With a view to arrest the falling cocoon prices, the Union textile ministry will consider offering a minimum support price (MSP) for cocoon in Karnataka, said Shanker Sinh Vaghela, Union Minister of Textiles.
“Karnataka is the silk capital of India. We understand the difficulties faced by silk farmers due to fluctuating cocoon prices. As a step towards minimising their hardships, the textile ministry will put a proposal to the Centre to set up an MSP mechanism for cocoons,” the minister said while participating at a function organised here to release funds for the ex-employees of the Binny Mill Ltd.
Cocoon production in Karnataka is about 60,000 metric tonnes. There are about 1.8 lakh cocoon growers and 10,000 reelers in the state spread mainly in the districts of Kolar, Chikkaballapur, Bangalore rural, Mandya, Mysore and Tumkur. Both reelers and growers have been demanding an MSP to combat fall in cocoon prices.
Total silk output of Karnataka stood at 8,240 metric tonnes for the year 2007-08, accounting for 50 per cent of the country’s total output.
Rise in the inflow of imported silk yarn, especially from China has been affecting the cocoon prices of late. Prices had fallen to as low as Rs 70-80 per kg about two months ago, though at present they revolve around 120-130 per kg.
“Price fluctuations are very high and hence the need for MSP is being felt,” an official of the state sericulture department told Business Standard.
Earlier during the function, Vaghela released the sanction of Rs 9 crore for the 2021 workers of Binny Mills under the Textile Workers Rehabilitation Fund Scheme (TWRFS). Binny Mills, one of the premier mills in the state was closed down in 1998.
The amount of relief per worker is equivalent to 18 months wages as per TWRFS, a scheme of government of India which commenced during 1986. The scheme provides relief to workers of closed textile mills in the country.
Workers of four mills in Karnataka namely Binny Mills, Bangalore, K R Mills, Mysore, Dunford Fabrics, and Sujatha Textile Mills of Nanjangud have been the beneficiaries of this scheme.
