Punjab's wool exports take a hit amidst global turmoil

Punjab's once-thriving wool industry, particularly in Ludhiana and Amritsar, is facing a significant downturn due to a confluence of global factors. Exports of wool clothing, including stoles and shawls, to key markets like the US, Canada, and Europe have plummeted by nearly 40 per cent since 2014-15, falling from $121 million to $90 million this fiscal year.

The Russia-Ukraine war, coupled with rising living costs in Europe and a broader economic crisis, has dampened consumer demand for luxury items like wool clothing. The prolonged Israel-Palestine conflict has further exacerbated the situation by disrupting sea routes to Europe, leading to increased shipping times and costs.

To mitigate the impact of declining wool exports, many manufacturers in Punjab are diversifying their product lines. They are shifting focus to knitwear, saris, and ready-made garments, which are less susceptible to global economic fluctuations.

While Amritsar and Ludhiana remain major hubs for wool production, the overall trend is concerning. The future of Punjab's wool industry hinges on factors such as geopolitical stability, economic recovery in key markets, and the ability of local manufacturers to adapt to changing consumer preferences and global trade dynamics.