Karnataka government would set up two multi-skill development centres at a total cost of Rs 72 crore in the district headquarters town of Gulbarga and here, labour and sericulture minister B N Bache Gowda said today.

Speaking to reporters after a meeting of Karnataka labour welfare board, he said 50 percent of the cost would be borne by the centre.

He said price of silk cocoons and threads have come down drastically in Karnataka, which accounts for nearly half of the total raw silk production in the country, adding, he would soon urge chief minister B S Yeddyurappa to release Rs 10 crore to Rs 15 crore to bring about stability in the market.

"Sericulture farmers are in difficult position," Bache Gowda said, adding, a state delegation would visit New Delhi again to press the centre to reverse its decision to bring down the import duty on raw silk from 30 percent to five percent.

He said the quantity of cocoons now available in the market in Karnataka is 50 percent more than the normal inflow, leading to dip in their prices.