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Growth of wool industry affected by dipping demand
24 Jul '10
2 min read
With decreasing demand for wool and its products, the wool industry seems to be going through a rough patch.
As per data revealed by the Directorate General of Commercial Intelligence and Statistics, Kolkata, exports growth during 2009-10 was merely 3 percent, whereas during the 2008-09 fiscal, the industry registered a growth of 23.35 percent.
Dipping demand for wool and its products is the key reason behind the falling growth figures. Adding further to the sector's woes was the global economic downturn, informed a senior official from the Wool and Woollens Export Promotion Council (WWEPC).
However, this year, the industry is still experiencing a positive growth and hence, it is aiming at newer markets, informed this official. During 2009-10, wool and its products exports was worth Rs 22.62 billion, as compared to Rs 21.99 billion recorded in 2008-09.
Therefore, as part of their action plan for 2010-11, WWEPC has already spotted newer markets for exports of woolen products, such as Kazakhstan, Brazil and Muscat, among others.
Industry experts aver that, worries of exporters with respect to incentives such as duty entitlement passbook and duty withdrawal rates should soon be looked in to by the government, so as to help the wool sector move forward. More so, a suggestion seems to be doing the rounds of the market that, with the current global scenario, these incentives must be raised by 5 percent.
For the fiscal 2010-11, WWEPC has set an export target of US $630 million as compared to the 2009-10 target of $600 million.
As per data revealed by the Directorate General of Commercial Intelligence and Statistics, Kolkata, exports growth during 2009-10 was merely 3 percent, whereas during the 2008-09 fiscal, the industry registered a growth of 23.35 percent.
Dipping demand for wool and its products is the key reason behind the falling growth figures. Adding further to the sector's woes was the global economic downturn, informed a senior official from the Wool and Woollens Export Promotion Council (WWEPC).
However, this year, the industry is still experiencing a positive growth and hence, it is aiming at newer markets, informed this official. During 2009-10, wool and its products exports was worth Rs 22.62 billion, as compared to Rs 21.99 billion recorded in 2008-09.
Therefore, as part of their action plan for 2010-11, WWEPC has already spotted newer markets for exports of woolen products, such as Kazakhstan, Brazil and Muscat, among others.
Industry experts aver that, worries of exporters with respect to incentives such as duty entitlement passbook and duty withdrawal rates should soon be looked in to by the government, so as to help the wool sector move forward. More so, a suggestion seems to be doing the rounds of the market that, with the current global scenario, these incentives must be raised by 5 percent.
For the fiscal 2010-11, WWEPC has set an export target of US $630 million as compared to the 2009-10 target of $600 million.
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