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Restore custom duty on raw silk to 30%: Karnataka CM

Updated: Jun 26, 2013 05:16:29pm
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Bengaluru, Jun 26 (KNN)  To prevent sericulture farmers from opting for distress sales, the Karnataka Chief Minister, Siddaramaiah has asked the Centre to restore customs duty on raw silk to 30 per cent. 
 
The duty had been slashed from 30 per cent to 5 per cent in the 2011-12 Union Budget.
 
The move had evoked huge outcry by silk farmers while the state indicated that reduction in customs duty had affected the livelihood of farmers and reelers severely, warning of a shortage of raw silk.
 
However, to save the silk industry in the State and the agony of a large number of farmers and sericulture stakeholders, Siddaramaiah during a meeting today with Deputy Chairman, Planning Commission Montek Singh Ahluwalia to finalise the Annual Plan of the State, appealed to the Centre.
 
In a State where sericulture has a history of more than 215 years, silk farming directly and indirectly provides jobs for about 10.67 lakh people. One hectare of Mulberry provides yearlong continuous job for 13 persons.
In addition, the state has well established Multivoltine and Bivoltine Seed areas that cater to the demand of parental seed cocoons required for the production of cross breed and bivoltine hybrid layings.
Almost 88 per cent of Karnataka sericulture is spread in southern part of Karnataka, which is fast modernizing.  However, factors like urbanization, industrialization, depleting water table, scarcity of agriculture labour have affected sericulture.   
The Annual Plan for 2013-14 has been agreed at Rs 47,000 crore which includes the central assistance to the State Plan of about Rs 3,549 crore.
 
In addition, an amount of about Rs. 7,000 crore is likely to flow from the Centre to Karnataka through various Centrally Sponsored Schemes.  Thus, Plan funding from the Central Government to the State of Karnataka, from all sources, is expected to be over Rs 10,000 crore during 2013-14, according to an official statement.
 
Other points discussed during the Annual Plan meeting were, enhancing the milk subsidy from Rs 2 to Rs 4 per litre to benefit 7.5 lakh milk producing small and marginal farmers in the state. 
 
Further, the unit cost of rural housing has been raised from Rs one lakh to Rs 1.50 lakh while subsidy for rural housing has been raised from Rs 75,000 to Rs 1.2 lakh. This includes subsidy for the Centrally Sponsored Indira Awas Yojana, as well as the State sector rural housing schemes.

The CM also appealed to the Centre to strengthen infrastructure for post-harvest facilities and to help marketing surplus milk.  (ES/KNN)


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