Reel of Fortune. Building Inclusive Value Chains. The Case of Tasar Silk in Bihar and Jharkhand

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1 Reel of Fortune Building Inclusive Value Chains The Case of Tasar Silk in Bihar and Jharkhand

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3 Reel of Fortune Building Inclusive Value Chains: The Case of Tasar Silk in Bihar and Jharkhand Author Astad Pastakia Co-Author Md. Shamshad Alam, PRADAN Dr. K. Sathyanarayana, Scientist-D, CSB Mr. Khitish Pandya, Eco-tasar Pvt. Ltd. Mr. Binod Raj Dahal, PRADAN Mr. Rajendra Khandai, PRADAN for PRADAN, New Delhi and Central Silk Board, Bangalore

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5 ACKNOWLEDGMENTS The challenges of documenting a pro-poor value chain are perhaps not as daunting as actually creating one. Nevertheless, it worth noting that what was estimated to be a threemonth process actually took almost a year as multiple stakeholders at multiple locations and levels started unfolding in front of me as the study progressed. Each stakeholder group had its own unique story to share and all these stories together contributed to a larger story of immense social significance. Successful examples of the development of pro-poor value chains in the history of modern India are few and far between. Successful P3 (public-private-people s) Partnerships are even rarer. I am therefore indebted to PRADAN and Central Silk Board (CSB) for having given me the opportunity and privilege to examine from close quarters the processes and outcomes of this unique intervention, spread over a period of almost two decades. In particular I would like to thank Mr Manas Satpathy, Executive Director PRADAN; Mr Satyabrata Acharyya, Program Director PRADAN Jharkhand; and Md Shamshad Alam, Integrator (Tasar Theme) PRADAN, along with their entire team, who worked closely to support this documentation initiative. I would like to thank Mr Khitish Pandya, CEO, EcoTasar Pvt. Ltd, and his team for sharing valuable data and insights regarding the marketing of finished products and Mr. Seshnath Bharti, Production Manager and head of the production unit at Bhagalpur, for showing us the operations of the unit and arranging meetings with a number of other players in the supply chain. At CSB, I would like to thank Ms Ishita Roy, IAS, Member Secretary of the Board, and Dr. Sathyanarayana Kutala, Scientist-D and Coordinator, MKSP Projects for their enthusiastic cooperation and for putting me in touch with a number of partner institutions within the CSB family. A special word of thanks is due to Dr Alok Sahay, Director Central Tasar Silk Research and Training Institute, Ranchi, and his team of senior scientists, including Dr Ajit Kumar Sinha, Dr NS Ghelot and Dr ZMS Khan for sharing their research work and thoughts on further development in the sector. I thank Dr Sourabh Mazumdar, Scientist-C, DCTSC, CSB, Bhagalpur, for his time and insights and Dr AK Singh, Scientist-C, BSM&TC, Bhagalpur, and his team for showing me the work of his center. I would like to thank in particular Mr Shamshad Alam of PRADAN and Dr. Sathyanarayana Kutala of CSB for having accompanied me in the field whenever possible and for going through the draft report several times to give detailed feedback and suggestions for improvement. Last but not the least I thank all those producers at the grassroots-level, not only for the information that they provided freely, but also for their characteristic warmth and hospitality during the field visits. I thank Mr TM Durairajan for his help in typing the field notes and the report. Astad Pastakia February 2015

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7 TABLE OF CONTENTS Executive Summary 1.0 Introduction 1.1 Importance of Tasar in the Tribal Economy 1.2 The Tasar Value Chain Traditional Sericulture The Birth of a Modern Value Chain Special SGSY Projects NABARD-TDF Projects After the SGSY: MKSP 1.3 Objectives and Methodology 1.4 Organization of the Report 2.0 Tasar as a Traditional Livelihood 2.1 Pre-cocoon Livelihoods 2.2 Post-cocoon Livelihoods 3.0 Modern Tasar Value Chain 3.1 Overview of Achievements 3.2 Seed Value Chain BTSSO Elite Seed Production Commercial Seed Production 3.3 Cocoon Production Commercial Rearing in the Forest Commercial Rearing in Block Plantations 3.4 Cocoon Storage and Marketing Masuta Producers Company New Breed of Private Traders 3.5 Yarn Production Reeling Spinning 3.6 Yarn Marketing Phase I: Tasar Development Center ( ) Phase 2: Masuta Producers company ( ) Phase 3: Masuta Producers company ( ) 3.7 Finished Products Production and Marketing

8 3.7.1 Key Accomplishments Building a Professional Organization Innovation and New Product Development Marketing Strategy 4.0 Institutional Arrangements and Partnerships 4.1 P3 Partnership in the Value Chain 4.2 Ideological Consensus 4.3 Domain Consensus 4.4 Administrative Consensus 4.5 Mutual Acceptance 5.0 Value Chain Analysis 5.1 Value Chain Mapping 5.2 Livelihoods Supported by EcoTasar 5.3 Price Spread Analysis 5.4 Margin Analysis 5.5 Distribution of Power in the Value Chain 6.0 Impact Analysis 6.1 Impact on the Sector 6.2 Impact at the Grassroots Economic Impacts Social Impacts Impact on the Environment 7.0 Major Challenges 7.1 Technology Related Issues 7.2 Market Related Issues 7.3 Policy Issues 8.0 Conclusions and Way Forward 8.1 Tasar Silk Interventions over Time 8.2 Meeting the Challenges Ahead Annexure 1: List of Documents Reviewed Annexure 2: List of Stakeholders Interviewed Annexure 3: Technologies at CTR&TI- Recently Developed and under Development Annexure 4: Circular Sent by Member Secretary, CSB to State Forest Departments Annexure 5: Profile of Reeling Machines Field Tested in

9 LIST OF FIGURES Figure 1.1: Trends in India s Export of Tasar Silk Products Figure 1.2: Traditional Rearing of Cocoons in Forests Figure 1.3: Modern Value Chain Developed Under UNDP Figure 1.4: The Tasar Seed Value Chain Figure 1.5: The Tasar Value Chain Figure 3.1: Social Profile of Participating Families Figure 3.2: Risk Return Matrix of Village NTFP Trader Figure 3.3: Growth of Income and PAT over the Past Six Years Figure 3.4: Market Segmentation for Finished Products Figure 4.1: Institutional Arrangements for Coordinating Implementation Figure 5.1: The Tasar Silk Value Chain Figure 5.2: Value Chain Changes that Increase Participation of Poor Figure 6.1: Utilization of Income in Families Figure 8.1: Trajectory of Silkworm Rearing by Tribals over Time

10 LIST OF TABLES Table 1.1: Table 3.1: Table 3.2: Table 3.3: Table 3.4: Table 3.5: Table 3.6: Table 3.7: Table 3.8: Pattern of Tasar Raw Silk Production in India (in Metric Tonnes) Summary of Coverage of Primary Producers Social and Human Capital Created During the Project Physical Achievements of the SGSY Projects Summary of Financial Achievements Jharkhand (Rs. Lakh) Summary of Financial Achievements Bihar (Rs. Lakh) Involvement of Cooperatives in Seed Production Highlights from the Profit & Loss and Balance Sheet Statements of Banka Cooperative Economics of Nucleus Seed Crop Rearing Table 3.9: Illustrative Economics of Basic Seed Rearing under Forest Conditions Assumptions Table 3.10: Illustrative Economics of Basic Seed Rearing under Forest Conditions Table 3.11: Production and Supply of Basic Seed by BSM & TCs Table 3.12: Economics of Commercial Grainage and Seed Production Table 3.13: Economics of Commercial Cocoon Rearing in the Forest Table 3.14: Economics of Cocoon Rearing in Salaiya Cluster Table 3.15: Year Round Livelihood Security in Badgunda Cluster under NABARD-TDF Project Table 3.16: Reelers and Spinners under the Special SGSY Project Table 3.17: Economics of Reeling at Bhusia Reeling Center Table 3.18: Economics of Spinning at Kordaha Table 3.19: Types of Yarn Produced by Masuta Table 3.20: Yarn Consumption in Important Weaving Clusters Table 3.21: Estimated Market Share of Different type of Yarns Table 3.22: Existing Yarn Combinations for Different Categories of Products Table 3.23: Recommended Positioning of Masuta Yarns in the Market

11 LIST OF TABLES Table 3.24: Drop in Supply of Tasar Yarn by Masuta over the Past Five Years to Eco-tasar 58 Table 4.1: Table 5.1: Table 5.2: Table 5.3: Table 5.4: Table 5.5: Table 5.6: Table 5.7: Role of Different Institutions Participating in the tasar Value Chain Material Balance Estimate of Livelihoods Supported by 100 meters Tasar Fabric Primary Producers Participating in the Value Chain Estimate of Self-Employment Generated through intervention in post cocoon (person-day) Sales Value of Stable Product Categories Costing and Pricing Data of Saree 4D Material Balance Calculations from Seed to Fabric Table 5.8: Price Spread Analysis for Saree (Design 4D) Table 5.9: Costing and Pricing Data of Stole PR 02 Table 5.10: Price Spread Analysis of Stole (Design PR 02) Table 5.11: Net Income Earned by Producers in the Value Chain Table 6.1: Income of Different Primary Producers in the Value Chain ( ) Table 6.2: Income of Different Primary Producers in the Value Chain (2013) Table 6.3: Table 6.4: Table 7.1: Table 7.2: Socio-economic Impact on Participating Cocoon Producers Potential Environmental Impact Status of Technologies in the Pipeline at CTR & TI Summary of Technological Challenges Table 7.3: Results of Field Trials Productivity Parameters (2012) 101 Table 7.4: Economic Performance of the Machines under Trial 102 Table 7.5: Reeling Machines under Trial (January 2015) 103 Table 7.6: Prices of Cocoons and Yarn 104

12 LIST OF ABBREVIATIONS ASR : Adopted Seed Rearers P3 : Public-Private-Peoples Partnership CSB : Central Silk Board BTSSO : Basic Tasar Silkworm Seed Organisation BSM & TC : Basic Seed Multiplication and Training Centers BSPU : Basic Seed Production Unit CTSSS : Central Tasar Silkworm Seed Station MoRD : Ministry of Rural Development MoT : Ministry of Textiles MoEF : Ministry of Environment and Forests SGSY : Swarnajayanti Gram Swarozgar Yojana MKSP : Mahila Kisan Shashaktikaran Pariyojana CAPART : Council for Advancement of People s Action and Rural Technology ICCO : Innovative Change Collaborative (new name) DRDA : District Rural Development Agency CERs : Certified Emission Reductions CDME : Clean Development Mechanism Executive (Board) CFC : Common Facility Center DoS : Department of Sericulture DFLs : Disease Free Layings

13 EXECUTIVE SUMMARY The present study was commissioned by PRADAN and CSB with the dual objective of highlighting the key achievements of the special SGSY project and flagging the key challenges to be addressed in scaling up the intervention under MKSP. INTRODUCTION The year 2003 was a turning point for the tasar silk sector in India. It marked the launch of a special Swarnajayanti Gram Swarozgar Yojana (SGSY) project supported by the Government of India, the Ministry of Rural Development, Central Silk Board and the Ministry of Textiles, to promote an inclusive and modern value chain, using new technology and involving the poor every step of the value chain. The key features of this special SGSY project are: y It was implemented from in Jharkhand and in Bihar by various stakeholders bureaucrats, scientists, grassroots workers, local leaders and social entrepreneurs. y The idea was to create a public-privatepeople s (P3) partnership to enhance the livelihoods of tribal and non-tribal families engaged in tasar silk production. y The combined production of raw silk in Jharkhand and Bihar increased significantly from 80MT till 2003 to 150 MT by 2007, helping over 6,500 families enhance their average income by between Rs 12,000 and Rs 15,000 per annum through one cycle of rearing. The overall success of the SGSY was followed by the launch of a multi-state project covering the tribal population in eight states under the Mahila Kisan Shashakitkaran Pariyojana (MKSP) in October The study has also looked at the efforts made on a pilot scale under the NABARD-TDF project, to generate year-round self-employment for the tribal family and thereby eliminate or minimize distress migration. Under this project an additional 4,500 families have been supported to raise plantations. Once the gestation period for these plantations is completed, these families too will start producing cocoons, taking the total number of participating families to 11,000. The study has attempted to assess the impact of the program on both the sector and at the grassroots, by documenting the process and analyzing the value chain. It has studied the impact on primary producers by interviewing them as well as by reviewing the data on best producers collated by PRADAN. The Case of Tasar Silk in Bihar and Jharkhand 11

14 IMPACT ON THE SECTOR Tasar was earlier considered a wild variety of natural silk as it was raised by forest dwellers in the open forests. However, realizing its potential to strengthen the livelihoods of the poor in tribal districts, both state and central government agencies have been actively promoting it. y Each state has a dedicated department for tasar silk production to help introduce modern technology and link producers with marketing institutions. y Agencies such as PRADAN and CSB have, over the past two decades,helped bring out the potential of tasar for the domestic and export markets. y The share of tasar in overall production of silk has increased to about 10% in , compared to less than 6.95% during the 11th Five Year Plan ( ) 1. IMPACT ON PRODUCTION The PRADAN-CSB partnership created a modern value chain consisting of seed producers, cocoon producers, yarn producers, the Masuta Producers company (responsible for procuring cocoons during the short season of 15 days and storing them for supply to reelers and spinners throughout the year) and EcoTasar Pvt. Ltd, (a professional marketing company headed by a social entrepreneur that produces and markets finished products to the end user). y PRADAN and CSB created a value chain for seed production alone. This has stabilized production by making Disease Free Layings (DFLs) available in the quantity and quality required for scaling up. y PRADAN pioneered the idea of training tribal youth to become grainage entrepreneurs, an innovation that was adopted by CSB as well as the department of state. y PRADAN helped establish people s institutions at every node of the value chain, and helped build their capacity both to learn about new technology as well as govern their institutions. y CSB facilitated the creation of new public institutions for supply of elite and basic seed material of reliable quality. y CSB worked on developing and extending new technology for silkworm rearing. y CSB also helped in building more efficient machines for the post-cocoon stages of value addition. IMPACT AT THE GRASSROOTS LEVEL The project has made immense strides at the grassroots level, providing livelihoods to thousands. 1 CSB (31 st December, 2014), Note on the Performance of Indian Silk Industry and Functioning of Central Silk Board, accessed 20 th Feb at gov.in/assets/uploads/pdf-files/note-on-sericulture.pdf 12 Reel of Fortune Building Inclusive Value Chains

15 y It created supplementary livelihood options for over 9,590 families across the value chain, thereby guaranteeing employment during the lean season and reducing migration and making cash available for urgent production and consumption needs. Of them, 6,500 families were engaged in cocoon production, and 3,090 families in downstream value chain activities such as yarn and fabric making. y The additional net income was estimated to range from Rs 9,000/cycle in the case of silkworm rearing in forest conditions to about Rs 50,000/cycle in the case of seed rearing in plantations. y Reelers and spinners, who were mostly women belonging to the Other Backward Classes, could work during their spare time from the comfort and safety of their homes (for spinners) and from common facility centers (for reelers), earning between Rs 10,000 and Rs 25,000 per annum. y Weavers stood to gain indirectly through access to new designs and raw materials provided by EcoTasar, at a time when many weavers in Bhagalpur were facing recession and resorting to distress migration. IMPACT AT THE SOCIAL LEVEL Apart from the economic emancipation taking place at the grassroots level, the project has also had significant social impact. This includes the empowerment of poor people and women among them, in particular, better living conditions, improved food and nutritional security, reduced vulnerability, reduced or no migration, and improved self-confidence and social status. Cases of people leveraging the cash income from sericulture to release land under mortgage and thereby achieving food security are heartwarming, and these are not isolated cases. The taboo in tribal communities around women being engaged in tasar rearing has gone. The introduction of private plantations saw a rise in the participation of women, not only in raising plantations but also in silkworm rearing. Women play a supportive role in grainages that are mainly run by young men. However, in the future, it is anticipated that women could learn to manage and own this node of the value chain as well. Post-cocoon processing is done mostly by women from non-tribal and Other Backward Classes, as tribal women do not take to sedentary work. Most of the women belong to families who have little or no land. Hence they engage in tasar rearing as an alternative source of income. The strategy of the current MKSP project is to implement it through women. The creation of various people s institutions at the village, cluster and district levels have resulted in the empowerment of women and given them a new vision for self-employment and collective enterprise. The Case of Tasar Silk in Bihar and Jharkhand 13

16 ECOLOGICAL IMPACT The study has made a preliminary list of potential ecological impacts, but this needs to be further studied for concrete recommendations on how the positive results can be retained and the negative, minimized or completely eliminated. The ecological impact varies across the value chain. Some activities such as plantation-raising of host plants are highly eco-friendly because of the carbon sequestration that is expected to take place, but others such as the stifling of pupae before storing cocoons are less so. UPCOMING CHALLENGES The margins of reelers and spinners have been severely depleted in the past two or three years, resulting in earnings per day that are lower than half of the minimum wages under the government s employment generation scheme. This is due to the movement of prices in the market; for example, the price of cocoons not corresponding to the price of yarn. In addition, the Masuta Producers company, their main marketing vehicle,failed due to poor capital management and high interest debts. PRADAN and CSB have taken the following steps to tackle these challenges: y Establishment of cocoon banks that have taken over the function of procuring cocoons and storing them in a decentralized way. y Stepping up the development and trials of new and more efficient reeling and spinning machines that would once again make this activity profitable for reelers and spinners. These and other emerging issues such as the productivity of cocoon producers in the forest, access to forests for sericulture, prevention and control of Pebrine disease, etc., are discussed in the report. CONCLUSION The report traces the evolution of the tasar silk livelihood on a risk-returns matrix from the early Nineties when it was practiced as a traditional livelihood by forest dwellers in the forests, right down to present times when new technology and institutions have been introduced to create a modern value chain with active participation of poor people. The project has not only helped to revive the tasar livelihood which, at one time, was almost abandoned by tribal communities on account of recurrent disease, but it has also raised it to a level where it can generate moderate levels of income for the family with a reasonable degree of reliability. In the post-sgsy scenario, the project is being scaled up through the MKSP in the tribal belt of eight states. Even if the position on the risk-returns matrix is maintained at the present level, the project is bound to have a major impact on poverty. Since these communities are geographically located in areas high on insurgency, a program that helps bring them back to the mainstream economy would have long-term social benefits that cannot be valued in monetary terms alone. This project s success will go a long way in helping overcome the reluctance to work in such neglected areas and encourage more collaboration between non-government and government agencies. The recent NABARD-TDF pilot project has shown that using the space between rows of host trees to grow vegetables, during the gestation period and beyond, can improve the economic viability of the tasar-raising family. By engaging in various livelihood activities around agriculture, horticulture and non-timber forest produce, the tribal family can find year-round employment within the village, thereby eliminating the need for distress migration. This approach too needs to be scaled up in the coming years along with tasar rearing. However, the facilitating partners, with their vast experience of more than two decades, are well placed to meet these challenges in the coming years. 14 Reel of Fortune Building Inclusive Value Chains

17 1 INTRODUCTION Silk has been recognized as a superior textile from time immemorial. The luxurious look, sleek feel and luster of the silk fiber are inimitable. Sericulture or production of silk involves rearing silkworms to produce cocoons, and processing of cocoons to make yarn, and subsequently, fabric. The global production of raw silk in 2013 was 159,776 MT, in which China dominated with a share of 81.36%, followed by India with 16.61% (International Sericultural Commission, ). Other countries such as Uzbekistan, Thailand and Brazil all had shares of less than one percent. India produces four types of silk: Muga, the most expensive, fetching Rs 12,000 per kg; Eri, priced at about Rs 4,000 per kg (mill-spun) because of its thermal properties; Tasar, fetching between Rs 3,000 and 3,500 per kg; and Mulberry, fetching Rs 2,500 per kg. Mulberry has the highest productivity as the technology is standardized and farmers are able to grow the crop throughout the year. In comparison, cocoon rearing on tasar host trees is a seasonal activity lasting only about three months in a year. Derived from the insect Anthereae mylitta D., tropical tasar silk is largely cultivated by tribals in the forest on natural host trees such as asan (Terminalia tomentosa) and arjuna (T. arjuna). The poorest among the poor depend on tasar as a supplementary source of income. Tasar silk is rough in feel as it has higher dernier (thickness of yarn) but has a unique golden luster when compared to mulberry. There are 7-8 tasar yarns used in blends to produce a wide range of fabric with a varied look and feel. This fabric is in high demand in apparel and home furnishing, both in the domestic and export markets. These special features of tasar provide a unique opportunity to create an inclusive value chain for poor communities with far reaching impact on their livelihoods. Many of these communities live in districts troubled by Maoist insurgency. Since the late Nineties, PRADAN, with technical support from CSB, has pioneered the setting up of a modern value chain that removes, to a large extent, the risks associated with rearing cocoons in the open forest. This report documents the efforts of the partner institutions in creating social and human capital in the form of people s institutions that can absorb new technology and implement the project on scale. It documents the efforts of social entrepreneurs within PRADAN to empower the people by building their capacity and within EcoTasar Pvt. Ltd to market the end products in ways that support the livelihoods of the people participating in the value chain. 2 Website of the International Sericultural Commission, accessed at on 22 February 2015 The Case of Tasar Silk in Bihar and Jharkhand 15

18 1.1 IMPORTANCE OF TASAR IN THE TRIBAL ECONOMY Natural silks are broadly classified as (i) mulberry and (ii) vanya or wild silks. Tropical tasar comes under the category of wild silks as it is mainly carried out outdoors, in the tropical deciduous forests of Jharkhand, Bihar, West Bengal, Odisha, Chhattisgarh, Madhya Pradesh, Andhra Pradesh and Maharashtra. Jharkhand has emerged as a leading producer in recent years, having produced 1,088 MT of raw silk i.e. 63.1% of the production in followed by Chhattisgarh at 385 MT with a share of 22.3%. The overall demand for tasar silk far exceeds its supply from within India. India therefore imports nearly 1,200 to 1,500 tons of tasar silk from China to meet its demand. 3 The total value of tasar fabric trade in India is estimated at Rs. 560 crore, of which nearly 60% is for the domestic market and the remaining for export (CSB, 2009). In the total value of all types of silk goods exported from India stood at Rs 2, crore, down from Rs 3, crore in The major export was in silk fabric and readymade apparel. Unlike the trend in silk fabric which experienced a drop, the trend in readymade apparel has remained steady (Figure 1.1). Table 1.1: Pattern of Tasar Raw Silk Production in India (in Metric Tonnes) State Andhra Pradesh Bihar Chhattisgarh Jharkhand Madhya Pradesh Maharashtra Odisha Uttar Pradesh West Bengal Total Source: Central Silk Board, Bangalore Figure 1.1: Trends in India s Export of Tasar Silk Products Source: FTSI & MSFTI, DGCIS, Kolkata 3 In conversation with Mr Khitish Pandya, CEO, EcoTasar Pvt. Ltd 4 FTSI & MSFTI, DGCIS, Kolkata, in CSB (2014). Note on the Performance of Indian Silk Industry and Functioning of Central Silk Board, Bangalore: CSB. 16 Reel of Fortune Building Inclusive Value Chains

19 As mentioned earlier, tasar is an important source of traditional livelihoods for poor and tribal communities living in forests and fringe areas. According to an estimate by Suresh Rai (2007) 5 of CSB, about 1,45,000 tribal families were involved in tasar rearing as a supplementary source of livelihood, especially when they had no other source of income. In addition, about 1,20,000 poor families were engaged in reeling, spinning and weaving. On an average, rearers spend days in case of bi-voltine (when two crops are possible) and days in case of tri-voltine (when three crops per season are possible) sericulture, rearing silkworms in two-three hectares of forestland. The entire family of the rearer is intensely engaged for the entire period. In the Nineties, a rearer could earn up to Rs 6,000, including the cost of his labour, in a good cropping season using traditional methods of rearing. The money from the sale of tasar cocoons would be spent on the basic consumption needs of the household. This income is significantly increased by adopting scientific methods of rearing and even more by raising plantations of the host plant on private land. Rearers of the nucleus seed stand to earn up to Rs 50,000 in a short season of two and a half months, much more than other seed rearers and those cultivating the regular cocoon. Weaving, including yarn production, is the primary source of livelihood for traditional handloom weavers belonging to Muslim or Scheduled Caste families. With weavers, the entire household is engaged in different activities of weaving. 1.2 THE TASAR VALUE CHAIN The evolution of the modern value chain from the traditional methods of tasar rearing, developed by PRADAN in partnership with CSB and with financial support from government and non-government agencies, took place over the past decade and a half through four different projects: i) Under the UNDP project between 2000 and 2003; ii) Under the Special SGSY projects in Jharkhand between 2003 and 2008 and in Bihar between 2003 and 2012; iii) Under the Nabard-TDF project since 2008 in Bihar and since 2010 in Jharkhand; and iv) Under the MKSP project since October The collaboration with CSB started from the UNDP project in 2000, prior to which PRADAN had mobilized funds from various government and non-government agencies such as the District Rural Development Agency (DRDA), Bihar Plateau Development Board (BPDP), CAPART, ICCO, etc., to establish the value chain by including prototypes of seed production, plantation on private land, community institution, etc TRADITIONAL SERICULTURE The traditional method of cocoon rearing involved a seed multiplication cycle (July to September) followed by a commercial cycle (September to December-January) (Figure 1.2). The method was tedious, especially during the seed cycle in the forest when adult moths emerged after midnight. While risk was low, requiring only labor on the part of the family, so was productivity, as larvae were easy targets for predators in the forest. Host trees were also not contiguous, making the activity tedious. Recurrent crop failures in the Nineties due to infestation of Pebrine and other diseases forced tribal communities to seek alternative sources of livelihoods. To resolve this, CSB developed a package of practices for rearing larvae on plantations of the host trees. PRADAN actively promoted private plantations of host trees on marginal or wastelands. Plantations also came up on forest or revenue lands under the Inter-state Tasar Project of the central government. By 1988, about 6,000 acres of plantations had been raised across six states under this project. 5 Suresh Rai (2007) PPT Economics of Tasar Silk accessed at industries.buh.nic.in/ppts/ps pdf on 25 th Feb 2015 The Case of Tasar Silk in Bihar and Jharkhand 17

20 Figure 1.2: Traditional Rearing of Cocoons in Forests Figure 1.3: Modern Value Chain Developed under UNDP THE BIRTH OF A MODERN VALUE CHAIN In 2000, PRADAN promoted a modern value chain with financial support from UNDP India and technical and financial support from CSB. Highlights i) Private grainages to produce Disease Free Layings (DFLs) were set up, run by enterprising tribal youth trained on technical skills such as inspection of moth specimens to detect Pebrine disease. PRADAN is considered a pioneer in promoting tribal youth as grainage entrepreneurs, a concept that is well accepted and institutionalized by CSB and the Departments of Sericulture (DoS) of various states. ii) A package of practices (PoP) was adopted by seed and commercial cocoon rearers. Silkworm larvae were reared under nylon nets called chawkie gardens to protect them from natural predators. Under the UNDP project, the entire seed rearing was carried out on plantations; this helped improve productivity and returns while reducing risk and stabilizing production. iii) New machines for reeling and spinning, developed by CSB, were introduced. For reeling, a common facility center (CFC) was set up for a cluster of villages, where women could work in a group. 6 The CFC was managed by a mutual benefit trust (MBT) of the women and common tasks such as procurement and treatment of cocoons, sale of yarn, etc. were performed by a hired manager. For spinning, purchase of cocoons and sale of yarn was facilitated by their MBT. However, the cocoons were purchased by Tasar Development Center, a marketing organization that was being incubated within PRADAN at the time and that was later hived off as a producer company called Masuta. 6 The CFC model was first initiated with funding from ICCO and standardized towards the end of the UNDP project 18 Reel of Fortune Building Inclusive Value Chains

