CorporateSilk exchange to come up in Varanasi
The Uttar Pradesh government is setting up a silk exchange in Varanasi district to boost the sector in the backward Purvanchal region.
- Better days ahead for MSME sector: industry surveys - Engg goods exporters pitch for tax sops, simpler rules - CPSUs asked to tie up with 100 SMEs each - Vijaya Bank"s authorised capital doubles to Rs 3,000 cr - PM may soon clear policy to help MSMEs - Ministry to organise scientific instruments exposition
The exchange is likely to see the light of day by the middle of 2010 and is expected to facilitate ready availability of silk to traders and sari manufacturers at reasonable prices.
According to official figures, the silk consumption in UP is roughly 5,000 tonnes annually and the production is merely 50 tonnes. There are 160 government farms for mulberry silk culture in the state.
Majority of the silk trade is conducted in the unorganised sector and once the exchange starts functioning, the sector would tread on more professional terms.
To be set up at a cost of about Rs 15 crore, the central government will provide 80 per cent of the funds for the project, while the rest will be borne by the state.
“We have already received Rs 4 crore for setting up the silk exchange,” UP Silk and Textiles Minister Jagdish Narain Rai told Business Standard.
It is proposed in Ramnagar industrial area of Varanasi and will need about 2 bighas of land. The Exchange will be covered under National Agriculture Development Scheme.
“The proposed silk exchange will check the smuggling of silk in the region and lead to lowering of cost for the silk traders and manufacturing units,” Rai added.
Purvanchal region has two major industries – silk industry in Varanasi and carpet industry in Bhadohi district. The two districts have thousands of micro, small and medium (MSME) enterprises engaged in the manufacture, trade and export of silk apparels and carpets.
However, the region is bogged down by poor infrastructure and official apathy. The silk exchange would initially cater to silk trade and later on trade in raw material for the carpet industry could also be included, the minister informed.
Meanwhile, a silk board official claimed the state government had not sought any cooperation from the board in this regard.