Silk cocoon prices which had fallen steeply following the announcement of reduction in customs duty on raw silk have regained much of the lost ground.
Cocoon prices which had touched an all-time high of Rs 360 per kg in Karnataka, slipped to Rs 150 per kg, down a massive 57 percent, after duty on raw silk was reduced from 30 percent to 5 percent.
Yesterday they rebounded and touched Rs 250 per kg, following an announcement from the Karnataka government that it would approach the government to restore the import duty.
Karnataka accounts for 50 percent of the country's total raw silk production of 19,000 tons. The state produces 55,000 tons of cocoons and 8,000 tons of raw silk annually.
Against this, the demand for raw silk in India is estimated at 25,000 tons, of which about 6,000 tons are imported, mainly from China.
Fibre2fashion News Desk - India
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