HK Overtakes US as Top Market for Indian Silk.

Hong Kong has become the biggest export market for Indian silk overtaking the United States.

According to a data available with the state-owned Central Silk Board (CSB), the apex body of Indian silk industry, silk exports to Hong Kong touched Rs 89.37-crore in the first quarter of the current financial year while that of the US stood at Rs 82.42 crore.

During the same period last year, India exported silk material worth Rs 102.78 crore and Rs 101.76 crore to the US and Hong Kong, respectively. Silk exports to the US have been declining in the past three years but still it was the largest Indian silk buyer till the last financial year.

In 2009-10, exports to the US declined to Rs 417 crore from Rs 536 crore recorded in 2008-09, but still it was 14% higher when compared to Rs 366 crore worth exports to Hong Kong .

Traditionally, US has been the largest market for Indian silk exporters. Indian exporters have 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 to US buyers switching to Chinese silk materials.

Further in 2008-09, exports to the US slipped due to the economic recession. In 2007-08, India exported Rs 614 crore worth silk items to the US . In FY08, exports to the US fell by a whopping 32%, the official added.

India exports silk items like natural silk yarn, fabrics, made up, readymade garments, silk carpet and silk waste. In the first quarter of the current financial year, the country shipped Rs 308 crore worth natural silk yarn, fabrics, made up and Rs 257 crore worth ready made garments. Silk carpet exports stood at Rs 2.57 crore while exports of silk waste touched Rs 5.61 crore.

After Hong Kong and the US, countries like UAE, the UK and Germany are among the top five countries importing silk goods from India. The ministry of textiles has set a silk goods export target of Rs 4,325 crore for the current fiscal, but looking at the current trend, India is unlikely to achieve its silk exports target, experts said.

In the last financial year too, the Union ministry had set an export target of Rs 4,150 crore, but the country could archive only 67% of the set target due to falling demand for Indian silk products in the US.

Source : news.in.msn.com