Indian Silk: Production Unable to Meet Domestic Demand; Imports Rise and Exports Fall

The 54th report of the Parliament of India’s Standing Committee on Labour, Textiles and Skill Development, which was submitted earlier this month, provides alarming numbers about the state of the silk industry in the country.

Long Story, Cut Short
  • The Ministry of Textiles has attributed the low production to the “adverse climatic conditions which led to the decline in the production of one of the varieties of silk, i.e. tasar.”
  • If the sluggish production numbers are not a big cause of concern, then there’s a bigger set of ominous clouds looming over the horizon: India’s imports are rising.
  • All silk items currently being exported may not have the Silk Mark labels as this is a voluntary scheme, and weavers, retailers and other stakeholders are not bound to affix the Silk Mark labels on their products.
India itself is the largest silk consuming market and, therefore, it does not generate an adequate surplus.
Queen of Textiles India itself is the largest silk consuming market and, therefore, it does not generate an adequate surplus. But it primarily exports finished goods, that is, fabrics, made-ups and readymade garments which account for 82% of the sector's total export earnings. US, UAE and EU are the major destinations of the silk exports. Jemimah Gray / Unsplash

When the production of raw silk in China precipitously fell by 67% between 2017 and 2021, India was well poised to take over as the top global exporter of raw silk. Only, that didn’t happen.

The fortuitous advantage has seen been squandered away, with the country’s silk industry being held back not just by lethargy, but also by a lack of pro-active measures to wrest the initiative.

Today, China and India together account for about 95% of the global silk production of 86,311 metric tonnes (MT), even though silk is produced in about 60 countries around the world. China’s production has dipped from 142,000 MT in 2017 to 46,700 MT in 2021, and India’s global share in 2021 was 36,543 MT.

The global rat race aside, silk itself is of immense significance to the Indian economy. All four commercially known varieties of silk—mulberry, muga, eri and tasar—are produced in the country, with mulberry silk accounting for about 74% of the total production. Besides, the sericulture industry provides employment to 9.2 million persons in rural and semi-urban areas. 

But India has failed to capitalise on its infrastructure.

The 54th report of the Parliament of India’s Standing Committee on Labour, Textiles and Skill Development, which was submitted earlier this month, provides alarming numbers.

During 2023–24, the target fixed for Chhattisgarh state was 664 MT but till July 2023 only a measly 1 MT had been produced there. Similarly, 4 MT were produced in Madhya Pradesh against the target 85 MT; 28 MT produced in Uttar Pradesh against 470 MT; 3,047 MT in Andhra Pradesh against 10,009 MT; and 3,834 MT in Karnataka against 13,000 MT. 

The Ministry of Textiles has attributed the low production to the “adverse climatic conditions which led to the decline in the production of one of the varieties of silk, i.e. tasar.” The Committee did not buy the argument. It failed to fathom why if only the production of tasar silk had suffered, the other states where the production of mulberry, eri and muga is carried out too were showing a declining trend. The Committee has advised the ministry to ascertain the reason for this extremely low production and come up with a corrective action plan to arrest the slump in the production of silk.

If the sluggish production numbers are not a big cause of concern, then there’s a bigger set of ominous clouds looming over the horizon: India’s imports are rising.

Raw silk remains a major item of import, which accounts for 70% of the total value of the silk imports. According to the ministry, imports had been declining till 2021–22, which ranged from ₹10,413.5 million in 2018–19; ₹11,493.2 million in 2019–20; ₹5,705.6 million in 2020–21. Then it increased to ₹8,196.8 million in 2021–22, and almost doubled to ₹17,136.8 million in 2022–23. 

The textiles ministry believes this surge is due to the increase in demand for silk products in the domestic market due to the increased economic activity after the end of the COVID-19 pandemic. The increase in domestic silk production from 34,903 MT in 2021–22 to 36,453 MT in 2022–23 is not able to cater to the rise in the industry requirement. Therefore, in terms of volume, the import of raw silk almost doubled from 1,978 MT in 2021–22 to 3,874 MT in 2022–23. 

The Committee has urged the ministry of textiles to explore more ways to increase the productivity of all the four varieties of silk in India. “More research is needed to obtain increased productivity by crossing or hybridisation to get superior seeds, i.e. mulberry seeds as well as silkworm hybrids and improvised sericulture development techniques with high productivity.” The panel also sought quality control on raw silk imports.

A silk weaver in Telengana state. The Indian silk industry provides a livelihood to 9.2 million people, including farmers, reelers and weaver/sartisans.
Silk Weaver A silk weaver in Telengana state. The Indian silk industry provides a livelihood to 9.2 million people, including farmers, reelers and weaver/sartisans. Akhil Pawar / Unsplash

After low production and rising imports comes the issue of declining exports. The value of silk exports dropped from ₹20,318.8 million in 2018–19 to ₹17,733.8 million in 2022–23. In 2023–24 (till July 2023), exports worth ₹6,915.9 million have been reported by the ministry. The official explanation for the decline in exports of both raw silk and silk goods is the economic recession in the West, coupled with the Russo-Ukrainian war. The UAE, USA and EU are the biggest market for Indian silk products. The way out, suggested by the panel, is to explore the other markets.

Then there is the shortage of manpower. About 34% (727 in all) of the 2,109 sanctioned posts of Group A, B and C staff across 159 units of the apex Central Silk Board (CSB) are lying vacant. Jo categories like security, housekeeping, maintenance, drivers, etc, are being outsourced.

Many personnel have retired, and there is an acute shortage of experienced officers. Some of the posts have not been filled up due to non-availability of eligible people from the feeder cadre. The fact that so many positions are lying vacant would be a matter of worry because the CSB is a statutory body established in 1948 by an Act of Parliament for the development of sericulture industry in the country. It functions under the administrative control of the Ministry of Textiles. Its mandated activities are research and development, maintenance of a four-tier silkworm seed production network, leadership role in commercial silkworm seed production, standardising and instilling quality parameters in the various production processes and advising the Government on all matters concerning sericulture and silk industry. 

There is a branding shortcoming too. All silk items currently being exported may not have the Silk Mark labels as this is a voluntary scheme, and weavers, retailers and other stakeholders are not bound to affix the Silk Mark labels on their products. The Silk Mark Organisation of India (SMOI) is responsible for providing assurance of purity of silk products through “Silk Mark”. The Committee has recommended that affixing Silk Mark labels should be made mandatory for weavers, retailers and other stakeholders involved in the marketing chain.

Many projects too are stalled. During the current year 2023–24 (up to August), states have submitted 14 project proposals and received sanction for four projects amounting to ₹365.8 million but only ₹136.2 million could be disbursed. The reasons behind this low disbursal are manifold including non-submission of Utilisation Certificates due to non-utilisation of Central funds within the time limit; delay in sanction/release of states’ matching share, absence of required manpower for extension and monitoring activities of the sericulture sector, allocation of sufficient funds specific to sericulture development under state budgets, etc. The solution to this, the Parliamentary panel contended, could be a robust coordination mechanism under which periodic interventions should be made.

The textiles ministry believes this surge is due to the increase in demand for silk products in the domestic market due to the increased economic activity after the end of the COVID-19 pandemic. The increase in domestic silk production from 34,903 MT in 2021–22 to 36,453 MT in 2022–23 is not able to cater to the rise in the industry requirement. 

 
 
  • Dated posted: 22 February 2024
  • Last modified: 22 February 2024