Mill Gate Price Subsidy Scheme

The Mill Gate Price Subsidy Scheme was introduced in 2007 and is run by the Commissioner of Cottage and Rural Industries under the Industries & Mines Department, Government of Gujarat. Its purpose is to supply handloom weavers with quality yarn at subsidised rates, making raw material more affordable and lifting the quality of finished goods.

Two forms of support are available: freight reimbursement of 1–8.5%, varying with the type of yarn and the region, and a 15% subsidy on yarn bought from depots recognised by NHDC. Handloom cooperatives, NGOs and development centers qualify as beneficiaries. Delivery happens through District Industries Centers (DICs).

The scheme is directed at keeping economically weak weavers in work, with particular attention to those from Scheduled Castes. By lowering what weavers must spend on raw materials, it improves the economics of handloom weaving and helps sustain traditional crafts and skills.

For rural industries and communities that depend on handloom production, the scheme functions as a support mechanism that advances both economic empowerment and cultural heritage. Its targeting of economically vulnerable groups, Scheduled Castes above all, reflects social upliftment objectives and contributes to inclusive economic development across the state.

- **Step 1: Purchase of yarn**: To begin, the applicant must buy the necessary yarn from depots that are recognised by the NHDC. These depots verify the quality and authenticity of the yarn that qualifies for the subsidy.

- **Step 2: Collect the application form**: Go to the District Industries Centre (DIC) for your district. Ask the designated staff member for a hard copy of the prescribed application form. As the application process is offline, this form is usually not made available online.

- **Step 3: Fill in the form and attach documents**: Complete every mandatory field on the application form with care. Make sure all required supporting documents are enclosed, including proof of yarn purchase, the registration documents of the cooperative or NGO, and any other relevant identification or operational proofs. Self-attest document copies wherever required.

- **Step 4: File the application**: Hand over the duly filled and signed application form, together with all mandatory documents, to the designated staff at the DIC. Make sure you file it within any prescribed period that the DIC may communicate.

- **Step 5: Collect the acknowledgement**: Upon submission, always ask the concerned staff member for a receipt or acknowledgement and keep it. This acts as proof of your application and can be used to track its status.

Applications are assessed mainly through an administrative review carried out at the District Industries Centre (DIC). Once an application is filed, DIC staff examine the form and the accompanying documents to confirm eligibility — this covers the applicant's entity type as well as evidence of yarn purchased from depots recognised by NHDC. The application is then checked against the scheme guidelines for compliance.

Where every criterion is satisfied and the documents stand verified, the yarn purchase subsidy is taken forward for direct credit through RTGS/e-payment, while freight reimbursement is processed under a separate route. Selection is essentially a compliance check, not a competitive exercise.