Lok Sabha Question No. 626 (UNSTARRED), answered on 2017-02-06
Subject: Production and Export of Khadi
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: MEKAPATI RAJAMOHAN REDDY, KAMLA DEVI PATLE

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 626 TO BE ANSWERED ON 06.02.2017

## PRODUCTION AND EXPORT OF KHADI

## 626. SHRI M. RAJA MOHAN REDDY:

SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the details of khadi products exported and foreign exchange earned therefrom during each of the last three years and the current year, country-wise;
- (b) whether  the  Government  proposes  to  increase  the  production,  sale  and  export  of  khadi products, if so, the steps taken by the Government in this regard;
- (c) whether the Government has formulated any scheme for setting up khadi industries in the rural areas of the country, if so, the details thereof, State/UT-wise; and
- (d) whether the Government proposes to provide fresh financial subsidy to khadi industries in the country, if so, the details thereof, State/UT-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): The product wise and country wise details of Khadi products exported and foreign exchange earned during 2013-14, 2014-15 & 2015-16   is given at Annexure-I to III.
- (b): Government of India has taken number of steps to increase the production, sale and export of khadi products, the details of which are as under:

##  To enhance the production of Khadi:-

62 new institutions have been enlisted by Khadi and Village Industries Commission (KVIC) during the year.  The khadi institutions are also being given improved charkhas & looms under KRDP and SFURTI  programme.  Khadi  institutions  are  also  extended  Market  Development  Assistance  for infrastructure  and    marketing  support.    Interest  Subsidy  is  also  extended  to  khadi  institutions  on working capital  loan availed by them.

Liberalized approach has been adopted to fix the targets of production & sales to Khadi institutions.

-  To  increase  the  sales  &  export  of  khadi  products,  the  following  initiatives  has  been taken:

Institutions  are  motivated  to  participate  in  the  domestic  &  international  exhibitions  and  the institutions are given financial support in the case of international exhibitions.

Domestic  exhibitions  of  different  levels  namely  district  level,  state  level  &  national  level  are organized to promote the sales of khadi products.

In order to ensure the quality and genuineness of khadi,'Khadi mark' Regulation have been issued and all Khadi Institutions have been asked to use Khadi Mark labels.

Financial  assistance  is  also  being  provided  for  the  renovation/modernization  of  Sales Outlets of institutions as well as Departmental Sales Outlets (DSOs) and State Khadi Village and Industries Boards (KVIBs).

In order to expand the market network and make Khadi easily available to its patrons, KVIC has taken the initiative  to  open  premier Khadi Showrooms known as 'Khadi  Lounge'and KVIC Franchise Outlets to make available premier Khadi products including designer products.

Efforts  have  also  been  made  to  make  available  Khadi  products  on-line  by  tying  up  with    M/s. Paytm, which has been launched through Khadi Gramodyog Bhavan, New Delhi.

KVIC has been catering to the need of Central Government Departments such as Railways, Defence, Health & Family Welfare Department, Paramilitary Forces, State Governments,  etc. for bulk supply under Rate Contract(RC) agreement with Directorate General of Supplies & Disposals (DGS&D) and supply of  Non Rate Contract (Non-RC) items like Polyvastra bed sheets and pillow covers to Railways etc.

KVIC has signed a KHADI MARK REGISTRATION AGREEMENT with Raymond and JK Group for promoting Khadi fabrics and ready-mades  through  Raymond dealers / showrooms / outlets in India and abroad.  Raymond will make available Khadi products in their domestic as well as international outlets.  Agreements with other corporates are also under process.

KVIC has applied to register 'Khadi' as a word mark and 'Khadi India' as a Trade mark in 27 classes for various products among 45 classes listed out in the IPR Act at National Level and has also filed an online application for registering 'Khadi' as a trade mark under International Bureau in European Union and other countries under 16 different classes.

Ministry  of  Commerce  &  Industry  had  given  the  status  of  deemed  EPC  to  KVIC  for supporting  the  introduction  of    KVI  products  in  international  market.  1064  Khadi  and  Village Industries  Institutions  and  REGP/PMEGP  units  have  taken  its  membership  to  enter  the  field  of export.  However,  due  to  inadequate  activities  and  mobilization  for  exports  and  commodities directly by the institutions, the EPC status has become defunct.

