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COIMBATORE: The cost of silk sarees is likely to go up, as handloom weavers say that the industry is facing a crisis after the price of silk yarn and jari has shot up because of the 33.66 percent excise duty imposed on imported silk.

The weavers have demanded that the excise duty is done away with, and the prices of silk are fixed accordingly, so that producers of silk sarees and weavers are not affected.

The weavers said that the cost of a kilo of imported silk from China had spiralled from Rs 1,400 to Rs 2,100, whereas the price of local silk has gone up to Rs 1,500 from Rs 900. Similarly, the cost of jari too has gone up.

According to K Ponnusamy, secretary of the weavers association, only 60 percent of the silk required for the industry is available in the country and the rest is being imported.

The major share of this silk is produced in Karnataka, so the silk producers there - many politicians are there among them - want the excise duty to remain high so that they would get a good price for silk produced by them.

But after the hike in excise duty, the silk saree producers and weavers have been hit.

Citing an example, Ponnusamy said the owner of a mill in Tirupur, who owns around 500 looms, is lately operating only 50 looms because of the price hike, and as a result, he has suffered a loss of several lakhs. Besides, the workers too have lost their jobs.

Moreover, the Tamil Nadu Government has imposed four percent sales tax on jari, and it would shoot up to 12 percent when Value Added Tax is introduced in April, the weavers pointed out.

There are a total of about 12 lakh handlooms in Tamil Nadu, with at least more than one lakh families depending on this industry solely in Coimbatore and neighbouring districts like Erode.

The production of silk sarees is concentrated mainly in Kancheepuram, Salem, Coimbatore, Erode and Thirubuvanam.

The price hike of silk yarn has hit the production. This will not only result in hike in prices of silk sarees, but the families depending on the industry fear that they may be left jobless.

Ponnusamy said that they had represented the matter to the government and awaited a favourable decision.