Sericulture is a rural agro-based industry. Sericulture included various activities as like mulberry cultivation, silkworm rearing and post silk cocoon activities. Random sampling design was adopted in the selection of district, tehsils and farmers. Kolhapur district was selected on the basis of cocoon production. Three tehsils were selected from Kolhapur district according to highest mulberry area under cultivation viz.
, Hatkanagale, Karveer and Gadhinglaj. The primary data was taken from 90 silk cocoon producers from the study area.
Thus, the total sample consisted of 30 farmers each of Group I, Group II and Group III size groups, the per ha cost of cocoon production was worked out to Rs. 311063.93. The share of feed (mulberry leaves) in total cost was found to be the highest (48.71 per cent) followed by human labour (14.73 per cent). The per ha gross returns and net returns were Rs. 480022.96 and Rs. 168959.03, respectively. The financial feasibility of sericulture showed that the investment made in sericulture was financially viable with pay back period 1.81 years, Benefit-Cost Ratio 1.54, NPV Rs. 239842.59 and IRR 30.42 per cent. As sericulture is a profitable subsidiary occupation, the efforts should be made by state agriculture department to initiate activity of sericulture on large scale to maximize farmers’ income.