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A study has been undertaken to work out the costs involved and returns generated in mulberry and cocoon production among the farmers of rainfed and irrigated conditions in Chamarajanagar district of Karnataka state, India. In mulberry production, costs (fixed and variable) involved in the production of mulberry was lower with rainfed farmers over irrigated farmers with lesser among small farmers over medium and big farmers. The unit cost of mulberry production was lower under the irrigated condition as compared to the rainfed condition being lower among big farmers over medium and small farmers. However, gross returns, net returns and B:C ratio were more under irrigated condition over rainfed condition with higher being among big farmers over medium and small farmers. In cocoon production, the total cost of cocoon production was lower with rainfed farmers as compared to irrigated farmers with lesser among small farmers category over medium and big farmers category. The unit cost of cocoon production was lower under irrigated farmers over rainfed farmers with least being among medium farmers over big and small farmers. Grass returns, net returns and B:C ratio were more under the irrigated condition when compared to rainfed condition with better returns among big farmers over medium and small farmers.