Silk Fabric

Incentives Sought By Silk Fabric Exporters

Silk Fabric Silk fabric exporters are looking for incentives for the industry to remain competitive as raw silk, which is imported from China, was becoming costlier. They are planning to meet commerce ministry officials in New Delhi to discuss the withdrawal of export incentives under the Foreign Trade Policy 2015-20.

Under the previous Exim policy (2009-14), exporters could get a five per cent incentive on woven silk fabrics, which was applicable on exports to all countries, members of the Silk Association of India today said.

In the new policy, export of silk fabrics made only on handloom is eligible for a five per cent incentive. For powerlooms, it was lowered to two per cent. Further, exports to the US, Japan and the European Union countries are eligible for incentives.

Vikram Tantia, president of the Silk Association of India said that under the new policy, exports to one of the major silk markets are no longer incentivized. Australia, East Asia and Africa are also among the key markets for the export of silk from India. Moreover, several exporters in Karnataka, Bengal, UP and Bihar using powerlooms are not eligible for incentives.

Of the 470-million US Dollar silk exports from India (in 2014-15), 200 to 210 million US Dollar is to the US, the UK and the UAE. Of this, exports to the UAE are around 110 million US Dollar a major consumer of silk fabric.

Reference Link