Home / Knowledge / News / Textiles / Karnataka to shut down silk marketing board

Karnataka to shut down silk marketing board

22
Apr '10
The Department of Sericulture has decided to shut down their non-viable unit, Karnataka Silk Marketing Board (KSMB). The board was incurring losses since its institution in 1979, excepting for once in 2003-04, when it recorded a net profit of Rs 1.165 million.

Venkataramanappa, State Minister for Small Scale Industries and Silk, while addressing the press said that, it decided upon the closure of the board following the recommendations of A F Ferguson and Company, a consultancy firm.

Government had assigned the consultancy firm to review the board's functions and suggest modes and means to revitalize it. But instead, the consultancy firm suggested shutting down the board.

The Minister said that, imports, unrestricted trade in silk and competition from the private sectors turned KSMB into a loss making unit. He also said that, though during the last fiscal year, KSMB traded in 163 tonnes of silk yarn, way higher than the figures recorded in the previous years; it still failed to book profits. Even after reducing the operational cost and exercising a cut on the amenities provided to its employees, the board's turnover was not sufficient enough to keep it functional.

During 2009-10 KSMB incurred losses of Rs 30 million and a year before it made a loss of Rs 36 million.

Venkataramanappa clarified that, as the board's operational cost is higher than its earnings it was impossible to revive itself even if it manages to trade 500 tonnes of silk yarn. Therefore the decision was taken to shut down the board.

A report is due for submission before the State Cabinet for their approval and closure of the board will come into effect once the state cabinet sanctions the report.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 15th May 2021

Australian govt earmarks Au$1 mn for boosting fashion industry

The government of Australia has earmarked Au$1 million to promote and ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 15th May 2021

Prime Content| US textiles & apparel imports grow 4.32% in Q1 2021

The import of textiles and apparel by the United States increased by...

Pic: Amanda Wakeley

Fashion | On 15th May 2021

British luxury fashion company Amanda Wakeley enters administration

The British luxury fashion designer Amanda Wakeley’s company, AW...

Interviews View All

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Tech in fashion industry has hit acceleration button

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Nick Isles,

Nick Isles

The Condé Nast College of Fashion & Design or CNC as it is known as,...

Kriti Kanodia,

Kriti Kanodia

A TV show in 2012 where actor Sonam Kapoor <g...

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

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

Leave your Comments


May 2021

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


Advanced Search