Keywords

1 Introduction

The development of a country depends on its participation in the process of industrialization, which largely depends on global supply chains (Gereffi and Lee 2012). Chain refers to a vertical relationship between producers and buyers. It also indicates a movement of products to the consumers (Meaton et al. 2013). The efficient and timely distribution of products across the supply chain is the key issue in international trade (Gereffi and Lee 2012). The value chain transforms a conception into a product or service and delivers it to final consumers through different stages (Kaplinsky and Morris 2001). The process leads to the final utilization of a product or service (Sturgeon 2001; Ponte et al. 2019).

One can understand the potential impact of value chain development on poverty reduction using value chain analysis which includes governance, coordination, policies, and operations to create links and reliance between actors in the chain. It also specifies the existence and evolution of the relationship between the actors (Rosales et al. 2017). The global value chain focuses on creating values for goods and services throughout economic activities (Gereffi 2011, 2013). It upgrades the distribution channel by establishing the structural connectivity between the input and output processes among farms and countries (Lee and Gereffi 2015; Akram 2015). It also helps to understand the creation, capture, and sustenance of values in different industries (Gereffi and Lee 2016).

Sericulture is the mixture of growing plants and rearing insects that produce silk (Ruiz et al. 2020). Tesfa et al. (2014) and Sime and Siraj (2020) have studied the status, opportunities, and constraints of the production systems and marketing channels of sericulture in Ethiopia. Similarly, Jantakat and Tangjaturasopon (2012) have pointed out the barriers (e.g., weak sales and marketing systems with insufficient data) in the value chain process for silk production in the Nakhonchaiburin zone, Thailand. The chapter has also emphasized silk production and marketing. Angadi et al. (2013) have drawn attention to expanding the new applications of the waste of mulberry plants, which may bring additional income and establish the sericulture industry as more cost-effective. Shukla (2012) has addressed the cost of farming mulberry plants and the profits from the cultivation and silkworm rearing in the Udaipur district in Rajasthan, India. He has focused on human labor in the expensive sericulture industry. Eswarappa (2011) has discussed the role of Community-Based Organizations (CBOs) in developing the sericulture sector in Andhra Pradesh, India. Sujatha et al. (2015) have investigated the impact of socioeconomic factors on the adoption of new technologies in the sericulture industry in Andhra Pradesh, India, such as education, experience, cocoon yield, and cocoon price. They have found a constructive impact on decisions of farmer regarding the issue. Porrasa et al. (2017) have studied the Hilsa value chain that provides data and indications on developments and profit-making of Hilsa fish in Bangladesh. Hossain et al. (2019) have investigated the market dynamics of sunflowers in coastal Bangladesh. They have identified the shortage of quality seeds of sunflowers and their price fluctuation. The whole value chain of sunflowers, which includes collectors, processors, wholesalers, and retailers, gets more profit than farmers. Uddin et al. (2018) have assessed the value chain of fishes like Pangas and Tilapia and analyzed the governance of the market players in Bangladesh. They have indicated the negative scenarios of fishes like Pangas and Tilapia production due to poor market infrastructure and increasing fodder costs.

However, none of the studies looked at the strength, weaknesses, opportunities, and threats for further development of the value chain of the sericulture industry in Bangladesh. The ultimate aim of this chapter is to figure out the complete value chain of sericulture in Bangladesh and to intend to generate employment opportunities. Furthermore, the study aimed at analyzing the value chain to (i) understand the main features of value chains of sericulture; (ii) identify and measure the weaknesses and threats along the value chain; (iii) identify existing profitability in the sericulture industry; and (iv) suggest the strengths and opportunities of this sector.

2 Methods

2.1 Study Area Selection

Sericulture is widely produced in Bagha, Charghat, Paba, and Godagari Upazilas of Rajshahi district, Bholahat, Shibganj, Nachol, and Gomostapur of Chapainawabganj district, and some selected areas of Thakurgaon and Panchagorh districts in Bangladesh. To achieve the predetermined objectives, we have purposively selected sericulture production areas: Bagha and Charghat Upazilas from Rajshahi district and Bholahat Upazila from Chapainawabganj district because sericulture production is much higher in these areas than that of other areas of Bangladesh. We have considered Bholahat Upazila of Chapainawabganj district as the most important production and trading area of sericulture for our analytical research on the value chain of sericulture (Figs. 12.1 and 12.2).

