India may impose an anti dumping duty on imports of mulberry silk from China. The aim is to protect the domestic silk industry. Imports from China increased considerably during the period from April 2013 to June 2014.

Anti dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry. India is the second largest producer of silk in the world, contributing about 18 per cent to world production. Most of the silk in India is produced from Karnataka, Andhra Pradesh, Tamil Nadu, Jharkhand, Chhattisgarh, Orissa, Jammu and Kashmir and West Bengal. However, the decision to initiate an anti-dumping investigation against Chinese silk imports has threatened the prospects of value added silk exports from India.

There is a shortage of satin silk fabrics in the country which is one of the main fabrics used for value added exports. Exporters feel the government should help domestic raw silk producers and weavers in improving the quality of their products rather than trying to protect them. The Indian silk export industry is dependent on China for the raw material. There is a fear any move to impose anti dumping duty on silk fabrics from China will encourage smuggling.