From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, May 23: In the wake of the sharp crash in the prices of silk cocoons, Karnataka has promised a support price for cocoons in a couple of days to stabilise prices in the market. However, the exact quantum of support price or the date for enforcing it is yet to be decided.

Karnataka’s Sericulture and Labour Minister B N Bache Gowda said prices of cocoons crashed from Rs 350 a kg to Rs 100 a kg following increased supply of the commodity and import of silk from China after reduction in import duty from 30 % to 5 % in 2011-12 by the Centre.

''The Government has not yet fixed the support price,” Gowda said promising to hold talks with Chief Minister B S Yeddyurappa for fixing the support price for cocoons in 2-3 days.

A sum of Rs 15 crore would be released to the Karnataka Silk Marketing Board (KSMB) to lift cocoons from markets. Farmers spent Rs 180 to produce a kg of cocoons, he said and it was necessary ensure that their interests were taken care of.

Sericulture farmers in Ramanagaram, Kolar and other districts staged demonstrations and road blockade demanding the government’s intervention to restore prices.

A delegation would be taken to Delhi to urge Finance Minister Pranab Mukherjee to restore the import duty to the original level of 30 % to discourage import of silk from China.

The prices of cocoons crashed due to fall in the prices of silk from Rs 2,600 to Rs. 1800 a kg, he said pointing out that cocoon growers earned Rs 350 to Rs 300 per kg last year.

The Government has released Rs 12 crore in February this year to KSMB and lifted 60 tonnes of cocoons. There are 62 cocoons markets in the State.

Increase of area under the mulberry crop and roughly 30 % increase in supply of cocoons on account of good crop caused fall in the prices of cocoons in markets of Ramangaram, Srinivasapura, Kolar, Chikkballapur, Kanakapura and Sidlaghatta regions, which are the major sericulture centres in Karnataka.