The Raw Material Supply Scheme (RMSS) is being implemented across the country to ensure the availability of yarn to handloom weavers. Under the scheme, freight charges are reimbursed for all types of yarn, and a 15% price subsidy is provided on cotton hank yarn, domestic silk, wool, linen yarn, and blended yarns made from natural fibres, subject to specified quantity limits.
During the financial year 2025–26 the total budget estimate for RMSS was ₹190.99 crore, of which ₹170.74 crore had been released as of 08.12.2025.
The Government has introduced a comprehensive set of measures to mitigate the impact of U.S. tariffs and revive export competitiveness. Key interventions include full exemption of customs duty on cotton imports till December 2025 to control input costs, extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme till March 2026, and major GST reforms that simplified the tax structure, ensured fibre neutrality, and reduced rates on handloom products, garments, and logistics vehicles.
These fiscal and tax measures aim to enhance cost efficiency and domestic demand within the textile and handloom sector. Additionally, the RBI announced export reliefs such as extension of export realization and shipment periods, loan moratoriums, and extended credit durations to ease liquidity pressures. The Ministry of Textiles, through HEPC, also promoted market diversification by supporting exporter participation in international fairs.
Despite global challenges, handloom exports registered growth from ₹101.46 crore in September 2024 to ₹110.29 crore in September 2025, indicating stable performance and resilience.
This information was provided by THE MINISTER OF STATE FOR TEXTILES PABITRA MARGHERITA in a written reply to a question in Rajya Sabha.
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