Fig. 12.1
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Sericulture cultivated areas in Bangladesh

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Fig. 12.2
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Map showing the study areas

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2.2 Sample Size Selection

The sample size for the in-depth interview was 48. Among the selected samples, 36 were from experienced farmers, two from modern reelers (who have dealt with reeling industry), three from traditional reelers from Bholahat Upazila, two from the weaving industry, two from traditional weavers, and three officers from Bangladesh Sericulture Research and Training Institute (BSRTI) (one from each wing namely cocoon/ silkworm, reeling and farming research wings, respectively). Key informants were selected from farmers, agriculture extension officials, researchers, owners of the reeling and weaving industry (both traditional and modern), and traders. The total number of key informants was 18; among them, six were from farmers, four from agriculture extension officials (local and head office), two researchers from BSRTI, two from reeling industries (traditional and modern), two from weaving industries (traditional and modern), and two from traders.

2.3 Data Sources and Collection Tools

We collected secondary data from different sources such as the Bangladesh Sericulture Development Board (BSDB) and Bangladesh Sericulture Research and Training Institute, different research articles published in different journals, annual reports of BSDB, and privately owned silk industries and websites. A literature survey was conducted using document and content analysis for secondary data collection. We collected primary data from the respondents of the study area through in-depth interviews, FGD, and Key-Informant Interviews (KII). The face-to-face interviews were conducted with structured and semi-structured questionnaires to collect the required data. For cost margin analysis, relevant information regarding fixed cost, variable cost, revenue, etc., was collected through a structured questionnaire. We also collected comprehensive data from key informants using face-to-face interviews. In addition, we conducted three focus group discussions, two in two Upazilas consisting of farmers and sericulture extension officials and one at Rajshahi City consisting of officials from BSRTI and BSDB, modern and traditional reelers and weavers.

2.4 Data Analyzing Tools

We used descriptive statistics to analyze the collected quantitative data using Statistical Package for Social Sciences (IBM SPSS) version 22.0 software. The qualitative data were interpreted using an inductive reasoning process based on research objectives and findings of the quantitative data. Nguyen and Eiligman (2010) used an analytical framework that illustrates the functions and links between each process of value chain.

  1. (A)

    Analytical framework of the value chain

figure a
  1. (B)

    Analytical framework for valuation of sericulture chain

figure b

We used the above analytical framework to develop functional chain mapping, identifying categories of actors in value chains and their relations, constraints of each stage of value chains as a whole, and providing some preliminary suggestions for further promotion of sericulture in Bangladesh. Furthermore, we used a contingent valuation method for valuation measurement to explore the economic prospects of sericulture.

3 Results and Discussion

3.1 Main Products in the Sericulture Value Chain

A value chain identifies customers’ demands and adds value to the products or services of industries (Jantakat and Tangjaturasopon 2012). A long value chain and structure are the sericulture industry’s characteristics that include several products with economic value (Buhroo et al. 2018). It starts from silk reeling and spinning in the agriculture sector and ends up in the textile and apparel companies. The supply chain creates value for various products (e.g., cocoons, silk yarn, silk textiles, and apparel) of the sericulture industry (Hui 2010).

Mulberry Leaves

Mulberry leaves are the only source to rear silkworms (Rohela et al. 2020). A mulberry orchard usually has a 15–20 years life cycle of optimal production. Mulberry leaves can be harvested six months after plantation. It depends on the variety of mulberry species and weather. At maturity, one bigha land produces around 2000–2500 kg of leaves at the field level (BSRTI 2014).

