Karnataka Govt Announces Support For Silk Cocoon Growers

The Karnataka government has come to the rescue of silk growers in the State, who have been enduring a vertical fall in silk cocoon prices since March this year.

The government has announced that it would pay a support price of Rs. 30 per kg whenever the silk prices drop below Rs. 160 per kg.

Experiencing a drastic fall of almost 62.5 percent, the price of cocoons has dropped from Rs. 160 per kg during the first quarter of this year to Rs. 60 per kg at present.

The government has come out with a market intervention package of Rs. 50 million to help the silk growers who are suffering severe financial crisis due to a fall in silk prices and has announced that additional sums would also be released based on the seriousness of the situation, BN Bachegowda, Minister for Sericulture and Labour said.

He informed that the market intervention scheme has become effective from November 1, 2011 and added that the State government has already released Rs. 120 million to the Silk Marketing Board to help it stabilize the prices. Besides, it has even extended an assurance of raising a fund of Rs. 250 million from the commercial banks.

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