Mill Gate Price Subsidy Scheme

The Mill Gate Price Subsidy Scheme, introduced in 2007, is administered 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 reduced rates, thereby lowering input costs and enhancing the standard of finished products. The scheme provides freight reimbursement ranging from 1% to 8.5%, depending on yarn type and region, along with a 15% subsidy on yarn bought from depots recognised by NHDC.

Handloom cooperatives, NGOs, and development centres are among the eligible beneficiaries. Implementation is carried out through District Industries Centres (DICs). The scheme is designed to maintain employment for weavers facing economic hardship, with particular attention to those from Scheduled Castes. By easing the financial burden of raw material procurement, it strengthens the viability of handloom weaving and helps preserve traditional skills.

This Gujarat government initiative serves as a support structure for rural industries and communities reliant on handloom production. Its emphasis on economically weaker groups, especially Scheduled Castes, reflects a commitment to social upliftment and inclusive economic progress within the state.

The application is processed entirely offline through the District Industries Centre (DIC). The steps are as follows:

1. Purchase yarn: The applicant must first buy the required yarn from a depot recognised by NHDC. Purchases from these outlets are the only ones considered for the subsidy.
2. Collect the form: A hard copy of the application format must be obtained from the designated staff at the DIC in the applicant's district. The form is not issued online.
3. Fill in and attach documents: All mandatory fields on the form must be completed. Supporting papers, including the yarn purchase receipt, registration documents of the cooperative or NGO, and any other identification or operational proofs, should be attached. Copies must be self-attested where required.
4. Submit: The signed and completed form, along with all required documents, must be handed over to the designated DIC staff within any time limit the DIC may specify.
5. Get an acknowledgement: The applicant should ask for and keep a receipt or acknowledgement from the staff member at the time of submission. This receipt serves as evidence of filing and can be used to track the application.

The assessment is carried out as an administrative review by the District Industries Centre (DIC). Once an application is submitted, DIC staff examine the form and supporting documents to confirm eligibility, such as the applicant’s entity type and evidence of yarn bought from NHDC-approved depots. The submission is then checked against the scheme’s rules to ensure it meets all requirements.

When every condition is satisfied and the paperwork is verified, the yarn purchase subsidy is released through direct credit using RTGS or electronic payment. Freight reimbursement is processed as a separate transaction. This procedure functions as a compliance verification rather than a competitive evaluation.