Central govt digs in heels on silk tariff cut

With the Center’s decision to cut import duty on silk from China, the domestic silk industry has been dealt a serious blow, with Indian sericulturists protesting against the decision, citing the cost of production.

A silk farmer feeding silkworms.

By Christopher Isaac

BANGALORE (Sept. 20)—Karnataka’s Sericulture Department reports that the central government adamantly refuses to reconsider its decision to slash tariffs on silk imported from China.

An official from the department, who wished to remain anonymous due to the sensitivity of the issue, told The SoftCopy that a team from his department recently met with the prime minister, but the meeting did not yield any fruitful results.

The Karnataka silk department is trying to convince the Central government to increase the excise duty of imported silk back to 30 percent from the reduced duty of just 5 percent.

“Cocoons are at Rs. 180 per kilo[gram] currently. It used to be between 300 to 400 rupees before the duty was reduced,” the official pointed out.

As of Tuesday, the price of Bivoltine Pure (export quality) cocoons was Rs. 165 per kilogram.

Labor costs hit farmers’ pockets

R. Nirmala, assistant director Bangalore (South) at the Sericulture Department, said the increased cost of production due to labor costs was the main reason for the unrest among silk farmers, which has seen them take to the streets of Bangalore to demand that the 30 percent tariff be reintroduced.

“The cost of production has gone up in recent years because of increasing labor costs, which have gone up to approximately Rs. 150 a day from Rs. 60 a day a few years ago,” Nirmala said.

She added that unstable cocoon and land rates also affected the cost of production.

A silkworm at a silk farm

Mulberry farmers unfazed

Mulberry leaf farmers, however, seem unworried by the decrease in demand for their produce.

Padmamma, a farmer in Karnataka’s Gonipura village, says they have found buyers other than silk farmers to sell their mulberry leaves to.

“We sell the saplings to pharmaceutical companies for a good price,” she said. “We also use it for wedding ceremonies in the village, so people buy it.”

Rajanna, a 40-year-old mulberry leaf farmer in the same village, earns anywhere between Rs. 10,000 to Rs. 25,000 every two months from the other produce he grows in his fields.

He buys his seeds from a private horticulture firm, Namdhari Seeds, at Rs.50 a kilogram. Once the plants have grown to maturity, he sells them back to the company. The highest price his produce has fetched so far is Rs. 25,000.