Indian govt unfolds package to support handloom weavers

01 Dec '11

2 min read

As part of the Handloom package, Government has announced a six fold strategy to offer financial support to handloom weavers. Under the Scheme, weavers will be eligible to margin money assistance of Rs. 4200 to Rs. 5400 per head and interest subsidy of 3 percent on loans for a period of 3 years and Weavers Credit Cards will be issued to eligible individual weavers to enable them to access loans upto Rs. 2 lakh in a period of 3 years without any collateral security.

Government has convened stakeholders meetings at Ministerial level to assess the slowdown in the industry. The Cotton Advisory Board (CAB) and Cotton Yarn Advisory Board (CYAB) meetings held on 15th November 2011 assessed domestic mill consumption for 2011-12 at 210 lakh bales down from 240 lakh bales of cotton; and cotton yarn production down from 3900 million kgs to 3200 million kgs indicating the slowdown in textiles industry.

Government is considering industry representations for a moratorium on loans for capital intensive requests and special relaxation in RBI's prudential norms to avoid asset reclassification or additional provisioning to address the textile industry slowdown.

This information was given by Smt. Panabaaka Lakshmi, Minister of State for Textiles in written reply to a question in Rajya Sabha.

Ministry of Textiles

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