Govt okays 24 sericulture projects, aims to make silk sector self-reliant

Newly approved projects to boost raw silk output by 2,285 tonnes; plans are to stop imports completely by 2022

The production of raw silk in India is estimated to rise by 11.5 per cent to 33,840 tonnes in 2017-18, from 30,348 tonnes the previous fiscal. In order to boost production further, the government has approved two broad categories covering 24 sericulture projects that are expected to yield an additional 2,285 tonnes of raw silk by 2019-end.

Minister of State for Textiles, Ajay Tamta, said in the Rajya Sabha that the silk sector has posted an estimated compounded annual growth rate (CAGR) of 6.4 per cent during the past five years. 

Tamta added that the Centre has approved a project-based strategy for the north-east region under an umbrella initiative called 'North East Region Textile Promotion Scheme' (NERTPS), to boost the sector in the region. 

Under the scheme, among various textile sector projects, those on sericulture have been approved under two categories - Integrated Sericulture Development Project (ISDP) and Intensive Bivoltine Sericulture Development Project (IBSDP).

The minister said these two projects aim at holistic development of sericulture in all its spheres -- from plantation development to production of fabrics -- with value addition at every stage of production chain. 

They are intended to establish sericulture as a viable commercial activity by creating the necessary infrastructure and imparting skills to locals for silkworm rearing and allied activities in the production value chain.

The Centre has approved 24 sericulture projects covering Mulberry, Eri and Muga sectors in all states of the region, at the total cost of Rs 8.19 billion with its share of Rs 6.90 billion for implementation from 2014-15 to 2018-19.

The projects are expected to yield an additional production of 2,285 tonnes of raw silk during the project period and 1,100 tonnnes of silk a year, providing sustenance to 46,094 families and generating employment for about 230,000 persons. 

About 8.52 million people were part of the sericulture and silk industry last fiscal.

The Centre released Rs 5.49 billion to the north-eastern states till February 2018, against its share of Rs 6.90 billion. The balance Rs 1.40 billion has been earmarked for the remaining period of 2017-18 and 2018-19, Tamta said.

The Centre's initiatives come in the backdrop of India's plan to reduce import dependence, mainly from China, and to become self-sufficient in silk production by 2022.

In 2016-17, India imported about 3,700 tonnes of high-quality silk from China, down almost 50 per cent from some 7,000 tonnes in 2013-14.

The production of bivoltine, which is also an import-substitute quality silk, more than doubled from 2,559 tonnes in 2013-14 to 5,266 tonnes in 2016-17. 

Bivoltine production is likely to touch 6,200 tonnes in 2017-18, and once it reaches the targeted 12,000 tonnes by 2022, the country would no longer need to import Chinese silk, says reports. 

Central Silk Board estimates total raw silk output to touch 45,000 tonnes in 2022.

In the recent Budget, basic Customs duty of 10 per cent was imposed on imported raw silk to protect domestic sericulturists.

Exports

Raw silk exports from India were down 16.1 per cent to Rs 20.93 billion in 2016-17, from Rs 24.95 billion in the previous fiscal.

Silk exports include natural silk yarn, fabrics and made-ups, ready-made garments, silk carpets and silk waste.

Industry representatives attributed the drop to muted demand from key importing countries, including Europe and the US. In the markets where there is a demand, Indian exporters could  not compete Chinese players on cost.

“Our exports are declining on a year-on-year basis because we are not able to compete with Chinese prices and quality. We are slowly losing out our competitive edge and key markets,” said Dilip Agarwal, Treasurer, Silk Association of India quoted in a report.