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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 290la-IN
INDIA
KARNATAKA SERICULTURE PROJECT
STAFF APPRAISAL REPORT
May 14, 1980
Agriculture D DivisionSouth Asia Projects Department
This document has a restricted distribution and may be used by
recipients only in the performance oftheir official duties. Its
contents may not otherwise be disclosed without World Bank
authorization.
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CURRENCY EQUIVALENTS
US$1.00 = Rs 8.40 1/
WEIGHTS AND MEASURES
Metric System
PRINCIPAL ABBREVIATIONS AND ACRONYMS USED
ADS = Assistant Director of SericultureARDC Agricultural
Refinance and Development CorporationCB Commercial BanksCSB =
Central Silk BoardCSRTI = Central Sericultural Research and
Training InstituteDCCB District Cooperative Central BankDOS
Department of SericultureGOI Government of IndiaGOK = Government of
KarnatakaIDBI Industrial Development Bank of IndiaISDP Intensive
Silk Development ProjectKSIC Karnataka Silk Industries
CorporationKSSDI Karnataka State Sericultural Development
InstituteLDB Land Development BankPRC People's Republic of ChinaPWD
Public Works DepartmentRBI = Reserve Bank of IndiaSA = Sericulture
AssistantSD Sericulture DemonstratorTSC Technical Service
Center
FISCAL YEAR
GOI and GOK - April 1 - March 31ARDC, IDBI and Cooperative Banks
- July 1 - June 30Commercial Banks - January 1 - December 31
1/ Until September 24, 1975, the Rupee was officially valued at
a fixedPound Sterling rate. Since then it has been fixed against a
"basket"of currencies. As these currencies are floating, the US
Dollar/Rupeeexchange rate is subject to change. Conversions in this
report arebased on the projected exchange rate during the project
period.
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FOR OFFICIAL USE ONLY
GLOSSARY
Basin - Part of a silk reeling machine in which cocoons float in
warmwater.
Bivoltine - Silkworm varieties from temperate climate countries
whichbreed only twice a year and whose eggs exhibit dormancy.
Charka - Simple, hand driven silk reeling machine with one basin
andfour to six ends.
Chawki - South Indian name for very young silkworms.Cocoon -
Silk capsule formed by silkworm larva in which it spends
pupa stage.Cottage Basin - Mechanized silk reeling machine used
in villages. Each unit
has six to ten basins each with six ends.Degumming - Removal of
sericin from silk waste.
Denier - Grams silk per 9,000 meters yarn or filament, used as
measureof silk yarn or cocoon filament thickness.
Ends - Part of silk reeling machine where several cocoon
filamentsare combined into silk yarn.
Filature - Large-scale silk reeling factory.Grainage -
Establishment for silkworm egg production.Hatchery - Communally
operated village establishment where eggs
hatch into silkworms.Laying - Egg production from one female
moth.Multivoltine - Tropical silkworm varieties which breed
throughout the
year and whose eggs have no dormancy.Raw Silk - Silk yarn, after
reeling.Renditta - Measure of silk recovery from cocoon; ratio of
kg cocoons
needed to reel 1 kg raw silk.Sericin - Gummy substance which
binds filament together on cocoons
and also binds silk waste fibers together.Silk Recovery -
Reciprocal of renditta.Silk Waste - By-product of silk reeling and
raw material for spun silk.Spun Silk - Silk yarn prepared from silk
waste by degumming, combing
and spinning process, similar to that used for wool.Univoltine -
Similar to bivoltine silkworm varieties, but breed only once
during the year.
Note: Paragraph 1.06 of this report contains a brief description
ofthe silk production process.
This document has a restricted distribution and may be used by
recipients only in the performanceof their official duties. Its
contents may not otherwise be disclosed without World Bank
authorization.
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INDIA
KARNATAKA SERICULTURE PROJECT
Table of Contents
Page No.
I. THE SECTOR ........................................ 1
General ........................................... 1
Sericulture in India .............................. 1
The Silk Production Process ..... .................. 2
Mulberry Cultivation .............................. 2
Silkworms and Silkworm Rearing ..... ............... 3
Cocoon Marketing and Processing .... ............... 4
Government Programs ............................... 6
Mulberry Silk Research and Technology .... ......... 6
II. SILK PRODUCTION IN KARNATAKA ......................
7Agriculture in Karnataka .......................... 7
Silk Production Area .............................. 8
Topography, Climate and Soils ..... ................ 8
Production ........................................ 9
Holding Size and Tenure ........................... 10
Reeling ........................................... 10
Department of Sericulture (DOS) .... ............... 10
Credit ............................................ 12
III. THE PROJECT .. 13
Project Genesis .. 13
Project Summary .. 13
Silk Production .. 15Silk Processing .. 17
Karnataka Silk Industries Corporation Facilities 17
Research and Technical Assistance . .18Land for Project
Facilities . .20
Environmental Aspects . .20Project Phasing .. 20
This report is based on the findings of a preappraisal
mission
consisting of Mr. Ducksoo Lee and Ms. J. Stockard (IDA) and
Messrs. T. Omura,
T. Kuwano and Y. Arakawa (Consultants) which visited India in
February 1979;
and of the appraisal mission consisting of Messrs. G. Stern,
J.C. Goldbrenner
and Ms. J. Stockard (IDA) and Messrs. T. Omura, T. Miyazaki, and
R.G. Deshpande
(consultants) which visited India during September/October
1979.
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Page No.
IV. COST ESTIMATES, FINANCING, PROCUREMENT ANDDISBURSEMENTS
..................................... 21Cost Estimates
.................................... 21Financing
......................................... 22Procurement
....................................... 22Disbursement
...................................... 23
V. ORGANIZATION AND MANAGEMENT .......................
24Department of Sericulture ......................... 24Department
of Agriculture ......................... 25Karnataka Silk
Industries Corporation (KSIC) ...... 25Research ...... - ..
................ 26Credit for KSIC through the
InoustrialDevelopment Bank of India (IDBI) .... ............ 26
Credit for Silk Farmers and Silk Reelersthrough ARDC
.................................... 27
ARDC and IDBI Interest Rates ...................... 28GOI
Ministry of Industries ........................ 28Training
.......................................... 29Project Coordination
.............................. 29Reporting Requirements and
Evaluation .... ......... 30Accounts and Audits
............................... 30
VI. PRODUCTION, MARKET AND PRICES ..................... 31Yields
and Production ............................. 31World Production,
Consumption and Trade .... ....... 31Exports and the Domestic
Market in India .... ...... 32World Raw Silk Price Projection
................... 33Indian Domestic Prices
............................ 33
VII. FINANCIAL PROJECTIONS .............................
34Karnataka Silk Industries Corporation .... .........
34Departmental Filature ............................. 35Cottage
Basins for Private Reelers .... ............ 35Farm Models
....................................... 35Cost Recovery
..................................... 37
VIII. BENEFITS AND ECONOMIC EVALUATION ..................
37Benefits .......................................... 37Economic
Evaluation ............................... 38Project Beneficiaries
............................. 39Project Risks
..................................... 41
IX. RECOMMENDATIONS ................................... 41
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Table of Contents (Cont'd)
Schedule A - Lending Terms and Conditions
Annex 1 - Text TablesTable 3.1 Implementation Schedule Major
Items
Table 6.1 World Cocoon and Raw Silk ProductionTable 6.2 World
Raw Silk ConsumptionTable 6.3 World Raw Silk Exports and
ImportsTable 6.4 Indian Mulberry Silk Production and Exports
1960-1978Table 6.5 Japanese Imported Raw Silk and Silk Waste Prices
1971-1979
Table 6.6 Financial Price Projection for Raw Silk
Annex 2 - Project Cost TablesTable 1 Project Cost Summary with
PhasingTable 2.1 Grainages: Estimated Costs and PhasingTable 2.2
Hatcheries: Estimated Costs and PhasingTable 2.3 Model Hatcheries:
Estimated Costs and PhasingTable 2.4 A. Technical Service Centers:
Estimated Costs and Phasing
B. Mobile Demonstration Units: Estimated Costs and PhasingTable
2.5 Training Schools: Estimated Costs and PhasingTable 2.6 Cocoon
Markets: Estimated Costs and PhasingTable 2.7 Departmental
Filature: Estimated Costs and PhasingTable 2.8 DOS Incremental
Administrative CostTable 3.1 KSIC Filature: Estimated Costs and
PhasingTable 3.2 KSIC Spun Silk Mill: Estimated Costs and
PhasingTable 4 Research: Estimated Costs and PhasingTable 5
Technical Assistance and Study Tours: Estimated Costs and
Phasing
Annex 3 - Schedule of Estimated Disbursements
Annex 4 - Financial AnalysisTable 1 KSIC Cash Flow Projections
and Financial Rate of Return
Table 2 KSIC Consolidated Income Statement ProjectionsTable 3
KSIC Balance SheetTable 4.1 KSIC New Filature Estimated Operating
ProfitTable 4.2 KSIC Spun Silk Mill Estimated Operating ProfitTable
4.3 KSIC Weaving Plant Estimated Operating ProfitTable 4.4 KSIC
Existing Filatures Estimated Operating ProfitTable 4.5 KSIC
Twisting Mill Estimated Operating ProfitTable 5.1 KSIC Workshop:
Estimated Operating CostsTable 5.2 KSIC Headquarters: Estimated
Operating CostsTable 6 Departmental Filature: Estimated Net
Operating Profit
and Financial Rate of ReturnTable 7 Cottage Basins: Projected
Reeler Income and Financial Returns
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Table of Contents (Cont'd)
