Speaking at the 25th annual general meeting of the Indian Woollen Mills Federation in Mumbai, Khanna said that most of countries around the world have abolished or reduced tariff on imports. New Zealand for example has decided to remove all tariffs by 2006. New Zealand is a major exporter of wool to India, which consumes a little over 31 million kg every year.

At present there is a 25 per cent duty on finer wool and 15 per cent on wools above 32 microns. But India needs to import larger quantities of good quality and here, the high tariff acts as a constraint, Khanna said.

Talking about the problems of the woollen carpet industry, he said although the country produces 35 million kg wool, hardly 16 million kg of this was good enough to make carpets. ``The need of the hour is to develop more good quality wooland integrate the carpet industry under modern management and marketing practices,'' he said.

Exports of handknotted carpets from India were to the tune of Rs 1,600 crore in 1997-98, which could be doubled by the turn of the century. There was a greater need to develop animal husbandry projects in India and in context, he sought assistance from Australia and New Zealand, the two major wool producers in the world.

Calling for a strategic partnership between wool growers of New Zealand and the Indian textile industry, Roger Buchanan, general manager, policy, New Zealand Wool Group, said that New Zealand needs Indian expertise and efficiency in delivering quality textiles at a competitive prices as much as India needs New Zealand's fibre.

Commenting on the occasional commercial disputes between New Zealand suppliers and their Indian customers, he said though his organisation could not intervene, it was very much perturbed by it.

He said the quality aspect had been addressed by establishing the Fernmarkquality programme, under which, those New Zealand exporters who were accredited were obliged to uphold the highest standards. ``If you want quality, you source from an accredited exporter,'' he suggested.

New Zealand minister for international trade and associate minister of finance, Dr Hon Lockwood Smith also spoke on the occasion.