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It's another frantic day of trading at the Ramanagara cocoon market. Farmers attempt to woo reelers to buy their cocoons at the best price possible, while the latter make excuses to get the best bargain. As both parties haggle over issues around the colour of the cocoons, its texture and price, the mention of China resonates even to the casual observer.
On quizzing them about it, they unequivocally say that the local cocoon prices these days are guided by Chinese raw silk prices. Such is the influence of China on the livelihoods of this small community of farmers and reelers in Ramanagara, and Karnataka at large. China is today the world's largest producer and exporter of raw silk, and close to a third of India's raw silk demand is met by China. The reduction in import duties on raw silk from 30% to 5% in last year's Union budget led to raw silk prices crashing, causing major problems for sericulturists in Karnataka. China's growing economic clout is a hot topic of discussion these days in global forums. But few would expect that villagers in a remote corner of rural Karnataka to be so tuned into China. In Ramanagara district's Acchalu village, discussions on China have moved beyond auction houses to communities and homes. "With cheaper Chinese raw silk imports affecting our livelihoods, China has become a buzzword in our village," said silk farmer Krishna Goud.
Sericulturists seem to know the intricacies of Chinese silk, including prices, quality, climatic conditions, manufacturing processes. "Chinese silk is made in mass industrial complexes and their quality is superior," said Nazeer Pasha, a reeler in Tumkur district. The quantity of Chinese imports has nearly doubled to about 10,000 MT since the mid-90s. With the duties now lower, imports could gain further momentum. Historical evidence shows that silk was discovered in China as long back as the 27th century BC. The Chinese did not reveal the secret of silk for nearly 30 centuries and global demand for the exotic fabric led to creation of the 'Silk Road' in the days of the Han Dynasty, taking silk westward and bringing gold, silver and wool to the East. Historians say that mulberry-tree cultivation spread to India through Tibet around 140 BC and rearing of silkworms began in the areas around the Brahmaputra and Ganges rivers. This was given a further boost when the British came to India. Tipu Sultan gave Karnataka's sericulture a huge thrust in the 18th century.
While both countries have a rich tradition in silk, their fortunes have taken different turns. China accounts for over 80% of the world silk production while India, which is the second largest producer, accounts for about 15-16% of the production. China is the largest exporter of raw silk, with a share of around 90% in total world exports; Romania, Italy and India are the other exporters, with shares of less than 5% each. Like many other sectors, the silk industry in China is highly mechanized and supported by the state. China keeps its currency artificially low, which helps it penetrate the Indian market more easily.
In contrast, in India, the sector is led by marginal sericulturists, without the economic or political capital to make significant advancements. The lack of tools and constraints of working capital also affect Indian silk.
Officials from the National Silkworm Seed Organization say that apart from being technology intensive, Chinese silk is of superior quality as they are of the bi-voltine (2 crops a year) variety, compared to multi-voltine (5-6 crops) variety in India. The domestically produced silk is available in small quantities and also lacks uniformity in quality (length, sturdiness, etc). So weavers prefer Chinese silk.
A report by Dun & Bradstreet says that because of the perceived lower quality of Indian silk products, small weavers find marketing their products a major challenge. Also, the inconsistent quality of raw silk does not always meet requirements of international customers. Sericlturists say that efforts are being made by the state sericulture department and the Central Silk Board to support them against the Chinese threat. The productivity of cocoons has improved over the years through R&D. The catalytic development program gives a range of subsidies for rearing houses, drip irrigation, rearing equipment like brush cutter, benefits for SC/ST etc. The Silk Mark Organization is improving the marketing bandwidth of Indian silk.
Nevertheless, to take on the might of China's state sponsored silk products, more fundamental changes are needed. Economist Narendar Pani advocates greater levels of state investments, while others talk of anti-dumping measures or joining the global chorus seeking to pressurize China to appreciate the value of its currency. From the lens of Indian sericulturists, the solution to the Chinese competition is not as smooth as silk. (concluded)
Source : timesofindia.indiatimes.com
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