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Anti-dumping duty on silk bad economics – experts
Nov '09
Silk imports from China, whether as raw silk, yarn or fabrics is on the rise, despite the fact that anti-dumping duty has been imposed on imports of a few categories of silk from China, which is raising the hackles of the domestic silk industry.

Imports of silk products which stood at Rs 15.97 billion in 2007-08, shot up to Rs 17.13 billion in 2008-09, of which value of raw silk shipments rose from Rs 7.34 billion to Rs 9.0 billion in the periods under consideration.

When considering in terms of volumes, raw silk imports grew to 8,369 tons in 2008-09 from 7,922 tons in the previous fiscal year of which 8,297 tons was imported from China, up from 7,840 tons in 2007-08.

The Centre had imposed an anti-dumping duty on Chinese raw silk for five years, from 2003 to 2008, to protect the interests of sericulture farmers and weavers and US $27 per kg was considered as the landing price to impose the anti-dumping duty.

The Central Silk Board (CSB) and other stakeholders intervened and requested the government to increase the slab of landing price to $37 per kg. The government has also extended the term of the anti-dumping for five years from 2009.

But experts from the silk sector have termed the decision of the government as bad economics as prices of raw silk and its products have risen abnormally in the last few years since the antidumping duty was imposed, leading to closures of various silk manufacturing units.

Fibre2fashion News Desk - India

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