The government, in the last budget, had reduced import duty on Chinese raw silk to 5 per cent from 30 per cent, hoping to increase the supply of raw materials to the domestic industry.
Union Finance Minister Pranab Mukherjee and Commerce and Textiles Minister Anand Sharma informed a delegation of Union ministers and MPs from Karnataka that the government is studying the impact of the reduction in import duty on farmers and the industry.
The delegation apprised the ministers that over 11 lakh farmers have been left in the lurch due to the price crash following the rollback of the import duty.