'Govt purchases silk yarn to stabilise prices'

Steps were being taken to ameliorate the problems of the local silk weavers and the mulberry cultivators, due to the fall in prices of cocoon and silk yarn. Silk yarn were being purchased at the major silk purchase centres in the State to stabilise the prices, said Karnataka Silk Marketing Board president K M Hanumantharayappa said.

He was speaking to reporters during a visit to the silk purchase centre and the cocoon market in the town on Thursday.

The steps taken by the State would lead to the reelers purchasing the cocoons at higher prices, he said.

 A proposal had been sent to the Centre to provide an aid of Rs 200 crore to help the reelers, he said.

If the Centre released the aid amount, the interests of the reelers, weavers and the farmers could be protected, Hanumantharayappa said.

The Karnataka Silk Marketing Board, which was on the verge of closure due to huge losses, is being revived with the Rs 10-crore grant from the State government, Hanumantharayappa has said.

“We have sought Rs 50 crore. The chief minister has promised that the amount would be released in installments,” he said.

Hanumantharayappa said constant pressure would be maintained on the Centre to reconsider the reduction in the import duty on silk.

The consequences of the Centre’s move to reduce the import duty were being reviewed, he said.

He collected details on various aspects of the crisis from the officials concerned.