Weather, labour and land are the issues China has to deal with if it wants to increase silk production.

The largest silk producer suffers slump in production and hence, prices have shot up to $33-34 per kg from $14 in 10 months.

This situation is blessing in disguise for Indian silk producers as Indian silk demand is rising in international market.

This might accelerate silk exports from India to the tune to Rs3500 crore as against Rs2700 crore last year.

T D Koshy, Deputy Director, Central Silk Board (CSB), said anti-dumping duties imposed on Chinese silk have helped local prices go up.

To cash on opportunities in European, US and West Asian countries, CSB is forming strategies to increase the natural silk production to 20,000 metre by 2007. In 2004-05, the figure stood at 16,000 metres.

Price of spun silk has risen to $28 per kg from $10 in 10 months. Noil silk is priced at $16 per kg, which was $8 earlier.