High prices fail to attract supply of silk cocoons

Despite the recent increase in the prices of silk cocoon, L’Usine Textile du Rwanda (UTEXRWA) has not received any supplies, the company’s management has said. “Even after offering a better price we have not received any cocoons up till now,” the company’s Managing Director, Raj Rajendran told The Business Times. Rwanda’s only textile factory recently increased the prices of silk cocoons per kilo by half a dollar in order to encourage sericulture farmers produce more. According to the new prices list, a Kilo of silk cocoons in the first grade (dried and sorted) now goes for Rwf3,300 up from Rwf3,000. Prices for the third and last grade have also increased from Rwf700 to Rwf950. “This would also encourage farmers grow as we aim to develop silk production in the country,” Rajendran explained.Silk cocoon is a spin produced by a silkworm after eating up mulberry leaves. The cocoon is treated with hot air, steam, or boiling water to kill the moth before reeling.Silk production has regarded, by On-The-Frontier (OTF) Group, as one of the economic activities that are profitable and suitable for Rwanda’s economy. “Sericulture is more profitable than coffee and tea,” the OTF report reads in part. Last year alone, cocoon production generated about $19,000 (Rwf10.8 million) per annum from 283 hectares. Silk is one of the crops expected to diversify the country’s exports.The company recently threatened to suspend production because of the low supply of and production of cocoons to sustain the production capacity. According to company records, there are about 100 Kgs of yarn stock yet its capacity is to produce 21,600 Kgs of yarn per year from 172,800 Kgs of cocoons. The factory management said it will export the silk yarn in order to generate revenues for sustainability well as also providing market for mulberry farmers. Though UTEXRWA ventured into silk production last year with an initial investment of $900,000 (Rwf511.8 million), the American consultancy firm’s report says that said private sector is yet to make investments. Ends

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High prices fail to attract supply of silk cocoons