Silkworm Sericulture Subsidy, Loan, How to Apply

What is the Silkworm Sericulture Subsidy, Loan, and NABARD Schemes?

Today, let us discuss Silkworm Sericulture Subsidy, Loan, and Nabard Schemes.

Sericulture is a process that involves rearing caterpillars in order to produce raw silk. The silkworms, which are reared are domesticated ones.

This process of production of raw silk is done in two ways:

  • By taking care of the silkworm from the stage when it is an egg until it becomes a cocoon.
  • By producing the mulberry trees which give the leaves which the worms can depend upon for feeding.

Silk is the raw product in the industry of Sericulture. In India, there is a very good demand for silk. The demand is getting increased abroad too. So, starting a farm of Sericulture is highly beneficial as there are very good profits in this industry. This article is going to discuss the schemes and subsidies which are available to start the farming of Sericulture.

Most of the farmers lack knowledge regarding the loans and schemes which are available to start a Sericulture farm. In order to raise the graph of the production of silk in India, both central government and state governments are providing schemes in large numbers. Moreover, NABARD is also approving loans in association with the financial bodies to promote the rearing of the silkworm.

To promote and boost the industry of Sericulture and to provide encouragement to the farmers, NABARD is approving loans to the farmers and individuals who are eligible for the loan. To get the loan sanctioned by NABARD,  the first thing you need to do is to visit a bank in your locality and get all the formalities of the loan done. Financial bodies such as banks give loans to the farmers or individuals in this way with the support of NABARD.

Silkworm Cocoons.
Silkworm Cocoons.

People who would be eligible for the application of the loan:

  • Farmers
  • Any individual can apply.
  • SHGs
  • The Non-Government Organizations run by unemployed students.

Amenities that are mandatory to apply for a loan of Sericulture:

  • The organizations or any individual should have land which is cultivable. This land can be a leased one or of their own.
  • The facilities available for the irrigation to take place should be adequate for the cultivation of mulberry.
  • The drinking water should be clean with very good disposal of sewage.
  • The facilities of transportation should be good.

Read this: Greenhouse Farming Subsidy, Loan.

Amount of loan for Sericulture Project:

 According to the rules of NABARD, the banks will sanction the amount of the loan depending on the marginal income of the farmer or the individual. If the marginal income is proved to be more than one lakh, then they would be giving 10% t0 16% of it. This percentage may change according to the bank you approach.

The Time period for repayment of the loan:

  • For the production of mulberry, the time span would be 12 months.
  • For the rearing of the house, the time span would be 48 months.
  • For the equipment costs, the time period would be 48 months.
  • For the unit of reeling, the time period would be 84 months.
Silkworm Feeding on Leaves.
Silkworm Feeding on Leaves.

The subsidies provided by the state Sericulture department to the farmers:

Reason  Amount of Subsidy in Rupees
For the production of mulberry in an acre of land 10,000
To construct a rearing shed for the silkworms 2,75,000
To purchase the equipment required for the farm 52,000
To provide the required irrigation facilities to plant mulberry 37,000
For the mechanization of farm 10,500
To purchase the fertilizers which are organic 5,500
Incentives on Production per 1 extra kg 20
Allotment of Medical expenses 1,51,000
To purchase disinfectants 1500
Miscellaneous Costs 10,000

The subsidies provided by the state Sericulture department to the reeling units:

Reason Amount of subsidy in Rupees
For setting up 10 reeling basin multi-end units 7,50,000
For setting up 20 reeling basin multi-end units 12,75,000
For the construction of a shed for reeling 10,500
For the construction of a reedling shed for the cottage basin of 6 by 10 50,000
For the construction of a reeling shed for the multi-end reeling unit which is 6 by 10 50,000
Incentives for the production of Cottage basin silk yarn which is being produced on a charka per kilogram 30
Incentives for the production of Cottage basin Silk yarn, which is being produced on a multi-end reeling unit per kilogram 50
Incentives for the production of Bivoltine Silk yarn, which is being produced by using a multi-end reeling unit per kg 130
Incentives for the production of Bivoltine Silk yarn, which is being produced by making use of an automatic reeling machine per kg 150

Central Silk Board Scheme for the farming of Sericulture:

In order to encourage and support the farmers and the individuals to start a unit of Sericulture, the Central Government has come up with a scheme called the Central Silk Board scheme.

