Himachal Pradesh's weaving industry has been left high and dry in the wake of the Union government stopping subsidy on woolen yarn. Weavers in neighboring Uttarakhand and Jammu & Kashmir, where weaving industry depends on wool, also face an uncertain future.

There are about 22,000 weavers in Himachal alone, while the number in two neighboring states is much higher. In addition there are thousands of families who run small looms at their homes, and aren't registered with any co-operative. It is feared ending the subsidy on woolen yarn will rob weavers of their jobs, and affect their families, as most of them come from poor backgrounds.

The decision will have economic and social implications. A large number of women in hill states rely on weaving and they would be the worst hit from this move and left idle. The weaving industry in Himachal Pradesh is dependent on woolen yarn as silk and cotton are not locally available. The downward slide in the industry began in the late 90s owing to increased competition, lack of promotion and market accessibility.

The all India handloom board had announced a 10 per cent price subsidy on woolen yarn in addition to cotton and domestic silk yarn in February 2014.