Silkworm Egg

The fluid state of proteins in a worm is known as silkworm (Saikia 2011). The first stage of silk production is the laying of silkworm eggs in a controlled environment with appropriate instruments, such as an aluminum box. After that, it is ensured that they are free from diseases. The female silkworm lays 300–400 eggs simultaneously, called a cluster of eggs. Then the tiny eggs are incubated for up to seven days until they hatch into larvae. In the case of a natural environment, hatching time depends on season and weather, as practiced in Bangladesh. Generally, farmers buy silkworm eggs from BSDB nurseries at a minimum price. However, they cannot use modern technologies. Farmers need more space for rearing in a disease-free environment, rather than using their living room or nearby living room. Farmers usually use bamboo-made coarse mats (Chatai). Conceptually, it is called the first instar. In Bangladesh, white and yellow species having different resistance abilities are usually used for rearing silkworms. The yellow species can resist hot weather conditions (like the weather condition in Rajshahi), while the white species can cope with the cold weather in the northern part of Bangladesh (like the weather condition in Panchagarh). Larva, which has a special type of protein, consumes mulberry leaves that produce silk. However, the finest silk yarn depends on the quality of leaves and management at different stages.

Cocoon

Once hatched, farmers in Bangladesh put larvae in a locally bamboo-made Chatai and feed them huge amounts of chopped young mulberry leaves. This stage is called the second instar. In this way, silkworms complete five instars to produce a cocoon. Usually, in the last instar, silkworms consume about 80% of the full feeds of their life cycle. After the fifth instar, the mature larvae are transferred into bamboo-made round shape casing (locally called Chandrika) for spinning to produce silk, and these larvae transform into cocoons within 24–48 h. The silkworm rotates its body to construct a cocoon and produces about a kilometer of silk filament, and the length depends on the species. The quality and length of filament depend on the quality of round shape casing and the timing of shifting from Chatai to Chandrika. In Bangladesh, farmers use bamboo-made casing, which is unsuitable for spinning. Good quality cocoon is the main benchmark for producing high quality silk (Halder 1999). The cocoon must be boiled or dried within 2˗3 days to prepare for reeling. Otherwise, the larva inside the cocoon will turn into a live moth and the moth comes out by cutting the cocoon shell. These cocoons will not be used for reeling.

Raw Silk

The cocoon is treated with hot air or steam and boiling water before producing the raw silk. The silk is then unbound from the cocoon by softening the sericin. Then, the silk delicately and carefully unwind from 4 to 8 cocoons together at a time, sometimes with a slight twist to create a single strand. One kg of raw silk yarn generally requires 12–15 kg of cocoons, which depends on seasonal production (cycles) in the study areas. However, one kg of raw silk normally requires only 7.6 kg of cocoons in other countries like China, Vietnam, etc.

Dead Larva

Once the cocoon is boiled in hot water and raw silk is reeled, the dead larva inside the cocoon can be served as fish and dairy feed and even considered as organic fertilizer in Bangladesh. However, farmers are usually reluctant to sell the dead larva due to market scarcity. We found little demand of dead larva in local market. Each kilogram of dead larva’s sell price is only BDT 4–5 which is not profitable due to its high processing cost. Sometimes farmers use it as poultry feed; otherwise, they throw away this dead larva.

Silk Yarn

Raw silk still contains sericin and fibroin. After washing in soap and boiling water, the silk yarn is left soft, lustrous, and up to 30% lighter. The silk yarn is twisted into a strong strand for weaving or knitting. Creating the silk yarn is called ‘throwing,’ which prevents the thread from splitting into its constituent fibers.

Silk Fabric

Weavers use silk yarn to produce final products after dying and designing it. In some cases, designing parts is very important after weaving. In Bangladesh, silk products are mostly three pieces, scarves, handbags, sharee, etc., for women and panjabi, shirts, ties, etc., for men and silk clothes, tablecloths, silk photo frames, etc., for general use, which usually sell in domestic as well as international markets. In the study area of Bholahat, some reelers make silk fabrics and silk brocade using motka silk (yarn made from silk waste) and sell it in different places in Bangladesh.

3.2 The Analytical Framework of the Value Chain

There are different actors and stages involved in the sericulture industry. Value chain analysis with detailed descriptions of these actors and stages is shown in Fig. 12.3.