21 1.2.3 SPECIAL SGSY PROJECTS In August 2002, Shri P Joy Oommen, IAS, Member Secretary, CSB, visited the project area and met the communities benefiting from the project in Godda, Dumka districts of Jharkhand and the Banka district of Bihar. In discussions with PRADAN, both agreed upon the need to consolidate and replicate the project on a larger scale in Jharkhand and Bihar. CSB constituted a team under Sri JV Krishna Rao, Joint Director, CSB, and the UNDP Sub-program Coordinator to visit tasar growing areas in the two states and to develop two special SGSY Projects after detailed discussions with PRADAN and the Basic Tasar Silkworm Seed Organization (BTSSO), Bilaspur. It was felt that the seed sector needed special attention to ensure the supply of quality commercial seed in the project area. The project would aim to meet 66% of the total requirement of commercial seed by putting in place a threetier system of seed multiplication, with the help of trained seed rearers and Adopted Seed Rearers (ASRs). In addition, there would be intensive technology transfer and upgrading of skills in the pre-cocoon and post-cocoon stages of the sector. In addition, the project would look at forming cooperatives, establishing effective backward and forward linkages among different activity groups and assuring market facilities in the project area. Taking note of the positive results of the UNDP project in Jharkhand, the Ministry of Rural Development (MoRD) Govt. of India decided to sanction two special SGSY projects in Jharkhand and Bihar to be executed by CSB and implemented by PRADAN. The project in Jharkhand was initiated in 2003 and completed in 2008, while the Bihar project was implemented from 2003 to The projects received 75% funding from the MoRD and 25% from CSB. PRADAN implemented the projects with technical and financial support from CSB, and after extensive consultation with farmers. Key Aspects of the Project y The group and cluster approach was adopted to have a visible impact. Existing self-help groups (SHGs) were leveraged where available and new ones were promoted wherever there were none. y Plantation of host trees on private lands was done in a big way. Tasar rearing was initiated on the private plantations raised earlier. Tasar Vikas Samitis (TVS) were promoted to share knowledge and facilitate rearing and seed production. y Each commercial rearer was helped to set up 0.1 ha of chawkie plantation in the their own land. y The supply of nucleus seed by CSB was started for the first time under SGSY to meet the significant growth in the demand for basic seed. Though the production of basic seed through the cooperative was not mandated in the project, PRADAN broached the idea of involving grainage entrepreneurs in basic seed production. Basic seed production was thus started by cooperatives of seed and grainage producers for the first time in This called for the creation of adequate social and human capital to establish seed production systems following stringent technical and hygiene norms. The Case of Tasar Silk in Bihar and Jharkhand 19

22 y Commercial seed was produced almost entirely by private grainage entrepreneurs. y It was decided to strengthen the CSB seed establishments in the project area to provide basic and nucleus seed in the required quantities. y In the post-cocoon stage of the value chain, the target was to convert at least 25% cocoons into reeled or spun yarn. The Masuta Producers company, with representative membership of women reelers and spinners, was established to facilitate the post-cocoon development of the value chain. Masuta procured cocoons from the TVSs during the season that lasted less than a month. It subsequently processed them, stored them in a scientific manner in godowns, supplied them to the reeling and spinning MBTs according to their requirement and aggregated and sold the yarn produced by the women in Bhagalpur. y Part of the yarn was also passed on to EcoTasar Pvt. Ltd, a new company promoted by Masuta in collaboration with Mr Khitish Pandya, a social entrepreneur identified by PRADAN. Mr Pandya had earlier established his credentials by helping sell yarn for TDC/Masuta. EcoTasar took upon itself the task of designing and producing fabric and finished products in line with market requirements. y Capacity building of the participating farmers and CBOs was an important component of the project. Under the special SGSY projects, significant progress was made in promoting an inclusive value chain for tasar silk. A key feature of this value chain was the backward integration into quality seed production that helped to stabilize production and scale it up at the same time. Tasar rearing with scientific methods was now promoted both in the private plantations as well as in the forest patches where host plants were available. In the post-cocoon phase, Masuta had emerged as a major institution to bridge the gap between the reelers and the market. EcoTasar had made considerable progress in developing new products with blended fabric to cater to the domestic as well as export markets in the fields of fashion apparel as well as home furnishings. In this way the special SGSY projects not only addressed production risks and improved productivity but also took care of market risks and realized the right prices for producers in the value chain. Seed Value Chain (Figure 1.4) Prior to the SGSY projects, CSB had established the BTSSO to develop elite seed material and supply it to stakeholders, including the Basic Seed Multiplication and Training Centers (BSM & TCs) operated by CSB in various states. During the SGSY projects, several Basic Seed Production Units (BSPUs), including three operated by cooperatives, were set up under the guidance of PRADAN and CSB. These two types of institutions became responsible for a major part of the seed value chain by engaging Adopted Seed Rearer (ASRs) to multiply the seed material. In the first cycle from July to August, the ASRs multiplied the nucleus seed on isolated plantations, following strict sanitation measures. In the second cycle from September to November-December, this was further multiplied to produce nucleus seed cocoons, which were then stored for over six months. In the following season, in July, when the adult moths emerged from the cocoons, basic seed was produced and supplied to commercial grainage entrepreneurs according to their requirements. These grainage entrepreneurs in turn produced commercial seed and supplied it to rearers under the supervision of the TVS in the village. 20 Reel of Fortune Building Inclusive Value Chains

23 Figure 1.4: The Tasar Seed Value Chain The Tasar Value Chain (Figure 1.5) The figure below depicts the value chain starting from the seed value chain up to the sale of finished products in the terminal markets. The commercial rearer raises silkworms on either private plantation of the host tree or in clumps of the host tree within natural forests. The entire activity is planned and coordinated by the TVS, which also serves as the focal point for all extension activities. The reeling cocoons produced by the end of the commercial cycle in November-December are aggregated and sold to Masuta Producers company. The procurement season for Masuta lasts for barely one month as this is a seasonal crop. The cocoons are brought to one of the company s three godowns to undergo stifling, following by two rounds of drying in the sun. The cocoons are sorted, graded, labeled and stored in a scientific manner in rodentproof godowns that are treated to prevent insect attacks. Masuta then offers cocoons to different reeling centers operated mostly by women from the Other Backward Classes, who place monthly orders for cocoons. The A grade cocoons are supplied to reeling centers while B, C and pierced cocoons are given to spinning centers. The yarn produced is sold in the open market in Bhagalpur, Bihar, which is a major center for traditional weavers. Part of the yarn is sold directly to EcoTasar to manufacture finished products through a process of outsourcing. Dyeing, weaving and finishing are outsourced by the company s production unit in Bhagalpur as per the yarn and design specifications provided by the marketing unit based in Delhi. The Delhi unit takes care of marketing the finished products in both the domestic and export markets. The Case of Tasar Silk in Bihar and Jharkhand 21

24 Figure 1.5: The Tasar Value Chain NABARD-TDF PROJECTS NABARD has established a Tribal Development Fund which comprises various schemes for tribal communities including the wadi program. This involves plantation of mango orchards along with other species of trees, including fuelwoods, on wasteland. Looking at the commendable work that PRADAN and CSB were doing in sericulture, NABARD showed active interest in supporting their program through the TDF. Based on its experience of promoting tribal livelihoods, NABARD suggested including horticulture and agriculture in order to generate year-round income and employment for the tribal family. The project aimed to enhance income by Rs 25,000 per annum per household in a sustainable manner, thereby eliminating abject poverty of tribal families. While tasar sericulture served as the main livelihood, it was to be supported by improved paddy production through the System of Rice Intensification (SRI), inter-cropping in plantations with vegetables and pulses, creating community assets for promoting livelihoods, cocoon banks with godown and dryer facilities and reeling/ spinning activities for women. The TDF projects were first implemented in two districts of Bihar and later sanctioned in two districts of Jharkhand. In Bihar, the first project was sanctioned in 2008 for six years for Banka district with an objective of raising 900 acres of tasar host plantation and establishing grainages for seed production. It also had a component for raising 600 acres of mango plantation. 22 Reel of Fortune Building Inclusive Value Chains

25 The second full-fledged project was sanctioned in 2009 for Jamui district of Bihar with all the components of sericulture except weaving, with financial and technical assistance from CSB. About 1,385 families were covered under the project against a target of 1,650 families. The sanctioned budget was Rs million but the actual money released and utilized was only Rs million. The project was halted midway as NABARD asked PRADAN to submit a revised proposal with certain modifications, which has now been done. In Jharkhand, two more projects were sanctioned for the districts of Godda and Dumka in 2010, to be completed by March CSB did not provide finance, but continued technical support. Rs million has been released against a sanctioned budget of Rs million. A total of Rs million has been utilized so far. The projects have already achieved their target of raising 3,300 acres of host plantations. In all, 2,215 families have been covered so far against the target of 2,635 families AFTER THE SGSY: MKSP The success of the SGSY project prompted the MORD to fund a larger project under MKSP across the tribal belt in Bihar, Jharkhand, West Bengal, Orissa, Chhattisgarh, Maharashtra, Andhra Pradesh and Telengana. The MKSP project was sanctioned on 12 th August, The first instalment was released in October The project is expected to be completed by October PRADAN implements the project in Bihar, Jharkhand, West Bengal, Odisha and Chhattisgarh, while Kovel Foundation is the partner in Andhra Pradesh and Telangana, and BAIF in Maharashtra. The project aimed to promote pre-cocoon sericulture on a large scale. Arjuna trees will be planted on 2,067 hectares, with a budget of Rs lakh. A study on carbon sequestration by the host tree plantations is to be conducted. The height of the tree fits into the requirement for carbon sequestration and adds leaf litter to the soil, which could lead to credits being claimed under the Clean Development Mechanism of the Ministry of Environment and Forests (MoEF). Another highlight is the establishment of cocoon banks by PRADAN to facilitate purchase of cocoons from the farmers at a reasonable price and to prevent traders from exploiting them. This move came in the wake of the major financial crisis faced by the Masuta Producers Company due to poor working capital management and excessive borrowing from commercial banks at high interest rates. The rise in the prices of cocoons without a corresponding rise in the price of yarn has posed new challenges for yarn-makers, forcing them to switch to other livelihoods. The existing machines for spinning and reeling do not meet the expectations of either the market or the producers. Other factors too have contributed to the sub-optimal results; these include the current cocoon-stifling technology and the method of cooking cocoons that affects yarn recovery and quality during the process of spinning and reeling. All this has weakened the post-cocoon node of the value chain and poses the biggest challenge in the period following the SGSY project. The situation is being handled by developing more efficient machines for processing yarn and creating new institutional mechanisms for procurement and marketing of yarn to replace the gap created by the exit of Masuta. These challenges and responses are discussed in Chapter 7 of this report. 1.3 OBJECTIVES AND METHODOLOGY The main focus of this study is to document and highlight successful features of the Special SGSY and NABARD-TDF Projects and draw implications for future efforts in scaling up through MKSP and other initiatives. The report would also help identify gaps in knowledge and implementation and make recommendations to bridge these. The Case of Tasar Silk in Bihar and Jharkhand 23

26 The study adopted the following methodology: 1. Review of past reports and documents, both published and unpublished (see Annexure 1 for a list of documents reviewed); 2. In-depth interviews with key functionaries in CSB, DOS and PRADAN, and other stakeholders (see Annexure 2 for a list of stakeholders interviewed); 3. Field visits to meet villagers who had successfully adopted the new technology as a source of livelihood and to document the process. Traditional rearers in control villages where villagers are yet to adopt modern technology were also interviewed. 4. Analysis of the value chain based on data drawn from across its various stages and nodes; 5. Best practices of individual producers through structured informal interviews carried out by PRADAN staff under a common format suggested by the author. This also helped assess the socio-economic impact of the project on the families involved; and 6. Debriefing with PRADAN and CSB. 1.4 ORGANIZATION OF THE REPORT The rest of the report is divided into five sections. Section 2 provides a brief account of the traditional methods of raising cocoons in the forest as explained by tribal rearers. This account is based largely on the visit to control villages. Section 3 documents the process and economics of livelihood activities under the special SGSY projects at each stage of the value chain. Section 4 briefly assesses the impact on the lives of people served by the project at the primary and secondary production levels. It also includes a preliminary assessment of ecological impacts. Section 5 discusses the challenges in scaling up the project under MKSP. The last section contains the conclusion and offers some pointers for the way forward. 24 Reel of Fortune Building Inclusive Value Chains

27 2 TASAR AS A TRADITIONAL LIVELIHOOD 2.1 PRE-COCOON LIVELIHOODS Information was collated from three villages to understand the traditional process of rearing cocoons and to capture variations, if any. Haldidih Ranglal Tudu, of Haldidih village in Masalia block of Dumka district, recalls how he and other villagers would rear cocoons in the Nineties. He would get cocoons from traders to start the first cycle of producing seed at home. The second cycle was carried out on a commercial level in the forest. They would make garlands out of cocoons and at midnight, when the moths started emerging, take them to the forest and hang them on trees. Most of the male moths would fly away, while the females attracted more male moths from the forest. They would have to stay up all night to protect the garlands from predators, with the aid of the oil of the Bhelwa (Anacardium Sp.) tree as a repellent. This would carry on for around 10 days till the coupling process was completed. The next step was to prepare Bhelwa leaf cups (khonjas), put three or four coupled moths in each to facilitate egg-laying and hang them on trees. After hatching, the larvae would spread to other branches of the host plant. Ranglal would have to protect them from predators such as wasps and bugs by making a sticky trap using a bamboo brush, kept inside the hollow of a bamboo. The sticky substance was made by boiling equal parts of the sap of banyan and pipal leaves in mahua (Madhuca indica) oil. 7 Kharna Jailal Murmu of Kharna village in Masalia block of Dumka district would collect larvae or cocoons from the forest, 5 km away,in June-July. It would take up to 15 days to select and collect quality cocoons. Jailal says that the best way to identify trees was to watch the ground for the litter created by the excreta of the feeding larvae! In Kharna, instead of garlands, the cocoons would be kept on twigs and placed on trees at midnight, where moths would emerge and coupling would take place over a week. The same process of placing moths in leaf cups (khonjas) would follow and once the eggs hatched, they would be taken to the forest. Each harvest would yield 3-5 kahans (one kahan comprises 1,280 cocoons). Jailal had a harvest of 5,120 cocoons, some of which he would retain for the coming year and sell the rest to traders from Asanbani village. But this laborious process was good only until the late Nineties. As forests were depleted, the incidence of disease increased. Soon they started buying eggs 7 Sarson (linseed) oil can also be used in place of mahua, but its stickiness lasts for only about 15 days whereas with mahua, it lasts for more than a month. Sometimes the gum of the sal tree (Shorea robusta) is also used to prepare the sticky mixture. The Case of Tasar Silk in Bihar and Jharkhand 25

28 from private traders; in 2010, Jharcraft came to the village and initially provided good quality eggs, but the quality subsequently went down. Jailal has not been rearing tasar for the past two years. Sundermor About 80% of the tribal population in this block comprises Santhals, while the rest are Paharias or hill-dwellers. Srijal Murmu and Suresh Tudu were two Santali farmers who reared tasar the traditional way on asan trees (a natural host and an associate species of the sal) in the forest,with seeds provided by PRADAN. They started the first cycle to raise seed material in July which would end in August. At the time of the author s visit, the larvae were full-grown and some had formed cocoons. This would be followed by a second cycle which would go on November or December in the normal course, and if the temperature was favorable, would take just 55 days. Murmu and Tudu used the method of rotational Feeding while releasing larvae on trees to help trees regenerate their leaves without difficulty. They had marked out a patch of asan forest, about the size of a football field, for cultivation. They had used 200 DFL (two packets) and were expecting a crop of 15,000 cocoons. At a going rate of Rs 1.55 per cocoon, they could expect a return of Rs 23,250. During the rearing period they had to stay in the forest from sunrise to sunset. Women were strictly prohibited from engaging in this activity. 8 Murmu s and Tudu s patch of forest was just 1 km from home, but in areas where the forests were depleted, rearers had to travel 5-8 km to reach their site. The rearers would use a long bamboo pole to place the wormladen twigs at a height on the asan trees, which are typically ft tall, so that the larvae could eat the leaves and move downward. Once the larvae reached the lowermost branches, they would be moved to another tree. The rearers had clippers to prune branches where needed. They would keep away predators such as harsunga (canthecona bug), birni (a type of wasp), kadi (a white/ grey bird smaller than a crow), red ants, squirrels, snakes and rodents, with a sling for the birds, a sticky trap for wasps and bugs, and a band of burnt vehicle oil for red ants. Main Features of Traditional Rearing Before the late Nineties, traditional tasar cocoon production with the sarihan silkworm was a livelihood option that held medium risk, but yielded low returns. Still, tribals were happy to engage in it since it integrated into their way of life in the forest, and used the traditional knowledge and skills that they possessed. It resulted in cash flow for household emergencies. The timing was also right as sericulture took place in the period after the kharif crop when the family had no other source of employment. The activity had religious significance, with prayers to Lord Shiva at the beginning and end. There were taboos that excluded women from the process. Towards the end of the Nineties, however, crop failures became rampant due to increased contamination and incidence of Pebrine and other diseases. This compelled many rearers to look for other livelihood options. 2.2 POST-COCOON LIVELIHOODS Bhagalpur in Bihar is a major center of traditional weavers of tasar, with close to 2,000 Muslim and Scheduled Caste families engaged in weaving using the pit looms. Yarn-making is done by women using arduous traditional methods that nonetheless kept wastage low, and made weaving a viable livelihood. In recent years, however, weavers have been facing shortage of indigenous tasar raw material, as a result of which, only 20% of the cloth produced by them is tasar. Weavers have resorted to blending tasar with other fibers, which also has a good market. Many weavers are reported to be migrating to Surat due to the recession. 9 8 However, with changing times and exposure to scientific methods, these superstitions are being broken. In Kathikund, a woman rearer has produced 24,000 cocoons in a year worth Rs 38,000! (Shamshad Alam, Integrator, Tasar Project, PRADAN) 9 Based on information provided by export house representatives in Bhagalpur 26 Reel of Fortune Building Inclusive Value Chains

29 3 THE MODERN TASAR VALUE CHAIN 3.1 OVERVIEW OF ACHIEVEMENTS The SGSY project was designed to benefit socially and economically marginalized communities (Figure 3.1). It covered 9,590 families (exceeding the 8,875 initially planned) from 310 villages in seven districts of Bihar and Jharkhand. While 80% of the people served belonged to the Scheduled Tribes and Scheduled Castes, 19% were categorized as Other Backward Classes. Only 1% of the people served fell under the General Category. The coverage of people in terms of different livelihood activities is summarized in Table 3.1 below. Although groups of traditional weavers are part of the value chain and are aligned with EcoTasar Pvt. Ltd, they are not included in this list as PRADAN s program does not directly work with them. These weavers continue to use traditional methods but with new designs and yarn provided by EcoTasar. CSB is also involved in efforts to improve the traditional pit-handloom by tapping other resources. Figure 3.1: Social Profile of Participating Families The Case of Tasar Silk in Bihar and Jharkhand 27

30 Table 3.1: Summary of Coverage of Primary Producers S. No Primary Producers Jharkhand (No.) Apr Mar 2008 Bihar (No.) Apr 2003 Mar 2013 Total under SGSY (No.) 1 Basic Seed Rearers Adopted Seed Rearers Grainage Entrepreneurs Commercial Rearers 4,656 1,960 6,616 4 Reelers Spinners Total 6,576 3,014 9,590 The social capital in terms of people s institutions facilitated under the project, and human capital developed in the form of grassroots entrepreneurs and resource persons, is summarized below: Table 3.2: Social and Human Capital Created During the Project Social Capital Number Average No. of Members per Institution Level Tasar Vikas Samitis Village Yarn production centers run by MBTs Village MASUTA Producers Company 1 1,650 Inter-state Cooperatives 3 1,000 to 1,500 District Human Capital Number Institution aligned with Level Private grainage entrepreneurs 259 TVS Village Skilled extension workers in villages 300 Cooperatives and Masuta Village Professional human resource created 32 Cooperatives and Masuta District and block 28 Reel of Fortune Building Inclusive Value Chains

31 The physical achievements at various nodes of the value chain, compared to the targets, are summarized below: Table 3.3: Physical Achievements of the SGSY Projects S. No Physical Achievements Jharkhand Bihar Total under SGSY Planned Actual Planned Actual Planned Actual 1 Nucleus DFLs produced (in Lakh) Nucleus Seed Cocoon produced (in Lakhs) Seed Cocoon produced (in Lakhs) Basic seed produced in TVS (in Lakhs) Commercial DFLs produced (in Lakhs) Commercial Cocoon harvested ,035 1,284 1,935 2, (Lakhs) S. No Physical Assets Created 1 Block plantations raised (Ha) ,439 1,432 2 Chawkie Garden developed (in Ha.) Private grainages established Common facility centers for reelers (numbers) 5 Cooperative buildings (numbers) Godowns under Masuta (numbers) Financial Achievements In Jharkhand, most areas had fully used the money or slightly exceeded the budget. The excess was met through bank interest earned on the money. In the case of Bihar, the overspend is negligible. Table 3.4: Summary of Financial Achievements Jharkhand (Rs Lakh) S. No Particulars Funds received Funds Utilized Balance 1 Raising of block plantation (0.01) 2 Inter-cultivation of castor Raising of chawki garden (0.00) 4 Assistance to Adopted Seed Rearers (0.43) 5 Assistance to Seed Rearers Assistance to Private Graineurs Assistance to Commercial Rearers Creation of infrastructure facilities (0.63) 9 Market Support (10.18) 10 Human resources development (3.99) 11 Publicity and extension Project administrative expenses (2.91) 13 Consultancy Grand Total (4.478) The Case of Tasar Silk in Bihar and Jharkhand 29

32 Table 3.5: Summary of Financial Achievements Bihar (Rs Lakh) S. No Particulars Funds received Funds Utilized Balance 1 Raising of block plantation (0.144) 2 Inter-cultivation of castor Raising of chawki garden Assistance to Adopted Seed Rearers (0.506) 5 Assistance to Seed Rearers Assistance to Private Graineurs Assistance to Commercial Rearers Assistance to individual spinners (1.312) 9 Creation of infrastructure facilities (0.049) 10 Assistance to basic seed production (0.211) 11 Market support Human resources development Publicity and extension (0.127) 14 Disease monitoring Technology trial ISO certification of basic grainage Project administrative expenses (0.108) 18 Consultancy (1.26) Grand Total (0.94) 3.2 SEED VALUE CHAIN Participating groups and organizations i) Field units of the Basic Tasar Silkworm Seed Organization (BTSSO), which produces the elite seed; ii) The Basic Seed Producing Units (BSPU) located in the seed-producing cooperatives that now produce both nucleus and basic seed in parallel to the CSB-promoted institution called Basic Seed Multiplication and Training Center (BSM&TC); both these institutions use the services of Adopted Seed Rearers (ASRs) for seed multiplication. iii) Commercial grainage entrepreneurs who work under and in collaboration with the Tasar Vikas Samiti (TVS) to produce commercial seed and supply them to the rearers within the TVS BTSSO By the end of the UNDP project, the entire requirement for commercial seed was planned and met by tribal youth. However, as the demand for commercial seed escalated, so did the demand for basic seed, which is required to produce commercial seed. The BTSSO was set up by CSB in to meet the growing demand for basic seed of high quality and to oversee the development of a threetier seed multiplication system on scientific lines. 30 Reel of Fortune Building Inclusive Value Chains

33 With its headquarters in Bilaspur, Chhattisgarh, BTSSO has 23 nested units, including a Central Tasar Silkworm Seed Station (CTSSS) and 22 BSM&TCs spread out through nine tasar-producing states. Functions y Ensure the production and supply of nucleus and basic seed by adopting quality parameters; y Train farmers and graineurs; and y Monitor disease and extend technical help to state governments and NGOs on tasar seed production ELITE SEED PRODUCTION (COOPERATIVE/ BSM&TC) Tasar Cooperative As the SGSY projects got under way, the demand for basic seed increased even more. The BTSSO, constrained by infrastructure and manpower, restricted itself to largely supplying nucleus seed while the DoS took up the supply of basic seed. The Basic Seed Producing Units (BSPUs) and cooperatives supplemented the work of both these institutions. In 2005, CSB trained tribal youth as moth testers to issue DFLs. The tribal youth would go to the BSM & TCs in different states to test the seed material and receive basic seed. However, travelling long distances to just verify the quality of material being procured was not cost-effective; moreover, the seeds would get affected while being transported, which lowered their hatching percentage. These factors drove up the cost of DFL production. This prompted PRADAN to consider promoting seed production by these trained tribal youth through their own cooperatives. Functions y Work with ASRs to multiply the elite seed received from BTSSO and convert it first into nucleus seed and then into basic seed; y Rear the nucleus seed in a captive and isolated plantation that follows stringent norms of hygiene; y Preserve cocoons in a grainage and produce basic seed according to the requirement of commercial seed producers; y Manage surplus and deficit of basic seed, nucleus seed and commercial seed; 10 y Organize training for seed rearers and commercial rearers; y Monitor seed multiplication to ensure seed cocoon for the grainage; y Monitor the work of grainage entrepreneurs to ensure the quality of DFLs produced; y Collect and compile data on the seed material being produced each year; and y Organize exposure visits (at a cost) for other people being served by the project in order to raise awareness. At the time this report was written, only the Vanvasi Cooperative in Banka, Bihar, produces both nucleus and basic seed. The surplus basic seed produced by this cooperative is supplied to Jharkhand cooperatives. 10 If some members have excess cocoons while others are falling short of the same, the cooperative facilitates an exchange. It also gives DFL outside; however, it generally does not sell the surplus cocoons The Case of Tasar Silk in Bihar and Jharkhand 31

34 Details of the total capacity and past production of three cooperatives involved in seed production is provided below: Table 3.6: Involvement of Cooperatives in Seed Production S. No Particulars Vanwasi, Banka Jhandaburu, Godda Atna Bagan, Dumka 1 Number of basic seed production centers Nucleus seed cocoon preservation capacity 650, , ,000 3 Basic seed produced ,222 32,465 29, ,358 53,008 32, ,043 13,200 19, ,694 23,347 74, ,267 52,334 15, ,133 55,343 31, ,895 48,308 51,074 4 Nucleus seed produced , , , , , Mr Shamshad Alam, Integrator Tasar Theme, PRADAN, says: Although good quality plantations and trained human resources are available to support the basic seed venture, it is the lack of building infrastructure that mainly limits the production of basic seed by the cooperatives. The cooperative has a Governing Board of 11 members who are selected by the ordinary members in the annual general body meeting. The Board meets every two months, along with representatives of seed producers, to plan and review progress. Seed rearers are largely aligned with a particular grainage entrepreneur. Most grainage owners are themselves involved in seed rearing. Seed rearers hold their own meetings to ascertain whether the field is ready for rearing. These meetings also serve as a form of peer review to ensure that tasks are completed on time and to quality. Manager s tasks Each Basic Seed Production Unit has a manager whose duties are to: y Maintain a sanitized environment for storage and to keep a check on disease; y Maintain the equipment; y Plan the manpower requirements for testing samples for disease; y Organize supply of DFLs; y Keep books of accounts and data on all aspects of grainage operations, including production and productivity; and 32 Reel of Fortune Building Inclusive Value Chains

35 y Daily review performance based on recorded data. The manager is paid approximately Rs 150 per day for a month and a half i.e. from end of June till mid- August. Quality control Quality control is the most critical issue in seed production. Concerns about the quality of seed material coming into the market prompted PRADAN and CSB to organize a workshop in The Tasar Seed Act 2011 was passed the next year. Under this Act, seed producers trained by CSB and PRADAN who were capable of producing high quality seed material were certified. Certification became mandatory for the critical stages of nucleus and basic seed production. Seed producers who did not follow stringent norms for isolation and hygiene stood to lose their accreditation. Since the passing of the Act, 98 seed rearers in Bihar and 132 in Jharkhand have been accredited and six BSPUs have acquired ISO certification. These measures have brought professionalism into seed production. The seed producers at the BSPU at Lilabaran said that being part of the cooperative had given them confidence. Some time ago, the quality of the seed they produced had dropped, affecting their reputation in the market. They realized the importance of quality seed production, silkworm rearing and grainage in improving the productivity of tasar cultivation. They are now tightening up systems of quality control. The cooperative also checks for disease, and in particular, for Pebrine, the nucleus seed cocoons procured from select seed rearers during November, which are preserved for six to seven months. If the incidence of Pebrine is found to be higher than the threshold of 5 percent, the entire lot is sold to the market for yarn processing. This quality control measure, though drastic, is well understood and accepted by all members of the cooperative. The ability to take such collective decisions is a measure of the maturity of the cooperative as a people s institution. The cooperative also encourages grainage owners who come to the center to collect seed to test the moth for disease and to ensure that they get good quality seed. This serves as an internal mechanism for quality control. Over the past three years, the cooperative has introduced a monitoring system to ensure quality control, for which members pay an annual fee of Rs 1,000. In return, they get help in managing the supply of DFLs in case of surplus or deficit production, in monitoring the percentage of diseased DFL and with checking cleanliness parameters. If a grainage owner neglects to follow the cooperative s norms, a message spreads locally that the quality of DFL from that grainage is not good and results in a form of social blacklisting, forcing such grainage entrepreneurs to sell their DFL in distant places. In 2014, five such grainage entrepreneurs were exposed. The author had an opportunity to see the work of Lilabaran BSPU, operating under the Vanvasi Tasar Kitpalak Cooperative Society, established in 2007 (registered in 2010) in Bihar. The cooperative has a membership of over 1,900 tasar silkworm rearers and seed producers. The Case of Tasar Silk in Bihar and Jharkhand 33

