Continue 30% Duty On Chinese Silk Import – Former CM.

Former Karnataka Chief Minister M Veerappa Moily has written to the Union Finance Minister Pranab Mukherjee and the Minister for Commerce, Industry and Textiles, Anand Sharma, asking them to reconsider the decision to reduce the duty on import of Chinese silk from 30 percent to 10 percent.

Mr. Moily, who is also the Union Corporate Affairs Minister, said the sericulture farmers of the four southern States of Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu are unhappy with the Centre’s move, as they feel it will drastically reduce the price of raw silk and cocoons.

He said that silk growers and reelers feel that heavy imports of Chinese silk at reduced import duty would pose a tough competition to local silk industry, leading to its collapse, as sericulture would no longer remain remunerative.

He added that the sericulture farmers have been able to survive so far in spite of price volatility and other issues. However, the domestic silk industry may not be able to withstand the competition from low-priced Chinese silk. Hence, he stated that the duty of 30 percent on imported Chinese silk should continue.

Nearly 70 percent of the silk produced in India is from Karnataka, and 60 percent of this is produced in Chickaballapur constituency from where Mr. Moily was elected as MP in 2009.

Source : fibre2fashion.com