With regards to continuing the anti-dumping duty on import of raw silk from China, the Commerce Ministry has ordered a sunset review investigation by the Central Silk Board in the matter.
In face of the pending investigation, the duty has been extended for another year up to January 1, 2009.
The silk growers in Andhra Pradesh, Karnataka, Tamil Nadu, West Bengal and Jammu and Kashmir are concerned that this exercise may lead to opening up the silk imports from China.
The silk growers are concerned since they will not be able to compete with Chinese goods.
Commerce Minister Kamal Nath has written to all the chief ministers of the silk-growing states calling on them to cooperate with the board in completing its investigation.
According to Nath, cooperation is necessary if the states want to protect their silk growers.
"It is extremely important that the concerned State governments fully cooperate with the designated authority and provide necessary data/information for smooth conduct of this investigation within the framework of the anti-dumping rules and within the given time frame," Nath stressed.
The Commerce Ministry sources pointed out that India has to tread carefully in dealing with the issue, without violating the international agreement on the anti-dumping process.
