The Hindu Business Line : Central loan for KSIC to halt fall in cocoon prices

IN a bid to arrest the falling bivoltine cocoon prices in Karnataka, the Union Ministry of Textiles is keen on extending financial assistance to the Karnataka Silk Industries Corporation (KSIC), to carry out market intervention measures.

However, the Ministry has set a rider stating that Karnataka should throw open its markets to reelers, traders and farmers of other States. At present, farmers from neighbouring States are allowed to sell their cocoons in the silk exchanges of Karnataka, while reelers and traders from outside the State are not allowed as the silk exchanges are governed by the Karnataka Silk Act.

Mr P. Joy Oommen, Member Secretary, Central Silk Board (CSB), said the assistance by the Textiles Ministry, which would be in the form of a loan, was in response to the request by KSIC, which sought financial aid to meet its working capital requirements.

The quantum of loan would be in the region of Rs 1.5 crore and would be disbursed through the CSB. The rider on the Karnataka Government to denotify the laws was mainly to see that other States were also benefited, he said.

The steep decline in global prices of both silk and cocoons over the last few months has impacted the prices in India also. The decline in cocoon and silk prices globally is attributed to poor off take by the Western countries, especially in the aftermath of the September 11 attacks.

The Chinese silk prices, which are an indicator of global prices, have fallen drastically from $24 a kg a year ago to $15.5 a kg as in first week of May. This is reflected in the Indian prices too.

The average prices of bivoltine cocoons in Karnataka which were ruling at Rs 150 a kg about three months ago have come down to Rs 130, while that of multi-voltine and cross-bred cocoons are ruling at between Rs 90-100 as against Rs 120 about three months ago. "The fall in cocoon prices is a big dampener for us,'' said Mr Oommen as it would affect the bivoltine popularisation moves.

"The assistance by the Textiles Ministry, if availed of and utilised properly by the KSIC, would help in arresting the fall in prices to some extent,'' he said.

CSB is planning to promote and popularise the bivoltine races which have been developed with the help of Japanese assistance under the PPBST project. CSB is targeting the traditional silk growing States of Karnataka, Andhra Pradesh and Tamil Nadu, even while taking these varieties to non-traditional States.

Send this article to Friends by E-Mail

Stories in this Section
Goodyear aims at sourcing rubber but spells out riders -- Nothing sorted out yet, say officials

Rubber dips as sales, arrivals resume

Uptrend in gold to continue on producer de-hedging

Towards sustainable food security

FCI to buy paddy directly in Orissa on experimental basis

CCI to take up integrated cotton farming in Gujarat, AP, M.P.

Central loan for KSIC to halt fall in cocoon prices

Ajit Singh denies flip-flop on GM soya oil imports

Coffee prices slip at Kochi auctions