**Summary:**
This document summarizes the response to Lok Sabha Unstarred Question No. 343, addressed to the Minister of Textiles on July 22, 2025, concerning yarn-based cottage industries in Uttar Pradesh. The question inquired about the provision of subsidies to farmers and weavers on yarn purchases from government agencies, reasons for any lack thereof, steps being taken by the Union Government, and the establishment of a monitoring mechanism for transparency and accountability.
The Minister of Textiles, Shri Giriraj Singh, responded that the Ministry of Textiles is implementing the Raw Material Supply Scheme (RMSS) nationwide, including in Uttar Pradesh. The RMSS provides freight reimbursement for transporting all types of yarn, a 15% price subsidy on Hank Yarn (Cotton Hank, Domestic Silk, Woollen, Linen Blended Yarn on Natural fibres), and support for yarn depot/warehouse operating expenses. The price subsidy is disbursed via Direct Benefit Transfer (DBT) to beneficiaries' Aadhaar-linked bank accounts. The Ministry has received no complaints regarding the non-receipt of price subsidies.
The National Handloom Development Corporation Ltd. (NHDC) serves as the Implementing Agency (IA) for the RMSS. An Enterprise Resource Planning (ERP) system is utilized for information management and monitoring of the scheme.
Key Entities Referenced
MRS RUCHI VIRA: Member of Parliament who asked the question related to yarn based cottage industries.
Minister of TEXTILES: The government official responsible for answering questions related to the textile industry.
Uttar Pradesh: State in India where farmers and weavers are allegedly not receiving subsidies.
SHRI GIRIRAJ SINGH: Minister of Textiles who provided the answer to the Lok Sabha question.
Ministry of Textiles: Government agency responsible for implementing policies related to the textile industry in India.
Raw Material Supply Scheme: A scheme implemented by the Ministry of Textiles to provide freight reimbursement and price subsidy for yarn.
Direct Benefit Transfer: Mode of transferring price subsidy to Aadhar linked bank accounts of beneficiaries.
National Handloom Development Corporation Ltd.: Implementing Agency for the Raw Material Supply Scheme (RMSS).
LOK SABHA
UNSTARRED QUESTION NO. 343
TO BE ANSWERED ON 22.07.2025
YARN BASED COTTAGE INDUSTRIES
343. MRS RUCHI VIRA:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the farmers and weavers involved in yarn based small and cottage industries in various areas
of Uttar Pradesh and not getting subsidy on purchase of yarn from Government agencies;
(b) if so, the reasons therefor;
(c) the details of the steps being taken by the Union Government in this regard; and
(d) whether the Government proposes to establish any monitoring mechanism to ensure transparency and
accountability of this scheme and if so, the time by which it is likely to be in place?
उत्तर
ANSWER
वस्त्र मंत्री (श्री गिररराज स हं )
MINISTER OF TEXTILES
(SHRI GIRIRAJ SINGH)
(a) to (c): Government of India, Ministry of Textiles is implementing Raw Material Supply Scheme
(RMSS) across the country including Uttar Pradesh for providing freight reimbursement for
transportation of all types of yarn, 15% Price Subsidy on Hank Yarn (Cotton Hank, Domestic Silk,
Woollen, Linen & Blended Yarn on Natural fibres) and yarn depots/warehouses operating expenses.
Further, the price subsidy is being made through Direct Benefit Transfer mode to Aadhar linked bank
accounts of beneficiaries. As far as not getting price subsidy is concerned, no such complaint has been
received by this Ministry.
(d): National Handloom Development Corporation Ltd., (NHDC) is the Implementing Agency (IA)
for RMSS. An online platform namely Enterprise Resource Planning (ERP) system is used by them for
information and monitoring of the scheme.
****