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Seri-Business: Emerging entrepreneurship model in sericulture

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Emerging entrepreneurship model in sericulture

Naveed Hamid

Aina Bhat

 Sericulture is one of India’s and Asia’s oldest sectors. Sericulture is a labour-intensive and commercially desirable agro-cottage, a forest-based industry that falls under the cottage and small-scale market. The end product of this industry is silk. It is particularly well suited to rural residents employed in agriculture, entrepreneurs, and artisans because it needs minimal investment.

It provides income and jobs to the rural poor, especially small-scale farmers and other vulnerable and poorer members of society. Kashmir produces Mulberry and Tasar silk in a non-traditional sericulture state. The growth of bivoltine sericulture has been a priority sector of the Indian silk industry, but progress has yet to reach the targets. One of them is sericulture.

In the state of Jammu and Kashmir, sericulture holds a special place. This is India’s only conventional Univoltine belt capable of processing silk with qualities equal to the finest imported raw silk of standard quality available on foreign markets. Silkworm rearing offers part-time jobs to around 30,000 households, in addition to providing permanent employment to 5,000 people in the public sector. Furthermore, the silk industry employs about 10,000 full-time weavers in about 2,000 private sector units in the valley. As a result, almost 2.15 million workers are employed in this sector, either full-time or part-time. Until 1988, the silk industry was a state monopoly, and farmers received no revenue from the selling of cocoons at the government-set floor price. It was given much thought as to how to reclaim its former glory. The market was de-monopolized, and plant control was passed to farmers with permission to sell surplus leaves and earn money.

The Indian silk industry is one of the largest generators of employment and foreign exchange for the country as sericulture activities spread across 52,360 villages. India enjoys a unique global position in terms of the production of all commercially useful varieties of silk. India is the second-largest producer of silk. Sericulture provided employment to over 9.1 million people in India during FY19.

The Exports of silk and silk products from India reached US$ 291.36 million in 2018-19 and US$ 243.52 million in FY20 (till December 2019). Source: CSB Banglore.

Status of Indian Sericulture Industry

Raw Silk Production 35,468 MT
Employment: 9.2 Million
Size of the Industry Rs 15,000 crores
Credit Flow Rs 500 Crores
Export Earnings Rs. 2100 crores
Raw Silk Imports 3712 MT (Rs.1200 crores)

 

SWOT ANALYSIS

Strengths

  • Rich natural resources & favourable climate
  • Traditional avocation (way of life), rich design
  • Strong domestic demand-pull
  • Rich heritage of handloom weaving & designs
  • Produces all five commercial varieties of silk

Opportunities

  • Adequate domestic demand for output
  • Low investment & moderate returns
  • High labour cost of silk production in other
  • Nations give India a good opportunity
  • The sector is a huge employment provider
  • Availability of efficient m/c & technologies

Weaknesses

  • Highly unorganized & labour-intensive sector
  • Small producers and small converters
  • Primitive/traditional methods/technologies
  • Outdated machinery.
  • Age-old designs & motifs

Threats

  • Fluctuating international silk prices
  • China- the ‘big brother’ is always a threat
  • Inadequate resources at states’ disposal
  • Heavy dependence on a single product
  • Low capabilities of primary producers
  • Fluctuating market demand – recession

Entrepreneurship Concept

Entrepreneurship is a mindset that involves taking calculated chances and confidence in order to achieve a specific aim. It’s a hybrid ability that combines a number of strengths and characteristics. An entrepreneur is someone that has the drive to do or manufacture something unique, organizes production, takes chances, and handles the economic insecurity that comes with owning a company. The collection of such attributes the entrepreneur possesses is called entrepreneurship.

Entrepreneurship in Sericulture

Sericulture is the discipline and practice of silk production. Agriculture and associated farm operations have traditionally been important to the Indian economy. Sericulture, as an agro-based company, has a major impact on rural people’s economic prospects.

It has the potential to generate jobs, especially in rural areas. Sericulture is a multifaceted industry that includes food plant cultivation (mulberry leaf processing), silkworm rearing (cocoon production), silkworm egg production, silk reeling (yarn production), spinning, warp and weft production, printing and dyeing, weaving (fabric production), finishing, textile design, and marketing etc. The industry encompasses a wide range of on-farm and non-farm activities, necessitating a wide range of expertise, as well as a varied population of people, and bringing people from all walks of life together to work on silk processing. Sericulture is a year-round activity with a variety of career openings. Sericulture is a low-cost, high-yielding crop that produces five to six crops per year. With minimum upkeep, the mulberry plantation will yield reliably for the next 15-20 years. India currently earns over Rs 4,000 crores from the sale of silk fabrics, waste, and garments. Aside from high export potential, silk has a strong domestic demand and a strong handloom base combined with artisan abilities, which is India’s true strength of the Indian sericulture industry.