Fig. 12.3
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Sericulture value chain functions

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3.3 Description of Value Chain Actors

Table 12.1 shows the description of value chain actors at different stages in the study area.

Table 12.1 Description of value chain actors in the study area at present
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3.4 State of Supporting Institutions

The sericulture industry in Bangladesh suffers from a lack of institutional assistance (Krishnan and Gurung 2015). It needs more support from meso-level bodies such as local authorities, business associations, agro-forestry institutes, or trade promotion agencies. Due to the absence of specific policy from those institutions, developing of sericulture subsector is generally mentioned as an objective in the local socioeconomic development plans of BSDB. However, more improvement needs to be made due to a requirement for more funding sources and technologies. In some places within the study areas, such as Mirganj, Bagha, and Bholahat, farmers get very modest financial and technical support from local BSDB offices. Besides, some constraints remain at the macro- and micro-levels. The main limitations identified at the macro- and micro-levels are illustrated in Fig. 12.4.

Fig. 12.4
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Critical points at macro- and micro-level support institutions

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3.5 Analysis of the Value Chain

The calculation and presentation of value addition for sericulture are based on the following facts (Table 12.2).

Table 12.2 Mulberry cultivation cost analysis (from starting up to three years/Bigha)
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The life cycle of the mulberry orchard is 20–25 years for optimal leaf production. After three years, about 30% of profit gets from one Bigha per year in the mulberry garden (Table 12.3). Initially, leaf production is minimal; after three years, it will increase.

Table 12.3 Mulberry cultivation cost analysis (after three years/Bigha) in a year
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However, at present, farmers are uninterested in mulberry gardening due to the limited market of mulberry leaves. The production of the present mulberry leaves variety is lower than the production, predicted by BSRTI. Consequently, farmers have decreased silkworm rearing. So, mulberry production might be profitable if the silkworm rearing and price of cocoon increase.

Table 12.4 shows that silkworm rearing is a profitable business in Bangladesh, as found in the study areas. From 100 Disease-free Layer: in sericulture, one egg, which means a cluster of eggs laid by a silkworm (DFL) rearing in a cycle, we found 55 kg cocoons, but it varies from farmer to farmer, area to area, and also from cycle to cycle (Bondh). We found more than nearly 30% of profits from one cycle in 100 DFL eggs. From our observation and FGD during the field survey, farmers face different problems in selling cocoons, such as monopoly pricing, lack of modern technology, and insufficient and disease-free quality leaves. Mulberry orchards are converted into mango orchards, and existing mulberry orchards are affected and polluted by different pesticides used in different crop production, especially in mango cultivation in the study area. Therefore, it takes work to motivate farmers toward silkworm cultivation. Current cocoon production needs to be increased in the study areas. In addition, the price of cocoons could be more cost-effective, discouraging the farmers from rear the silkworm. The yield of mulberry leaves and silkworm production are hampered by various risk factors, such as hot and humid weather, lack of quality eggs and mulberry leaves.

Table 12.4 Silkworm rearing per 100 DFL in one cycle
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  1. A.

    Reeling

See Tables 12.5 and 12.6.

Table 12.5 Traditional reeling (Kathghai), 3.5 kg silk yarn/day
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Table 12.6 Modern reeling per 1 kg silk yarn
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Two types of reeling are found in the study areas. In Bholahat, some farmers are still follow the traditionally reeling, but in the other two places, there are no traditional as well as modern reelers. Farmers usually use Kathghai, traditional wooden equipment, for reeling. Farmers are getting about 25% of profits through this method, but in modern reeling, it is higher (40.90%), as shown in the above table. The high quality of silk yarn produced through modern reeling, results in a higher price than traditionally produced silk. In the sericulture value chain, reeling is a more profitable stage than mulberry cultivation and silkworm rearing. Though mulberry cultivation is less profitable, it is inevitable in the sericulture value chain. However, it is unfortunate that farmers are abundant with cocoons rearing due to insufficient feed for silkworm rearing, causing an extreme decrease of the cocoons which are the raw materials of silk yarn.

