Analysis of costs and returns from silk weaving in the state of Assam

Assam is the largest producer of Muga silk amongst the states of India and the state is known for producing high-quality silk since ancient times. The state also has monopoly in producing all four types of silk which creates job possibilities at all stages of the process i.e. growing, raising, reeling and weaving. The present study was conducted in Assam to analyze different costs and returns from silk weaving using cost concepts. The study was conducted at Sualkuchi Development block of Kamrup district of Assam. A total of 100 samples were selected randomly to substantiate the object of the study and entire sample was divided into four size groups based on number of looms owned by the respondents. The findings of the study revealed that the total annual cost per loom was ₹ 41013.79, while the gross income and net income per loom were estimated to be ₹ 68376.91 and ₹ 27363.12, respectively. Overall average variable cost per loom was ₹ 36458.60. Among the variable inputs, cost of yarn accounted for 58.47 per cent of the total variable cost followed by the cost of labour (32.58 per cent), miscellaneous cost (1.32 per cent), cost of electricity (0.92 per cent) and cost of dye (0.88 per cent) respectively.

⓿ Silk weaving was highly cost and labor-intensive enterprise.

⓿ Out of the total cost, the highest cost was incurred for yarn and dye which were the most important variable inputs of weaving.

⓿ Both the net income over variable cost and net income over total cost were seen to have increased with the increase in loom size.