Economics of Ericulture

Cost and return structure for castor-based ericulture on one acre in Assam, at 2025-26 prices, covering four crops in the year from 400 dfls. Labour is costed at ₹ 385 per man-day (MD).

Plantation establishment cost

#	Particulars	Unit	Qty	Rate (₹)	Value (₹)
A. Land development
1	Land development using power tiller	Lump sum			1,500
2	Green fencing	Lump sum			2,000
3	Pit digging (4,000 pits)	MD	8	385	3,080
4	Castor seeds	kg	2	200	400
	Sub-total				6,980
B. Cost of inputs
1	Urea	kg	54	12	648
2	SSP	kg	101	12	1,212
3	MOP	kg	13	24	312
4	FYM / vermicompost @ 0.1 cft per plant	cft	400	10	4,000
5	Application of inputs, basin formation and cultural operations (three times a year)	MD	62	385	23,870
6	Plant protection chemicals	Lump sum			1,200
	Sub-total				31,242
	Total establishment cost of plantation				38,222

Rearing costs

#	Particulars	Unit	Qty	Rate (₹)	Value (₹)
A. Fixed cost
1	Rearing house (thatched)	No.	1	50,000	50,000
2	Platform with stand	No.	4	1,800	7,200
3	Mountage (plastic)	No.	100	80	8,000
4	Sprayer	No.	1	2,000	2,000
	Total fixed cost				67,200
	Depreciation on building and equipment @ 10 %				6,720
B. Variable cost
1	Silkworm seed (for four crops)	dfls	400	9	3,600
2	Disinfectants	Lump sum			1,200
3	Labour — cleaning and disinfection of rearing house	MD	4	385	1,540
4	Labour — rearing operations	MD	112	385	43,120
5	Labour — removal of pupae	MD	32	385	12,320
	Total variable cost				61,780
	Total cost of silkworm rearing (depreciation 6,720 + variable 61,780)				68,500

Revenue and returns

#	Particulars	Unit	Qty	Rate (₹)	Value (₹)
1	Sale of cocoons @ 10 kg per 100 dfls	kg	40	900	36,000
2	Sale of pupae @ 70 kg per 100 dfls	kg	280	600	1,68,000
	Total return				2,04,000
	Total cost (plantation 38,222 + rearing 68,500)				1,06,722
	Net return				97,278
	Benefit–cost ratio				1.91

Read this before quoting the ratio. Pupae account for about 82 % of gross revenue in this model, so the return depends heavily on an assured outlet for pupae at ₹ 600 per kg. Where pupae cannot be sold, the unit realises only the cocoon revenue and the benefit–cost ratio falls below unity. Wages and fertiliser prices vary over time with economic, political and environmental factors.