Economic Analysis of Break-Even Point of Sericulture Units in Amravati District of Maharashtra

Abstract

Sericulture has increasingly positioned itself as a viable agro–based livelihood activity in the non-traditional regions of Maharashtra, especially within Vidarbha, where farmers have begun to explore alternative income avenues. In this context, the present investigation examines the break-even point (BEP) of mulberry sericulture units in Amravati district. The analysis is grounded in primary data collected during the 2023–24 agricultural year from 60 practising farmers spread across four tehsils—Morshi, Chandur Bazar, Chandur Railway, and Nandgaon Khandeshwar. The study employed a detailed cost–return framework, and the BEP was estimated both in physical units and in monetary terms. The results indicate that sericulture units must produce at least 103.73 kg of cocoons, equivalent to ₹46,679.08, to cover their total annual cost. The overall cost of production per unit amounted to ₹1,72,372, whereas the average realised output of 946 kg generated a gross return of ₹4,25,700. This translated into a net profit of ₹2,53,328, accompanied by a highly favourable Benefit–Cost Ratio of 1.82. Owing to the sizeable difference between actual production and the break-even requirement, the units enjoyed a margin of safety of 842.27 kg (89.03%), highlighting their strong economic resilience. Such a margin provides farmers with a reliable cushion against price volatility and biological or environmental uncertainties. Overall, the evidence suggests that mulberry sericulture in Amravati is not only profitable but also scalable, particularly for small and marginal farmers who often seek enterprises with modest fixed costs and assured market demand. The study further underscores the value of ongoing state interventions, including schemes such as Mahareshim Abhiyan, which facilitate access to improved silkworm races, quality saplings, and technical guidance. Strengthening these initiatives—alongside efficient management of variable inputs—can enhance productivity and make sericulture an even more attractive option for rural households. In sum, the enterprise holds considerable promise for augmenting income, diversifying farming systems, and contributing to the broader socio-economic upliftment of the region.

Affiliated Institutions

• Sant Gadge Baba Amravati University IN

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