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The IUP Journal of Agricultural Economics
A Study on the Price Behavior of Cocoon and Raw Silk in Tamil Nadu
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The success of sericulture industry is mainly based on proper and highly efficient marketing which assures good prices to the farmers. Efficient marketing helps in minimizing wide fluctuations in cocoon prices. It is found that fluctuations are due to variations in cocoon quality, absence of quality control, intervention of middlemen and poor marketing facilities. The prices paid to the cocoons continue to hover around within a narrow range, despite the award of prices to different grades of cocoons through bidding in an open auction. Women are preferred because of their nature, patience and hard work and hence they are employed in mulberry garden or silkworm rearing in a grainage or weaving center, etc. However, their work has not always been recognized or rewarded. Though sericulture is lucrative by nature, it faces various problems in aspects of cultivation and marketing. The problems faced by sericulturists mainly relate to insufficient financial support from government agencies, climatic hazards, wide fluctuations in cocoon prices and also, to some extent, inadequacy of extension services. This study reveals problems like rearing sheds, lack of awareness, low literacy level, poor infrastructure, etc. The availability of cocoon throughout the year can ensure the extension agency and the rearer of regular buyers in the market a better price. The better price received by the silk worm farmers is the major reason for the high profitability of the enterprise. On the basis of the findings of the present study, various recommendations have been offered. If these recommendations are followed properly, it will pave the way for increased production of mulberry cocoons, leading to an increase in foreign exchange earnings, besides giving a larger employment opportunity to the farm families, silk yarn reeling silk weavers and the like in the silk industry.

 
 
 

The price of a commodity is its value expressed in terms of a standard monetary unit. Prior to the evaluation of money, the price of a commodity used to be expressed in terms of unit of other commodities available in exchange. The set of prices of all agricultural commodities is termed as agricultural prices. Prices permeate and exert a controlling force on the entire economy. They induce people to work and earn or produce. In countries where consumers and producers enjoy more economic freedom, prices play a greater role compared to centrally-controlled economies. The success of sericulture industry is mainly based on proper and highly efficient marketing which assures good prices to the farmers. Efficient marketing helps in minimizing wide fluctuations in cocoon prices. It is found that fluctuations are due to variations in cocoon quality, absence of quality control, intervention of middlemen and poor marketing facilities. The prices paid to the cocoons continue to hover around within a narrow range, despite the award of prices to different grades of cocoons through bidding in an open auction.

Price analysis is the study of past price movements and the supply and demand factors associated with them. Price analysis is how and why prices behave in a particular manner. It also explains whether there is consistency in the price behavior of commodities over time and space. According to Tomek and Robinson (1981), prices analysis involves the use of a large number of quantitative and economic tools. Farm product prices behave differently as compared to prices of non-farm commodities. The typical behavior of farm product prices results from some basic characteristics of the agricultural sector and farm products. Therefore, it is necessary to look at these basic characteristics to understand the behavior of prices.

Mellor and Ahmed (1968) stated that agricultural prices may play a more important role in signalling to the government the need for greater investment in roads, power supply, extension, research and other parts of the infrastructure of technological change in agriculture.

Singh et al. (1983) inferred that agricultural prices play a dominant role in the economy not only because they command a large share in the national income but also because their contribution to change in the overall prices is more than that of the non-agricultural prices.

 
 
 

Agricultural Economics Journal, Price Behavior of Cocoon and Raw Silk, Government Agencies, Silk Industry, Cocoon Production, Agricultural Prices, Technological Developments, Human Resources, Cocoon Markets, Cocoon Growers, Silk Reeling, Marketing Channels, Cyclical Fluctuations, Crossbreed Cocoons.