs Duty   | GST   |
|-----------|----------------|-------|
| Raw Silk  | 16.5%*         | NIL   |
| Silk Yarn | 16.5%*         | 5%    |

*(Basic Customs Duty (BCD) of 15% & Social Welfare Surcharge (SWS) of 10% of BCD)

The  current  customs  duties  are  prescribed  in  order  to  provide  adequate  level-playing  field  for  the sericulture farmers and the domestic industry vis-à-vis imports.

- (c): The Ministry of Textiles is implementing following schemes to protect the livelihood of weavers and artisans and to sustain traditional handloom production across the country including Uttar Pradesh:
1. National Handloom Development Programme(NHDP);
2. Raw Material Supply Scheme(RMSS);

Under NHDP, financial assistance is provided to eligible handloom agencies/workers for procurement of upgraded looms & accessories, solar lighting units, construction of workshed, product diversification & design innovation, technical and common infrastructure, publicity and brand development through India Handloom  Brand  (IHB),  Handloom  Mark  (HLM)  and  GI  tag,  e-commerce  facilities,  marketing  of handloom products in domestic/overseas markets, concessional loans under weavers' MUDRA scheme and social security etc.

Under the Raw Material Supply Scheme, the Ministry provides transport subsidy for transportation of all types of yarn to the doorstep of the beneficiaries and 15% Price Subsidy on Cotton Hank yarn, Domestic Silk, Woollen & Linen yarn and blended yarn of natural fibres. This scheme provides support for quality inputs to handloom weavers, aiming to reduce the production costs.

Under the above schemes, the following supports have been provided to weavers of Uttar Pradesh during the last three years and current year:

- i. 34 Handloom Clusters provided financial assistance of Rs.22.19 crore.
- ii. 30 marketing events organised to facilitate and promote sales of Handloom Products.
- iii. 13  Handloom  Producer  companies  have  been  formed  to  enhance  productivity,  marketing capabilities and facilitate better incomes.
- iv. 8.23  lakh  kg  of  subsidized  yarn  supplied  under  Transport  subsidy  &  Price  subsidy;  1,18,339 handloom organizations/weavers benefitted.

(d): As in GST return, there is no identifier for a registered person working in a specific product or industry.

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