The state of Uttar Pradesh is soon going to have its ‘Silk Exchange’ in Varanasi and it is expected to facilitate the ready availability of silk to traders and sari manufacturers at reasonable prices.

"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," a government spokesman said, adding that the government would also connect weavers of the area with the ‘Silk Exchange’ in the next six months.

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 will be put up for auction. The exchange will ensure spot payment to the reelers.

The spokesman said the department would also work on digitisation of ‘Silk Exchange’ under the One District One Product (ODOP) scheme. Once the ‘Silk Exchange’ becomes operational, the weavers, yarn making units and ‘Silk Exchange’ would be brought on a single platform through digitisation. This will also make availability of a single platform for sale and display of finished silk products of weavers.

"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," the government official said.