The Economics of Sericulture: Costs, Returns, and Impact on Rural Economy

Silk may be woven into fabric in a loom, but its economic story is woven into the lives of millions of rural families across India. Sericulture – the practice of rearing silkworms to produce silk – stands out among agricultural enterprises for a rare combination: low startup costs, rapid income cycles, and meaningful employment, especially for women and marginal farmers. Understanding the economics of sericulture means looking beyond just cocoon prices to see how this industry moves wealth, creates work, and supports rural communities from the ground up.

Why sericulture appeals to small and marginal farmers
Costs and returns: what the numbers show
Integrating mulberry with other crops
Employment generation and the role of women
Impact on the rural economy
Shifting income from urban consumers to rural producers
Foreign exchange through silk exports
Government support and policy framework
Sericulture versus conventional agriculture: the economic argument

Why sericulture appeals to small and marginal farmers

Sericulture is a farm-based, labour-intensive, and commercially attractive activity that falls under the cottage and small-scale sector. What sets it apart is the low barrier to entry. An initial investment of approximately Rs. 12,000 to 15,000 (excluding land and rearing space) is sufficient to start mulberry cultivation and silkworm rearing on one acre of irrigated land. Once established, a mulberry plantation continues to support silkworm rearing for 15 to 20 years depending on management, making the upfront cost spread over a very long productive life.

Unlike most annual crops that are harvested once or twice a year, sericulture can be practiced four to five times a year, and up to ten times in southern Indian states, generating frequent and regular income. This is a critical advantage for farmers who need cash flow through the year rather than a single seasonal payout. Mulberry trees start yielding usable leaves within six months of planting, meaning the time from investment to first income is short.

Costs and returns: what the numbers show

On a per-acre basis under tropical conditions, one acre of mulberry plantation can yield around 300 to 400 kg of cocoons annually, with cocoon prices averaging around Rs. 350 to 450 per kg. This puts gross annual earnings from cocoon sales alone at roughly Rs. 1,05,000 to Rs. 1,80,000 per acre. Farmers can supplement this with income from mulberry leaves, silkworm eggs, and silk waste, further improving overall returns.

Research by the Central Sericultural Research and Training Institute (CSRTI) is instructive here. Net returns in irrigated sericulture were estimated at Rs. 39,883 per acre per year by Dandin and Kumaresan (2003) – a figure that underscores the financial case for ensuring adequate water supply. Under rainfed conditions, returns are lower and more variable due to fluctuations in rainfall and leaf quality, but the enterprise can still be viable when family labour is factored in as an asset rather than a cost. A cross-section study across three southern states confirmed that gross and net returns were higher under assured irrigated conditions in Karnataka and Tamil Nadu compared to semi-irrigated conditions in Andhra Pradesh.

Comparing sericulture directly to conventional crops reinforces the case for it. Studies indicate that sericulture generates more income than traditional cash crops such as paddy, wheat, gram, mustard, and maize. Returns per rupee of investment across silk types – Mulberry (1.66), Tasar (1.60), Eri (1.88), and Muga (2.07) – are all higher than typical agricultural crop enterprises according to the National Silk Policy 2020.

Integrating mulberry with other crops

One practical concern for small farmers is whether dedicating land to mulberry means giving up income from food or vegetable crops. The answer, increasingly, is no. Mulberry’s annual growth cycle means it remains without foliage for much of the year, causing minimal shading for intercropped plants beneath it. This creates an opportunity to grow short-duration vegetables, pulses, and other crops simultaneously in the same field.

Research published in the European Journal of Agriculture and Food Sciences found that growing cauliflower as an intercrop with mulberry gave the highest benefit-cost ratio of 2.31, with other intercrops like cabbage, red amaranth, and spinach also showing strong returns. Pulses such as chickpea are especially valuable because, in addition to producing saleable grain, they improve soil nitrogen – directly benefiting the mulberry crop. Intercropping in mulberry can help generate work and revenue throughout the year while enabling efficient utilization of land and other resources.

This integrated approach is particularly important for marginal farmers who hold small plots and cannot afford to treat sericulture as a standalone monoculture. By combining mulberry with seasonal vegetables or legumes, farmers can achieve round-the-year cash flow while maintaining qualitative standards for both mulberry leaf and intercropped produce.

Employment generation and the role of women

Sericulture is not just profitable – it is also one of the most labour-absorbing sectors in Indian agriculture. Estimated employment in sericulture increased to 94.80 lakh persons in 2023-24, up from 78.50 lakh persons a decade earlier in 2013-14, according to India’s Ministry of Textiles. The industry spans sericulture activities across more than 54,000 villages, covering mulberry cultivation, silkworm rearing, cocoon marketing, silk reeling, and weaving.

