Sarkari Yojana

Mill Gate Price Subsidy Scheme

Gujarat
Quick Summary: Gujarat's Mill Gate Price Subsidy Scheme lets handloom cooperatives, NGOs and development centers buy yarn from NHDC-recognized depots with a 15% subsidy. Freight costs are also reimbursed at 1–8.5%, depending on the type of yarn and the region.

About Mill Gate Price Subsidy Scheme

Handloom weavers in Gujarat can obtain good-quality yarn at reduced prices through the “Mill Gate Price Subsidy Scheme”, started in 2007 and run by the Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, with the goal of keeping inputs affordable and lifting product quality. Two forms of support are offered: reimbursement of freight (1–8.5% depending on the kind of yarn and the region) and a 15% subsidy on yarn bought from NHDC-recognized depots. Handloom cooperatives, NGOs, and development centers qualify. Delivered through District Industries Centers (DICs), the scheme works to keep economically weak weavers, particularly those from Scheduled Castes, in steady employment.

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Mill Gate Price Subsidy Scheme, applicants must satisfy the following conditions:

✅

Only a handloom cooperative society, NGO, or development…

Only a handloom cooperative society, NGO, or development center can apply.

✅

Yarn has to be bought from NHDC-recognized depots,…

Yarn has to be bought from NHDC-recognized depots, such as the Gujarat State Handloom & Handicrafts Development Corporation.

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Mill Gate Price Subsidy Scheme provides the following benefits to eligible applicants:

Yarn Purchase Subsidy Yarn bought from NHDC-recognized depots attracts a 15% subsidy. Freight Reimbursement

✅

For Non-Silk/Jute Yarn, the rate is 1.00% in…

For Non-Silk/Jute Yarn, the rate is 1.00% in a Plain Area, 1.75% in Hills/Remote areas and 3.00% in the North-East.

✅

Silk Yarn is reimbursed at 1.00% in a…

Silk Yarn is reimbursed at 1.00% in a Plain Area, rising to 1.25% for Hills/Remote and 1.50% for the North-East.

💰

Jute/Jute Blended Yarn carries the highest rates

Jute/Jute Blended Yarn carries the highest rates: 7.00% in a Plain Area, 8.00% in Hills/Remote and 8.50% in the North-East. On top of this, depot operating charges of 2.5% apply. Disbursement Mode The 15% subsidy is paid through RTGS/e-payment. Freight reimbursement is handled as a separate process.

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

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Invoices for purchases made at NHDC-recognized depots

Invoices for purchases made at NHDC-recognized depots.

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Registration proof, in the case of Cooperatives/NGOs

Registration proof, in the case of Cooperatives/NGOs.

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Receipts for freight, needed when claiming reimbursement

Receipts for freight, needed when claiming reimbursement.

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Bank particulars for receiving the subsidy

Bank particulars for receiving the subsidy.

Ensure all documents are valid and, where required, duly attested before submitting your application.

How to Apply

Offline Application

Applicants can apply for Mill Gate Price Subsidy Scheme through the offline application process outlined below.

1️⃣

Begin by buying yarn from an NHDC-recognized depot…

Begin by buying yarn from an NHDC-recognized depot (for instance, there are 12 depots in Surendranagar and 1 in Ahmedabad).

2️⃣

Go to the District Industries Centre (DIC) for…

Go to the District Industries Centre (DIC) for your district and ask the designated staff for a hard copy of the application form in the prescribed format.

3️⃣

Complete every mandatory field of the form and…

Complete every mandatory field of the form and attach copies of the required documents, self-attesting them where needed.

3️⃣

Hand over the signed, completed form with its…

Hand over the signed, completed form with its documents to the designated DIC staff, within the prescribed period if one applies.

4️⃣

Ask the staff member who accepts your application…

Ask the staff member who accepts your application for a receipt or acknowledgement.

Ensure all required documents are ready before starting the application process.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References