Q&A: H Hanumanthappa, Chairman, Central Silk Board

'Silk exports to reach pre-recession levels'

The Central Silk Board is hopeful of sound growth in exports in the current financial year on the back of revival in demand from the US and Europe. However, the board is struggling with the fall in area under silk in major growing regions. In a chat with Debasis Mohapatra, its chairman, H Hanumanthappa, talks about the strategy of board along with the concerns of the industry. Edited Excerpts:

How is the silk export scenario in India as of now?
The demand for silk exports is robust from the US and the European nations. Silk exports, that had fallen to Rs 2,750 crore in the last financial year, are in a revival mode. We have registered export revenue of Rs 2, 900 crore till November and are hopeful of reaching Rs 3,200 crore by the end of this financial year. We may also reach the 2007-08 level of Rs 3,500 crore.

 

Will the debt crisis in some European nations affect export growth?
I don’t think the crisis will have much of an impact on silk exports. Our major market is the US, demand from which remains robust.

How is the domestic demand growth?
Domestic demand is slowly showing signs of growth. Except commercialising silk sarees, we are diversifying into other sectors to attract varied consumers, especially youth. We want to make silk contemporary and appealing to the youth and for that designers are being roped in all the silk clusters in the country. Our effort is to make silk popular among the youth of the country.

How are you addressing the fall in silk acreage in major growing regions, especially in Karnataka?
There are a number of initiatives that have been taken up by the Central Silk Board to increase the area under cultivation. While areas in traditionally cultivated geographies are squeezing due to urbanisation, we are trying to tap non-traditional areas for growth. The fall in acreage is prominent in Karnataka, Andhra Pradesh and Tamil Nadu due to competition from turmeric and high real estate prices. So, we are initiating silk cultivation in some areas of North Karnataka like Hubli, Belgaum, Bijapur and Raichur, among others. Other states, like Uttar Pradesh, are also on our radar.

How do you see the next Plan period (2012-1017) panning out for the silk industry?
Financially, we don’t see any problem in the implementation of new programmes. We are producing around 20,000 tonnes silk and our consumption is around 26,000 tonnes. So, we are targeting a production level of 26,000 tonnes in the next five-year Plan.

What is your expectation from the next Budget?
As I have already mentioned, there is no dearth of money for growth of the silk sector. Our planned budgetary allocation stands at Rs 320 crore as of now. We are looking at Rs 400 crore allocation in the next Budget.