In a bid to boost sale and export of handloom and handicraft products, Jammu and Kashmir government today announced full exemption of Value Added Tax (VAT) on such products from the current financial year.

"State government has fully exempted VAT on crewel cloths, embroidered chain stitch fabrics and their made ups from the current financial year onwards," Minister of State for Industries and Commerce, Sajad Ahmed Kichloo said after inaugurating a 15-days Special Handloom Expo-2013 at the Amarnath Yatra base camp at Sonamarg.

Kichloo said the government is making every effort to uplift the living standard of handloom weavers.

"8,000 modern looms each costing Rs 55,000 are being distributed to weavers free of cost. About 15,000 weaver families have been covered under weavers' Health Insurance Scheme," he said.

The minister said the Special Handloom Expo has been organised by the state Handloom Development Department and sponsored by the Development Commissioner Handlooms, Union Ministry of Textiles with a view to showcase world famous handloom products and to enable tourists and Amarnath pilgrims to get genuine products at reasonable rates.

The Expo will also provide platform to Handloom weavers to sell their products directly to the customers without exploitation of the middleman, he said.

Kichloo asked the weavers to avail benefits of various welfare schemes introduced by the government for them and instructed the officers of Handicrafts Department to ensure that the benefits of different welfare schemes reached the genuine weavers.

He called for launching comprehensive awareness campaign to educate the weavers about various welfare schemes.