  1. B.

    Weaving

See Tables 12.7 and 12.8.

Table 12.7 Weaving (modern)
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Table 12.8 Designing (Sharee)
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Weaving and designing are closely related to sericulture finish products. Nowadays, weaving is found only in the BISIC area of Rajshahi City. However, we found a few traditional weavers in Bholahat of Chapainawabganj district, which was once the epicenter of sericulture. Recently, these weavers are producing only silk Thaan (an entire sheet of woven fabric) without dying and designing, and this Thaan sells into the modern weaving industries at Rajshahi and Dhaka for further dying and designing into a finished product. Modern weaving industries in Rajshahi mainly use imported silk yarn due to an insufficient supply of local yarn; imported silk yarn is more cost-effective than local yarn due to government tax policy. In the case of dying and designing, it is more profitable than other stages of the sericulture value chain. Firstly, there are no risk factors in dying and designing. There are a few dying and designing industries in Rajshahi (only two are running in full swing). It creates a monopoly market for the traditional and modern silk Thaan. On the one hand, limited yarn and weaving industries create a monopoly market. In addition, the government yarn and weaving industry has been closed since 2002. Consequently, it pushes farmers to abandon silkworm rearing.

3.6 SWOT Analysis

  1. A.

    Strength

  2. ●

    BSDB and BSRTI head offices are located in Rajshahi;

  3. ●

    There is sufficient infrastructure such as office space, research and training institute, and sericulture nursery in different Upazila levels in Bangladesh under BSDB;

  4. ●

    Available skilled human resources of BSDB and BSRTI;

  5. ●

    Household traditions of sericulture in this region;

  6. ●

    Favorable environment;

  7. ●

    Traditional marketing chain;

  8. ●

    Huge amount of unemployed women in this region.

  9. B.

    Weaknesses

  10. ●

    Inappropriate state policy (including import, tax, etc.) of sericulture development;

  11. ●

    Financial constraints;

  12. ●

    Unfavorable administrative systems;

  13. ●

    Inadequate HYV and local weather suitability species of silkworm and mulberry;

  14. ●

    Lack of modern technologies in research as well as at the cultivation level;

  15. ●

    Lack of equilibrium between backward and forward industries and production systems;

  16. ●

    Insufficient private entrepreneurship in sericulture.

  17. C.

    Opportunities

  18. ●

    Generation of home employment opportunities for women in rural households that will empower them as income generators;

  19. ●

    Opportunity for additional income, especially for rural poor;

  20. ●

    Diversification of sericulture production by introduction of modern technologies;

  21. ●

    Restoring the moribund heritage of Rajshahi silk;

  22. ●

    Can be fulfilled the silk yarn of the country evading import dependency;

  23. ●

    Increase export and earning foreign currencies;

  24. ●

    Introducing controlled silkworm rearing systems.

  25. D.

    Threats

  26. ●

    Government policy and planning;

  27. ●

    Unfavorable weather for existing species for increasing production cycles;

  28. ●

    Shifting trends of cultivating mango rather than mulberry.

4 Conclusion

The sericulture industry is an important sector for employing rural people. This study has made a SWOT analysis of the value chain of the sericulture industry in Bangladesh. It has found a big gap in the value chain of silk production. Leaves produced from mulberry cultivation need more support in the value chain. Mulberry cultivation needs long-term investment to make a profit. However, the current demand for mulberry leaves has decreased results in shifting to other crops from mulberry to get more profits. Besides, the silkworm is reared only four times a year due to unfavorable environment. Cocoon is the only output produced by the farmers but they need to get the proper price. As a result, cocoon production is gradually decreasing and it is in a vulnerable situation. The sericulture industry in Bangladesh is household-based and medium or large-scale enterprises have yet to be developed. Thus, crucial action is required to develop the silk industry in an underdeveloped country like Bangladesh. However, there is potential for environment-friendly sericulture production in Bangladesh. Thus, equilibrium development of backward and forward linkages is needed evading import dependency.