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Rising raw silk import from China hurting domestic industry

Updated: Apr 03, 2014 12:38:08pm
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New Delhi, Apr 3 (KNN)  India's total silk imports have risen from USD 124 million in 2000 to about USD 312 million in 2012-13, 73 per cent of which comprised raw silk worth about USD 227 million, predominantly from China, said an Assocham research study.

With China being the biggest exporter of raw silk to India, accounting for about 99 per cent of exported raw silk, industry body Assocham has suggested that the government extend anti-dumping duty of raw silk from the neighbouring giant.

The suggestion has been made in a bid to boost domestic silk production.

Significantly, even as sericulture farmers have opposed cheap Chinese raw silk imports, which pose a threat to their livelihood, the weaving community does require raw silk to meet their increasing demand.

Assocham has recommended that a balance be struck between sericulturists and export manufacturers by reviewing the import policy for raw silk.
It has also suggested that state governments promote tie-up of weaver cluster with raw silk production units for establishing close linkage between forward and backward sub-systems.
 
In addition, it has called for state governments to set up more centres for weavers, both to empower them and also inform them about the latest techniques, designs, technological advancements, etc.
 
Raw silk imports from China, according to the study have grown at a compounded annual growth rate of 7 per cent over the last 12 years until December 2015.
 
The Government had imposed antidumping duty on imports of Mulberry Raw Silk of 2A grade and below from China in January 2003, which remained in force until January 2008 and was subsequently extended till January 2014 after a review.

As many as 7.6 million people across 51,000 villages are employed in the silk industry, as per the Assocham study.  They operate about 3.28 lakh handlooms and about 45,800 powerlooms.  The study also points out that there are over 8.14 lakh weavers.  (KNN/ES)

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