Insight: How India could become a key player in Aussie wool industry

India could be playing a bigger role in Australia’s wool industry, giving it a leg up in two key areas.

India could become a more significant player in Australia’s wool industry by buying fibre and boosting the shearing workforce.

Delegates from Australia’s wool industry have just returned from a week-long visit to India and have found a willingness by this country to buy more wool plus an offer to supply workers.

WoolProducers Australia president Steve Harrison said his group had been part of round table discussions which, included high-level Indian officials and representatives from exporters and the Australian Government.

Mr Harrison said there were positive signs that India could increase the amount of wool it bought and establish first-stage processing there.

The trip was also to gauge the willingness of India to provide people to be trained as shearers, and Mr Harrison said the news was positive.

“There is no doubt there are people in India who are keen to upskill to become shearers,” Mr Harrison said.

“There are one million people turning 18 each month in India, and there are many who are looking for work.”

Mr Harrison said there had been attempts to train shearers in India before, with equipment provided by the United Kingdom, however he felt the upskilling would be carried out in Australia.

The next stage in the process was to work with the Australian Government on working visa application rules, which may need to be amended as they required a worker to remain in the same place for 30 days which often did not fit the shearing programs of contractors.

“There is ongoing work that will need to be done after the delegation in terms of the working visas but also things like training and accommodation, but the fact we have people willing to learn and work is a good thing,” Mr Harrison said.

Meanwhile, Australia’s potential to export more wool to India was also part of the discussions over the past week.

And it could see a fillip for Australian broad wools, which could be used in the manufacture of carpets in India.

In its analysis of the Indian wool market, Australian Wool Innovation said India was one of the largest and most important importers of Australian wool.

“India processes a total of 110-130 million kilograms of wool annually, with Australia being the primary source of apparel wool,” an AWI spokesman said.

“The country is well-known for its premium textile manufacturing, with the textile sector contributing almost 7 per of India’s manufacturing output and 12 per of its exports.

“The Indian government has been pushing for textile industry growth.

“India not only has a supply chain of quality spinners, weavers, knitters and garment makers, but also has a strong base of handloom and hand-knitting, craft and artisans, and natural dying techniques.”

Domestic consumption accounts for about 40-50 per cent of wool processed wool in India.