National Level Evaluation Study in15 Sampled States on Implementation of the Yarn Supply Scheme, Office of the Development Commissioner for Hand looms Ministry of Textiles Government of India.
Handloom weaving is a labour intensive occupation spread throughout the country, mostly in villages. The handloom sector employs over 35.23 lakh persons in weaving and allied activities (as per handlooms census of India 2019-20). The main raw material used by this sector is yarn, which is being produced by spinning mills. The yarn trade was controlled by the traders and most of the handloom weavers were dependent on the traders for their yarn requirement. This resulted in unchecked escalation in yarn prices and shortage in its availability. Therefore, Government of India had formed a national level apex body to overcome those problems by effective intervention in the yarn market and therefore, setting up the National Handloom Development Corporation (NHDC) Ltd. The main objective of NHDC is to make yarn available to weavers throughout the country, yarn of the appropriate and required quality, through a well-ordered system. There is a gross mismatch between yarn available and demand. The yarn manufactured in a particular place is based on the quality of cotton available in and around that place, while the yarn consumed by the weavers in a particular area is based on the consumption pattern prevailing in that area. Therefore, in most of the cases, weavers have to depend on the yarn produced in other areas which involves transportation of yarn from one place and it increases the cost of yarn considerably putting the weavers at a disadvantageous position. Keeping the above in view, Government of India introduced a scheme for Supply of yarn at the price in which it is available at the Mill Gate in 1992. Under the scheme the transportation expenses involved in supply of yarn are reimbursed by the Government of India. The nodal agency for the implementation of this scheme is NHDC. The Government of India has been implementing MGPS since 1992 for making yarn available to handloom weavers at mill gate price by reimbursing transportation charges to depot operating agencies, which are primary weavers cooperative societies, apex societies and other handloom organizations. The scheme covers the weavers who are under privileged as also vulnerable groups, by providing them subsidized yarn so that they can compete with the power loom and mill sector. The scheme is now renamed as the Yarn Supply Scheme (YSS) and providing supply throughout the country to the eligible handloom weavers / agencies to facilitate regular supply of yarn to the Handloom sector. Further to facilitate handloom to compete with the mill sector, 10% price subsidy is provided under YSS on cotton, domestic silk,, woolen yarn and linen yarn in hank form with quantity restriction.
Therefore, the Office of Development Commissioner (Handloom), Ministry of Textiles, Government of India is interested to evaluate the effectiveness of the scheme by engaging an independent consulting and survey agency with the help of pre-decided parameters. The evaluation will cover 15 sampled states.
YSS has been approved for implementation during period from 2017-18 to 2019 -20 with following components:
Supply of yarn at Mill Gate Price
10% Price Subsidy of Hank Yarn
At present yarn is supplied on subsidized rates in 30 state / UTs under YSS.The study objective of the assignment is to evaluate the effectiveness of the YSS by way of measuring with the help of following parameters:
Performance of Scheme based on the output / outcome indicators to understand the overall impact on the handloom sector as under:
i. Effectiveness of the scheme by way of benefiting weavers and if so to what extent it is successful in terms of improvement of net earnings over the period
ii. How far the scheme has been instrumental in creating job opportunities.
iii. How far the scheme has benefited weavers to get easy access of good quality yarn at their door steps in sustenance of their employment.
iv. How far the scheme has been instrumental in arresting migration of weavers to other profile / business activity.
v. Whether the scheme has enhanced the income of weavers by getting subsidy under the scheme.
vi. Whether the regular supply has helped in registering increased production.
vii. To assess the satisfaction level of the various customer agencies/institutions who are procuring yarn under YSS through NHDC.
viii. To study the general perception & expectation of the customers and the extent to which the same have been met.
ix. The adequacy of coverage of the NHDC is sufficient to meet the requirements of weavers organization on the satisfaction level on the following parameter
It will be a 360-degree evaluation study where the information will be collected from all stakeholders to measure the effectiveness of the YSS. The evaluation study shall encompass the following tasks:
Identifying the target respondents / segment in specific location / markets
Conduct weavers survey to understand the impact of the scheme in terms of change in financial status / behavior
Conduct sample survey amongst depots / warehouses as well as spinning mills with whom NHDC has business relationship
In addition to that it is proposed to interview all the stakeholders to have cross-sectional views of the effectiveness of the scheme.