The Centre imposed anti-dumping duty on Chinese raw silk in 2003 and on fabric in 2006 to safeguard interest of sericulture farmers and weavers. However, the duty, instead of reducing exports, lead China to take price taking advantage of the regular shortage for raw silk in India. The anti-dumping duty on raw silk, which is due for renewal in January 2009, was imposed on the basis of landing price of $27.98 per kg of the raw silk or yarn. The duty is the difference between the base and landed price of raw silk. After implementation, the raw silk price in India climbed over $32 per kg last year from $12-13 in 2003. The anti-dumping duty pushed raw silk prices, which led to increased price of finished goods. This, in turn is affecting the silk weavers and exporters.
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