Price of Silk Rises After Earthquake and Floods Destroy Mulberry Silk Farms in China
August 27, 2008
SICHUAN PROVINCE, China — Indian silk furnishings and made-up exporters who have a carved a sizeable market share in globally have been hit hard by sky-rocketing prices of raw silk and short supply due to an earthquake in China's Sichuan province.
Sichuan is the primary supplier of dupion raw silk yarn to Indian exporters.
''The earthquake and subsequent floods in Sichuan have affected the import prices of raw material, which have gone up by about 30-40 percent,'' said the Indian Silk Export Promotion Council Chairman T.V. Maruthi. More than 100,000 people have lost jobs in silk manufacturing centers across the country and the yarn prices are up by 40 percent.
The earthquake, a 7.8-magnitude that struck on May 12, killed thousands of people and leveled as many as 80 percent of the buildings in Beichuan, one county of the province.
In other silk related news, Himatsingka Seide, Ltd, a leading exporter of luxury silk decorative fabrics, which has generally always made profits has recorded its first ever loss in recent years. The public listed company's bankers have advised that the market-to-market loss on forward derivatives contracts is nearly $40 million. Meanwhile the company has contested banks claims in the court of law. The company also recently bought stakes in Divatex, USA and Bellora, Italy. Its cotton bedding division may not add to profits for few more quarters but is expected to add sizeable revenues in the long term.
Sichuan is the primary supplier of dupion raw silk yarn to Indian exporters.
''The earthquake and subsequent floods in Sichuan have affected the import prices of raw material, which have gone up by about 30-40 percent,'' said the Indian Silk Export Promotion Council Chairman T.V. Maruthi. More than 100,000 people have lost jobs in silk manufacturing centers across the country and the yarn prices are up by 40 percent.
The earthquake, a 7.8-magnitude that struck on May 12, killed thousands of people and leveled as many as 80 percent of the buildings in Beichuan, one county of the province.
In other silk related news, Himatsingka Seide, Ltd, a leading exporter of luxury silk decorative fabrics, which has generally always made profits has recorded its first ever loss in recent years. The public listed company's bankers have advised that the market-to-market loss on forward derivatives contracts is nearly $40 million. Meanwhile the company has contested banks claims in the court of law. The company also recently bought stakes in Divatex, USA and Bellora, Italy. Its cotton bedding division may not add to profits for few more quarters but is expected to add sizeable revenues in the long term.