36 Box 3.1 The Vanvasi Tasar Kitpalak Cooperative Society Besides seed production,this cooperative is involved in other primary production activities relating to tasar sericulture. Members from 40 villages of Bounsi, Katoria and Chandan blocks of Banka district in Bihar have each purchased a share worth Rs 100 and paid a membership fee of Rs 50. Although about 1,900 producers are registered members, the cooperative actually caters to the needs of over 3,000 producers of various categories at the cluster-level as shown below: S. No Category of producers involved Number 1 Nucleus seed rearers Basic seed rearers Grainage entrepreneurs 97 4 Commercial silkworm rearers 1,960 5 Reelers Spinners 251 Only the first three categories listed above are involved in seed production. The cooperative has created several assets for its members, including those relating to seed production such as 1,237 ha of tasar host plantation, 97 grainage buildings with a production capacity of 582,000 commercial DFLs, and four BSPUs with a capacity to preserve 700,000 nucleus seed and produce 140,000 basic seed. Seed production over the past four years by the cooperatives Particulars / Year Nucleus seed production 9, ,975 19,340 Basic seed production 164, , , ,242 Commercial seed production 315, , , ,520 The cooperative has productivity targets of achieving at least 200eggs per DFL and 60 cocoons per DFL. At present the cooperative has exceeded this target and achieved between 80 and 100 cocoons per DFL. The main benefit of seed rearing has been the reduced dependence on external agencies for timely supply of quality seed material. It has also resulted in an incremental annual income for seed producers of between Rs 20,000 and Rs 35,000 per cycle. Those involved in both seed rearing and grainage earn much more, making a net profit of between Rs 45,000 and Rs 50,000 per cycle. 34 Reel of Fortune Building Inclusive Value Chains

37 Financial health of the cooperative The cooperative supplies seed material to the commercial grainage entrepreneurs at Rs 600 a packet of 100 DFLs. The CEO of the cooperative receives an annual salary of Rs 65,000 which is the main overhead. The cooperative bears the entire operational cost. It makes a net profit of about Rs 40,000-45,000 per cycle. Through its accumulated profits, the cooperative has, over the years, built up a corpus of Rs 14 lakh, aiming for Rs 1 crore. Economics of Seed Rearing in Plantation An attempt was made to understand the economics of seed rearing for nucleus seed rearers at the Lilabaran BSPU (see table below). This is based on the assumption that 2.25 packets of DFL (225 DFLs) are sufficient to produce 21,000 cocoons. Rearing is carried out in the isolated plantation of 300 acres managed by the cooperative. Since this investment was made under the project, it was not a burden either on the cooperative or on the ASR. Equipment worth Rs 4,300 was also given to nucleus seed rearers under the project, including Rs 3,500 for nylon nets and Rs 880 for a secateur and a sprayer. The depreciation cost is not included as the equipment was given as a grant. Table 3.7: Highlights from the Profit & Loss and Balance Sheet Statements of Banka Cooperative S. No Particulars Highlights from P & L Statement (Rs. lakh) (Rs. lakh) (Rs. lakh) (Rs. lakh) 1 Total income Sale of cocoons Sale of DFLs Sale of utilities (chemicals, etc.) Indirect income Grants Overheads Net profit Highlights from Balance Sheet 4 Paid up share capital Reserve capital Investments - FDs Cash in hand Current assets Current liabilities The Case of Tasar Silk in Bihar and Jharkhand 35

38 Table 3.8: Economics of Nucleus Seed Crop Rearing S. No Particulars Rate Amount (Rs) Total Amount (Rs) Gross Income DFL: Cocoons produced 21,000 2 Sale of good quality cocoons Rs 2 40,000 Income from firewood after 3 2,000 / year 42,000 lopping Cost 4 Cost of seed 225 R.6/ DFL 1,350 5 Cost of lime and bleaching powder Imputed cost of labor (75 x 2 person Rs ,000 19,820 7 Share of plantation owner 1500 plants@2.0 3,000 22,820 Net income (for 75 day cycle) 19,180 Net income per day 256 Net income without imputed labor 37,180 Net income/day without imputed labor 496 The table shows that the net income without imputed labor is about Rs 37,000. In most cases, seed rearing is done as a source of self-employment during the off season when the opportunity cost of labor is almost zero. In case the trees are taken on rent, there is an additional cost of Rs 2-3per tree per season. The economics shows that the average net returns per day is close to Rs 500. Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the farmer can earn about Rs. 162 per day in Bihar and Rs. 174 per day in Jharkhand, provided the scheme is operational at the time in the particular village. Economics of Basic Seed Rearing The economics of basic seed rearing under block plantation is similar to that of nucleus seed rearing The present technology was developed for block plantations; however, 90% of rearers still use host plants in the forest to raise cocoons. Here the productivity is much lower as the crop is exposed to the vagaries of climate and to pest attacks, but the variability in yield is also high. At Lilabaran, one of the rearers who had raised cocoons in the forest claimed that he got only 7,000 8,000 cocoons from two packets of DFLs (100 DFLs). Hence his income was lower than that of others who raised cocoons on their private plantations. In general, seed crop rearers produce between 10,000 and 12,000 cocoons and earn between Rs 15,000 and Rs18,000 as gross income within 1.5 months. Given below is an estimate of the economics of raising basic seed under forest conditions. The assumptions are summarized in Table 3.9, while the illustrative economics is given in Table Reel of Fortune Building Inclusive Value Chains

39 Table 3.9: Illustrative Economics of Basic Seed Rearing under Forest Conditions Assumptions 1 DFLs required by an individual for full capacity utilization Number of rearing cycle per year 1 3 Reelable cocoon productivity per DFL 40 4 Duration of rearing cycle in the seed crop (days) Price of 1 unit of DFL (Rs) Average price of 1 piece of whole cocoon (Rs.) 1.50 Table 3.10: Illustrative Economics of Basic Seed Rearing under Forest Conditions S. No Particulars Rate Amount (Rs) Total Amount (Rs) Gross Income, DFL : 225 Cost 1 Cocoons 8,000 2 Sale of good quality cocoons 3 Cost of seed 4 Cost of prophylactic measures (lime and bleaching powder) Rs Rs 8/ DFL 12,000 12,000 1,600 5 Plant maintenance 500 2,350 Net Income (for 45 day cycle) 9,650 Net Income per day As shown in the table, under forest conditions, basic seed rearing economics does not seem as remunerative. The net daily income of about Rs 215 is lower than half of that under plantation. Basic Seed Multiplication & Training Center (BSM&TC) The BSM & TCs were established by CSB to meet the demand for production of basic seed material. During the special SGSY project a center was established at Deoghar and three others strengthened in Jharkhand. One center was established at Bhagalpur, Bihar. There are 22 BSM & TCs working under the supervision of the BTSSO. The Case of Tasar Silk in Bihar and Jharkhand 37

40 Table 3.11: Production and Supply of Basic Seed by BSM&TCs Year DFLs Produced (lakh Units) DFLs Supplied (lakh units) Source: BTSSO website, accessed Feb The author visited the BSM & TCs located in Bhagalpur, Bihar, and Deoghar, Jharkhand. Box 3.2 BSM & TC, Bhagalpur The center was established in 2004 under the special SGSY project. Although autonomous in functioning, it is linked to CSB and is the only such center in Bihar. The center is built on land given by the Department of Industries, Government of Bihar. The buildings were constructed at a total cost of Rs 34 lakh and include the main complex as well as five grainage buildings. The center has a total staff of eight which includes three technical assistants, one UDC, one assistant technologist, two watchmen and one driver. It is headed by Dr AK Singh, Scientist-C. The running cost of the center is about Rs 57 lakh per annum, which includes Rs 50 lakh for salaries and Rs 7 lakh of overheads. The total gross income from sale of DFLs and pierced cocoons is Rs 10 lakh per annum. The cost of procuring cocoons is Rs 8 lakh per annum. As per governmental norms, the net profit of Rs 2 lakh per annum is returned to the government under miscellaneous account. The center was given a non-eroding purchasing fund of about Rs 5 lakh. This has now grown to Rs 10.4 lakh since the interest can also be used. The center provides a valuable service of supplying nucleus and basic seed material to various stakeholders such as DoS, PRADAN, private growers and farmers. The center has achieved a hatching percentage of 90-95% in its grainage where the standard is about 80%. It produces seed in two cycles. The first cycle had a production of 50 cocoons/dfl where the norm was 40 cocoons/dfl and 50 cocoons/dfl for basic and commercial seed respectively. The clients come to the center and test the seed material before procuring. 38 Reel of Fortune Building Inclusive Value Chains

41 3.2.3 COMMERCIAL SEED PRODUCTION (GRAINAGE ENTREPRENEUR) Production process The grainage entrepreneur is typically a tribal youth who is trained by PRADAN and CSB in the technical and managerial aspects of preparing a grainage. This activity commences in July when the entrepreneur gets his quota of basic seed either from the cooperative or from the nearest BSM & TC. He then gives the seed for rearing to selected seed rearers who would go through the cycle and produce cocoons. The cocoons are collected and placed in the grainage house in specially sanitized conditions. The cocoons are strung together in the form of garlands and hung on a bamboo structure. A temperature of C and relative humidity of 70-80% is considered ideal for successful moth emergence, mating and oviposition. To facilitate optimum moth emergence, these conditions are maintained by sprinkling water on mats made of gunny cloth fixed on the windows and door. Usually emergence begins in the afternoon and continues till the early hours of the morning. The moths mate 2-3 hours after emergence preferably in dark and humid conditions. Healthy female moths are selected to ensure freedom from disease. Moths are placed in artificial enclosures such as a paper box or a plastic box with perforations and allowed 72 hours to lay eggs. After oviposition, individual mother moths are examined for diseases, in particular, Pebrine. Infected moths and their layings are destroyed by burning at a distant place to avoid contamination. The eggs are then washed, disinfected and dried. The dried eggs are packed loosely in muslin cloth bags and labeled with the relevant information such as date of mating, date of hatching and Number of DFLs. The seed is then distributed about 2 days before the expected date of hatching to the members of the TVS as per the demand raised earlier. One of the reasons why women prefer not to engage in grainage activity is the artificial process of oviposition, which is not very nature friendly. If this process could be modified and made more nature friendly, the involvement of women would go up greatly. Economics of grainage activity As per an independent study carried out by Manu Sinha (2009), about 92 per cent of the grainage owners participating in the study earned between Rs 22,000 and Rs 30,000 in a cycle of three months. About 4 per cent made losses and another 4 percent earned more than Rs 40, 000. About 74 per cent of graineurs also participated in commercial rearing and 30 per cent in seed rearing, which might have resulted an additional income of around Rs 20,000. The labor cost is not included in this calculation. Those who do only grainage and do not take up seed rearing, earn about Rs. 15,000-20,000 in one cycle. The grainage owner has two sources of income. While the DFLs produced represent the main product, pierced cocoons represent a by-product which is sold to spinners for making spun yarn. An illustrative economics of grainage and seed production activity (as estimated by K Satyanarayana, 2014) is shown in Table It should be mentioned that a total investment of Rs 93,000 is needed, comprising a grainage building (about Rs 60,000) and grainage equipment (about Rs 33,000). This investment has not been shown in the calculations because the grainage building is usually provided to the grainage entrepreneur by the TVS and the equipment is provided under the project as a grant. The Case of Tasar Silk in Bihar and Jharkhand 39

42 Table 3.12: Economics of Commercial Grainage and Seed Production S. No Particulars Rate Amount (Rs) Gross Income 1 Sale of DFLs 6250 Rs 6/DFL 37,500 Total Amount (Rs) 2 Sale of pierced cocoons Rs ,000 62,500 Cost 3 Cost of seed cocoons 25,000 Rs. 1.25/cocoon 31,250 4 Consumables 1,000 6 Hiring microscope operators 10 Rs 150/day 1,500 7 Interest on working capital 12 percent per annum for 3 months 1,020 34,770 Net Income (for 45-day cycle) 27,730 Net Income per day COCOON PRODUCTION Raising cocoons on block plantations is more productive and remunerative as a livelihood activity, but it also relatively new and limited by the availability of host plantations raised on private lands. Plantation raising is therefore being taken up aggressively under the MKSP projects to cover at least the seed rearing areas. During the project, efforts were also made to initiate the chawki method of raising young larvae under nylon nets within the forest area, to provide some measure of stability to production. Realizing the value of the host plants for future survival and livelihoods, tribal communities in the Santhal region actively started protecting the forests. Hence cocoon production is discussed separately under two headings a) under forest conditions and b) in block plantations Commercial Rearing in The Forest In Mehasa Munger village in Masalia block of Jharkhand, we met Budhinath Tudu and his daughter Balabeti Tudu while they were looking after their asan trees on which they were rearing tasar with PRADAN s help after 15 years. Budhinath had given up the traditional method of rearing due to the high rate of erosion. Now he was using a mix of modern technology and traditional methods. Budhinath had blocked about 1,000 asan trees in the forest in a compact area for rearing tasar. Two packets of DFLs (200 DFLs) were used to cover this area. On an average a healthy worm is expected to eat 250 gm of leaf during its entire life. In the first cycle the fiber content of the leaves is lower and so the silk content in a cocoon is only 1.1 gm. In the second crop there is more fiber and more protein synthesis takes place, resulting in a higher weight of about 1.8 to 2 gm/cocoon Sal leaves are also eaten but due to high fiber and tannin content the cocoons are tough. They weigh gms/cocoon. As of now they grow only in the wild and are not reared commercially. In case of shortage of leaves in the last stage of rearing, rearers sometimes use the young plants sal leaves for feeding the fifth stage larvae. This also results in higher shell weight of the cocoons 40 Reel of Fortune Building Inclusive Value Chains

43 The chawki method of rearing under nylon nets, promoted by CSB, was adopted to minimize the risk of predator attacks or destruction of the larvae by heavy rain or storm. To carry this out in the forest, a clump of small trees was covered with nylon net of approximate size 40 x 30 x 10 supported by a temporary bamboo structure. The area was disinfected with lime and bleaching powder to keep away disease spores on the ground. The larvae were reared in this manner for the first and second instars only. After this, the net was removed and the larvae were transferred to bigger trees with more leaves. To prevent red ants from feeding on the larvae, Budhinath had pasted a band of burnt vehicle oil on the tree trunk. In a neighboring plot, Anil Tudu and Nirasi Soren had raised an excellent crop of cocoons and hung them for display on a makeshift rack. These tribal farmers were totally at home in the forest, going about an activity that they were most comfortable with, willing to learn new techniques and involving their families as well. The average economics of raising a commercial crop of cocoons under forest conditions is shown below: COMMERCIAL REARING IN BLOCK PLANTATIONS Advantages y The plantation is raised on private wasteland and is easily accessible, unlike forests, and women also contribute to the rearing activity. y The density of trees is high in the plantation, making it more cost effective and less laborious to carry out various rearing activities. y The entire package of practices can be applied without any restrictions from forest authorities, making productivity high. y Pruning of trees as recommended in the PoP generates a source of fuel which has economic value. Table 3.13: Economics of Commercial Cocoon Rearing in the Forest S. No Particulars Rate Amount (Rs) Gross Income Cost 1 Cocoons raised 11,250 2 Sale of good quality Rs 2 20,250 3 Sale of flimsy cocoons Total Amount (Rs) 4 Income from firewood after lopping 2,000/year 22,813 5 Cost of seed 200 Rs. 600/100 DFL 1,200 6 Cost of lime and bleaching powder Cost of labor (65 person Rs. 120/- 7,800 9,470 Net Income (for 75 day cycle) 13,343 Net Income per day Net income without imputed labor 21,143 Net income/day without imputed labor The Case of Tasar Silk in Bihar and Jharkhand 41

44 Disadvantages y Due to a gestation period of about three years, the rearing activity can start only in the fourth year. y As the host plants are susceptible to grazing from animals, a concerted effort has to be made to protect the plants during the gestation period and beyond. y Due to mono-culture, the chances of severe loss of plants to pests are high. The issue of gestation period is being tackled under the NABARD-TDF project by promoting vegetable cultivation as inter-crops between rows of arjuna trees planted with a gaps of 10 x 6 or 8 x8, instead of the 6 x6 gap between trees that was previously followed. This initiative is also helping provide yet another source of livelihood,so that the complete portfolio of livelihood options covers all the gaps and generates income throughout the year. The problem of protecting plantations is tackled by the women s SHGs and the TVSs. A deep trench is dug around the plantation to prevent animals from entering. In addition, farmers deposit a small portion of their earnings into the TVS account, which is used to pay watchmen to keep the cattle out and prevent intruders from damaging or cutting the trees. This is crucial in the months between December and June when there is no standing crop in the village and cattle are left free to graze. The plantations are raised and protected in clusters of villages. The author visited two such clusters, one at Salaiya and the second at Badgunda. At Salaiya cluster in Banka, Bihar, the plantations were 10 years old and rearing had been taking place for the past six years. We later visited Badgunda village in Jamui district of Bihar, where the plantation was four years old and rearing was just at the inception stage. Here, an integrated approach that included the cultivation of vegetables as inter-crops was being undertaken under the NABARD-TDF project. Before moving on to the cocoon rearing process, it should be mentioned that PRADAN made a number of adaptations in the technology provided to it by CSB, to suit the local conditions and to improve productivity. This process of adaptation (elsewhere referred to as participatory technology refinement) is critical for successful transfer of technology in the field. The implementation process also brought to the surface second-generation problems and unaddressed technical issues that were collated and passed on to scientists at CSB and other institutions. Learnings from the Salaiya Cluster Establishing Host Plantations: Plantations of arjuna were established in this cluster comprising Salaiya, Panchrukhi, Tatariya, Kusumdih, Lakarma, Makunda and Gharchappa villages in 2004 under the special SGSY project. Cocoon rearing was initiated in 2007 after a gestation period of only three years. The gestation period was reduced by a year due to certain improved agronomic practices which included, among other things: y The use of saplings raised in larger sized polythene bags (8 x 6 in comparison to 3 x 4 normally followed by the Forest Department and other commercial nurseries) and with the addition of 100 gm of vermicompost to each bag; y The collection of seeds from special areas with high quality mother plants; y Larger plant-to-plant distancing allowing for better growth and foliage of the plants; y Planting in pits of 1.5 x 1.5 with application of 400 gm of vermicompost per pit; y Planting saplings at a time when the pits are saturated with water and the soil is moist; y Creating staggered trenches for water harvesting to promote better growth of plants where the slope was between 3-5 per cent and field-bending wherever the slope was less; y Protecting plants from bruising with the help of protective trenches as well as appointment 42 Reel of Fortune Building Inclusive Value Chains

45 of watchmen, and social fencing by women s SHGs; and y Ensuring proper and timely after-care of the plantation including hoeing operations, pruning, protection from pests, etc. These measures ensured that per cent of plants survived and a proper canopy was well developed to allow early commencement of rearing. Plantations were necessary in the region because natural flora was scarce. Large tracts of unutilized land were available and people were aware of the benefits of silkworm rearing. Previously, a few farmers from the cluster would travel 12 km by bicycle to the forest for tasar rearing. The cocoon rearer had to camp there for three months to complete the rearing cycle. They used to get only half the cocoons and sometimes even less than half of what they get now in the plantation. They also had to pay a rent of about Rs 250 to the forest guard, which further reduced their income. The women s SHGs took active part in establishing and protecting the plantations. About 25% of the labor was contributed by the people through shramdan (voluntary labor). PRADAN also encouraged them to contribute 10% of the cash that they received as labor, towards building a contingency fund which was maintained in the account of the Samiti to be used for unexpected expenditures and for hiring watchmen. Silkworm Rearing: To initiate the rearing process, a brushing site was prepared within the plantation. A small patch equal to the size of the chawki net (40 x 30 x 10 ) was selected and sanitized with bleaching powder and slaked lime applied on the ground in the ratio of 9:1. Ripe leaves and apical buds were removed from the plant and nylon nets were used to cover them in order to protect the larvae from predators. The process remains the same as mentioned in previous villages with slight modifications. The highlights of cocoon rearing in Salaiya cluster was the increase in the number of DFL utilized from1,000 in the first year to 3,500 in 5 years, as well as the active involvement of women in every aspect of the rearing process, which was previously impossible due to safety issues and taboos surrounding their participation. Economics of cocoon production: The economics of cocoon rearing in this cluster as depicted in Table 3.14 show that it is a profitable business with a net income of more than Rs 500 per day per family. This does not include the cost of either establishing a plantation or maintaining it (plantations are maintained through shared costs which need to be imputed). It was observed that unless the SHGs made further investments to maintain the quality of plantations, productivity would suffer, directly affecting the economics of cocoon rearing. The number of cocoons produced per DFL in the cluster (villages other than Salaiya) has gone down from 110/DFL when they started eight years ago to 85/DFL at present. The quality of cocoons is also related to the quality of leaves. Therefore, the SHGs need to realize the importance of investing in their plants. The following measures have been suggested to maintain and improve the quality of plantations: y Renovating staggered trenches; y Making vermicompost in the village and applying it to plants; y Applying fertilizers in the form of NPK; y Light pruning of the arjuna trees every year to improve foliage; and y Pollarding at an interval of three years to maintain the height and increase the number of branches. Learning from Badgunda cluster under NABARD-TDF project More than 100 villagers comprising 80 women and 20 men from four different villages had assembled The Case of Tasar Silk in Bihar and Jharkhand 43

46 Table 3.14: Economics of Cocoon Rearing in Salaiya Cluster S. No Particulars Rate Amount (Rs) Total Amount (Rs) Gross Income Cost 1 Cocoons raised 21,000 2 Sale of good quality Rs 2 36,000 3 Sale of flimsy cocoons 0.5 1,500 4 Income from firewood after lopping 2,000/year 39,500 5 Cost of seed 200 Rs 600/100 DFL 1,200 6 Cost of lime and bleaching powder Cost of labor (30-55 person Rs 120 4,800 6,470 Net income (for 65-day cycle) 33,030 Net income per day at a central place in Badgunda village when the author visited them. There are six Mahila Mandals in Badgunda and two in Dhab. Members from Santhali village and Karamila had also come. The SHGs were first started at Dhab in 2009 and later at Badgunda in The villagers had taken up integrated plantation with agriculture under the NABARD TDF project. Roshni didi from Dhab tells the story of how they prepared the nursery of asan plantation under the guidance of PRADAN and planted 20,000 saplings and were paid Rs 0.80 per plant and Rs 1.80 per pit towards labor expenses. They started rearing cocoons in the fourth year. Eight water harvesting tanks were built under the project. When the author visited the village, water was available up to a depth of 6-7 ft in each tank. This was used for growing vegetables and to bathe. Once the savings groups were set up, women stopped going to money-lenders. They bought an irrigation pump as a group asset to benefit all members. One of the SHGs has a saving of Rs 50,000. Now every woman wants to get her own pump! In 2014, three or four women have started tasar cocoon rearing, earning Rs 15,000 each. Half this money is kept by the men in the family, since it is they who sell the gotis (cocoons) and vegetables. The women say that most of this money is spent on liquor! While social change is a slow process, with the empowerment of women in this cluster, the process has been set in motion. Since the arjuna plantation has a gestation period of about four years, there is scope to grow vegetables such as brinjal, tomato and bitter-gourd as intercrops. Villagers have adopted PRADAN s innovative method of vegetable cultivation piloted in Banka district, developed under the Lutheran World Relief (LWR) Project,which involves planting vegetables in 2 ft-deep pits sterilized by burning leaves and filled with good soil, fertilizer and biomass. This method yields a productivity increase by three or four times. Twenty women from Dhab and 28 from Badgunda have used this method to harvest brinjal worth Rs 4,000 from 100 plants! 44 Reel of Fortune Building Inclusive Value Chains

47 PRADAN also introduced the SRI method of paddy cultivation in the village, which has helped significantly raise productivity and reduce the cost of cultivation. Compared to before, when they produced rice just enough for subsistence, not only do they now have food security for the whole year, but they also sell the surplus for around Rs 8,000. In a nearby village, people grow chili by raising saplings and planting them out in pits. One woman reported that she sold one quintal of chili, grown on her 20 decimal plot, for Rs 80/kg. Other vegetables such as pumpkin and cucumber are sown early during the kharif season and fetch an average income of Rs 15,000. In the same village, people are also inter-cropping with mango plantations, mainly of the malda, langda, dusheri and Amrapali varieties, and are now learning the grafting method for propagating the mango plantation. In the summer, the women are engaged in the traditional activity of collecting mahua flowers and seeds for home consumption and for sale. Mahua has high nutritional content and is also used to make liquor, which is consumed locally. Sal is another tree that produces NTFP and is valued for the leaves that are used to make leaf plates. PRADAN has loaned a leaf-making machine to local entrepreneurs; the entrepreneur can take the machine, which costs Rs 15,000, on a deposit of Rs 5,000, and repay the balance to the group. The group then uses the amount to buy the next machine. Year-round livelihood security: Women in the cluster were achieving year-round livelihood security through the project as shown in the table below. The model provides a more comprehensive approach towards uplifting the poor from the vicious cycle of poverty. 3.4 COCOON STORAGE AND MARKETING MASUTA PRODUCERS COMPANY Scientific storage of cocoons procured during the season of cocoon production was a necessary condition for creating the value chain, linking cocoon producers with yarn makers. To that end three godowns in strategic locations had been established under the SGSY projects. Masuta producers company had been operating these godowns during the years that it was active. These are now being managed by PRADAN as cocoon banks. The author visited the godown located at Inaravaran village, Kotaria Block, Banka, Bihar, in order to understand how it functions. The following information was provided by Mr Pankaj Kumar who was incharge of the cocoon bank. The cocoon bank Table 3.15: Year Round Livelihood Security in Badgunda Cluster under the NABARD-TDF Project S. No Crop Months 1 Paddy (kharif crop) using SRI July to November 2 Wheat (only few people have adopted) November to March 3 Vegetables (about 50% adoption) November to January 4 Mahua collection (in summer) Flowers Seed March to mid-april Mid-June to July end 5 Sal leaf plate making Mid-April to mid-june 6 Sericulture cocoon raising September to November The Case of Tasar Silk in Bihar and Jharkhand 45

48 in this village has a capacity of 3 million cocoons which are collected over a period of 4-5 months. Commercial cocoon purchase starts from end of November and ends in January where as tri-voltine (three crops per season) cocoons are available in January and February. Pierced cocoons are purchased in the month of August (from basic grainage) and September (from commercial grainage). When the cocoons are brought to the godown, they have to be processed. The first step in processing is stifling. After this process is completed, the cocoons are graded, sorted, packed, labeled and stored. Stifling: Adjacent to the godown are two stifling chambers. Each chamber has a number of metal trays on which cocoons are placed in racks. Once the door is locked, heat is provided by burning firewood until the temperature in the chamber rises to C. The heat is provided through conduction as hot air passes through a pipe surrounding the trays until finally this is released through a chimney. Each chamber has a capacity to process 12,500 cocoons in one shift. Two shifts can be carried out in a day. Each cycle of stifling takes four hours, after which the cocoons are sun-dried for a day on a cemented platform in front of the godown. This is done to get rid of any residual moisture that may remain after the stifling process. Sun-drying has to be repeated after sometime before the cocoons are ready for grading, sorting and storage. The system is rather crude and not very energy efficient. About 20 quintals of firewood are consumed annually. In order to improve the efficiency of the stifling process and to make it more eco-friendly, an electric stifling machine was procured from Malda along with a generator. However, on trial it was found that the cocoons were burnt and the machine was hence discarded. There is a need to improve this technology and make it more eco-friendly. In the case of ahimsa sericulture only cut cocoons are used, thereby doing away with the stifling process altogether. Cut cocoons can however only be used to make spun yarn making the livelihood economically less attractive. This remains a dilemma for the promoters for which easy solutions are not available. Grading: During grading, flimsy cocoons are first removed. Cocoons suitable for reeling are separated from those suitable for spinning. These are separately packed in gunny bags. Bi-voltine cocoons are generally of better quality and are tougher compared to tri-voltine cocoons. While deflossing the cocoons some waste fiber is collected, which is processed into yarn with the help of a machine developed by private entrepreneurs at Malda, West Bengal. 12 Storage: The cocoons are stored for 6-8 months until the next season. Before storage the godown is sanitized. A round of pesticide Cyperphos-20EC is sprayed. The godown has been designed to be ratproof by digging a moat around it. The bags are placed on racks after proper labeling. In the case of reelable cocoons, about 2,500 are stored per bag whereas in the case of cocoons suitable only for spinning, 3,000 are packed in one bag. Reelable cocoons have to be vertically stored so that their shape is not distorted due to the weight. The cocoons have to be sundried from time to time to remove the moisture absorbed from the atmosphere or released by dead pupae. When prospective buyers (reelers and spinners from CFCs promoted by PRADAN) approach the godown manager, he shows them the available grades of cocoon and the price is negotiated. 12 Traditionally in West Bengal, this waste fiber was also converted into yarn on the Natwa (traditional, hand-operated, equipment resembling a pendulum). 46 Reel of Fortune Building Inclusive Value Chains

