Aiming at promoting the Silk and Handloom industry of Uttar Pradesh, the state will soon have its own Silk Exchange in Varanasi, the centre of the famous silk-weaving industry. The Silk Exchange is expected to facilitate the ready availability of silk to traders and sari manufacturers at reasonable prices.
Along with this, the government is also working towards opening the Karnataka Silk Marketing Board (KSMB) office at the Silk Exchange to make available raw silk reeled in the State to weavers making Banarasi sarees in Uttar Pradesh. The silk exchange will check the smuggling of silk in the region and lead to lowering of costs for the silk traders and manufacturing units.
Working in the same direction, the government will also connect weavers of the area with Silk Exchange in the next six months. The department will also work on the digitization of silk exchange under the ODOP scheme.
Once the silk exchange becomes operational, the weavers, yarn making units and silk exchange will be brought to a single platform through digitization. This will also make availability of a single platform for sale and display of finished silk products of weavers.
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In order to facilitate the marketing of raw silk produced within the State, the government is setting up the Silk Exchange. The reelers of Uttar Pradesh will bring the silk produced by them to the Silk Exchange for sale. All the silk lots brought this way will be first tested for quality and then the floor price of each silk lot will be fixed based on the average silk price in the state and the quality of the particular lot. Then the silk lots are put up for auction. The exchange ensures spot payment to the reelers.
The operations of the Silk Exchange will stabilise the silk reeling industry and encourage more investment in the reeling industry by private entrepreneurs. It will also eliminate middlemen such as financiers and commission agents and establish a direct link between the producers and the consumers of silk in Uttar Pradesh.