Table 8.1 0.5 Ha Irrigated Farm Model: Projected Income and
FinancialReturns
Table 8.2 1 Ha Irrigated Farm Model: Projected Income and
FinancialReturns
Table 8.3 0.5 Ha New Irrigated Farm Model: Projected Income
andFinancial Returns
Table 8.4 1 Ha Rainfed Farm Model: Projected Income and
FinancialReturns
Table 9 Departmental Facilities: Staff Salaries and Phasing
Annex 5 - Economic AnalysisTable 1 Economic Rate of Return to
the ProjectTable 2 Price Summary for Financial and Economic
Analysis
Annex 6 - Industrial Development Bank of India
Annex 7 - Related Documents and Data Available in the Project
Files
List of Charts
Chart No. WB 21296 - Proposed Organization Chart, Karnataka
Department ofSericulture
Chart No. WB 21295 - Proposed Organization Chart, Karnataka Silk
IndustriesCorporation
Chart No. WB 21297 - Project Organization Chart
Chart No. WB 21303 - Department of Sericulture Implementation
Schedule ofMain Project Activities
Chart No. WB 21387 - Project Initiation, KSIC, Technical
Assistance andOverseas Training Implementation Schedule of
MainProject Activities
Chart No. WB 21629 - Research Implementation Schedule of Main
ProjectActivities
List of Maps
IBRD 14378R - Karnataka Sericulture Project
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INDIA
KARNATAKA SERICULTURE PROJECT
I. THE SECTOR
General
1.01 Agriculture is the dominant sector of the Indian economy.
Itcontributes 45% of the GNP, provides about 70% of the country's
employmentand is the basis for almost 60% of its export earnings.
Most of the 160million ha cultivable land in India is devoted to
foodgrains, pulses andoilseeds, but industrial crops such as
cotton, jute, tobacco and seri-culture, plantation crops such as
tea, coffee, rubber, coconuts andcashewnuts, and a large range of
spices and horticulture crops are importantin some states and make
a sizeable contribution to the Indian economy.
1.02 During the last decade, Government of India's (GOI)
developmentplans have emphasized agriculture, particularly
foodgrain production, byincreasing use of irrigation, fertilizers,
plant protection and good seeds,backed by improved extension and
research services. Although productionhas responded impressively,
leading to the build up of large reserve grainstocks, considerable
further efforts are needed to insure the long-term foodsupply.
Consequently, GOI is again giving high priority to foodgrain
pro-duction in its Draft Sixth Five-Year Plan. However, the plan
also emphasizesalleviation of rural unemployment and poverty and
therefore includes invest-ment for labor intensive subsectors such
as sericulture.
Sericulture in India
1.03 India ranks fifth among silk producing countries after
Japan, thePeople's Republic of China, Korea and the USSR and
sericulture holds animportant place in the Indian economy. About
3.8 million people are engagedin plant cultivation, silkworm egg
production and rearing or in the predomi-nantly small-scale reeling
and weaving industry. In 1978 production reached3,700 tons raw silk
used to manufacture fabrics with an estimated value ofbetween
US$200 and US$250 million. Since silk is rooted in Indian
socialtradition, the domestic market is strong and most of the
production is usedlocally. However exports, mostly fabrics, have
expanded, particularly overthe last five years and earned about
US$45 million in 1978.
1.04 Four silk varieties 1/ are produced in India--mulberry, 2/
tasar, 3/eri, 4/ and muga. 5/ Of these, mulberry silk, representing
the bulk of inter-nationally traded silk, comprises about 85% of
total Indian silk production.Introduced into India in ancient
times, mulberry silk production received someemphasis during World
War II for parachute production, but started to expandmarkedly only
two decades ago and has received a boost during the last five
1/ Derived from different silk worm varieties feeding on leaves
of:2/ mulberry bushes or trees,3/ a variety of trees chiefly oak,
Terminalia and Sal,4/ castor or cassava, and5/ several tree species
indigenous to Assam.
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years, due to introduction of improved mulberry and silkworm
varieties.Karnataka accounts for 74% of Indian mulberry silk.
Therefore, large scaleexpansion there, which would be supported by
the project, would have a majorimpact on Indian production.
1.05 Sericulture is highly labor intensive. One hectare of
mulberryplantation creates 12-13 man-years of direct employment
annually in mulberrycultivation, silkworm rearing, reeling,
twisting, weaving and implementsfabrication. Development of
sericulture therefore accords well with GOIpriorities for
alleviating unemployment and rural poverty. Furthermore, thetime is
propitious for expanding Indian sericulture since production is
drop-ping in the countries of leading producers, notably Japan and
Korea, due tohigh labor requirements and costs. India has other
advantages over competitorproducers, notably an ample supply of
suitable land, not available in Japan,for instance, and year-round
production (up to seven silkworm rearings) com-pared to seasonal
production (two to three rearings) in temperate
countries.Consequently, GOI has included sericulture development
programs in its DraftSixth Plan (1978/79-1982/83) to double
production and exports. The projectwould contribute significantly
to achieving these objectives.
The Silk Production Process
1.06 Sericulture, which in this report refers to mulberry silk
production,consists of three activities: mulberry leaf production
as silkworm feed(paras 1.07-1.08), silkworm rearing (paras
1.09-1.13) and silk reeling (paras1.15-1.17). Sericulturists
cultivate mulberry plants and annually rearseveral crops of
silkworms, producing cocoons which are sold to reelers. Foreach
rearing, the sericulturist purchases eggs from a grainage, where,
undercontrolled conditions, disease-free eggs are produced from
selected silkwormvarieties. After hatching, fresh leaves are
harvested several times dailyand brought to the rearing house to
provide a continuous feed for the silk-worms for 26-28 days.
Subsequently, in about a 48-hour period, the silkwormextrudes a
continuous filament which it winds around itself, spinning a
pro-tective shell, the cocoon. Inside the cocoon, over a ten day
period, thesilkworm undergoes metamorphosis into a pupa and then
into a moth. Undernatural conditions or for breeding and egg
production purposes, the mothemerges from the cocoon and lays eggs,
beginning the cycle anew. The seri-culturist, however, must sell
cocoons before moth emergence so that the con-tinous silk filament
can be removed from the cocoon by reeling. The reelingprocess
exists at several levels of technology depending to a large
extenton cocoon quality, but all reelers must stifle the pupae to
prevent mothemergence by steam or hot air drying of the cocoons.
Raw silk is generallythe term used to describe the filament after
it has been reeled out of thecocoon and combined with several
filaments to produce a thread of specifiedthickness, silk yarn. The
yarn is then "thrown" or twisted to impart tensilestrength suitable
for weaving purposes. These processes are described in moredetail
below.
Mulberry Cultivation
1.07 Mulberry is a hardy and drought resistant tree. In
Karnataka it iscultivated as a shrub in closely spaced lines and is
allowed to grow two orthree meters high. The tree tolerates most
soil conditions other than impeded
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drainage and because of a range of varieties grows well from sea
level to over1,500 m altitude. Establishment is by cuttings and the
first crop of leavesis harvested five to six months after planting.
Under rainfed conditions,harvesting is seasonal and tails off
during the dry time between November andJune, whereas under
irrigation five harvests at roughly 10 weekly intervalsare
customary. The crop responds well to inputs and good cultivation
practicesas evidenced by a 3,000 kg/ha average yield under rainfed
(about 700 mm/annum)conditions, compared to commonly obtained
yields of 30,000 kg/ha with a fullpackage of practices under
irrigation. Such package includes an improved varie-ty (M5),
regular weeding, heavy manuring (100 kg N,50 kg P and 50 kg K
perhectare annually for rainfed crops and up to 300 kg N, 120 kg P
and 120 kg Kper hectare annually for irrigated mulberry). Correct
harvesting and pruningmethods play an important role in determining
plantation yield and life.Mulberry sticks for fuel or planting
material and parts of leaves not eatenby silkworms and used for
cattle fodder, are valuable by-products.
1.08 Pests and diseases cause few problems. While leaf spot
diseasesand powdery mildew are fairly common, they have caused
little economic damageto date. Control measures are known, but
their use is rarely called for. Awell tended mulberry garden comes
into full production in the second yearafter planting and remains
productive for 10-15 years.
Silkworms and Silkworm Rearing
1.09 Silkworm varieties have adapted themselves to the climate
of theirenvironment. Tropical silkworms, including traditional
Indian varieties, aremultivoltine and produce several generations
during the year. Their eggs haveno dormancy. By contrast, temperate
area silkworms from Europe or Japan, areuni or bivoltine having
only one or two generations per year. Their eggsremain dormant for
some months to allow over wintering. There are artifi-cial means of
terminating dormancy so that silkworms of these varieties canalso
be reared throughout the year. Multivoltine varieties have low
produc-tivity compared to bivoltines and the successful adaptation
of the latter totropical conditions has laid foundations for a
major production boost forIndian sericulture.
1.10 The life cycle of mulberry silkworms in India lasts about
40-45 daysand comprises egg hatching, 26-28 days feeding on
mulberry leaves, duringwhich worms undergo four moults 1/, about 2
days cocoon formation, 10-12 dayspupating, followed by moth
emergence, mating and egg laying. Each moth laysabout 400 eggs.
During the feeding period larvae from 100 layings consumeabout
700-900 kg mulberry leaves--over 80% during the last
week--resulting inmature silkworms with about 10,000 times their
birthweight. Mature silkwormsstop feeding and are transferred to
cocooning frames, where they spin cocoons.
1.11 Cocoons consist of floss (a series of silk strands) with
whichsilkworms attach themselves to the cocooning frame, pupa and a
smooth shellconsisting of silk filament. Floss and filament are
formed by extrusion of aliquid By silkworms that solidifies on
contact with air. Length, thickness andweight of filament vary with
rearing method and silkworm variety. For instance,
1/ A period during which the silkworm stops feeding and sheds
its outerskin.