49 3.4.2 NEW BREED OF COCOON TRADERS After the exit of Masuta, a void has been created in the marketplace, especially for the TVS cocoon producers. This gap is being plugged by the cocoon banks created by PRADAN. At the same time, a new breed of village-level traders has emerged; these traders perform the function of aggregator, collecting cocoons from the farmer s doorstep and selling it either to the cocoon banks or to larger traders in distant markets. The author had the opportunity to interact with one such trader at Inaravaran village. What emerges from this interaction is that trading in cocoon is also a viable livelihood along the tasar value chain. However, since it is a seasonal product, the trader needs to include other minor forest products in his /her portfolio. Also since some products are more risky than others, he /she needs to balance the portfolio with both high and low risk. You can see this trader s portfolio and risk-return analysis below: Box 3.3 Cocoon Trading as a Livelihood Option Based in Inaravaran village, Hiraman Yadav and his brother are involved both in cocoon production as well as in the trade of minor forest produce, including cocoons. The price of cocoon last year started at Rs 1.92/cocoon. After two months it had risen to Rs 2.46/cocoon. Hiraman sold an estimated 500,000 cocoons last year. The cocoons were sold to larger traders in the supply chain located at centers within a range of 200 km, such as Bishnupur in Bankura district (200 km), Tantipara in Birbhum district (140 km) and Raghunathpur in West Bengal. This is also a major fabric production center after Bhagalpur in Bihar. Hiraman and his brother would collect about 60,000-70,000 cocoons at a time and transport these to the centers in their pick-up van. The cost of transportation worked out to Rs 10/km. Last year they sold seven such lots of cocoons i.e. around 500,000 cocoons. The net profit from this trade was Rs 80,000 which the brothers shared. The brothers get market information from traders on the phone. They have invested a working capital of Rs 1.35 lakh from their own savings. They have also obtained a credit limit of Rs 3 lakh from UCO bank. The need for working capital is minimized by procuring cocoons from friends and relatives who are willing to wait for a few days till the payment is received. Apart from tasar cocoons they also trade in bidi leaves and sal leaves. The season for the former is about four months while the latter lasts for only one week. The perception of risk and returns vary in all these trades. The brothers try to balance their portfolio of risk-return like any other investor will do (see figure 5). In their perception, the trading of bidi leaves involves the highest risk (possibly due to price fluctuations), but the returns are also high. In contrast trading of sal leaves involves low risk, but the margins are also very low. Trading of tasar cocoons, which lasts for about two weeks, falls between these two extremes. The Case of Tasar Silk in Bihar and Jharkhand 47

50 Figure 3.2: Risk Return Matrix of Village NTFP Trader Risk High Medium Low High Bidi leaves (4 months) Return Medium Tasar cocoons (2 weeks) Low Sal leaves (1 week) 3.5 YARN PRODUCTION Reeling is the process through which a continuous silk filament is drawn out from the whole tasar cocoon and six or seven such filaments drawn from an equal number of cocoons are twisted simultaneously to produce a fine yarn, which is smooth and lustrous. The yarn produced through the process of reeling is called reeled yarn, locally termed as khewa. Spinning refers to the mechanical process that produces yarn from cut or pierced cocoons. The yarn is coarser than reeled yarn and fetches a lower price REELING Traditionally, yarn production was an integral part of weaving and was seldom independently carried out. Yarn production and fabric weaving were carried out in the handloom weaver s household. The women and girls in the family would produce yarn through a primitive process using the palm and the thigh. This was a tedious process that often led to health problems. To address the issue of productivity and drudgery, CSB designed a power operated reeling cum twisting machine during the UNDP project in PRADAN accessed a few of these machines under the UNDP project and tested them in the field with women reelers at Saraiyahaat in Dumka district of Jharkhand. Their performance, in terms of productivity as well as the quality of produce,was found to be superior to existing machines. The income of reelers was estimated to more than double, rising from Rs 90/kg to Rs 200/kg. However, as the cost of diesel and machine maintenance grew, so gradually did the demand for manually-operated machines in the region. Women too preferred the manually-operated machines as they could then work when they chose and not be tied down to a mutually convenient time for all. With this feedback, CSB modified the machine to include the manual operation option. In this manner, PRADAN started reeling as an independent node of the value chain. Although initial trials were held as early as 1994, the common facility centers (CFCs) started coming up in a big way during the special SGSY project following a successful trial during the UNDP project period (albeit with non-undp funds). Reeling was started with rural women, mostly from the Other Backward Classes since tribal women were not keen on this sedentary activity. Common Facility Center: As the name suggests, a CFC has a common work-shed where individual women come together and work. The center has certain common facilities such as an office and a storage room, a hand pump,a power generating set and a drying floor for cocoon and yarn. In 48 Reel of Fortune Building Inclusive Value Chains

51 addition, there is a room for a manager who performs certain functions such as pre-treatment of cocoons, collective purchase of cocoons and sale of yarn, maintenance of records, etc. Provision of these facilities at the CFCs attracted more and more women towards reeling. Although similar groups of women spinners were also formed, they operated from their homes rather than at a CFC. Since the machines were small and portable and the investment low, people preferred to work from the comfort of their homes. By the end of the special SGSY project in 2013, there were 1,474 women engaged in yarn-making in the Bihar and Jharkhand. Of these, more than 959 reelers were working through 35 CFCs promoted by PRADAN. Functioning of CFC at Bhusiatari village: A cluster of four or five SHGs from Bhusiatari and Letwa villages of Katoria block in Banka district of Bihar decided to set up a CFC for reeling cocoons. The women were selected from these SHGs based on their willingness to take up the activity and their ability to spare time. The group selected a manager to take care of the day-to-day functioning of the center, the only criteria being literacy, sincerity and honesty. While the reeling machines are owned individually they are kept at a common place in the center in a pucca shed, where women come every day at their convenience to reel yarn. The center was started in 2003, when CSB trained 40 people in nearby Kadhar village on 10 machines for a month. Initially the work was done under a make-shift shelter but this did not work well in the summer when the hot wind would cause the threads to snap. The current pucca shelter was built with a grant under the Special SGSY program, on land donated by one of the villagers. The women from Letwa would come to the center at 10 am, bringing their lunch with them, and wrap up by 4-6 pm. The women from Bhusiatari would however come only by 11 am; they would also go home for an hour for lunch. Each woman reeled about cocoons in a day. Quality Management System: The quality of the reeled yarn is adjudged on the basis of its performance in weaving. Smooth and uniform weaving is possible when the yarn has uniform denier 13, uniform color and twists. The manager of the group monitors the quality of the production. The reelers are trained to understand quality parameters. Quality management systems are standardized at the group level. Differences may exist in the quality of yarn being produced by individual reelers. In order to ensure uniform quality, standard production processes are administered within the group under strict supervision of the manager. Standard processes include using the same quality of cocoons, similar cooking procedures, a common production regimen, and uniform re-reeling methods. A standard grading and color-matching system is followed to bring near-total uniformity in the quality of the yarn. Yarn grading is done in the village in front of the producers in order to Table 3.16: Reelers and Spinners under the Special SGSY Project Particulars Jharkhand Bihar (till 2013) Total (till 2007) Common Facilitation Centers for Reelers No. of Reelers No. of Spinners Total No. of Spinners and Reelers Defined as the weight of yarn in grams per 9000 m. length of yarn The Case of Tasar Silk in Bihar and Jharkhand 49

52 make the quality management system function in a transparent manner. Every month a particular date is fixed by the reelers for the grading of the yarn. On the scheduled day, a grader who is also the aggregator on behalf of Masuta Producers Company, visits the center and grades the yarn based on the norms shared with the reelers at the time of training. The grader is an independent person and he charges his/her fees based on the kgs of yarn graded. The grading is done separately for each reeler in front of the group. A-grade yarn is typically thin, with very little color variation, uniform in thickness and free from floss. On the other hand B-grade yarn is thicker with more color variation and includes incidence of knots as well as floss. Close to 90 per cent of the yarn produced was of A-grade. Mr Harekrushna Shukla had been appointed by Masuta to play the role of aggregator for this group. His responsibilities included supplying the cocoons as per the indent generated by the group, ensuring the quality of yarn produced, grading the yarn in front of the reelers, generating the muster roll, aggregating the yarn and supplying it to Masuta. Mr Shukla earned a margin of Rs /kg. The grader prepares the consolidated grading sheet of individual reelers indicating weight of yarn provided and the corresponding grade. Based on the feedback received, the reeler tries to improve her performance the next month. The data summarizes the following: 1. Number of cocoons processed 2. Yarn produced 3. Number of days worked 4. Recovery percentage 5. Quality (% of A-Grade and B- Grade) 6. Profit earned Facilitators from PRADAN follow up with an analysis of the reelers performance after each grading and try to address individual reelers problems. A common date for grading also ensures timely payment for the whole group. Selling reeled yarn: The yarn is picked up by Masuta from the CFC where reelers bring the yarn produced during the period (called the grading cycle ). The aggregator from Masuta checks the quality and gives the grade to the yarn. The aggregator prepares the muster roll on the basis of quantity of cocoon used and quantity of A or B-grade yarn produced and a copy of the roll is taken to Masuta s office. Subsequently, cash is deposited in the bank account of the group as per the rate finalized by Masuta for different grades of yarn in the annual general meeting of Masuta, and after deducting the value of cocoons and chemicals supplied to the group. The rate is fixed annually and remains constant irrespective of fluctuations in the marketplace. Three women are appointed to collect the cash from the group s bank account and distribute it to the members as per the muster roll. Economics of reeling: The economics of reeling for a woman who spends the whole day at the center from 11 am till about 5 pm is provided in the table below: 50 Reel of Fortune Building Inclusive Value Chains

53 Table 3.17: Economics of Reeling at Bhusia Reeling Center Sl. No Income Particulars Rate At current prices During SGSY 1 Sale of A grade yarn 105 Rs 3,600/kg (Rs 3,400/kg during SGSY) Amount (Rs) Total Amount (Rs) Amount (Rs) Total Amount (Rs) Rs 3,200/kg (Rs 3,000/kg during SGSY) Cocoon peduncles 30 Rs 100/kg Cocoon waste (after reeling) 41 Rs 200/kg Cost 1 Cost of cocoons with stifling 2 Cost of utilities (peroxide, soap, boiling cost) 3 Manager and transportation cost 150 Rs 2.80/cocoon (Rs 2.00 during SGSY) 150 Rs 0.08/ cocoon 150 Rs 0.08/ cocoon Net income/day Net income/year (assuming 240 days/yr. part time engagement) 10, An alternative mechanism to procure yarn from the yarn producers is also in the process of being set up. These measures need to be expedited so that the yarn makers maintain their interest in this new livelihood activity which had worked for them for more than five years. Strengthening this node is also crucial for the entire value chain to perform at an optimal level SPINNING Spinning involves drawing out discontinuous filaments from pierced, flimsy or cut cocoons (having shell weight below 1.2 gm) to produce a continuous yarn of uniform thickness. This yarn is coarser than the reeled yarn with denier ranging from 270 to 280. In spite of this, it is used for thicker varieties of fabric and finds ready acceptance in the furnishings market. Since the yarn is coarser, the price realized is almost half compared to that of reeled yarn. Spinning was readily accepted by women belonging to the Other Backward Classes, who would typically stay back while their families migrated in search of work in the lean season. This was because they could work at home in their spare time and did not have to go to other farmers fields as agricultural labor. Besides, since they had got the spinning machines (market rate Rs 2,500, now Rs 3,000) from PRADAN, they did not have to make any initial investment. The Case of Tasar Silk in Bihar and Jharkhand 51

54 PRADAN started promoting spinning as a group activity in 1991 in Rajdaha village of Bounsi block in Bihar with manually operated machines called Trivedi Charkha supplied by an entrepreneur from Bhagalpur and developed by some people involved in promoting khadi. The idea behind encouraging women to work in a group was so that they could learn from each other, and increase productivity and quality. However, no common facility centers (CFCs) were established, unlike the case with reeling. Spinning at Kordaha village Kordaha village, in Dumka district of Jharkhand, was one of the early villages to adopt spinning as an alternative supplementary livelihood activity. The activity was organized by Pooja Mahila Mandal, started 14 years ago as a savings group, with members in a group. The group started with weekly savings of Rs 5 per woman, which has now gone up to Rs 12. Each woman has savings of about Rs 3,000-4,000. Women would take loans for a wedding in the family or for agriculture. It often took long to repay loans. This made them realize the need for an alternative source of income. Women were selected from those who did not migrate for labor. PRADAN trained them in spinning over a month, deputing an experienced woman from another spinning center to conduct the training. The women procured cocoons on credit from Masuta s godown, picking up whatever quality was available, and shared the cost of transport between them. Spinning was done from C- and B-grade cocoons, which cost Rs 0.80 and Rs per cocoon, respectively. The women reported a conversion rate of 1,200 1,500 cocoons for one kg yarn. The value of this yarn was about Rs 1,400/ kg for A-grade and Rs 1,300/kg for B-grade yarn. The women complained that margins had dropped and that they could not earn more than Rs 200/kg yarn, compared to Rs /kg previously. commercial exploitation the content should not be less than 0.7 gm/ cocoon. PRADAN and CSB immediately collected a sample of cocoons to ascertain the quality that had been supplied to the group. The price of spun silk in the village was Rs 1,550/ kg and Rs 1,650/kg at Masuta. After reducing the cost of goti (cocoon), the women get paid Rs /kg. On an average a women can produce 200 gm of yarn/day working on the machine for four to five hours daily. Each woman earns on an average between Rs 800 and Rs 2,000 in a month, depending on the amount of time that she spares for spinning. The average income is around Rs 1,200/month. Theoretically, this work could be done throughout the year. However, the women would take a break during the planting and harvesting seasons for about 2.5 months. Interestingly, once one woman in a family started spinning, other women in the family would also pick up the skill. Earlier the group was producing bleached yarn. This had to be discontinued as the recovery reduced and the cost of bleaching was more, ultimately leading to lower margins. As in the case of reeling, grading of the spun yarn was carried out at the group level on a fixed day of the month. Similar criteria were used by the grader and aggregator who collected the yarn and took it to Masuta. Masuta offered a base price to the producers (both reelers and spinners) keeping in view the cost of production. At the end of the financial year, if the company made profits, it provided dividends to its member producers. Most of the women in this mandal produced A-grade yarn. There were some new entrants who produced B-grade yarn because they lacked experience. Payment was made within days by Masuta directly into their account at the local bank, about 15 km away. It took 6-15 days for the payment to materialize. The silk content in a given cocoon can be calculated by its shell weight and its silk conversion ratio. For 52 Reel of Fortune Building Inclusive Value Chains

55 Economics of spinning: The economics of production for a spinner on an average day is shown below. It is based on the following assumptions: i) Approximately 1,500 C-grade cocoons are needed to produce one kg of yarn. ii) More than half the women produce about 3 kg of yarn per month or about 100 gm per day. The produce ranged between 1 kg and 4 kg in a month. iii) Therefore, to produce 100 gm of yarn, a woman needs 150 cocoons. iv) About 500 m of A-grade yarn, measured as a lachhi, weighed about 16 gm. For an average production of 3 kg this works out to 93,750 meters per month. However, yarn is sold by weight and not by length. The average price was taken at Rs 1,550/kg. These calculations clearly show that at the prevalent prices of cocoon and yarn, spinning, just like reeling, has become unprofitable, with an average net income of only Rs 26.5 per day. The situation during the project period was much better as depicted in the last two columns. Even during SGSY, spinning provided a net income of little over Rs 41 per day which worked out to approximately Rs 10,000 in a year. Hence this occupation was taken up by the poorest among poor people and that too, as a supplementary source of income. Meanwhile at Kordaha village, with the availability of brick making as an alternative livelihood, the opportunity cost of labor went up. Brick-making takes place between November and April; a husband and wife who made 1,000 bricks in a day could earn Rs 450 per day. Even if they worked for 20 days in a month, they stood to earn Rs 9,000 per month i.e. Rs 4,500 per person per month. As a result, six or seven women from the group had put their spinning machines aside and started brick-making. Table 3.18: Economics of Spinning at Kordaha Sl. No Particulars Rate At current prices During SGSY Amount (Rs) Total Amount (Rs) Amount (Rs) Income 1 Sale of A-grade yarn 100 Rs 1,550/kg (Rs 1,475/kg during SGSY) Cocoon peduncles Rough estimate 5 5 and waste cocoon Cost Total Amount (Rs) Average cost of C-grade cocoons 150 Rs 0.80/ cocoon (Rs 0.65/cocoon during SGSY) 2 Cost of transportation 150 Rs 0.04/ cocoon 3 Boiling cost 150 Rs 0.05/ cocoon Net income/day Net income/year (assuming 240 days, part-time engagement) 6,890 9,960 The Case of Tasar Silk in Bihar and Jharkhand 53

56 3.6 YARN MARKETING Yarn was procured by Masuta from the aggregators appointed by it who visited the CFCs every fortnight to grade and procure the material produced. Masuta had established links with traders and export houses in Bhagalpur and other trading centers, where the yarn was sold in bulk. Almost 40% of the yarn was directly procured by EcoTasar for production and marketing of value-added products in the fashion and furnishing markets. Yarn marketing has gone through three distinct phases: i) Phase 1 - Masuta was being incubated by PRADAN as Tasar Development Center 14 (1998 to 2005) ii) Phase 2 - Masuta Producers Company became an independent entity; subsequently, when EcoTasar was established, Khitish Pandya moved out of yarn-marketing to concentrate on the value-added products at EcoTasar (2005 to 2007) iii) Phase 3 - Masuta and EcoTasar started working in tandem; Masuta was wound up due to financial problems ( ) PHASE 1: TASAR DEVELOPMENT CENTER (1998 TO 2005) PRADAN was trying to enter into the yarn market in order to find remunerative prices for tasar yarn produced by the reeling and spinning centers being promoted by it. Its efforts got a significant boost when Khitish Pandya joined the group as a marketing consultant in During the initial years, his efforts were directed towards increasing the sale of yarn in the local market. The progress made in boosting the sale of yarn between 1998 till 2005 when Masuta was established. It happened gradually, explained Khitish. We met all large players in Bhagalpur and introduced our yarn for them to sample. We also took the yarn to non-traditional markets like Gujarat, Tamil Nadu, Uttaranchal and introduced it to silk weavers. This created an additional outreach. What worked most was routing our orders based on our samples to other players in Bhagalpur through people in Delhi and elsewhere to whom we had submitted samples made with our yarn. Khitish soon realized that the handmade yarn produced by the women was suitable for the upholstery market. In an initial experience with Bharat Furnishing showed that it would be very difficult to be profitable in this market competing with the agents from Bhagalpur because the NGO had overheads of 10-15% while the agents had very low overheads. In this product line negotiations were usually based on costing and raw material rather than on design. This experience prompted him to move out of commodity selling to product selling, where design would play a crucial role. This became the winning strategy in later years for EcoTasar. 14 Before the establishment of MASUTA, the entire facilitation for post-cocoon sericulture was done out of PRADAN and the unit was known as TDC. The unit consisted of three professionals. Khtish Pandaya was engaged by PRADAN on a contractual basis for the marketing of both yarn and fabric. He earned a fixed salary but was also eligible for commission from the sales turnover. He was assisted by Arijit Mukherji for fabric production at Bhagalpur and Sankar Chatterji for managing the yarn production. 54 Reel of Fortune Building Inclusive Value Chains

57 However, the initial experiments in producing valueadded products with professional design inputs had begun as early as under the UNDP project PHASE 2: MASUTA PRODUCERS COMPANY ( ) In 2005, Masuta Producers Company Ltd was formed and the business being incubated by PRADAN under its TDC was entirely transferred. From 2005 till September 2007 (when EcoTasar was established), Khitish was associated with Masuta in trying to promote both yarn and fabric in the same capacity as under PRADAN s TDC. At this time it was decided that the fabric division inherited by Masuta from TDC would be hived off as a joint venture between Masuta and Khitish. Thereupon, Khitish handed over the yarn marketing function to the CEO of Masuta in order to help Masuta have independent control and expertise in yarn marketing which was its main business. Masuta Producers Company was owned by 2,900 women reelers and spinners who were organized in 86 groups. It was managed by a professional CEO appointed by PRADAN. At its prime, it was able to sell yarn worth Rs 17 crore produced by its members. In Symbiotec Research Associates along with the team at PRADAN, carried out a market survey of yarn production and consumption to help Masuta understand the yarn market and plan its product mix of yarns better. At that time Masuta reelers and spinners were producing 11 types of yarn. This is shown in detail below: Table 3.19: Types of Yarn Produced by Masuta Sl. No Category of Yarn Code Yarn Name 1 Reeled RHB Reeled Hi-twist Bleached 2 RHN Reeled Hi-twist Natural 3 RLB Reeled Low-twist Bleached 4 RLN Reeled Low-twist Natural 5 RDN Reeled for Dyeing Natural 6 Spun SCN Spun Charkha Natural 7 SCB Spun Charkha Bleached 8 SMN Spun Motorised Charkha Natural 9 SMB Spun Motorised Charkha Bleached 10 SMS Spun Motorized Charkha Semi-bleached 11 SWN Spun Waste Natural The Case of Tasar Silk in Bihar and Jharkhand 55

58 Of these types of yarn, some were selling well while others were not. Different types of yarn were selling well in different weaving clusters. The quality of yarn produced by PRADAN-supported reelers and spinners was said to be unsuitable for use in power looms that were ruling the market in the production of silk fabrics. The study tried to generate feedback from the weavers and identify the yarn that had a competitive edge in the market. Twenty-six clusters from Bihar, Chhattisgarh, Odisha, West Bengal, Maharashtra, Uttar Pradesh, Karnataka and Delhi were selected for the market survey. The survey showed that 15 of these clusters were significantly large and collectively amounted to a total consumption of 1,302 tons/ annum. Refer to the table below: Bhagalpur, Raigarh, Champa and Fulia accounted for more than 90% of tasar yarn consumption in the country. Total tasar raw silk produced in the country was 322 MT/annum. Therefore, the total import of tasar raw silk was 980 MT/annum. 75% of tasar yarn consumed in the country came from imports, underlining the importance of imported yarn in the tasar silk market. The study showed that the main tasar yarn imported was Korea, a denier yarn imported from China. This was estimated at 80% of total tasar yarn imports. Thus, the total Korea yarn imported into India was about 780 MT/annum. The remaining 20% of the imported yarn was chiefly in the form of China, a 50+ denier tasar yarn, also imported from China. Table 3.20: Yarn Consumption in Important Weaving Clusters Sl. No Cluster Kg/Year % Share 1 Bhagalpur (Bihar) 4,50, Champa (Chhattisgarh) 3,25, Raigarh (Chhattisgarh) 2,50, Fulia (West Bengal) 1,50, Gopalpur, Fakirpur (Odisha) 45, Bhandara (Maharastra) 15, Varanasi (Uttar Pradesh) 12, Sonamukhi, Bishnupur (West Bengal) 12, Nawadah (Bihar) 8, Nalanda ( Bihar) 8, Nuwapatna (Odisha) 8, Raghunathpur (West Bengal) 8, Tantipara (West Bengal) 5, Gaya (Bihar) 2, Barpali (Odisha) 2, Total 1,3,02, Reel of Fortune Building Inclusive Value Chains

59 Tasar yarns from India form only 25% of total tasar yarn consumed in the country. Of this ghicha is the most important one and about 60% of all Indian tasar is ghicha. It is used mainly in yardage, scarves and stoles. About 25% of Indian tasar is desi tasar or khewa. About 15% is accounted for by katia, which is used in yardage and sarees as well as furnishings. The major tasar yarns that are used in India are Korea, China, Ghicha, khewa (thigh-reeled desi tasar) and katia. Korea and China are mainly used as warp and together account for 75% of all tasar yarn consumed in India. Table 3.19 provides approximate market sizes for each of these yarns: Interestingly, all the Masuta-reeled yarns were first compared with Korea. This was because both are reeled yarn. There is no handspun yarn in the tasar category produced by China. With Korea taking over the warp market, supply of Indian tasar was gradually getting limited to yarn for weft. This can be seen below: The most preferred yarn in the market from Masuta s stable were: 1 Reeled Hi-twist Natural 2 Reeled for Dyeing Natural 3 Reeled Hi-twist Bleached 4 Spun Motorized Charkha Natural 5 Spun Charkha Natural 6 Spun Motorized Charkha Bleached Table 3.21: Estimated Market Share of Different Types of Yarn Yarn Tons/year % to total Source Korea Other imports Import 75 % Ghicha Desi tasar Local 25 % Katia Total Table 3.22: Existing Yarn Combinations for Different Categories of Products Product Shirting Usually in natural colors Scarves, stoles, dupattas Usually dyed and/or woven in patterns Furnishing Sarees Yarn Combination Tasar Reeled X Tasar Reeled; Tasar Reeled X Mulberry Reeled; Tasar Reeled X Ghicha; Tasar Reeled X Katia; Tasar Reeled X Balkal (Peduncle silk); Tasar Reeled X Cotton (Bafta) Tasar Reeled x Tasar Reeled Katia x Katia Tasar Reeled x Katia Jhuri x Jhuri Reeled Tasar x Noil or Spun Silk Yarn; Reeled Tasar x Ghicha; Reeled Tasar x Ghicha + Noil Cotton x Ghicha & Noil Spun Silk x Ghicha & Noil Jhuri x Jhuri Cotton x Jhuri (Double cloth) Tasar Reeled x Tasar Reeled Tasar Reeled x Katia Can with Plain Tasar Reeled x Ghicha design, embroidery, woven on jacquard, tie & dye of yarn, etc. The Case of Tasar Silk in Bihar and Jharkhand 57

60 Table 3.23: Recommended Positioning of Masuta Yarns in the Market Key yarn Market size (tpa) Masuta Yarns Korea RHB, RLB, RDN Ghicha SCN, SMN Desi tasar RLN, RHN Katia SMN The types of yarns that had the best potential to compete with established yarns in the market were also identified as shown above: Many of those interviewed said that weavers preferred Korea yarn because it offered convenience in use and was easily available. However, they also felt that in terms of quality of the product and its look and feel, Korea yarn was clearly inferior to Indian-reeled yarns. Thus, the ideal choice of the market is a yarn that combines Korea convenience and cost and Indian tasar look and feel. The study helped in identifying the strengths and weaknesses of each yarn that Masuta had to offer. It further spelt out a strategy to make a better impact in the market. Masuta s USP should be to produce quality Indian tasar yarn that offers a comprehensive range in terms of color, shade and texture. Currently, no single supplier offers such a large and complete range of tasar yarn. Due to failures in proper working capital management as well as procurement, Masuta started facing financial problems. It further made the mistake of taking high interest loans from commercial banks, thereby landing in a debt trap from which was difficult to recoup PHASE 3: MASUTA PRODUCERS COMPANY ( ) This phase marked the downward spiral of Masuta Producers Company which was accompanied by a downward trend in yarn marketing. Over a period of time both the quantity and quality of yarn being supplied by Masuta started deteriorating. During those period MASUTA directly started supplying yarn to many of the institutional buyers in the country other than Eco-tasar thus supply to Ecotasar dropped. Entry of institutional buyers helped MASUTA to enhance the price of yarn gradually. During that period MASUTA was only bulk supplier of Machine made yarn. The table below shows the drop in supply of tasar yarn to EcoTasar 2008 onwards. The total amount of yarn supplied dropped almost eight-fold, from 3,929 kg in to 524 kg in , over a period of five years, compelling Eco-Tasar to look out for alternative types of yarn to keep its business afloat. Table 3.24: Drop in Supply of Tasar Yarn by Masuta over the Past Five Years to Eco-tasar Sl. No Year Tasar reeled yarn (kg) Tasar spun yarn (kg) Total tasar yarn supplied (kg) , , , , , , , Reel of Fortune Building Inclusive Value Chains

