Raw silk prices have skyrocketed in last one year, which has disrupted production in the value chain. Weavers of silk dhoti and other items from Karnataka, Tamil Nadu and other States in South and East India have stopped production as they are unable to pass on higher cost. Raw silk prices jumped over 65 percent to Rs. 4,603.93 per kg from June 2021 quarter.
According to data of market insight tool TexPro, Charkha raw silk is priced at Rs. 4,603.93 per kg in current quarter April-June 2022. The raw material was sold at Rs. 2,775.12 per kg in April-June 2021 quarter. Therefore, Charkha raw silk jumped 65.87 percent in last one year.
An analysis revealed that raw silk prices had touched as high as Rs. 4,930.86 per kg in January-March 2022 quarter. It means the prices eased down by 6.63 percent in current quarter. The prices had recorded increase of 16.59 percent in July-September 2021, 21.95 percent in October-December 2021 and 24.97 percent in January-March 2022 quarter over previous quarter.
As per Texpro, the prices have touched a low level of Rs. 2,070 per kg in July-September 2020 quarter when the prices had crashed 63.7 percent due to lockdowns and restrictions of COVID-19. According to trade sources, Indian silk production reduced during 2020-21 due to the disruptions caused by the pandemic. The total raw silk production in the country during 2020-21 was 33,770 MT, which was 13.41 percent lower than the production achieved during the previous year 2019-20. The production had also missed target set by the government in the year under review when India could achieve around 86.5 percent of the target for the year 2020-21. Raw silk production was 26,587 MT in the previous fiscal till December 2021 against target of 39,500 MT set for the entire year.
Raw silk demand had seen steep rise after the pandemic as economic activities jumped suddenly. The steep rise left weavers in the lurch. According to trade sources, large numbers of weavers who produce silk sarees and other items have stopped production as they are unable to pass on the increased cost of production. They could not come out from the impact of production disruptions due to COVID-19 restrictions.
India’s export earnings from silk items also reduced in 2020-21 to $198 mn from $247 mn in previous year 2019-20. The export stood at $211 mn in previous fiscal till December 2021. On the other hand, India imported 1,377 MT raw silk till December 2021 in financial year ending March 31, 2022. Raw silk import was 1,804 MT in 2020-21 and 3,315 MT in 2019-20.