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in traditional multivoltine varieties filament length averages
400 m, while in
modern bivoltine hybrids average lengths of 1,500 m are common.
The uniqueness
of mulberry silk is that each cocoon has only one filament which
is industrially
processed by reeling (para 1.15) rather than spinning employed
for making yarnfrom other natural fibers.
1.12 Silkworm rearing requires skill, constant attention and is
beset bymany risks. Ideally rearing should take place in specially
designed rearing
houses which enable growers to control temperature and humidity
and applyhygiene measures. In practice, rearing takes place mostly
in farmers' houses.
Equipment used includes rearing trays, stands for the trays and
cocooning
frames, all made locally by village artisans. Application of
hygiene measures
are crucially important to prevent a complex of serious diseases
that candestroy a whole rearing in a matter of hours and can be
carried over to subse-quent rearings. The most important diseases
are pebrine, flacherie, grasserieand muscardine. Pebrine, caused by
a protozoan parasite, can be prevented by
ensuring disease-free silkworm egg production in grainages. The
other three
diseases, caused by viral, bacterial and fungal pathogens can be
prevented bydisinfection of rearing houses and equipment between
silkworm rearings, main-
tenance of optimum temperatures and humidities, correct feeding
practices,constant vigilance to detect diseases and immediate
application of appropriate
controls.
1.13 Other important measures that determine silk yield include
dailycleaning of trays, 1/ supply of sufficient fresh and good
quality mulberryleaves, and provisiol of adequate, ventilated space
at proper temperaturesfor the silkworms. i-or instance, the space
required for one hundred layingsincreases from about 0.4 m2 after
hatching to 35 m2 at maturity. Over-
crowding of worms to economize on trays is a common fault that
causesexcessive competition for food resulting in low silk yields.
Adequatesupply of disease-free eggs and services giving intensive
farmer trainingand frequent advisory visits to each grower are
prerequisites for a suc-cessful smallholder based silk
industry.
Cocoon Marketing and Processing
1.14 Shortly after cocoon formation, farmers sell cocoons to
reelers.Formerly reelers purchased cocoons from farmers either
directly or through
agents, but in recent years most sales take place at state
regulated cocoonmarkets, particularly in Karnataka where 85% of the
crop passes through suchmarkets (para 2.16). There cocoons are
auctioned by staff of the GOK Depart-ment of Sericulture (DOS) who
also supervise weighing and payment to farmers.The large proportion
of growers using these markets testifies to their effec-tiveness in
ensuring fair trade practices.
1.15 Before reeling takes place the pupa inside the cocoon is
stifledto prevent moth emergence and consequent damage to the
filament. At present,stifling in India is done by steam, but in
modern processing hot air is usedwhich results in improved cocoon
storage quality and higher silk recovery.
Reeling consists of boiling cocoons to soften sericin, which
binds loops of
1/ Silkworm droppings are used as manure.
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filament together on the cocoon, unwinding filaments from
cocoons, combining
several to form a thread of desired thickness and then winding
the yarn (orraw silk, as yarn is known at this stage) onto
reels.
1.16 Three types of reeling units are common in India:
- the charka - a hand powered device with one basin 1/ and
fourto six ends. 2/ Several of these are combined in a
typicalcharka enterprise;
- cottage basin - a mechanical reeling machine with six toten
basins of six ends. As with the charka, a typicalcottage basin
enterprise has several machines;
- filatures - mostly state owned consisting of equipmentsimilar
in design to the cottage basin, but combined intolarge units.
1.17 Cocoon quality and reeling efficiency determine silk yield
(per kg
cocoon) and silk quality. India's performance on both counts is
low. Forinstance, in Japan 5-6 kg cocoons yield 1 kg silk while in
India 12-16 kg areneeded. Quality of charka silk is lowest, but
finds ready sale to handloomweavers, but even silk from filatures
does not meet international marketquality standards. Reasons for
poor results are inherently low yield andquality of local silkworm
varieties and obsolete reeling equipment. Lackof modern equipment
is a contraint to the spread of bivoltine silkworm varie-ties in
Karnataka. With existing reeling machines the higher quality of
bivoltine cocoons is not translated into improved yarn quality.
Consequentlysuch cocoons fetch only a small premium in the market
at present that wouldincrease if efficient processing were
possible. Purchase of modern reelingequipment, would therefore be
necessary to support the spread of bivoltinesilkworm varieties, and
would be financed by the project (para 3.14).
1.18 Silk waste is the most important by-product of reeling and
comprisesdamaged cocoons, cocoon floss, other short lengths of
filament and the innerportion of cocoons which cannot be reeled.
Waste is processed in "spun silkmills" by a process similar to
spinning wool. The end products are spun silkand the coarser noil,
both much in demand for carpet weaving. The dead pupaeconstitute a
second by-product of lesser value which is used for animal
feed.
1.19 Raw silk is sold to silk merchants who in turn sell it to
weavers.Weaving is mostly done by handloom or small scale powerloom
enterprises andabout 150,000 handlooms are engaged in production of
silk fabrics in India -predominantly sari materials. Silk waste is
purchased by merchants partlyfor resale to the three publicly owned
mills in India and partly for export.
1/ In all types of reeling equipment cocoons float in one or
more "basins"of warm water. Except in automatic equipment, one
operator handles abasin.
2/ Part of a reeling machine at which cocoon filaments are
combined into
yarn.
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Government Programs
1.20 Silk production is a state responsibility handled by
stateindustries ministries. Most of the important silk production
states have asericulture department. Central Government involvement
was formalized in1949 with the establishment of the Central Silk
Board (CSB), headquarteredin Bombay, operating under the GOI
Ministry of Industries. The Board advisesGOI on policy and
development programs, and is responsible for silk imports,export
quality control, and assists some states with production
programs,particularly high quality egg supply. In addition, the
Board is responsiblefor silk research, and to some extent training
of advisory staff, and operatesfour central stations, seven
regional stations and about twenty researchextension centers in
fourteen different states.
1.21 The establishment of the Board led to increasing attention
by GOIto sericulture in successive development plans. Plan
financial provisionincreased from Rs 4.5 million (US$550,000) in
the First Plan (1951/52-1955/56)to Rs 255 million (US$30 million)
in the Fifth Plan (1974/75-1977/78) andproposals in the Draft Sixth
Plan (1978/79-1982/83) are for provision ofRs 1.6 billion (US$190
million) to develop sericulture. The programs havebeen
comprehensive and have dealt with all aspects of the industry
includingdevelopment of marketing and reeling. The sound framework
established bythese programs has laid the foundations for expansion
of sericulture to besupported by the project.
Mulberry Silk Research and Technology
1.22 Modern integrated sericulture research dates from 1961/62,
when CSBbecame responsible for the subject. The complex of CSB
stations has been in-dicated in para 1.20, but the main effort went
into development of the CentralSericultural Research and Training
Institute (CSRTI) at Mysore, Karnataka,which now has a team of
about 40 scientists and 45 technicians working onmulberry and
silkworm improvement, a modest reeling and fiber technologyprogram,
as well as offering post graduate training for field
officers.Silkworm breeding and genetics, with 10 scientists and 20
technicians, isthe strongest section of the Institute. The
Institute also supervises eightsubstations. One at high altitude
maintains silkworm breeders' stock. Theothers, called
research/extension centers, perform the triple function ofapplied
field research, advising extension staff and farmers and feeding
backfarmers' problems into the research pipeline.
1.23 Results have been impressive. In the field of mulberry
improvementa high yielding and more nutritious variety has been
evolved and tested,together with a package of cultivation practices
(propagation, spacing, fer-tilizing, harvesting), (para 1.07),
which has found ready acceptance by farmers.Other improved mulberry
varieties are being tested. Silkworm improvement hasalso been
successful. Local varieties have been improved and used for
hybridsgiving increased filament length and yields. However, the
most valuable break-through has been adaptation of bivoltine
varieties to the tropical environmentand their use for hybridizing
with local varieties and more recently forbivoltine crosses with
high yield and quality potential. Yield and qualityimprovements of
hybrids are illustrated in the table below which shows resultsof
CSRTI tests.
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SilkCocoons Content Filamentper 100 of Length per
FilamentLayings Cocoons Cocoon Thicknesskg % Meters Denier /a
Pure Mysore races 15.00 12-14 300-400 1.8 to 2.0Mysore hybrids
20.40 13-15 400-500 2.0 to 2.2Bivoltine/multivoltinehybrids 31.41
15-17 600-900 2.2 to 2.6
Bivoltine hybrids 35.15 20-22 1,000-1,500 2.6 to 3.0
/a Grams silk per 9,000 meters filament.
Source: GOK.
1.24 Rearing of bivoltines was initially beset by many problems,
but
successful intensive research provided solutions and led to
introduction ofthe Japanese method of communal hatcheries locally
known as Chawki centers.There, under departmental supervision,
silkworm eggs are hatched, and larvaereared during the initial 10
day period, which is a particularly delicate partof the life cycle,
before distribution to farmers. Communal hatcheries haveincreased
cocoon yields by an estimated 20% over farm-hatched silkworms,
andCSRTI work was largely responsible for adapting this Japanese
innovation toKarnataka conditions.
1.25 CSRTI publishes results in the form of advisory bulletins
used byfarmers and advisory staff. As a result of close
collaboration between CSRTIand the Government of Karnataka
Department of Sericulture (para 2.12), use ofunimproved local
varieties is being phased out rapidly.
1.26 Despite these impressive successes there is still a
considerablegap between silk yields in India (40-50 kg/ha irrigated
mulberry) and Japan(over 120 kg/ha rainfed mulberry). To ensure
long-term growth of the industryresearch activities need
considerable strengthening and researchers wouldbenefit from more
contact with foreign researchers. The project would, there-fore,
help to intensify research and provide foreign technical
assistanceand training.
