Worried over a non-stop fall in exports of woollen products, woollen manufacturers, are exploring options to reduce its dependency on the US and European markets that are facing a slowdown. The manufacturers are planning to increase their exports to Kazakhstan, Australia, Germany and China.

Besides their own concerted efforts, the exporters have sought government’s intervention. They believe the government’s support was needed 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.

During the first quarter of the current fiscal, woollen exports have shown a decline of about 17 per cent in dollar terms. According to statistics, the total value of exports during April-June this year was $103 million (Rs 685 crores) as compared to $123 million (Rs 780 crores) in the corresponding period last year. 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) last year. The industry witnessed negative growth of 9 per cent in dollar terms.

Currently, import duty on wool is 5 per cent and the industry imports raw wool from the UK, Australia, China and Japan etc. Prices of wool have risen by 10-15 per cent in the last one year. 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.