On the pattern of availability of export subsidy on products of handicrafts and handloom to other countries , the demand of Jammu Federation of Industries to extend this incentive to all industrial units of Jammu and Kashmir is quite justified . That is because it satisfies the norms of equity and parity besides incentivising the neglected units to aspire for product specialisation and infusing quality and area specific characteristics in the exportable products.
Location disadvantages, increased freight costs due to distance factor, disadvantageous cost of raw material , accessibility to nearest port are all factors to be considered in respect of export subsidy. While 10 per cent of total cost of export in respect of products of handloom and handicrafts with an upper cap of Rs.5 crore is laudable, why not extend the same incentive to all industrial units in Jammu and Kashmir with an export portfolio, needs active consideration of the Government.
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