PANEL DISCUSSION 3 GIs for Market Differentiation, Reputation & Quality – An Insight

1. PANEL DISCUSSION 3 GIs for Market Differentiation, Reputation & Quality – An Insight MUGA SILK OF ASSAM SEPTEMBER 18, 2008 NEW DELHI

3. Muga Silk of Assam MUGA Silk of Assam obtained GI protection on July 20, 2006 (registered) under Classes 23, 24, 25, 27 and 31 Names and classification of goods under Section 11(3) of GI Act Class 23: Yarns and threads, for textile use Class 24: Textiles and textile goods, not included in other classes ; bed and table covers

4. Muga Silk of Assam Class 25 : Clothing , footwear, headgear Class 27 : Carpets, rugs, mats and matting, linoleum and other materials for covering existing floors; wall hangings (non textile) Class 31 : Agricultural, horticultural and forestry products and grains not included in other classes; live animals; fresh fruits and vegetables; seeds, natural plants and flowers; foodstuffs for animals, malt

5. Muga Silk of Assam • MUGA Silk (non-mulberry) is a product of the Silkworm Antherea Assamensis endemic to Assam peculiar to agronomic and environmental conditions • The pupa of these silkworms feed on som (Machilus bombycina) and sualu (Litsaea polyantha) leaves that provides Muga the unique golden yellow color • The natural golden color silk produced is known for its glossy fine texture and durability • MUGA possesses characteristics, reputation and quality that are essentially attributable to its geographical origin in Assam

6. Muga Silk of Assam • MUGA part of Axomiya community’s traditional knowledge and know-how and linked to tradition and antiquity and is part of the community’s cultural expression. • The ‘localness’ of the product is material to the communities’ sustainable development • GI protection is capable of serving as a tool for protecting traditional knowledge and cultural expressions for the advancement of indigenous women and rural people in general

7. Muga Silk of Assam • GI Protection for Muga Silk of Assam • Proof of Origin (Historical Records) • Geographical Area • Uniqueness • Method of Production • Inspection Body

9. Yarn Male moth Female moth Eggs Cocoon Pupa Fabric Life cycle of Muga Silk Worm 5th instar 1st instar 4th instar 2nd instar 3rd instar

10. Som plant Soalu plant

11. GEOGRAPHICAL AREA

13. Quality & Characteristics of Muga • Unique method of cultivation and production • Color stability (everlasting) • Golden colour increases with each wash • Tensile Strength (4.53g/dn); strongest amongst all silks • UV Absorption capacity (>80%) • Durability (over 50 years) • Acid resistant (resistant to concentrated Sulfuric acid) • Comfortable to wear both in summer and winter • expensive

14. Quality & Characteristics of Muga • Thermo stability (355 degrees C to 365 degrees C by DSC)

15. IDENTIFICATION OF MUGA 1. BURN TEST: The burn test is the best way to confirm the purity of silk. Burning of silk will leave a powdery ash and will extinguish itself when the flame is removed just like wool. The easy way to tell silk and wool apart in the burn test is the smell. Where wool have the smell of burning hair, the silk have a much more disagreeable smell. 2. Chemical Test: The fibre of Muga, Tussar and Bombyx mori have been treated with Conc. Sulphuric acid. The fibre of Bombyx mori. dissolved immediately and the colour become yellowish. The fibre of muga silk has been partially dissolved without changing the colour whereas the colour of Tussar fiber has changed to purple and dissolved partially

16. INSPECTION BODY The proposed GI inspection system will be specific and deal with Traceability Geographical origin and geographical boundaries Specific soils Specific breeds or plant varieties Specific production criteria or methods Specific know how Particular colour and appearance Specific labeling

17. INSPECTION BODY AUTHORITY • Department of Sericulture, Govt. of Assam • Representative Committee to be formed • weavers’ association • Relevant District Industry Officer • Representative of Sericulture Department • PIC /ASTEC • Laboratory and Certification - Institute of Advanced Studies in Science and Technology, Assam

