Home / Knowledge / News / Textiles / CCEA gives nod to continuation of MGPS with new name
CCEA gives nod to continuation of MGPS with new name
10
Jan '14
The Cabinet Committee on Economic Affairs (CCEA) has approved the continuation of the Mill Gate Price Scheme (MGPS), along with 10 percent subsidy component with modifications. The scheme is now renamed as the Yarn Supply Scheme (YSS).
 
During the 12th Five-Year Plan period (2012-17), the outlay for YSS would be Rs. 4.43 billion, according to a press release.
 
Under the scheme yarn at subsidized prices will be provided to weavers from underprivileged sections and vulnerable groups, to enable them to compete with the powerloom and mill sector.
 
During the 12th Plan period, the Government has set a target to supply 350.6 million kg yarn worth Rs. 43.64 billion under the YSS. The beneficiaries under YSS have been fixed to serve all 2.3 million handloom units operating in the country, the release said.
 
At present, 10 percent subsidy on mill gate price is payable to cotton yarn and domestic silk with quantity restrictions. Under the new scheme, for cotton yarn up to and including 40s, restriction would be 30 kg per loom per month, and for yarn above 40s, the restriction would be 10 kg per loom/month. However, for domestic silk, quantity restriction would remain unaltered at four kg per loom/month.
 
Along with hank yarn and domestic silk, 10 percent subsidy will also be applicable to wool for individual weavers and weavers’ cooperative societies. For woollen yarn below 10s NM, the maximum limit would be 50 kg per loom/month, for woollen yarn 10s to 39.99s NM it would be 10 kg per loom/month, and for woollen yarn 40s NM and above the limit would be 4 kg per loom/month.
 
In addition, the National Handloom Development Corporation (NHDC) has proposed to open distribution centres/warehouses in various parts of the country to increase the coverage of primary weavers’ societies and individual weavers and also to introduce cash sale of yarn, especially to small weavers instead of payment of advance to precede indenting and supply of yarn with a gap of about 15 to 45 days. Initially, 10 such distribution centres would be set up by the NHDC.
 
Further, service charges to NHDC are proposed to be enhanced by 0.5 percent in all the states, the statement said.
 
The Government of India has been implementing MGPS since 1992 for making yarn available to handloom weavers at mill gate price by reimbursing transportation charges to depot operating agencies, which are primary weavers’ cooperative societies, apex societies and other handloom organizations.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Nine West

Fashion | On 17th Jun 2018

ABG wins bid in Nine West Holdings auction

Authentic Brands Group (ABG), owner of a global portfolio of...

Courtesy: Kreussler

Textiles | On 17th Jun 2018

USDA certifies Kreussler's solvent as biobased

The US Department of Agriculture (USDA) has certified Kreussler's...

Courtesy: ITUC

Textiles | On 17th Jun 2018

Democratic space shrink & corporate greed are rising: ITUC

Shrinking democratic space for working people and unchecked corporate ...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search