Annals of Business, Finance and Management

Commentary - (2021) Volume 9, Issue 2

The effects of rural income project on silk exports and livelihood of smallholder producers
Michel Chen*
Department of Economic Analysis, University of Valencia, Valencia, Spain
*Correspondence: Michel Chen, Department of Economic Analysis, University of Valencia, Valencia, Spain,

About the Study

Sericulture has been a chance for increasing raw materials for the textile industry. Therefore, it has provided a replacement source of income, reduced unemployment and presumably to enhance the livelihood status of poor sericulture smallholder producers by increasing their income earnings. The high yield in silk production has been highly enormous to the favourable climate for mulberry cultivation; sericulture has been seen as a possible tool to scale back poverty and also to get foreign exchanges from exportation.

The agricultural sector through its employment and income generation activities within the economy is thus a serious issue for tackling the rural poverty and also contribute to a rise in livelihood situation which affects the smallholder producers’ farmers. However, the world faces typical issues such as poor rainfall, famine, floods and therefore the limited amount of land that's suitable for agriculture, alongside pests and diseases, which still pose risks to food security. General constraints still affecting the agricultural sector remains however linked to the low access to modern inputs, modern technologies, finance and other support services, land fragmentation deriving from a 2.5% demographic growth and lack of economic infrastructure. Thanks to the result of low endowment in production factors, like land, water and capital assets, most of the smallholder farmers produce low quantities of products that are equally of poor value, which contributes to their products being abandoned by output markets.

Livelihood is sustainable when it can maintain or improve its capabilities and assets without depleting the available natural resources, cope with and recover from stresses and shocks, and maintain or improve its capabilities and assets in the present and future.

Livelihood diversification is that the process of accomplishing activities by the agricultural household to outlive and improve their standard of living Livelihood diversification strategies are often classified as on-farm, nonfarm and off-farm activities. The main on-farm livelihood activities are crop production and livestock rearing.

Livelihood strategies classified into six like farming, breeding, fishery, trading, employment, and craftsman. Non-farm livelihood activities include petty trade, handicraft, remittance, mining, carpentry, hiring of oxen and land. Improved livelihood possibilities, reduced poverty, increased employability, and promoted sustainable development are all dependent on livelihood activities and skills.

Livelihood diversification activities are cognizant to extend households’ income accumulation and to take care of livelihoods confronting a rise in climatic and economic risks. Over the years, research has repeatedly emphasised the connection between global climate change and smallholder farmers' livelihood activities as divergent and complementary adaptation techniques.

Silk is that the most elegant textile within the world with unparalleled magnificence, natural sheen, and essential affinity for dyes, high absorbance, lightweight, chump and high durability and referred to as the "Queen of Textiles". In silkworm rearing, women are engaged in leaf-cutting, feeding, bed cleaning, worm spacing, mounting, harvesting, and disinfections. More than 8 million families, 80 percent of them are from poor rural communities, rely on silk production for a living. Sericulture as an agro-based business has helped them increase their income, assets, and reduce their poverty levels throughout time.

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