GOVERNMENT OF INDIA
Ministry of Textiles 

RAJYA SABHA
UNSTARRED QUESTION NO. 1380
ANSWERED ON DECEMBER 05, 2012 

QUESTION
Adverse Effect of Cheap Import from China on Silk Based Handloom Sector 

1380. SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of TEXTILES be pleased to state: 

(a)   whether it is a fact that the sericulture based handloom sector in Karnataka has been adversely affected due to the dumping of cheap Chinese silk and reduction of import duty on silk; 

(b)   if so, the details thereof; and 

(c)    what remedial measures Government has taken or proposes to take to protect the sericulture based handloom sector in Karnataka?  

ANSWER
THE MINISTER OF TEXTILES
(SHRI ANAND SHARMA) 

(a) & (b) The silk weaving sector of the country had been affected earlier due to import of cheap Chinese silk fabrics into the country in very large volumes, high and fluctuating prices of raw silk both domestic as well as imported. 

(c) In order to safeguard the interest of silk weavers, the Director General of Antidumping Allied Duties (DGAD) has extended the anti-dumping duty on silk fabric during December, 2011 with an enhanced duty ranging from US$ 2.04 to US$ 7.59/meter on Chinese silk fabrics of weight ranging from 20 to 100 gm/meter. The anti-dumping duty so imposed will be in force till December, 2016. This has helped the silk weaving industry in the country including sericulture based handloom weavers of Karnataka.

In order to bring down the price of imported raw silk, the basic customs duty on import of raw silk was reduced from 30% to 5% during 2011-12 with a view to ensure availability of raw silk to the weavers at reasonable prices. Further, for availability of cheap domestic silk yarn to handloom weavers, the Government of India is providing 10% price subsidy on domestic silk yarn.