An interest-free loan of upto ₹5 lakh for silk reelers announced by Chief Minister Siddaramaiah to provide them easier access to working capital is expected to strengthen the sericulture sector in the State.
While presenting the State Budget 2023-24 on Friday, Mr. Siddaramaiah said the interest-free loan upto ₹5 lakh to silk reelers will also enable them to actively participate in the purchase of cocoons.
Retired Deputy Director of Sericulture Department N.Y. Chigari told The Hindu that most of the silk reelers in the State belonged to economically-weaker sections of the society, who did not have sufficient purchasing capacity.
The interest-free loan announced by the State government in the Budget will not only improve their purchasing capacity, but also enhance their capacity to stock silk. “This will in turn ensure that the sericulture farmers will get a good price for their cocoons,” Mr. Chigari said.
However, he said the State government should have enhanced the limit of interest-free loans to reelers possessing an Automatic Reeling Machine (ARM) as they needed a larger working capital. The government should make the reelers possessing ARMs eligible for a higher amount of interest-free loan, he said.
While the margin of profit for silk reelers ranged from barely 6 to 8%, the investment they needed was disproportionately high. “They need to invest large amounts on a daily basis. Hence, financial support was the need of the hour,” he said. “Reelers played a very important role in the sericulture industry by converting ‘green to gold’. Manufacture of the fabric starts from the reelers”, he added.
Shidlaghatta cocoon market
Mr. Siddaramaiah has also announced that the cocoon market at Shidlaghatta will be upgraded as a hi-tech silk cocoon market at a cost of ₹75 crore to help silk farmers in Kolar, Chickballapur and surrounding areas.
Ramanagaram and Shidlaghatta markets are two of the largest silk cocoon markets in Asia. While a hi-tech market was already under construction at a cost of ₹75 crore in Ramanagaram, the cocoon market at Shidlaghatta will also be upgraded as a hi-tech silk cocoon market.
Mr. Siddaramaiah also said that infrastructure will be strengthened in Mysuru Seed Area. “This will facilitate production of good quality disease-free Mysuru seed cocoons, distribution of these cocoons to commercial silk growers and production of better quality hybrid raw silk,” the Chief Minister said while presenting the Budget on Friday.
