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Publication of

Information under

section 4(1)(b)

of the Right to

INformation Act,

2005.

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1.ABOUT THE INDUSTRY AND KSMB ROLE:
       Sericulture is a principal occupation and a prime industry in the State of Karnataka. There are about 1.5 lakh families engaged in activities which are auxiliary and essencial for sericultural activities in Karnataka. KSMB is the only public sector organisation which is activly involved in Price Stabilisation by interacting with reelers and through marketing of silk yarn thus fulfilling the underlaying principle of making sericulture sustainable.
     In achiving the above objectives , the Company is serving the interest of the Reelers,Weavers and Twisters, the most important segments of silk community after farmaers ans silk worm rearers.The company as one of the biggest licenced buyer, strives to maintain stability in silk prices and to privent the formation of groups and cartels among traders and merchants.

2. KHADI & VILLAGE INDUSTRIES CELL :
   The company is also recognised by the KHADI & VILLAGE INDUSTRIES COMMISSION, MUMBAI under Regn. No. Mumbai/ccc/KNT/New-01/2001-02 Dt.27.9.2001.Our prime objective is obtaining silk directly from por artisans and to sell to the poor weavers thereby generating regular employment and income to the poor rural masses who are entirely dependent on Agro based silk yarn cottage industry.

3. IMPORTANT LEGISLATION APPLICABLE:

  • Companies Act, 1956
  • Karnataka Silk Worm Seed, Cocoon and Silk Yarn (Regulation of production, supply, distribution and sale) Act, 1959

4. CAPITAL BASE :
     The Authorised Share Capital of the Company is Rs. 40 Crores out of which the Paid up Share Capital is Rs. 31.45 Crores. As on 31-03-2001.  The company has made a marginal profit of Rs.11.65 lakhs during the year 2003-04.   The transactions of the company has not improved after 2004-05 due to continued recessions in the trade and also   free availability of imported silk in the market and also due to competition from the private traders transacting outside the Silk Exchanges there by avoiding the market fee which is one of the components of selling price.  The accumulated loss at the end of 31.3.2007 was Rs.1414 lakhs.   
     The Company is proposing to restructure its activities so as to revive its transactions to help the people involved in the Sericulture Sector more particularly Reelers and Farmers.   This is due to abundant and free availability of imported silk, which is posing  tough competition for domestic silk.  

5. REQUIREMENTS :
1. Karnataka Silk Marketing Board is the only market intervention Agency for silk yarn in the country, which was established by the State of Karnataka, the major producer of silk yarn, to protect the interests of the people involved in the Sericultural Activities, who are mostly from the vulnerable sections of the Society.  Without alternative employment potential and opportunities, cheap rolex replica this population, which is about 12 lakhs, has to be taken care of even during the regime of WTO.  Therefore strengthening of KSMB is very much essential.

2. KSMB may be identified as Nodal Agency to monitor the entire foreign silk transacted in the State of Karnataka to protect the domestic Sericulture.

3.According to available figures the country has imported silk yarn as per the table given below:

SlNo
Year
Quantity of Silk import (tons)
1
1999-2000
4581
2
2000-2001
4713
3
2001-2002
6808
4
2002-2003
9054
5
2003-2004
9258
6
2004-2005
7924
7
2005-2006
8334
8
2006-2007
5567

4. Anitidumping laws have to be still strengthened to protect the domestic industry.

5. Customs duty which was 44.04% is required is to be enforced.

6. There is need to contain unaccounted silk transactions.