The Hindu Business Line : Karnataka panel wants curbs on silk sector to go

IN a bid to streamline the silk industry and make Karnataka world class silk producing centre, the Revenue Reforms Commission set up by the State Government has come with recommendations that seeks removal of all modes of licensing and controls. It has also mooted the setting up of a regulatory authority for silkworm seeds, modernisation of marketing and provide a strong linkage between the producer and the processor similar to the agricultural and horticultural commodities.

The Commission, which has sent its report to the S.M. Krishna Government, has suggested, among other things, setting up of Silkworm Regulatory Authority to certify the quality of seed, amendment of the Karnataka Silkworm Seed, Cocoon and Silk Yarn (Regulation of Production, Supply, Distribution and Sale) Act 1959 to allow direct linkage between the producer and the processor at all stages — graineur and seed cocoon farmer, reeler and farmer and weaver and reeler.

Addressing a press conference here on Thursday to announce the salient features of the report, Mr M. Veerappa Moily, Chairman of the Commission, said the concept of silkworm `seed area' should be given up. However, he said the production of the varieties of P4, P3 and P2 seeds should continue in the Government seed farms, the Commission felt the responsibility of commercial seed production should move towards the private sector.

"Since sericulture can prosper in the state only if Karnataka can offer large volumes of silk of uniform quality in adequate lot sizes, it is necessary for the government to create an enabling environment for the private sector to set up large integrated silk factories, " the Commission has said.

Mr Moily said with some reforms, the silk industry could take on the challenge from the Chinese silk industry.

On induction of more private participation in the industry, the Commission said private sector should be encouraged to set up large integrated silk factories with contract farming arrangement with mulberry farmers for direct supply. The silk factories could be made responsible for remitting the market fee for the cocoons. This would ensure better prices to processors while the factories would be protected from the vagaries of supply and price fluctuations.

Similar advantage of a direct linkage between the producer and the processor could be derived from the amendment of the Karnataka Silkworm Seed Act, 1959, he said adding it would help in improving the quality of silk by allowing the market to determine the pricing for the produce and would allow entry of large scale integrated `soil to silk' production units.

Mr Moily said all restrictions on the movement of cocoons and yarn into the state or from Karnataka to other State should be removed stating "it would be unreasonable to prevent free flow of cocoons can yarn from all parts of India while allowing silk imports from China." The Commission has also favoured replacing all modes of licensing with a mechanism for registration of rearers, reelers and weavers (though to be made optional) to assess the correct needs of the stake holders in terms of technological inputs, extension service and government subsidies.

The Commission suggested that cocoon markets and exchanges should be taken to places where small farmers and rearers have easy access. Online buying and selling to help farmers plan the produce in advanced to market needs should also be encouraged.