J&K Handloom Export Subsidy

The J&K Wool Processing, Handloom & Handicraft Policy 2020 provides an export subsidy to handloom units, in addition to the one-time working capital support. This subsidy is calculated at 10% of the total volume of handloom products exported.

It applies to the same category of units that use local resources for producing and marketing handloom goods. Since J&K handloom exports—such as Pashmina, tweed, woollen shawls and stoles—face competition from larger power-loom producers, the policy sets the rate without any rupee cap. Consequently, the benefit increases in direct proportion to the export volume a unit achieves.

- Enrol the handloom unit under the J&K Wool Processing, Handloom & Handicraft Policy 2020. - Maintain records that demonstrate the use of local resources in both production and marketing activities. - Export the handloom product, keeping shipping bills, invoices, and proof of realisation on file. - Submit the export subsidy claim along with the complete set of export documents. - The department checks the volume and then disburses the 10% subsidy.

Claims are not subject to a competitive selection process. Instead, each application is checked against the export documentation provided and the condition that the resource be sourced locally.