Silk exports from India declined by 21% in value terms during the financial year ending March 2008.
According to the latest statistics released by Central Silk Board (CSB), silk item exports declined to Rs 2,637 crore from Rs 3,338 crore. In fact the ministry of textiles has set a target to touch around Rs 3,770 crore in silk export earnings, but it could achieve only 70% of silk export earnings in the last financial year 2007-08.
A major reason for a fall in exports was due to cut down in orders from the US, the traditional market for Indian silk exporters. When the rupee strengthened against the dollar in 2007, most of the Indian export firms reduced taking orders from US buyers. Following this, the US has started procuring silk material from other markets like China. When the rupee started weakening against the dollar since the beginning of this year, the Indian companies approached US buyers for orders but they failed to get, trade sources added.
Silk exports to the US declined to Rs 592 crore in the last fiscal from Rs 856 crore a year ago. Exports to Italy also declined to Rs 170 crore from Rs 235 crore, while exports to Spain tumbled to Rs 148 crore from Rs 176 crore and France to Rs 96 crore from Rs 143 crore. Exports to the UK and UAE almost stayed at flat level, while it increased to Rs 101 crore from Rs 86 crore to Hong Kong.
Still the US ranked first in importing silk items from India by contributing almost 22.5% in India’s silk earnings followed by the UK, UAE, Italy and Spain.
In overall, earnings by exports of natural silk yarn, fabrics and made-ups from India declined to Rs 1,525 crore compared to Rs 2,365 crore a year ago while foreign exchange through ready-made garments increased to Rs 1,043 crore from Rs 817 crore. In March 2008 alone, India’s readymade garment exports increased to Rs 174 crore from Rs 59 crore.
In the earlier years India used to export huge silk waste, but earnings through silk waste declined almost by half to Rs 12 crore in the fiscal 2007-08 from Rs 23 crore.
With the rupee weakening against the dollar, Indian silk exporters anticipate that their exports fortunes will shine again in the current financial year.