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BANGALORE, AUG 31: Despite the various measures taken by the Indian government to check Chinese silk imports, the value of silk imports from China and other countries jumped by 24.6% year-on-year in the fiscal ended March 2006, according to the latest provisional data released by the Central Silk Board (CSB). The total value of silk imports (raw silk, silk yarn and silk fabrics) surged to Rs 1,732.87 crore in the just concluded fiscal from Rs 1,391.18 crore a year ago.

The total quantity of raw silk imports alone climbed by 4.9% to 8,334 tonne from 7,948 tonne, of which China exported a major chunk of 8,116 tonne to India, up 12% from 7,243 tonne a year ago. Through raw silk exports alone, China has increased its foreign exchange from India to Rs 756.68 crore, up 36% from Rs 555.56 crore a year ago.

The statistics once again recall the bitter fact that the Indian silk industry should depend on the Chinese silk. Infact, the union government imposed anti-dumping duty on Chinese raw silks three years ago. Further, after hearing the case filed by the CSB and other Indian silk forums against China, the director general of anti-dumping and allied duties (DGAD) has passed a provisional order recently to impose anti-dumping duty on silk fabrics too.

Although the government action against China was seen as a boon to sericulture farmers, trade sources said that it banged the silk garment manufacturers and exporters in India. As a result of this action, now the unit value of Chinese raw silk surged to Rs 932 per kg on an average from Rs 767 per kg a year ago. Experts said that India can not avoid importing raw silk and fabrics from China unless the local production increased from the current 17,000 tonne to match the demand of 25,000 tonne. As of now, only China produces huge volume of raw silk materials that could feed the Indian demand. As another shock, trade sources said that the recent change in government policies in China would further push up the raw silk prices in India. Earlier China was exporting silk at rock bottom prices just to catch the Indian market. Now with the supply demand gap in India widening and the Chinese national government also cutting the subsidies to the local sericulture industry, the import prices of silk raw material will further go up in near future, experts added.