Every silk industry has a value added chain from silk worm eggs to fabrics or finished garments. In this chain, every activity has its own importance and a specialized knowledge is required to perform each and every activity. Different activities in the supply chain are widely spread all over the state. The activities performed in the areas formed clusters such as clusters of Cocoons production, Silk Reeling, Spinning, Dying and Weaving. All the activities are interdependent with each other. But the linkage among all the players of the chain is established by some intermediaries or traders. First of all we are going to discuss about the Silk Worm Seed Sector:
Silk Worm Silk Sector: As stated above, the production of silk worm seed needs specialized knowledge since it is a complicated activity. The Central Silk Board has set up the Muga Silk Worm Seed Organization (MSSO) in 1983 in order to produce DFLs. Since then the organization has been trying to multiply Muga seed. From the basic seed the multiplication process starts and finally commercial seeds are produced. But from the field study it has been found that the rearers themselves produce a large quantity of seeds for their use. Though Government’s efforts to produce P2 DFL have become successful to some extent, the amount of seeds produced by Government institutes is not at all sufficient to meet the demand of the rearers. So the State Government (Assam Government) has been supporting the private graineurs to produce Muga seed since 2001. But this effort of the Government has not been able to show expected results. The rearers purchase seeds from the Government as well as private seed suppliers on credit. However, if the purchase is made from the grainages operated by the CSB, cash transaction has to be done. It is also observed that a good number of middlemen supply seed to the rearers for contract rearing. In this case also seed