Bangalore, India —Indian silk exporters for three decades were the most smiling community but are now distressed facing multiple problems to earn a decent profit to stay on course. 

"We are strained as silk yarn prices have touched $54 a kilo and for a long time the prices were around $ 24-28: And onslaught of polyester and viscose imitations have replaced silk furnishings in many applications like in upholstery and drapery range”, said S. K. Loyalka, managing Director, Zenith Exports limited, Bangalore. Many exporters like Zenith are in similar situation and Loyalka feels silk is silk and will regain its prominence when market conditions improve. But some damages in the market place may be irreversible as blended fabrics substitutes look silky and are easy to care. Viscose and Polyester blends have taken substantial sheen of pure silk market share making silk weaving commercially unviable. Importantly advanced western silk blended weaving with classy design & aesthetics that impart required elements for easy care and draping  has remained  a monopoly of Italian weavers, which is largely untouched by Indian silk companies. 

Labour-intensive silk sericulture farmers in China prefer urban re-location. Unpredictable weather has also played a crucial role and raw silk production has stagnated and long term prediction is that its availability will reduce India’s annual production to about 21,000 tons as against the demand in excess of 30,000 tons while production is growing at six percent annually and demand is increasing by 10 percent. Nearly 10,000 tons of silk and 4,000 tons of silk fabric is imported from China every year. India is the largest global consumer of silk and will continue to depend on China for long time. “During 1990’s we exported dupion silk fabrics at $16 meter and now at $14 but raw silk prices have more than doubled squeezing our profit margins”, recalled Raj K.G & Sunil. K.R, Export Executives of Swan Silks (PVT) Limited, Bangalore, India. Swan Silks began silk weaving and exporting 35 years ago and emotional bondage with silk fiber is very strong. Raj and Sunil the younger faces that will eventually lead the family business may find the situation tough but are willing to accept the new challenges.  Moving away from silk was an impossible task but profit margins are thinning out and diversification to other yarn substitute has begun. “Market sensitivity to higher silk prices restrict its usage and we now produce and export polyester blend dupions’ at $ 4 a meter, which makes commercial sense and pure silk range continues though expensive”, added Sunil. 

“Global consumer sentiment has been affected due to high prices as basic raw silk price has doubled: The worst is we are unable to recover in these market conditions as  we have no control on raw silk prices though India is the largest buyer of Chinese raw silk”, opined Sanjay Bajaj, spokes person of Bharat Silks, Bangalore, India. Limited option currently is to innovate, create and design that attract high end editors who still seek real silk and its royal features.    F&FI

Raj K.G & Sunil. K.R, Export Executives (these are future owners of the company) of Swan Silks (PVT) Limited, Bangalore,