China quake paralyses Indian industry
Commodity Online
NEW DELHI: When the earthquake hit China, killing thousands of people, people in India had no inkling of what effect it will have on India. Now, the effects are there to see.
Several of Indian industries have been hit hard by the earthquake effect. Earlier, it was fertilizer and other small units which were affected due to a halt in supply of goods from China due to the quake. Now, other areas like the silk industry, one of the major sector in the textile industry, are hit by the quake effect.
The silk sector alone will suffer around 40% loss due to the earthquake this year. According to officials, India heavily depends on China for the supply of raw silk for its 10,000-crore silk industry.
Following the earthquake, supply of silk from China has come down and the prices have gone up around 40%, forcing several units to close down business in India.
Hundreds of units in Varanasi, Bangalore, Madurai, Coimbatore and Bhagalpur closed shop as the raw material costs went up. Following this, over one lakh persons engaged in the sector have lost jobs.
Sichuan is the primary supplier of raw silk yarn and dupion to Indian manufacturers of silk products.
Majority of the mulberry gardens have been destroyed due to the quake, which has led to a sharp fall in production.
The earthquake and subsequent floods in Sichuan has affected the import prices of raw material, which have gone up by about 30-40%.
Following this, the industry has approached the textile ministry seeking abolition of 31% duty on imports.
Silk garment and other products’ export target of Rs 3,770 crore is likely to fall by 15-20% in the current financial year due to US slowdown and hike in raw material costs.
The raw silk prices have risen to $27 per kg from $20. With around 31% customs duty, the actual landing cost for raw silk has become Rs 1,525 per kg. The industry claims that clients in the domestic and global markets are not accepting this hike.
Commodity Online
NEW DELHI: When the earthquake hit China, killing thousands of people, people in India had no inkling of what effect it will have on India. Now, the effects are there to see.
Several of Indian industries have been hit hard by the earthquake effect. Earlier, it was fertilizer and other small units which were affected due to a halt in supply of goods from China due to the quake. Now, other areas like the silk industry, one of the major sector in the textile industry, are hit by the quake effect.
The silk sector alone will suffer around 40% loss due to the earthquake this year. According to officials, India heavily depends on China for the supply of raw silk for its 10,000-crore silk industry.
Following the earthquake, supply of silk from China has come down and the prices have gone up around 40%, forcing several units to close down business in India.
Hundreds of units in Varanasi, Bangalore, Madurai, Coimbatore and Bhagalpur closed shop as the raw material costs went up. Following this, over one lakh persons engaged in the sector have lost jobs.
Sichuan is the primary supplier of raw silk yarn and dupion to Indian manufacturers of silk products.
Majority of the mulberry gardens have been destroyed due to the quake, which has led to a sharp fall in production.
The earthquake and subsequent floods in Sichuan has affected the import prices of raw material, which have gone up by about 30-40%.
Following this, the industry has approached the textile ministry seeking abolition of 31% duty on imports.
Silk garment and other products’ export target of Rs 3,770 crore is likely to fall by 15-20% in the current financial year due to US slowdown and hike in raw material costs.
The raw silk prices have risen to $27 per kg from $20. With around 31% customs duty, the actual landing cost for raw silk has become Rs 1,525 per kg. The industry claims that clients in the domestic and global markets are not accepting this hike.