FTA with India creates new eco-friendly market potential for Australian cotton and wool

Australian wool and cotton farmers are now positioning themselves to benefit from designers and manufacturers wanting to use fibres with complete traceability and green credibility.

Research from an independent think tank, the Australia Institute, shows the nation buys more clothes per person than any other country in the world. However, almost two thirds of people polled for that research showed their deep concern on environmental impact of textile waste.

Marty Dillon, the Australian representative for 100-year-old Indian manufacturing company, NC John Garments, links brands in Australia like ‘Seed Heritage’ to factories in India that have a focus on accreditation, sustainability and traceability.

He says many consumers now do their research to ensure garments had been sourced with environmental and ethical credentials at the forefront.



Keeping in view the concerns of the consumers brands are considering all tiers of their value chain right back to the origins of their raw materials. They are looking to partner with manufacturers who can provide full traceability on the entire production process. In this regard several top Australian clothing companies are now looking to India and more reputable processing facilities for their garments.

Meanwhile the Australian cotton has always been an “integral part” of India’s growth story and has huge potential for increased imports of Australian fibres as it is contamination-free with origin traceability. Australian wool and cotton are also integral to the highest echelons of Indian fashion.

Rahul Mishra one of the most famous designers in India. His quest for quality has taken him to Australian sheep stations to see how the fibre that he prizes in his work is produced. He said many people were ultimately involved in creating an ethically produced garment — from the farmers who grow the cotton or wool, to those who handle the fibres, to the manufacturers, and everyone in between.





The painstaking construction and adornment of his garments can take months to produce and although the apparel is priced “on request”, a quick scout online shows most sell for about $3,000 a piece.

India is Australia’s third-largest cotton export destination. Now, 51,000 tonnes of Australian cotton can enter India duty-free each year, with the elimination of an 11 per cent tariff.

The free trade agreement has helped farmers and Australian clothing brands. The five per cent tariff on imported Indian clothing has also been wiped, which has led to a better deal at the cash register.

CEO of Cotton Australia Adam Kay welcoming the changes to the tariffs, said it was a notion cotton growers and wool producers were eager to hear. “What we’re really looking at is Australian cotton being manufactured in India and going to the world. That’s the vision that India sees as well,” Mr Kay said.