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EXPORT POTENTIAL

ANALYSIS OF SILKPRESENTED BY:Prateeksha Rawat10020242018

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Demand supply gap

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Imports of silk from China

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Industry outlook

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Land under mulberry acreage hasfallen at a CAGR of 2.60% during2001-02 to2009-10. However, the

trend has been reversed in 2009-10due to better price and demandcondition and the trend is like to

continue. For the period during 2001-02 to

2009-10, cocoon production per

hectare rose at aCAGR of 2.39%,

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Value wise export of silkproducts

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Product wise export

Source: DGCI&S,D&BIndia

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Export of natural silk yarnfabrics

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Export of readymade silkgarments

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Export of silk waste

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Export potential countries

USA ,UAE & Hongkongwere the leading destinations for

exports from India

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China as a threat forimporters

USAHas no domestic silk-processing industry

Threat arose from the fact

that the cheap silk productswere competing withproducts of other fibres,

including cotton and evenpolyester

Quota restrictions for silk

EUThe use of

environmentally benignproducts may have a

greater impactQuota restrictions areboth for Chinese silkfabrics and garmentsEco-labels for textilesand clothing also ban

the azo-dyes.

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Expected future trends

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Silk trade policy

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Anti dumping of silk

Various Weavers Associations in association withCSB have filed a petition before the DirectorateGeneral of Antidumping and Allied duties (DGAD,

MOC) alleging dumping of silk fabrics by China.The DGAD has imposed antidumping duty onChinese Silk Fabric during November 2006 onfabric weight ranging from 20 - 100 gm/meter

indicating a reference price ranging between US$1.66 - 4.55 /meter As a result of imposition of antidumping duty onSilk Fabric the silk weaving units which were closedhave started functioning again.

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ITC (HS Codes)

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Comparison of dutystructure

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Silk price trend

The domestic pricemainly depends on the

landed price of Chinesesilk.

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Grade of Raw Silk Yarn

GradeA

Grade 2A

Grade 3A Grade 4A

Grade 5A

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n erna onaassociation Standards to

test the followingDenier - weight ingrams/Mtr

Tenacity Elongation

Cleanness

Neatness

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Terms of payment

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Freight charges

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Distribution channel

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Distribution Channel

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Customs & duties

Indian Customs & Import duty onSilk and Silk goods with effect fromMarch 1,2007.

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Visual inspection

Verification and purity of theconstituent yarns in the materials,Denier or count of the constituent

yarns, ends and picks, in case offabrics, the weight/ sq mt. will bearrived based on the weight of the

inspected pieces. In case of Made-ups,Garments etc the weight/ sq mt will becalculated from the sample of basefabrics.

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g)Each inspected piece will bestamped with A.D.(I) s monogramstamp.

h) The samples will also betested for the following parametersand a test report will be issued on

specific requesti) Colour fastness to lightwashing,

i Rubbin and ers iration.

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Packing and sealing

Pieces inspected and passed shallbe marked with monogram stamp ofthe Assistant Director ( Inspn ) and

packed in the bales or cartoons or asspecified by the applicant or asspecified in the contract In the

presence of Assistant Director ( Inspn).

All other bales or cartoons of the

consignments shall be sealed by the

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Quality inspection schemefor natural silk goods

Issue of various TariffCertificates

Issue of Tariff Certificates onexporters declaration: bysubmitting the prescribed format

along with 6 x 6 sample swatchesof representative samples

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Govt. policies

FISCALMEASURES

Duty

exemption onSilk machinerytill 2015

Exportincentives :Focus ProductScheme

NON-FISCALMEASURES

Increased

thrust on R&Dfor scientificways ofincreasing silk

productivityand quality

Strengthening

of extension

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Promotion

Silk Mark Expo.

An effort to build the image of Madein India brand

Put Silk Mark indicating pure silkvariety

Generic promotion of Indian Silk :Publicity and promotion programs in

the form of exhibition, road shows,

mass media campaigns covering print

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Indian Silk Export Promotion Council(ISEPC)

Central Silk Board

Silk Mark Organization of India (SMOI)

VANYA SILK MARKETING PROMOTIONCELL (VSMPC)

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Major competitor

CHINA

Top global

producer( 81.95%)

Produces fine

quality raw silk Available in bulk-

dumping of silk

Can be easil

INDIA

2ND largest silk

producer in theworld (15.50%)

Raw silk

produced isinferior to that ofchina- lacks

uniformity in

ompara ve mu erry

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ompara ve mu errysericulture statistics- China

vis--vis India

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Contd.

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SWOT analysis

STRENGTHSLarge production base,availability of skills, landand labour

Established infrastructure,availability of silkwormbreeds / hybrids.Low investment, shortgestation period and

higher returns.Easily adoptabletechnologies and strongdomestic demand-pull.

WEAKNESSGaps in technologytransfer and extensionsupport.Inadequate marketaccessibility, poor linkageamong different stakeholders.De-centralized nature of

the industry inhibitsfinancial institute fromextending financial supportto the sector.Lack of quality basedpricing system in the

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THREATS

Generation of ruralemployment and reductionof migration to urban areas.Liberalization policies ofGovt. of India in line withWTO Agreements.Reduction of production of

silk even by traditional silkcountries like Japan, USSRetc.Garment exports are on asteady increase with huge

employment opportunities.

OPPORTUNITIES

Falling international pricesand heavy dumping fromChina at low prices.Unpredictability of Chinassilk policies.Inability of the silk industryto react and adopt to the

changing needs in terms ofquality both for thedomestic and exportmarkets.Lack of awareness in the

domestic market torespond to the demand-

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Conclusion

The Indian silk goods have highexport potential because of itsdistinctiveness and low production

cost. India has a competitive edge of,

being a traditional sericultural

country and cultivator of all the fourcommercially known varieties of silk.

The export potentialities of eco

friendly natural Vanya Silks (Tasar, Eri

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