61 Tasar silk yarn made by reelers under the project fetched a price of about Rs 3,800/kg. However, to fetch this price, it had to meet certain quality specifications. One of the important criteria is the denier of the thread which should be less than 100 counts. Of late, the reeling centers managed by Masuta had started supplying heavy thread higher denier by some of the centers. This happened because reelers were paid on the basis of weight without checking the denier of fiber. Supply of such yarn resulted in heavier sarees, almost doubling their weight and making them unacceptable in the market. EcoTasar did give this feedback to Masuta, but the producers company failed to make the process-level changes required to ensure supply of yarn with the proper quality specifications. In the years following the SGSY projects, marketing of yarn has emerged as a major challenge. CSB supported this shift in product development as the yarn produced by reelers was of finer quality. It was a big challenge to get into the fashion apparel market because buyers frequented different saree shops according to their taste. Besides, the yarn produced by PRADAN-supported reeling centers was somewhat different from that available in the market. Hence, special efforts were needed to make them acceptable to the weavers; Eco Tasar introduced a new product-dyed Tasar Yarn in the market which required extra efforts of unwinding and reeling it in bobbins by a trained cadre of women which gave the fabric a novel look. Developing new products using blends of different yarns in combination with new designs became the hallmark of the company. This strategy worked well for it as it grew and started entering the export market as well. 3.7 FINISHED PRODUCTS PRODUCTION AND MARKETING Since 2007, PRADAN and Masuta decided to move further up the value chain by promoting a new private company to produce value added products and market them. This was the inception of EcoTasar Silk Pvt. Ltd (EcoTasar for short) a joint-stock company promoted by Masuta and an experienced social entrepreneur.. The Company s Mission To create wage opportunities for a large number of producers of handmade yarn, handloom weavers and other producers in the textile value chain through a sustainable and fair business model. Unlike other textiles, tasar silk fabric is largely produced in the handloom sector. Bhagalpur- Bihar, is a major center for tasar weaving by traditional weavers. EcoTasar decided to work closely with selected groups of weavers and outsource the production of fabric. Subsequent developments on the production front (in ) with reeling machines introduced by KEY ACCOMPLISHMENTS In the period EcoTasar turnover has increased by 4 times from Rs million to Rs million while profits after tax have gone up from Rs 0.50 m to Rs m (shown in Figure 3.3). In India there are 137 clients which include individual retail stores as well as chains like FabIndia, Partha s, Chennai Silks and Nalli s, who have centralized purchase. These are geographically concentrated in major cities in West (Ahmedabad, Vadodara, Surat, Mumbai and Pune) and South India (Chennai, Ooty and all over Kerala) as well as Srinagar, Chandigarh, Delhi, Jaipur and Udaipur in the north. Societal Recognition: EcoTasar received the Samriddhi Award for social enterprise from Sankalp Forum in 2011 in recognition for its work in providing and promoting livelihoods among women through its work and an award for being the fastest-growing vendor from among 600 vendors who supply to William Sonoma at the Vendor Appreciation Event organized in The Case of Tasar Silk in Bihar and Jharkhand 59

62 Figure 3.3: Growth of Income and PAT over the Past Six Years BUILDING A PROFESSIONAL ORGANIZATION The company was started with a total share capital of about Rs 20 lakh of which about 76% was contributed by Masuta Producers Company and remaining by the social entrepreneur. A total of Rs 1.43 crore 15 was invested by Masuta in the company, of which 10% was capitalized and the balance of Rs 1.28 crore was taken as a loan at an interest of 15% per annum from Masuta. In 2014, the entire loan was repaid with Masuta s investment currently at 26%. EcoTasar has dedicated team of experienced professionals- a production team at Bhagalpur and a marketing & stitching team based in New Delhi. The design, accounts and administrative teams were housed at the main office, along with the marketing teams INNOVATION AND NEW PRODUCT DEVELOPMENT EcoTasar has been constantly innovating with new raw materials and new designs to create a range of new products in particular sarees, the company has established an in-house design department with three professionally trained designers Customer feedback plays an important role in continuously generating new designs by making modifications in the existing designs. New Product Development: Initially Yarn was the main product and the entire business was built around it Furnishings and stole markets were explored and later different combinations of yarns ( Like Eri, mulberry, cotton etc) were blended with Tasar to give a softer feel which was the need of the overseas market. This further lead to the new product line like Sarees. Apart from the Bhagalpuri patterns, Jamdani designs of Fulia, Banarasi style in Uttar Pradesh and Pochampali style of weaving in Andhra Pradesh were explored and tried out. Second Look at the Furnishings Market To fulfill the large overseas order from US based company EcoTasar acquired a stitching unit in Noida with 28 staff. This has since been registered as a separate company called Eco-Stitch in Even the US client started buying more and more from EcoTasar. The purchases from this company alone now comprise about 60% of the business B Masuta had an equity capital of Rs 2.5 crores, contributed largely by support agencies such as CSB and Rabo Bank with token contribution of Rs. 8,620 by 2,900 didis (women) comprising 86 producers group. 16 It may be noted that the main stream market still does not accept the kind of production variation found in handloom products. Hence it would not be easy to broad-base the clientele in this product category. 60 Reel of Fortune Building Inclusive Value Chains

63 Product Sales Qty Sale Value-Rs Pillow cover 1,73,690 10,26,39,996 Throws 6,908 1,09,41,611 Stole 18,487 1,18,81,467 Saree 1,892 96,96,222 Scarf 7,099 30,62,542 Dupatta 2,704 28,15,838 Ties 778 1,20,105 Fabric ,65,690 Yarn 284 kg 6,33,964 Total 15,64,81,398 *Except where stated, figures represent numbers of items produced To minimize the risk of depending on only one major buyer, EcoTasar has started developing smaller clients with annual purchases between Rs 0.7 crore and Rs 1 crore. The company has started going to trade fairs and promoting its brand as well as its products. While the company experiments with new fabric and designs as required by the client in the US, it continues to work with handmade fibers, in keeping with its founding spirit. Product Profile: Gradually the product profile grew to include a range of fashion apparel such as scarves, stoles and sarees on the one hand, and furnishing such as cushion covers and throws, on the other. Sarees were restricted to the domestic market while the rest of the products also found their way into the export market. Table shows the details of the principal products and sale value for MARKETING STRATEGY The silk market in India (figures for ) is dominated by mulberry silk (19,476 tons/ annum) followed by eri silk (4,237 tons/annum). In comparison, only 2,619 tons/annum of tasar silk is produced in India (CSB, 2014).However, the tasar silk market is much larger because about 1,000 tons/annum are imported mostly from China. In the overall market, the presence of yarn initiated by PRADAN is minuscule. It is for this reason that the company adopted a strategy of direct selling to shop keepers and retailers, both in the domestic as well as the export markets. Market Segmentation The study carried out by Symbiotic Research Associates (2008) for PRADAN and Masuta had looked at the existing market segments not only in yarn but also in the finished products. The study found that the market segmentation for finished products was as follows: From the view point of profitability of the primary producers, the reeled yarn yields more revenue. Hence, reeled yarn should be promoted more, for which the domestic fashion market segment needs to developed and exploited. Most of the yarn imported from China is reeled yarn, which goes into the making of fashion apparel and which is predominantly for the Indian market. The Case of Tasar Silk in Bihar and Jharkhand 61

64 Figure 3.4: Market Segmentation for Finished Products Tasar silk products Indian market Tasar is product of preference to a select few Tasar silk look and feel are very important Export market Cost and tasar look are very important Tasar yarn itself need not be Indian Traditional products Sarees Dhoties Kurta Pagri This is a declining market in view of changing tastes of buyers Modern products Mass market Niche market Dress materials Tops Scarves Designer sarees This is a small but growing market. Cost is still a consideration since competition is from other natural fibres such as mulberry silk and cotton and from artificial fibres such as rayon and polyester Dress materials Tops Scarves Stoles Driven by volumes and design parameters approved by buyer. Cost is the primary consideration followed by look A lot of experimentation to reduce cost by using artificial fibres to substitute tasar yarns, while retaining the tasar look. Designer products that are mainly driven by adherence to design and quality. Usually command a price premium The marketing strategy is for the entrepreneur as well as the sales staff to keep in regular touch with clients through periodic visits. Sometimes, clients also visit when they are in Delhi to take a quick look at the stock available, and place orders based on their own assessment of the look and feel that their customers would like. The shopkeepers prefer to purchase from EcoTasar for the following reasons: i) Wide range of designs ii) Timely supply of goods iii) Fixed rates iv) Consistent quality v) Returns Policy, under which the company offers to take back those pieces that the retailer does not like Pricing Policy Given the highly diversified nature of its products, EcoTasar has adopted a policy of cost-plus pricing, where 65% of the terminal price is the cost and the remaining is shared between profits (20%) and overhead (15%). Promotion The company uses the following for promotion of its products- y Websites, online purchase y Dedicated merchandisers for export marketing y Certification labels: Fairtrade, Silkmark, ECO, Heimtex & Craftmark y Participating in New York Gift Fair once a year y Organised Silks of Bihar for Bihar State Small Industries Corporation of India in April Reel of Fortune Building Inclusive Value Chains

65 Quality Control Norms for Quality Control EcoTasar follows stringent norms for quality control. These are the various steps where checks are in place: Production cycle: Purchase of yarn; matching of color, shade and checking fastness of color in the dyeing process Post-production: Checking variations in weight/ size/design; detecting weaving flaws such as loose threads, gaps, etc. Stitching: Fabric check for size conformity, print quality, loose threads, loose buttons, etc. Future Plans The company aspires to increase its sales turnover to Rs 250 million by end of 2015 and to Rs 1,000 million by In its role of supporting livelihoods of the poor, it will ensure that 30% of its top-line goes to rural and artisanal producers by way of wages, remuneration for their services and for their produce. The Case of Tasar Silk in Bihar and Jharkhand 63

66 64 Reel of Fortune Building Inclusive Value Chains

67 4 INSTITUTIONAL ARRANGEMENTS & PARTNERSHIPS 4.1 P3 PARTNERSHIP IN THE VALUE CHAIN The SGSY intervention was made possible through a vibrant public-private-people s (P3) partnership. However, before the partnership could take full shape, new institutions had to be created to fill up gaps. The purpose of these institutions was not only to aggregate produce but also to build the capacity of the people and foster leaders. CSB also created new institutions to participate in the seed value chain and meet the growing demand for the supply of quality seed material. As far back as the mid-seventies, researchers in the field of organizational behavior had examined the conditions required for forging successful partnerships. The study by Benson (1975) 17 provided four conditions as being critical for success which are still relevant: a) Ideological consensus: This refers to the value system and work culture of the different partner organizations. Organizations with vastly different work cultures could also enter into partnerships, provided they found a common purpose and agreed on the means to achieve the goal. b) Domain consensus: This shows the extent of agreement between partners about who would be responsible for which parts of the project/ program. The greater the role clarity, the less likelihood of conflicts taking place during the process of implementation. c) Administrative consensus: This refers to the administrative norms and procedures that partners agreed upon to carry out common tasks and coordinate the action at the field level. d) Mutual acceptance: This refers to the recognition/ acknowledgment of the partners strengths and positive evaluation of each other. 4.2 IDEOLOGICAL CONSENSUS It is quite a challenging task for a government institution to forge a partnership with a civil society institution and even more so with a peoples institution. This is because of vast differences in value systems and work cultures as well as power distribution. In the case of the tasar value chain, CSB and PRADAN were drawn together by a common agenda. Both wanted the sector to grow with a focus on the betterment of tribal welfare through improved and assured livelihoods. The strong commitment to this common mission served as the binding force between the partners and compelled them to put 17 Benson K (1975), Inter-organisational network as a political economy. Administrative Science Quarterly, 20(2) June, pgs The Case of Tasar Silk in Bihar and Jharkhand 65

68 aside differences and arrive at a consensus on roles (domains) and administrative procedures for working together. The initial partnership during the UNDP project phase enabled the partners to further understand each other, their work cultures and systems, as well as their strengths and weaknesses. Hence the MoT and MoRD had confidence in this partnership, which brought to the table not only the scientific knowledge and vigor of CSB but also the active participation of the people through the capacity building efforts of PRADAN. Hence these government departments also joined the partnership by providing financial support for scaling up the intervention in the Jharkhand and Bihar during the SGSY phase and subsequently, to other tribal states during the MKSP phase. 4.3 DOMAIN CONSENSUS The specific roles of different institutions emerged gradually as the intervention evolved and grew through trial and error. These roles as understood from interviews with various stakeholders and statements in various project documents and internal reports are summarized in the table below. As is clear from the table, the value chain is largely being implemented by various types of peoples institutions except for the last phase of production and marketing of finished products which is handled by a social business in which the people also have a stake, along with the social entrepreneur. The peoples institutions are facilitated by PRADAN while the technical inputs and supply of quality seed material is taken care of by CSB and allied institutions and PRADAN. Table 4.1: Role of Different Institutions Participating in the Tasar Value Chain Node of value chain Seed Production Elite seed production Nucleus seed production Basic seed production Commercial seed Cocoon Farming Raising private plantations Participating institution Specific role(s) Facilitation by whom Basic Tasar Silkworm Seed Organisation (BTSSO) Initially Basic Seed Multiplication and Training Center (BSM&TC); now also done by Basic Seed Production Unit (BSPU) run by farmers cooperatives As above Private grainage entrepreneur at village level, under the Tasar Vikas Samiti (TVS) Individual producers under TVS Production and supply of elite seed to other organizations for multiplication Production of nucleus seed from the elite seed provided Production of basic seed from the nucleus seed cocoons produced by itself Production of commercial seed from the basic seed provided by the cooperative or BSM&TC To raise plantations of host plants on private underutilized land CSB CSB and PRADAN As above PRADAN PRADAN 66 Reel of Fortune Building Inclusive Value Chains

69 Node of value chain Protection of forests with host plants Cocoon production Post-Cocoon Processing Procurement and storage of cocoons Reeling and spinning Marketing of yarn Participating institution Specific role(s) Facilitation by whom TVS To protect the forests with high density of PRADAN host trees so that these could be used for rearing silkworms Individual rearers under TVS (mostly in tribal areas) Masuta Producers company Women reelers and spinners under Mutual Benefit Trusts organized at the village cluster level (mostly in non-tribal areas) Masuta Producers company Finished Products Production and Marketing Processing into finished products Production unit of EcoTasar at Bhagalpur Production of cocoons from Disease Free Layings (DFLs) provided by grainage entrepreneurs, on private plantation of host plants or in clumps of host plants in the forest; TVS facilitates diffusion of knowledge and techniques for scientific production and protection of silkworms during rearing. It also facilitates estimate of demand and supply of seeds during the season. Procurement of cocoons through an aggregation process with the help of TVS; Stifling and sun-drying of cocoons at the godowns before sorting, packing and storing; Supply of quality cocoons at reasonable price to groups of reelers and spinners as per demand. Production of yarn from the cocoons supplied to the women in a common facilitation center in the case of reeling and individually in the case of spinning; Supply/marketing of yarn produced through an aggregation process under MBTs. Procurement of yarn from MBTs and marketing it either in the local market or to EcoTasar Pvt. Ltd for further processing into finished products. Production of finished products as per the design provided by head-office in New Delhi, through a process of outsourcing. The main processes outsourced are dyeing, weaving and finishing which includes mending, clipping, calendaring, ironing, labelling, packaging and shipping. PRADAN facilitates, while CSB & PRADAN together provide technical training PRADAN PRADAN facilitates, CSB & PRADAN jointly provides technical training PRADAN PRADAN Marketing of finished products EcoTasar Pvt. Ltd, New Delhi Marketing of finished products in the domestic as well as exports markets; Developing new products through blending of different fibers with Indian tasar and development of new designs as per the requirements of the markets. PRADAN The Case of Tasar Silk in Bihar and Jharkhand 67

70 4.4 ADMINISTRATIVE CONSENSUS Extensive consultations among the partners resulted in a written statement of the implementation modalities to be adopted under the Special SGSY projects. The following figure shows the implementation structure as well as the coordinating and reporting mechanisms adopted in the projects. The figure shows the flow of funds and reporting lines for implementing the Special SGSY projects. It also clarifies the key roles played by CSB and PRADAN in facilitating the creation of peoples institutions and in building their technical and human capacities for self-management. Training: It was agreed by the partners that major training events would be conducted jointly by the CSB and PRADAN. PRADAN also actively participated in training at the doorstep of the swarojgaris. Monitoring: The Director, CTR&TI, Ranchi, was made the Project Leader (Pre-cocoon) and Chairman, Project Monitoring Committee (PMC). A senior officer working at CTR&TI was nominated as Project Officer (Pre-cocoon) and Member Convener of the PMC. Officers-in-charge of CTR&TI s field units such as the Regional Tasar Research Station, Dumka, and the Research Extension Centre Hatgamaria were to serve as Nodal Officers (Pre-cocoon) who would provide the requisite technological and technical support to the implementing agency. The project had established two committees for coordinating and monitoring progress: a) Project Monitoring Committee: The members consisted of representatives of CSB, PRADAN, the state government and peoples institutions. The committee met on a quarterly basis to review the progress of the project, based on a quarterly report submitted by PRADAN. The concern nodal officers also visit the field prior to the meeting and appraise chairperson of PMC. The Mid-course corrections were also discussed and proposed to PMB for approval. b) Project Management Board: This consisted of senior representatives of MoRD, CSB, PRADAN and the state. It met once a year to review the overall program, its policies and collaborative arrangements. Any significant changes proposed by the PMC were approved at this meeting. The project coordinator from CSB was expected to make a field visit prior to the meeting to assess the overall progress Figure 4.1: Institutional Arrangements for Coordinating Implementation 68 Reel of Fortune Building Inclusive Value Chains

71 of the project. PRADAN presented the annual work plans which were also approved after discussion. Committee to monitor seed quality: CSB constituted a special committee to assess the disease percentage in seed cocoons so that timely action could be taken to control the quality of seed and make it disease free. The members comprised representatives from CTR&TI, BTSSO, DoS and PRADAN. Specific responsibilities were given to different stakeholder institutions for continually monitoring progress: Monitoring of seed crop: BTSSO was responsible for monitoring and supervising the overall seed requirement and for providing technical inputs. Its officials visited the field every month to ensure the supply of quality seed material in the quantities required by cocoon raisers. Monitoring adoption of technology: CTR&TI was responsible for technology adoption by seed and cocoon producers. Scientists from CTR&TI visited the field every quarter to assess the extent of adoption and to provide technology-related inputs to producers. Monitoring implementation of pre-cocoon activities: The TVS organized monthly review meetings to assess the status of pre-cocoon activities under their domain. Monitoring implementation of post-cocoon activities: Each MBT implemented its plans with the help of paid managers. 4.5 MUTUAL ACCEPTANCE There exists a high level of mutual acceptance between government departments and CSB on the one hand, and PRADAN and the peoples institutions on the other. Both PRADAN and CSB are part of the highest level committees for planning and implementing the projects given to them by the government. The mutual understanding and appreciation showed by the leaders of the projects from both CSB and PRADAN may be a key factor in making the partnership work. This mutual understanding however was not always forthcoming as sometimes the different work cultures between the two agencies clashed. At these times the leadership of project leaders from both the organizations played a major role in creating greater understanding.

72

73 5 VALUE CHAIN ANALYSIS A value chain is a supply chain with a difference. It brings value to the final consumer and competitive advantage to the producer through strategic alliances. It is a vertical alliance (or strategic network) of enterprises collaborating to achieve a more rewarding position in the market (Agriculture and Food Council, Alberta, 2002). Hence in a supply chain, power equations are often skewed and the more powerful players tend to dictate terms, often exploiting others at the lower end of the chain. In a value chain, the power equations are expected to be more balanced. Farmers and primary producers being better organized are often able to negotiate terms on an equal footing. Common values tend to promote collaboration and mutual support between members of the chain. Transparency is important for the chain to function well. Information is shared across the value chain. Farmers and rural producers have a fair idea about the needs of the end users and try to adopt production to their specific needs. Sometimes endto-end communication between producers and consumers is organized. While a supply chain is just a default arrangement among business organizations who are concerned only about their own margins, in the case of a pro-poor value chain, it is normal to ask where the poor are located in the chain and to identify opportunities for their further participation and enhancement. A pro-poor value chain can be described as a market-based intervention that looks at the entire value chain as an opportunity to generate livelihoods for the poor while creating value that is, increasing the overall productivity and delivering quality products and services to the enduser or customer. (Pastakia, 2011). 5.1 VALUE CHAIN MAPPING A value chain map is useful in understanding the relationship between different players in a subsector and includes existing supply chains alongside the new value chain that has been created. The study by Manu Sinha (2009) had first provided such a map of the tasar subsector. In Figure 5.1 we provide a slightly modified version of it. 5.2 LIVELIHOODS SUPPORTED BY ECOTASAR Table 5.1 shows the material balance calculations working upwards in the value chain from 1 unit grainage. Hence, 1 grainage results in the production of 4,340 meters of cloth. Table 5.2 uses the same figure to estimate person-months and person-years of employment generated at different nodes of the value chain. Based on this calculation it is estimated that 100 meters of tasar fabric can generate 4.27 person-months of employment. Within this, the bigger share goes to the reeler (55.67%) followed The Case of Tasar Silk in Bihar and Jharkhand 71

74 Figure 5.1: The Tasar Silk Value Chain by the weaver (23.30%). The tribal producers who look after grainage and cocoon rearing together get a share of 21% through self-employment. Since cocoon raising and grainage are seasonal activities while reeling and weaving are non-seasonal but dependent on availability of raw materials, the above proportion seems appropriate. However, the actual quantity of employment generated would also depend on the number of players that are involved. Though cocoon production has a short production cycle, a much larger base of people are - dependent on it for their livelihoods, as shown in Table 5.3. Table 5.1: Material Balance S. No. Node of value chain Conversion of material 1 1 grainage 4,000 DFLs (enough for 20 rearers) 2 20 rearers 4000 DFLs 280,000 cocoons reelers 280,000 cocoons 220 kg yarn weavers 220 kg yarn 4,340 meters of cloth 18 The value of cloth depends upon among other things the blending of yarn, the complication of design and colour, the durability, look and feel of the cloth etc. Hence there would be a large variation on the value of cloth produced, but here we are taking an average value. 72 Reel of Fortune Building Inclusive Value Chains

75 Table 5.2: Estimate of Livelihoods Supported by 100 meters of Tasar Fabric S. No. Node of value chain Requirement for 4,340 meters Estimated Person-months for 4,340 meters Person months for 100 meters Percentage share 1 Grainage entrepreneurs 9m x 1 grainage owner Cocoon producers 1.5 m x 20 rearers Yarn producers (reelers) 12 m x 8.6 reelers Fabric producers (weavers) 12 m x 3.6 weavers Total (person months) Table 5.3: Primary Producers Participating in the Value Chain S. No. Primary Producers Jharkhand Till 2007 Bihar Till 2013 Total under SGSY Table 5.4: Estimate of Self-Employment Generated through intervention in post cocoon (Person-Days) Year Total fabric produced and sold (meters) 1,14,881 2,23,924 4,25,235 S. No. 1 Grainage entrepreneurs Cocoon producers 4,656 1,960 6,616 3 Yarn producers (reelers) Yarn producers (spinners) Fabric producers (weavers) From the percentage share derived in the table above, it is possible to estimate the person-days generated each year from the average cloth 18 produced and marketed by EcoTasar (Table 5.4). Another assumption here is that all the yarn used is reeled yarn. Hence the estimates only help to get a rough idea of the pattern of employment being generated across various nodes of the value chain. Node of value chain Person months /100m fabric produced Person months generated ( ) Person months generated ( ) Person months generated ( ) 1 Grainage entrepreneurs Cocoon producers , , Yarn producers (reelers) , , , Fabric producers (weavers) , , , Total , , , Total employment in person-days 147, , ,854 It should be noted that the actual employment generated through the PRADAN-CSB intervention would be much larger (more than twice) since more than 60 percent of the yarn produced by Masuta was sold in the open market and did not go to EcoTasar for value addition. The Case of Tasar Silk in Bihar and Jharkhand 73

76 5.3 PRICE SPREAD ANALYSIS Although EcoTasar has about half a dozen product lines that are stable (see Table 5.5) due to the high diversity of yarn, design and combination, almost each unit is unique. This is compatible with buyer behavior. As a result of such product differentiation, there is high price variability within each product category. It is therefore difficult to carry out an accurate price spread analysis. The table shows that as of , the five most important product categories in terms of volume of sales are pillow covers, fabrics, throws, stoles and sarees. An attempt has been made to take a particular item from each product category and carry out a price spread analysis. This gives a flavor of the general trend of price spreads within the value chain. Since EcoTasar offers only a wholesale price, the terminal price depends on where the product is sold and by whom. Here again there is a lot of variation. To capture this variation we have tried to calculate the price spread separately for different categories of retailers. Price Spread Analysis of Sarees: The price and costing data at Eco-Tasar for Design 4D is provided in Table 5.6. Since sarees are sold only in the domestic market there are two categories of retailers: large multi-state retailers like FabIndia and small retailers. The price difference between the two in this case is Rs 1,000. The material balance data calculations are possible only till the commodity stage i.e. till the fabric stage (Table 5.7). This analysis is used to calculate the price spread from yarn to seed stage. For the remaining stages information is provided by EcoTasar as it has been outsourcing most of the steps in product development from fabric-making onward. The price spread analysis for saree design 4D is shown in Table 5.8 below. The calculations are done separately for a) small retail price and b) FabIndia price. Table 5.5: Sales Value of Stable Product Categories Particulars Units Quantity Value (in Lakh) Quantity Value (in Lakh) Scarf pcs 7, , Stoles pcs 18, , Dupatta/Throws pcs 9, , Sarees pcs 1, , Pillow Cover pcs 173,520 1, , Fabrics meter 158, , Duvet sets 2, Miscellaneous items , , Reel of Fortune Building Inclusive Value Chains

77 Table 5.6: Costing and Pricing Data of Saree 4D Saree Design 4D (6.75 m long by 46 wide) Item Costing Data Quantity Rate Amount (Rs) Warp Chinese33-37D Tasar yarn (in kg) , Weft desi Tasar reeled yarn (in kg) ,400 1,275 Weaving charges per meter Tassel-making Dyeing, etc Finishing, factory 7.5% 163 Sales and administrative 7.5% 163 Cost price 2, Profit to eco-tasar EcoTasar wholesale price 3,000 Pricing Data Table 5.7: Material Balance Calculations from Seed to Fabric Sales price at FabIndia 5,800 Sales price at most other stores 4,800 S. No. Node of value chain Conversion of material Price of material (Rs) Value of material (Rs) 1 1 grainage 4,000 DFLs (enough for 20 6/DFL 24,000 rearers) 2 20 rearers 4,000 DFLs 280,000 cocoons 2.00/cocoon 5,60, reelers 280, kg yarn 3,800/kg 8,36,000 cocoons weavers 220 kg yarn 4,340 meters of cloth 220.9/meters 9,54,800 Table 5.8: Price Spread Analysis for Saree (Design 4D) S. No. Node Small Retailer FabIndia Price realized (Rs) Component of Terminal Price (Rs) Share of Terminal Price (%) Price realized (Rs) Component of Terminal Price (Rs) Share of Terminal Price (%) 1 Retailer 4,800 1, ,800 2, EcoTasar 3, , Fabric 2, , Tasar Yarn 1, , Chinese yarn (warp) 6 Cocoon 1,206 1, , Seed The Case of Tasar Silk in Bihar and Jharkhand 75

78 Some inferences that can be made from this data: i) The retailer has the highest share in this value chain and a large retailer with its own brand equity can command an even larger price one that is almost equal to the prices spread over the rest of the value chain. ii) Cocoon rearers who are mainly tribal receive approximately percent of the share of the terminal price. iii) Yarn-makers have a very insignificant share of the terminal price at less than 1.5 percent. This may be one reason why traditionally yarn making was integrated within the family of weavers. iv) Weavers control a significant share of the price spread at about 15 percent. v) There is significant scope for improving the share of primary producers and EcoTasar by making an entry into retailing. vi) However, this additional earning cannot be passed on to primary producers, unless EcoTasar decides to make cocoon and seed producers shareholders in the company. Price Spread Analysis of Stoles: The data on costing and pricing for a stole (design PR 02) is provided in Table 5.9:

