An Application of Social Accounting Matrix to Analyse the Growth Linkages of Sericulture in a Village Economy

Abstract

Sericulture is an important avenue in rural areas. Karnataka stands second in position in the mulberry silk production of the country during 2020-21. The study describes constructing a Social Accounting Matrix (SAM) framework for Naguvanahalli village, Mandya district, Karnataka state, to understand the effect of investment in sericulture on the income distribution of the selected village economy. Sericulture is practised in the Naguvanahalli village through the State Department of Sericulture, Karnataka, and Central Silk Board, Bangalore. Purposive sampling was adopted for data collection from 30 households and 42 economic agents during 2020-21. The SAM framework provides inter-sectoral linkages across the sectors within the village. With `10 lakhs further investment in sericulture as a simulation, there was an impact of 1.82 per cent rise in the aggregate volume of transactions or `14,26,100, implying 4754 labour days or full-time employment to 14 households for 320 employment days per annum per household. The indirect impact on labour employment was 71.17 per cent of the effect of 1.82 per cent. The promotion of sericulture succeeded in generating higher employment and income multipliers, but it still requires strengthened awareness creation in the village.