B.Krishnamurthy

R.T.E. Society’s Arts, Science and Commerce College, Ranebennur – 581 115

China, Japan, Korea, India

SILK WORLDSILK WORLDA Study Relating to A Study Relating to

Top Silk Trading Top Silk Trading CountriesCountries

INTRODUCTIONINTRODUCTIONSilk refers to the thread made from fibre produced by Silk Worms used in textiles. It has the features of:High Value Low Volume CommodityPrecious and scarce natural fibreProduced in small quantity Available round the year Local and International Market for the products Consumed by affluent class of Society for luxury garments.China & India Continued to be the Major silk suppliers to the world.Due to its high density & intensity of silk fabric it is considered as “Queen of textiles” By Jan1. 2005, there would be a radical change in world silk market.

• To present the world raw silk production scenario.• To show the present production policy of top silk

trading countries. • To show the present situation of Indian silk industry.• To compare Indian sericulture with Chinese

sericulture.• To compare sericulture labour cost in Japan & in India• To Present the weaknesses of Indian silk industry.• To show the global opportunity of Indian silk industry

under WTO.

OBJECTIVESOBJECTIVES

World Raw Silk ProductionWorld Raw Silk Production

For the countries with farming base, high population and small farm landholdings, sericulture is boon and tailor made enterprise.Today more than 29 countries engaged in silk production activities, but consumed by all countries of the world.14 silk producing countries are situated in Asian RegionThe Contribution of Asian Region is 90% China, India, Japan, Korea are the top silk trading countries.Year 1995 witnessed worlds highest production of raw silk to the extent of 1,05,438 Tonnes.Only after 1970, china surpassed Japan and become No1 in the world silk production.

World Raw Silk Production

6026066900

7673282419

97337

8519279590

7172778530 81881

105138100388

70983

0

20000

40000

60000

80000

100000

120000

Year

In M

etr

ic t

on

ne

s

World Raw Silk ProductionWorld Raw Silk Production

The graph shows the growth of raw silk production in the world.

China continues to hold the key position, though presently production is steadily decreasing.

India remains second place, but the production improved considerably.

Japan reduced production from 5700 in 1990 to 557 M.tonnes in 2000.

Korea which produced 780 Mts in 1990 reduced to 165 Mts in 2000.

Thus there is shift in production in the Sericulturally advanced countries.

World Raw Silk ProductionWorld Raw Silk Production

Being the home land of Silk.Become leading producer and exporter of silk to the world.Silk occupies 9.5% of total textile GDP of the Country.Production reached highest level of 87,770 Tonnes in 1994.But now the production came down to 55,990 tonnes in 1999 is due to

a) enhanced labour cost & b) Global fall in silk prices

Domestic consumption is only 10%.

ChinaChina

The Chart clearly indicates that:The production came down from 87,770 tonnes in 1994 to 55,990

tonnes in 1999, is mainly due to global fall in prices

Silk Output and prices in China.

0102030405060708090

100

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Output(1000tonnes)Price($/kg)

Once the major silk producer, now it becomes worlds greatest consumer to the extent of 30,000 tonnes per year, equivalent to 20%-30% of total silk production

JapanJapan

Statement showing rawsilk production and import during 1987-2000

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

Year

ProductionImport

Chart clearly shows that: production decreased considerably from 7864 tonnes in 1987 to 557 tonnes in 2000 Imports increased from 1457 tonnes in 1987 to 2298 tonnes

People of Japanchanged their lifestyle of wearing traditional kimono to western style clothing

Production is reduced due to: High labour cost, reduced land availability and lack of interest among young generation.

JapanJapan

South KoreaSouth Korea

Sericulturally advanced country in the world. Silk is a traditional commodity It accounts 18% of Agricultural Income The production declined since 1977 due to rapid

industrialization and reduction in agriculture Now there is paradigm shift in sericulture from

traditional fabric making to non traditional, high value products like functional food,

Industrial and medicinal products, Thus the sericulture farmers are earning:

5 times more by silk worm powder and 6 times more by cordyceps

The Scientists have developed: Automatic Cocoon Harvester – proved 8.5 % efficient Artificial diet for silkworm rearing result

- 60% saving in labour Cost - 6 % increase in cocoon yield

Movable mulberry feeder – 27% feeding time reduced

Powdery Silk worm become functional food and have Blood Glucose lowering effect

Use of Mulberry leaves result as anti-ageing, anti-oxidation, lowering cholesterol level.

