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Return【India】Industry demands customs duty hike to combate Chinese silk
Author：
Industry Website
PublishDate：
2012-02-21 10:31:57
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3498
Silk producers have demanded an increase in custom duty on import of silk to contain Chinese silk from flooding the domestic market. The Central Silk Board has approached the Centre protesting the 5% import duty levied on Chinese silk.
B.C. Prasad, director of Central Silk Board, said that invasion of Chinese silk was impacting the local businesses, mainly run by artisans, badly. "We also have reports of Chinese silk yarn being smuggled in huge quantity to states like Orissa and Chhattisgarh," he said. Indian silk is organic, which is not the case with Chinese silk.
Prasad said that the board has urged the Prime Minister and Finance Minister to increase the custom duty. "Earlier the custom duty on imported silk was 30%, which was reduced to 5%. We have urged the Centre to increase the custom duty in order to discourage import from China," Prasad said.
Currently, India produces 26,000 metric tonnes of silk yarn per annum, as against the total demand of 38,000 metric tonne. So there is a shortfall of a good 12,000 metric tonne. The deficit is met by importing raw silk, mainly from China.
India is the second largest producer and exporter of silk in the world after China, but also the largest importer of silk yarn in the world. China produces 130,000 MT of silk annually. Europe, Japan, the Middle East and USA are the markets for Indian silk. According to Prasad, 15,000 MT Indian silk is exported every year. While China may be overwhelming the Indian producers with quantity, the quality of Indian silk is said to be far superiour, something which silk developers say should be highlighted. A significant quality of Indian silk is that its shine improves with each wash, which is not the case with Chinese silk that tends to fade.
B.C. Prasad, director of Central Silk Board, said that invasion of Chinese silk was impacting the local businesses, mainly run by artisans, badly. "We also have reports of Chinese silk yarn being smuggled in huge quantity to states like Orissa and Chhattisgarh," he said. Indian silk is organic, which is not the case with Chinese silk.
Prasad said that the board has urged the Prime Minister and Finance Minister to increase the custom duty. "Earlier the custom duty on imported silk was 30%, which was reduced to 5%. We have urged the Centre to increase the custom duty in order to discourage import from China," Prasad said.
Currently, India produces 26,000 metric tonnes of silk yarn per annum, as against the total demand of 38,000 metric tonne. So there is a shortfall of a good 12,000 metric tonne. The deficit is met by importing raw silk, mainly from China.
India is the second largest producer and exporter of silk in the world after China, but also the largest importer of silk yarn in the world. China produces 130,000 MT of silk annually. Europe, Japan, the Middle East and USA are the markets for Indian silk. According to Prasad, 15,000 MT Indian silk is exported every year. While China may be overwhelming the Indian producers with quantity, the quality of Indian silk is said to be far superiour, something which silk developers say should be highlighted. A significant quality of Indian silk is that its shine improves with each wash, which is not the case with Chinese silk that tends to fade.
