Demand to protect the sericulture farmers of Karnataka and rest of the country by reversing the reduced Import duty on silk

Sir,

My home State of Karnataka accounts for 50% of the country’s total raw mulberry silk.  About 8.15 lakh farmers in the State are dependent on sericulture, producing 8000 metric tonnes of raw silk and 5500 metric tonnes of cocoons every year. This is a major agro-based activity providing gainful employment to poor families with a very short gestation period, but having the potential to generate adequate returns from a very small piece of land. 

However, the once thriving silk industry in Karnataka and other parts of the country is in the throes of the biggest crisis in recent years as prices of raw silk have been falling consistently. The situation has worsened after the Union Government, in its Budget proposals for 2011-12, reduced the import duty on raw Silk from 30% to a meager 5%, without consulting any of the silk-producing States.

The livelihood of lakhs of handloom and power loom weavers across the country, many of whom are daily wagers, has been adversely affected due to this decision. This reduction in import duty has also prompted China to resort to large-scale dumping of Chinese silk into our country – which will virtually kill our sericulture sector and have a detrimental effect on the small and marginal sericulture farmers.

Therefore, as a part of its Budget exercise for the next fiscal, I urge the Government to protect the sericulture farmers of the country by immediately reversing the import duty on raw silk to the earlier 30% or higher. The Government should also announce a minimum support price for silk and cocoons.

Thank you.