Exports of silk exports last year touched Rs 926 crore as against Rs 786 crore in 1993-94. Exports constitute about 15 per cent of total silk production in the country. Ironically India is the second largest producer of the commodity after China but lags behind in terms of quality and quantity of silk produced.

India also has a major domestic market compared to the other producing countries. Raw silk production in the country has gone up from about 13,910 tonnes in 1995-96 to 15,060 tonnes in 1997-98 but much remains to be done to achieve the target set for the ninth plan period which is 20,540 tonnes.

Raw silk imports, primarily from China, which are cheaper and of better quality has declined in recent years, indicating lower offtake and slowdown in the industry. Imports have come down to 3596 tonnes in 1996-97from 5403 tonnes in 1994-95.

The acreage under mulberry cultivation has also declined by 1.2 per cent to 2.83 lakh hectares in 1996-97 compared to 2.86 lakh hectares in 1995-96. The decline in acreage in the leading producing states Karnataka and Tamil Nadu was even more prominent. It acreage was reduced to 1.66 lakh hectares and 15188 hectares respectively in 1997-97 from 1.67 lakh hectares and 15188 hectares respectively in 1995-96.

On the other hand production of Tasar silk,mainly produced in the tribal areas of Andhra Pradesh, Bihar, Madhya Pradesh, Maharashtra and Orissa rose by 19 per cent to 231 tonnes in 1996-97.

Production of Eri and muga raw silk saw divergent trends. While eri silk production increased by 16 per cent to 861 tonnes, muga silk production declined by 14 per cent to 74 tonnes.

The slowdown is visible in production of silk fabrics, which is estimated to be 20.80 crore square meters in 1996-97.