Oz wool body hikes licence fee,industry up in arms

The state’s wool-based industry is up in arms against the recent decision of the Australian Wool Innovation (AWI) - a non-profit organisation owned by Australian wool growers - to hike the fee for its Woolmark Licence.

Written by Raakhi Jagga | Ludhiana | Published:May 4, 2012 3:46 am

The state’s wool-based industry is up in arms against the recent decision of the Australian Wool Innovation (AWI) – a non-profit organisation owned by Australian wool growers – to hike the fee for its Woolmark Licence. There are about 56 AWI license holders in the city.

According to recent instructions,while the licence fee for retaining the Woolmark brand on garments was US $ 2,500 per annum for individual units,it has now been hiked to US $ 3,750 per annum and if one applies through a five-member association,the fee used to be US $ 5,000,which has now been hiked to US $ 7,500.

The issue was discussed at length in a meeting between industrialists and AWI members,who had specially come to the city in this regard,on Wednesday. Shyam Bansal,chairman of the Wool Club and MD of Rage knitwear said: “Already,the wool consuming industry is passing through a bad phase because of bad winters in the last season and now a hike in fee is not justified. We had submitted our proposal to at least postpone this hike for an year but it has been rejected”.

The industry is further anguished at AWI’s decision to charge an extra amount if licence holders exceed a sale target. As per the new decision,AWI has set a the sale target for its licence holders at US $ 7.5 lakh per annum and if one exceeds this target,they will have to pay an additional amount for the licence fee. The wool club had requested the global body to increase this sale target to US $ 12.5 lakh per annum.

“Due to inflation,prices of garments have increased,so the sale target figure also needs to be revised,but our demand has not been accepted so far,” the Wool Club members say. AWI’s country manager Amir Sheikh,who was in the city on Wednesday,gave no assurance in this context.

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