Sericulture has a significant socioeconomic effect and has the potential to change people’s lives by creating viable and long-term job opportunities. Since it entails a variety of methods, from mulberry plantation to silkworm rearing, spinning, spinning, and selling, it employs a vast number of people, including women. Sericulture has the potential to offer gainful jobs to more than 15 Lac citizens in the state if it is encouraged on a larger scale through value addition.

The various entrepreneurial opportunities in the sericulture industry starting from leaf to fabric production are hereunder discussed:

Raising high-yielding mulberry saplings, silkworm egg preparation and supply, Chawki rearing (young age silkworm rearing), cocoon processing, silk reeling, Zari manufacturing, sericulture byproduct recycling, cocoon and silk-based handicrafts, the silk trade, cocoon crafting and Pet Food, Protein diet foods, and so on.

It is clear that the sericulture industry provides outstanding job prospects as well as a variety of entrepreneurship opportunities. Sericulture, as an agro-based company, plays a significant role in determining the economic fate of rural people and fits well into India’s rural system, where agriculture remains the primary occupation. Sericulture provides job opportunities not only for rural residents but also for skilled youth in semiurban and urban areas. Sericulture development would undoubtedly result in a thriving rural by providing income-generating entrepreneurship opportunities, thus reducing poverty and halting rural-to-urban migration.

Suggestions for boosting the Entrepreneurship in Sericulture:

  • Up gradation of Departmental Nurseries/ farms to improve Mulberry saplings /leaf production
  • Cocoon and Silk yarn marketing support system to the local Reelers.
  • Enhancement in Cocoon Bank Revolving fund
  • Infrastructure development at Farmers’ level
  • Popularizing Multi cropping and green marketing
  • Incentive on cocoon and silk production to farmers/reelers
  • Infrastructure development/up-gradation support
  • Introduction of cocoon crop insurance scheme
  • Development of Integrated Silk parks.
  • Silk Branding push.
  • Private Sector Involvement.
  • R&D from Research Institutes with Skill developments through capacity buildings.

Encouraging the young talent to take up entrepreneurship as a career (Seri-Business)

To inspire young people to engage in entrepreneurship ventures, a variety of methods have been used. Many young people today have business ideas, but only a small percentage of them have the capacity and opportunity to transform such ideas into profitable enterprises. The ability of youth to transform their inventions into businesses is critical to the future of small business start-ups. The ability to recognize an advantage and put it to use is largely dependent on the youth’s willingness to engage in such entrepreneurial practices. Participation in entrepreneurial educational programs has a strong impact on the desire to launch a new company.

To make the dream business a reality, youths need inspiration from all stakeholders, including the government, lecturers, families, friends, and religious groups, either by funding or other support mechanisms. As a result, many young people who are willing to take the risk of starting a new business are concerned about access to resources such as funding and inspiration.

Starting a Seri-Business Startup

The phases of starting a profitable company begin with identifying the motivations or commitments for starting one. After acquiring such motives, the next step is to discover a viable idea. This idea must be attractive and validated on whether it can meet customer needs. The next step is to look for the necessary resources required such as materials, source of funding and quality suppliers. The final part is to apply the plan by getting into full business and then build a professional network to sustain the venture. This model is divided into four basic success components. These factors are idea and market, motivation and determination, resources and ability.

Emerging entrepreneurship model in sericulture

                             Entreprenurship activities Framework Model

 

AgriBiz

Deteriorating legacy of saffron industry in Kashmir

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Saffron industry in Kashmir
Athar Ayoub
Dhaar Mehak M  

Saffron industry in Kashmir

One of the oldest and yielding family occupations prevalent in the valley of Kashmir has been the cultivation of Saffron. The karewas of Pampore are internationally known for the quality and quantity of saffron across the world. Through the ups and downs of time and periods of natural and man-prompted disasters, this sector has been quietly yielding a stable and rather steadily growing output over the period of time. Generations after generation have been associated with the cultivation and rearing of saffron. People across the binary gender, residing predominantly in the Pampore area have been habitually and evolutionarily working in this sector.

