Govt Strengthens Handloom Sector With Raw Material & Export Support

New Delhi, Dec 12 (KNN) The government has taken several measures to ensure raw material availability and enhance export competitiveness for the handloom sector, Minister of State for Textiles Pabitra Margherita said in written reply to a question in the Rajya Sabha.

Under the Raw Material Supply Scheme (RMSS),  the Minister said that freight charges for all types of yarn are reimbursed, and a 15 per cent price subsidy is provided on cotton hank yarn, domestic silk, wool, linen, and blended natural fibre yarns, subject to specified quantity limits. 

For the financial year 2025–26, the total budget allocation for RMSS was Rs 190.99 crore, of which Rs 170.74 crore had been released as of 8 December 2025.

To counter the impact of U.S. tariffs and strengthen export performance, the Minister said that government has implemented a range of fiscal and tax measures. 

These include full exemption of customs duty on cotton imports until December 2025, extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until March 2026, and GST reforms aimed at simplifying the tax structure, ensuring fibre neutrality, and reducing rates on handloom products, garments, and logistics vehicles. 

These interventions are designed to enhance cost efficiency and boost domestic demand.

In addition, the Reserve Bank of India (RBI) has announced export-related relief measures, including extended export realisation and shipment periods, loan moratoriums, and longer credit durations to ease liquidity pressures. 

The Ministry, through the Handloom Export Promotion Council (HEPC), has also supported market diversification by facilitating exporter participation in international fairs.

Despite global challenges, handloom exports have shown resilience, rising from Rs 101.46 crore in September 2024 to Rs 110.29 crore in September 2025, indicating steady growth and stability within the sector.

(KNN Bureau)