In the second half of 2025, dried cocoon prices showed relative stability, supported by ongoing government measures to protect the handloom and silk weaving sectors. The continuation of nil GST on raw silk and related weaving materials helped maintain a steady demand from weavers and silk manufacturers, preventing sharp price fluctuations. Despite global market pressures and input cost variations, the focus on sustaining artisan livelihoods and the competitiveness of locally produced silk products kept prices from dropping significantly.
The traditional silk producers, particularly smaller and rural units, maintained moderate procurement levels, which contributed to consistent price support. Overall, the market for dried cocoons in H2’25 did not experience extreme volatility, reflecting a balance between supply, cost pressures, and demand from silk mills.
Analyst Insight
According to Procurement Resource, the Dried Cocoon market appears cautiously positive. Continued policy support and stable demand from domestic silk producers are likely to maintain steady pricing into the near future.
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In the first half of 2025, dried cocoon prices showed mixed trends across different regions due to varying climatic conditions and regional supply-demand dynamics. In Jammu and Kashmir, despite a slight dip in overall cocoon production, government interventions such as higher minimum support prices (MSP), infrastructure upgrades, and district-level markets helped maintain relatively stable and favorable prices for rearers. Farmers benefited from competitive local market rates, with strong participation from buyers across the Union Territory and outside.
In contrast, Tamil Nadu's Dharmapuri region experienced price volatility. Foggy weather reduced cocoon arrivals and impacted quality, temporarily disrupting supply chains. While this scarcity pushed up auction prices, producers expressed concern over the inferior quality of cocoons due to poor feeding conditions and moisture issues, leading to only a short-term price boost.
Meanwhile, in Punjab, dried cocoon prices improved steadily thanks to rising demand and increased procurement, particularly in Pathankot and Hoshiarpur. Improved government support, better seed distribution, and expanding cultivation areas contributed to growing confidence among farmers, especially women, in sericulture as a viable livelihood.
This refers to the cocoons that have been dried to protect cocoon quality and preserve its condition to facilitate the process of reeling. Dried Cocoons can withstand the damage caused by the long duration of storage compared to fresh cocoons. As the pupa's continued metamorphosis could lead to the piercing of shell by a newly emergent moth, the method of drying facilitates the conversion of cocoons to raw silk with ease. China is the leading producer of cocoons and raw silk globally.
Silk, Textile industry
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In order to produce Dried Cocoons, fresh cocoons are placed in drying machine, where they are heated to remove the water in the cocoon shell. The water quickly evaporates, and heat kills pupa, after which gradual cocoon drying continues till the desired amount of water has evaporated. Various methods of drying include sun drying, steam stifling, and hot air-drying.
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