Home / Knowledge / News / Textiles / Textile ministry increases corpus fund for yarn banks
Textile ministry increases corpus fund for yarn banks
06
Apr '17
Textile ministry's decision to increase the corpus fund for yarn banks in Surat to Rs 2 crore from Rs 1 crore will help powerloom weavers in the city to procure yarn for polyester fabric at concessional rates. Under Power Tex India, a Central government package scheme for powerloom, the ministry also reduced bank guarantee from 50 per cent to 25 per cent.

Two yarn bank in powerloom clusters of Pandesara and Ved Road were sanctioned by the Central government about two years ago. Pandesara Weavers Co-operative Society and Ved Road Art Silk Small Scale Co-operative Federation, two special purpose vehicles (SPV), were also formed by the textiles ministry. The initial corpus fund for these yarn banks was Rs 1 crore.

The yarn banks in Surat were started with an aim to purchase yarn from the open market and sell them to member weavers for a concessional rate. They keep price fluctuations in check and also allow weavers to purchase yarn on credit and pay in instalments. The banks also bring yarn samples from around the world so that the domestic industry can carry out their research and bring out innovative products.

There are over 1 lakh weavers in Pandesara and Ved Road clusters, however, the yarn bank was initially only able to cater to about 100 units, an official from Ved Road Art Silk Small Scale Co-operative Federation told a leading daily. These banks procure yarn from frontline spinners in bulk quantity at discounted rates.

The ministry of textiles announced the yarn bank scheme under Power Tex India with an objective of providing interest free corpus fund to SPV/Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers. It aims to avoid middle man/local supplier’s brokerage charge on sales of yarn.

Registered co-operative societies, trusts, companies set-up under the Companies Act, 1956 as amended and firms set-up under the Limited Liability Partnership Act, 2008 as amended will benefit from this scheme. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search