Imports of raw silk from China dip 12.5%.

Bangalore: Raw silk imports, particularly from China, declined by 12.5% in 2009-10 on the back of the anti-dumping duty imposed by the government on Chinese silk products.

India imported 7,341 tonne of raw silk in the financial year 2009-10 compared to 8,392 tonnes imported in the previous year.

The value of raw silk, silk yarn and fabrics imported during April-March 2010 stood at $381 million, almost flat compared to $380 million recorded in the previous financial year.

In 2009-10, around 98.7% (7,098 tonnes) of the total raw silk imports were from China. Imports from China stood at 8,316 tonne in 2008-09, said a report from the Central Silk Board (CSB), the apex body of the Indian silk sector.

However, silk imports from Brazil more than doubled to 69 tonne in 2009-10 from 31 tonne a year ago while the imports from Uzbekistan increased to 82 tonne from 18 tonne. Surprisingly, Iran and Korea, which did not export any silk items to India in 2008-09, has shipped 29 and 16 tonne of raw silk respectively in 2009-10.

CSB officials said Chinese imports has been slowly declining in the past seven years after the government imposed the anti-dumping duty. The Centre had imposed an anti-dumping duty on Chinese raw silk for five years--from 2003 to 2008--to safeguard the interest of domestic sericulture farmers and weavers.

Anti-dumping duty was imposed on the basis of landing price of $27 per kg till January 2008. The same slab continued when the government extended the anti-dumping duty till January 2009.

With the intervention of CSB and other industry players, the government has further extended the anti-dumping for five years from 2009 by increasing the slab to $37 per kg. An anti-dumping duty on silk fabric was also imposed for five years from 2006. Currently, Indian produces around 19,500 tonnes of raw silk against the demand for around 28,000 tonnes per annum.

Source : financialexpress.com