Since 2003, the Indian government on China's exports of raw silk implementation of the provisional anti dumping measures, China's silk exports to India suffered serious setbacks, which led to the domestic market reached a new low cocoon prices continue, the industry trade, industry, agriculture suffered a devastating every link the hit.Industry concerns, if not settled the matter as soon as possible, not only long term efforts to obtain the silk industry, trade, industry, agriculture reform and integration of the results will vanish, and the country will increase farmers income and adding new pressures to expand employment, should the trigger others to follow suit, will further adversely on China's political and social influence.

National Office, said silk, in recent years, with India silk consumption and demand growth year after year, China's merchandise exports to India increased silk, silk India has become the largest commodity export market, accounting for China's raw silk exports nearly 50% of the total. In 2002, our exports of silk products in India 10,643 tons, up 33.8%, the amount of 167 million U.S. dollars, up 2.4%, the average unit price dropped 23.4%. Because of India's silk exports continued to drop in price trend of rapid increase in volume, in 2002, the Indian government began to export goods to China silk anti dumping investigations; January 2, 2003, on the level of Chinese origin and the 2A level 2A Following the provisional anti dumping raw silk to impose high taxes, after tax to the prices of goods in India was 33.90 U.S. dollars kg; in May 2003, Indian Customs began to plant all the silk from China, the implementation of grade retest measures, China's silk to India completely blocked the export category.Enterprises report since early 2003, the company's low level of factory wire basically stopped exports to India, causing clearance retest measures impeded the export business in May 2003 before the hair has more than 500 tons of cargo stranded in Indian port can not pass customs, customers will not pay the purchase price, resulting in about 60 million yuan funds to be occupied, receipt risky.

At the same time, further deterioration of the domestic market oversupply contradictions, speculators took the opportunity to lower prices of imports, raw silk export prices fell to 13 thousand U.S. dollars ton.China's raw silk export prices fall by factors of low prices of domestic enterprises, but according to the general oversupply situation in the international market, China's raw silk exports to India on the global export prices and prices of exactly the same, in accordance with our cost, not the current export price constitute dumping, companies are still meager profits.

China Silk Association, held the latest in the "production and marketing of silk products forum" on behalf of the participating enterprises have two worries:First, the Indian government will launch a series of Chinese silk products for anti dumping measures. July 3, 2003, India made the final ruling of anti dumping decision on the product concerned to the minimum limit our way of imposing anti dumping duties, imports CIF required not less than 27.97 U.S. dollars kg, or charge the difference, the price that India imports Business can not afford.