The Union Textiles Ministry plans to reduce hank yarn obligation. The government has already partially eased the challenges related to hank yarn obligation, which the industry has been facing from the last two decades. The hank yarn obligation is a mechanism to ensure adequate availability of hank yarn to handloom weavers at reasonable prices. The existing norms prescribe that every producer of yarn who packs yarn for civil consumption shall pack at least 30 per cent of yarn in hank form on quarterly basis. In the textile industry, a hank is a coiled or wrapped unit of yarn or twine (as opposed to both other objects like thread or rope as well as other forms such as in a ball, cone, bobbin, spool, among others). The industry is demanding that the obligation should be reduced in the 10-20 per cent range.

The ministry is actively pursuing with the finance ministry on the inverted duty structure. In the textile industry, there is high duty on raw material compared to the finished product. The ministry also urged Texprocil to hand-hold small firms to become mid-sized companies.