Prices of Chinese raw silk are rising while India’s Charkha variety is declining
Recent developments in the global silk market have highlighted contrasting trends between China’s raw silk prices and India’s Charkha silk prices.
China’s Raw Silk Prices:
- Price Increase: In August 2024, China’s average raw silk export price stood at $67,872 per ton, marking a 1.8% decrease from the previous month. However, over the past year, high-grade raw silk prices in China have increased by 7.37% to $69.17 per kg.
- Market Dynamics: The upward trend in China’s raw silk prices reflects robust demand for silk, particularly in traditional clothing and winter garments. This demand surge has contributed to the price increase.
India’s Charkha Silk Prices:
- Price Decline: In contrast, India’s Charkha raw silk prices have experienced a significant decline. Over the past year, these prices fell by 27% to $36.66 per kg.
- Market Challenges: The decline in Charkha silk prices is attributed to several factors, including competition from cheaper and higher-quality raw silk imports, particularly from China. This has led to reduced demand and lower prices for domestic silk producers.
Implications for the Silk Industry:
Economic Impact: The rising prices in China may benefit Chinese silk producers but could pose challenges for Indian producers who face declining prices. This disparity may affect the competitiveness of Indian silk in both domestic and international markets.
Market Dynamics: The contrasting trends highlight the need for strategic interventions in India to enhance the quality and competitiveness of Charkha silk. This could involve adopting advanced sericulture practices, improving product quality, and exploring new markets to stabilize and potentially increase prices.
While China’s raw silk prices are on the rise due to increased demand, India’s Charkha silk prices are declining, presenting challenges for Indian silk producers. Addressing these challenges will require concerted efforts to enhance the quality and competitiveness of India’s silk products in the global market.
