Indian silk focuses on Chinese challenge

Thursday, 02 January 2003, 20:30 IST
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BANGALORE: Indian sericulture is gearing up to meet the challenge of cheap imports from China, with New Delhi already having specified anti-dumping duties. From advising farmers on new methods of rearing cocoons to technology practices as well as pep talk on the impact of anti-dumping duties on low-priced imports, the focus is China. "The entire industry is gearing up to take on, not just face up, to the challenge from China. All our development schemes are aimed towards that end," P. Joy Oommen, member-secretary of the Central Silk Board, told IANS. For the first time in several years, the silk board has been able to initiate concrete action against Chinese silk, selling at substantially lower prices than Indian silk, cheaper even than in China. The authority in the Indian commerce ministry for anti-dumping has finally accepted the board's suggestion, along with that of silk farmers from three southern Indian states of Karnataka, Andhra Pradesh and Tamil Nadu. The authority has recommended penal duties to raise silk yarn prices to $33.19 per kg while giving 40 days to Chinese companies to file objections. India is the second largest producer of silk, but its consumption is high enough to undertake imports, particularly from China, to meet requirements. Last year, it produced 15,000 tonnes and imported 7,000 tonnes, with China accounting for a little over 5,000 tonnes. "The Chinese companies dropped prices five times last year. This directly affected our silk industry, with a number of reeling units either dropping production or even closing down," Oommen said. Over six million farmers are involved in sericulture in India. The initiation of "quality clubs" by silk producing states to advise farmers on newer and cost effective technologies, use of natural fertilisers, agronomic practices and rearing practices has already started receiving "better response from the farming community", Oommen added. "Next week about 2,000 farmers will be participating in the silk farmers' meet to attend a programme that will teach them newer techniques to reduce production cost." Similar programmes are being organised in West Bengal, Jammu and Kashmir and other states. The educational programmes are also expected to bring back the zing in the production of bivoltine silk to match the Chinese challenge. Dumping by Chinese companies has shaken the farming community that had enthusiastically taken up newly developed tropical bivoltine technology. "It slowed down growth of silkworm rearing houses and investments." "But prices should start looking up now that the preliminary order against Chinese dumping has come," added Ooomen. Prices were hovering around 878 per kg in December. Bivoltine silk production went up last year by 250 tonnes to 850 tonnes. "This year, we are looking at 1,250 tonnes, second only to China and pushing Brazil to third place," he said. Enhancing bivoltine sericulture is critical because "it will be the fashion flavour for clothing other than saris". India exports silk products worth Rs 21 billion annually. This year, it is expected to go up to Rs 24 billion.
Source: IANS