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Prime Minister Narendra Modi’s recent China trip doesn't seem to have gained much for India’s silk exporters as the Indian Silk Exports Promotion Council is looking for local options to procure raw material. Exporters want to tap the potential as China, India's main competitor in silk business, is gradually pulling out of the international market. Exporters want to establish their position in the vacuum which is likely to be created after China’s losing interest.
Council chairman T V Maruthi today led a twelve-member delegation of exporters to the small silk-farmers’ village of Malakhedi (80 Km Southwest of Bhopal) to explore whether the sole government-run silk yarn making centre here can cater to exporters' needs.
“As China has switched over to other sectors like infrastructure etc., after ruling the international silk market for years, India is looking for new options to procure raw material for silk exporters. There is a wide gap in India in raw material demand-supply; 40 percent of the raw material demand of Indian silk manufacturers is met by China,” said Maruthi.
“The Centre has no immediate mechanism to develop capacity to cater to what the Indian Silk Export Promotion Council demands,” said Rakesh Shrivastava, general manager of the centre. For the first time, the Council initiated a dialogue with local farmers at the centre.
Not only short supply of raw material but escalating price, rising dollar and recent increase in import duty on silk have also put a pressure on exporters.
“The Government has increased import duty from 5% to 15% recently and added another dampener to the exports. It looks simple in number, but it has gone up 300 times,” he said. “On the other hand, prices of silk prices have gone up three times in three years.”
Hoshangabad revenue division produces 64 metric tonnes of silk per year against 243 metric tonne. A small showroom located at the Malakhedi silk reeling centre posts a sale of Rs onew crore annually for its “Prakrit” brand finished products made of silk fabric.
But it cannot cater to huge demand of exporters. “We do not have the volumes. Also the exporters want consistency and design besides volume. It would be too tough for us though our production and sale both are growing,” said Satyanand, Commissioner state sericulture department.
Silk production in country, according to the council, has gone up from 18,370 metric tonne in 2008-2009 to 26,480 metric tonne in 2013-14, but is still not sufficient to cater to the $550 million silk export industry of India.
Other exporters observe that research and development, quality processing house and brand building hold the key for Indian exporters to establish in Global market though it continues to be the second largest silk material producer.
“We have aksed the government to contribute to support in research and design, processing house and brand building to help silk industry rise. We hope our demands would met as soon as possible,” Atul K Gupta past chairman of the Council said.
The Council delegation observed if government supports in developing common facility centers for design, research and development for making silk fabric in accordance with the international market norms, state like Madhya Pradesh can do wonders.
“Not only Madhya Pradesh entire India does not have a quality processing house or common design facility. If government offers soft loans to the manufacturers, private players can come forward set up silk reeling units,” said Bimal Manwandia who is one of the prominent silk exporter in the country.
Another exporter Rakesh Shrivastava of Varanasi who mainly exports silk to Russian countries said, “India has art of making silk but does not have organized market, which is why we are not competing in the International market.”
Hoshangabad revenue divisions, with its highly fertile soil, has as many as 7000 farmers who are directly associated with the silk industry. On government’s part it runs 14 reeling centers at eight districts in the division. The state has 26,000 farmers who feed 32 silk reeling centers at various locations.
