SUBSIDY PROVIDED TO WEAVERS

**Executive Summary** This document, issued by the Ministry of Textiles and dated December 12, 2025, outlines subsidies and measures for weavers under the Raw Material Supply Scheme (RMSS). The RMSS aims to ensure yarn availability to handloom weavers. It also details steps taken to mitigate the impact of U.S. tariffs and boost export competitiveness, with key deadlines including December 2025 for customs duty exemptions and March 2026 for the RoDTEP scheme. **Key Points / Main Content** * **Raw Material Supply Scheme (RMSS):** * Implemented nationally to ensure yarn availability for handloom weavers. * Reimburses freight charges for all types of yarn. * Provides a 15% price subsidy on specific yarns (cotton hank, domestic silk, wool, linen, blended yarns from natural fibers) within quantity limits. * The budget for 2025-26 for RMSS was ₹190.99 crore, with ₹170.74 crore released as of December 8, 2025. * **Measures to Mitigate Tariffs & Revive Exports:** * Full exemption of customs duty on cotton imports until December 2025. * Extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until March 2026. * Major GST reforms to simplify the tax structure, ensure fiber neutrality, and reduce rates on handloom products, garments, and logistics vehicles. * **Other Fiscal and Tax Measures:** * Aim to enhance cost efficiency and domestic demand in the textile and handloom sector. * RBI export reliefs: extended export realization/shipment periods, loan moratoriums, extended credit durations. * Market diversification promoted via exporter participation in international fairs through HEPC. * **Handloom Export Performance:** * Grew from ₹101.46 crore in September 2024 to ₹110.29 crore in September 2025. **Impact Analysis** **Weavers** * **Impact:** Increased availability of yarn at subsidized rates and reduced freight costs. * **Action Required:** Review scheme details to understand eligibility and application procedures. **Exporters of Handloom Products** * **Impact:** Benefit from customs duty exemptions on cotton imports, RoDTEP scheme extension, and reduced GST rates. Easier access to credit and extended timelines for export activities. * **Action Required:** Understand the revised duty and tax structures, export relief measures, and participate in international fairs. **Textile Industry** * **Impact:** Benefiting from measures aimed at enhancing cost efficiency and domestic demand. * **Action Required:** Understand the revised duty and tax structures, export relief measures, and participate in international fairs.

Key Entities Referenced