INTRODUCTION
India continues to be the second largest producer of silk in the world and has the distinction of producing all the four varieties of silk. Among the four varieties of silk produced, in 1999-2000, mulberry accounted for 91.7%, eri 6.4%, tasar 1.4% and muga 0.5% of the total raw silk production in the country.

Sericulture is an important labour-intensive and agro-based cottage industry, providing gainful occupation to about 64 lakh persons in the rural and semi-urban areas in India. Of these, a sizeable number of workers belong to the economically weaker sections of society. There is substantial involvement of women in this industry.

PRODUCTION
Production, employment and exports during the year showed increase, as follows:

SILK EXPORTS

Sl No.	Particulars	1999-2000 Achievement	2000-01 Anticipated Achievements
I	Standing Area under mulberry (lakh ha.)	2.27	2.80
II	Production of raw silk (Tonnes)	15,214	16,740
III	Employment (lakh persons)	63.64	65.22

Total silk export earnings during the years 1997-98, 1998-99, 1999-00 and 2000 - 01 (April to December) are as follows :
(Rs. In crore)

Year	Certified Exports	DEPB*	EOUs	Total
1997-98	926.29	-	133.87	1060.16
1998-99	1036.28	50.06	164.21	1250.55
1999-00	1276.00	25.68	200.10	1501.78
2000-01	1005.38	-	158.46	1163.84

* Direct exports without Central Silk Board certification under DEPB Schemes.
Work relating to sericulture and silk is carried out by the Ministry mainly through the efforts of the Central Silk Board (CSB), working closely with the State Departments of Sericulture & the Silk Industry. In addition, there is the Indian Silk Export Promotion Council (ISEPC), to promote export of silk.

CENTRAL SILK BOARD
The Central Silk Board was set up in 1949 when Central Government assumed responsibility for the development of the silk industry by Parliament passing the Central Silk Board Act, 1948. Headquartered at Bangalore, and headed by a Chairman and 35 members, the Board’s works is in the 3 broad areas of Research & Technology Development, Seed Maintenance, and Development of Sericulture & Silk Industry, to support, supplement & facilitate the efforts of the State Governments.

RESEARCH AND DEVELOPMENT
The main Research & Training Institutes of the CSB function to provide R&D and Training support for the development of sericulture. The Institutes at Mysore (Karnataka), Berhampore (West Bengal) and Pampore (J&K) deal with mulberry sericulture and the one at Ranchi (Bihar) deals with Tasar. A main Research Institute has been established at Ladoigarh Jorhat (Assam) for Muga and Eri. Regional Sericultural Research Stations (RSRS/RTRS) for mulberry and non-mulberry have been functioning for the dissemination of research findings and tackling the regional field issues of the industry. Besides, a network of Research Extension Centres (RECs) for mulberry and non-mulberry are also functioning to provide extension support to sericulturists. In order to provide R&D support in post-cocoon processing, the Board has established a Central Silk Technological Research Institute (CSTRI) at Bangalore. In addition, the CSB has also set up a Silkworm Seed Technology Laboratory (SSTL) in Bangalore (Karnataka), a Central Sericultural Germplasm Resources Centre (CSGRC) at Hosur, (Tamil Nadu) and a Seri-Biotech Research Laboratory (SBRL) at Bangalore.

Research work on the on-farm side continued to be directed mainly at (i) evolving stress tolerant mulberry, eri and muga plant varieties, which give high leaf yield, breeding superior silkworm races; (ii) evolving improved techniques of silkworm rearing to give higher productivities; and (iii) control of pests and diseases of both plant and silkworms. During the year 2000-2001, 4 mulberry silkworm hybrids were developed and are put under field trial at 25 Race Authorization Test Centres.

On the post-cocoon side The Central Silk Technological Research Institute, Bangalore has developed a multiend reeling package for reeling quality silk from bivoltine and crossbreed cocoons. It has also fabricated a low-cost multifuel drying chamber, a tail end cutter and slit buttons; cooking technologies of different commercial tasar cocoons for reeling on tasar reeling charkha (TRC); low-cost improved pedal-cum-motorised reeling-cum-twisting devices for tasar and muga; and improved spinning wheel for muga and eri, which will produce better quality silk/spun yarn with less wastage, thereby fetching higher income.

SEED MAINTAINENCE
The National Silkworm Seed Project (NSSP) has been entrusted with the responsibility of production of quality Silkworm Seed. During 2000-2001 (upto Nov.2000)143.46 lakh dfls (disease free layings) were produced under NSSP. Also in the year 2000-2001 (upto Dec’00) 9.17 lakh tasar basic seed, 0.304 lakh oak tasar basic seed and 1.42 lakh muga basic seed have been produced and supplied by CSB units to State Departments for further multiplication. The muga and eri Silkworm Seed Production Centres (SSPCs) have produced 0.96 lakh & 0.24 lakh commercial seeds respectively during the year 2000-01 (Upto Dec’ 2000).

