ID :
11124
Mon, 06/30/2008 - 11:01
Auther :
Shortlink :
http://m.oananews.org//node/11124
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Indian silk industry hit by Chinese 'quake'
New Delhi, Jun 29 (PTI) Indian silk industry with an
annual business of over Rs.100 billion has been hit hard by
the last month's earthquake in China, a major supplier of raw
silk for the manufacturing units in the country.
The industry claimed that hundreds of units in Varanasi,
Bangalore, Madurai, Coimbatore and Bhagalpur have closed down
as the raw material costs of silk have gone up by up to 40
percent and over 1,00,000 persons engaged in the sector have
lost jobs after the earthquake in Sichuan province of China.
Sichuan is the primary supplier of raw silk yarn and
dupion to Indian manufacturers of silk products. Majority of
the mulberry gardens have been destroyed due to the quake,
which has led to a sharp fall in production in India.
"The earthquake and subsequent floods in Sichuan has
affected the import prices of raw material, which have gone up
by about 30-40 percent," Indian Silk Export Promotion Council
Chairman T.V. Maruthi said.
Further, he said the industry has also been hit by
increasing transportation costs due to hike in fuel prices
apart from labour and other costs.
The Council has approached the Textile Ministry seeking
abolition of 31 percent duty on imports to save the industry
from the crisis, pointing out that the industry was already
hit by about 12 percent rupee appreciation against dollar last
year.
Official sources said silk garment and other products'
export target of Rs.37.70 billion is likely to fall by 15-20
percent this fiscal due to US slowdown and hike in raw
material costs.
The raw silk prices have risen to 27 dollar per kg from
20 dollar, Maruthi said, adding that with around 31 percent
customs duty, the actual landing cost for raw silk like
MRS has become Rs.1,525 per kg.
The industry claims that clients in the domestic and
global market are not accepting this hike, forcing large
number of looms and weavers besides silk garment units to
close their shutters.
"We have asked the government to import raw material at
zero customs duty through the agencies like silk export
promotion council and distribute it through the silk weaver
societies. It will definitely give a slight relief to the
importers," Indian Silk Export Promotion Council (ISEPC)
Chairman said.
Though rupee this year has depreciated by about 10
percent, but due to spurt in silk prices and borrowing costs,
the industry has been not be able to revive so far, ISEPC
Deputy Secretary P. Veeraragavan said.
The raw silk imports are expected to come down from about
10,000 tons annually to about 7,000-8,000 tons from China,
Maruthi added.
Maruthi also said that as against the demand of about
25,000-30000 tons of raw silk, only about 16,000-20,000 tons
of raw silk is likely to be available this year. This huge
shortage of silk should be bridged to enhance the production.
PTI
annual business of over Rs.100 billion has been hit hard by
the last month's earthquake in China, a major supplier of raw
silk for the manufacturing units in the country.
The industry claimed that hundreds of units in Varanasi,
Bangalore, Madurai, Coimbatore and Bhagalpur have closed down
as the raw material costs of silk have gone up by up to 40
percent and over 1,00,000 persons engaged in the sector have
lost jobs after the earthquake in Sichuan province of China.
Sichuan is the primary supplier of raw silk yarn and
dupion to Indian manufacturers of silk products. Majority of
the mulberry gardens have been destroyed due to the quake,
which has led to a sharp fall in production in India.
"The earthquake and subsequent floods in Sichuan has
affected the import prices of raw material, which have gone up
by about 30-40 percent," Indian Silk Export Promotion Council
Chairman T.V. Maruthi said.
Further, he said the industry has also been hit by
increasing transportation costs due to hike in fuel prices
apart from labour and other costs.
The Council has approached the Textile Ministry seeking
abolition of 31 percent duty on imports to save the industry
from the crisis, pointing out that the industry was already
hit by about 12 percent rupee appreciation against dollar last
year.
Official sources said silk garment and other products'
export target of Rs.37.70 billion is likely to fall by 15-20
percent this fiscal due to US slowdown and hike in raw
material costs.
The raw silk prices have risen to 27 dollar per kg from
20 dollar, Maruthi said, adding that with around 31 percent
customs duty, the actual landing cost for raw silk like
MRS has become Rs.1,525 per kg.
The industry claims that clients in the domestic and
global market are not accepting this hike, forcing large
number of looms and weavers besides silk garment units to
close their shutters.
"We have asked the government to import raw material at
zero customs duty through the agencies like silk export
promotion council and distribute it through the silk weaver
societies. It will definitely give a slight relief to the
importers," Indian Silk Export Promotion Council (ISEPC)
Chairman said.
Though rupee this year has depreciated by about 10
percent, but due to spurt in silk prices and borrowing costs,
the industry has been not be able to revive so far, ISEPC
Deputy Secretary P. Veeraragavan said.
The raw silk imports are expected to come down from about
10,000 tons annually to about 7,000-8,000 tons from China,
Maruthi added.
Maruthi also said that as against the demand of about
25,000-30000 tons of raw silk, only about 16,000-20,000 tons
of raw silk is likely to be available this year. This huge
shortage of silk should be bridged to enhance the production.
PTI