II. Silk Production in Karnataka
Agriculture in Karnataka
2.01 The state of Karnataka is situated in Southwest India, has
an areaof about 192,000 km2 (19.2 million ha) and a population of
about 30 million.Of the total land area, a little over 10 million
ha are cultivated, of whichabout 1.35 million ha are irrigated,
partly by canal or tanks and partly byindividually owned wells.
Foodgrains, including rice, sorghum, finger millet,pearl millet and
wheat, occupy roughly half the cultivated area and the statehas
been substantially self-sufficient in foodgrains for some years.
Withits climatic range from humid tropical coastal to more
temperate uplandareas, the state has a large range of cash crops.
Cotton and groundnuts are
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each grown on about 1 million ha and about 130,000 ha sugarcane
are spreadthroughout the state. Coconuts and cashewnuts are
important in coastalareas, while the highlands account for
three-fourths of India's coffee produc-tion. The area near
Bangalore, the state capital, has a thriving horticultureindustry,
famous for grape production. It is also this area and
neighboringdistricts that produce 62% of India's silk. Sericulture,
introduced 200 yearsago by Tippoo Sultan, then ruler of Mysore, is
practiced by 200,000 farmersand provides employment for about 2
million people in the state.
Silk Production Area
2.02 The mulberry area is estimated at 110,000 ha including
about30,000 ha irrigated, and 4,000 ha improved M5 variety, and
remains largelyconfined to the five districts 1/ comprising the
former Kingdom of Mysore(see map). However, over the last four to
five years large scale cooperativetrials with farmers have proved
the feasibility of profitable sericulture inmany other parts of the
state and about 1,000 ha have been planted in "newareas". Change
from local varieties in traditional areas to M5 is taking
placerapidly, now that initial bottlenecks of planting material
bulking have beenovercome. In new areas, the initial planting
program has created strong demandfor mulberry area expansion that
DOS, with its present meager staff and equip-ment resources cannot
satisfy. The project would intensify production intraditional areas
and help to increase production in nine "new" districts
2/comprising the central and northern portion of Karnataka (see
map).
Topography, Climate .nd Soils
2.03 The sericulture areas are on an undulating plateau at an
averagealtitude of 600-800 m in the west and south, and of 400-600
m in the east andnorth. The higher areas enjoy a temperate climate.
Even summer (March-May)temperatures do not exceed 28-3OoC whereas
in the lower areas summer temper-atures frequently reach 4OoC. In
the higher areas ambient temperatures aresuitable for year round
silkworm rearing and, fortunately, cooler nighttemperatures of
about 24oC, allow regulation of rearing houses temperaturesfor
successful silkworm rearing throughout the year even in the lower
areas.Temperatures are suitable for mulberry in all areas.
2.04 Rainfall, mainly between May and November, ranges from
700-900 mmaverage annual precipitation in the higher areas to
500-600 mm in lowerareas, but is erratic. Annual totals frequently
deviate by 50% from theaverage and monthly totals also vary sharply
in different years. Mulberry,being fairly hardy, can withstand low
rainfall, but irrigation doubles yieldeven in higher rainfall areas
of Karnataka and is essential for economicsilkworm production in
drier localities. Fortunately, there are sufficientirrigation
facilities--canal or privately owned wells--to cater for the
1/ Kolar, Bangalore, Tumkur, Mysore and Mandya.
2/ Chitradurga, Shimoga, Hassan, Bijapur, Bidar, Raichur,
Bellary, Dharwarand Gulbarga. In addition, there are parts of the
five traditionaldistricts where sericulture has not been practiced
to date, which areincluded in "New Areas".
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comparatively small area of mulberry in dry areas. High
humidity, associatedwith high rainfall years, tends to increase
silkworm disease problems, afactor which sometimes offsets benefits
from higher mulberry leaf production.
2.05 Red soils grading from sandy soils to clay loams, very
suitable formulberry, cover the southern half of the project area,
while black soils vary-ing from medium to heavy cracking clays
predominate in the northern half.Mulberry grows well on the black
soils, but care is needed to avoid poorlydrained or alkaline (ph
above 8.5) conditions. Both red and black soils lacknutrients,
particularly nitrogen and phosphorus, and mulberry gives
goodresponse to fertilizers containing those elements.
Production
2.06 Mulberry area, cocoon and silk production have been
expanding stead-ily. The table below indicates production and yield
trends, but DOS staff ad-vised that until recently, when most
cocoon production started to flow throughregulated markets,
production data was subject to considerable errors.
Silk Production in Karnataka
Mulberry Production Yield /aArea (Tons) (Kg/ha) Silk Content
/a
Year (ha) Cocoons Silk Cocoons Silk of Cocoons %
1951/52 43,000 11,800 727 274 17 6.21961/62 72,000 15,100 863
209 12 5.71971/72 93,000 29,100 1,775 313 19 6.11977/78 106,000
31,600 2,300 298 22 7.3
/a Mission calculation.
Source: GOK.
2.07 The large area of rainfed mulberry, 80,000 ha, mostly in
MysoreDistrict, reportedly produced only 16,000 tons cocoons (about
190 kg/ha)during 1977/78, compared to 15,600 tons from 30,000 ha
irrigated mulberry(520 kg/ha). While overall cocoon yields are low,
those from irrigatedmulberry come close to Japanese yields of 600
kg/ha but, as already indicated,there is a wide gap in silk yields
between Karnataka and Japan. The differenceis due to climate,
varieties and rearing and reeling technology and presents
achallenge to local research and extension services.
2.08 Improved technology in all branches of silk production has
onlybecome available in the field in the last three to four years.
Improved silkcontent of cocoons is the first visible impact. Cocoon
yields of 800-1,000kg/ha in some intensively staffed village
schemes and in silkworm seed pro-duction areas have proved the
value of the new technology. Large-scaleadoption requires
intensification of research and advisory services, increasedand
improved seed production and introduction of improved reeling
technology,all of which would form part of the project.
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Holding Size and Tenure
2.09 According to the 1976/77 Agricultural Census, there are 3.8
million
holdings in Karnataka and average holding size is 3 ha.
Distribution of
holdings by size class is illustrated in the table below:
Holdings Percentage Share of Average
Size Class Number Area Total Holding
ha 000 000 ha Number Area Size ha
Below 1 1,274 638 33.4 5.6 0.50
1 - 2 888 1,319 23.3 11.6 1.492 - 4 818 2,287 21.5 20.1 2.80
4 - 10 631 3,858 16.6 33.8 6.11
Above 10 199 3,254 5.2 28.9 16.30
Total 3,810 11,356 100.0 100.0 2.98
Source: GOK.
Average farm size in the silk areas ranges from 1.2 ha in Mandya
to 5.3 ha in
Bijapur and in general is below 2 ha in the higher rainfall
areas and above 3
ha in drier districts.
2.10 Tenancies have been abolished by land reform legislation
and accord-
ing to the 1975/76 Agricultural Census all farmers are
owner-operators. Seri-
culture is practiced in 6,300 villages by almost 90% of the
farmers. Conse-
quently, the state distribution of holding size also applies to
sericulturists.
The mulberry area per farmer (which reflects size of rearing
operation) rarely
exceeds 2 ha, and about 80% of sericulturists with about 60% of
the total area
grow less than 1 ha mulberries. Usually a sericulturist with
irrigation
facilities has some irrigated paddy as well as a piece of dry
farming land
where he grows mostly sorghum and finger millet. However, in
non-irrigated
areas about 10% of the smaller farmers in "silk villages" devote
all their
land to mulberry. The reason for the universally small size of
operations in
Karnataka is the high labor requirement during the final stages
of the silk-
worm cycle and the need for careful timing of operations, which
make large-
scale sericulture operations difficult to manage even for more
wealthy farmers.
Reeling
2.11 Reeling is predominantly a cottage industry. About 10,000
charkas
and 7,500 cottage basins account for 90% of all reeling, with
the balance
processed mostly in government filatures. Up to about 1957,
charkas dominated
the reeling industry, but in that year, to improve quality, GOK
introduced
a 50% capital cost subsidy for establishing cottage basins. As a
result, the
number of cottage basins increased rapidly and now their output
exceeds that
of the charkas, which has remained constant.
Department of Sericulture (DOS)
2.12 Established in 1914, the Department, with a professional
and tech-
nical staff of about 2,000, plays a key role in all aspects of
raw silk pro-
duction in Karnataka and provides production, advisory and
cocoon marketing
services. In addition, the Department fulfills regulatory
functions, partic-
ularly in the fields of silkworm egg production and cocoon
marketing. The
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Department also used to operate an industrial wing comprised of
seven fila-tures, a spun silk factory and a silk weaving factory,
that has been trans-formed into a newly established GOK
Corporation, the Karnataka Silk IndustriesCorporation (KSIC), which
would operate commercially (para 5.05-5.08).
2.13 Silk Farms and Grainages. DOS operates 74 silk farms
(average size10 ha) and 80 grainages that provide farmers with
disease-free silkworm eggs.Silk farms multiply breeder stock
through two succeeding generations, to finalmultiplication, which
is done by closely supervised farmers in two special seedproduction
areas, one for local "Mysore" races and one for bivoltines.
Silkfarms also serve as bulking centers for improved mulberry
varieties and asdemonstrations for improved sericulture practices.
In grainages, cocoons arecollected from silk farms and from
accredited growers, and moth emergence,mating and egglaying take
place under carefully controlled, aseptic conditions.DOS sells eggs
to farmers at Rs 35 per 100 layings, which covers grainageoperating
costs.
