Nagaland Chief Minister's Yarn Bank Scheme

Scheme Introduction: A Brief Overview

The Chief Minister's Yarn Bank Scheme is a newly launched scheme of the Government of Nagaland aimed at making quality natural yarn more affordable and accessible to handloom weavers across the state. Chief Minister Dr. Neiphiu Rio virtually launched the scheme on 7 August 2026 at the Chief Minister's Residential Complex, Kohima, on the occasion of the 12th National Handloom Day.

The scheme has been introduced to address the difficulties faced by weavers in procuring quality raw materials, particularly the high transportation costs incurred by artisans who have to travel long distances to obtain yarn. By establishing a centralised Yarn Bank, the government aims to reduce the cost and difficulty of raw-material procurement, improve the productivity and incomes of handloom artisans, and provide a more reliable supply of natural yarn.

The Yarn Bank has been established at the District Industries Centre (DIC), State Industrial Park, Toluvi, Dimapur. Eligible weavers will be able to procure natural yarn at mill-gate prices with a 15% subsidy from the State Government. The yarn covered under the scheme includes cotton, eri silk, muga silk, bamboo fibre and other natural fibre blends.

The scheme also forms part of the government's broader effort to strengthen Nagaland's handloom and textile sector, support women and other artisans dependent on weaving, preserve the traditional textile heritage of the Naga people and create sustainable economic opportunities through the handloom sector. The government expects the Yarn Bank to benefit around 5,000 to 10,000 weavers annually. The scheme is being implemented under the National Handloom Development Programme (NHDP) in accordance with the Ministry of Textiles' Raw Material Supply Scheme (RMSS) guidelines.

Since the scheme was launched only recently, on 7 August 2026, detailed operational information such as the complete application procedure, document requirements, Yarn Pass Book issuance process and other beneficiary-level conditions has not yet been formally made available. The information currently available is therefore limited to the provisions announced by the government at the time of launch.

Scheme Benefits

The main benefit is the availability of natural yarn at mill-gate prices, supported by a 15% subsidy from the Government of Nagaland.

The Yarn Bank will provide natural yarn such as:

• Cotton
• Eri silk
• Muga silk
• Bamboo fibre
• Other natural fibre blends

This arrangement is intended to reduce the financial burden on weavers and make quality raw materials available through a centralised facility rather than requiring artisans to travel long distances for procurement.

Eligibility Requirements

• According to the eligibility details announced at the launch, the scheme is open to active handloom weavers above 18 years of age.
• Individual weavers must possess a valid Handloom Mark Identity Card and register through the designated mobile application.
• The applicant's details will be verified against the State Handloom Database and census records to establish eligibility.
• Registered cooperative societies with a minimum of 10 members are also eligible under the scheme.
• Eligible weavers holding a Yarn Pass Book will be able to procure yarn directly from the Yarn Bank.
• The detailed procedure for obtaining a Yarn Pass Book and other supporting requirements has not yet been fully specified.

Yarn Pass Book

The government has stated that eligible weavers holding a Yarn Pass Book can procure yarn directly from the Yarn Bank.

However, the launch information does not yet specify the complete procedure for:

• Issuing a new Yarn Pass Book
• Updating or renewing an existing pass book
• Documents required for obtaining one
• Yarn purchase limits
• Frequency of purchases
• Other conditions attached to the pass book.

These operational details are expected to be clarified through subsequent instructions from the concerned department.

Yarn Supplied Under the Scheme

The Yarn Bank will make the following natural yarns and fibre blends available:

• Cotton
• Eri silk
• Muga silk
• Bamboo fibre
• Other natural fibre blends

How the Yarn Bank Will Work

The Yarn Bank will function as a centralised source of natural yarn for eligible handloom weavers in Nagaland. It has been established at the District Industries Centre, State Industrial Park, Toluvi, Dimapur.

The process, as announced by the government, will work broadly as follows:

• Yarn procurement: Natural yarn such as cotton, eri silk, muga silk, bamboo fibre and other natural fibre blends will be made available through the Yarn Bank.
• Mill-gate pricing: Yarn will be supplied at mill-gate prices, while the State Government will provide a 15% subsidy to make the raw material more affordable for eligible weavers.
• 15% government subsidy: The Government of Nagaland will provide a 15% subsidy, making the yarn more affordable for eligible weavers.
• Beneficiary access: Eligible weavers holding a Yarn Pass Book will be able to procure yarn directly from the Yarn Bank.
• Centralised distribution: Instead of individual weavers travelling long distances to purchase raw materials, the Yarn Bank will provide a more organised and reliable channel for yarn procurement.
• The government has stated that the distribution system will focus on transparency, reliability and efficient supply. The detailed procedure for registration, yarn allotment, purchase limits and collection or delivery arrangements has not yet been announced.

Required Documents

As the detailed guidelines for the Chief Minister's Yarn Bank Scheme have not yet been released, the final list of mandatory documents is still awaited. Based on the nature of the scheme, applicants may be expected to provide documents such as:

• Identity proof
• Proof of residence in Nagaland
• Handloom/weaver identification or Yarn Pass Book
• Passport-size photograph
• Mobile number
• Other documents required for beneficiary verification

These documents are indicative and not yet officially confirmed as mandatory under the scheme. Applicants should check the final guidelines issued by the Department of Industries & Commerce, Government of Nagaland before submitting an application.

Steps to Apply

The detailed application process for the Chief Minister's Yarn Bank Scheme is yet to be announced by the Government of Nagaland. At present, the government has confirmed that eligible weavers with a Yarn Pass Book will be able to purchase yarn directly from the Yarn Bank.

Once the registration process is notified, applicants can be expected to:

• Check their eligibility as a handloom weaver.
• Keep their Yarn Pass Book and other required documents ready.
• Complete registration through the official process notified by the Department of Industries & Commerce.
• Complete verification, if required.
• Procure the available natural yarn from the Yarn Bank at the subsidised rate after registration or approval.

Funding and Implementation

• The Yarn Bank facility has been established with funding allocated under the Chief Minister's Innovative Fund 2025–26.
• The scheme is being implemented under the National Handloom Development Programme (NHDP) in accordance with the Ministry of Textiles' Raw Material Supply Scheme (RMSS) guidelines.

Implementation and Monitoring

The scheme is being implemented through the Department of Industries & Commerce, Government of Nagaland.

The government has also announced measures intended to improve transparency and accountability in the operation of the Yarn Bank. These include:

• A real-time digital dashboard for inventory management;
• Subsidy tracking;
• Regular third-party audits;
• District-level monitoring committees;
• A toll-free helpline; and
• A grievance redressal mechanism.

The specific operating procedures and timelines for these mechanisms have not yet been detailed publicly.

Relevant Links

• Official Website of Department of Industries & Commerce Governmeent of Nagaland
• National Handloom Development Programme(NHDP) Details
• Raw Material Supply Scheme(RMSS) Details

Contact Information

Department of Industries & Commerce, Government of Nagaland

• Address: Department of Industries & Commerce, Government of Nagaland, Top Floor, Nagaland Civil Secretariat, Kohima – 797001, Nagaland
• Email: [email protected]

Directorate of Industries & Commerce, Nagaland

• Address: Near DUDA Guest House, IG Stadium Road, Kohima – 797001, Nagaland
• Email: [email protected], [email protected]

Contact Details of District Industries Centres in Nagaland