(c): There is no scheme exclusively in the Ministry for setting up khadi industries in rural areas, however,  suitable  provision  has  been  made  in  the  Prime  Minister  Employment  Generation Programme(PMEGP)  for  assistance  to  set  up  micro  enterprises  for  production  of  khadi  by individuals.

(d) : State-wise  details  of  financial  subsidy  provided  to  Khadi  institutions  under  the  scheme MDA and ISEC in the country is given in Annexure-IV.

*****

## Annexure-I

Statement showing product-wise and country-wise export of KVI Product during 2013-14

| S.No.   | Product                             |   Export (Rs. in lakhs) | Countries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|-------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1       | Handmade paper& products            |                 3462.89 | UK, USA, Germany, South Africa, Canada, Japan, Columbia, Srilanka and France                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 2       | Papad                               |                 4618.52 | USA, U.K., London, France, Germany, Italy, UAE Australia, Japan, Canada, South Africa, other countries.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3       | Khadi (woolen Silk& Muslin)         |                    2.61 | Italy, Australia, Poland                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4       | Brass &Metal                        |                   17.33 | Malaysia, Singapore and UK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 5       | Honey                               |                 2492.99 | Japan, Muscat, Dubaï, Jordan, Seychelles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 6       | Wheat Grass                         |                   58.18 | Jordan, Cambodia UAE, Russia, France, Malaysia, Sweden, Burkina Faso, Sudan, Netherland, Indonesia, USA, Chile, South Africa, Nepal, Nigeria, Ireland, Norway, Seychelles, Botswana, Slovenia, Kuwait, Cameroon, Spain, Hong Kong, Kenya, Japan, Indonesia, UK, Trinidad, Ghana, Mauritius, Central Africa, Thailand, Bahrain, Bosnia, Slovakia, Romania, Germany, Lebanon, Bulgaria, Singapore, Pakistan, Cot D'ivoire, Philippines, Canada, Oman, Mongolia, Tanzania, Israel, Turkey, Vietnam, Curacao, Switzerland, Sierra Leone, Sri Lanka |
| 7       | Ayurvedic Medicine/ Herbal Products |                   30.57 | Kuwait, USA , UK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8       | Herbal Soap, Shampoo &Lotion/Dyes   |                   70.33 | Central America, Panama Country, Russia, US. Western Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 9       | food items                          |                   99.98 | UAE, Oman, Sri lanka, Liberia, Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10      | HDPE/PP/woven Bed                   |                  456    | USA, Sudan, Spain, Chilly, Italy, Nigeria, Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 11      | Textile based Handicraft            |                    3.56 | USA, &Japan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 12      | Charkha/puni                        |                    2.12 | USA, &Japan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 13      | Jute &Banana Fibre items            |                   55.3  | London, Malaysia, Dubai, France, England, Japan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 14      | Ready Made Garments                 |                   20.15 | Kuwait, Oman, Canada, UK, Muscat and other countries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 15      | Agarbatti dhoop                     |                    0.8  | Italy, United kingdom                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 16      | Industrial machines                 |                   45.17 | Nepal. Sri Lanka and Zambia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 17      | Wood carving products               |                   20    | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 18      | Leather items                       |                    1    | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         | Total                               |                11457.5  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