2.14 In 1979, about half the production of 160 million layings
came fromdepartmental grainages and the rest from 833 licensed
private grainages, whoseproduct is of variable quality despite
inspection by DOS staff. Because ofdanger of spreading disease from
infected eggs, and in response to strongdemand from growers for
better quality eggs, departmental egg productiondoubled during
1978/79 and is expanding rapidly. However, even
departmentalgrainages lack modern facilities and are too numerous
to allow highest qualitysupervision. A program to consolidate and
modernize grainages and expand theircapacity would be supported by
the project (para 3.08).
2.15 Technical Services. To date advisory services have not been
inten-sive with many sericulturists receiving only occasional
advisory visits. Thistype of service has not been sufficient to
raise yields markedly and has onlybeen adequate to prevent disaster
from silkworm diseases because of the rela-tively hardy nature of
traditional varieties. Introduction of high-yieldingbut more
disease susceptible new varieties requires intensive advisory
services.A successful model has been developed in several
"Intensive Sericulture Devel-opment Projects" (ISDP) as well as in
the bivoltine seed production areas.The model is based on a
technical service center (TSC) staffed by a sericul-ture assistant
(SA) who supervises 8 sericulture demonstrators (SD). About12-13
communal hatcheries are attached to each center. Each demonstrator
isexpected to visit each of about 100 farmers once every four days
while rearingis in progress and supervise one or two hatcheries.
Each SA during the courseof supervising his SD also visits farmers
frequently. Such intensive visitsare necessary for close monitoring
of disease status of rearings and have alsoserved to improve
sericulture practices. Even experienced growers agree thatsuch
services are necessary particularly with modern varieties. About 60
TSCand 640 hatcheries have been established but require additional
equipment andstaff. The project would help to improve existing TSC
and to establish similarintensive technical services based on TSC
throughout Karnataka silk areas.
2.16 Cocoon Markets. GOK under 1959 legislation introduced
regulatedcocoon marketing. To meet the requirement of legislation,
the Departmentoperates 22 cocoon markets. Designed for 10,000 tons
the markets alreadyhandle about 30,000 tons cocoons and existing
markets are congested and longwaiting periods for farmers and
insufficient shelter from dust or rain forcocoons are the result.
Despite these inconveniences, the vast majority of
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growers prefers this type of regulated cocoon marketing to
former direct
trading with buyers and there is urgent need to expand and
improve market
facilities. The project would support GOK plans for that purpose
(para 3.09).
A fee of 1% of cocoon value is paid by reelers, which covers
operating costs
and DOS plans to double the fee to recover a portion of capital
costs as well.
Credit
2.17 Both cooperative and commercial banking is well developed
in all
parts of Karnataka. The three-tier short/medium-term cooperative
has an apex
bank, about 200 District Central Bank (DCCB) offices and 5,000
Primary Agricul-
tural Society offices in project districts; the two-tier
medium/long-term Land
Development Bank (LDB) has 140 offices; and commercial banks
(CB) have about
1,600 branches of which 1,000 are semiurban or rural. There are
also several
Regional Rural Banks which cater specifically for the poorer
section of the
rural community. Most banks, particularly LDB and CB, have had
considerable
experience of Bank Group supported lending, notably through the
Karnataka
Agricultural Credit Project (Credit 278-IN) and two Agricultural
Refinance and
Development Corporation (ARDC) Credit Projects (Credits 540-IN
and 715-IN),
all fully disbursed. Most of them are already engaged in
sericulture lending
which they are keen to expand.
2.18 Because of currently high overdues that afflict all banks
in
Karnataka and Reserve Bank of India (RBI) rules regulating
cooperative bank-
ing, short-term credit cooperatives would be practically
precluded from and
LDB severely limited in project participation. RBI/ARDC plans
for improving
cooperative banks are under GOK consideration. In the meantime,
coverage of
the project area by suitably staffed and qualified CB would be
satisfactory.
2.19 A major credit scheme for sericulture development in
Karnataka was
started in 1974, but has been disappointing to date. The scheme
comprised
formation of combined sericulture and general service
cooperatives that were
to have provided all inputs and services needed by
sericulturists, including
cocoon marketing. The cooperatives were to have been supported
by technical
staff on deputation from DOS and by CB and eligible DCCB for
provision of long
and short term credit partly refinanced by ARDC. Formation of
cooperatives
took several years, provision of technical services divorced
from DOS proved
impracticable and spread of regulated marketing has reduced the
advantages of
cooperative marketing. In addition, farmers complain that loan
application
procedures are so tedious as to discourage many potential
borrowers from using
credit. Consequently, there has been little demand for credit
through these
cooperatives. For instance on June 30, 1979 only Rs 1.2 million
of a Rs 30
million target had been disbursed by ARDC in 31 long term credit
schemes for
cooperatives. At the same time both cooperative and commercial
banks had,
over three years, disbursed well over Rs 50 million for
sericulture to indivi-
dual borrowers, which proves that there is a demand for credit
by silk farmers.
Consequently, for the project proposed in this report, lending
would be to
individuals rather than cooperatives in new silk areas. In
addition, ARDC
would explore ways of improving its ongoing schemes, providing
credit in
traditional areas to individual borrowers who are not members of
cooperatives
and, together with GOK, consider measures for easing burdensome
loan applica-
tion procedures (paras 5.12-5.15).
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III. THE PROJECT
Project Genesis
3.01 Because of employment generation and potential for
improving ruralincome, both GOI and GOK have for some time been
planning measures to expandsilk production in Karnataka. Both
Governments felt that Bank Group assist-ance would be helpful for
improving the silk industry. Preliminary discus-sions between GOI
and the Bank took place in early 1977. As a result
projectpreparation was undertaken by GOK--mainly by DOS--in
collaboration with GOI'sMinistry of Agriculture Project Preparation
and Monitoring Cell with assistanceby the Bank's New Delhi Office
staff. The project is based on the resultingpreparation report
dated January 1979 and on findings of the February 1979preappraisal
and September/October 1979 appraisal missions.
Project Summary
3.02 The project would be the first IDA assisted scheme in
support ofIndian sericulture and would cover about three quarters
of Karnataka's silkproducing area. It would have three major
objectives: firstly, to increaseraw silk production in Karnataka by
about 1,600 tons including 1,000 tons highquality bivoltine silk
per year, by providing better silkworm eggs and inten-sive advisory
services to sericulturists already cultivating about 24,000
hairrigated and 60,000 ha rainfed mulberry; and to those who are
projected toplant about 14,000 ha irrigated mulberry in new areas
during the projectperiod; secondly, to introduce modern processing
facilities and methods thatwould upgrade raw and spun silk to
export grade quality; and thirdly, forlonger term improvement of
the industry, to introduce the latest technologiesfrom leading silk
producing countries and to expand local research. Toachieve these
objectives the project would include components to expand
DOStechnical, silkworm egg production and cocoon marketing
services; GOK and GOIresearch facilities; and technical assistance,
all of which would be financeddirectly through GOI and GOK.
Additionally, there would be project credit foron-farm investment
by sericulturists and for small-scale reelers which wouldbe
channeled through ARDC and banks to borrowers; and for
modernization ofGOK silk processing facilities which would be
provided through the IndustrialDevelopment Bank of India (IDBI) to
KSIC. The following is a list of projectcomponents:
(a) For Silk Production
(i) credit for farmers in new areas for planting 3,500
hamulberry, purchase of silkworm rearing equipment sufficientfor
such mulberry area and construction of 1,400 silkwormrearing houses
to support the 14,000 ha mulberry plantingprogram;
(ii) incremental staff, vehicles, equipment and operatingcosts
for 150 TSC with 1,700 communal hatcheries, fourmobile training
units, construction, equipment andoperating cost of 20 model
hatcheries, and improvementof an existing sericulture training
institute andestablishment of two new ones for expanding and
strength-ening DOS technical services;
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(iii) construction, equipment, staff and operating costs of
10
modern grainages to expand and improve silkworm egg suppliesfrom
DOS; and
(iv) construction, equipment, staff and operating costs of
30
market units to expand 11 existing cocoon markets and
toestablish 12 new ones.
(b) For Silk Processing
(i) establishment of a semiautomatic departmental small
filaturein the new areas;
(ii) credit for reelers, for establishing 500 cottage
basinunits; and
(iii) improvement of government silk processing factories by
replacing the existing seven outdated filatures with amodern
one; and renovating, modernizing and expandingthe existing spun
silk factory.
(c) For Research and Technical Assistance
(i) expanding facilities at the CSRTI main station
andestablishing or improving of two regional stations and10
substations; supporting programs at three Karnataka
universities; and establishing a sericulture researchstation for
the Karnataka State Sericultural Develop-ment Institute (KSSDI),
which GOK is in the process ofsetting up;
(ii) technical assistance programs including 70 man-months
of consultants time and 380 man-months of overseastraining to
support the production, research and pro-cessing components;
and
(iii) monitoring and evaluation services.
3.03 Short-term effects of the project would be its impact on
silk pro-duction and resultant considerable increase in rural
incomes and employment.The longer-term impact on sericulture
technology would be equally important.While mulberry production has
reached high levels, there is enormous scope forimproving silkworm
productivity and quality of local silk products. Project
assistance by way of strengthening research, introducing modern
processing
technology and providing technical assistance and training,
would leave India
well equipped to meet increasing demand for fine quality silk
products due tofalling production abroad. The processing industry
modernization programwould be one of special importance to the
Indian silk industry. Introductionof technology for producing high
quality yarn is vital in the first instanceto support spread of
bivoltine silkworm varieties and to replace high qualityyarn
imports, now necessary for weaving export quality fabrics. There is
ahuge local market for handloom products, but export oriented
production willbecome important in the longer term, to allow
expansion of sericulture. Atthat time raw and spun silk will need
to meet international quality standardsand competition. At present
there is little sign of private sector investment
in modernizing the silk processing industry and GOK is therefore
assuming the
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role of innovator by introducing new technology that may
stimulate privatesector investment in similar processing plants at
a later date. Since the GOKfacilities would use only about 5% of
available raw materials, there would beample scope for private
sector development of modern silk processing factories.As a first
step, however, GOK must introduce and demonstrate the new
processingtechnology and its financial viability, both objectives
that would be supportedby the project.