TRAINING
CSB organizes a number of training programmes at its Research and Training Institutes. The total number of persons trained during 1999-2000 and 2000-O1 (upto Sept’ 2000) is detailed in Table 8.1
Table 8.1
Number of Persons trained during 1999-2000 and 2000-01
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DEVELOPMENT SCHEMES AND PROGRAMMES
Development schemes & programmes supported by the CSB include those which are fully funded by the Centre, those financed by Centre and State both, and those which are externally assisted. Progress during the year in the main schemes is briefly given below:

Catalytic Development Scheme
Thirty six catalytic schemes of the CSB were approved at a cost of Rs. 89.27 crore for the IX Plan These are targetted to motivate State efforts towards productivity, quality and market support. Central Silk Board has so far received and approved upto December’ 2000, a total number of 285 micro projects for implementation at a total cost of Rs. 99.25 crore of which CSB’s share is Rs.54.77 crore. The States have initiated implementation of these schemes in 1998-99 and 206 micro projects/ proposals have been implemented. The CSB has released/spent till December,2000 Rs.21.94 crore to the States for implementation of these Micro projects.

The United Nation’s Development Programme (UNDP)
The UNDP in collaboration with Govt. of India has initiated a Sub-programme on development of Non-mulberry silk - tasar, muga and eri - in Andhra Pradesh, Assam, Bihar, Orissa, Meghalaya, Nagaland and West Bengal under Fibres and Handicrafts Programme (FHAP) of Country Co-operation Frame Work - 1 (CCF-1) with a total out lay of Rs.1199 lakh, of which Govt. of India share is Rs. 398 lakh and UNDP share is Rs.801 lakh for a period of three years from 1999-2000.
The Central Silk Board is implementing the Sub-programme which aims to increase quality egg production and supply, impart necessary training and skill up-gradation to the farmers particularly women in good management practices, provide technological support in pre-cocoon and post cocoon processes including reeling, spinning and processing of silk through pilot initiatives and provide replicable models of entrepreneurship. Design upgradation and marketing assistance, Human Resource Development (HRD) are also built in the sub-programme structure. The targeted beneficiaries largely belonging to weaker sections of the society have been grouped into co-operatives, women groups, self help groups etc. involving NGOs. Nearly, 10,000 beneficiaries are proposed to be covered with an estimated direct employment generation of 3.5 lakh man years. The expected production of tasar raw silk is 42 tonnes, tasar spun silk 19 tonnes, muga raw silk 16 tonnes, muga spun silk 13 tonnes, eri spun silk 293 tonnes and eri pupae 2232 tonnes through this programme.
The project outlay is indicated in the Table 8.2.

Sl.no	Sector	Project Area	UNDP	Financial Outlay Govt. of India(GOI)			Total	Total GOI + UNDP
1.	Non - Mullberry Silk	Assam, Bihar , Andhra Pradesh, Meghalaya, Orissa, West Bengal and Nagaland	800 . 84	125 . 41	141 . 25	131 . 54	398 . 20	1199 . 04

During 2000-01 upto February, an amount of Rs. 4.20 Crore and Rs.1.41 crore has been released under UNDP component and Government of India share resepectively. The cumulative releases are Rs.5.10 crore and Rs.2.24 crore under UNDP component and Government of India share respectively. Private grainages have been set up, improved reeling & spinning technologies have been adopted, and work for product development has begun.

Japan International Cooperative Agency(JICA)
Assisted Bivoltine Project The first phase of JICA assisted Bivoltine Sericulture Technology Development Project (BSTD) was implemented from 1991 to 1997.During this phase, JICA has made available 12 long-term experts, 28 short term experts and trained 28 counterparts, apart from providing equipment valued about 321 million Japanese Yen.With the implementation of this project, a comprehensive practical Bivoltine Sericulture Technology suitable to Indian conditions has been developed.
The second phase of the JICA assisted Project for Promotion of Popularising the Practical Bivoltine Sericulture Technology (PPPBST) of 5 years duration is being implemented from 1st April 1997 for field verification and demonstration of Bivoltine technologies evolved in the first phase. JICA has made available so far the services of 1 Team Leader,1Co-ordinator, 9 Long Term experts,20 Short Term experts and accepted 30 Indian scientists for training under the counterpart training component. In the year 1997-98,two bivoltine technology verification trials, in 1998-99, three trials, in 1999-2000, three trials and in 2000-01(up to December’00) three bivoltine technology verification trials with the identified farmers were conducted. The performance of these Bivoltine races has been good and the average yield is over 60Kg/100 Dfls, a renditta of 6-7 Kgs and a high quality 2A-4A grade rawsilk has been obtained consistently. With the success achieved, the project implementation has been extended to the states of Tamilnadu and Andhra Pradesh. The experience is being used to design a programme to take bivoltine sericulture to scale.

