The Hindu : `Imported silk ruining ryots'

Online edition of India's National Newspaper
Tuesday, Jan 07, 2003

Southern States

Southern States - Andhra Pradesh

`Imported silk ruining ryots'

By Our Staff Reporter

ANANTAPUR JAN. 6. The AP Rythu Sangham affiliated to the CPI(M) has alleged that anti-farmer policies of the Central Government, indiscriminate import and smuggling of raw silk have all resulted in the present crisis in the sericulture sector. The price of cocoon has fallen steeply to Rs. 60 to 80 from the normal Rs. 140 to 150 in the recent months.

Speaking to The Hindu, the State deputy secretary of APRS, Y. Visveswar Reddy, who is spearheading the movement of silk ryots in the district, today said that the sericulturists from four southern states and West Bengal would stage a massive protest demonstration in front of the office of Central Silk Board at Bangalore on January 10 in support of their demands.

All India Kisan Sangh and its affiliates were organising the protest.

He explained that mulberry, the feed for silkworms, was cultivated in about 50,000 acres in Anantapur district. Thousands of farmers, farm workers, weavers and other allied workers were depending on sericulture in the drought-hit district.

But, lack of remunerative price to the cocoons due to the onslaught of imported raw silk had forced scores of farmers abandon their mulberry fields as well as their vocation. A few sericulture farmers had even committed suicide in the district unable to overcome the debt trap laid by the unremunerative silk farming.

The Centre had slashed the duty on import of raw silk from 44 to 35 per cent in 2002-03 budget, he said. Coupled with changes in the import policy allowing everybody to import the raw silk, the floodgates were opened for the indiscriminate flush of raw silk into the country.

Mr. Visveswar Reddy explained that the imports of raw silk which stood at 2,300 tonnes per annum five years back had sharply risen to about 7,000 tonnes in the current year. Besides, an equal quantity of raw silk from China was being smuggled into the country through safe passages like Bangladesh and Nepal.

He mentioned that Bangladesh alone was importing about 1,200 tonnes of raw silk from China every year against its requirement of mere 200 tonnes. Similarly, Nepal was importing 400 tonnes of silk against 80 tonnes it needed. The surplus silk imports of theses two countries was being smuggled into India at cheaply as there was no import curbs between the three countries.

As a result, the imported and smuggled silk had become equivalent to 75 per cent of the country's production leading to a severe fall in the prices of indigenous raw silk and crisis in the sector, the APRS leader said.

He stated that their demands included hike in the import duty to 100 per cent, control on imports, measures to check smuggling and announcement of minimum support price of at least Rs. 150 per kg of cocoons among others.

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