Nath said the company has faced fluctuating wool prices in the past 18 months. Referring to the 75-80-day period between the order from New Zealand and the final production of the product, Nath said that solutions that would shorten supply time and increase supply continuity would be beneficial. The Indian representative of Wools of NZ, Lokesh Misra, said they were working to create long-term supply contracts that would ensure price certainty for four months.
Nath also said that more New Zealand farmers would positively welcome the supply of high amounts of wool together and directly through Wools of NZ, the holding of ready-made wool stock in India, and the strengthening of ties between manufacturers and processors. According to Misra, shipping costs have doubled in the past year, making it difficult to find containers while suppressing processor margins. Nath said shorter supply times could support demand for textiles and reduce the capital that processors attach to the ordered material.
Raj Group is working with sheep growers in the Himachal Pradesh region in northern India to improve their wool production practices and introducing growers to the international Responsible Wool Standard program. Nath said there was no classification system in the Indian wool industry similar to that in New Zealand, and the industry was disorganized. The company also takes advantage of the ability to accept the color saturation of New Zealand wool, directly testing the wool print.
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