On the technical side, though India ranks second only after Iran in terms of productivity of cultivation in Saffron it ranks seven. This points to the existence of huge inefficiency in the saffron production of the country. For years at a stretch, there has been under-production happening in the saffron production of the country. More than 90% of India’s saffron cultivation comes from Kashmir, estimated to be around 15.04 metric tonnes (MT) for the year 2021. However, for the last fifty years, there has been a considerable decline in both the cultivable land and the overall Saffron productivity in the valley of Kashmir. While in the year 2009, the total area under cultivation for Saffron was 2667 hectares with a production of 5.61 tonnes, almost a decade earlier in 1997 it was 5707 hectares and 15.97 tonnes respectively. These numbers highlight a decline of 114% in area and 184% in yield in a time period as short in span as 12 years.

For years at a stretch, there has been under-production happening in the saffron production of the country. More than 90% of India’s saffron cultivation comes from Kashmir, estimated to be around 15.04 metric tonnes (MT) for the year 2021. However, for the last fifty years, there has been a considerable decline in both the cultivable land and the overall Saffron productivity in the valley of Kashmir. While in the year 2009, the total area under cultivation for Saffron was 2667 hectares with a production of 5.61 tonnes, almost a decade earlier in 1997 it was 5707 hectares and 15.97 tonnes respectively. These numbers highlight a decline of 114% in area and 184% in yield in a time period as short in span as 12 years.

Results like these are an outcome of a number of factors that have cumulated over the years. Some of the most commonly identified factors include; lack of availability of good-quality corms as seed material, poor soil fertility, lack of assured irrigation, infestation by rodents and diseases, poor postharvest management, improper marketing facilities, increased urbanization on saffron land, the helplessness of the Government in checking adulteration and clandestine smuggling of cheap saffron (allegedly from Iran), which is later sold and marketed in the name of Kashmir saffron.

Simultaneously from time to time, certain measures have been put in place to restrain the underproduction in Saffron cultivation, so as to bring in a change and reach as closer to the potential output as possible. The fundamental channel of intervention and attainment of the aspired output is from the government directly to the grower. Quite contrary to this, the existence of intermediaries leads to multiple failures towards the attainment of the prosed outcomes. Analysing the current trends, it turns out that in the past decades the maximum marketing margins were accumulated within the pockets of intermediaries (retailers and agents) followed by wholesalers, leaving the primary saffron growers with an unfair share of their very own produce.

The saffron growers reveal that in contemporary times the causes of less productivity across the Kashmir region are: climate change, non-availability of timely irrigation and information asymmetry between those framing the policies for the farmers and the farmers themselves. Though the government has been initiating measures to revamp the damage, the Saffron cultivators conclude that almost 60% of the land under which saffron is cultivated was brought under a pipeline network scheduled to irrigate the land. However, in practice, the project has been full of flaws and thus ended up failing miserably. Leaving the land yet again to the mercy of timely and untimely rains. The saffron growers in the first place lack scientific knowledge, do not have access to modern know-how and technology and at the same time lack all sorts of trust over the government. One such typical example is the sale of hybrid saffron corms that the government announced some years ago. Given the mistrust between the people and the government, it was rumoured that the sowing of the hybrid saffron corm distributed by the department of agriculture will transfer the private property rights of the owners to the government. As a result, the vast majority of saffron cultivators didn’t take those corms and the productivity and output ended up remaining under-attained.

Whatever interventions the government and administration intend to make, the campaign of enhancing the productivity of saffron would not bear the desired results unless for starters a certain level of trust is established between the saffron cultivators and the government. Following this, facilities for assured irrigation need to be created, at least at the pre-sprouting and pre-flowering stages. Irrigation facilitates lead quick activation of buds, further leading to the corm sprouting and the eventual timely flower initiation. An empirical study by Nehvi (2004), and Nehvi and Makhdoomi (2007b) bring forth the fact that an annual saffron crop requires an average of 10 irrigations, and needs to be sprinkler irrigated for seven days at the sprouting stage (which is approximately around 25th August to 15th September) followed by three irrigations at the post-flowering stage (around 8th to 30th November) at weekly intervals.

