Bhagalpur, Jan. 17: National Handloom Development Corporation (NHDC), an undertaking of the Union ministry of textile, has decided to set up three yarn depots — one in Bhagalpur and two in Banka — in the next financial year to help weavers procure raw material at fair prices.

Bhagalpur-based non-government organisation (NGO) Lokhit will operate the main depot at Sahupokhar in Banka. Dastakar Bunkar Sangh will operate a depot in Bhagalpur, while Chandni Handloom will manage the one at Sathpura in Banka.

The NHDC, under its mill gate price scheme, aims to help silk weavers get yarn at a consolidated price. Middlemen often fleece the weavers, charging exorbitant amount for raw material.

For the first time in the state, the NGOs have been assigned the work to help weavers get yarn at genuine prices, improve their economic condition and avoid exploitation by the private yarn suppliers.

Lokhit will support the weavers of both Banka and Bhagalpur, said Padma Shri Chitto Tudu, the NGO director.

He said more than 250 weavers from Banka were attached with the organisation.

Sudha Jha, the secretary of Lokhit, said: “The work on starting the yarn depot is on and would start functioning from April-May 2012. The yarn depot would procure material from places like Bangalore, Midnapore and Howrah (in Bengal) and then provide the yarn to the weavers at the same rates they are procured.”

The organisations would enjoy 2.5 per cent of their total sales from the central government as handling charge.

Sources said the NHDC decided to set up the three yarn depots in a bid to decentralise the present system where individual suppliers provide the raw material to the weavers. The suppliers allegedly extort weavers at times.