Australia’s wool and cotton exports to India on the rise

A recent bilateral trade agreement has significantly boosted Australian exports of wool and cotton to India. With the removal of tariffs, wool exports increased by 24 per cent. India, now is Australia’s third-largest cotton export destination, allows 51,000 tonnes of Australian cotton to enter duty-free annually, eliminating an 11 per cent tariff. This agreement has positively impacted Australian farmers and clothing brands.

The elimination of a 5 per cent tariff on imported Indian clothing has also benefited Australian consumers with better prices. Stakeholders emphasize the potential for even greater benefits if the cotton quota is increased, citing more spinning mills producing Australian cotton yarn, which would lower lead times, reduce minimum order quantities, and increase competition—all advantageous for Australian brands.

Experts point out this agreement strengthens the textile industry's foundation by securing raw material supplies and fostering market linkages. Cotton Australia CEO Adam Kay noted the eagerness of cotton growers and wool producers to embrace these changes, which promise to enhance the industry from farm to fashion.

In summary, the trade agreement has enhanced the Australian textile sector, benefiting farmers, brands, and consumers alike.