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India : Raw silk prices jump 40% due to 'China factor' |
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2006-2-17
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Raw silk and cocoon prices in India have gone up 40 percent year-on-year basis during the current fiscal, according to Central Silk Board (CSB).
Superior quality CSR variety cocoon prices rose between Rs 225-250 during February, up from Rs 150-175 per kg, a year ago.
Surge in prices have been recorded due to steep fall in silk production and new government policies in China which is a major raw silk and fabric supplier to India, favouring silk manufacturers there.
Chinese raw silk prices soared to Rs 1,650 per kg from Rs 1,100 per kg last year, whereas Indian variety reached Rs 1,550 per kg from Rs 950 compared to previous year.
India;s annual silk demand is about 25,000 tons whereas production is just 17,000 tons and the gap is bridged with imports from China each year.
Widening demand and supply gap in Indian silk industry due to increased export orders will further push up raw material prices, trade sources indicated.
China’s silk production slid to nearly 55,000 tons last year from around 70,000 tons in 2002, CSB sources stated.
China exported raw silk at rock bottom prices two years back due to subsidies offered by Government.
But presently, silk units are run on commercial basis under provincial governments due to industrial policy change in China.
Elimination of subsidies to local sericultureindustry, sericulture production being moved from traditional to non traditional areas as other industrial activities emerged, have led to fall in silk production for the past two years and pushed up raw silk prices in international market |
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