Basic raw material for producing a cloth is yarn. A cloth is a product of interlacement of warp and weft yarn on loom. Therefore, yarn is the basic requirement for weaver to produce a woven cloth. The weavers of Manipur are facing challenges to get the right yarn at the right price and time. The State Government provided a subsidy of @20% on the cost of yarn under this scheme. It is over and above the transport subsidy and 10% subsidy provided through the National Handloom Development Corporation Limited (NHDC).
Main objective is to make available the right yarn at subsidized price from the right sources to all handloom weavers so as to sustain the weaving activity in Manipur. Yarn purchased from NHDC in the last five years is given below:
| SR. | YEAR | QTY ( KG) | AMOUNT IN LAKH | ITEMS |
| 1. | 2016-17 | 9222.39 | 40.69 | 2/40s dyed yarn, 2/60s cotton, 2/80s dyed, 80s dyed cotton, Polyester, Acrylic, Silk Yarn |
| 2. | 2017-18 | 17199.60 | 82.05 | |
| 3. | 2018-19 | 10404.36 | 59.11 | |
| 4. | 2019-20 | 17924.10 | 86.90 | |
| 5. | 2020-21 | 18324.98 | 105.86 | |
| Total | 70879.72 | 378.57 |