India: Uttranchal shows the way for cocoon marketing
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2007-06-26 15:17:00
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BANGALORE, JUN 24 : While traditional silk producing states like Tamil Nadu and Andhra Pradesh are struggling to market the cocoons produced in their region, Uttranchal has been emerging as a state with sound marketing facilities for cocoons produced locally.
The marketing initiatives taken by the Central Silk Board (CSB) in Uttranchal comes in the wake of the Centre’s policy to develop sericulture in North India during 11th five-year plan. Tamil Nadu produces around 750 tonne of raw silk, but the farmers in the state were forced to sell cocoons in the neighbouring state of Karantaka due to poor marketing facilities available locally. But the healthy marketing structure in Uttranchal has started attracting bidders from the neighbouring states like Uttar Pradesh, West Bengal and Madhya Pradesh, the CSB sources said. Currently Uttranchal produces around 115 tonne of bivoltine cocoons, of this 65% of cocoons are produced during spring and 35% in autumn.
The state’s main cocoon market is situated at Selakuli near Dehradun, where competitive price for the produce is provided to the farmers through open auction system. The bidders have to pay minimum of 40% of the cocoon cost while up to 60% of the total cost has been given as loan to the bidders from Uttranchal Resham Co-operative Federation (URCF). The loan would be recovered gradually from the returns of the bidders.
The bidder should register before participating in auction by depositing a meager Rs 10,000, which is also refundable. Cocoons are delivered to the buyers against a legal undertaking to remit the amount with an interest of 5% for a period of 90 days. Marketing of cocoon is facilitated by a revolving fund of Rs 2 crore created by the CSB and the Uttranchal government. The URCF oversees the transaction to ensure that farmers are not exploited because of either low raw silk price or due to over production.
In case of huge price fall, URCF purchases the cocoons, protecting the interest of the sericulturists. With these sound marketing system, average price of cocoon at various markets in Uttranchal ruled at Rs 107-146 per kg during spring season in 2006, which is rated as appreciable price range for cocoon in India. CSR variety hybrid cocoons fetch Rs 20 per kg more than traditional hybrid cocoons in the state.
With systems of marketing successful in Uttranchal, the CSB officials said the other states too can follow the same system to ensure better prices for local farmers.
Source:Industry Website