What's MI

Marketing Incentive

Marketing Incentive (MI) is a support scheme introduced to strengthen the handloom and textile sector by making it more competitive, sustainable, and market-oriented. It is a Government of India sponsored programme, implemented in collaboration with State Governments, with the objective of providing financial assistance to handloom agencies and organizations so that they can cope with rising costs and expand their market presence.

Under this scheme, the allocation of funds is generally shared between the Government of India and the respective State Government on a 50:50 basis. The scheme is designed to empower handloom societies, apex organizations, primary weavers’ cooperatives, and other registered handloom agencies to improve their marketing capacity and viability.

The Marketing Incentive allows beneficiary agencies to:

• Enhance cost competitiveness: Agencies can adjust prices to compete effectively with products from other sectors and regions.
• Support weavers directly: Ensures that handloom weavers receive fair wages and better returns for their work.
• Encourage innovation: Provides scope for improving designs, diversifying product ranges, and meeting changing market demand.
• Upgrade infrastructure: Financial support can be used for modernizing looms, equipment, dyeing units, and other production-related facilities.
• Promote productivity: Helps agencies scale up operations while maintaining quality and traditional craftsmanship.

Objectives of the Scheme

The primary objectives of the Marketing Incentive scheme are as follows:

• To enable handloom agencies to adjust their product prices in order to meet rising input costs and remain competitive in the market.
• To provide direct and indirect support to handloom weavers by ensuring fair wages and sustainable livelihood opportunities.
• To encourage design development, innovation, and product diversification as per changing consumer demand.
• To promote productivity and efficiency by investing in modern infrastructure and improved technology.
• To support agencies in expanding their market presence at regional, national, and international levels.

Funding Pattern

• The scheme is jointly funded by the Government of India and the Government of West Bengal in a 50:50 ratio.
• Funds are released to eligible handloom agencies through the State Government for implementation of the scheme.

Eligible Agencies

The following agencies are eligible to avail benefits under the Marketing Incentive scheme:

• Apex handloom organizations.
• Primary Weavers’ Cooperative Societies.
• State-level handloom development corporations.
• Other registered handloom agencies approved by the Directorate of Textiles.