The study was conducted in the traditional silk producing district of Tamil Nadu. The traditional silk producing district like Dharmapuri and Krishnagiri was selected. Using random sampling techniques identified in the charka and cottage reelers. Totally 60 samples are selected. From the primary data observed that charka reelers per day reeling capacity of 15 kg/ machine. The total expenditure of charka reelers Rs. 6685 as on 15 kg of cocoon and one kg of expenditure observed as Rs. 2971. Raw silk reeled per basin per day in charka 2.25 kg and total returns work out for Rs.7775. The net return realized for Rs.1110, respectively. Next, cottage reelers per day reeling capacity of machine 60 kg of cocoon. Total production cost of reeling cocoon of Rs. 25704.30. Raw silk reeled per basin five per day in cottage 8.67 kg. The total return calculated for Rs. 29385.50 and net return realized for Rs.3681.TheB.C ratio worked out to be least in charka and high in cottage reeling machine. So as renditta was high charka and low cottage basin was observed in the study. The major problem faced by reelers irrespective of reeling system was problems related to working capital like lack of institutional credit especially short-term credit availability. Labour was next factor which includes shortage of skilled labour especially women labour. The improper weighment of cocoons and non-availability of quality cocoons regularly were problems at market level. The other problems like reelers were lack of remunerative price for domestic silk, unaware of government policies on imports and import tariffs on silk from China.

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