2024, Vol. 7, Special Issue 9

author(s)
Kalyani J Jagtap, Dr. NT Bagde and Achal M Karmore

abstract
The research project titled "Business Analysis of Silkworm Production: A Case Study of Gayatri Kitak Sangopan Kendra, Terkheda" focuses on understanding the economic and operational dynamics of a silkworm rearing unit in Dharashiv district. The study evaluates the capital investment, cost structures, returns, and marketing strategies involved in silkworm production, particularly during the early stages of chawki rearing. The analysis of the silkworm rearing project revealed that the total capital investment was Rs. 15.09 lakhs, with major expenses directed toward building and land, comprising 46.39% and 33.13%, respectively. The fixed cost averaged Rs. 9.08 lakhs annually, with building depreciation (58.59%) and permanent labor charges (22.47%) being significant contributors. Variable costs were dominant, amounting to Rs. 54.11 lakhs, with raw materials (77.45%) and casual labor (19.96%) forming the majority. Marketing costs were minimal at Rs. 0.28 lakhs, primarily driven by transportation and packaging expenses. Overall, the total cost incurred by the producer was Rs. 63.19 lakhs, with variable costs accounting for 54.11%. The gross returns were Rs. 80.10 lakhs, yielding a net return of Rs. 16.91 lakhs, while the market margin stood at Rs. 16.63 lakhs, with no price spread due to direct sales to farmers. The break-even point was 92641 dfls in physical terms and Rs. 27.79 lakhs in monetary terms. The major challenges faced in production were securing initial capital, lack of skilled labor, and climate control, while marketing difficulties included damage during transport and inadequate storage facilities.