China’s oldest silk exports are one of the crisis Huoshaolianying bear the pain.

Recently, the prices of raw silk enterprises to fall trapped. 5 industry leading enterprises request of the Ministry of Commerce released a letter to the collective relief, and since the Minister of Commerce Chen Deming on down to the Ministry of Commerce in from all over the special investigation and study, the industry is also seeking relief strategy.

Multi-emergency

Ge Xun soldiers during the past two months almost every day, stare at a computer, a watch around quotation of raw silk. Sichuan Silk as a sales staff, he covered his face sad. “International prices of raw silk from about two months, 200,000 yuan / ton fell to 130,000 yuan / ton or so, has now fallen below the cost of the acquisition.” Ge said soldiers Xun, which is engaged in the silk business, he encountered the past 10 years The largest decline in unit time.

What is even more worried than the price, with the financial crisis spread from around the globe silk orders fell sharply. Customs statistics show that in October this year, China’s raw silk exports 763 tons, up 20.02 percent reduction.

“Conservative estimates industry orders decreased by 30%.” Sichuan Silk Import and Export Corporation of Lu-sheng said the manager, Sichuan, part of the Si Chang began to cut production even while the same for large silk enterprises in Zhejiang Province is even more severe.

When faced with market volatility, the silk industry to show its most vulnerable side. Since last year, the bank credit crunch, some textile enterprises due to take to the bank shall not only by short-term loan-sharking, finance charges increased by 10%. According to the China Textile Industry Association statistics, China’s textile industry, the average profit margin of only 3.9 percent, and most of the companies in the industry profit margin even less than 1%.

Sijianshangnong

Another worrying problem is that the reduction of export fluctuations panic spread to downstream industries. It is understood that China’s silk industry’s dependence on a high, there are difficulties in the silk industry, natural silk industry affected.

Ge said the soldiers Xun, a great number of enterprises with the implementation of the sericulture farmers of the acquisition agreement. The biggest worry is that the cost of keeping up the silkworm breeder, and the market price has dropped, and serious damage to profits. It is reported that in 2007 Chuncan silkworm breeder in the culture of each net benefits are more than 200 yuan, but in 2008 only about 30 yuan.

Sichuan Silk Chen Xiangping president of the Institute of concern in the stability of food prices rising, is the greatest threat posed by the growing grain sericulturist cut down trees, if a large number of trees destroyed and the industry as a whole in 2045 are difficult to restore.

November 4, the state cocoon request sent to do “to increase market supervision. Artificially low prices and to prevent excessive speculation”, then the market had rebounded, raw silk rose to 145,000 yuan / ton.

I understand that Sichuan Silk, one of the main producing areas in Nanchong City, the local government through a variety of forms, to the general analysis of sericulture silkworm breeder “ebb tide from the” law. But Sang farmers worry that there is no special risk fund over the next few years to ensure that they are not spread to market risk.

Department of Government Action

In recent days, the overwhelming Sichuan, Chongqing, Jiangsu, Zhejiang and Guangxi and five more than the silk industry leading enterprises, joint letter to the Ministry of Commerce, would like to state administrative resources to save the silk industry.

As early as October 23, the Ministry of Commerce Office of the Commissioner of Chengdu into sent to Sichuan Silk Import and Export Group Co., Ltd. under the cocoon and silk production base to carry out research in the field, and the Commerce Department reported.

I understand that in the near future, including Minister of Commerce Chen Deming, a number of officials at the Ministry of Commerce in Guangdong, Zhejiang and other places on the silk business survey thoroughly the situation in order to inspire confidence and increase the use of export tax rebates, “Relief “The textile industry.

Secretary for small and medium enterprises in Sichuan Province Wu Pi-ray revealed that they had sent three officers went to Sichuan in several main producing raw silk research, and then to the provincial government to make a detailed report.

From the Ministry of Commerce Department that the person, faced with the plight of silk, in addition to the Ministry of Commerce to encourage confidence and support on the export tax rebate, will also focus on enhancing the competitiveness of cocoon silk industry, continue to implement the “East Saint shift” works perfect Reserve silk factory, silk factory to the reserve for the cost of subsidies. The development of sericulture and the establishment of venture funds will also be on the agenda.

Redemption policy

The grim situation of the silk industry, to seek the road of self-help has become when the weight of the Treasury.

I learned that to survive in the face many difficulties, some of the large-scale textile enterprises have begun to seek their own path of transition. If the main domestic market; scale and differentiation go on the road.

Lu Yun-sheng said that Sichuan is the silk trade of one of the largest province, before the main market focus in Indonesia, India-based South-East Asia market, is facing a crisis now part of the Sichuan Silk production companies to consider the other part of the enterprise, has begun to try to develop high value-added products Africa, the Middle East market. However, to cultivate a new market is not easy in the short term to increase value-added products, it is difficult to achieve, a bit far hardly solve the immediate problems of taste. Ge Xun soldiers said that the problem is mostly engaged in the silk trade enterprises have no domestic sales and related personnel, on the domestic market is particularly strange, has become a “war by non-professionals, lay civil war”, this situation needs to change A certain period of time.

However, the industry view, even though the domestic textile industry is faced with numerous difficulties, it also ushered in industry consolidation opportunities to upgrade. Chen Xiangping pointed out that the adverse situation in the export-control policies and domestic double pressure, in part out of small and medium-sized apparel businesses, to ease the situation of supply exceeding demand affordable clothing, textile and apparel industry to promote industry upgrading, it will pull the silk industry to upgrade.