Woollen manufacturers to explore new markets to increase exports

The woollen manufacturers are planning to increase their exposure in Kazakhstan, Australia, Germany and China concern over relentless decline in woollen products exports and also to reduce its dependency on the US and European markets, that accounts for 70 percent of the total country’s woollen exports which is presently facing slowdown.

In addition to exporters own rigorous efforts, they sought the government’s intervention and support was required in increasing duty drawback rates, speedy release of drawback, abolition of import duty on raw wool and textile machinery and consideration of special package to boost exports.

According to statistics, the total value of exports during April-June this current fiscal year was $103 million (Rs 685 crore) as compared to $123 million (Rs 780 crore) during the corresponding period previous year, a decline of about 17percent in terms of dollars.

Further, the total value of exports in 2015-16 was $462 million (Rs 3,013 crore) as compared to $510 million (Rs 3,112 crore) previous year. The industry witnessed negative growth of 9% in dollar terms.

Also the value of imports of raw wool was $69 million during April-June this year as compared to $76 million in April-June, 2015. In 2015-16, India imported wool worth $308 million as compared to $349 million in 2014-15. The decline in wool import was mainly attributed to the decline in exports owing to weak global sentiments.

Currently, the import duty on wool is 5 percent and the industry imports raw wool from the UK, Australia, China and Japan etc. Moreover, the prices of wool have risen by 10-15 percent in the past one year and it has hit the bottom lines.

According to RK Gupta, Executive Director, Wool & Woollens Export Promotion Council, the industry is witnessing a continuous decline in exports. They are making efforts to boost exports but at the same time they need the government’s support. As one of the steps towards increasing exports, the Wool & Woollen Export Promotion Council would be participating in leading trade fairs and exhibitions in Kazakhstan, Australia, Germany and China during the current fiscal to increase their presence in these countries.