Banarsi saree industry has been adversely affected due to import of cheap Chinese fabric imported from China.
There is no specific information available with Government about the various incentives provided to the silk manufacturers and exporters in China.
However, investigation by the Director General of Antidumping & Allied Duties (DGAD) has revealed that China is exporting silk fabrics into India below their normal value leading to dumping.
Anti-dumping duty on raw silk is imposed only on medium and low quality silk of the grade 2 A and below. Grades about 2 A which constitute high quality silk, are not subjected to anit-dumping duty.
Raw silk produced from domestic industry is also available to the power-loom silk industry in Varanasi at a price similar to the Chinese silk price or slightly lower price. Therefore imposition of anti dumping duty has not adversely affected Banarasi Saree Industry.
Power-loom silk weavers Associations of Karnataka, Uttar Pradesh & Gujarat, along-with CSB have approached and filed a petition with the Government of India (DGAD) to curb the import of cheap Chinese silk fabrics in to the Country.
The DGAD, after the investigations has recommended imposition of provisional anti-dumping duty by issuing Gazette notification on 28th April, 2006 pending final findings on silk fabric of weight 20-100 gms. Per metre imported from China, which has helped the power-loom industry.
Press Information Bureau Government of India
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