In a recent and rather unusual move, the Government of India initiated a National Saffron Mission (year) with a financial outlay of Rs 3.74 billion for resolving the saffron crisis in Kashmir through different programmes. This program includes rejuvenating saffron farms by corm re-planting, digging bore wells for irrigation, and setting up a modern Saffron Park with a quality control laboratory for providing adequate marketing cover to saffron growers, thus eliminating exploitation by middlemen. However, from the ground, there are mixed reactions and opinions coming from the farmers about the initiation and implementation of the mission. The actual attained outcome from this mission and its various programs is yet to be ascertained for success or failure.                                                        Saffron Industry in Kashmir.

Saffron Industry in Kashmir

Case-Study

“The JK Agro” is a registered saffron firm which has been gainfully employing generations of the Khanday family from Pampore. It has been around six years since the third generation has overtaken the business. The upcoming generations from the saffron families have been trying to expand and diversify the business. One of the most common channels has been through proper marketing, e-marketing and processing of the saffron and allied products. JK Agro, in an attempt to expand, has been making huge investments. But the major hurdle faced by it in attaining the expected growth has been the declining productivity of output. As a result, the younger generation of small and medium-scale saffron farmers have steadily been moving out from the industry and instead looking for other sources of employment. However, families like Khanday’s are of the opinion that complete dependency on saffron might not be enough to fulfil their subsistence needs and hence are trying hard to find jobs distant from their ancestral domain…

Given the various facets discussed above, the broader conclusion drawn is that the decline in the cultivable land and productivity of saffron in Kashmir is the basic reason behind the ever-increasing crisis in the heritage-saffron industry of Kashmir. The most appropriate channel to win back the industry and the people associated with it is to stake strict actions towards the restoration of the karewas land and to scientifically enhance the overall productivity of the saffron in the Kashmir region.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology and can be reached at dhaarmehak@gamil.com

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Digital marketing skill training for agri-startups commences at SKUAST-K

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Digital marketing skills
BK News

Srinagar, Dec 5: A weeklong advanced management development programme (AMDP) on ‘Digital Marketing Skills for Agri-Startups’ commenced on Monday at Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir Shalimar campus.

The seven-day digital marketing training is organised by SKUAST-K’s School of Agricultural Economics and Horti-Business Management, Faculty of Horticulture under the Ministry of Micro, Small and Medium Enterprises (MSME) sponsorship.

Vice Chancellor, SKUAST-K, Prof Nazir Ahmad Ganai, who was the chief guest at the inaugural function, emphasised upon outcome-based delivery of the programme and suggested that each participant should be evaluated in each session to ensure better assimilation of the content. Pointing out the existence of a 95% unskilled labour force, he stressed the need for required digital skills. He informed that SKUAST-K will be shortly starting the three-month programme on Digital Marketing in collaboration with DMI, Australia. He asked the participants to take full advantage of the resource persons, who have come from the reputed institutions of the country like IITs.

Director, Planning and Monitoring, Prof Haroon Rashid Naik emphasized imparting precision to the conduct of Advanced-MDP and desired industrial representation and participation in these programmes.

Dean, Faculty of Horticulture, Prof Shabir Ahmad Wani highlighted the need for encouragement of gender-based digital spaces. He also stressed the need for the utilisation of digital spaces for farm-based products.

Head, School of Agricultural Economics and Horti-Business Management, Prof SH Baba, in his welcome address, gave an overview of the programme. He brought out the need for acquiring high-end digital and IT skills for switching to new market jobs by 2030-31 in view of apprehension of job losses due to automation.

Assistant Director, MSME Development and Facilitation Office Srinagar Branch, Ministry of MSME, Saheel Yaqoob Allaqband, who addressed the gathering via online mode, gave a brief account on the importance of Advanced-MDP suggested that the participants should be trained in innovative DPR formulation and attract funding options for their business units.

SKUAST-K’s Director Extension Prof Dil Mohammad Makhdoomi, Director Education Prof MN Khan, Director Research Prof Sarfaraz Ahmad Wani and many other HOD and officers of the university were present at the occasion. The organising secretary of the programme, Dr Omar Fayaz Khan, presented the vote of thanks.

About 30 participants from FPOs, food processing units, Agri-supply chains, aspiring agripreneurs and students are participating in the training.

Under the sponsorship of the Ministry of Micro, Small and Medium Enterprises (MSME), SKUAST-K is conducting 66 advanced skill development courses for entrepreneurship in various agricultural and allied vocations.

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Can kiwi cultivation prove alternative to apple production in Kashmir?

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Can kiwi cultivation prove alternative to apple production in Kashmir?

