Budget 2026: Transportation subsidy for North Karnataka sericulture farmers doubled to ₹20 per kg

The transportation subsidy provided to sericulture farmers in north Karnataka districts for selling their cocoons at government markets has been doubled from the existing ₹10 to ₹20 per kg.

Chief Minister Siddaramaiah announced the measure while presenting the State Budget for 2026–27 in the Legislative Assembly in Bengaluru on March 6.

A large number of sericulture farmers from the Kalyana Karnataka (formerly Hyderabad-Karnataka) and Kittur Karnataka (formerly Bombay-Karnataka) regions transport their cocoons to major government markets in southern Karnataka, notably the one in Ramanagara.

Although government cocoon markets exist in Jewargi and Mudhol in north Karnataka, many farmers prefer selling their produce in larger markets, like in Ramanagara, where the presence of a large number of reelers ensures competitive prices.

Farmers from Bidar and Kalaburagi districts often transport their cocoons over long distances to Ramanagara for better returns.

Retired Deputy Director of Sericulture N.Y. Chigari said the increase in transportation subsidy is aimed at encouraging sericulture in north Karnataka and helping farmers secure better prices for their produce.

With the Centre permitting the sale of cocoons in the open market, the enhanced transport subsidy is aimed at encouraging farmers to sell their produce in government markets rather than locally, where they could be vulnerable to exploitation by middlemen. Selling cocoons in government markets also ensures transparency in transactions. 

Mr. Siddaramaiah noted that Karnataka is the first and only State in India to implement ‘completely cashless online auction, e-payment and e-disbursement platforms across 15 major cocoon markets’.

Chawki rearing centres

The Chief Minister announced that Chawki Rearing Centres (CRCs) — specialised facilities that nurture young silkworms — will be established in selected farms of the Sericulture Department in collaboration with agri-entrepreneurs and Farmer Producer Organisations (FPOs).

Setting up CRCs in partnership with FPOs is expected to break the monopoly of private CRCs, and make young silkworms available to farmers at affordable prices.

The initiative will also help put several government sericulture farms to productive use while ensuring the local availability of young silkworms for farmers.

Silk farms

Mr. Siddaramaiah said Silk Parks will be established at Ramanagara, Sidlaghatta, Haveri, Tandavapura (in Mysuru district) and Kalaburagi.

These parks will showcase various aspects of sericulture, including its history, background and machinery, and are intended to promote the sector.

He highlighted that Karnataka is regarded as the silk capital of India, accounting for about 46% of India’s silk production.

“In the last three years, a subsidy of ₹531 crore has been provided to two lakh beneficiaries for activities such as construction of reeling sheds and installation of drip irrigation systems required for the development of sericulture in the State,” he said.