Indian silk loses it sheen in international market

Business

Central Silk Board data shows a dip in silk exports from India. 

Bangalore, March 22, 2018: According to data from the Central Silk Board, Indian raw silk exports have fallen and the raw silk import from China is on the rise. (Refer Table 1.1 and 1.2)

According to various reports China is the leading exporter of silk in the world. China is the main exporter of the silk requirements in India and most of the importers in Bangalore rely on sellers in China.

Vivek Himatsingka, Executive, BMU, stated, “The production in India is very less to meet consumers demands so a large portion of our consumption is brought from China. This is a bad sign for our country because we cannot meet our own demands and the export numbers are at an all time low. Ultimately, it is the export numbers that help decide the country’s progress; the more the exports, the higher the fund inflow.”

He added, “The local demand is increasing and the local production is not enough to meet the demands thereby increasing imports.”

Table: 1.1

Item wise Export                 November April to November
(Figures in Rupees)   2017 (P)                      2016 2017-18 (P)                2016-17
Raw Silk No Export       0.08 0.003                      0.24

Source: Central Silk Board Statistics

Table: 1.2

Item wise Import                 November April to November
(Figures in Rupees)   2017 (P)                   2016   2017-18 (P)                2016-17
Raw Silk    98.24          71.71   835.90                         707.67

Source: Central Silk Board Statistics

Ashok Shroff, Proprietor, Prachi Silks explained, “The Director General of Foreign Trade (DGFT) issues licenses to importers and exporters and then get an Import Export Code (IEC) that facilitates our trade. We silk importers fall under the Open General licenses (OGL) category which permits anyone to import and export items. However, the nature of the business should be mentioned while obtaining GST tin number so it is clear to the authorities that what we are importing is within the permissible limits”

He added,” There is a fixed duty of 10% across these silk products, 10% of the unit cost adds up to the duty payable while importing these items”

There are various types of silks that India deals in-dupiontussahMulberry Raw SilkGeorgetteChiffon. These are combinations of the fabric available in India and in China.

In Bangalore,Mullbury Raw Silk is said to be the most sought-after fabric.

Binod Kumar Goenka, Proprietor, Trimurti International said, “Mulberry Raw Silk is the most common one in Bangalore. The consumer preference keeps changing and they look at alternate cheaper options like cotton and linen. Thus, the increase in the price of raw silk coupled with consumer preference is a contributing factor to the exports downfall.”

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