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Hike in Woolmark fee upsets Ludhiana garment makers
May '12
Woolen garment manufacturers in northern India's textile hub of Ludhiana are unhappy over the recent hike in the fee for Woolmark license.

The Australian Wool Innovation (AWI), a non-profit organization owned by Australian wool growers, has increased the license fee for retaining the Woolmark brand on garments to US$ 3,750 per annum from the earlier US$ 2,500 per annum for individual units.

If a garment maker applies through a five-member association, the fee payable will be US$ 7,500 instead of the earlier US$ 5,000 per annum.

The city of Ludhiana in Punjab state has about 56 AWI license holders.

The issue was discussed during a meeting between Ludhiana garment producers, represented by the Wool Club, and the visiting AWI members.

The wool industry is experiencing a bad phase after shortened winter in the last season and an increase in Woolmark license fee at this stage is inappropriate, Shyam Bansal, Chairman of the Wool Club, said.

The Wool Club's request to postpone the increase in license fee by at least a year was rejected by AWI members, he said.

In addition to the hike in license fee, the AWI has also decided to collect an additional amount if the license holders exceed the sales target of US$ 750,000 per annum.

The Wool Club requested the AWI to increase the sales target for levying of extra charges to US$ 1.250 million per annum, but the AWI Country Manager Amir Sheikh gave no assurance in this regard.

The Wool Club members said the prices of garments have increased owing to inflation and hence the sales target figure should be revised upwards.

Fibre2fashion News Desk - India

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