79 Table 5.9: Costing and Pricing Data of Stole PR 02 Item Costing Data Stole PR 02 design (200cm X 60 cm) Quantity Rate Amount (Rs) Warp Chinese33-37D Tasar yarn (in kg) , Weft desi Tasar reeled yarn (in kg) , Weaving charges per meter Tassel-making Finishing, factory 7.5% 27 Sales and administrative 7.5% 27 Cost price Profit to eco-tasar 40.8 EcoTasar wholesale price 450 Pricing data Sales price at FabIndia 1,100 Sales price at most other stores 800 in USA/ Europe 4,500 Using a similar calculation, the price spread analysis was derived for small retail stores (domestic), FabIndia and export retail in USA/Europe as shown in Table Some inferences that can be drawn from the above data: i) The margin of the export retailer is twice that of a retailer in India and 90% of the price spread, so that the remaining players in the value chain get to share only 10% of the terminal price. This may appear rather skewed, but actual margins for the retailers in US/UK may not be that high as the cost of exporting would be included within this 90%. There is also the effect of a different currency which is reflected in these calculations. ii) In the case of stoles, it appears that weavers get a slightly higher share as compared to other producers. Even the share of yarnmakers is higher compared to their share in sarees. As a result, the share of cocoon and seed producers seems to be less in proportion. As explained by Mr Khitish Pandya, this is so because the price of the stole vis-à-vis the saree is less than proportionately reduced while the price of the yarn used is significantly reduced and hence the reduction in cocoons, etc. which go into the yarn. 19 Additionally the ratio of desi yarn to Chinese is 1:2 in the case of sarees whereas it is 1:3 for stoles, which means less desi yarn is being used in the case of stoles gms used in over 7.96 sq m, which is 46 gms/sqm while in stole it is 50 gms over 1.2 sqm which works out to gms /sqm i.e. over 10 percent less. The Case of Tasar Silk in Bihar and Jharkhand 77

80 Table 5.10: Price Spread Analysis of Stole (Design PR 02) Node Small Retailer FabIndia Export S. No. Price realized (Rs) Component of Terminal Price (Rs) Share of Terminal Price (%) Price realized (Rs) Component of Terminal Price (Rs) Share of Terminal Price (%) Price realized (Rs) Component of Terminal Price (Rs) Share of Terminal Price (%) 1 Retailer EcoTasar Fabric Tasar Yarn Chinese yarn (warp) Cocoon Seed MARGIN ANALYSIS Based on the economics of production reported by different producers in the value chain, and presented in this section, a summary has been prepared that provides an approximate idea of the net profits realized by them (Table 5.11). The primary producers will tend to compare the net earnings/ day with the opportunity cost of their labor. It should be noted that the opportunity cost per day will vary from village to village depending upon the opportunities available in each village. However, the wages offered under MGNREGS could be considered as the minimum opportunity cost although not every village has been successful in accessing this government scheme and not all have been able to get the full amount due to them. The minimum wages in the two states of Bihar (Rs 162) and Jharkhand (Rs 174) could be taken as a point of comparison. The analysis below shows that the income per day is in general higher for pre-cocoon stages of the value chain but the duration of employment is very short. On the other hand, the reverse is true for post cocoon stages which provide year round employment. Hence post-cocoon, the activity becomes the main and perhaps only livelihood of the person, while in the pre-cocoon stages, the activity is at best a parttime supplementary source of livelihood. Hence, the idea of providing year-round income through other activities like vegetable cultivation as inter-crops in host tree plantation, which has already been pilot tested through the NABARD-TDF project, should be scaled up. Another aspect of comparison is that the direct beneficiaries are all rural and the indirect beneficiaries are all urban. The cost of living is very low in the remote tribal villages where sericulture is practiced and the opportunity cost is also very low or zero. On the other hand in urban areas the opportunity cost is much higher for skilled and semi-skilled workers and the cost of living is also higher. 78 Reel of Fortune Building Inclusive Value Chains

81 Table 5.11: Net Income Earned by Producers in the Value Chain S. No. Node of value chain Net Income (Rs) Direct beneficiaries 1 Nucleus seed rearing (in dedicated plantation) Employment days Income / day (Rs) 37, Basic seed rearing (in forest) 9, Basic seed rearing (in plantation) 15, Commercial seed production (Grainage) 27, Cocoon production (Plantation) 33, Cocoon production (Forest) 21, Cocoon trading 40, Yarn production - reeling 32, (part time) Yarn production - spinning 9, (part time) 41.5 Indirect beneficiaries 10 Fabric production - weaving 48, Fabric production - dyeing 42, Fabric production finishing and mending 42, Finished goods production - stitching 90, Finished goods production hand printing 72, DISTRIBUTION OF POWER IN THE VALUE CHAIN Ashley and Mitchell (2008) identified four main ways in which value chains could benefit the poor (Figure 5.2). While two of these changes help existing poor producers to augment their income, the other two enable new entrants to join the value chain. In the case of the tasar value chain too we have witnessed both these pathways being used. The existing cocoon producers were able to increase their income while reducing production risks, by adopting the new package of practices offered to them. They were also able to diversify into seed rearing and grainage, thereby increasing their income further and allowing young entrepreneurs to join the chain as grainage owners. This could not have happened without training them in new skills. A whole new segment was introduced soon after cocoon production for reeling and spinning by women, operating from the comfort of their homes or common facility centers. Their empowerment followed a logical process of moving from savings and credit to group micro-enterprise. The formation of the Masuta Producers Company was another step in their empowerment. However, the failure of the professionals engaged to manage the affairs of the company indicates that perhaps decisions were taken without the full understanding or approval of the women who owned the company. A system of checks and balances was also perhaps lacking in the company s management. Given the large amount of working capital the company was managing, in hindsight this seems imperative for the success of such a venture. The Case of Tasar Silk in Bihar and Jharkhand 79

82 Figure 5.2: Value Chain Changes that Increase Participation of Poor Increased Upgrade production Organise collectively Existing producers Returns to Poor Participants Move up the value chain Barriers to entry removed New Entrants Unchanged Expansion of whole chain or pro-poor segment Unchanged Number of opportunities for poor participants Increased With the exit of Masuta from the market, the bargaining power of the reelers has been weakened substantially. The interests of the cocoon producers, however, have been safeguarded by PRADAN who have stepped in to buy their produce and set up cocoon banks. An alternative arrangement is yet to be developed for yarn-makers to get integrated again into the value chain. This would have to be accompanied by more efficient machines that can give yarn-makers a higher income. In the past few years, EcoTasar has consolidated its position further in terms of both earnings as well as power in the value chain. When Masuta was unable to provide yarn of the desirable denier and quality, EcoTasar realized that it would have to find alternative sources of raw materials to keep the company afloat. Due to its entrepreneurship and foresight, it steadily improved its performance in the market while becoming less dependent on Masuta. EcoTasar, however, continues to be guided by its original mission and its policies continue to be pro-poor. Masuta continues to have a stake of 35.4 percent in the company, down from 76 percent when the company was set up in The company was started with a total share capital of about Rs 20 lakh of which about Rs 15.2 lakh was contributed by Masuta Producers Company and Rs 4.8 lakh by Khitish Pandya. Deep Joshi had a nominal shareholding of Rs 500. A total of Rs 1.43 crore 20 was invested by Masuta in the company, of which 0.15 crore was capitalized and the balance of Rs 1.28 crore was taken as a loan on an interest of 15 per cent per annum from Masuta. There was an understanding between Eco tasar and Masuta that as the loan was repaid he could increase his equity in the company. In 2014, the entire loan was repaid. Khitish s investment in the company now stands at Rs lakh while Masuta s investment of Rs 15 lakh remains as such. As such EcoTasar appears to be the strongest link in the value chain (apart from the retailer and exporter) and also capable of pulling out the yarn-makers from their present condition. Ideally the stakes of the primary producers such as cocoon rearers should also be built into the company. This would make them more aware of the far end of the value chain, increase ownership and give them a share of the company s profits. 20 Masuta had an equity capital of Rs 2.5 crores, contributed largely by support agencies such as CSB and Rabo bank with token contribution of Rs. 8,620 by 2,900 didis (women) comprising 86 groups of reelers. 80 Reel of Fortune Building Inclusive Value Chains

83 6 IMPACT ANALYSIS 6.1 IMPACT ON THE SECTOR The combined production of tasar raw silk in Jharkhand and Bihar grew from 80 MT in 2003 to 150 MT in While this is a result of the combined efforts of various state and central government agencies and NGOs involved in the sector, the SGSY project would have made a significant contribution to this growth. Nearly 9,500 families could be intensively supported to adopt improved technologies and given the marketing support to enhance their average annual net incremental income by between Rs 12,000 and Rs 15,000. In 2007, the project contributed over 15 per cent of the national production of raw tasar silk. It also resulted in enhanced supply of a wide variety of tasar yarn (reeled, spun, waste, in a range of thickness, twists and colors), round the year. The significant achievements of the project were: y Increase in the production of tasar raw silk by 50 per cent in the project areas of Jharkhand and Bihar; y Breakthroughs in large-scale production of nucleus and basic seeds through the involvement of communities. This development helped local farmers attain self-reliance in seed supply. y Promotion of a large number of village-based seed production enterprises to fully cater to the needs of over 8,000 rearers. On an average, lakh DFLs were annually prepared by the grainage entrepreneurs. Besides catering to local demands, DFLs were supplied to Madhya Pradesh, Maharashtra and Odisha. y Creation of a cadre of over 300 skilled service providers, capable of delivering different services to the producers; y Establishment of tasar host tree plantations in over 4,000 hectare of privately-owned wastelands offer livelihood opportunities to more than 6,500 families; y Establishment of a large number of yarn production centers, facilitating value addition at the local level. About 1,500 poor rural women took part in yarn processing to earn their livelihoods. y Creation of the Masuta Producers Company to enhance the access of poor producers to fairer markets. In its absence, a number of cocoon banks have been established to purchase cocoons during the season and store them for supply to yarn producers over the year. y Creation of a joint venture company named EcoTasar, dedicated to the production and marketing of value-added tasar fabric through product innovation; The Case of Tasar Silk in Bihar and Jharkhand 81

84 y The design development efforts of EcoTasar in collaboration with NID and NIFT, creating a wide collection of unique designs in tasar to attract the domestic and the global markets and stimulate the traditional weaving industry in Bhagalpur. The initial success of the model attracted large-scale investment in sericulture by government agencies and schemes such as MGNREGS, the Tribal Welfare Scheme in Jharkhand, Mukhya Mantri Tasar Vikas Pariyojna in Bihar, the NABARD-TDF project and now the MKSP- NTFP tasar project. These developments had the cumulative effect of reviving a traditional livelihood of tribal communities that was on the verge of dying out. From a fragile forest-based income activity, tasar sericulture has become a robust livelihood option for rural families with improved technology, efficient service delivery and enhanced price realization for thousands of families in dire need of food and livelihood security. 6.2 IMPACT AT THE GRASSROOTS The economic, social and environmental impacts of the project at the grassroots level are discussed separately below: ECONOMIC IMPACT An impact study was carried out in with a sample size of 3,400 families (Manu Sinha, 2009). The survey showed that the average annual income per family ranged from about Rs 6,500 to Rs 11,500(see Table 6.1). The table shows that the most attractive livelihood was grainage, followed by commercial rearing. Table 6.1: Income of Different Primary Producers in the Value Chain ( ) S. No. Activity No. of families Average income/ family (Rs) Net income (Rs Lakh) 1. Seed rearing 703 6, Grainage , Commercial rearing 4,350 11, Nursery farmer 22 7, Yarn producers: - Experienced - Learner ,841 2, Total 6,373 10, Table 6.2: Income of Different Primary Producers in the Value Chain (2013) S. No. Activity No. of families Net income/ family/yr (Rs) in field visit Rounded off avg income/ family/ year Net income (Rs Million) 1. Seed rearing ASRs ,180 35, Basic seed rearing (in forest) 909 9,675 9, Grainage ,730 25, Commercial rearing 6,616 33,030 30, Yarn producers - reelers 959 Discontinued for the time being Yarn producers - spinners 515 As above - - Total Reel of Fortune Building Inclusive Value Chains

85 Figure 6.1: Utilization of Income in Families Based on estimates of the average income per family and the number of families engaged in various livelihoods, the study estimated that the total income generated across the value chain would be in the order of about Rs 65 million. Since the study was carried out, there has been substantial increase both in the average income earned as well as number of participating families. As seen in Table 6.2, the total income has now gone up to more than Rs 225 million. The increase in income was utilized both for productive purposes, for example, to invest in agriculture, and for consumption, as revealed by a survey of 360 women producers in 2007 (Figure 6.1). Similar trends were observed from the episodic data collected during field visits in the project area. The author also had access to the preliminary findings of a survey of over 20 best practices carried out under the project by PRADAN staff in November- December These were short case studies of selected primary producers covering their lives before and after the intervention SOCIAL IMPACTS Socioeconomic impact Participants of the value chain in recounted how the additional income had played a major role in meeting critical expenses in health, education of children, social expenditure and investment in agriculture. Many young people participating in grainage bought motorbikes. The bike served as an asset to earning a livelihood, provided transport during emergencies, and was a status symbol as well! There were also dramatic instances of economic transformation leading to social status and selfconfidence. In some cases, farmers had leveraged the additional income from sericulture to free mortgaged land, invest in better farm inputs and assets and improve food security. The cases of successful cocoon rearers were assessed to see how the socio-economic condition of their families had changed. The findings from three case studies are summarized in Table 6.3.

86 Box 6.1 Leveraging Income from Sericulture to Free Mortgaged Land Upendra Rai is a resident of Sadalpur village in Saraiyahaat block, Dumka district. He lives with his mother and two brothers. His father passed away a couple of years ago. Since childhood, Upendra had worked as an agricultural laborer in Udit Choudhary s fields. He earned a part of his livelihood from working in a rice mill in Deogarh and on a nearby brick kiln. Upendra always thought that his family was landless until their mother told him, in 2007, after a bumper tasar crop, that their father had mortgaged their land to Choudhary. The tasar crop generated a net profit of Rs 21,000, an amount that was beyond the family s expectations. Upendra and his brothers met Choudhary and got 3 bighas of land released. Upendra added some savings from his rice mill income to buy a pair of bullocks. In 2008, he earned just Rs 12,000 from tasar. Again, he got 2 more bighas of land released. He then took 2 bighas of land on a share-cropping basis from another farmer. He now cultivates rice, potato, wheat and vegetables. It was the cash income from tasar rearing that enabled Upendra s family to move from a position of agricultural labor to landed cultivator. Upendra is now respected amongst his peers for having demonstrated foresight and cultivating cash crops like vegetables. Not all farmers were so lucky. Upendra was tearful as he remembered the late Laldhari s family, which is still in chronic poverty. For another farmer in Dumka, sericulture proved to be a turning point in his life. Mangal Kol of Mahulbana village took up sericulture in His earning from raising saplings in the nursery fetched him an income of Rs 6,000. He had never earned such an amount all at once! Mangal took the lead in his village to raise 65 acres of plantation and protect it from cattle of the neighboring village. In 2006 he took up tasar rearing and made a profit of Rs 23,270. First he repaid Rs 6,000 to the moneylender to free his 1.71 acres of land that had been mortgaged for the past five years. He purchased a pair of bullocks worth Rs 5,500 and also repaid a bank loan of Rs 6,000 that he had taken when his wife fell ill three years ago. Now Mangal is totally free from debt. He vows that he will never leave silkworm rearing whether PRADAN continues with support services or not. Other people in the village soon came to know of his success and have started emulating him. Another farmer, Durgacharan Kembram of Beltikri village of Banka district in Bihar, has also repaid Rs 14,000 to a moneylender to redeem his good quality paddy land. He has bought two milking buffaloes and a pair of bullocks. Source: Abstracted from documentation by Md Shamshad Alam

87 Table 6.3: Socio-economic Impact on Participating Cocoon Producers Before/after Intervention Economic situation Family Assets Social Status/ Relations Case 1 Name Jaalo Yadav Sex Male Affiliation Bhorsar village, District Banka, State Bihar Family Joint family parents, 3 brothers and their families, 3 sisters, 5 children Documented By Sachin Pathania Before Average income Rs 6,000 Food security 5-6 months Migration 5 months to Kolkata After Income from sericulture 2002 Rs 5, Rs 135,000 Food Security total security for 12 months; Uses good seed and agricultural inputs due to which food sufficiency has been achieved; Nutritional security Has added vegetables and pulses to the family diet; Migration - stopped for him, but brothers continue to migrate for better income (pull migration) Less vulnerability in 2012 they were robbed and lost Rs 2.80 lakh in cash; they recovered by deferring the purchase of a tractor. 15 acres, but only 1.5 bigha fertile; One well limited water for drinking and irrigation; most of agriculture rainfed; Animals 10 cows, 5 calves, a pair of bullocks, 8 goats; 500 mahua trees Savings in post office and bank worth Rs 1.70 lakh; Has purchased one bigha of productive land and a water pump; Has bought a house of Rs 4.80 lakhs for one of his sisters; Has upgraded his house from kuccha to pukka; Three of his sisters have got married and he spent Rs 0.80 lakh, Rs 2 lakh and Rs 2.5 lakh on each; Has purchased a motorbike for transport; Can purchase clothes whenever required; All children of the family are now going to school. No one showed any interest in them due to their poverty; Used to be afraid of the police, forest officials and the village headman Along with prosperity, his confidence and social status have gone up; No longer afraid of police, forest officials, etc. Forest officials now come to his house for help whenever faced with any issue; Last year went to Suiya village to orient new farmers for sericulture; He also helps and guides villagers in his own village for on tasar rearing. The Case of Tasar Silk in Bihar and Jharkhand 85

88 Before/after Intervention Economic situation Family Assets Social Status/ Relations Case 2 Name Gormuni Soren Sex Female Affiliation Badgunda village, Chakai block, Jamui district, Bihar Family Husband, mother, two sons, two daughters-in-law, two daughters, one granddaughter Documented by Vijay Kumar and Shuvajit Chakraborty Before Gormuni s father had a money-lending business, but after he died, they lost all their money and mortgaged land; The main income of the family ended and drought further financially weakened them; Husband migrated to nearby cities and Gormuni made plates out of leaves and took on agricultural labor Land - 3 acres of paddy land, 0.5 acres of homestead, 3.5 acres of barren land; Animals 2 buffaloes, 2 bullocks, 8 cows, 7 goats and 5 poultry birds; (had to sell all except one bullock and one buffalo) Socio-economic position was not good; Vulnerable to drought; Husband migrating; Still somehow sent children to school. After Using irrigation tools and the SRI method taught by PRADAN, Gormuni greatly improved her paddy harvest to 4.5 tons, sold 9 quintal of rice for cash; Has food security now for 12 months; Has produced 3 quintals of tomato from 12 decimal homestead land; Cocoon rearing in 2013 generated cash income of Rs 22, acres of barren land now planted with arjuna where nucleus seed crop of tasar is taken; Bought 4 bullocks; Got daughter married with dignity; Still saving to convert house from kuccha to pukka. Overcoming superstition, daughterin-law Nilu Murmu helped in cocoon production in the plantation and they did very well; Due to economic prosperity, gained in confidence and dignity; Although illiterate, Gurmuni is now comfortable with visiting the bank and block-level offices; Her daughter studying in intermediate college; Whole family shares their experience and knowledge with others so that each one can live with dignity 86 Reel of Fortune Building Inclusive Value Chains

89 Before/after Intervention Economic situation Family Assets Social Status/ Relations Case 3 Name Kesho Rai Sex Male Affiliation Dharofata village, Godda District Family Wife, two sons and their families Documented by Sailendra Kumar Chaube Before Used to work as a laborer by the roadside for cutting stones; His two sons migrated to Mumbai and Bengal for labor his elder son in building a construction site and the younger in brick kiln; Food security 6-7 months from agriculture; Had to borrow money from the local moneylender at 10% interest during a crisis and even mortgage the family s land and jewelery. Land- 2.5 bigha paddy land, 2 bigha vadi land and 5 bigha tand land; Home thatched kuccha house After In 2012, after the sericulture project came, Sailendra got involved in raising arjuna saplings for others, earning Rs 50,000 that year; In 2013, earned Rs 81,000 from the nursery and Rs 35,000 from agriculture; In 2014, earned Rs 35,000 from the nursery; Started inter-cropping of vegetables in 4 bigha arjuna plantation and expects Rs 50,000 as income; Started tasar seed rearing as ASR and expects to get Rs 38,000 as profit from it; Food security now for 12 months, sold marketable surplus of quintal paddy per year Two sons stopped migrating to help him Took 3 bighas land on share-cropping basis; Upgraded house from thatched roof to tiled roof; Has procured assets like TV, solar light, motorcycle, 3 bullocks and one cow; Also has a bank account for his savings. Did not have much social standing due to poverty People now listen to him when he speaks; Wife Babita Devi is now a member of the women s SHG. The Case of Tasar Silk in Bihar and Jharkhand 87

90 The main impact can thus be summarized as follows: y Leveraging cash income from sericulture in the forest to recover mortgaged land or procure new land; to procure agricultural assets such as pumps and bullocks; to deepen wells and to purchase better quality farm inputs such as seeds and fertilizers, leading to: Increase in food security from 4-5 months to 12 months Marketable surplus in some cases, generating cash income Reduction in or elimination of migration All this, leading to reduced vulnerability, visible prosperity and improved selfconfidence as well as social status y Very often, increased income was used for family expenses such as performing the wedding of children, or to improve the quality of living by upgrading the house from a thatched to a tiled roof and from a kuccha to a pukka house. y Many young people bought motorbikes that provided transport when needed. y All reported sending their children to school as they saw education as a key to better livelihoods. y Many reported that they had deposited their savings in banks and that this came in handy during emergencies such as illnesses. Gender Impact In the traditional method there were certain taboos against women participating in sericulture in the forest. Perhaps these taboos and social norms had been devised to keep women away from this activity as it was carried out in the forests often in the middle of the night.

91 Given the strong base of women s SHGs created by PRADAN over the past two or three decades, it is relatively easy to introduce them to various activities in the value chain. Nursery making for establishing host plantation, inter-cultivation of vegetable crops within the plantation during the gestation period and raising cocoons are all activities that tribal women enthusiastically take up. For some women, the project activities became an opportunity to develop their leadership skills (see Box 6.2). The incidence of such leadership is likely to increase manifold, since the current MKSP project is designed keeping women at the center of all activity. The failure of professional management at Masuta has meant a major set-back to this process of women s empowerment. However, such ups and downs are a part of the development process. It is expected that once the reeling activity is revived this process will continue with renewed vigor. Box 6.2 Tasar Intervention: Seeding of New Women Leaders Shanti Hansda is a Community Resource Person in Badgunda village of Dulampur, Jamui district, Bihar. As her husband had a job in the State Bank of India, and they had no land, Hansda spent her time in making plates out of leaves and by working as a laborer for excavation work. In 2010 the TDF Wadi project came to their village in the form of a 92-acre arjuna plantation. Although initially other farmers did not trust her as her husband worked in a bank, she gradually gained the confidence of all farmers and began to work as a community service provider. The plantation had a survival rate of 95 per cent. In 2013, when eight farmers started cocoon production, they together produced cocoon worth Rs 1.54 lakh. Soon Shanti began to motivate the women to form a federation of the 28 women SHGs in the cluster. She then initiated a number of events like the Krishi Mela (four events), a Rozgar Mela for NREGA (three events) and an integrated pest management campaign. She did not belong to the village, does not own any land or property or house, but she has earned the true respect of not only Badgunda but also of all in the panchayat and the federation, Jivan Marshal Mahila Sangh, that she helped to initiate. She is now involved in raising her voice against corruption in MGNREGA and PDS schemes of the Government.

92 6.2.3 IMPACT ON THE ENVIRONMENT While some nodes of the value chain have distinctly positive environmental impacts such as the creation of host plantations and protection of forests, others where chemicals and artificial methods of rearing are being used maybe considered eco-unfriendly. A systematic assessment of the environmental impact is yet to be carried out. Some observations regarding the likely environmental impact (either positive or negative) at various nodes of the value chain are provided in Table 6.4 below. These are at best indicative and need to be followed up with a more systematic assessment. The ahimsa silk movement initiated by civil society did not last long because it involved use of only pierced cocoons, where the income was severely restricted. This represents one of the dilemmas of tasar sericulture for which there are no easy answers. Mr Pandya, CEO of EcoTasar, believes that there is a good market for spun yarn. The feasibility of increasing the proportion of ahimsa silk in the portfolio could therefore be reconsidered. Table 6.4: Potential Environmental Impact Node of value chain Seed rearing Tasks Positive impact Negative impact Impact may not be significant on account of small quantities in use Possible measures PRADAN can initiate a system to collect and safely dispose of used nets Use of chemicals such as bleaching powder and lime Use of nylon nets in chawki system May pose problems of safe disposal Use of bio-control methods for pest control Have positive impact on the eco-system and on farming as predators in sericulture are also predators of pests in agricultural crops Scientific validation and value addition to farmers traditional pest control methods through scientific research Can shift to biodegradable boxes made of paper, leaf, etc. Perhaps the traditional system of using leaf-cups can be modified and adopted; may call for more space within the grainage house Grainage Use of plastic boxes for egg laying Disposal problem as non-biodegradable Handling of female moths during egg laying stage, in particular clipping of wings This practice is considered nature unfriendly by environmentalists 90 Reel of Fortune Building Inclusive Value Chains

93 Node of value chain Tasks Positive impact Negative impact Possible measures Chances of handlers of silk moth contracting upper respiratory disorders; Some of the pathogenic bacteria associated with Nosema certainly contribute to occupational health risk to personnel. handling silk moth Requires research work on the extent of the health hazard and also some protective measures. Cocoon production Creation of host plantations Carbon sequestration on account of green cover Can apply for CERs under a cleaner development mechanism Conservation of forests to protect host trees By protecting the host trees other trees in the Sal forests also get conserved, leading to numerous environmental benefits Should be used to convince State Forest Departments to allow if not promote sericulture within forests Spray of urea for better foliage and application of chemical NPK fertilizers to soil Potential nitrogen contamination in water and soil due to leaching Can develop an organic package of plantation raising and promote vermicompost more than before Use of chemicals and plastics in silkworm rearing As in the case of seed rearing As in the case of seed rearing Procurement and storage of cocoons Stifling of cocoons by burning fuelwood High consumption of fuel-wood, high wastage of energy Develop or procure alternative stifling mechanism perhaps using solar energy The Case of Tasar Silk in Bihar and Jharkhand 91

94 Node of value chain Tasks Positive impact Negative impact Possible measures Stifling of cocoons Considered ecounfriendly Shift to using only naturally cut cocoons; Find alternative technical solutions Reeling and spinning Use of peroxide for pre-treatment of cocoons Energy consumption Most centers are using mechanical power rather than diesel generators as of now Safe disposal of the chemical after use Dyeing Use of chemical dyes Chemical dyeing units produce effluents which are often not disposed safely To increase reeling efficiency, new machines may have to introduce power consumption; renewable source of energy should be resorted to Feasibility of using natural dyes has been tried but not adopted; needs to be pursued further Azo dyes should be completely avoided Effluents should be treated properly at the dyeing unit enforcement of existing laws needs to be strengthened Weaving Energy consumption Most weavers are using traditional pit-looms and not consuming power In future, if they opt for power looms, source of energy should be renewable Finishing and marketing Energy consumption Processes like mending, clipping, labelling and packaging are done manually Processes like calendaring and ironing need the use of power as do the offices Use of solar energy for offices and finishing unit may be considered 92 Reel of Fortune Building Inclusive Value Chains

95 7 MAJOR CHALLENGES 7.1 TECHNOLOGY RELATED ISSUES Technology development by CSB and its associate institutes has played a major role in the creation of the modern value chain. The Central Silk Training and Research Institute (CSTRI) Bangalore, has about 50 scientists whose work is divided between mulberry and non-mulberry silk. Central Tasar Research and Training Institute (CTR&TI), Ranchi, which celebrated its 50th anniversary on 8-9 December 2014, has about 35 scientists and is probably the largest institute in Asia working exclusively on tasar silk. The development of a technology at the institute takes a cycle of 6-7 years before it can reach the farmer. CSB has a research advisory committee consisting of senior scientists which identifies the problem areas for which new technology or products need to be developed. The scientists take 3-4 years to develop a prototype. This then goes for validation to the field with about farmers. The scientists collect individual data and feedback on the performance of the product. They then go back to the lab and complete the lab-toland gaps. The product is then patented and sent for commercialization. The Institute holds all the patents to the technology developed by its scientists. However, the scientists also get due recognition. Private companies have to pay 5 per cent royalty to the National Research Development Council (NRDC) in order to get the rights for commercialization. Even after commercialization of a technology, the Institute still remains involved, to provide technical support where needed. The scientists at the institutions mentioned above are continuously engaged in trying to improve the productivity of tasar rearing and post-harvest processing through better equipment and improved technology. Table 7.1 provides a quick assessment of the status of new technologies that are being developed or have just been developed by CTR&TI, Ranchi. For the interested reader, Annexure 3 provides brief descriptions of these new technologies and products. The Case of Tasar Silk in Bihar and Jharkhand 93

96 Participatory Technology Refinement While scientists have been busy developing various types of technology for different stages in the value chain, PRADAN has been largely responsible for participatory diffusion and adaptation of the technology in the field. A number of refinements took place in the field through trial and error of the users as listed below: (i) Nursery: The method recommended by CSB was to make a mound of seeds and keep them wet for germination. The percentage germination by this method was rather low at 30-40%. During implementation, by trial and error, a sand-bed method was developed which led to increase in percentage germination to 60-70%. (ii) PRADAN started using larger size polythene bags of 8 x 6 for raising seedlings in the nursery. It also promoted the use of vermicompost, at the rate of 100 gm/bag, which contributed to the healthy growth of saplings. (iii) The pit size of 1.5 x 1.5 was rigorously maintained and the spacing between plants was increased to 8 x 8 and 10 x 6. This ensured healthy growth of plants with higher production of leaves per plant. (iv) Inter-cropping with legumes and vegetables was carried out during the gestation period of three years. (v) Soil moisture conservation through plotting and staggered trenching further helped to improve survival rate and growth of the host plants. (vi) Depuratex, a branded product for egg washing introduced by CTR&TI, Ranchi, was found to be quite effective and was adapted as such.

