The world economic crisis hit India's silk industry

Gulzar Ahmed, one of the thousands of textile self-employed workers behind the well-known local silk industry in Van Ness, found he was quite puzzled by the sudden soaring price of raw materials he bought from traders. "We are losing money now," Ahmed said. "The price has not fluctuated like this for years." What many spinners may not know is that more and more of their plight is due to the trickle-down effect of the world financial crisis Caused by. The sharp appreciation of the U.S. dollar over the past week has caused losses to many silk importers and has also affected those who have bought raw materials from rising prices. "The U.S. dollar was able to exchange 46 rupees last week and in just a week it has risen to 48 rupees." Silk yarn importer Vaubhav Kapoor said he imported large quantities of raw materials from China, the world's most popular silk production base. According to incomplete statistics, 98% of India's silk comes from China and the rest comes from Brazil, South Korea and Vietnam. This proportion is quite alarming. In India, only about 15% of the silk used domestically is made because the quality of Chinese products is better than that of local silk. "The dollar is killing us," said Kapoor. "The end consumer has to pay more. We can explain these economic fluctuations to some educated silkworkers, but more people still have a hard time understanding the world economy Fluctuations Before the crisis in the United States, another importer, DaanishKhanna, sold silk for silk at about Rs 1510 / kg and now has risen to Rs 1540 / kg. The higher the dollar, Khanna explained that although most traders can control the losses they face, consumers are actually the ultimate victims. Vivek Kumar, a member of the Central Silk Commission, pointed out in his report that the interconnectivity of the world Is the root cause of the local silk market. "When $ 1 was converted to Rs 43, importers ordered raw materials from China, at which point they probably did not expect such a sudden price change," Kumar said. "And they are going to pay more now More money, and everyone associated with it, will also be affected. "Before the recent crisis, the textile workers like Ahmed had experienced a severe economic crisis, and the shareholders and bankers of U.S. companies could cry for the financial crisis, and the same ones that Vannesi Silk products are exported to merchants and workers all over the world and Kapoor, who is also engaged in silk export trade, said that exporting products to other countries is also now fraught with risks. "Customers like the United States and Europe are currently in a very tense economic situation with exports Merchants are also very cautious about shipping exports, fear not to receive back arrears. "