Search
Info Center
Home > Info Center > CCSE Review
Return
ReturnIndia:Indian raw silk prices up by 40%
Author：
admin
PublishDate：
2006-02-15 15:26:00
Hit：
307
BANGALORE, FEB 14 : Sudden fall in silk production and change in government policies in China, the major raw silk and fabric supplier to India, has impacted the Indian silk industry in the current fiscal as the raw silk and cocoon prices have jumped by more than 40% year-on-year.
Currently, according to Central Silk Board (CSB), the price of imported Chinese raw silk surged to Rs 1,650 per kg from Rs 1,100 a year ago, while that of indigenous variety touched Rs 1,550 from Rs 9,50. The superior quality CSR variety cocoon prices also shot up to Rs 225-250 a kg in February from Rs 150-175 a year ago.
Trade souces said that the raw material prices would further increase owing to widening demand-supply gap in the Indian silk industry on the back of increased export orders and expected price escalation in Chinese raw silk.
According to CSB sources, the annual silk production in China tumbled to nearly 55,000 tonne during the last calendar year, from around 70,000 tonne in 2002. Moreover, the silk processing units in the dragon country were earlier directly managed by the national government, paving way for competitive prices, strengthening their international market.
Several sops from the national government for the sericulture industry had prompted China to export raw silk at rock bottom prices two years ago. But as part of change in industrial policy in China, the silk units came under the control of provincial governments, which were directed to run the industries on commercial basis.
The Chinese national government has also cut the subsidies to the local sericulture industry. In addition, the Chinese government has been moving sericulture production from traditional hubs to non-traditional regions, due to emergence of other industrial activities. This led to a sudden fall in silk production in China during the past two years, pushing up the raw silk prices in the international market, a top official in CSB who recently visited China told FE.
Although India has imposed an anti-dumping duty on Chinese raw silk, the fact was that the Chinese were aware that the India has no option but to import silk raw materials from China. The annual silk demand in India stands around 25,000 tonne against a production of just 17,000 tonne, while the remaining 8,000 tonne were imported from China every year.