Silk Production
3.04 Increased silk production would entail intensification of
sericul-ture in traditional areas and expanded production in the
new area (para 2.02).Mulberry leaf production would be boosted by
encouraging farmers to replacetraditional mulberry varieties with
the improved variety M5 on 20,000 ha irri-gated land in traditional
areas and planting the new variety on 14,000 hairrigated land in
new areas. The M5 variety has become very popular and vir-tually
total replacement of unimproved varieties in traditional
irrigatedareas, which is proceeding at a rapid pace, may well be
completed before theend of the project. In new areas demand for
expansion of sericulture isstrong and at present DOS is hard
pressed to provide adequate services quicklyenough to cater for the
expanding mulberry area. Silk production would beimproved by the
increase in mulberry leaf production, better leaf quality,better
silkworm egg quality, spread of high yielding bivoltine silkworm
varie-ties and, above all, intensification of advisory and other
supporting servicesto foster adoption of proven practices for
mulberry and silkworm production.While the main production increase
would come from irrigated areas, the largerrainfed areas would also
be improved. Components of the silk productionprogram, to be
supported by the project, are described in more detail below.
3.05 Credit. Project credit would be provided only for new
areas, be-cause traditional areas are already served by ARDC
schemes which may have beendisappointing to date (para 2.19), but
which ARDC is now endeavoring to improve.Besides, most silk farmers
in traditional areas own well established silk pro-duction units,
which enable them to meet development and working capital needsfrom
earnings, without recourse to credit. In new areas, on the other
hand,credit would be an important catalyst to expand silk
production, by helpingto provide finance for farmers who are
planting mulberry for the first time.The project credit scheme
would serve a second important function by improvingthe credit
delivery system for silk farmers in all areas. However, even in
newareas demand for credit is hard to gauge. Therefore, to avoid
the problem ofa large credit component in the project that may not
be fully taken up, only amodest program has been included. It would
support 3,500 ha (or 25%) of the14,000 ha mulberry projected to be
planted in parts of the new area coveredby the project and, since
demand for rearing houses has been small to dateeven in traditional
areas, project credit would support construction of only1,400 (or
10%) of the 14,000 rearing houses that may ultimately be needed
inthe new areas. The small size of the credit component would not
be an imple-mentation constraint since possible credit demand in
excess of project funds,which may well develop, could be met from
IDA supported ARDC Credits. Loanswould be available to farmers for
mulberry planting, purchase of silkwormrearing equipment,
construction of rearing houses and recurrent cost for twosilkworm
rearing cycles. The short-term finance would be consolidated
withmedium/long-term elements for repayment purposes. Construction
of rearing
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houses would be according to DOS specifications and assurances
were obtained
that such specifications, acceptable to ARDC and IDA, would be
drawn up before
December 31, 1980.
3.06 Technical Services. Based on the successful ISDP model
(para 2.15)
DOS technical services would be expanded by fully staffing and
equipping the
existing 60 TSC and 640 hatcheries and by establishing 90
additional TSC and
1,060 hatcheries requiring an incremental staff of 150 SA and
1,200 SD. As
a result, DOS services in the project area would allow about 90%
of all silk-
worm eggs there to be hatched and initially reared in communal
hatcheries and
would be able to provide one SD per 60-100 growers. Project
investments would
include hatcheries equipment, TSC and hatcheries incremental
operating cost,
a vehicle, spraying equipment and microscopes for each TSC. To
ensure staff
mobility necessary to maintain the farm visits schedule, the
project would
finance 750 light motorcycles, for purchase by SA and SD through
loans, which
would be provided by DOS. In the past DOS also provided advice
for mulberry
production. From January 1980, this work has been done by
extension staff of
the Department of Agriculture, which is being reorganized and
strengthened
under the Composite Agricultural Extension Project (Credit
826-IN). This
arrangement would improve extension for mulberry production and
would give
DOS staff more time to help farmers with silkworm rearing.
3.07 In support of the technical services, the project would
improve and
expand an existing training institute and establish two new
ones, each with
a capacity for 1,200 trainees a year, including staff and
farmers. In addi-
tion,2the project wotId finance 20 model hatcheries, including
the cost of a
110 m hatchery builcing, and equipment for each and its
operating expenses.
These hatcheries would be strategically placed demonstrations,
to encourage
growers to form groups to operate their own hatcheries. Finally,
there would
be four demonstration vans with audio-visual equipment, which
would travel
throughout the project area and support demonstrations by TSC
staff.
3.08 Grainages. Private grainages were adequate to deal with
relatively
hardy local varieties, but many of them are not capable of
consistent produc-
tion of disease-free layings of more disease susceptible modern
varieties.
Infected eggs are a threat to the industry, consequently GOK,
partly reacting
to strong demand by farmers, is planning to offer farmers a
greater egg supply
from its own grainages and would then be able to apply much
stricter quality
control and licensing procedures to private grainages. All but
the largest of
the present DOS grainages would be closed or converted into egg
sale centers
and would be replaced by large modern grainages. The project
would finance
ten of 5hese grainages. Each one would be a four-floor building
with
3,200 m floor area, specifically designed and equipped for
aseptic production
of 10 million disease-free layings per year. Seven grainages
would have a
cold store each for egg storage. Such storage would allow year
round produc-
tion and build-up of stocks for the peak demand period following
the onset of
rains. To avoid egg spoilage in case of power outages, each
grainage would
have stand by generators. Three grainages would have smaller
cold store space
for preserving moths to give more flexibility for the breeding
and egg laying
process. Direction of the grainage operation would be provided
by senior
experts at DOS headquarters. In addition, project technical
assistance and
overseas training programs (paras 3.20 and 3.21) are designed
for introduction
of modern operating and quality control methods for the new
facilities.
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3.09 Cocoon Markets. To provide adequate facilities for ongoing
cocoonproduction and for its expansion, the project would extend 11
of 22 existing
markets and establish 12 new ones. Eight existing and two new
markets would
be Class I markets, that receive or are projected to receive
more than 1 mil-
lion kg cocoons per month and the remaining 13 would be smaller,
Class IImarkeis. All market expansion or new construction would be
based on standard
900 m floor area units that would comprise a hall for waiting
sellers; anauction area; offices and stores. Class I markets would
have two or more units
each while Class II markets would each have one. Seventeen units
would be
constructed at 10 Class I markets and 13 at 13 Class II markets,
a total of30 units at 23 sites. Unit design is based on experience
gained during thelast seven years and on advice from the FAO
Markets Specialist in Delhi.
Silk Processing
3.10 The two main objectives of project processing investments
are provi-sion of adequate reeling capacity in new areas and, by
improving GOK facilities,introduction of modern technology to
increase silk recovery from cocoons and
upgrade quality.
3.11 Cottage Basins. Most cocoons in the State would continue to
be
reeled by cottage basins and the project would provide credit
(channeledthrough ARDC and banks) for about 500 units in new areas.
Project loans wouldfinance machinery, a shed and funds for
purchasing a two-weeks cocoon supply.
As with loans to farmers, the working capital element would form
part of the
term loan. Each unit would have about one ton raw silk per year
capacity. Toattract reelers to new areas, GOK provides a subsidy
equal to 40% of machinery
cost (about Rs 4,000), which has worked well in fostering
cottage basin devel-opment elsewhere. This subsidy would be
necessary to attract enough reelersto the new areas and GOK would
continue to provide the subsidy.
3.12 Departmental Filature. In addition DOS would establish and
operate
one modern semiautomatic filature in the new areas. The filature
would test
the economics of operating modern reeling equipment in a
small-scale enter-prise and would be a demonstration and training
center for potential privateinvestors. Investments would include a
400 ends reeling unit, a rereelingmachine, hot air cocoon drier,
boiler, factory building, staff quarters, a
truck and a van. The filature would process 400 kg cocoons per
day and pro-duce about 11 tons silk yarn per year.
Karnataka Silk Industries Corporation Facilities
3.13 The Corporation would own and operate existing departmental
fila-
tures, spun silk mill and weaving factory. Modernization of the
filaturesand spun silk factory would form an important part of the
project and is
described below.
3.14 Filatures. Because of obsolete equipment the existing
filatures can-not achieve export quality yarn, would not be able to
exploit the benefits of
high quality cocoons and are running at a loss. KSIC would
modernize one of
the seven filatures and close the rest. The modernization
program would meanreduction of the labor force for all proposed
KSIC facilites from about 4,000
to 2,300 workers. Part of these 1,700 redundant positions wou'ld
be dealt withby not replacing any workers that are retiring or
otherwise leaving employment.
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Many others would be offered employment in expanding DOS
facilities that wouldrequire almost 6,000 workers. For those who
cannot be placed, a compensationprogram has been planned.
Production, presently averaging about 150 tons peryear, would be
expanded slightly to about 160 tons of export grade raw
silk.Investments would include three hot air driers, three cocoon
boiling units,six semiautomatic reeling machines (each with 400
ends) and eight rereelingmachines. The existing buildings would be
used to accommodate the new machinerywith some additions. The
filature, together with the departmental filaturewould provide
adequate reeling capacity to support bivoltine cocoon productionin
the earlier project years. Later on GOK would decide whether to
expandcapacity which may become necessary unless the private sector
decides to investin modern filatures.
