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Yarn Bank Scheme

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Dion Global

03 Jan 2019

To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India with effect from 01.04.2017 to 31.03.2020. The Scheme provides interest free corpus fund up to Rs.2.00 crore to the Special Purpose Vehicle (SPV)/Consortium formed by powerloom weavers to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers to avoid middleman and local supplier's brokerage charge on sales of yarn.

There is a 1% increase in powerloom fabric production. The estimated production of powerloom fabric during 2018-19(Apr-Oct) is 22781 Million Square Meters (MSM) which was 22539 MSM during the corresponding period of 2017-18.