The Karnataka government, to support the sericulture industry affected by the reduction in import duty on raw silk from 15 per cent to 10 per cent, has proposed to set up cocoon banks, silk testing centres, and revival of the price stabilisation fund.
Chief minister, Siddaramaiah said as suggested by the committee headed by agricultural economist H. Basavaraj, the state has set aside rupees two crore for the establishment of cocoon banks.
The panel had suggested to certify the quality of raw silk in different silk exchanges in sericulture-intensive areas, silk testing centres need to be established for which a major amount of rupees one crore had been announced for the centres.
Further to maintain consistent demand for raw silk, which in turn spurs demand for cocoons, there is a need for revival of price stabilization fund that will help Karnataka Silk Marketing Board purchase silk from reelers.