A distinctive feature of this employment is the high participation of women. Approximately 58% of the workforce in sericulture is female, and their involvement spans every stage – from mulberry garden management to silk reeling. The work is largely conducted indoors, requires no heavy physical labour, can be timed around household responsibilities, and provides consistent earnings. This flexibility has made sericulture a genuine vehicle for women’s economic empowerment in rural India, particularly in states like Karnataka, West Bengal, and Assam.

Farm and non-farm activities in sericulture create employment for 60-70 lakh people every year, mostly in rural India, and 60% of this work is performed by women. The CSRTI success stories from Berhampore illustrate this vividly – women farmers who adopted improved mulberry varieties and rearing technologies have seen their annual income rise substantially, with some reaching Rs. 2,95,000 per year excluding input costs from just two acres of mulberry.

Impact on the rural economy

Shifting income from urban consumers to rural producers

One of the more striking economic features of sericulture is the direction of wealth it creates. While the wealthy are the primary consumers of silk products, the producers are typically marginal and small farmers. The industry effectively acts as a mechanism for income redistribution – from affluent urban buyers to rural agricultural households who may otherwise fall below the poverty line. Sericulture offers the scope of transferring wealth from high-income and urban customers to farmers and artisan classes, making it a structurally pro-rural industry.

This income redistribution also has a secondary effect: it reduces rural-to-urban migration by creating stable livelihoods in the countryside. In regions where sericulture is the primary occupation, it functions as a retention mechanism – keeping families, skills, and capital rooted in rural communities.

Foreign exchange through silk exports

At the national level, sericulture contributes significantly to India’s export earnings. In 2023-24, India produced 38,913 metric tonnes of raw silk and exported silk products worth Rs. 2,027.56 crore, consolidating its position as the world’s second-largest silk producer and the largest consumer. Export earnings have grown steadily – rising from Rs. 1,649 crore in 2017-18 to over Rs. 2,000 crore in 2023-24.

India exports silk products to more than 30 countries, including the UAE, USA, China, the UK, Italy, and France. The product mix covers raw silk, natural silk yarn, silk fabrics, readymade garments, silk carpets, and silk waste – each contributing to a diversified export base. This export performance directly benefits rural producers because demand from international markets supports cocoon prices at home.

Government support and policy framework

The economic potential of sericulture has not gone unnoticed at the policy level. India’s government has launched several targeted programmes to strengthen the industry. The Silk Samagra scheme, aimed at economically weaker sections, has already benefited over 78,000 individuals, covering research and development, market development, and seed organisation. The SAMARTH scheme – focused on skill development in textiles including silk – has been extended to 2025-26 with a budget of Rs. 495 crore. These initiatives help lower entry barriers, improve productivity, and connect farmers to markets.

Sericulture versus conventional agriculture: the economic argument

Putting the numbers side by side makes the economic argument for sericulture clear. Most crops can be grown only once or twice a year, but sericulture can be practiced four to five times a year, providing regular employment and checking population migration from rural areas. The short crop cycle – around 28 to 30 days from egg to cocoon – means that errors can be corrected quickly and cash flow is never far away. The mulberry plant, once established, requires no replanting for 15 to 20 years, giving it a long productive life relative to its setup cost.

Sericulture is a profitable and labour-intensive industry with very low input requirements that generates employment and regular income for farmers. For a country where over 60% of the population depends on agriculture – and where landholdings are often less than one hectare – an enterprise that works at small scale, generates frequent income, employs women, and connects to international export markets has clear and compelling economic value.

The economics of sericulture, in summary, are not just about what a farmer earns per kilogram of cocoon. They are about the cumulative impact of an industry that activates underused land, creates employment in the leanest months, empowers women, retains income in rural areas, and earns foreign exchange at the national level. It is, in this sense, far more than a farming activity – it is a rural development strategy in action.

What do you think? Given that sericulture outperforms many traditional cash crops in terms of returns per acre and employment generation, what would it take for farmers in your region to adopt it at scale – and do you think intercropping models could make the transition easier for those with limited land?

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Table of Contents

Why sericulture appeals to small and marginal farmers 🔗

Costs and returns: what the numbers show 🔗

Integrating mulberry with other crops 🔗

Employment generation and the role of women 🔗

Impact on the rural economy 🔗

Shifting income from urban consumers to rural producers 🔗

Foreign exchange through silk exports 🔗

Government support and policy framework 🔗

Sericulture versus conventional agriculture: the economic argument 🔗