The Union Territory administration of Ladakh has approved a production-linked incentive (PLI) scheme and created an ₹8 crore revolving fund to strengthen the Pashmina industry, according to a statement from Lieutenant Governor Vinai Kumar Saxena. The decisions were taken at the first meeting of the Ladakh Pashmina Development Board, chaired by Saxena.
Incentive Package Details
The Board approved a 25% production-based incentive for Pashmina herders under the Livestock Development Incentive Programme. According to the statement, the incentive will be paid in addition to the procurement price of raw Pashmina offered by the government. The move is intended to enhance the profitability and long-term sustainability of Pashmina goat rearing.
Payment Mechanism to Address Delays
A key challenge for herders has been delayed payments, with officials noting delays of eight to ten months in receiving funds. Under the new arrangement, the All Changthang Pashmina Growers’ Cooperative Marketing Society (ACPGCMS) will make an upfront payment of 50% of the procurement cost, with the remaining amount released within two months. The ₹8 crore revolving fund will ensure timely payments to herders.
Allocation of Incentive Fund
The approved framework specifies how the production incentive will be used:
| Allocation Purpose | Percentage |
|---|---|
| Livestock improvement and scientific breeding | 60% |
| Procuring modern combing equipment and related infrastructure | 20% |
| Household and personal financial needs of herders | 20% |
Production Targets
The administration has set a target of doubling Ladakh’s Pashmina goat population from about 2 lakh to 4 lakh over the next three years. Additionally, it aims to raise the average Pashmina yield from around 200 grams per goat to 350 grams through scientific breeding practices and the adoption of advanced combing tools.
Implications for Textile Supply Chain
For manufacturing executives and procurement professionals in the textile industry, these measures signal a potential increase in raw material availability and quality. Ladakh’s Pashmina is regarded as one of the finest natural fibres in the world. The incentive package could reduce supply chain risks by boosting domestic production and ensuring more reliable payment cycles for herders, which in turn may stabilize supply for downstream processors and manufacturers. The emphasis on modern combing equipment and scientific breeding could improve fibre consistency and output, potentially making Ladakh a more competitive source for high-end cashmere used in luxury apparel.
Production Timeline
The measures were approved at the first meeting of the Ladakh Pashmina Development Board, led by Lieutenant Governor Vinai Kumar Saxena, and published on July 5, 2026. The target of doubling the goat population and increasing yield is set over the next three years.
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