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Khadi-Need to Give Modified Introduction

- Bhavana Gokhale

Mumbai: October 4, 2010


“Poor of India today have lost faith in God, more so than the middle classes or the rich. For a person suffering from the pangs of hunger, and desiring nothing but to fill his belly. Through him, he may even see God. What they need is some kind of occupation, and the occupation that will give employment to millions can only be hand spinning. The Spinning– wheel enables us to identify ourselves with cores. It stands for all inclusiveness. Revival of the cottage industry, the present situation is needed to remove growing poverty. When once we have revived the one industry, all the other industries will follow… I would make the wheel the centre round which all other activities will revolve.”

- Mahatma Gandhi.


There is no need to discuss on how the Khadi Industry developed itself in last three five years plan  and how  the most ancient so called business for poorer is now on the glorious path of development. Khadi and Village Industry, working under the Ministry of Micro, Small & Medium enterprises is taking some constructive steps.

 Role of Khadi in Rural Development:-

Over the years, the production of khadi cloth has been on the decline. Hence employment in this area is also falling.

The main reasons for the poor performance in khadi production were (A) uncertainty over the continuation of the rebate policy for khadi, which upset the production schedule and output of khadi producers; (B) high stock of unsold khadi and  mismatch in khadi production; (C) the project finance approach adopted in place of existing pattern approach for village industries units took the rural entrepreneurs some time to get used to; and (D) there was a shortfall in availing funds from banks and budgetary resources. However, production and employment in village industries have grown from Rs. 3,895 crore in 1997-98 to Rs. 7,140.52 crore in 2001-02 and new job creation has been reported.

In a major initiative during the Ninth Plan, the marketing of a select range of village industry products was launched under the brand name ‘Sarvodaya’, with a focus on quality. The National Institute of Design (NID), Ahmedabad, has been entrusted with a project to introduce new and trendy designs in khadi. New designs developed by the National Institute of Fashion Technology (NIFT), New Delhi, would be taken up for production by khadi industries. These initiatives are expected to improve the demand for khadi and to boost production and employment. Apart from announcing the khadi package in line with the recommendations of the Pant Committee, the Government would emphasise on the concept of ‘No Loss’ against the earlier concept of ‘No Profit’ in order to strengthen the khadi and village industries and to make the sector viable and vibrant.

 Marketing Development Assistant:-

The Government of India introduced a more flexible scheme, namely, Market Development Assistance Scheme on production of khadi in place of existing scheme of Rebate on sales with effect from 01.04.2010 for implementation by KVIC during 2010-111 and 2011-12. The scheme envisages financial assistance @20% of production value on khadi and polyvastra which will be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45. Marketing Development Assistant Scheme on 1st April 2010 with the provision that working of the scheme would be closely monitored .The scheme with due weight on Marketing Technology, Wages of artisans, Product Development and balanced promotional for khadi.

For 2010-11, Ministry of MSME has provided margin money target of Rs.836.00 crores with project target of 59714/- and employment of 5.9 lakhs persons.  There are 7050 sales outlets marketing khadi and Village Industries products in the country. The Khadi and Village Industries reform package aims at improving the technology used in khadi production, skill development through quality training facilities, promotion of” khadi mark” to position khadi as guaranteed hand spun and hand woven cloth.  The new emphasis is clearly on better marketing of the products.

Khadi Doby Loom:-

It is a design development on plain fabric and is used to give the identity of the Producing Institutions, which will bring in transparency and traceability of the producing Institutions and can be very useful to prevent spurious khadi & introduction of khadi mark proposed under ADB assistance. This was launched by Union Minister MSME, Shri Dinsha Patel on 17th June2010 at Surender Nagar Gujrat.

 Solar Charkha:-

KVIC is researching to develop Solar Charkha. Gandhi Gram Urja Vikas Sanstha, an NGO, Amravati, Maharashtra is working on this project The Solar Charakha has solar battery system, saved 7-8hrs. Electricity per day. It is attached with Charakha, and can used while doing any work .A worker who earned Rs. 60/- per day now earning 150/-per day. It is help to flourish the traditional spinning into an Industry without involving human drudgery.

