Unstable prices are posing a threat to sericulture farmers in Coimbatore. Since June, prices have been fluctuating. They have gone as low as Rs 170 per kg. But farmers hope for a minimum Rs 300 per kg. Cocoon prices in the country fell by more than 60 per cent once the import duty on raw silk from China was reduced from 15 per cent to 10 per cent. This has allowed weavers and silk dealers to buy raw silk from China, which is considered to be of superior quality, at almost the same price as that of domestic raw silk.

With prices hovering at less than Rs 250 per kg from mid-July, sericulture farmers are in despair. Regular silk dealers who purchase cocoons on a daily basis from the sericulture department say that the Ramzan season also led to a fall in prices. Most silk and yarn wholesalers are Muslims, and they don't work during Ramzan. So weavers get very few orders. The peak season for cocoons is between December and February and again between June and August.

Fully formed and recently removed cocoons can't be left open for more than three days or refrigerated for more than 20 days, because they start rotting.