D Subba Rao, senior research scientist of the service centre, told Business Standard the market rates for silk cocoons at Rs 130-150 per kg were remunerative in 2006-07. But, last year rates nosedived and cost of production went up. Farmers were paid around Rs 100 per kg cocoons. As a result, farmers' profits tumbled.
The same disappointing trend is continuing this financial year too, which has led farmers to take their cocoon crop to the neighbouring Karnataka for marketing.
According to Rao the silk board has introduced new races of silk worm that give better yields and quality silk. The research centre at Chittoor supplies crossbreed silk worm layings while the one in Bangalore provides white silk worm layings. There are 65 seed producing centres in Andhra Pradesh.
The silk board sells 100 disease-free layings at the rate of Rs 275 to farmers. About 1,500 farmers in coastal Andhra cultivate cocoons in 2,500 hectare. And 100 layings (40,000 egg population) give a yield of 65-70 kg cocoons. Farmers grow 300 disease-fee layings per hectare per cocoon crop and earn Rs 21,000 (kg Rs 100) while the expenditure is Rs 10,000. They reap one crop every two months and 5 crops a year. Their annual income is around Rs 1 lakh per hectare and expenditure Rs 50,000.
There are government silk reeling centres in every district, which along with private silk reelers bid for cocoons produced by farmers. As there has been no competition from private reelers, cocoon rate in the markets is collapsing.
"China is our rival in the international market. It produces quality silk at cheaper rates. Of the 23,000 tonne silk produced in India, the domestic market consumes 15,000 tonne and the remaining 8,000 tonne is exported," he said.