M.P. Sericulture Project
The project is being implemented by DOS, MP in collaboration with Japanese Bank for International Cooperation (JBIC) and Government of India. The project cost is Rs.117.10 crore for first phase and Rs.631.70 crore for second phase. The first phase is for 7 years and the second phase 5 years. The project commenced from 1.4.98. Its objective is to raise 4000 ha of tasar plantation covering 4000 beneficiaries; achieve production of 75 MT of raw silk and 22.5 MT of Spun Silk Yarn annually from 4th year; and give employment for 10,000 persons.
As on 19.05.2000 plantation was raised in 830 ha and an amount of Rs.483.81 lakh was incurred. The bifurcation of the State of M.P. has transferred the main area of the Project to Chattisgarh.

Manipur Sericulture Project
This project is being implemented by DOS, Manipur in collaboration with Japanese Bank for International Cooperation (JBIC) and Government of India. The outlay is Rs.134.52 crore for first phase and Rs.356.09 crore for second phase to be implemented over a period 7 years and 5 years respectively. The project commenced from 28.7.98. The objectives are raising of 1020 ha of mulberry plantation covering 3000 beneficiaries; achieve production of 60 MT of raw silk annually from 4th year; and provision of employment for 7000 persons.
As on 31.5.2000 the consultant engineers in collaboration with DOS staff have completed topographical survey and Mapping of Development Schemes areas at 13 locations and submitted draft drawing for 9 locations. 3 Field Operation Units have been formed and one model rearing house has been constructed at Sangaithel Pilot Scheme. 4800 dfls of P2 silkworms has been reared under multiplication of hybrid silkworm eggs scheme.

SERI 2000
Under an agreement entered into with Swiss Agency for Development and Cooperation (SDC), SERI-2000 programme between 1997-2002 at an outlay of Rs.12.5 million Swiss Francs is being implemented. The programme covers projects both in public and private sector in Karnataka, Andhra Pradesh, Tamil Nadu and West Bengal. The Govt. of India through the participating institutions provides facilities, personnel and services as per the requirement of the programme. The aim is to generate viable enterprises, employment and sustainable income, primarily for the weaker sections of the population, including women, in rural and semi-urban areas.
As on December’2000, 35 project proposals under private Sector at an outlay of Rs.1027.14 lakh have been approved. Under public sector, 22 projects at an outlay of Rs.841.16 lakh have been approved.

BUDGET
For the year 2000-01, a provision of Rs.72/- crores under plan and Rs.15.30 crores under non plan and Rs.4.20 crores for UNDP externally aided non-mulberry silk sub-programme have been made for CSB. The entire provision has been released and will be utilised.

MISCELLANEOUS
To plan for optimal use of infrastructure created under the National Sericulture Project (1989-1996), and reassess the manpower requirements of CSB, Ministry of Textiles had commissioned a study by National Institute of Science Technology & Development Studies (NISTADS).
NISTADS submitted its final report on “Optimum utilization of Infrastructure and Manpower in CENTRAL SILK BOARD “ to the Ministry. The Ministry in turn constituted a Committee under the Chairmanship of Addl Secretary & Financial Adviser. The report submitted by the Committee is under consideration for restructuring the Central Silk Board to enhance the role of private sector and increase the role and responsibility of the state Governments for all-round development of silk industry in the years to come to bridge the gap between the availability and demand for silk in the country.

INDIAN SILK EXPORT PROMOTION COUNCIL
The Indian Silk Export Promotion Council (ISEPC), Mumbai continues to undertake activities relating to promotion of exports of natutal silk goods from India and to act as the registering authority for silk exporters. The Council produces and disseminates information to its members about market developments in the world, changes in the trade policies etc. through its weekly bulletin known as the “Silk Net”. The silk sample catalogues containing sample swatches of the full range of silks available in India brought out by the Council are available to potential buyer, importing textile agents and Indian Missions abroad. The Council participated in Pret-a-Porter Fair, Paris, (Sep 8-11-2000) and TIP 8 fair, Brussels (September 9-12-2000).
To enable exporters of silk goods access to quality silk at international prices, the Government has allowed silk exporters the facility to import raw material requirements on duty-free basis under the Advance Licensing Scheme (ALS). In addition to this, imports of raw silk of Grade 2 A and above was brought under Canalization by designated agencies to make available quality silk for warp yarn in power loom as also for handloom units. The liberalized input output norms continued in the current policy with a marginal increase for garments exports. Rationalized value addition continued without any change. Under EPCG “Zero Duty Scheme”, the threshold level for duty exemption on import of capital goods is Rs.1 crore.
In the current year, import of silk is allowed under Special Import License (SIL). Under Advanced Licensing, the Duty Exemption scheme is made on actual user condition. However, a new scheme called Duty Free Replenishment Certificate is introduced, to enable import of raw silk by silk exporters. Import of capital goods for silk industries is allowed without any threshold limit but with lower import duty