The Karnataka State to support the sericulture industry affected by the reduction in import duty on raw silk from 15 percent to 10 percent has proposed to set up cocoon banks, silk testing centres, and revival of the price stabilisation fund.

Chief Minister Siddaramaiah said that as suggested by the committee headed by agricultural economist H. Basavaraj, the state has set aside Rs2 crore for the establishment of cocoon banks.

The panel had suggested to certify the quality of raw silk in different silk exchanges in sericulture-intensive areas, silk testing centres need to be established for which a grant of Rs. 1 crore had been announced for the centres.

Further to maintain consistent demand for raw silk, which in turn spurs demand for cocoons, there is a need for revival of price stabilization fund that will help Karnataka Silk Marketing Board to purchase silk from reelers.

Retired deputy director of Sericulture Department N.Y. Chigari said that the sudden collapse in cocoon prices was a major concern of the sericulture farmers in the State. Often, the price of even good quality cocoons would crash when the supply is surplus. The cocoon banks will help store stifled cocoons for as long as six months.