Silk Exports Fall 10% on Low US Demand.

Bangalore: India has missed the target set for silk export earnings in 2009-10 because of falling shipments to the US, a major importer of Indian silk materials.

The country's silk exports in 2009-10 touched Rs 2,871 crore, down 10% from Rs 3,178 crore recorded in the previous year (2008-2009).

The union textile ministry has set a target of Rs 4,150 crore for the year, but the country could achieve only 67% of the set target, said an official attached to the Central Silk Board (CSB), the apex body of the Indian silk industry said.

The volumes declined primarily because exports to the US tumbled to Rs 417 crore in 2009-10 from Rs 536 crore recorded in 2008-09.

Indian exporters had reduced their shipments to the US when the rupee weakened against the dollar in 2007-08 since realisations in value terms crashed by around 20%. This led the US buyers switching over to Chinese silk materials two years ago.

Further in 2008-09, exports to the US slipped due to the economic recession. The exports to the US has been continuously declining in the past three years which is alarming news to the domestic silk industry, the CSB official said requesting anonymity.

In 2007-08, India exported Rs 614 crore worth silk items to the US. From FY08, the exports to the US fell by a whopping 32%, the official added.

Exports to Hong Kong also declined to Rs 366 crore in 2009-10 from Rs 381 crore reported in the previous year while to the UK, exports tumbled to Rs 312 crore from Rs 341 crore.

Shipments to Germany fell to Rs 158 crore from Rs 193 crore while the exports to Italy tumbled to Rs 150 crore from Rs 196 crore. Exports to France also declined to Rs 122 crore from Rs 150 crore and to Spain, it tumbled to Rs 112 crore from Rs 181 crore.

India exports silk items like natural silk yarn, fabrics, made up, readymade garments, silk carpet and silk waste. In 2009-10, the country shipped Rs 1,413 crore worth natural silk yarn, fabrics, made up and Rs 1,393 worth ready made garments. Silk carpet exports stood at Rs 39 crore while that of exports of silk waste touched Rs 25 crore.

Source : financialexpress.com