Raw Silk Prices Rose 87%&Nbsp; India Silk Industry Demanded The Abolition Of Raw Silk Tariffs.

　　 In all parts of the world, raw material tariffs are relatively low, and finished product tariffs are relatively high, so domestic production costs are lower. Imported products 。 Only in this way can competition with imported products be possible.

Unfortunately, the India government has implemented silk business. policy Quite the contrary. The duty of raw silk is 30%. Silk fabric The duty is only 10%. Therefore, China's exports of silk fabrics to India are lower than the cost of raw silk, even without regard to production costs and profits.

China's policy is to monopolize the silk fabric export market. For this purpose, China regularly raises the price of raw silk, so that India exporters can not export silk fabrics, while the export profits of India exporters are already very weak. In August 2010, the price of raw silk in China was 1750 rupees / kg, and by December 9th, the price was more than 3275 rupees / kg, which increased by 87% in just 4 months. The price of raw silk imported from China was 40 US dollars per kilogram in September and raised to 54 US dollars per kilogram in December 9th. Therefore, the cost of raw silk imports in India is 3260 rupees / kg.

According to the federal textile Ministry's proposal, the tax department approved the national hand textile machine development company (NHDC) to import 2500 tons of raw silk duty-free in August 8th, but so far NHDC has not been imported, mainly because the price of raw silk has soared. If they are now importing, the price has exceeded $54 per kilogram, and the price was less than 40 dollars per kilogram at the time.

In the Varanasi area alone, there are 150000 power looms and 50000 hand looms, with 250000 employees. All the power looms and hand looms were shut down for one day in November 28th, and more than 50000 workers and businessmen held a big rally. They strongly demanded the lifting of import tariffs on raw silk.

Industry experts say that India imports only 21% of raw silk and 30% of raw silk imports. This abnormal tariff structure should be corrected.

In the 2009-10 year, India even imported raw silk raw silk, such as Brazil (69 tons), Uzbekistan (82 tons), Iran (29 tons), South Korea (16 tons), Vietnam (46 tons), total 242 tons, and 2008-09 only imported 75 tons. Because raw silk imports from these countries are not subject to customs duties, China's raw silk is exported to India after being repackaged in these countries.

In the past 2008-9 years, 8392 tons of raw silk were imported, worth 380 million US dollars (17 billion rupees). But the same amount in 2009-10 years only imported 7340 tons of raw silk, because the price has increased, and in the 2010-11 years, the same amount of imports will be less, because raw silk prices have increased by 65-70%.

Industry experts suggest that the tariffs on raw silk should be abolished and the duty on silk fabrics should be raised to 40%. The national handloom development company (NHDC) should import 2500 tons of non tariff raw silk immediately.

　　 If the India government does not give priority to corrective measures, the world's largest household industry will suffer.