Wool & Woollen Textiles Industry of India

Wool and Woollen Textiles Industry is a rural based, export oriented industry in which the organized sector, the decentralized sector, and the rural sector complement each other.

  • India is 7th largest producer of wool and contributes 1.8% to total world production of wool.

Only Natural Fiber in which India is Deficient

In India, the domestic produce is NOT adequate and the industry is dependent on imported raw material.

  • Wool is the only natural fiber in which the country is deficient.

A small quantity of specialty fiber is obtained from Pashmina goats and Angora rabbits.

Production Status

  • Of the total production of raw wool only 5% is apparel grade
  • Maximum amount of wool produced in India i.e. 85% is carpet grade.
  • 10% wool produced in India is coarse grade.
  • With 44% production of wool, Rajasthan leads all states in India.
  • Rajasthan is followed by Jammu & Kashmir(13 percent), Karnataka (12 percent) Gujarat, Uttar Pradesh, Andhra Pradesh, Haryana (23 percent).

Productivity of wool

  • The world average for wool productivity is about 3.5 kg/ sheep/year, while in India the average is 0.8 kg/sheep/ year.

Number of Woolen Mills

  • There are 718 woolen units in the organized sector, and a large number of units in the small scale sector.
  • Ludhiana alone accounts for 225-240 units in the decentralized hosiery and shawl sector.

Industry Capacity

The installed capacity of the industry is about 6.04 lakh worsted spindles, and 4.37 lakh non-worsted spindles. Wool combing capacity is around 30 million kg., whereas, the synthetic fiber combing capacity is 3.57 million kg. There are approximately 7,228 power looms in this industry.


In the XIth Five Year Plan period (2007-12), the Government is implementing the following Schemes for the holistic growth and development of Wool Sector:

  1. Integrated Wool Improvement & Development Programme (IWIDP)
  2. Quality Processing of Wool
  3. Social Security Scheme.

The Schemes are being administered in the major wool producing States by the Central Wool Development Board (CWDB), Jodhpur, through respective State Government Organizations / NGOs, Societies, Cooperatives, etc.

Central Wool Development Board

The Central Wool Development Board(CWDB), Jodhpur, Rajasthan was set up under the Rajasthan Societies Registration Act, 1958 in July 1987, to administer the implementation of programmes and schemes in central sector for the promotion and development of wool and woollen industry in the country.

Integrated Wool Improvement and Development Programme (IWIDP)

The Integrated Wool Improvement & Development Programme (IWIDP), the flagship Scheme of Wool Sector, is being implemented during the XIth Five Year Plan period at an estimated cost of ` 41 crore. The Scheme provides support to the Industry & Wool growers to qualitatively upgrade product and technology to enable them to get better returns for their products and get a larger share of the domestic and global market. The Programme has two main components: (i) Improvement of Wool Fiber and (ii) Human Resource Development and Marketing Activities.

Sheep & Wool Improvement Scheme (SWIS)

The Sheep & Wool Improvement Scheme was introduced during the Xth Five Year Plan period, as part of the Integrated Wool Improvement Programme (IWIP), to provide Health Care to sheep to improve their breed, to set up Multipurpose Extension Centres, provide marketing and support, product development Support and marketing assistance to the breeders. The scheme is continued in XITh five year plan.

Sheep Breeders Insurance Scheme

The Central Wool Development Board is implementing the Sheep Breeders Insurance Scheme during XIth Five Year Plan period. The basic objective of the Shepherd Insurance Scheme is to provide an enhanced insurance cover to Sheep breeders in the case of natural as well as accidental death. Out of the annual premium of Rs. 330, the contribution from GOI is Rs. 150, breeders Rs. 80, and Rs.100 is borne by LIC from its Social Security Funds. The benefits are Rs. 60, 000 on Natural death and Rs. 150,000 on Acidental Death.

Sheep Insurance Scheme

India has the third largest sheep population in the world with 6.15 crore sheep. The annual wool production in the range of 45-48 million kg which is approximately 1.8% of total world wool production. The Central Wool Development Board is implementing the Sheep Insurance Scheme during XIth. In this scheme the price of a sheep is pegged Rs. 1200 and the insurance can be done by 3% + service tax viz. Rs. 44 per sheep.


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