After decline in exports to the USA and Europe, Indian woollen industry to expand market
CHANDIGARH: India's woollens industry is shifting focus to markets such as Kazakhstan, Germany, China and Australia as it faces decline in exports to the USA and Europe since the last financial year due to warmer winters and economic slowdown.
"The constant global warming is reducing severity of winter and it is playing a vital role in decline of exports. What is worrying is that the decline is 17 per cent from April to June 2016," said Sushil Kaura, chairman of Wool & Woollens Export Promotion Council under textiles ministry.
The exports that are mainly concentrated to the US and Europe dropped 3 per cent in 2015-16. Exports of wool and woollen products stood at Rs 3,012 crore in 2015-16 compared to Rs 3,112 crore a year ago
"The decline is 9.4 per cent in dollar terms for the period," Kaura said.
In dollar terms the exports stood at $462 million in 2015-16 compared to $510 million in the previous fiscal.
"Climate has been affecting the exports in the last few years," Kaura said.
To overcome the impact of climate change, the council is holding trade fairs in the current financial year at Almaty in Kazakhstan, Melbourne in Australia, Munich in Germany and in China.
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 per cent rise in price of imported wool this fiscal has squeezed margins for the domestic players.
A Tirupur based manufacturer said that while makers of premium fabric and garments like RaymondBSE -2.45 % are able to absorb the price rise in imported wool, the smaller players are losing business.
"The last two winters have been of degrowth as impact of La Nina has arrested temperature drop in December and January," said Sudershan Jain, president of Ludhiana-based Knitwear and Apparel Manufacturers Association of Ludhiana,.
The industry feels 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, Kaura said.
Source: - Economictimes.indiatimes.com