Date:16/12/2005 URL: http://www.thehindubusinessline.com/2005/12/16/stories/2005121600470900.htm

Back National Silk Tech Mission on cards

Our Bureau

Bangalore , Dec. 15

THE Centre proposes to set up a National Silk Technology Mission on the lines of the Cotton Technology Mission for the modernisation of the country's sericulture sector.

The proposed mission is likely to take off at the beginning of the 11th Plan, said Mr B. P. Singh, Joint Secretary (Silk) in the Union Textiles Ministry, on the sidelines of the inaugural of the 20th Congress of The International Sericulture Commission (ISC) here on Thursday. The three-day meet will discuss developments in sericulture.

The Central Silk Board (CSB) has prepared a draft document prepared for setting up the mission, which has been sent to the Textiles Ministry. Apart from an action plan for modernising the reeling sector, the Silk Technology Mission would also look into various issues such as boosting productivity and crop insurance for sericulture, he said.

Mr Singh said the Government is also keen to introduce a subsidy system for silk reelers who take up large scale reeling using machineries to be imported from Japan. The CSB is in the process of identifying prospective entrepreneurs who could take up investment in securing reeling machineries from China.

A subsidy of 25 per cent of the cost of the machinery could be worked out, he said, adding that the increase in the number of reeling machines could help increase the production of silk cocoons.

Speaking at the inaugural of the congress, Mr H. Hanumanthappa, Chairman, CSB, urged the ISC to come out with a code of conduct to take care of the interests of developing countries. The ISC should take note of the basic requirements of developing countries and come out with proper recommendations and code of conduct for the participating nations of the World Trade Organisation. "They should take care of the farming community and workers below the poverty line who are depending on the sericulture for their livelihood," he said.

China's offer

Faced with a second anti-dumping action by India in the past two years, China seems to be favouring an out-of-court settlement for dumping silk fabrics into India at prices below the cost of domestic production.

India had recently initiated the anti-dumping action against China, following a case filed by various silk producers and weavers' associations.

"We are pushing hard so that the decision (seeking anti-dumping duty of Chinese silk fabric imports to India) comes as early as possible. There is also a possibility that the issue may be sorted out otherwise also (through discussions)," said Mr B.P Singh, Joint Secretary (Silk).

"China has initiated a dialogue for an out-of-court settlement of the issue," Mr Singh said, adding, "We are going slow as we believe our case is very strong."