97 Table 7.1: Status of Technologies in the Pipeline at CTR & TI 21 S. No. New Technology/ technique/product Host Plants 1 Change in planting distance 2 Inter-cropping with vegetables 3 Vegetative propagation of host plants 4 Use of chemical inputs to increase leaf cover 5 Converting twigs and other bio-waste into vermicompost 6 Developing highyielding varieties of host trees Pre-Cocoon 1 Conservation and multiplication of various bio-types 2 Pest forecasting system, provided on institute s website 3 Biological control method for bacterial diseases of the silkworm Purpose/function The planting distance for arjuna/asan has been increased from 4 x 4 to 10 x 6 or 10 x 5. This has resulted in an increase of leaf harvest from 1.5 kg/ tree to 5.6 kg/tree. Inter-cropping between rows during the gestation period with vegetable crops can fetch an additional income of about Rs 5,000 to Rs 6,000 Being developed, because in the case of seedling the mother plant is not known. The use of plant nodes has been tested for planting. To increase leaf cover a 2 per cent spray of urea has been found beneficial along with the application of micro-nutrients to the soil. Has been tested and found beneficial Out of a germ plasm of 370 accessions, about 4-5 have been found to be high yielding and with desirable characteristics. These are being multiplied through vegetative (including tissue culture) as well as seed methods. Out of 44 bio-types acclimatized to various locations, conservation camps have been initiated for those in danger of extinction. Is based on trends in climate at various locations and is useful for guiding rearers Developed by isolating two bacteria from the leaves of host tree, which are antagonistic to bacterial disease; liquid provided is sprayed on the plants by farmers Present status Being recommended in the field Pilot tested under NABARD-TDF project and now recommended Under testing Being recommended in the field Being recommended in the field Under development On-going conservation work Developed and recommended for use Developed, commercialized and in use by farmers 21 Based on information provided by Dr. Alok Sahay, Director of the institute and several scientists including Dr. Ajit K Sinha, Dr. N. S. Ghelot, and Dr Z. M. S. Khan except where stated otherwise The Case of Tasar Silk in Bihar and Jharkhand 95

98 S. No. New Technology/ technique/product Purpose/function 4 Depuratex A chemical product used to wash the eggs, and minimize spread of diseases; Can also be used for general purpose of washing and sanitization; Packaging is specially designed for convenience of application by illiterate consumers who find it difficult to make precise measurements. 5 Tasar Amrit A semi-synthetic diet for young larvae to develop immunity. Productivity increased by 400%; highly successful trial in which scientists harvested cocoons/dfl. 6 Outdoor preservation of cocoons 7 Washing machine for washing eggs (In collaboration with Birla Institute of Technology, Mesra) 8 Cytoplasmic Polyhydrosis Virus (AMCPV) tolerant race 9 Dip-stick technique for testing Pebrine disease 10 Control of Pebrine disease by two chemicals GDP and PABA 11 Development of a Pebrine-o-scope in collaboration with C-DAC 12 Season specific brushing schedule being developed by analyzing the data over the past 3-4 years Cocoons are kept in the open under a metal structure covered with ½ wire mesh. Productivity increases by 100 per cent To reduce drudgery and time involved in washing eggs This particular virus tolerant race is being developed and has in its 6th generation shown an improved survival rate of per cent The stick coated with chemicals will exploit the antibody-antigen reaction to show color change in case of contamination. The chemicals are found to prevent formation of nucleotides (amino acids) that are important in spore formation. If sprayed on leaves and included in artificial diet of larvae it can result in complete elimination of the disease. For easy identification of Pebrine spores Since temperature and humidity vary from region to region, such a schedule would be helpful to the rearers Present status Developed and recently commercialized, being manufactured by M/s. Biosafe Medical (I) Pvt. Ltd, Ranchi. Under trial and scheduled for commercialization in a year s time Under trial Prototype developed Almost ready for field trial; may take another year or two for commercialization Under development Under trial stage Development, field trial completed and ready for use (as informed by PRADAN ) Under development at CTR&TI 96 Reel of Fortune Building Inclusive Value Chains

99 S. No. New Technology/ technique/product 13 Use of shadenet for grainage purpose using a low cost tubular structure to create a shed where cocoons can be preserved during grainage operations Post-cocoon 1 Cocoon counting and sorting machine (developed at CSTRI, Bangalore) 2 Assessment of silk content in cocoons in non-invasive manner through a machine (PRADAN in collaboration with C-DAC) 3 Dry reeling Kamdhenu model 4 Motorized tasar reeling charkha 5 Cocoon softening technology (in collaboration with Department of Biotechnology) 6 Discovery of a softening agent (enzyme) through serendipity 7 Development of by-product Sericin for the cosmetic industry from waste water after softening cocoons for reeling Purpose/function To reduce the investment in grainage structure To reduce drudgery and improve accuracy of counting and sorting To enable better assessment of quality of cocoons Improved reeling machine that is 1/4 th the weight of the original machine and therefore almost portable Improved and portable reeling machine An analogue of the cocoonase protolytic enzyme used by pupae to soften the pupae before emergence of adult moth has been developed Softening agent that is cheap (Rs 310/kg) and does not require de-flossing Sericin is an anti-ageing material with high commercial value (Rs 22 lakhs /kg) in the export market. Insects from the Lepidoptera family are the only known source of Sericin in nature kg of Sericin is lost each day in waste water, in Jharkhand alone. Present status Advocated by BTSSO Being popularized by CSB under 12 th Five Year Plan Under trial Under trial Under trial Under trial To be patented Under development The Case of Tasar Silk in Bihar and Jharkhand 97

100 All this was done for the first time on private waste land. The project was implemented through user groups (Tasar Vikas Samitis). Service providers were developed at the community level for the first time and various activities across groups were linked. The common facility center of reeling was also introduced in the special SGSY project. Close interaction with people at the grassrootslevel enabled PRADAN staff to understand both the traditional technical knowledge they possessed as well as the knowledge gaps that needed to be filled in order to modernise the value chain. Over a period of time the feedback generated by field staff has helped to identify a number of areas where the value chain can benefit from infusion of new technology from the modern research institutions. The emerging technological challenges as perceived by them is summarised in Table 7.2. The two most critical areas that need urgent attention of scientists and managers are: a) Containing Pebrine disease through better diagnostics and management techniques and b) Superior reeling and spinning machines that would make yarn-making profitable under the prevailing market conditions. The measures undertaken with respect to these two critical areas are summarized below. Table 7.2: Summary of Technological Challenges S. Challenge No. Pre-cocoon 1 Rearing in Sal plantation: Sal is a secondary host of tasar silk worms; vast potential to utilize the abundant flora of Sal forest. However, popular and commercially exploited races like Daba, Sukinda do not perform well on Sal trees. 2 Propagation of host trees: Due to wide heterosis, desired traits of plants cannot be maintained through propagation from seeds. 3 Carbon sequestration of host plantations: CERs can be applied for on the basis of a systematic assessment thereby improving the economics. 3 Gestation period of host tree: The host tree Arjuna (Terminalia Arjuna) used for man-made plantations has a gestation period of 3-4 years. Poor households find it difficult to protect and sustain the plantations without any economic gains. 4 Low feed conversion ratio: The present feed conversion ratio of 250 gm leaves to 1 gm silk is rather low. 5 Susceptibility to disease, pests and climate fluctuation: Vulnerability to Pebrine and other diseases reduces production efficiency and increases the risk. Possible Solutions Need to develop technologies with Sal as the host tree. May entail promotion of indigenous races like Sarihan, Laria or genetic manipulation of races like Daba, Sukinda to make them more suitable for Sal tree. Asexual means of propagation should be explored to produce robust seedlings with desired traits. Technologies for root-shoot cutting and tissue culture may be standardized. Need for a professional assessment of block plantations of Asan and Arjuna host trees. Need to explore other hosts species that can grow faster and allow rearing within 1-2 years. Need to explore ways of improving this ratio through cross-breeding, selection or genetic manipulation in order to make the economics of cocoon rearing more attractive. Need to develop stress and disease tolerant breeds of the insect. 98 Reel of Fortune Building Inclusive Value Chains

101 S. Challenge No. 6 Easy detection of Pebrine disease: Pebrine causes great loss and prevention is the only available method to protect the crops. Grainage operators use microscopes to detect spores of the causal agent a protozoa. The method is however is not fool-proof and subject to human error. 7 Conservation of laria race: The laria race has been pushed to near extinction due to rapid loss of natural habitat. Conservation and rejuvenation of the habitat can reverse the situation. Post-Cocoon 8 Low efficiency of reeling/spinning machines: The available machines are seriously constrained by low productivity, non-uniform quality and high power consumption, making yarn production economically unattractive. 9 Need for improved handloom machines: The existing handlooms are low in productivity producing only 3-4 meters of fabric per day. Thickness of fabric is also not uniform and weavers cannot weave complex designs. 10 Improved stifling machine: Current stifling technology (Ushna Kothi) damages the upper layer of silk in cocoons which results in reduced recovery. Application of ICT 11 As productions are mostly decentralized across various segments of the value chain monitoring becomes very difficult. Possible Solutions Need to develop a more authentic and simple test (such as identification strips used in kala azar disease) which can be used by village based grainage operators. Disease Surveillance: Identification & isolation of virulent and non-virulent strains of Pebrine at different stages of life cycle, dormant stage and metamorphosis stage. Assessment of infection level in the rearing field and how much is contributed by the secondary contamination. Assess whether and to what extent predators are responsible for secondary contamination Need to organize local communities and support them for the purpose. Need to design new reeling and spinning machines that enhance productivity and quality of output by several times. New improved looms are needed to raise productivity and income of the weavers. New machines need to be developed and tested, both from the view-point of effectiveness and fuel efficiency (including eco-friendliness). Need to explore the potential of IT-based solutions for real-time monitoring of activities like grainage, silk worm rearing and yarn production. The Case of Tasar Silk in Bihar and Jharkhand 99

102 Addressing the Pebrine disease threat Pebrine is a difficult disease to control. It is also the single most important threat to the production of cocoons. The best way to deal with it is to take prophylactic measures. Early detection is the key. However, the student s microscope which is currently in use is not sufficient for a complete examination as it does not reveal the stages prior to spore formation. There are five such vegetative stages which a layman cannot identify. There are 11 strains of the protozoa for which genome study has been carried out at the CTR&TI, taking samples from all states. The spores are of different shapes and sizes. Infection can be of two types, namely transmitted by the mother moth and secondary contamination. The first refers to vertical contamination while the second refers to horizontal contamination. It is important to control the conditions that lead to both types of contamination. Secondary contamination takes place due to predators, diseased trees or soil litter being contaminated. Pebrine spores are found even in the litter and the skin (after moulting of the larvae). As a result rearers themselves become a source of contamination. The Pebrine spore has a thick coat of mucoid protein so it does not easily die and can survive for 5-7 years. This is where creating awareness among the rearers about the need for sanitation would go a long way in controlling the disease. At the moment the practice is to examine the abdominal tissue of the mother moth and destroy the eggs of infected moths. If the Chinese method of piercing the gonad with a stick is used, care should be taken to pierce it at the right spot. Otherwise the method is not effective. A dip-stick method for early and easy detection is being developed. The stick coated with chemicals will exploit antibodyantigen reaction to show color change in case of contamination. Until this technology is developed farmers continue to rely on elimination technology. Control of Pebrine spore formation through the use of chemicals PABP and GDP, though promising, may take time to develop. Hence for the foreseeable future (5-6 years at least) efforts to prevent the disease from taking the form of an epidemic would have to be strengthened. Sanitation measures in the seed value chain would be critical. PRADAN and CSB need to ensure that the system of checks is in place and does not breakdown at any stage. Reviving the yarn making node of the value chain The second biggest challenge to the intervention is the breakdown of the yarn-making node of the chain. The challenges on this node are both with production and with marketing. Enhancing productivity: On the production front, CSB has been making continuous efforts to develop and promote new improved machines for reeling and spinning. In mid-2012, CSB organised a field test of several new machines at Kurawa village, Saraiyahat block, Dumka district, Jharkhand. A Working Group was constituted by the Member Secretary, CSB, with representation from CSB, CSTRI, CTR&TI, Departments of Sericulture, Governments of Bihar & Jharkhand, PRADAN, Masuta Producers Company and the producers, with Dr Satyanarayana Kutala as the convenor. The study was taken up at Kurawa village, under extreme weather conditions of C temperature and per cent relative humidity. Six reeling machines were tested at the same place, under the same weather conditions with five replications on each machine through nine reelers. The trials were supervised by an observer per machine and a scientist each from CTR&TI, Ranchi, and Zonal Office, CSTRI, Bilaspur. Daba bivoltine A-grade cocoons from a single lot with average cocoon weight of 3.95gm, shell weight of 1.68gm, filament length of 652 meters, non-breakable filament length of 212 meters and filament size of 10mm were used in the trials. Standard cooking 100 Reel of Fortune Building Inclusive Value Chains

103 with efficiency of over 95 per cent, deflossing and reeling processes were followed for both wet and dry reeling methods. Annexure 5 provides a summary of the key features of five of the machines that were put under field trial at Kurawa village. Detailed techno-economic feasibility assessment was also done for all the reeling machines keeping in view the estimated cost of working capital, cost of production of tasar silk yarn, profit loss account of production, return on investment and break-even point. The highest ranking was given by the operators to CSTRI s Motorized Reeling cum Twisting Machine, followed by CTR&TI Twin Charkha, while a difference of opinion was observed with respect to the other three machines. The evaluation of the machines that took part in the trial for different parameters is summarized in Table 7.3 below. Apart from the productivity parameters the machines were also evaluated on 12 reeling parameters and six yarn quality parameters. Finally they were assessed for their economic performance as summarized in Table 7.4. Table 7.3: Results of Field Trials Productivity Parameters (2012) Parameters M1 (4-end) M2 (6-end) M3 (8-end) M4 (6-end) M6 (2-end) Size of the yarn produced in denier Production in gm Deflossing time in hrs Reeling time in hrs Re-reeling time in hrs Total time in hrs No. of operators involved Effective production in gm/8hrs/ operator

104 Table 7.4: Economic Performance of the Machines under Trial (Rs) S. No. Particulars M1 M2 M3 M4 M6 1 Tasar yarn Rate/kg of yarn 3,200 3,200 2,700 3,200 2,700 Total revenue 64,000 64,000 54,000 64,000 54,000 2 Tasar reeling waste Rate/kg of silk waste Total revenue 2,100 2,800 1,400 2,940 1,960 3 Re-reeling silk waste (%) Re-reeling silk waste(kg) Rate/kg of re-reeling silk waste (Rs) Cost of re-reeling waste (Rs) Total revenue generated 66,100 66,820 55,400 66,960 55,960 5 Cost of production 64,208 92,539 46,879 83,354 52,770 6 Gross profit/20kg of yarn 1,892-25,719 8,521-16,394 3,190 7 Gross profit/kg of yarn 95-1, Marketing expenses (@0.25% of Sale Price) Net profit/ 20 kg (Rs) 1,727-25,886 8,383-16,562 3, Net profit/kg (Rs) 86-1, Four spinning machines with five replications on each machine through five spinner producers were also tested at the same location with similar arrangements. The machines under trial were: y CSTRI s motorized &pedal-operated spinning wheel; y CSTRI s solar-operated/ pedal spinning machine; y Hind Machinery s pedal-operated spinning machine; and y Masuta s solar-operated spinning machine. Operators unanimously gave the highest ranking to Hind Machinery s Pedal Operated Spinning Machine followed by Masuta s Solar Operated Spinning Machine as they felt comfortable working with these machines although their productivity and income was lesser than CSTRI s Motorised Spinning Machine. The operators pointed out a few difficulties with the latter, in which the spindle came out of the bolster and the spindle lock was frequently worn out. They also experienced difficulty in drafting fibers and feeding them into the machine with their fingers due to the higher spindle speed and frequent breaks due to higher twists. The trials helped to settle the issue of which machines to promote in the short run. The detailed report of the working group also made recommendations for future development of the machines keeping in view the feedback generated in the trials. After a gap of about two and a half years scientists were ready for another field trial with further improvements in the earlier models and development of new models. In December 2014, plans were made for field testing nine new, improved reeling and spinning machines. Table 7.5 gives a summary of the machines that were short-listed for trial. The trials took place at 102 Reel of Fortune Building Inclusive Value Chains

105 Table 7.5: Reeling Machines under Trial (January 2015) S. No. Reeling Machine Developed by 1 Dry Reeling Machine (MRTM 4-end) CSTRI [developed under the project CYR 7054] 2 Wet Reeling Machine (4-reels) CSTRI [developed under the project CYR 7054] 3 Kamadhenu -Vertical Reeling & Spinning Machine CTR & TI (2- spindle developed under CTR&TI/Pilot project/ ) 4 Motorized Tasar Reeling Machine CSTRI (developed under the project CYR ) 5 Anna Reeling Machine (2-end dry reeling) (Masuta) PRADAN [developed under the project CYR 7054] 6 Tasar Cottage BasinReeling Machine (DCTSC Suri) CSTRI 7 Unnati Tasar Reeling Machine Jharcraft Jharcraft 8 Tasar Reeling&Twisting machine (SCTH Malda) CSTRI 9 Tasar reeling machine - substitute of thigh reeling [Devangan, Champa] Private entrepreneur at Champa four locations (Bero, Ranchi and Kurava, Dumka, in Jharkhand; Tantipara, West Bengal and Champa, Chhattisgarh) from the 21 th to 31 st of January The stakeholders involved in the trials included PRADAN, DOSs, industry representatives and producers. Four working groups were constituted by CSB to undertake trials in the four locations. PRADAN was represented in the working group overseeing trials at Godda, Jharkhand. The working groups made recommendations separately for weft and waft yarn-making and for different locations. While comparing the average productivity across locations, it was found that the wet reeling machine (CSTRI) had the highest silk production at 225 gm/ day. This was followed by Charkha (CTR&TI) and Tasar Cottage Basin Mc. (DCTSC, Suri). Efforts to improve the performance of the machines at the various institutions are continuous and ongoing. The trials conducted by CSB represent an effort to take stock of the developments from time to time and to make suitable recommendation for users in different areas as well as for the research institutions to make further improvements. A major break-through in this area could spell the return of reeling and spinning activity as a distinct node in the value chain and in the process, strengthen the entire value chain. 7.2 MARKET RELATED ISSUES The understanding of markets varies from person to person and institution to institution. Here too the author found a difference in perception between the perception of officers at PRADAN and the understanding at EcoTasar. The perception of export houses was also considered to get a more complete understanding of the forces at play and the trends emerging in the market. Perspective of PRADAN, Deoghar At PRADAN, Deoghar, there is a strong belief that the price movements during the last 3-4 years have been responsible for squeezing the profits of the yarn producer to such a level as to make the activity economically unviable. This view was supported with data for the last three years (Table 7.6). As the table shows, while the price of yarn increased somewhat The Case of Tasar Silk in Bihar and Jharkhand 103

106 Table 7.6: Prices of cocoons and yarn Year Yarn (Rs) Cocoon (Rs) ,800-3,000/kg 1.65/c ,000-3,250/kg 1.85/c ,250-3,600/kg 2.80/c Source: PRADAN office, Deoghar (around 10%), the price of cocoons increased a great deal (about 70%). PRADAN observers believe that prices of yarn are likely to continue being depressed given the condition of the market for traditional tasar woven fabrics. Perspective of Export Houses A joint meeting with Mr Babulal Das (Manoj Textiles) and Mr Mohan Paliwal (Brijesh Corporation, Mumbai) was organized through Mr Seshnath Bharthi, Production Manager EcoTasar, Bhagalpur unit, to understand market issues in Bhagalpur. Since 2008 there has been a recession that has affected exports, and not just in Bhagalpur. At one point there were 30 exporters in Bhagalpur, of whom hardly four or five are left. Hardly 20 per cent of the looms in Bhagalpur are now working in silk, and many weavers are migrating to Surat. Export accounts for hardly 10 per cent of the tasar silk trade now. In 2008, tons of silk fabric worth Rs 25 crore to Rs 30 crore was being exported. Now this has come down to tons. Some of the reasons identified by the traders for the decline in the export of silk fabric from Bhagalpur are listed below: i) Lack of infrastructure: Power is the major bottleneck. Transport and lack of airport facilities and lack of modern technology have all contributed to the decline. ii) Government policy: Earlier a 15% cash incentive was provided. Income tax was exempt if the unit was 100% export oriented. Since onward, these incentives have been withdrawn. On the other hand, import duty has been added. iii) The new generation is not interested in continuing this business. The children of the traders are well educated and well placed in different professions. iv) There is an association of traders in Bhagalpur but it is not proactive. v) There is a lack of modern dyeing and processing facilities to meet the competition. vi) Reelers don t worry about quality and provide yarn with high denier. Similarly weavers don t worry about quality but only about their employment. In other words, there is a lack of accountability within the supply chain. vii) Indian yarn is not consistent in quality. Further, traditional material is not easily available in the market. viii) The volumes of orders have also gone down. As a result, while the margin remains the same, the risk has increased. ix) Pierced cocoons of tasar are exported directly to China, where fabric is made out of it due to superior technology. Strategies for Survival In order to survive, the export houses have tried to reduce their overheads while maintaining quality of produce. In the opinion of Mr Paliwal, survival in the changed market scenario is possible only by targeting the middle class in the domestic market where volumes are high. He cites the example of Banarasi sarees. The decline of the Banarasi saree 104 Reel of Fortune Building Inclusive Value Chains

107 began only after textile mills in Surat started making low-priced sarees costing Rs Bhagalpur traders cannot target the upper class as they do not have products to match the quality requirements of high-end customers. Another strategy adopted by them is to switch to 100% polyester. The material and designs developed by the parent company imitate the look and feel of silk. Since dyeing facilities in Bhagalpur are not up to the mark they get the material dyed from Mumbai. Polyester cloth of 44 inches costs Rs 200 whereas silk costs Rs 1,000. However, of late, the demand for polyester has also gone down. Hence this strategy is also not working too well. Perspective of EcoTasar In the view of Khitish Pandya, CEO, EcoTasar, there is a robust boutique market for desi tasar but due to acute shortage of desi tasar yarn, the market for desi-looking products is gradually shrinking. Most tasar fabric in the industry is being made using Chinese yarn, both for warp and weft. However, desi spun tasar has no competition from Chinese yarn as the Chinese do not make hand-spun yarn and this is consumed domestically in textiles for kurtas, jackets and in the export market for furnishings. The market for tasar products in the domestic market is robust for sarees and other dress material. This is good enough to take up the entire tasar production as of now. As there is a dearth of silk raw material in the spinning sector, any amount of silk production should be absorbed easily. EcoTasar s ability to develop new and innovative products further ensures that it can comfortably absorb tasar yarn and still provide a decent wage of Rs 700/kg to the reeler. 22 It is worth noting that despite the recession described by the export house owners, EcoTasar has performed extremely well. Its success can be attributed to continuous innovation and new product development. Eco-Tasar experiments with new combinations of fibers for warp and weft and has introduced new designs according to customer preference and market trends. This approach has enabled it to capture niche markets both in the domestic as well as export markets. EcoTasar feels that there is a need to augment the supply of Indian tasar yarn as blended fabrics made from it have a high demand in the market due to its unique look and feel. The breakdown of Masuta Producers Company on account of poor working capital management since the completion of the SGSY project has proved to be a major setback in the supply of this yarn. In the short run, this problem was overcome by experimenting with and shifting to other yarns such as eri silk yarn. In the long run however, EcoTasar will need to develop an alternative system of procuring this yarn directly from the common reeling centers. In order to make yarn-making economically more attractive, there is an urgent need to improve the reeling and spinning technology so that this node of the value chain can be strengthened once again. This task is being attended to by CSR which is in the process of field testing the new reeling and spinning machines developed at various institutions. To fill the gap created by the closure of Masuta, PRADAN initiated cocoon banks to procure and store cocoons for reelers in the project area. The procurement and marketing of yarn would be organized by the production team of EcoTasar. This would be brought in place once the new machines with higher productivity being field tested by CSB are brought into operation. This process is likely to take some time. 22 This view was expressed by Mr. Seshnath, Production Manager, EcoTasar. The Case of Tasar Silk in Bihar and Jharkhand 105

108 7.3 POLICY ISSUES During recent years, the Central government, and particularly the Ministry of Textiles and Ministry of Rural Development, have been highly supportive of the tasar silk intervention. However, a few issues need to be tackled proactively, which are discussed below: i) Easy access to forests for sericulture: About 90 percent of silkworm rearing is carried out in the natural forests, access to which is not easy in most of the states. The Forest Departments in most states are reluctant to allow easy access to forests. In this regard, a recent circular by the Member Secretary, CSB, seems to have cut some ice with some of the state Forest Departments (see Annexure 4). ii) Creation of man-made plantations on a large scale: While productivity is higher on man-made plantations when compared to forests, the investment needed is rather high (estimated at Rs 50,000/ha). The present MKSP project proposes to create 3,500 ha of such plantations. iii) Need for creating seed zones: The absence of well-defined and well managed seed zones creates a difficulty in limiting infection load in successive grainage cycles. iv) Incentivizing private seed entrepreneurs: The private entrepreneurs promoted under the special SGSY projects sell DFLs without subsidy. However in the same geographic area DoS supplies DFLs with 75% subsidy which undercuts the efforts of the private seed entrepreneurs. There is a need to create a level-playing field. If subsidies are to continue, then private seed entrepreneurs should also be eligible for them. Alternatively subsidy should be completely removed. v) Need to reorganise basic seed supply: BTSSO is currently responsible for supplying both basic as well as nucleus seeds from its BSM&TCs. Given the large and growing demand for basic seed from DoSs, this poses problems of maintaining quality. vi) Credit availability: Village-level private grainages in tasar have been recently recognized by CSB. However, the grainages in the private sector face difficulty in accessing credit from the banks to meet their working capital requirement. The banks have so far not been willing to extend credit to this venture, apparently due to the absence of NABARD s Unit Cost Guidelines. This issue needs to be raised in policy forums of the bankers as a priority. vii) Need to promote social entrepreneurs/ entrepreneurs: The challenge of scaling up the program ultimately boils down to the setting up of professional management at different nodes of the value chain. There is a need to create a new breed of social entrepreneurs through institutions such as the Entrepreneurship Development Institute of India and other management schools and get them interested in taking up the challenge. Partnerships with the private sector through CSR could also be explored. viii) Urgent need to develop efficient technology for moth examination: The existing technology for examining moths for control of Pebrine disease requires vast human resources since 100% of the moths need to be examined. Even so the method is not fool-proof. ix) Need to promote more eco-friendly technology: While some nodes of the value chain are eco-friendly (such as the creation of host plantations and protection of forests) others are not so. It was found that tribal women were reluctant to participate in grainage operations where the modern technology is somewhat nature unfriendly. x) Policy for pricing of seed cocoons: Seed cocoon is most critical for building the stock for the commercial crop. However, unlike 106 Reel of Fortune Building Inclusive Value Chains

109 other sectors, the price of seed cocoon is comparatively very low. On the other hand, production risk is relatively high due to weather conditions during June to August. xi) Uniform pricing policy for cocoons: Tasar being a state subject, state governments can decide on the price of cocoons. Although CSB has established a Tropical Tasar Advisory Committee for fixing the price of cocoons and yarn, many states do not take its recommendations into account. xii) Need to provide fiscal incentives and tax exemptions to social entrepreneurs and peoples institutions involved in sericulture: This could include incentives for export, exemption under excise duty and subsidized interest on working capital loans among other things.

