Bangalore: The Union Government has freed the silk industry from the clutches of State governments by amending the Central Silk Board Act in a move to liberalise the sector and help it take on arch-rival China for the top slot in world silk trade.

The Central Silk Board (Amendment) Bill, which was passed by the Rajya Sabha on Monday, permits free movement of raw material required for silk production as well as silk products, a Central Silk Board official said.

"Earlier, all activities such as mulberry cultivation, cocoon production, reeling, weaving and marketing were governed by respective State Acts which were controlling the whole mechanism. For every activity, a licence had to be procured from the State governments, which was an obstacle for the larger development of the domestic silk industry," the official pointed out.

Under the new legislation, stakeholders will get a free hand in the inter-State movement of raw material and products and promote a corporate culture, he said, adding that this would help bring a national perspective to the whole industry.

Intense competition

India and China are competing for a major share of world silk trade after Japan's gradual withdrawal from sericulture. The competition has intensified with the dismantling of the quota system under the aegis of the World Trade Organisation.

The new Act also provides for the setting up of a National Silkworm Seed Regulatory Authority under the Central Silk Board to monitor the supply of good quality seeds to farmers.

India is the world's second largest silk producer but is the biggest silk consumer in the world. India currently produces about 15,000 tonnes of silk as against the domestic requirement of 25,000 tonnes. "The gap of 10,000 tonnes is bridged mainly through import of Chinese yarn and fabrics. By increasing the domestic production of silk, particularly the bivoltine variety, we hope to cut silk imports from China by about 15 per cent in the next few years and bring it to the level of about 7,500-8,000 tonnes. Eventually, in about six to seven years, we want to become self-sufficient in yarn and fabrics," the official said adding that the new Act would benefit the silk industry.

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