What you are doing
masuta All the producers of MASUTA are drawn from PRADAN promoted SHGs. Initially PRADAN professionals start spotting poorer pockets, poorer habitations and ultimately focusing on the poorest families in that habitation. Before intervention, the average family income of such family was Rs 20,000 to 50,000 per year, mostly marginal farmer, many of them are landless. Worked as daily wage worker in other’s agricultural field, brick kiln, stone crusher, earthworks (government sponsored programmes), and construction works. Many of them collected firewood from faraway forests and sold it in the local market, collected tendu leaf, sal leaf and other non-timber forest produces and sold. Wife-beating, witchcraft etc were still there. As a consequence many of them had lost self-confidence and forgot to do anything of their own.

The peculiar nature of tasar silk is that the commercial type of tasar cocoons is available only once in a year during the months of August and October to December. There is no organized marketing channel for its procurement thus needs to purchase from the individual rearer’s rearing field. Some State Governments have tried to organize rearers around Co-operatives but the control vested on the State officials as a result the deal between such officials and the local traders are not transparent.

masuta The business operation in MASUTA starts with the bulk procurement of raw materials i.e. tasar cocoons. The member trusts assess their annual requirements of cocoons well ahead of its harvest and inform MASUTA. The member trusts and MASUTA take credit every year from all possible sources and pool such money together in MASUTA’s account. Cocoons are purchased by MASUTA in bulk for the whole year, it is dried, stored and kept properly at MASUTA’s Godowns.

In MASUTA, a separate accounting branch has been created named MASUTA-MF for on-lending microfinance to the member MBTs. This MASUTA-MF takes loan from banks like HDFC bank, AXIS Bank, DCB etc and on-lend to the member trusts. The member trusts takes loan from MASUTA-MF and gives credit to MASUTA’s business branch with proper agreement at the same terms and conditions. MASUTA’s business branch takes responsibility of repayment of principle and interests on time against such loan.

The trusts, as and when required (normally one month’s cocoon at a time), place indent for cocoons to MASUTA. MASUTA supplies cocoons to the trusts. In MASUTA’s books, the price of cocoons is advanced to the trusts’ account. The sale price of cocoons is determined by MASUTA’s board based on the silk content of the cocoon not at cost of purchase.

MASUTA keeps central stock of spare parts, certain chemicals etc required by the trusts. The trusts purchase such materials and chemicals from MASUTA on credit/cash.

In every working day, in each MBT the CEO (centre manager) treats (chemically) cocoons together for all its members and distributes the cocoons to the individual member in the morning; the value of the cocoons are debited as advance to the respective members. The member producers convert it on the same day and keep yarns with them.

masuta On a prefixed date (grading day, normally twice a month) the yarn graders (a set of skilled MASUTA’s employee, who have knowledge and experience of production and market exposure on qualities) grades individual producers yarn in front her and give feedback on the qualities based on market requirements. MASUTA lifts the yarn in perceived market price (lifting price) from the trusts and pool together in the company’s office. Just after the grading, the CEO, with the help of the computer Munshi (a set of trained local youth provides computer services on payment) enter the entire transactions into specially developed computer software. The software generates all sorts of MIS and accounts related data for the MBTs and its members. MASUTA pays the price of the yarns after adjusting all advances.

After the lifting of yarns, MASUTA aggregates, grades, sorts, based on the colour and quality, store and maintain a stock of all varieties of yarns. In a way it can offer any quantity of yarn of any grades to the yarn buyers. MASUTA has two avenues to market its yarns. Firstly, it sells yarns directly to the market and secondly, it sells part of such yarns to it’s Joint venture Company (Eco-Tasar Silk Private Limited) who converts into fabrics and sells the fabrics.