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111 8 CONCLUSIONS AND THE WAY FORWARD 8.1 TASAR SILK LIVELIHOOD INTERVENTIONS OVER TIME Figure 8.1 shows the trajectory of tasar-rearing starting from traditional rearing practices in the early Nineties, right up to the present MKSP period. To start with, tribals perceived the traditional method of sericulture in the forest as a low-return medium risk livelihood option, which was nonetheless pursued as it provided supplementary employment during the lean season and generated useful cash for expenses. However, in the late Nineties, many tribal families were opting out of this occupation as the perception of risk in their minds had gone up. This was due to the increase in frequency of disease, resulting in total wipe-out of production. This is when CSB and PRADAN made an entry with a package of technology for rearing and supply of DFL that would ensure that they got a crop every year. By shifting to private plantations, the cost of production went down and productivity went up. Hence during the UNDP project, when these changes were introduced, the producers found themselves moving up the risk-return matrix. Establishment of cocoon reeling and spinning centers ensured Figure 8.1: Trajectory of silkworm rearing by tribals over time Risk High Medium Low High? MKSP? Returns Medium Sp. SGSY Nabard-TDF UNDP Low Traditional rearing early 1990s Traditional rearing early 1990s Exit of many producers The Case of Tasar Silk in Bihar and Jharkhand 109

112 that there would be a steady demand for their cocoons and that they would get a good price. This was further strengthened during the SGSY project period through the establishment of Masuta and still later, of EcoTasar. As a result the position on the risk-return matrix improved even further. However, it was still somewhere in the middle of the matrix. This is because the problem of Pebrine disease persisted, causing setbacks to producers. As there is no cure yet for the disease, present measures address the problem only through preventive actions. Strict adherence to the available disease-control protocol and strengthening of the monitoring system can, to a large extent, mitigate this risk. On the market front, due to the current shortage of cocoons, the price realized is good. However, the breakdown of the marketing mechanism created by Masuta is a cause for concern and can pose a risk in future unless supporting institutions work out a suitable alternative. The quantum of earning per day compares well for most of the rearing activities with the opportunity cost of the tribal family. However, since the cycle is typically short ( 65 to 75 days) the income is limited and during the remaining months, the families still have to fend for themselves by looking for alternative sources of employment. It is here that the trials under the NABARD-TDF project have shown promising results and need to be scaled up. Through diversification of livelihood activities the project succeeded in providing year-round source of income thereby reducing the risk and increasing the net annual returns. The current MKSP project is designed to scale up the activity especially at the pre-cocoon stages. Hence it is unlikely to see a major shift in the position of the cocoon raisers on the risk-return matrix. However, if the post-cocoon stages are strengthened during the project by introducing new and improved machines for reeling, spinning and weaving, and if these stages are supported by new institutional mechanisms for marketing of yarn, then this could have a down-stream effect and result in better prices for cocoons leading to higher returns and lower risks for cocoon rearers. Since MKSP has a provision for piloting innovative ideas, the partners could take advantage of this to address these gaps. A major contribution of PRADAN and CSB has been the creation of an entire value chain for seed production, thereby stabilizing production and augmenting the scope of participation of unemployed youth. The idea of tribal grainage entrepreneur has been well established and adopted by CSB as well as DoS in various states with far reaching impacts on the sector. Apart from the economic emancipation that is taking place at the grassroots level, the project has also made a significant social impact. This includes empowerment of the poor and of women, improvement in living conditions, improved food and nutritional security, reduced vulnerability, reduced

113 or nil migration, and improved self-confidence and social status. Cases of people leveraging the cash income from sericulture to release land under mortgage and thereby achieving food security are heart-warming and these are not isolated cases. The impact of the intervention on gender relations has been very positive. Where earlier there was a social taboo among most tribal communities against women entering the forest to engage in sericulture, this is now giving way to active participation of women in various activities including nursery raising, plantation of host plant, silkworm rearing, etc. The only place where they have hesitation to participate is in the grainage which is relatively eco-unfriendly. The ecological impacts of the value chain represent a mixed bag. Some impacts like the massive plantation of host trees on private waste-land as well as protection of the forests by Tasar Vikas Samitis are bound to have very positive impacts on the environment and ecology, resulting in carbon sequestration and bio-diversity enhancement. The fact that chemical pesticides are by and large avoided because of their likely impact on the agricultural sector is very positive. There are some negatives such as the stifling process before storage of cocoons, which is not eco-friendly. Promoting spun yarn through pierced cocoons in greater measure may be a partial solution until such time that a technical solution to the problem is reached. A more professional and rigorous assessment of the ecological impact is called for so that the technology being produced could also be modified accordingly keeping in view the sentiments of not only the producers but also the consumers of endproducts in the market. In the post-sgsy scenario, the intervention is being scaled up through the MKSP project in the tribal belt of eight states. Even if the position on the riskreturns matrix is maintained at the present position, the project is bound to have a major impact on poverty. Since these communities are geographically located in areas with a high incidence of insurgency, such interventions that help to bring them back to mainstream economy would have long term social benefits that cannot be valued in monetary terms alone. Successful implementation of this project would help overcome the inertia of working in such neglected areas and encourage more NGOs and GOs to work in tandem and partnership with each other. The NABARD-TDF project recently implemented on a pilot scale has shown beyond doubt that using the gestation period of the host tree plantation to cultivate vegetables is an economically attractive proposition. By developing a portfolio of livelihood activities drawn from agriculture, horticulture and NTFP sectors, the tribal family can attain year-round employment within the village, thereby eliminating the need for distress migration. This approach too needs to be scaled up in the coming years along with the tasar-rearing activity. In fact this is already happening to some extent since the MKSP project also includes integration of sericulture with other livelihood options viz., sustainable agriculture, vegetable cultivation etc., for food and nutritional security besides year round income. 8.2 MEETING THE CHALLENGES AHEAD Two of the most important challenges to further development of the value chain and that need to be addressed comprehensively are: a) addressing the threat of Pebrine disease and b) strengthening the yarn making node. Both PRADAN and CSB are making all-out efforts to address them. Some of the measures undertaken to address the issues of yarn-makers are: i) Establishment of cocoon banks that have taken over the function of procuring cocoons and storing them in a decentralized way. ii) Stepping up the development and trials of new and more efficient reeling and spinning machines, which would improve the efficiency enough to make these activities attractive once again to reelers and spinners. The Case of Tasar Silk in Bihar and Jharkhand 111

114 Tackling the issue of Pebrine disease may be more difficult as given the status of technology development, it may take a while to come out with a technology to control the disease. In the interim period, implementing partners will have to tighten measures for sanitization especially at the seedrearing stages. It is also suggested that the working capital management of the cooperatives involved in seed production be strengthened to prevent any financial risks of the type encountered by the producer company in the past. In this context creating a cadre of professionals who would be willing to work for peoples institutions with commitment is a priority. It is a challenge that may need some creative thinking and pooling of resources of all the major stakeholder institutions. On the marketing front, EcoTasar has blazed a new trail through product innovation. Its marketing expertise will no doubt be critical in reviving the yarn-making activity through suitable marketing interventions. PRADAN and CSB need to lobby for fiscal incentives that would make the path smoother for peoples institutions and social entrepreneurs that are engaged in marketing products of the poor. With the vast experience of over two decades the facilitating partners are well placed to meet these challenges in the coming years.

115 Annexure 1 List of Documents Reviewed/Referred 1. Anon (n.d.) Collaboration with Central Silk Board internal note prepared by PRADAN. 2. Anon (n.d.) Technology Mission to Strengthen Tasar Sericulture Based Livelihoods, internal note prepared by PRADAN. 3. Anon (n.d.) Based on discussion with the Hon ble Member Secretary, CSB and other officials or CSB and PRADAN internal note prepared by PRADAN. 4. Anon (31 st Dec 2014) Note on the Performance of Indian Silk Industry and Functioning of Central Silk Board, Bangalore: Central Silk Board. 5. Ashley Caroline and Jonathan Mitchell (2008) Doing the Right Thing Approximately Not the Wrong Thing Precisely: Challenges of Monitoring Impacts of Pro-Poor Interventions in Tourism Value Chains. Working Paper 291, Overseas Development Institute and International Finance Corporation, World Bank Group. 6. Gupta, V.P and M.K. Sinha (2013), Illustrated Manual of Tropical Tasar Culture Technology: Food Plant Maintenance, Silkworm Rearing and Seed Production. Ranchi: Central Tasar Research and Training Institute, pgs Manu Sinha(2009), Impact Assessment of Pradan s Sericulture Program in Bihar and Jharkhand, report submitted to PRADAN 8. PRADAN (n.d.), Silken Spread: A special SGSY project implemented by PRADAN, New Delhi: PRADAN 9. Rai Suresh, (2015) Tasar Silk Production Statistics Ranchi: Central Tasar Research and Training Institute. 10. Sathyanarayana, K. Amarnath, S, Saratchandra B and Md. Shamshad Alam, (n.d.) Bihar and Jharkhand: Special SGSY Projects for Tasar Development: Success sustained in Indian Silk. 11. Satyabratha Acharya and Khitish Pandya (2011), The Silk Route to Livelihood Augmentation: PRADAN s Tasar Silk Intervention in Jharkhand, in Pastakia Astad and Sachin Oza (edt.) Entrepreneurial Strategies for Augmenting Rural Livelihoods, Vol. II of Livelihood Augmentation in Rainfed Areas, pp Satyanarayana K, Amarnath, S and Madhabananda Ray (2009), Producer Company for Tasar Yarn Producers in Indian Silk, September Satyanarayana, K, Amarnath S and Md. Shamshad Alam, (2009) Raising of Tasar Host Plants in Private Degraded Waste Lands in Indian Silk, September Vidhi Srivastava, (2011), Report prepared by TAS Manager (Probationer) Community Stint from SRTT (CInI), January-February 2011, pgs.21. The Case of Tasar Silk in Bihar and Jharkhand 113

116 Annexure 2 List of People/Stakeholders Interviewed S. No. Name Affiliation Purpose of Interview/ Interaction A. Institutional Stakeholders 1 Ms. Ishita Roy Member Secretary, Central Silk Board 2 Dr. Alok Sahay Director, CTR&TI, Ranchi 3 Dr. Sathyanarayana Kutala Coordinator MKSP Project, CSB 4 Dr. N. S. Ghelot Senior Scientist, CTR&TI, Ranchi 5 Dr. Z. M. S. Khan Senior Scientist, CTR&TI, 6 Dr. Ajit Kumar Sinha Senior Scientist, CTR&TI, Ranchi 7 Dr. Soumen Nandi Senior Scientist BSM&TC, Deoghar, CSB 8 Dr. Sourabh Mazumdar Senior Scientist, DTSC, CSB, Bhagalpur 9 Dr. A. K. Singh Senior Scientist, BSR&TC, Bhagalpur 10 Mr. Manas Kumar Satpathy 11 Mr. Satyabrata Acharyya 12 Md. Shamshad Alam Executive Director, PRADAN Programme Director, PRADAN, Ranchi, Jharkhand Integrator (Tasar Theme), PRADAN and CEO, Tasar Development Foundation 13 Mr. Khitish Pandya CEO, EcoTasar Pvt. Ltd. New Delhi Date and Place of interview Briefing and overview 14 th January, 2014, New Delhi Technological advances in Tasar 12 th Sept. 2014, sector and research undertaken at the institute Detailed functioning of the project Post-cocoon technology developed at the institute 12 th April 2014, and interaction throughout the study 12 th Sept. 2014, CTR&TI, Ranchi As above 12 th Sept. 2014, CTR&TI, Ranchi Pre and post cocoon As above technological innovations at the institute Functioning of the centre As above As above 10 th Sept., 2014, Bhagalpur Functioning of the centre 10 th Sept, 2014, Bhagalpur Briefing and overview 28 th May, 2014, New Delhi Debriefing 11 th Sept 2014, Ranchi Briefing about project activities and project level data, field visits etc. To understand the marketing strategy and information for value chain analysis on various product lines Interaction throughout the study period 28 th May 2014, New Delhi 114 Reel of Fortune Building Inclusive Value Chains

117 S. No. Name Affiliation Purpose of Interview/ Interaction 14 Mr. Rajendra Kumar Khandai 15 Mr. Binod Raj Dahal 16 Mr. Shyamapada Mahato Integrator (Theme), PRADAN, Deoghar Integrator (Theme), PRADAN Deoghar Field Assistant, PRADAN, Deoghar 17 Mr. Pankaj Kumar In-charge Cocoon Bank, Inaravaran, Bihar 18 Mr. Shesnath Bharti 19 Mr. Vikas Chandra Sinha Production Manager and Head, Production Unit, EcoTasar Pvt. Ltd. Entrepreneur 20 Mr. Babulal Das Manoj Textiles, Bhagalpur 21 Mr. Mehuse Paliwal Brijesh Corporation, Mumbai 1 Mr. Srijal Murmu, Mr. Betka Kisku and Mr. Suresh Tudu 2 Mr. Brajesh Kumar and Mr. Rajesh Ranjan Technology issues, policy issues and implementation at the grassroots As above Development of improved reeling machine at PRADAN To understand the stifling, sundrying and storage facilities at the Cocoon Bank To understand the production process To understand the process at dyeing unit Marketing issues as perceived by Export houses As above B. Primary Producers and People s Institutions Sundermor village, Sunderpahadi Block, Jharkhand Baijal Baba Tasar Vikas Samiti; Basic Seed Production Centre, Sundermor To seed cocoon production in forest To see process of seed production at commercial grainage 3 Mr. Ranglal Tudu Haldidih village To understand traditional rearing through interaction with traditional rearers in control villages Date and Place of interview 8 th Sept 2014, Deoghar office and during field visits As above 9 th Sept 2014, Deoghar and during field visit 9 th Sept 2014, Inaravaran village, Banka district, Bihar 10 th Sept 2014, Bhagalpur 10 th Sept 2104, Bhagalpur 10 th Sept. 2014, Bhagalpur As above 6 th Sept 2014, Sundermor, forest site 6 th Sept 2014, Sundermor, Jharkhand, grainage in village 7 th Sept 2014, Haldidi village 4 Mr. Jailal Murmu Khorna village As above As above 5 Mr. Budhinath Tudu and Ms. Balabeti Tudu Mehasa Munger village To understand traditional rearing in the forest in village newly adopted by PRADAN As above 6 Mr. Abhimanyu Singh, and group of 11 seed rearers/ grainage owners Secretary Vanwasi Kitpalak Swablambi Cooperative Society Ltd.< Lilabaran, Bihar To understand the process of Basic seed production and see the infrastructure created by the cooperative for the same at the village level 6 th Sept 2014, Lilabaran village, Banka district, Bihar The Case of Tasar Silk in Bihar and Jharkhand 115

118 S. No. Name Affiliation Purpose of Interview/ Interaction 7 FGD with 19 woman reelers at CFC Bhusiatarai 8 FGD with 20 women and 2 male CRPs viz. Rajendra Hansda and Sandeep Kisku 9 FGD with 80 women and 20 men 10 Nandini Devi and woman spinners Common Facility Center, Bhusiatarai village, Block Katoriya, Banka district Bihar Participants from Salaiya and four neighbouring villages Participants from Badgunda village cluster including four other neighbouring villages Secretary, Pooja Mahila Mandal, Kordaha village, Jharkhand 11 Mr. Hiranmai Yadav New generation cocoon Trader, Inaravaron village, Bihar To understand the functioning of the center and concerns of women reelers To understand the process of creating Arjuna plantations for Tasar rearing on private wastelands To understand the functioning of NABARD-TDF pilot project for providing year-round employment to the villagers To understand the functioning of spinning group in the village and spinning process at the home of woman spinner To understand the process and economics of aggregating and trading in cocoons at village cluster level Date and Place of interview 10 th April 2014, CFC Bhusiatari, Banka, Bihar 10 th April 2014, Salaiya village, block Katoria, District Banka, Bihar 12 th April, 2104, Badgunda village, block- Chakai, District- Jmaui, Bihar and plantation site 11 th April, 2104, Kordaha village, Saraiyahaat block of Dumka district Jharkhand I9 th Sept 2014, Inaravaron village, Banka district Bihar

119 Annexure 3 Technologies Developed or Under Development at CTR&TI: An Illustrative List Host Plant Technology 1. Revised planting distance: The planting distance for Arjuna/Asan has been increased from 4 x 4 to 10 x 6 or 10 x 5. This has resulted in an increase of leaf harvest from 1.5 kg/tree to 5.6 kg/tree. The seed production has also increased from 450 to 850 DLF/ha. 2. Inter-cropping with Kharif vegetables: The farmer can also use a power tiller between rows to carry out cultural operations and to take an inter-crop during the rainy season which can fetch an additional income of Rs. 5-6,000/-. 3. Vegetative propagation of host plants: This is being developed because in the case of seedling the mother plant is not known. The use of plant nodes have been tested for planting. 4. Improving leaf cover: To increase leaf Cover a 2% spray of urea is recommended. Also soil testing is carried out to identify micro nutrient deficiency. It costs only 10 paisa/tree to add micro nutrients which greatly increases the quality of leaves. 5. Vermicomposting of waste: The twigs and refuse collected after rearing along with weeds are used to make vermi compost. 6. Developing high yielding varieties: A survey was carried out in which seeds of different varieties were collected from different states. The germ plasm consists of 370 accessions of which 217 are genetically different. About 4-5 have been identified which are high yielding and which possess the desirable characteristics. These accessions are being multiplied with the help of seed as well as vegetative propagation. Tissue culture of these accessions has also been initiated and reached callous formation stage. Pre-cocoon Technology 1. Conservation of bio-types: There are 44 varieties (bio-types). Different bio-types are adapted to different climates and locations, e.g. Dhabba in Jharkhand, Modal and Sukinda in Odisha, Railey in Chhatisgarh, Bhandara in Maharashtra and so on. Out of these Dhabba and Sukinda are most commonly exploited and amenable to human handling. 2. Botanical Pesticide: A botanical pesticide called Jeevan Sudha has been developed and recommended for virus and bacterial infection. It is made out of aonla, aleo vera and other botanical ingredients. Neem spray is used against insect pests like canthikona, wasp and yellow fly. 3. Pest forecasting system: A pest forecasting system has been developed based on the trends in climate at various locations and the forecast is provided on the Institute s website ( 4. Bio-control of bacterial diseases: The Institute has also patented a biological control method for dealing with bacterial diseases. Arjuna/ Asan leaves have more than 100 bacteria on the surface. The Institute successfully isolated two bacteria which are antagonistic to bacterial disease. 5. New synthetic product for washing eggs: Another product patented by the Institute The Case of Tasar Silk in Bihar and Jharkhand 117

120 and commercially available in the market is Depuratex. It is a chemical product used to wash the eggs. This also minimizes the spread out disease since the larvae that hatch out of eggs have a tendency to lick the shells. These shells contain a gummy substance called muconium, which has the scope for carrying pathogens with it. This is a simple chemical product developed by the Institute for washing and sanitization which is already in the market and being manufactured by M/s. Biosafe Medical (I) Pvt. Ltd., Ranchi. About 5 ml of the concentrate must be added to 100 ml water before using the product for washing and/ or sanitization. It is specially designed for the convenience of illiterate customers who find it difficult to make precise measurements. 6. Artificial diet for young larvae: A semisynthetic diet called Tasar amrit for the young larvae has been developed in the laboratory using ingredients. It consists of dry leaf powder of the host plant to which sources of protein like soyabean and rajma are added along with glucose, vitamins and some phenol compounds. 7. Outdoor preservation: In this system cocoons are kept in the open under a metal structure covered with ½ wire mesh. The moths remain inside the structure. As compared to the regular method of grainage productivity is increased by 100% (2.5 cocoons are needed to produce 1 DFL while 5 cocoons/dfl are required in the regular method). The reason for improved performance is synchronized emergence and survival of fitters. Also under natural conditions the number of eggs laid is also high at 300 eggs as compared to 180 under artificial conditions. 8. Washing machine for washing of eggs: During grainage 6,000 eggs need to be washed within 3 days which requires 5 labourers. To reduce this drudgery the prototype of a simple egg washing machine has been developed. Using a bucket, plastic brushes and a mixi. The eggs will get dried and sterilized and the cost of labour will also be reduced as only one person is needed to operate the machine. The estimated cost of the machine is about Rs. 6-7,000/-. It is being developed in collaboration with Birla Institute of Technology, Mesra. 9. Developing disease resistant race: An Antheria Mylitta Cytoplasmic polyhydrosis virus (AMCPU) tolerant race is being developed which has in its 6 th generation shown an improved survival rate of 14.34% (starting from 5.89%). The performance of both bivoltine and trivoltine varieties are similar. By December the race will be ready for field trial. It may take another year or two to bring it to the level of commercialization. 10. Dip-stick method for testing Pebrine disease: At the moment the practice is to examine the abdomen of the mother moth and destroy the eggs of infected moths. If Chinese method of piercing the gonad with a stick is used, care should be taken to pierce it at the right spot. Otherwise, the method is not effective. A dipstick method for early and easy detection is being developed. 11. Eradication of Pebrine: Although Pebrine disease has become a major challenge for the Tasar sector it is possible to eradicate it. In the multiplication of spores nucleotides which are building blocks of amino acids are important. Scientists at the Institute have successfully identified two chemicals GDP and PABA which can prevent the formation of nucleotides. If sprayed on the leaves are included in the artificial diet of the larvae this will prevent the multiplication of the spores and result in complete elimination of the disease. The technology is currently in the trial stage. 118 Reel of Fortune Building Inclusive Value Chains

121 Post-Cocoon Technology 1. Counting and sorting machine for cocoons: For better quality of cocoon a counting and sorting machine has been developed at Bangalore (see Institute s website at 2. Machine for conversion of cocoons to weight: Cocoons should be given by weight rather than by numbers as there could be conversion loss in the case of poor quality cocoons. The scientists are working on a machine that would tell the exact conversion possible in a cocoon by weight. 3. Dry reeling Kamdhenu model: The advantage of this model is that at 20 kg it has 1/4 th the weight of the original machine. It is portable occupies less space and needs less maintenance. It is power based and can be adapted to solar energy. Only one person is needed to operate it. Production is at par with existing machines i.e. 200 cocoons/day. It can perform both reeling and twisting operations. 4. Motorized Tasar reeling charka: This machine can be operated by one person only and the productivity is higher at 300 gms/day. It is suitable for women as they can operate it in a sitting position. It is also portable and power can be adapted to solar energy. Re-reeling is not required and it can produce both twisted and untwisted yarn. 5. Cocoon softening technology: Cocoonase protolytic enzymes are secreted by the pupae before emergence of the adult moth begins. These enzymes help to soften the cocoon making it easy for the adult moth to push itself out. In the laboratory this enzyme was collected and first used for softening of the cocoons for reeling purpose. After initial success an analogue of the enzyme was developed in the laboratory under a special project in collaboration with the Department of Bio-technology. 6. New enzyme for cocoon softening: In another development through serendipity the scientists found an enzyme which is effective as a softening agent. It costs only Rs. 1-2/packet of 47 gms. This has to be mixed in 1 litre of water and the cocoons are left for 40 minutes in the solution, after this reeling can be initiated. One advantage of this softener is that there is no need for de-flossing. The technology is yet to be patented. It is a commonly available material costing Rs. 308/kg. 7. Developing Sericin as a valuable by-product: Tasar cocoons need to be softened before reeling for which a large quantity of water has to be used. Assuming that 30,000 reelers in Jharkhand are using 200 cocoons/day a total of 60 lakh cocoons need to softened/ day. This will require 10 lakh litres of water/ day. The water consumed, is discarded as waste after the softening process is over. This waste water contains a natural product called Sericin which is used as an anti-ageing material in the cosmetics industry. A litre of waste water contains about 2.53 gms of Sericin. Hence about 37.5 kg of Sericin is lost/day in the state of Jharkhand alone. The cost of Sericin in the export market is 10 USD/gram which amounts to Rs. 22 lakhs. Hence the loss per day works out to Rs crores. Sometime back he had invited private companies like Lakme, for a discussion. They were willing to pay Rs. 6-8 lakhs/kg of Sericin in the raw condition. In China this has become the main product while Tasar yarn is only a by-product. The importance can be gauged from the fact that the only source of Sericin in nature is insects from the family of Lepidoptera. Since all the other insects are in the wild Tasar cocoon provides the only commercial source for collecting Sericin. The Case of Tasar Silk in Bihar and Jharkhand 119

122 Annexure 4 Circular Sent by Member Secretary, CSB, to State Forest Departments 120 Reel of Fortune Building Inclusive Value Chains

123 The Case of Tasar Silk in Bihar and Jharkhand 121

124 Annexure 5 Profile of Reeling Machines Field Tested in 2012 Features CSTRI MRTM (Code - M1) CSTRI Two-In-One Wet reeling (Code - M2) CTR&TI Twin Wooden Charkha (Code M3) CTR&TI Wet Reeling Machine (Code - M4) MASUTA Anna Reeling Machine (Code - M6) Dimension in mm. Driving arrangement 900 X 960 X X 1300 X X 1620X X 950 X X 400 X 700 Motor, Pulley & Belt (Open and accessible) Motor, Pulley, Belt & Gear (Open and accessible) Manual & Gear (Open and accessible) Manual & Pulley (Open and accessible) Motor capacity NA NA 0.05 in HP No. of ends 4 6* 8** (2 Sections) 6* 2 Yarn withdrawal system Reeling speed in mt./ minute Twisting mechanism Twists/ inch if any No. of operators Estimated Price (Rs.) Machine photos Rotation of horizontally placed delivery roller of 10.2 cm dia. Rotation of horizontally placed polymer reel of 21.5 cm dia Horizontal rotation of wooden charkha of 150 cm circumference Rotation of horizontally placed polymer reel of 21.5 cm dia Rotation of bobbin in ring /traveller arrangement Motor, Pulley, Belt & Gear (Closed and not accessible) Rotation of vertically placed double flanged bobbin of 1.25 dia. NA NA NA Rotation of cocoon bowl 4-12 NA NA NA Negligible 1 1 3** ,000/- 47,000/- 7,000/- (to be revised) Not fixed 18,000/- 122 Reel of Fortune Building Inclusive Value Chains

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127 MINISTRY OF RURAL DEVELOPMENT (MORD) The Ministry of Rural Development, Government of India plays a pivotal role in the overall development strategy of the country. The vision and mission of the Ministry is sustainable and inclusive growth of rural India through a multipronged strategy for eradication of poverty by increasing livelihoods opportunities, providing social safety net and developing infrastructure for growth. This is expected to improve quality of life in rural India and to correct the developmental imbalances, aiming in the process, to reach out to most disadvantaged sections of the society. PRADAN PRADAN is a public service organisation working in the endemically poor and backward regions of Central India with collectives of rural poor women in order to help them to achieve an enhanced sense of dignity and well being through sustainable livelihoods. PRADAN seeks to bring about large-scale alleviation in human condition in the poverty pockets and attempts to bring together multiple stakeholders for the purpose. PRADAN s efforts affect over a million and half people directly in about 45 districts of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, West Bengal, and Rajasthan. Revitalising Tasar sericulture has been a successful livelihood initiative by PRADAN that has transformed the lives of the more than poor tribal families in parts of Jharkhand and Bihar. PRADAN has worked across the entire value chain of tasar to reduce uncertainty, increase productivity and help poor people retain more of the value added. The Central Silk Board and PRADAN are currently partnering the Ministry of Rural Development in scaling up a tasar sericulture programme. CENTRAL SILK BOARD (CSB) Central Silk Board is a Govt. of India s organization created by an Act of Parliament namely Central Silk Board Act, 1948 (61 of 1948) functioning under the administrative control of the Ministry of Textiles, Govt. of India. The mandated activities of CSB are research and development, research extension, maintenance of four tier silkworm seed production network, leadership role in commercial silkworm seed production, standardizing and instilling quality parameters in the various production processes, promotion of Indian silk in domestic and international markets and advising the Union Government on all matters concerning sericulture and silk industry. These mandated activities of Central Silk Board are being carried out by the 325 units of CSB located in different States. Apart from this, CSB has also been implementing a Centrally Sponsored Scheme viz., Catalytic Development Programme (CDP) with the aim of synergizing and disseminating technologies, innovations developed by its R&D units and incentivizing investments among the stakeholders to enhance production, productivity and quality of silk.

128 Central Silk Board Ministry of Textiles - Govt. of India Professional Assistance for Development Action This publication has been made possible with financial support from Ministry of Rural Development, Govt. of India under Special SGSY Project. Special Swarna Jayanti Grammeen Swarojgar Yojana MoRD