In 1996 Scientists developed Cordyceps proved as fatigue recovery, anti-ageing and

anti- cancer

South KoreaSouth Korea

INDIA

•Silk in India represent both culture and tradition • No function in India is complete without silk in any form.• India‘s share in world raw silk production is 1/6 and

ranks second in the world • Silk is the only agro commodity where 100% transaction is done under Govt. Supervision.• Indian scientists provide R&D support to various • Countries. • India is the only country in the world which cultivates all known commercial varieties of silk• Viz. Mulberry, Tasar, Muga & Eri

Silk Production in India & in Karnataka

Year Mulberry Tasar Eri Muga Total Karnataka

1951-52 625 114 102 45 886

1961-62 1308 202 134 56 1700

1971-72 2046 314 168 72 2600 1,775

1981-82 4801 257 147 44 5249 3,127

1991-92 10,658 309 704 72 11,763 5,482

1995-96 12,884 184 745 86 13,899 8,264

1996-97 12,954 235 864 73 14,126 8,328

1997-98 14,034 287 806 62 15,189 9,236

1998-99 14,018 - - - 14,018 8,944

1999-00 13,944 211 974 85 15,214 8,121

(Qty: Tonnes)

Of the total, Mulberry constitute 90% Mulberry Silk confined to 3 states

Viz. Karnataka, TamilNadu & Andhra Pradesh Together 3 states constitute 85% Karnataka being the traditional state The contribution of Karnataka is 65% Thus Karnataka is called as “Silk Bowl” of the country

INDIAINDIA

IMPORTS:Estimated requirement of Silk in India is 25,000 M.TonnesPresent Production is 16,000 M.TonnesTo meet the demand, India Imports Raw Silk mainly from China

Particular/Year 2000-01 20001-02Total Imports (M.Tonnes) 4713 6797Import from China “ 4333 6306% imports from China 91.94% 92.76%Value Imports (Rs. Crores) 475.15 620.78 “ “ (US $ Million) 104.02 131.31

India’s Export earnings

Item wise Exports

2000-01 2001-02 % increase / Decrease

Rs. Crores

US$Million

Rs.Crores

US$Million

Rs. US$

1. Natural silk yarn Fabrics, made ups.

1622.79 355.25 1309.47 274.87 -19.3 -22.6

2. Ready made garments

642.82 140.72 720.88 151.32 12.1 7.5

3. Silk Carpet 110.88 24.27 168.45 35.36 51.9 45.7

4. Silk waste 45.49 9.96 36.58 7.68 -19.6 -22.9

Total 2,421.98 530.21 2235.38 469.22 -7.7 -11.5

Source: Indian silk, Aug - 2002

•Silk is the traditional commodity of both the countries.•Both countries hold the place of Top silk trading countries.•China being No. I and India being No.2 position•Both are labour surplus countries.•Silk trade has been affected by both the countries.a) Increase in labour cost & b) global fall in silk pricesThus,

China shifting its production toa) less developed mountain areas and

b) non-traditional zonesBut, in India,Production is increasing continuously, even after global fall in prices and govt.making efforts to increase the productionThe Problems faced by India :i)Inadequate silk worm breeds to suit agro-climatic conditions & socio-economic

situationsii)insufficient irrigationiii)poor post cocoon technologyiv)Cottage & decentralized small scale activitiesv)Industry being mainly for domestic /home consumption

Comparison between China & IndiaComparison between China & India

Sericulture in China and in India

Sl.No. Particulars China India

Source: Indian Silk Aug. 98, P.6

2. Silk Worm Races Bivoltine Multi&bivoltine3. Leaf yield/ha/year/ (kg) 40,000 30,000

15. Domestic Consumption About 10-15% 85-90%

1. Production Plan Export Domestic

4. Dfls brushed / ha / crop / year 4000 2500

5. Cocoon yield / 100 Dfls (2 box) (kg) 55-60 35-406. Leaf cocoon ratio (kg) 18-20:1 26-28:1

7. Cocoon weight (g) 1.9 1.6

8. Cocoon yield/ha (kg) 1200-2500 750-1250

9. Shell percentage > 21-22% 18-19%10. Filament length (m) > 1000-1200 700-80011. Renditta 6-6.5 8.5-9.512. Grade of silk > 1A, 2A, 3A. B-F13. Exporting Mainly India (45%) >50 countries

16. Cocoon price (Rs/kg) 55-60 90-110

14. Cocoon Price fixation Based on quality Open Auction.

Labour cost – A comparison between India & JapanLabour cost – A comparison between India & Japan

Component/OperationComponent/Operation

Man hours UtilizedMan hours Utilized

Labour efficiencyLabour efficiencyIndiaIndia JapanJapan

I a) Mulberry 187.50 18.00 10.41

b) Mulberry pruning & Other operation 67.50 7.50 9.00

c) Plant protection 4.50 1.50 3.00

Total 259.50 27.00 9.6

II a) Silk worm rearing 17.10 6.67 2.56

b) Leaf Harvest 96.00 37.35 2.57

c) Mounting of Worms 288.00 43.05 6.69

d) Cocoon harvesting & marketing total 24.00 21.15 1.13

Total 425.10 108.22 3.93

Grand Total 684.60 135.22 5.06

CONCLUSIONCONCLUSION With stiff competition from synthetic fibre, silk production is continuously increasing every year. Decline in production in china, Japan & Korea gave opportunity to

India to increase production Under Globalization, the world class quality and competitive price

for its products be sustained. With full implementation of WTO agreements on Textile Industry

by Jan 1, 2005, there would be a radical change in world silk market Exclusive brands of “Indian Silk” be developed