Wool Industry Export Promotion Council

Chairman Speech

SPEECH OF SHRI RAJ K. KHANNA, CHAIRMAN, WOOL INDUSTRY EXPORT PROMOTION COUNCIL AT THE 6TH ANNUAL GENERAL MEETING ON SATURDAY, THE 20TH SEPTEMBER, 2008 AT THE PLAZA ROOM, HOTEL MARINE PLAZA, MUMBAI.

I take pleasure in extending warm welcome to all the members of this combined Annual General Meeting of the three esteemed organizations of Indian woollen industry, distinguished guests and senior officials of the Government present.  

Friends we all know that Indian woollen industry though tiny in the textile and clothing industry, but occupies a significant place in India’s exports and economy. The exports of wool and woollen sector which had witnessed a growth rate of 20% has been on the declining trend due to high cost of power, stringent labour laws and slow down in the US economy.

DEPB/Drawback matters:
Your Council had actively pursued the DEPB and drawback matters with the departments with the co-operation of the members. We need to represent to the Government for upward revision of duty drawback rates as import duty on raw wool, wool tops and wool waste has remained constant and the department needs to re-look to the matter. 

High cost of Power:
In some of our immediate neighbouring countries like Bangladesh, China, Pakistan and Sri Lanka the power is available at around Rs.2.25 per unit, whereas in India it ranges from Rs.4.50 to Rs.5.25 per unit on an average. This difference in power rate alone can erode our price competitiveness when taken into consideration our neighbouring countries. 

Labour Laws:
Although various representation being made by different associations, no reforms have been brought by the Government and industry continue to suffer with this reason.

Recession in US:
There is shadow of fear about the recession in the US economy. In case the US economy takes a down turn, the textile industry, especially the woollen textile industry is going to be caught in the messy situation. USA is the largest importer of wool and woollen textile products. It imports from all over the world including India. The woollen textile industry urges the Government that the levies at the State Government and the Municipality levels amounting to around 6% should be refunded to wool and woollen textile exporters.

Your Council has been sending circulars for participation in trade fairs exhibitions and buyer-seller meets, but there is poor response from the members. As per the Market Development Assistance Scheme, MDA grants can be obtained provided there is a participation of minimum five member companies in a trade fair having export turnover not exceeding Rs.15 crores.

Seminar for development of wool & woollen industry at Northern region:
A Seminar was organized at Amritsar in August, 2007. The Members of the Northern Region of India assembled at Amritsar to discuss and interact about boosting market of wool and woollen products and also to find out solutions for problems faced by the exporters.

Buyer-Seller Meet:

The Regional Office of the Textile Commissioner, Amritsar and Shawl Club (India) and WOOLTEXPRO had organized a Buyer-Seller Meet at Amritsar during 26th and 27th March, 2008 for the market development of the textile industry and to open new venues for our products. The Buyer-Seller meets was a huge success. There were more than 40 exhibitors at the meet.

Trade Fairs & Exhibitions.

WOOLTEXPRO participated along with prominent member exporters in various trade fairs, exhibitions and buyer-seller meets during the year.

India Trade Centre:

WOOLTEXPRO has remitted Rs.3 lakhs towards 9 sq.mtr. space per annum towards India Trade Centre, Bucharest, Romania. Members of our Council may take advantage and keep their catalogues, samples, etc. for marketing their products. 

I have attended all the Managing Committee Meetings of the Federation of Indian Export Organisations held at different destinations in the country to place the view point of our woollen industry.

I hope our membership will keep on growing  in the years to come so that woollen industry as a whole can work together in our efforts to achieve better results for the industry. 

WOOLTEXPRO is grateful to Shri Shankarsinh Vaghela, Hon’ble Textile Minister, Shri Kamal Nath, Hon’ble Minister of Commerce & Industry and Shri P. Chidambaram, Hon’ble Finance Minister for the guidance and policy inputs, which help for the prosperity of the  industry.

We are also grateful to Shri A.K. Singh, Secretary (Textiles), Dr. J.N. Singh, Joint Secretary (Exports) and other senior officers of the Ministry of Textiles and Commerce for sorting out various problems faced by the industry. 

I also take this opportunity to greet new Textile Commissioner, Shri A.B. Joshi and I am sure, he will help to solve wool and woollen industry problems

New COA and its Chairman:

I have completed my term of two years and I am happy to advise that Shri Ram Bhatnagar will be taking over the charge. He has rich experience of the woollen sector. I am hopeful that under his leadership, the Council will attain new heights.

Thank you,