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KOLKATA:
Silk goods exports to Malaysia had jumped more than four times in 04-05.
This helped the country to increase its overall silk goods exports by 4.6% to Rs2,747.7 crore in the year, despite facing shrinking demand for its silk products in some European countries and the US.
As Malaysia has just started picking up silk goods from India, the four-fold growth in its import from India fetched the latter a mere Rs 47.6 crore from its silk goods export to that country during the year. This pales into insignificance when compared to country's silk goods exports to the US at 836.7 crore and to the UK at Rs254.4 crore in the year. Even then the rapid growth in demand for Indian silk
goods from Malaysia cheers exporters.

The emergence of Malaysia as a hot destination for Indian silk carpets and garments is really a major development for us. This points to a fact that the country in spite of being a close neighbour of China, the world's largest exporters of silk goods, is keen to buy Indian products. Since Malaysia re-exports part of the Indian consignment, we will focus it while pushing our products in other
south-east Asian countries,” a Kolkata-based silk exporter said.

Incidentally, due to stiff competition from China, India has been gradually losing its market share mainly in the US, the Netherlands, Switzerland and in some west Asian and east European countries.
In many cases, it is constricted to give a greater push of its silk products due to limited supply of quality silk yarn and fabric, for which the country has to depend on imports from China. Though Indian silk goods exporters do not have to pay anti-dumping duty on Chinese silk yarn for importing the raw material against advance licences, many of them prefer to maintain a restraint while booking for Chinese yarn and fabric, fearing adverse reaction from domestic silk processors and farmers.
Silk good exports from the country could have been more, had there not been problem in getting quality yarn and fabrics. On top of this inhibiting factor, impositions of service tax and fringe benefit tax on exporters will further hit the export in the current year, AK Himatsingka, director of a leading silk products exporter BMU International, said, adding: Since freight constitutes 10% of total cost of exporting silk goods by air, it will substantially dent our margin.Imposition of a 20% fringe benefit tax on air travel will put further pressure on the margin of silk goods exporters who have to take to travelling quite often for meeting buyers.