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"The problems being faced by the producers of raw silk in the country and steps taken by the Government in regard thereto. "
   

THE MINISTER OF TEXTILES (SHRI KASHIRAM RANA): Madam, at the outset I would like to assure the hon. Members who have moved the notice of calling attention to this matter, that the Government is already well aware of the issues and has taken necessary steps.

Sericulture is an important industry with a significant contribution to the economy. It provides livelihood to an estimated 60 lakh persons in farming, reeling, twisting, dyeing and weaving activities and adds above 500 million US dollars to the country’s export earnings. The country’s production of raw silk has risen to an estimated 17000 tonnes ranking it as a major world producer, next only to China.

SHRI K.H. MUNIYAPPA : You may please tell us, what it is, in metric tonnes.

SHRI KASHIRAM RANA: Shri Muniyappa, I am giving the figures of import of raw silk in detail. In 1996-97, it was 2,911 metric tonnes. He was correct in what he said. Shri Deve Gowda also said that. In 2001-02, we imported raw silk to the extent of 6,700 metric tonnes.

In terms of money, we spent Rs.790 crore on import of yarn, fabric, raw silk. At the same time, we got foreign exchange worth Rs.2400 crore by exporting silk commodities. So, I would like to clarify the Government’s position. We want to restore our earlier import duty.… (Interruptions)

MADAM CHAIRMAN : Members are talking about the stocks which are not moving. Huge stocks are lying, which are not moving.

SHRI KASHIRAM RANA: I am coming to that point. … (Interruptions)

SHRI K. YERRANNAIDU : Sir, the hon. Minister is giving the official figure, which is 6,700 MT. How has this been achieved? This is on account of reduction of import duty. Has the Government made any assessment of the extent to which smuggling in our country is going on? More than double quantity of smuggled material is available in the country and that is why there is a steep fall in the prices. Has the Government made any assessment with regard to the smuggling that is going on every year? On account of reduction of duty by 40 per cent, we could import 6700 MT. To some extent, even 40 per cent increase is also under consideration. Had it been done a few months earlier, to some extent we could have saved the farming community. So, my request is, without waiting for any long, the Government should enhance the Customs Duty by maybe 40,50 or 60 per cent.… (Interruptions)

SHRI KASHIRAM RANA: I have already said that the Government is considering that proposal.… (Interruptions)

SHRIMATI SHYAMA SINGH (AURANGABAD, BIHAR): About 75 per cent of silk is being smuggled. What about the smuggling that is going on in our country? Why is that not being controlled and checked? That is the basic question.

MADAM CHAIRMAN: The Members are saying that export is not as much the problem as is smuggling.

SHRI KASHIRAM RANA: So far as raw silk is concerned, after introduction of OGL system, its smuggling is coming down day-by-day. Nepal border or Bangladesh border… (Interruptions)