3.15 Spun Silk Mill. In view of the increasing and largely
unsatisfieddemand for spun silk in India and in the world, and the
increasing amount ofwaste silk available locally, the existing spun
silk mill would be expandedfrom 45 tons spun silk production per
year to 150 tons. The plant, establishedin 1936, and expanded and
to some extent reconditioned since then, now requiresextensive
repairs. A renovation program, based on a technical study
byJapanese spun silk specialists would be carried out by the KSIC
central work-shop (para 3.17), to be established at the factory
site. Some of the existingmachines would be replaced and the
renovation program would increase plantcapacity to 60 tons spun
silk per year. The product would not be suitable forexport but
would be easily absorbed by the local market. In addition, a new90
tons per year spun silk production unit would be constructed at the
factory,that would be provided with the latest equipment and would
produce exportquality spun silk. Both units would use modern waste
silk degumming methodsthat would improve spun silk recovery from
waste. No civil works would beneeded for the existing unit, but a
factory building would be constructed forthe new unit.
3.16 At appraisal, GOK considered the alternative of scrapping
the exist-ing plant in favor of a new 150 tons capacity factory.
GOK decided againstthe latter option because of higher capital
cost, lower employment requirement,somewhat lesser flexibility of
end product suitable for local requirements,and the fact that
financial returns would be almost identical for both options.GOK
considered that these factors outweighed advantages of completely
newplant such as easier management, raw material economies, and
higher qualityend product. Since studies confirm that renovation is
sound, the moderniza-tion program chosen by GOK would be
satisfactory.
3.17 Central Workshop. The existing departmental central
workshop inMysore would also be taken over by KSIC and needs to be
expanded and reequippedfor reconditioning the spun silk mill and
for maintenance of the other KSICprocessing factories. New
equipment would include foundry equipment, lathes,grinders, drills,
presses, sawing machines and small tools. The workshopwould be
located at the spun silk mill which is a satisfactory location
forserving other KSIC facilities.
Research and Technical Assistance
3.18 Research. The CSRTI had prepared a modest program for
intensify-ing research but the preappraisal team, pointing to the
success of intensiveresearch in Japan and Korea, advised increase
of program size. As a result,
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GOI and GOK staff together drew up a plan for expansion of
research to befinanced by the project. CSRTI would remain the lead
institute, but wouldcollaborate with three local universities and
with the Karnataka State Seri-cultural Development Institute
(KSSDI) which GOK is establishing. The planhas been reviewed and
approved by GOI and GOK expert committees and is sat-isfactory.
3.19 Funds are required for laboratory buildings, staff housing,
equip-ment, staff and operating costs by CSRTI, to strengthen its
central station,establish two regional stations and five
substations and to improve fiveexisting substations; by University
of Agricultural Sciences, Bangalore forstrengthening its ongoing
program focussed on silkworm disease control, start-ing new
programs for mulberry and silkworm pest and disease incidence
surveys,and for expanding its sericulture teaching faculty; by
University of Bangalore,for silkworm genetics and mulberry
research; by Mysore University, for specificresearch on silkworm
genetics; and by KSSDI, to develop a research stationand
laboratories to carry out research into all aspects of mulberry,
silk-worms and silk processing.
3.20 Technical Assistance. The project would finance 70
man-months ofconsultants' time and a 380 man-months program for
training abroad. In thecase of consultancies, about 19 man-months
would be needed for visits of 5or 6 top level scientists to CSRTI
to support mulberry and silkworm breedingwork and for exchange of
ideas on other research topics. About 12 man-monthswould be used
for two visits by a two-man team to help DOS with grainage
dev-elopment and another expert would be needed for two visits of
six months tohelp with the communal hatcheries program, with
special Eocus on disease con-trol. In addition, about 27 man-months
of consultancy would be used by KSICfor training staff to operate
new filature and spun silk factory equipment.
3.21 The overseas training program would benefit 10 senior DOS
officials(2 months training), 20 Assistant Directors (3 months
training) and 45 SA(4 months training). Particular emphasis of this
training would be on grain-age and hatchery operation and silkworm
disease detection and control. CSRTIwould require ten study tours
for senior researchers, each for attachment toa top research
institute abroad for a 12 month period.
3.22 Japan, the leader in silk technology, would be the most
suitablesource of expertise and training opportunities. To attract
the necessarytop-class scientists and technicians, and in view of
the proposed frequentand short-term assignments, a high man-month
cost of US$15,000 has beenallowed, inclusive of air fares, living
expenses and local travel. However,even with such high remuneration
there is no certainty that all the desirableexpertise can be
recruited, particularly on a timebound schedule. Arrange-ments for
training should present fewer problems and the Japan
InternationalCooperation Agency would be able to help with
arrangements. Cost per trainingmonth has been estimated at US$3,400
which would include air travel, localtravel, tuition, living and
miscellaneous minor expenses. The programs wouldassist and benefit
the project considerably, but no part is so vital thatthe project
would fail without it. With likely difficulties of
recruitingconsultants in mind, assurances were obtained that the
GOI Ministry of Indus-tries in collaboration with GOK, would, by
December 31, 1980 draw up a planand timetable for the technical
assistance and overseas training program andwould use its best
endeavors to implement the plan for employing consultants
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and study tours on terms and conditions mutually acceptable to
GOI and the
Association.
3.23 Evaluation Study. The project would fund an evaluation
study by a
local research institute or university. Arrangements for the
study are dis-
cussed in para 5.23.
Land for Project Facilities
3.24 About 80 plots of land would be needed for DOS and KSIC
components,
mostly small building plots. All but six of them are already in
possession
of DOS and negotiations for official transfer of the remainder,
all of which
are GOK land, are well advanced and are expected to be completed
before the
end of 1980. CSRTI would require 12 land units ranging from one
to eight
hectares in size for research substations. DOS has suitable land
and agreed
to transfer it to CSRTI as and when needed. There would
therefore be no land
acquisition constraint to impede the project.
Environmental Aspects
3.25 The project would have no adverse environmental effects. It
would
cause change in land use only by replacing traditional with new
mulberry varie-
ties or one crop, for instance sugar cane, with mulberry which
would cause no
environmental changes. On the processing side, large processing
plants would
be of modern design adhering to Indian factory safety and
effluent disposal
regulations which are satisfactory. Care would also be taken
that the smaller
privately owned units, to be sponsored by the project, would
adopt satisfactory
safety and waste disposal measures.
Project Phasing
3.26 GOK had started project activities such as land
acquisition, estab-lishment of KSIC, securing the project budget
and sanction for appointment of
proposed project staff, and implementation of some components
prior to negotia-
tions; and has started full-scale implementation from April
1980, the new GOK
financial year. In the first project year DOS would improve
existing TSC and
hatcheries and concentrate on preparing to implement the other
components by
finalizing designs, calling tenders and recruiting and training
staff. Estab-
lishment of new TSC and hatcheries and completion of supporting
facilities
(model hatcheries and training institutes) would be carried out
progressively
over the following three years. The first grainages are to be
commissioned
during 1982 and market units financed by the project during late
1981. The
two programs would each take two more years to complete.
Construction of the
two KSIC factories would start early in 1981 and is scheduled
for completion
by mid-1983. Detailed designs for most of the major civil works
items were
already substantially completed at appraisal. The timing of the
technical
assistance program is difficult to predict and may well extend
up to mid 1985.
Depending on availability of consultants, the technical
assistance program has
been tentatively projected to take place mainly during the third
and fourth
project year while the overseas training program would start in
the second and
extend to the fifth project year. Project phasing is shown in
more detail on
Table 3.1 and Charts 21303, 21387 and 21629.
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IV. COST ESTIMATES, FINANCING, PROCUREMENT AND DISBURSEMENTS
Cost Estimates
4.01 Total costs are estimated at US$95.1 million equivalent of
whichUS$20.7 million or 22% would be foreign exchange costs and
US$6.6 millionwould be duties and taxes. Estimates are based on
September 1979 prices.A 10% physical contingency has been allowed
for civil works and 5-10% formachinery, equipment, vehicles and
incremental operating costs. Price contin-gencies have been applied
at 10% for 1980, 7% annually for 1981 to 1983 and5% annually from
1984 onwards for local costs and at the following rates forimported
machinery and equipment: 10.5% for 1980, 9% for 1981, 8% for
1982and 7% annuallv for 1983 to 1985. Total contingencies amount to
US$22.8million or 24% of total cost. Detailed costs are given in
Annex 2 and aresummarized below.
