Loans And Subsidies For Sericulture Farming In India

Sericulture Farming Subsidies in India: Sericulture is the art of rearing Silkworms along with the cultivation of Mulberry for silkworm food. The raw product of the Sericulture Industry is Silk. While the demand for Silk in India and overseas is high and increasing rapidly. Hence you should Start Sericulture. Also, the Profits in silkworm rearing are high. In the last post, we have given information about Income returns from Sericulture Farming in India. In this post, you will get to know about subsidies and schemes for Sericulture Farming.

Many farmers are unaware of loans and schemes for sericulture farming. Staes and central government are providing many schemes to increase the silk production in the country. Staes and central government are providing many schemes to increase the silk production in the country. In addition, NABARD and Banks also give loans for silkworm rearing.

NABARD Loan for Sericulture Farming

To boost the Sericulture Industry and to encourage farmers, NABARD is giving loans to the eligible candidates. However, to get the loan from NABARD, one should visit the nearby bank and get the loan sanctioned. In this way, Banks with support from NABARD giving loans for Sericulture Farming.

Eligible candidates

  • Farmers.
  • Individuals.
  • Self Help Groups (SHG).
  • NGO’s Unemployed students.

Mandatory Amenities

  • Individual or organization should own or lease a cultivable land.
  • Adequate irrigation facilities for mulberry cultivation.
  • Proper sanitation.
  • Good transportation facilities.

Loan Amount: As per the NABARD rules, bank sanction the loan amount based on the marginal income. Furthermore, if the marginal income is above Rs.1,00,000, they give 10% to 15% and varies accordingly.

Repayment Period

  • For mulberry cultivation, it is 1 year.
  • To rearing house, it is 3 years.
  • For Equipment, 3 years.
  • To reeling unit, 7 years.

Sericulture Farming Subsidies from State Sericulture Department

For Farmers

ParticularSubsidy Amount in Rs.
For Cultivation Of Mulberry in 1 acre 10,500
Construction of Silkworm rearing Shed 2,75,000
Irrigation Facility for Mulberry Plantation37,500
Farm Mechanization10,000
For purchasing Orgainic fetilizers5,000
Incentives for Productivity (per extra Kg)20
Medical Alotment 1,50,000

For Reeling units and Reelers

ParticularSubsidy amount in Rs.
To setup 10 basin multi end reeling units 7,50,000
To setup 20 basin multi end reeling units12,75,000
For construction of reeling shed 10,000
Constructing Reeling Shed for 6 by 10 improved cottage basin50,000
Constructing Reeling Shed for 6 by 10 Multi End Reeling Unit50,000
Production incentive per Kg for CB Silk Yarn produced on Charka or Cottage basin30
Production incentive per Kg CB Silk Yarn produced on Multi End Reeling Unit50
Production incentive per Kg Bivoltine Silk Yarn produced by Multi End Reeling Unit130
Production incentive per Kg Bivoltine Silk Yarn produced by Automatic Reeling Machines150

Sericulture Farming Subsidies

Central Silk Board Scheme for Sericulture Farming

Central government support the farmers and individuals to set up the sericulture unit. Furthermore, you can check the various aspects of the Scheme in the below section.

Under Beneficiary Empowerment Programme

  • If the unit cost is Rs. 7,000, gives 100% subsidy i.e.
  • CSB subsidy is Rs.7,000.

For Silkworm Shed Construction

  • If the unit cost to construct silkworm shed is Rs.5,00,000, CSB share is 80%.
  • It means it gives a subsidy up to Rs.4,00,000.

To establish Chawki rearing centre

  • If The Chawki rearing centre construction cost is Rs.10,00,000.
  • CSB subsidy is 80% i.e. Rs.8,00,000.

To establish Seri Poly Clinic

  • If the unit price to construct is Rs.1,40,000, CSB gives 80% subsidy along with 20% beneficiary share.
  • The Total benefit from this is Rs.1,12,000.

To supply MIcro Nutrients

  • For supplying micronutrients in the Mulberry crop, it costs Rs.1000.
  • While the subsidy is 80% which means Rs.800 is subsidy and Rs.200 is beneficiary share.

Incentives for Increase in Productivity

  • A total of 100% incentives is given for extra Kg production.
  • Furthermore, If the rate of Kg Silk is Rs.100, then you will get extra Rs.100 per Kg production.


These are the different Loans and Sericulture Farming Subsidies in India. While we hope that you have got the information that you are looking for. Furthermore, check the below link to know more about Silk Farming in India.

Problems in Sericulture Farming in India

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