BANGALORE: This may come as a succour for domestic raw silk producers. The Centre has quietly re-imposed the anti-dumping duty on Chinese silk yarn (raw silk) imports for one year. Currently, the landed price of Chinese raw silk is around $27.97 per kg. The anti-dumping duty is levied if the landed price is lower than the domestic price.

The duty, which had been levied for five years, had expired in January 2008 and sources believe that the duty could be extended for five more years from 2009. Due to rampant imports of Chinese raw silk, domestic prices were under stress which, in turn, also impacted prices of locally reared bivoltine (temperate silk) cocoons.

Although India is the second largest producer of silk globally, imports have been an important component in silk trade thanks to demand-supply gap pegged at 10,000 tonne.

Sources say, Chinese raw silk imports are not only meeting the silk demand in India but is also leading to inflow of an inferior variety (defined as below 2A) of raw silk into the country.

Bivoltine cocoon prices, which ruled around Rs 140-160 per kg in 2002, fell below Rs 100 per kg in 2003 thanks to influx of Chinese raw silk, forcing the government to levy the anti-dumping duty.

Besides ensuring that bivoltine cocoon prices are kept remunerative, agencies like the Central Silk Board (CSB) are promoting this form of sericulture practised in China and Thailand.

The CSB is projecting bivoltine silk production to touch 5,000 tonne by the end of the XI Plan period, while total silk production is projected to reach 26,000 tonnes.

India is the only country which is producing five different types of silk. While mulberry silk accounts for nearly 90% of the output, vanya silks (wild silks) account for the balance. Prominent among the vanya silks are eri, muga and tassar. Oak tassar which is another variety of tassar silk is growing in the upper reaches notably in Uttarkhand.

10 Mar, 2008, 0335 hrs IST,Arun Iyer, TNN

Source: economictimes.indiatimes.com