Removal of tariffs and the expected lift in processing in India are anticipated to provide some welcome relief in a challenging market.

Australia's wool market has been weathering the storm brought about by growing cash flow, bale dumping and shipment delays.

Furthermore, rising wages and ongoing pandemic-driven lockdowns in China has placed added pressure on the trade.

But industry experts are predicting the re-surfacing of India into the main arena on the back of the country's decision to remove its tariff on Australian wool will provide some much needed diversification.

The immediate removal of the 2.5per cent tariff, under the interim Australia-India Economic Co-operation and Trade Agreement (AI-ECTA) signed in early April by then Federal trade minister Dan Tehan, stripped tariffs from 85pc of Aussie exports to India.

It will be slashed to zero by the end of this year. In the long-term, the zero-tariff will help India become competitive in the re-export textile market, if it hasn't already.