NEW DELHI, Aug 12: Silk exporters have called for immediate implementation of the Tariff Commission recommendations to safeguard the interests of the industry.

The recommendations of the commission are important for the industry as they aim to rationalise import tariffs. ``In the event of quantitative restrictions (QRs) being removed, tariffs would play a key role in safeguarding the interests of local industry,'' chairman of the Indian Silk Export Promotion Council (Isepc) Srikanth said.

Speaking to The Financial Express, Nath said the proposal had already received clearance from the cabinet committee and expressed the hope that it would be implemented soon. In view of phasing out of the Multi Fibre Agreement (MFA) and complete integration with GATT by 2005, Indian silk products exporters believe that applying tariff restrictions on import of raw silk is the only answer to various challenges faced by the industry.

``Till date, import tariffs were usually levied on an ad hoc basis, and the Tariff commission seeks to address the problem in a more scientific manner,'' Nath said. The commission was formed to examine the issue of import tariffs from various angles. ``Besides identifying the industries which need protection and for how long, it would also take into account other inter-related issues such as effect on cost of production and benefits accruing to the end consumer,'' added Nath.

The silk products industry is faced with stagnant and even declining exports. Export of natural silk yarn, fabrics and made-ups in the financial year 1996-97 were Rs 430.2 crore as against Rs 445.4 crore in the previous fiscal.

As domestic production of 1,000 tonnes of bivoltine grades (superior grade of raw silk) is insufficient to meet the demand, exporters have to depend on international quality raw silk. At present, about 4000 tonnes of raw silk is imported under the duty exemption scheme (DES). The major share of raw silk imports into India is from China and Hong Kong. ``Lack of strict enforcement along the Nepal and Bangladesh border has led to a thriving illegal raw silk imports business,'' said Nath.

The interests of Indian sericulturists can be safeguarded only by putting a halt to illegal imports. The only way to curb this practice, Nath emphasised, is to bring raw silk imports under the Special Import Licence (SIL).

A lasting solution to these problems is that, ``Indian silk producers have to increase domestic production of better quality `Bivoltine' at competitive prices'', according to a report presented by the Federation of Indian Export Organisations (Fieo).

``The interest shown by some leading industrial houses like Tatas and Kirloskars to enter the sericulture business is a welcome step",added Nath. A report on ``Improvement of quality and quantity of silk production and marketing'' has been presented to the ministry in April-May this year. Another report jointly prepared by Tata Consultancy Services (TCS) and International Trade Centre, Geneva, is said to be under consideration, emphasised Nath.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.