Introduction: Raw Material Supply Subsidy Scheme

The Raw Material Supply Subsidy Scheme (RMSS) under the Ministry of Textiles, Government of India aims to support the handloom sector by providing affordable and quality yarn to weavers, cooperatives, and handloom producer companies.

At Finraja Consultancy Private Limited, we help artisans, handloom clusters, and textile entrepreneurs secure financial assistance under RMSS without facing complex documentation or rejection risks. Instead of struggling with the subsidy process, businesses can rely on our expertise in funding pattern, project formulation, and CFA (Cost & Financial Analysis) to achieve approval faster.

What Is the Raw Material Supply Subsidy Scheme?

The Raw Material Supply Subsidy Scheme (RMSS), previously known as the Yarn Supply Scheme (YSS), is implemented from 2021-22 to 2025-26.
The scheme is designed to ensure that eligible handloom weavers and cooperatives get quality yarn at subsidized rates, improving their productivity and market competitiveness.

Key Objectives:

• Make quality yarn and blends available to eligible handloom weavers at subsidized rates.
• Stabilize yarn prices and maintain supply consistency.
• Encourage diversification and better product quality by promoting dyed yarn supply.
• Empower women weavers and support rural employment.

Funding Pattern and Financial Structure

Under the RMSS, the Government of India provides two major financial components:

Key Benefits of RMSS for Weavers and Handloom Units

1. Affordable Raw Material Access: 15% price subsidy lowers production costs significantly.
2. Improved Profit Margins: Financial relief enhances competitiveness in both domestic and export markets.
3. Transport Cost Reduction: Freight reimbursement ensures mill-gate pricing across states.
4. Guaranteed Quality: Yarn sourced directly through approved mills and depots via NHDC (National Handloom Development Corporation).
5. Supply Chain Transparency: Real-time monitoring through helps trace yarn availability and subsidy status.
6. Empowerment of Women Weavers: Over 70% of beneficiaries are women, strengthening rural economies.

Eligibility Criteria Under RMSS

The following are eligible for the Raw Material Supply Subsidy Scheme:

• Individual handloom weavers owning functional looms.
• Self-Help Groups (SHGs), Joint Liability Groups (JLGs), and Cooperative Societies.
• Handloom Producer Companies.
• Registered Weavers’ Entrepreneurs involved in weaving and marketing activities.

Finraja Consultancy verifies each applicant’s eligibility, handloom census data, and organizational documentation before submission — ensuring compliance with RMSS guidelines and DC(Handlooms) criteria.

Role of NHDC and Scheme Implementation

The National Handloom Development Corporation (NHDC) is the Nodal Implementing Agency for RMSS.
NHDC coordinates with State Directorates of Handlooms, handloom corporations, and apex societies for subsidy disbursal.

At Finraja Consultancy, our experts maintain direct coordination with state departments and NHDC offices to:

• Validate Yarn Passbook data and loom verification records.
• Monitor fund allocation and reimbursement timelines.
• Facilitate faster processing through ERP and e-Dhaga integration.

Key Features of the Scheme

Financial Assessment and CFA Support by Finraja Consultancy

Most applicants fail in government subsidy schemes due to weak project assessment or documentation gaps.
Finraja Consultancy provides end-to-end financial assessment, project viability analysis, and CFA (Cost & Financial Assessment) to ensure the proposal aligns with RMSS norms.

Our Expert Support Includes:

• Detailed yarn consumption and production cost analysis.
• Funding pattern mapping per handloom cluster.
• Budget structuring for transport and price subsidy utilization.
• Coordination with NHDC and Ministry for compliance verification.
• Documentation, DPR, and portal submissions on client’s behalf.

Why Choose Finraja Consultancy for RMSS Assistance

100% Compliance-Driven Process – All applications align with the Ministry of Textiles guidelines.
End-to-End Support – From eligibility verification to subsidy realization.
Financial Structuring Expertise – Advanced CFA and funding pattern design for optimized subsidy outcomes.
Pan-India Coverage – Assistance for state-level handloom corporations, SHGs, and co-ops.
Track Record of Success – Proven results across multiple subsidy schemes (API-CF, NHB, RMSS, SFURTI, etc.).

How to Get RMSS Subsidy Support Through Finraja Consultancy

Instead of applying independently and facing procedural delays, partner with Finraja Consultancy for complete handholding:

1. Initial Consultation: Understanding your weaving unit, production scale, and yarn needs.
2. Eligibility Check: Verification of handloom census registration, Aadhar, and loom ownership.
3. Financial Mapping: Detailed project cost analysis & subsidy calculation.
4. Proposal Preparation: DPR and financial documentation as per RMSS format.
5. Post-Sanction Assistance: Subsidy tracking, DBT follow-up, and reporting.

Frequently Asked Questions

Q1. What is the subsidy percentage under RMSS?
A: The scheme offers a 15% price subsidy on eligible yarns and a transport subsidy up to 7.5% depending on location.

Q2. Who can apply for the RMSS subsidy?
A: Individual weavers, SHGs, JLGs, co-ops, and registered handloom producer companies can apply through NHDC.

Q3. How does Finraja Consultancy help applicants?
A: We handle end-to-end documentation, CFA, DPR, and subsidy tracking to ensure approval without hassles.

Q4. Is the Raw Material Supply Subsidy Scheme still active?
A: Yes. The scheme is active for the period 2021-22 to 2025-26 under the Ministry of Textiles.

Conclusion

The Raw Material Supply Subsidy Scheme (RMSS) plays a crucial role in empowering India’s handloom sector.
By reducing yarn and transport costs, it directly improves weavers’ income and competitiveness.
However, securing the subsidy requires technical precision, proper financial assessment, and ministry-compliant submissions — areas where Finraja Consultancy Private Limited excels.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.