Exporters unhappy with quality of Indian raw silk

Indian exporters were being forced to import raw silk from China owing to the inferior quality of raw silk produced in India and its high price. China was the largest producer of silk in the world.

Explaining exclusively to Business Standard, A K Himatsingka, vice-chairman of Rs 165 crore Himatsingka group, said, "The price of Chinese silk is around 30 per cent lower than the price charged by the domestic producers. The quality of Indian raw silk is also not up to the international standard ".

Domestic producers were surviving because the enjoyed the protection of an import duty on all imported silk used for manufacturing goods for sale in the domestic market. Exporters were however permitted to import raw silk duty free for manufacture of exported goods.

India was the second largest exporter of silk fabrics after China last fiscal. China had cornered around 75 per cent of the world market while India's share was around 15 per cent.

"Decentralised operation is the major drawback as far as Indian silk producers are concerned - they do not operate on a profitable scale" Himatsingka said.

Lack of innovation and research were the other problems facing the industry, Himatsingka pointed out. As a result, raw silk suffered from poor quality, high cost and fluctuating standards.

Central Silk Board, the country's apex organisation for development of sericulture and silk industry, had started some research projects but user industries specially exporters were far from happy with the results. India exported silk products worth Rs 1600 crore in the last fiscal and and expected 15-20 per cent growth this year.