Traders cry foul over Chinese silk supplies

Barely a month after India began anti-dumping probe against Chinese silk imports, Indian traders are up in arms against Chinese firms, alleging that two Chinese government companies supplied damaged silk fabric to about a dozen Indian importers.

The Silk Importers & Exporters Association of India (SIEAI) and Indian Silk Export Promotion Council have alleged that two Chinese firms "" Zeijiang Cathay International Co Ltd and Zhejiang G&F Foreign Trading Co Ltd "" supplied damaged silk fabric to about 12 Indian importers between December 2004 and May this year.

The silk had high percentage of moisture as a result of which it had fungus and black spots all over, the industry bodies have claimed and urged New Delhi to take up the matter with Beijing.

In a letter to textile minister Shankarsinh Vaghela, SIEAI president P Jacob Sameul said the damaged fabric cannot be used for any purpose by Indian exporters. About 10 lakh metres of damaged silk worth Rs 12 crore was supplied, Samuel added.

While most Indian importers have been negotiating with the Chinese firms, one Indian company R J Exports Pvt Ltd has issued legal notice to the Chinese supplier, he said. "The Chinese have not been responding to the complaints lodged by Indian companies despite repeated pleas," he said.

China is the only supplier of silk fabrics to India, he said and urged Vaghela to take up the matter with authorities in Beijing so that Indian importers could get adequate compensation.

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Import disorder

• Two Chinese firms, Zeijiang Cathay International Co Ltd and Zhejiang G&F Foreign Trading Co Ltd, supplied damaged silk fabric to about 12 Indian importers between December 2004 and May this year
• Around 10 lakh metres of damaged silk worth Rs 12 crore was supplied