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A New Approach for Fixation of Price of Green Cocoons.

M.A.Qader
Senior Research Officer
BSRTI, Rajshahi.

A. C. Barman
Director (In charge)
BSRTI, Rajshahi.

M. A. Rab
BSRTI, Rajshahi.

Abstract/ Executive Summary:

Bangladesh practices an age old method of price fixation of cocoons called gram weight. It is a lengthy process to some extent more critical in nature and inconceivable to most of the growers. This method is very often questioned for its incorrectness unsuitability and creates scope of manipulation, thereby incurring losses to farmers. Before adopting a standard scientific method for fixing correct price of cocoons it is essential to evolve a rational methods of estimation to detect actual raw silk yield of cocoons before reeling. The present study provides a very simple formula which can be used to fix the price of any lot of green cocoons on the basis of actual raw silk market price in different seasons. The standard price thus obtained will not be universally applicable for all the cocoon growers because of variations in their performances and also in outputs. That is why a number of upper and lower ranges will be required to secure actual price of different grade of cocoons. Thus taking the average number of cocoons per kg as standard a scale of price upto four upper and four lower limits each with a difference of 50 cocoons was tabulated.

Keywords: Fixation, Price of green cocoons, Normal and defective cocoons, Scale of price.

Location: Bangladesh Sericulture Research and Training Institute.

Start Date: 01-01-1989

End Date: 31-12-1990

Program Area: Socio-economic and Policy

Commodity: Silkworm

Objectives:

To fix the price of any lot of green cocoons on the basis of actual raw silk market price in different seasons.

Methodology:

In Bangladesh the following three distinct environments are prevalent based on the difference in temperature and relative humidity: a) Summer season: 16th April to 15th June. b) Rainy season: 16th June to 15th October. c) Winter season: 16th October to 15th April. These environments largely influence the quantity and quality of cocoons production in the country. At the onset performance and breeds were determined. Then standard price per kg cocoons of different races harvested in a particular area and season is determined in accordance with the experimental reeling result. For a particular region and season ten samples of each breed, each weighting one kg were collected after completion of spinning. After drying and reeling of the sample lots average number of cocoons per kg( Standard number) were calculated. Production cost for one kg raw silk was calculated on the basis of information obtained from different private reeling (cottage basin and katghai) establishments which was fixed at taka 300.00 per kg. profit per kg raw silk was fixed at taka 200.00 including income from byproducts. Finally the following formula was deduced for standardization of the price of cocoons to be sold. Standard average price of one kg fresh cocoon = A-(B+C)/1000 X D Where A= Prevalent market price of one kg raw silk. B= Production cost per kg raw silk based on the physical observations on different reeling machine. C= Profit per kg raw silk. D= Average yield of raw silk per kg cocoon.

Source of Information: Bulletin of Sericulture Research. 1991 Vol.2 : 91-94 published by Bangladesh Sericulture Research and Training Institute.

Article Link (Online Journal):

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The price of the lot has to be determined in the following way:

i) The number of both normal and defective cocoons per kg is considered as the number of cocoons per kg.

ii) Scale of price shown in different limits is applicable for good cocoons only. Thus by multiplying the quantity of good cocoons with the scale limit its price may be obtained.

iii) the price per kg of defective cocoons will be one tenth of the price per kg of good cocoons.

Knowledge Management: Journal