Mill Gate Price Subsidy Scheme supports handloom weavers, cooperatives, and NGOs by offering a 15% subsidy on yarn purchases from NHDC depots and freight reimbursement between 1% and 8.5% to ensure affordable access to raw materials.
Mill Gate Price Subsidy Scheme - Introduction
Mill Gate Price Subsidy Scheme, introduced in 2007 by the Gujarat government, empowers handloom weavers, cooperatives, and NGOs with financial support for raw material procurement. This scheme ensures that you receive high-quality yarn at affordable rates by providing a 15% subsidy on purchases made through NHDC-recognized depots. to further reduce your operational costs, it also offers freight reimbursement ranging from 1% to 8.5%, depending on the type of material and region. by streamlining your access to essential resources, this scheme aims to sustain your livelihood and improve the quality of your handloom products. You can apply for these benefits through your local District Industries Centre (DIC).
Key Information
| Scheme Name | Mill Gate Price Subsidy Scheme |
| Level | State |
| Scheme for | Individual |
| Beneficiary States | Gujarat |
| Category | Business & Entrepreneurship, Social welfare & Empowerment |
| Target Beneficiaries | Joint Liability Groups (JLGS), Self Help Groups (SHGS), NGO |
| Sub Category | Start-up, Entrepreneurship, Credit Linked Subsidy, Financial assistance |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Industries and Mines Department |
| Tags | Yarn, Subsidy, Silk, Jute, Freight, Handloom |
Benefits
Yarn Purchase Subsidy
You receive a 15% subsidy on the total value of yarn bought from your authorized NHDC-recognized depots.
Freight Reimbursement
| Yarn Type | Plain Area | Hills/Remote | North-East |
|---|---|---|---|
| Non-Silk/Jute Yarn | 1.00% | 1.75% | 3.00% |
| Silk Yarn | 1.00% | 1.25% | 1.50% |
| Jute/Jute Blended | 7.00% | 8.00% | 8.50% |
*An additional 2.5% is applicable for depot operating charges.
Disbursement Mode
The government credits your 15% subsidy directly into your bank account via RTGS or e-payment. Freight reimbursement claims are processed individually as separate transactions.
Eligibility
To qualify for this support, you should meet the following criteria:
1. You should be a registered handloom cooperative society, NGO, or a recognized development center.
2. You should purchase your yarn specifically from NHDC-recognized depots, such as the Gujarat State Handloom & Handicrafts Development Corporation.
Application Process
Offline Application Process
Step 1: Purchase your required yarn from any NHDC-recognized depot (e.g., depots in Ahmedabad or Surendranagar).
Step 2: Visit the District Industries Centre (DIC) in your district and obtain the official application form.
Step 3: Fill out every mandatory field carefully and attach copies of your required documents. Remember to self-attest these copies if needed.
Step 4: Submit your completed application and documents to the designated staff at the DIC. Collect an acknowledgement receipt for your records to track your application status later.
Documents
To process your application smoothly, please keep these documents ready:
1. Original purchase invoices from NHDC-recognized depots.
2. Valid proof of registration for your cooperative society or NGO.
3. Original freight receipts for your reimbursement claims.
4. Your bank account details to receive the subsidy via e-payment.
References
Incentives for Cottage And Rural Industries
FAQ's
Who is eligible to apply for the yarn subsidy under this scheme?
Handloom cooperative societies, NGOs, and development centers purchasing yarn from NHDC-recognized depots qualify for this support.
What percentage of subsidy is provided on yarn purchases?
A 15% subsidy is offered on all yarn purchased from approved NHDC depots.
From which depots must the yarn be purchased to qualify for the subsidy?
You should purchase yarn from official NHDC-recognized centers, such as the Gujarat State Handloom & Handicrafts Development Corporation.
Is there any freight reimbursement available under this scheme?
Yes, the scheme provides freight reimbursement ranging from 1% to 8.5%, depending on your yarn category and region.
How is the freight reimbursement percentage determined?
The rate depends on the yarn type (such as jute or silk) and your geographic location (plain, hill, or North-East regions).
What additional charges are applicable for depot operations?
An extra 2.5% is charged towards depot operating expenses.
How is the 15% subsidy amount disbursed to beneficiaries?
Your subsidy is transferred directly into your registered bank account via RTGS or e-payment.
Is the freight reimbursement processed along with the yarn subsidy?
No, the government processes freight reimbursement as a separate claim.
What documents are required to claim the yarn purchase subsidy?
You should submit your purchase invoices from NHDC-recognized depots and provide your verified bank account details.
What proof is needed for freight reimbursement claims?
You must provide valid freight receipts with your application.
Do applicants need to submit registration proof?
Yes, all cooperative societies and NGOs should provide their valid registration documents.
Are individual weavers eligible for this subsidy?
No, this specific scheme is only designed for handloom cooperatives, NGOs, and development centers.