Global silk product offtake slows, yarn prices in China decline

Bangalore, May 29 | Updated: May 30 2007, 05:30am hrs
The worldwide slowdown in demand for silk products has hit silk yarn prices in China. Indian Silk Export Promotion Council chairman TV Maruthi said the lower demand was due to cheaper cost polyester products replacing silk goods worldwide. The silk yarn prices in the dragon country declined from $28 per kg a year ago to $24 per kg in 2006-07.

In its total production of 1.2 lakh tonne of silk, China dumps a major part of around 10,000 tonne of silk in India. However, China took a major hit from India in recent times following declining demand for silk items in the Indian market, he said and added that Indian raw silk and fabric imports declined remarkably in the last one year.

As per the statistics available with the Silk Board, apex body of the Indian sericulture industry, raw silk imports from other countries came down to 4,069 tonne during April to December 2007 compared to 6,464 tonne in the same period a year ago. For the same period, the Indian silk yarn and fabric imports also came down to Rs 684 crore from Rs 788 crore. However, fashion experts said silk products would gain worldwide importance in 2008 as it is expected to be a silk year, boosting sales of these products.

Earlier, Maruthi said The China International Silk Fair & Womens Wear Fair, organised by the China National Silk Association and other Chinese silk bodies including government agencies, would be held in October. The focus would be on chalking out a global programme to increase demand for silk worldwide.

As two major silk producers. India and China will discuss in length on it, he added.