Raw Silk Price Trend Analysis 2026: Latest News, Price Drivers, Market Insights, Historical Prices & Supply Demand Analysis

Raw Silk Price Trend H1 2025

In the first half of 2025, raw silk prices in India followed a softening trend compared to previous years. This decline came after three consecutive years of production growth, which had pushed prices higher. However, a sharp drop in India’s raw silk output down by over 20% put noticeable pressure on the supply side. Despite this, prices did not spike as might have been expected. This was largely due to slower demand growth and a buildup of inventory from previous years.

Mulberry silk, which makes up the majority of India’s production, continued to dominate the market, but even here, prices dipped. The decline was influenced by a drop in cocoon prices at key markets like Ramanagaram, indicating weak demand from silk reelers and fabric manufacturers. The entry of cheaper imports and falling export volumes also played a role in keeping prices in check. On the import side, volumes and values both declined, suggesting that global trade sentiment in raw silk remained subdued.

Additionally, the domestic silk weaving sector, particularly in Karnataka, faced multiple challenges. Rising input and labour costs, coupled with pest issues and limited government intervention, weighed on production and processing. This created a cautious environment in the market, where buyers were not willing to purchase at higher rates, further stabilizing or even lowering the prices.

Analyst Insight

According to Procurement Resource, Raw Silk prices may recover moderately in the second half of 2025 if domestic demand picks up and production remains tight, but major gains would depend on policy support and global market movements.