Silk Board attacks Chinese fabric dumping

 The petition has been filed with the anti-dumping authority and calls for import curbs on excessively low priced fabric being sold in India.

 Cut price fabrics were being dumped after the recent levy of anti-dumping duty on silk yarn by India to curb low quality of silk imports dumped by China. The fabric prices in India is currently about Rs 150-200 per metre.

 Central Silk Board (CSB) sources said CSB was confident it had a strong case and that the Chinese would be quick enough to back off from dumping poor quality yarn. Silk prices stabilised after anti-dumping duty was introduced.

 Silk was currently priced between Rs 1250-1300 per kg and cocoon between Rs 125-130 per kg. Chinese producers upped their prices from as low as $11-12 per kg to a more realistic $22-25 per kg.

 Industry sources said Chinese producers went back to old prices after the duty levy on silk.

 The Indian government has decided to support silk manufacturers by backing exports and helping manufacturers get cheap funds from banks.

 A central committee, on the first leg of its visit to Karnataka, said Indian producers had to get their act together as the country neared the WTO regime in 2005.

 Lack of easy finance from banks had prevented technology upgradation while competition from China had hurt producers

 The Karnataka government told the committee that a draft legislation regarding silk sector policies was at an advanced stage of consultation.

 As loans from banks depended on guidelines issued by the finance ministry, the committee promised to take up the issue with the finance and textiles ministries to work out an integrated strategy for silk producers. The committee would visit Sikkim, Assam and Mumbai as well.