Central Silk Board is a nationwide organization that had its establishment in the year 1949 and works for the development of the silk industry.

Functions of the Central Silk Board:

The main aim of this board is to assist the farmers or the individuals in financial terms so that there would be development in the Sericulture industry. The scheme in which they would be providing financial assistance is called as Catalytic Development Program.

Read this: Kadaknath Farming Guide, Loan, Subsidy.

Advantages of the Catalytic Development Program:

  • The main objective of this program is to make sure that there is an effort with much coordination for the support of the Sericulture in all the stages of production.
  • It improves the quality of the farm along with the production.
  • It helps the farmers in Sericulture by providing support in the markets.

  Eligibility to avail the subsidy of Sericulture:

  • Individuals
  • Farmers
  • Reelers or reeling units
  • Weavers
  • Entrepreneurs

 Subsidy Availing Procedure for Silkworm Sericulture:

  • The candidates who are interested to start a Sericulture farm have to first meet the field staff or the Assistant Director of the Sericulture department to discuss anything about the scheme. He would get some confirmation if he is eligible by doing this.
  • After getting confirmed about the criteria of eligibility, then the zoning officer will recommend his name to the textiles directorate for the approval to take place
  • Then the farmer or an individual has to submit the following documents to get assistance financially from the CSB.
    • Application Form
    • Photocopy of the Aadhaar card/Voter Id
    • A passport size photo which is the latest one.
    • Bank passbook or postal passbook.
    • Photocopy of the documents which belong to the land in which the farmer has chosen to do the Sericulture farming.

Under the program of the empowerment of beneficiary:

  • If the cost of the unit is Rs.7000, then the government would give a subsidy of 100%. That is the Central Silk board provides a subsidy of Rs.7000/-

For the Construction of the shed for silkworms:

  • If the cost of construction of the shed for the silkworms is 6,00,000, then the Central Silk Board would provide a share of 80%, that is it gives the farmer Rs.4, 80,000/-.

For the establishment of the Chawki rearing center

  • If the cost of construction of Chawki rearing center is Rs 11,00,000, then the Central Silk Board would provide a share of 80%, that is it provides a subsidy of Rs.8, 88,000/-

For the establishment of Seri Polyclinic:

  • If the cost of the construction of a unit of Seri Polyclinic is Rs.1,50,000/-, Central Silk Board will provide a share of 80% and the other 20% would be shared by the beneficiary. So, here the central scheme board is offering the farmer a subsidy of Rs.1, 20,000/-.

For the supply of Micronutrients to the Sericulture farm:

  • If the cost of supplying micronutrients to the mulberry plantation is around Rs.1500, the Central Silk Board will take a share of 80% and offer the farmer a subsidy of Rs.1200/

The incentives offered if there is any rise in the productivity of the mulberry crop:

  • For an extra one kilogram of production, there would be incentives of 100%.
  • Moreover, if the cost of one kilogram of silk is Rs.150, then the farmer will get an additional amount of Rs.150/- if he produces one kg extra crop.

Note: The above information may be applied for sericulture loan in Karnataka, sericulture loan in Telangana, sericulture subsidy in Andhra Pradesh, sericulture subsidy in Telangana, sericulture subsidy in Karnataka, sericulture subsidy in Maharashtra, sericulture subsidy in Kerala, sericulture subsidy in Bihar, sericulture subsidy in Madhya Pradesh, sericulture subsidy in Uttar Pradesh, sericulture subsidy in Punjab, sericulture subsidy in Haryana, sericulture subsidy in Gujarat, sericulture subsidy in Rajasthan, sericulture subsidy in West Bengal, sericulture subsidy in Tamilnadu, sericulture subsidy in Uttarakhand, sericulture subsidy in Chhattisgarh, sericulture subsidy in Assam apart from all the stated in India.

In case if you are interested in this: Quail Farming Business Plan.


  1. I want to start silk production business. For this i want to know knowledge about sericulture.
    can i do this?
    pl give me information how can start ?
    is this profitable ?

  2. Hi, my dad had this silk production business long back but we closed and now I want to start it again so i want apply loan and want information and mulberry plant can u plz help me..


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