A leading Indian wool executive has described New Zealand’s strong wool as “white gold”, coveted by the Indian carpet and rug sector but hard to secure at a consistent price.
TC Bilandani was among many industry executives who visited the WoolWorks stand at the 50th Indian Carpet Expo, held in Bhadohi, northeastern India.
The WoolWorks stand stood out as the only country of origin wool-focused showcase in an exhibition dominated by wool weavers.
The wool executive, based in Haryana, a major hub for the wool and textile industry, told Farmers Weekly the removal of wool’s relatively minuscule 2.5% tariff under the free trade agreement was not in itself a deal-maker.
He also contrasted that rate with the 25% tariff borne by NZ growers in the late 1980s.
“Here in India wool is not only sourced from NZ. Saudi, Syria, Italy and the UK all sell here. But they cannot give us the clean, bright white wool we really need that NZ supplies.
“We call it white gold. It is the best for making the finest quality rugs and carpets.”
Katie Riches, WoolWorks’ commercial development manager, said interest at the event reflects the growing demand from Indian processors for NZ’s strong wool.
This demand has seen sales of New Zealand wool to India grow from $40 million in 2024 to approaching $85m year to date this June.
Ever dominant China’s share of wool exports has declined from 57% to 34% in the decade to 2025, while India’s has surged to account for almost 25% of NZ’s strong wool exports.
“What surprised me was the exceptionally high quality of the rugs and carpets on offer, but that not a lot was being done to promote the source of the fibre and the fibre quality which influences the quality of every rug,” Riches said.
“Much of the rug’s performance is directly attributable to the NZ wool that is within them.”
She said feedback from processors is they greatly appreciate the strength of the New Zealand wools with the whiteness and brightness influencing a yarn’s ability to accept a wide spectrum of colour shades.
Riches said this year has been the tipping point for supply versus demand tensions to move in favour of NZ suppliers. It has come on the back of significant declines in sheep numbers, with land lost to pines and dairy conversions over the past two decades.
“What the Indian mills do not like is the volatility in price.
“Until now, they have been able to dip in and out of the wool market through the auction system to meet their production requirements, but times have changed.
“The time really feels right for more contracts and supply agreements that extend ahead to cover their seasonal demand.”
Manufacturers spoke to Farmers Weekly about the challenges of forward pricing and budgeting for a material whose price had jumped from $4 per kg to more than $6.50 in under a year, and remains volatile.
Bilandani noted that NZ farmers need to make a profit from wool, but was circumspect about whether a price any higher than the latest peak of mid-$6/kg could be met by the rug and carpet manufacturers without an adjustment in retail price points.
He noted that lower prices in the past had made NZ’s quality wool more accessible to processors, who liked its unique performance properties, but they are now grappling with the higher price.
“But I explain to our customers that you have to pay the price to get the quality, and, of course, your sheep numbers have fallen so far, from more than 60 million to only 23 million.”
Rennie travelled to India with assistance from the Asia-New Zealand Foundation, Zespri, and Wools of New Zealand.