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ReturnIndia: China posing threat to Indian silk industry
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PublishDate：
2007-07-10 14:28:00
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GUWAHATI, July 8 – The Indian silk industry is facing a big challenge from the Chinese silk industry. China is pumping in its mulberry and tassar silk products to India at rates much below their production costs. This is aimed at destroying the Indian indigenous products, which have the potential to throw veritable challenge to Chinese silk sector. China is thus trying to pave the way for its future monopoly in the world sericulture market, said Scientist-C of the Central Silk Board (CSB) S N Mishra.
At present, India is producing over 15,000 metric tonne (MT) of silk goods per year, against China’s 45,000 MT. In this respect, India is second to China. Brazil is following it with an annual production of 7,500 MT.
The three countries have their own distinctive styles of production in this sector. China has small farms and large factories for yarn production and cloth making, while India’s farms and industries for yarn and cloth production are small. Brazil is hosting Japanese farms and industries. They are using the latest technologies.
Japanese silk industry has shifted its farms and factories to Brazil, as, big plots of land and cheap labour are easily available in this Latin American country.
Brazil is not a competitor to China in the silk market. For, it is sending its entire products virtually to Japan. But for centuries, India is sending its products mainly to the Western countries. Its main buyers are the USA, Canada, the UK, Germany and the United Arab Emirates in the Middle East. Of the total Indian silk export worth over Rs 1,100 crore per annum, 50 per cent go to the USA and Canada.
China is pursuing a very aggressive marketing strategy to eliminate India from the race. Earlier, China was not able to export its goods to any country other than the South East Asian countries. But by learning production and marketing strategies from India, it is now exporting silk goods that outmaneuvre India.
Again, to take the bull by its horns, China is making its creppe fabrics available at Bangalore, Benaras and Kolkata Srirampur at Rs 120 per metre. At these places the Indian silk fabric painting units are located.
However, the redeeming feature is that the silk printing industry has only ten per cent share in the total Indian silk products. Hence, Chinese intrusion in this area is not successful so far to stifle the Indian silk industry. China is also eyeing the Indian silk embroidery sector. But here also, the sector has a share of around five per cent in the entire Indian silk industry, said Mishra.
And to make its assault more effective, China is making its raw silk yarn available at cheaper rates at places like Sualkuchi, Kanjivaram (Tamil Nadu), Dharmavaram (Andhra Pradesh), Benaras and even at Bangalore. These are the places where Indian designed silk fabric products are woven.
It is estimated that of the over 500 MT of mulberry silk yarn annually used in Assam, 100 MT are Chinese mulberry silk yarn. These yarns are mostly used as warp threads. Since the Chinese yarns cannot be dyed in bright colours for their poor colour absorbance, hence, in Assam the Indian weft yarns will remain in use, said Mishra.
But, it now appears that on an average, India is using around 5,000 MT of Chinese raw silk yarn annually. This amount was around 2,500 MT around 1990 and now it has doubled. The post-World Trade Organization (WTO) developments have kept this trend rising particularly in the weaving sector, said the CSB scientist.
Source: Industry Website
At present, India is producing over 15,000 metric tonne (MT) of silk goods per year, against China’s 45,000 MT. In this respect, India is second to China. Brazil is following it with an annual production of 7,500 MT.
The three countries have their own distinctive styles of production in this sector. China has small farms and large factories for yarn production and cloth making, while India’s farms and industries for yarn and cloth production are small. Brazil is hosting Japanese farms and industries. They are using the latest technologies.
Japanese silk industry has shifted its farms and factories to Brazil, as, big plots of land and cheap labour are easily available in this Latin American country.
Brazil is not a competitor to China in the silk market. For, it is sending its entire products virtually to Japan. But for centuries, India is sending its products mainly to the Western countries. Its main buyers are the USA, Canada, the UK, Germany and the United Arab Emirates in the Middle East. Of the total Indian silk export worth over Rs 1,100 crore per annum, 50 per cent go to the USA and Canada.
China is pursuing a very aggressive marketing strategy to eliminate India from the race. Earlier, China was not able to export its goods to any country other than the South East Asian countries. But by learning production and marketing strategies from India, it is now exporting silk goods that outmaneuvre India.
Again, to take the bull by its horns, China is making its creppe fabrics available at Bangalore, Benaras and Kolkata Srirampur at Rs 120 per metre. At these places the Indian silk fabric painting units are located.
However, the redeeming feature is that the silk printing industry has only ten per cent share in the total Indian silk products. Hence, Chinese intrusion in this area is not successful so far to stifle the Indian silk industry. China is also eyeing the Indian silk embroidery sector. But here also, the sector has a share of around five per cent in the entire Indian silk industry, said Mishra.
And to make its assault more effective, China is making its raw silk yarn available at cheaper rates at places like Sualkuchi, Kanjivaram (Tamil Nadu), Dharmavaram (Andhra Pradesh), Benaras and even at Bangalore. These are the places where Indian designed silk fabric products are woven.
It is estimated that of the over 500 MT of mulberry silk yarn annually used in Assam, 100 MT are Chinese mulberry silk yarn. These yarns are mostly used as warp threads. Since the Chinese yarns cannot be dyed in bright colours for their poor colour absorbance, hence, in Assam the Indian weft yarns will remain in use, said Mishra.
But, it now appears that on an average, India is using around 5,000 MT of Chinese raw silk yarn annually. This amount was around 2,500 MT around 1990 and now it has doubled. The post-World Trade Organization (WTO) developments have kept this trend rising particularly in the weaving sector, said the CSB scientist.
Source: Industry Website
