Home / Knowledge / News / Textiles / Silk weavers profits decline with rising raw material costs
Silk weavers profits decline with rising raw material costs
08
May '10
With the increase in raw silk prices by 37 percent within the last one year, profits that supported Cambodia's silk weavers are slowly dipping, said members of Khmer Silk Village Association (KSVA).

As per Secretary General, KSVA, Kae Muny, currently the cost of silk is US $37,000 per ton as compared to $27,000 the same period last year.

Muny continued, the increase in prices of silk this year is most likely due to weather change and also that most of the mulberry farmers who earlier produced silk have now started growing other higher-income crops.

Almost all the silk goods in Cambodia are woven from thread purchased from other Asian countries. Approximately 20,000 silk weavers working within the country consume 300 – 400 tons of silk and weave it to create products such as sampots (sarongs), scarves and bags, which are then delivered to the domestic and international markets each year.

While Cambodia manufactures about 4 tons of silk annually, from plantations in Banteay, Meanchey and Siem Reap, it is anticipated that, approximately 95 percent of the raw silk, required to support manufacturing is procured from Vietnam and the remaining is bought from China.

However, increasing costs of manufacturing has failed to impact the costs of finished goods, which has not kept pace with the rise in raw material costs, said Te Taing Por, Co-President, Small and Medium Enterprises and Factories Working Group.

Owing to stable prices of finished goods, Cambodian weavers are losing lot of money as, despite increase of raw silk cost, the cost of finished products has remained the same, continued Por.

In response to the private player's pleas and to help keep alive the country's silk community, on April 27, at the Government-Private Sector Forum, Prime Minister, Hun Sen, announced deferral of the seven percent tax on silk imports and also of the ten percent Value Added Tax (VAT).

According to KSVA, since Cambodia's overseas sales of silk finished goods account for nearly 30 percent, KSVA President and Prince Sisowath Pheanuroth said that, removal of taxes is a positive step towards helping the silk sector investors continue with their manufacturing and sales of finished silk goods at low prices.

More over, Cambodia should encourage more number of mulberry plantations so as to produce silk in bulk quantities that will in turn help face future rise in silk prices.

Fibre2Fashion News Desk - India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search