18. INSPECTION BODY • Develop and adopt specified requirements or standards • conformity assessments – product sampling • Post-market surveillance • Public outreach, information and education • Enforcement of GI

19. ECONOMICS OF MUGA Total family of cultivators = 27,878 Average cultivating area of a family = 0.3 Acre Total area = 7172 acres Average Muga Yarn Production per year = 98 MT For 2005 - 2006 = 104 MT Value of Product @ Rs. 3,500/Kg = INR 34.30 Cr

20. ECONOMICS OF MUGA Annual Export of Muga Fabrics Export started in 1997-98 Export value in the year of 2005-06 = INR 235.62 Lacs Export value in the year 2006-07 = INR 300.00 Lacs Export value in 2007 - 2008 = INR 221.60. Lacs (28104 sq. metres) Country of Export = JAPAN, USA, EU Products = Home Furnishing Source: ARTFED Guwahati

21. OUTSTANDING ISSUES • Indications which identify a good as originating in a territory or a region, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin • Why ‘Muga Silk of Assam’? 94% of Muga is from Assam but 6% from West Bengal and Meghalaya. Central Silk Board encouraged Muga cultivation all over the country! • No system of meaningful and effective quality control and certification – Capacity Building • Lack R&D and technology up gradation without compromising traditional methods • Ineffective Marketing and vision

22. WAY AHEAD • CHAMPAGNE Comité Interprofessionnel du vin de Champagne was founded by an Act of 12 April 1941 – for safeguarding the harmonic development of the trade • A restricted and non extendable region • A small vineyard # 33 000 ha • A parceled vineyard : > 280 000 parcels • Small vineyards (average < 2 ha) • Strict and qualitative production requirements (unique & traditional production conditions) • A restricted yield (determined each year) • A constraining production process (pressing, process, ageing…) • A temporary and precarious Right to use the designation

23. WAY AHEAD • CHAMPAGNE • The collective valuation of a unique name • A single designation • Numerous trademarks • A worldwide success that benefits the whole industry and region • A collective protection • Co-handled by the administration (French and European) • Collective and mutualized protection system • A system that protects both producers and consumers • Collective investments • R&D • Promotion and education

24. WAY AHEAD • SCOTCH WHISHKY • Scotch Whisky Act 1988 and the Scotch Whisky Order 1990 • describes how Scotch Whisky must be manufactured, ingredients to be used, and that Scotch Whisky must be distilled and matured in Scotland, the minimum period for that maturation being three years • the legislation prohibits the manufacture of whisky in Scotland except Scotch Whisky • sets a minimum alcoholic strength of 40% (the same as under the current EC Regulation (EEC) No. 1576/89 for whisky) • Civil, criminal and border measures remedies to stop breaches of the law

25. WAY AHEAD • Obtaining the GI is an opportunity • GI protection could trigger higher Market reward – standardization of quality, embedded ‘messages’ about quality – consumers in niche markets may be willing to pay a Premium • Accumulated ‘Goodwill’ has to be aided by niche marketing, brand development and extracting value • Muga is a cottage industry in Assam - generating additional employment, increasing income and retaining population in these areas • Traditional Knowledge And Know-how • Bangladesh Rural Advancement Committee (BRAC) & its chain of retail handicraft stores called ‘AARONG’ - access to resources, support their entrepreneurship and empower them

26. WAY AHEAD 1) control the quality of Muga through a testing and certification system 2) promote and protect the name ‘Muga’ 3) promote R & D 4) promote and organize the marketing of the products 5) promote a sustainable development

27. THANK YOU Ms. Krishna Sarma Managing Partner CORPORATE LAW GROUP 1106-1107, Kailash Building, 26, Kasturba Gandhi Marg, New Delhi-110001 Tel : +91-11-43621000 (100 Lines) Tel : +91-11-23357731 (Direct ) Fax : +91-11-23357721 Email: krishnasarma@clgindia.com www.clgindia.com