Business-2-Business trading exchange for natural fibres will be set up between India and Australia. This exchange will start with wool in the beginning and then go on to include all other natural fibres.

The exchange, to be set up in Australia, would be developed on the lines of international commodity exchanges already functioning.

According to the official sources the proposal, which was mooted at the Indo-Australia Joint Business Council, has received in-principle go-ahead from both sides while details are still being worked out.

They said this would be of immense benefit for the textiles sector which would be able to source its requirements at competitive prices.

Under the JBC initiative, a Wool Innovation Centre will also come up in Mumbai which will conduct research and development on use of wool in textiles to increase its consumption.

The centre will be jointly set up by National Institute of Fashion Technology and Wool Research Centre of Australia.
It would also look at blending wool with other fibres and create new fabrics.

World consumption of wool has remained stagnant for the last few years whereas of other fibres has increased manifold as wool had limited use and was costlier than others.