CM to lead delegation to Delhi for restoration of 31% import duty on raw silk
The prices of silk cocoon regained some lost ground in the major markets of Karnataka on Monday. The prices, which had fallen dramatically by 57 per cent, to Rs 150 per kg from a high of Rs 350 per kg seen last week, have bounced back to an average of Rs 250 per kg depending on the variety.
This follows a promise from the state government that it would approach Centre seeking restoration of import duty on raw silk at 31 per cent.
The cocoon prices fell drastically last week following the budget announcement by Finance Minister Pranab Mukherjee that import duty on raw silk would be reduced to 5 per cent during the next fiscal 2011-12. Subsequently, the silk reelers and traders from the neighbouring Andhra Pradesh and Tamil Nadu had stopped purchasing cocoons from the state.
Karnataka accounts for 50 per cent of the country’s total raw silk production. The state produces 55,000 tonnes of cocoons and 8,000 tonnes of raw silk annually out of the production of 19,000 tonnes per annum. The demand for silk in India is estimated at 25,000 tonnes. About 6,000 tonnes are imported from China by the reelers.
At Monday’s auction in the Ramanagar market, the crossbreed silk cocoons were traded in a range of Rs 160 per kg to Rs 249 per kg and a total of 40,000 kgs were transacted. The prices of bivoltine silk cocoons were traded in the range of Rs 200-290 per kg and 5,000 kgs were auctioned. In Shidlaghatta market, where the high quality silk is auctioned, the prices recovered and traded at Rs 200-287 per kg and 37,000 kgs were sold.
The cocoon prices hit a high of Rs 208-294 per kg at Chintamani market in Kolar district on Monday and a total of 2,000 kg was auctioned. In all, 129,500 kgs of cocoons were auctioned in the silk markets of the state.
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With the prices falling to a low of Rs 120 per kg, the farmers had taken to the streets in major markets like Ramanagar and Kollegal in protest against the Budget announcement and demanded that the state government announce a minimum support price for silk cocoons.
Raising the matter in the state assembly leader of the Opposition Siddaramaiah and D K Shivakumar had demanded immediate relief for silk farmers who were in distress. They had asked the government to announce a market intervention scheme immediately and release funds from the Rs 1,000 crore revolving fund meant for agriculture.
B N Bachegowda, minister for labour and silk, government of Karnataka, who held a meeting with senior officials, silk farmers, reelers, traders, weavers and exporters on Saturday, decided to approach the Centre to request for restoration of 31 per cent import duty on silk. A delegation headed by chief minister B S Yeddyurappa would meet the prime minister and finance minister later this month.
The meeting also decided to revive the price stabilization authority and extend finance to the Karnataka Silk Marketing Board for purchase of silk yarn and take any other measures to help farmers come out of the distress.