Dhaar Mehak M

Misbah Bashir

The horticulture sector is seen as the backbone of the Kashmir economy steadily replacing the tourism sector in terms of sustainability and future prospectus. Given the environmental feasibility, Kashmir has been identified as one of India’s most dynamic horticulture hotspots. During the final decades of the 20th century, the region of Kashmir has seen a steady shift from paddy cultivation to apple cultivation. For quite some time the output and outcomes from the orchards of Kashmir have been high. This has ushered in a wave of optimism and people have been heavily investing in high-yielding apple varieties. More or less on an annual basis, people have revealed satisfaction with the outcomes.

Can kiwi cultivation prove alternative to apple production in Kashmir?

The year 2022 has been identified as a bumper year of apple production in Kashmir (apart from other horticulture products). The apple blooms in spring were studied and identified by the experts where it was predicted that the year from across the valley was going to deliver a bumper crop. A wave of happiness ad optimism ran in the supply chain from orchardists to the dealers. Given the demand and pricing trends of previous years, the expected outcomes from 2022 were anticipated to surpass the mean value of the previous decades by a double-digit. However, as the output was ready and entered the market, the returning price was the lowest registered in the previous decade. Among many other factors, a predominant factor behind this was the bulk Indian import of Iranian and Turkish Apples that captured the market and wiped out the demand for Kashmiri apples.

Looking through an alternative economic and horticultural lens, the complete reliance on apples as the sole and dominant outcome of the horticulture sector in Kashmir is a risk of putting all the eggs in one basket. The first step to diversification has been identified as a steady production of kiwi fruit. In contemporary times the only state that is producing kiwis in India is Himachal Pradesh. Lately, Himachal orchardists have realized that diversification is important, and the immediate consequence has been a steady shift to kiwi production. The environmental conditions in both Himachal and Kashmir are equally preferable for kiwi production.

Can kiwi cultivation prove alternative to apple production in Kashmir?The plantation season for kiwi trees is February and March, while the irrigation season is May to July. The plantation takes much less land space than the apple trees. Vegetables and other seasonal crops can be grown in-between the kiwi tress. There are no pesticides of any kind needed for kiwi plantations while on the other hand the apples of all types highly rely on a number of pesticides, insecticides and herbicides. This quality makes kiwis organic in nature, better fitting the contemporary market demand. The overall maintenance of kiwi plantations is much easier and cheaper as compared to that of apples. At the same time, the demand and prices for kiwis in the local, national and international markets is much stable as compared to that of apples.

In the first week of November the average price of 18 kgs of Apples in Sopore Mandi peaked at Rs.350 which doesn’t even cover the half basic price of production. Quite contrary to this, one unit of kiwi costs Rs.35 in the local market and one kiwi plant yields 70 kg of kiwis on an average. One kg of dried Kiwis costs Rs.1800 in the market. And the demand for kiwis is very high both in the national and the international markets.

At the moment, SKUAST-K is actively researching in the direction of improvising the kiwi plantation suitable specifically to the Kashmir region. Simultaneously, sale of the kiwi trees is carried-out from time to time. Lately a small number of orchardists from the Baramulla and Sopore area of North Kashmir have been steadily diversifying towards kiwi production. However, during their experimental stages, they are more than happy with their outcomes. The market value of the output has been promising and so is the durability of the output. The kiwi packaging however is different from that of the apple packages and the kiwi farmers of Kashmir complain that at the moment they are not able to find the required packaging solutions.

Can kiwi cultivation prove alternative to apple production in Kashmir?Putting all these factors together, kiwi production can be the next big horticulture venture of Kashmir. Risk minimisation is the first and far most expected benefit from this diversification. If due to some market fluctuations, apples fail to fetch the required price in the market the kiwi market can come to cushion and minimize the damage and losses. The second expected spill-over of kiwi diversification can come in the form of growth in the local corrugated industry. In the present time, the Kashmir corrugation industry mostly specializes in the production of apple boxes. However, with the growth of kiwi production, the corrugation industry will get to diversify and increase its output and employment potential. The cold-store industry of Kashmir is also expected to grow with the growth of kiwi production as the local producers can control the market supplies from time to time in light of the expected profits. The kiwi processing units also have a very high potential of starting up in the region.

 

The authors are affiliated to the Department of Economics, Islamic University of Science and Technology Awantipora & can be reached at dhaarmehak@gmail.com & misbahbashir1223@gmail.com

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