 Assistance from Asian Development Bank:-

Recently, The Union Minister for Small and Medium Enterprises Mr. Dinsha Patel said that, all set for major reforms, the Asian Development Bank has sanctioned an amount of US $ 150 million ( Rs. 675 crores) for modernization and development of the Khadi sector which provides employment to more than one crore people and generates sales of Rs. 24,116 crores.  The funds will be utilized for modernization of approximately 2000 khadi units across the country.

First installment of Rs.96crore (equivalent to 20$ million) have been received at KVIC on 24 February 2010, the action plan was already implemented by MSME for the first allotted installment.

 Skill development through Quality Training Facilities:-

The intervention shall over implementation of reform program in 300 khadi institutions that have been identified by KVIC.

Enabling participation in the management of khadi institution both existing and new khadi ventures providing frame work for artisan empowerment.

The intervention shall cover implementation of reform program in 300 khadi institutions that have been identified by

Raw material procurement and Production:-

KVIC will develop khadi Mark for positioning khadi as a guaranteed hand spun and hand woven cloth ensuring specified base earning of artisans 50 new khadi institutions will be assisted and those are to be organized and managed either on Entrepreneurship Model on Producer Company Model.

 Ready Rap Unit:-

To enhance productivity, improve quality of Khadi and weaving efficiency supply of ready warp to weavers is essential. KVIC in collaboration with Bombay Textile Research Association (BTRA) has developed a standard yarn preparatory process suitable for khadi waving units. During 2009-10, KVIC announced the scheme for Ready Wrap units under the preview of Rural Industries Service Center (RISC).

Brand and Promotion: -

Three registered brands are being used by the Khadi and Village Industries Commission (KVIC), exclusively for products under the purview of KVI sector: (a) Khadi Brand: Mainly for premium and export oriented products, (b) Sarvodaya Brand: Products for consumption of middle and lower income group & (c) Deshi Aahar: For organic food items.

KVIC takes part in international trade fairs and exhibitions where, branded products, including khadi items, are widely exhibited.

 Employment Generation Sector:-

Khadi and Village Industries Commission (KVIC) is a statutory body created by an Act of Parliament and established in April 1957, it took over the work of the former All India Khadi and Village Industries Board. One of the largest rural employment generation agencies in the country, KVIC is providing employment to 109 Lakh person with the production of Rs. 18366.30 crores and sales of Rs.24116.10 crores. The total number of workers in the khadi and village Industries sector as per data compiled by KVIC, is about 1.08 crore including an estimated 9.81 lakh artisans alone in the Khadi sub-sector.

 New Strategy for growth in sale:-

KVIC and other corporations are engage to emphasis Khadi production to the common people. Many attractive schemes are introduced to motivate general public all over the country. KVIC Mumbai was provided the much needed marketing support to the rural artisans of our Country and enables to provide sustainable development. KVIC recently started air conditioned khadi show room, Opp. Shoppers Stop, Andheri(W) Mumbai There will be Six sales counters with a range of khadi silk Sarees, Health Food, Handicrafts, Readymade garments for men and women, Herbal products, Handmade paper items and leather accessories. 

Introduce Kahadi in Common Wealth Games :-

As promotion strategy for khadi, the KVIC is decided to attract international attention therefore a stall of KVIC will be set up at the Games Village which will sell handicrafts and khadi clothing. The purely Indian hand-woven cotton fabric; Khadi, is all set to draw international attention. Plans are afoot to set up a stall to sell khadi and handicrafts at the up-coming Commonwealth Games beginning this year in Delhi.

The stall will begin operating from September 15, although the games are to be held between October 3 and 14. The brand ambassador for promoting khadi apparels is none other than, Mahatma Gandhi.