Analysis of profitability and employment generation potential of silk cocoon production: A case of Nainital District of Uttarakhand

Abstract

The study assesses the profitability and employment potential of silk cocoon production in Nainital, Uttarakhand, where sericulture supports small and marginal farmers. Based on data from 60 producers in 2022-23, it compares costs and returns with and without government support. Assistance reduces cocoon production costs by 38.8% per DFL, mainly by lowering fixed costs. Farmers without support face net losses (-?2,930), while supported farmers earn ?10,755. The returns-expenditure ratio rises from 0.92 to 1.49 with support. Each farm generates 56.27 man-days of employment, with silkworm rearing accounting for over 73%. Sustaining sericulture as a rural livelihood requires continued policy support, including subsidies, infrastructure, and training.