Summary Cost Estimates
-----Rs Million----- ---- US$ Million----- ForeignCategory Local
Foreign Total Local Foreign Total Exchange
On-Farm CreditPlantation 14.0 - 14.0 1.7 - 1.7 -Equipment 17.5 -
17.5 2.1 - 2.1 -Rearing Houses 18.9 - 18.9 2.3 - 2.3 -
Credit for ReelingCottage Basins 16.0 - 16.0 1.9 - 1.9 -
Subtotal Credit 66.4 - 66.4 8.0 - 8.0 -Dept. of
SericultureGrainages 85.7 0.5 86.2 10.2 0.1 10.3 1Hatcheries 73.4 -
73.4 8.7 - 8.7 -Model Hatcheries 5.1 - 5.1 0.6 - 0.6Tech. Service
Cntrs. 85.8 - 85.8 10.2 - 10.2 -Mobile Demo. Units 1.1 - 1.1 0.1 -
0.1 -Training Schools 7.7 - 7.7 0.9 - 0.9 -Cocoon Markets 25.3 -
25.3 3.0 - 3.0 -Filature 2.6 3.4 6.0 0.3 0.4 0.7 57Inc. Admin. Cost
25.6 - 25.6 3.1 - 3.1 -
Subtotal DOS 312.3 3.9 316.2 37.1 0.5 37.6 1KSICFilature 6.8
35.6 42.4 0.8 4.2 5.0 84Spun Silk Mill 17.4 65.8 83.2 2.1 7.8 9.9
79Hdqrtrs. and Workshop 6.1 - 6.1 0.7 - 0.7 -Net Inc. Working
Cap./a 3.9 - 3.9 0.5 - 0.5 -
Subtotal KSIC 34.2 101.4 135.6 4.1 12.0 16.1 75Research
Component 55.3 11.8 67.1 6.6 1.4 8.0 18Tech. Asst./Study Tours 1.4
18.5 19.9 0.2 2.2 2.4 92Project Evaluation Study 1.5 - 1.5 0.2 -
0.2 -
Base Cost Estimate 471.1 135.6 606.7 56.2 16.1 72.3 22Physical
Contingencies 25.2 11.8 37.0 3.0 1.4 4.4Price Contingencies 127.8
27.0 ,154.8 15.2 3.2 18.4
Total Project Cost 624.1 174.4 798.5 74.4 20.7 95.1 22
/a Working capital to finance incremental inventories,
receivables and cashbalance necessary for efficient operations.
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Financing
4.02 The proposed IDA credit of US$54 million would be made to
GOI onstandard terms and would cover about 61% of project costs net
of duties andtaxes, 57% of total project costs, or all foreign
costs and 45% of local costs.The balance would be met by GOI, GOK,
ARDC, IDBI, banks, silk farmers andreelers as shown in the
following project financing plan:
Financing PlanFarmers! IDA % of
Total GOI/GOK ARDC IDBI Banks Reelers Amount
Total--------------------- Rs Million
--------------------------
Farmers/Reelers 82.3 - 29.8 - 7.5 8.0 37.0 45DOS 415.5 165.5 /a
- - - - 250.0 60KSIC 182.3 60.8 - 41.5 - - 80.0 44Research 91.5
31.5 - - - - 60.0 66TA/Study 26.9 - - - - - 26.9 100
Total 798.5 257.8 29.8 41.5 7.5 8.0 453.9% of Total 100 32 4 5 1
1 57
/a About Rs 75 million is estimated cash generation from
grainages, marketsand the small filature.
4.03 GOI would onlend US$4.4 million of the IDA Credit to ARDC
torefinance silk farming development loans to farmers and cottage
basindevelopment loans to reelers; and US$9.5 million to IDBI to
lend to KSICfor modernization and expansion of silk processing
factories. ARDC andIDBI interest rates are discussed in para 5.16.
GOI would bear the foreignexchange risks for finance onlent to ARDC
and IDBI. GOI would use US$5.5million for implementing the
technical assistance, overseas training andCSRTI research programs
and would channel the balance to GOK for componentsto be carried
out by DOS, Universities and the KSSDI, in accordance with
GOIstandard arrangements for IDA assisted state development
projects. Retroac-tive financing to cover early project
implementation costs from October 1,1979, up to US$1 million have
been included. This financing would mainlycover expenditure for the
departmental program for establishment of TSC andcommunal
hatcheries.
Procurement
4.04 Civil works for KSIC, the departmental program and the
researchprogram costing about US$8.2 million, would be carried out
on about 90sites over five years. Contracts for such work would not
attract foreignbidders and would be awarded after local competitive
bidding, using GOI orGOK procedures, which are satisfactory to
IDA.
4.05 About 250 motor vehicles (US$1.9 million) would be required
byproject agencies, mainly DOS. They would be purchased over a
five-yearperiod and would be widely spread in rural areas. Adequate
maintenance andavailability of spare parts would be of paramount
importance, and this wouldnecessitate purchase of locally made
vehicles of types already in use byproject agencies. Procurement
would be according to GOI and GOK procedures.
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Motorcycles (US$0.3 million) would be purchased by individual
departmentalstaff, from loan funds provided by GOK.
4.06 Reeling and spinning machinery and major items of ancillary
equipmentsuch as boilers for KSIC and for the departmental filature
(US$14.0 million)and cold store equipment, refrigerators, and
generators for departmentalgrainages (US$1.9 million) would be
procured by international competitivebidding, following Bank Group
guidelines for procurement. A 15% preferenceon bids based on the
CIF price of each item or the actual custom tariff,whichever is
lower, would be granted to domestic manufacturers.
However,contracts for these items of machinery and equipment
costing less than$100,000, when grouped together, may be awarded in
accordance with localcompetitive bidding procedures acceptable to
the Association.
4.07 Other equipment would consist of furniture, silkworm
rearing equip-ment, farm and laboratory equipment (US$9.1 million)
to be purchased overfive years for use over a wide area. These
items are not suitable for inter-national bidding and would be
purchased by local competitive bidding procedures.Farmers and silk
reelers drawing loans for mulberry planting, silkworm
rearingequipment and cottage basins (US$8.0 million) would purchase
materials andequipment individually from dealers of their choice
and would also arrangeconstruction of rearing houses and reeling
sheds locally. Technical assistanceand overseas study tours (US$2.4
million) and the project evaluation study(US$0.2 million) would be
arranged on terms and conditions satisfactory to IDA.The balance of
the project cost (US$30.7 million) would cover DOS
incrementaloperating costs and staff salaries and those of
participating research agencies,KSIC working capital and land
purchase for the research cDmponent, which wouldnot involve
procurement. The above figures include physical
contingencies(US$4.4 million), but exclude price contingencies,
which amount to US$18.4million.
4.08 Small, off-the-shelf items, costing less than US$10,000 and
not morethan US$1 million in aggregate, which are required urgently
for project execu-tion, would be purchased by prudent shopping,
through normal commercial channels.For all contracts for civil
works exceeding US$200,000 and for purchase ofequipment and
supplies exceeding US$100,000, draft tender documents, proposalsfor
advertising, bid evaluations and award proposals would be sent to
IDA forreview before contract award. Copies of such contracts would
be sent to IDAimmediately after award. Assurances were obtained
that procedures outlinedin paras 4.04 through 4.08 would be
observed.
Disbursement
4.09 Disbursements from the credit would cover:
(a) 55% of ARDC refinance of loans to farmers and reelers;
(b) 70% of loans to KSIC for civil works, machinery
andequipment;
(c) 75% of civil works, vehicles, equipment, farm develop-ment
and incremental staff costs for DOS and partici-pating research
agencies; and
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(d) 100% of the cost of technical assistance, training abroadand
evaluation studies.
4.10 Disbursements under item (d) and for expenditures under
item (b)and (c) exceeding Rs 50,000 for machinery, vehicles and
equipment and for civilworks exceeding Rs 100,000 would be made
against full documentation suppliedto IDA through GOI.
Disbursements for item (a) would be made against certifi-cation by
ARDC and for all other items against certificates of
expendituresubmitted by implementing agencies including DOS, and
research agencies. Sup-porting documents for these payments would
not be submitted to IDA but wouldbe retained by the implementing
agency and made available to IDA during thecourse of review
missions. Certificates of expenditure would be audited atleast once
every six months and a report submitted to IDA promptly
thereafter.The cost of land purchases or working capital for KSIC
would not qualify fordisbursement of IDA funds. A schedule of
disbursements is shown in Annex 3.
V. ORGANIZATION AND MANAGEMENT
Department of Sericulture
5.01 The Department of Sericulture would implement all
components con-nected with cocoon production, including
development, grainages, TSC, communaland model hatcheries, training
centers and cocoon markets. The Departmentwould cooperate close.y
with credit agencies (para 5.12) which would carryout the lending
progrim for silk farmers and reelers and finally, DOS
wouldestablish and operate a filature in the new areas.
5.02 DOS is part of the State Ministry of Industries and is
headed bythe Director of Sericulture, responsible to the Secretary
of Industries. Atappraisal, DOS was essentially organized into four
zones each under a DeputyDirector supervising about six Assistant
Directors (ADS). There were alsoadequate administrative and finance
staff at Headquarters as well as foursenior (Deputy Director and
Joint Director Level) 1/ specialists for grainages,marketing,
cooperatives and supervision of seed areas. The Department
isdynamic and well organized and its staff responds well to its
strong leader-ship. DOS is reorganizing in preparation for doubling
its technical staffover the project period and the proposed
organization and services that itwould operate are shown on Chart
21296. The field services would be organ-ized on a District basis
with a Deputy Director in charge. Each District wouldhave divisions
(5 in Mysore, 3 in Bangalore and 2 in all other Districts)headed by
an ADS, whose primary task would be organization and supervision
ofTSC and communal hatcheries. At Head Office, apart from a Senior
TechnicalAdvisor, there would be five Joint Directors and a Joint
Registrar of coopera-tives to broaden the specialities dealt with
at Headquarters to include silkfarms and technical services. With
the exception of the large new grainagesand a filature to be
constructed under the project, which would be directed
1/ Ranking in most government departments in India is as follows
in descend-ing order of seniority: Director, Additional Director,
Joint Director,Deputy Director and Assistant Director.
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by Head Office staff, all departmental facilities and services
in the field
would be supervised by District staff. Other Head Office
specialists would
provide services, guidance, standardization and coordination for
their relevant
specialities and would supervise them on behalf of the Director.
They can beregarded as senior subject matter specialists. Because
of its size, each new
grainage would be headed by a Deputy Director who would report
to the Joint
Director Grainages at headquarters.
5.03 The Department would also strengthen its administrative
services at
headquarters adequately to deal with the extra workload caused
by expansion
of staff and services. To carry out the heavy construction
program unde