Abstract
Education per se does not necessarily enter into the production process to enhance the allocative and technical efficiency, but it is the application of education that enhances the process and lifts the production surface. This paper attempts to provide an empirical evidence obtained from the operation of Sericulture Quality Clubs (SQCs). In one village (Kuruburu) SQCs office bearers are literate the progress is too good in terms of production and productivity and it is opposite in the other village (Nayakarahalli) where the SQC office bearers do not have even the basic education. The comparative study reveals that village with basic education shows more dynamism in growth, despite the fact that the two villages have similar structural characteristics.