Introduction
India has the third-largest sheep population in the world. Its sheep population is 74.26 million, the ninth largest wool-producing country. The size of the woollen industry of India in 2020-21 was US$ 1.6 billion (Rs. 12,444 crore). The annual wool production of the country is around 43-46 million kg. It accounts for about 2% of the world’s total production. In 2019-20, India’s wool consumption was around 260 million kg.
India’s wool and woollen industry is the seventh largest in the world and one of the important sectors of India’s rural economy. The woollen industry employs 12 lakh people in the organised sector and 20 lakhs in the sheep rearing and farming sector. The wool and woollen industry in India comprises organised and decentralised sectors. The organised sector comprises composite mills, combing units, worsted and non-worsted spinning units, knitwear and woven garments units and machine-made carpet manufacturing units. The decentralised sector consists of hosiery and knitting units, power loom units, hand-made carpets, druggets & namadahs units and independent dyeing and process houses. The major wool-producing states in India are Rajasthan, Karnataka, Telangana, Gujarat, Himachal Pradesh, Uttarakhand, Maharashtra, Uttar Pradesh, and Andhra Pradesh.
Export Trend
India exports multiple woollen products including tops, worsted yarn, ready-made garments, woollen yarn, wool tops, fabric, shoddy yarn, shoddy fabrics, blankets, knitwear, hand-made carpets, and machine-made carpets, etc.
In 2021-22 (until January 2022), the export of woollen items was Rs. 12,877.52 crore (US$ 1.57 billion). In the year 2020-21, the total export value of wool and woollen products was Rs. 69.31 billion (US$ 935 million).
During 2021-22 (provisional) the export of handmade carpets which included woollen, rugs, druggets, durries, cotton carpets, etc. stood at Rs. 11,230.58 crore (US$ 1.34 billion).
From April 2021-September 2021, exports of wool and wool blended products stood at Rs. 7,481.65 crore (US$ 908.02 million), a 49.34% increase as compared to the same period the previous year.
The woollen yarn and articles of apparel & clothing accessories, both knitted and non-knitted, are among India’s largest exported woollen products. During 2021-22, the export of wool yarn, fabrics, made-ups, etc., from India were valued at US$ 98.65 million. The apparel and clothing accessories of wool (knitted and non-knitted) exports during the same year was US$ 296 million with a share of 32% in the total exports.
The overall trend of the exports for the last few years is as given in the data below,
Major Importers
India exports wool and woollen products to many countries around the world. The major importing regions are the Middle East, Latin America, Southeast Asia and East Asia and the major importing countries are the US, the UK, France, Germany, Russia, Canada, UAE, Saudi Arabia, Sweden, Belgium, Norway, and Australia. Italy, Korea, the UK, USA, Sri Lanka, Germany, and Australia are India’s major woollen yarn export destinations. Italy, Korea, and the UK imported yarn fabrics and made-ups from India worth US$ 17.8 million, US$ 17.7 million, and US$ 12.2 million during 2020-21, respectively.
During 2020-21, USA, Oman, Afghanistan, Germany, and France were the top 5 readymade woollen garments importers from India with total imports worth US$ 386 million. The other major importers during that period were Netherlands and Tanzania at US$ 4 million and 3.4 million, respectively.
Government Initiatives
During 2021-22, India unveiled a textile industry development plan with total allocation of Rs. 2,752 crore (US$ 348 million) for the development of handloom, textile handicrafts, wool, silk, power loom, jute sector. The plans also include various initiatives for technology upgradation, setting up textile parks, building research and development facilities and promoting the North-Eastern textile industry.
The Wool Marketing Scheme encompasses various sub-components aimed at facilitating increased procurement of raw wool at competitive prices, including the establishment of a Revolving Fund for marketing, creation of an e-portal for wool auctions, financial aid for forming Wool Producers Societies/SHGs, organizing buyer-seller meets, supporting infrastructure development in wool mandis/grading centers, and conducting Woollen Expos to boost marketing for artisans/weavers. The Revolving Fund allows Implementing Agencies to purchase wool, sell it to industries, and reuse the fund for subsequent purchases, ensuring sustainable support for wool growers. Notably, a budget allocation of Rs. 50.00 lakh (US$ 0.06 million) was earmarked for this initiative in FY 2022-23.
Integrated Wool Development Programme (IWDP)
The primary goal of this initiative was to stop the wool production decline in India and to improve the manufacturing processes. The objective of this programme was to improve the quality of wool fibre and establish service and research centres to improve the quantity and quality of import and export productions. The programme was also aimed at improving the marketing and branding promotion for the export promotion of wool. As a part of this scheme, a total of Rs. 126 crore (US$ 16 million) were allocated to various activities for the period 2021-22 to 2025-26.
For the fiscal year 2022-23, a budget allocation of Rs. 15.00 crore (US$ 1.80 million) has been earmarked. As of October 31, 2022, expenditure stands at Rs. 2.12 crore (US$ 0.26 million), inclusive of Rs. 1.70 crore (US$ 0.20 million) allocated to the IWDP-Salary component, under the purview of implementation by the Central Wool Development Board (CWDB).
Some of the activities planned under this programme are enhancing the supply chain, linking the wool industry with producers, providing a marketing platform, establishing modern wool processing units, skill development and capacity building, etc.
The sub-components of IWDP are,
- Wool Marketing Scheme
- Wool Processing Scheme
- HRD and Promotional Activities Scheme
- Pashima Wool Development Scheme
Governing Bodies
Central Wool Development Board (CWDB)
Some of the objectives of CWDB are to,
- Promote growth and development of wool and woolen products
- Undertake arrangements for marketing and stabilizing the prices
- Promote and set wool and woolen product standards
- Quality control
- Improve the existing markets and develop new uses of wool
- Advise the Central Government in the matters related to wool and woolen industry development
Wool and Woolens Export Promotion Council (WWEPC)
Established in the year 1964, WWEPC functions under the administrative control of the Ministry of Textile. Following are some of the functions and responsibilities of the council,
- To act as a registering authority for the members dealing in exports of all types of wool and woolen blended products
- To act as an advisory body to the Government of India for setting up policies and to act as an intermediary between the woolen industry and the government
- To provide financial assistance to the member of the council to participate in the trades and exhibitions abroad
- Promote and educate the member exporters about the schemes and benefits provided by the government
- To organize trade expos and bring buyers and sellers together
- Organize seminars and workshops for the member exporters to improve competitiveness and create consciousness
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