Silk exports from the country increased year-on-year in the first 11 months of the current financial, but it would not touch the target that was set earlier.
According to sources in the state-owned Silk Board, the apex body of the Indian silk industry, India?s foreign exchange through silk exports surged by 9% to $627.37 million during April-February 2009 from $575.09 million reported in the same period a year ago. The increase in silk exports reported at a time when the recession hit the US and the European Union, which are major markets for the country?s silk industry.
However, the ministry of textiles has set a target to fetch silk export earnings of around $986 million during 2008-09, but it may not be possible to achieve the target, an official attached to Silk Board told FE on condition of anonymity. ?Even achieving 80% of the set target is doubtful,? he said.
The reason for India likely to miss its target was declined buying power of silk customers in the US and the EU.
During the first three quarters ended December 2008, silk exports to the US declined to $ 91.92 million from $107.72 million recorded in the same period a year ago. Another major market, the United Kingdom also has cut short its silk imports from India. In the same period, silk exports to the US tumbled to $60.77 million from $68.95 million.
The US, Hong Kong, the UK, UAE and Italy are top five countries that imported Indian silk goods in value terms during April-December 2008. The US, which accounted for 22.9% of total Indian silk exports during April-December 2007, recorded only 17.3% in the same period this financial year. In the same way, the UK?s contribution also declined to 11.5% from 14.6% in the total Indian silk goods exports.
Among the silk products, silk waste took major hit due to the global recession. The exports of silk waste declined to 274 tonnes in April-November 2008-09 compared to 618 tonnes exported in the same period in the previous year.
The share of silk goods exports in the total textile exports increased to 4.04% during April-December in the current fiscal from 3.53% reported in the same period previous year. Of the total Rs 58,641 crore worth textile products exported during April-December 2008, silk good exports stood at Rs 2,370 crore. In the same period last year, Rs 1,903 worth silk goods have been exported of the total textile exports of Rs 53,852 crore.
