Indian woollen industry to expand its market

Indian woollen industry facing decline in exports to the USA and Europe since the last financial year due to warmer winters and economic slowdown have decided to shift their focus to markets such as Kazakhstan, Germany, China and Australia.

The exports of wool and woollen mainly concentrated to the US and Europe dropped by 3 percent standing at Rs3,012 crore in 2015-16 compared to Rs 3,112 crore a year ago. While, in dollar terms the exports stands at $462 million, a decline of 9.4 percent in 2015-16 compared to $510 million in the previous fiscal, said Sushil Kaura, chairman of Wool & Woollens Export Promotion Council under textiles ministry.

According to Kaura, the constant global warming is reducing severity of winter and it is playing a vital role in decline of exports. Climate has been affecting exports in the last few years. What is worrying is that the decline is 17 percent from April to June 2016.

Apart from the changing climate, the rise in price of imported wool has heated up competition from Turkey, Thailand and Bangladesh for exporters. The 30-35 percent rise in price of imported wool this fiscal has squeezed margins for the domestic players.

Kaura said that there is immediate need of government support in the form of increase in duty drawback rates, speedy release of drawback, abolition of import duty on raw wool, textile machinery and spare parts, and consideration of special package to boost exports.

To overcome the impact of climate change, the council has decided to hold trade fairs at Almaty in Kazakhstan, Melbourne in Australia, Munich in Germany and China in the current financial year.