AUSTRALIAN Wool Innovation (AWI) chairman Wally Merriman this week suggested a scheme to regulate the supply of wool into auction markets may be needed to stop wild fluctuations in prices.
Mr Merriman said he had publicly raised the proposal to generate debate within the industry.
The AWI board had already discussed the issue and Mr Merriman said he would raise the matter again at today's meeting in Sydney.
He said there was widespread frustration with sharp fluctuations in wool auction values which extended to exporters and a system to manage the amount of wool flowing onto the market may be one way of stabilising prices.
If the AWI felt the plan had merit it may commission a full-scale independent investigation and report into a wool supply management scheme, Mr Merriman said.
Any further decisions would rest on what was commercially and politically feasible, he said.
The wool market has recovered from a recent sharp dive with the Eastern Market Indicator (EMI) lifting 29 cents to finish at 1048 cents a kilogram clean in advance of the Easter selling recess.
There may not be much appetite among growers for a return to a regulated wool selling system as memories of the collapse of the floor price scheme in the early 1990s is still raw.