## Annexure-II

## Statement showing product-wise and country-wise export of KVI Product during 2014-15

| Sr. no   | Product                               | Export (Rs. in lakhs)   | Countries                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|---------------------------------------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.       | Aromatic &Essential Oil               | 131.00                  | Gulf Countries                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.       | Brass &Metal                          | 13.13                   | Singapore, Malaysia &Sri Lanka.                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.       | Food Items                            | 207.56                  | Dubai, Uganda, South Africa, Australia, Chicago (USA) &Tanzania.                                                                                                                                                                                                                                                                                                                                                                     |
| 4.       | Handicrafts                           | 71.83                   | USA, UK, Netherland, China, Malaysia,& Italy.                                                                                                                                                                                                                                                                                                                                                                                        |
| 5.       | Handmade Paper &Products              | 4317.26                 | UK, USA, Germany, UAE, Hongkong, Australia, Europe, Brazil, Japan, Israel, Netherland, Swizerland, Bahrain, Belgium, France &Bhutan.                                                                                                                                                                                                                                                                                                 |
| 6.       | Herbal Products                       | 2151.12                 | Nepal, Poland, Russia, Cyprus, Dubai, Abu- dhabi, Norway, Ukrain, China, Kazakistan, Gotland, Newzealand, Taiwan, Lithuania, South Korea, Spain, USA, Netherland, Korea, Canada, France, Victoria, Mauritues &Hongkong.                                                                                                                                                                                                              |
| 7.       | Honey                                 | 547.68                  | Europe Countries, UAE, Japan, Suadi Arabia, Singapore &Moracco.                                                                                                                                                                                                                                                                                                                                                                      |
| 8.       | Jute &Banana Fibre Items              | 26.18                   | Germany, Kuwait, UK, France &Japan.                                                                                                                                                                                                                                                                                                                                                                                                  |
| 9.       | Khadi (Muslin, Woolen, Silk)          | 64.89                   | Italy, Gapan, Netherland, Israel, France                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.      | Papad                                 | 4574.81                 | USA, Erpian Countris Gulf coutries, Australia, Japan, Canada, South Africa, Netherland, Singapore, Jakarta, Manila, Malasia, Israel, Taiwan, China, Nigeria, Figi, Bangkog, Philipines, Hongkong, Pakistan &Turkey.                                                                                                                                                                                                                  |
| 11.      | Readymade Garments&                   | 84.48                   | Kuwait &Ghana.                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 12.      | Soap, Shampoo &Lotion                 | 51.23                   | US, Bhutan, South Africa, UK, Japan, London & Poland.                                                                                                                                                                                                                                                                                                                                                                                |
| 13.      | Wheat Grass                           | 62.27                   | Jordon, Combodia , Sweden, Kyrgyzstan Sudan, Singapore, Seychelles, Chile, S. Africa, Usa, Netherland, Slovania, Nepal Malasia, Botswana, UK, Curacao, Burkina Faso, Canada, Fiji, Japan, Thiland, Saudi Arabaia, Aruba, Spain, Sri Lanka, Hongkong, Kuwait, Mauritius, Philipines, Slovakia, UAE, Kenya, Bahrain, Turkey, Malawi. Australia, Czech Republic, Egypt, Uganda, Bangladesh, Qatar, Indoneasia, Mynmar, Bhutan &Nigeria. |
| 14.      | Coating / Javadu Powder               | 8.50                    | Sudan                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 15.      | Hair Oil &Cosmetics                   | 66.97                   | ASSRC &Australia.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 16.      | Silver Nitrate                        | 1.00                    | Asian Countries                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 17.      | Spices                                | 25.20                   | Newzealand &Australia.                                                                                                                                                                                                                                                                                                                                                                                                               |
| 18.      | Bio-Fertilizers                       | 5.00                    | Israel                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 19.      | Wood Carving Products /Wood Furniture | 14.50                   | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 20.      | Rope Production                       | 14.00                   | London, USA& France.                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 21.      | Agarbatti Dhoop                       | 0.65                    | Brasil, Swizerland &London.                                                                                                                                                                                                                                                                                                                                                                                                          |
|          | Total                                 |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|          |                                       | 12439.26                |                                                                                                                                                                                                                                                                                                                                                                                                                                      |

Annexure-III Statement showing product-wise and country-wise export of KVI Product during 2015-16

| Sr. No.   | Product                                    |   Export (P) (Rs. in lakh) | Countries                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|--------------------------------------------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1         | Handmade paper& products                   |                    4280    | UK, USA, Germany, South Africa, Canada, Japan, Columbia,                                                                                                                                                                                                                                                                                                                                                                               |
| 2         | Food items                                 |                     210.45 | Dubai, Uganda, South Africa, Australia, Chicago (USA) &Tanzania.                                                                                                                                                                                                                                                                                                                                                                       |
| 3         | Kewara Essences, Hair care &Herbal product |                    2520    | Gulf Countries, UK1820                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4         | Khadi muslin, Silk khadi, Silk &cotton     |                      71.09 | Germany, France                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 5         | Tribal Jewellery                           |                       5.5  | Malaysia, Italy                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 6         | Papad                                      |                    6976.81 | USA, Erpian Countris Gulf countries, Australia, Japan, Canada, South Africa, Netherland, Singapore, Jakarta, Manila, Malaysia, Israel, Taiwan, China, Nigeria, Figi, Bangkok, Philippines, Hongkong, Pakistan &Turkey and other countries etc .                                                                                                                                                                                        |
| 7         | Readymade Garments &Others                 |                      75    | Kuwait &Ghana.                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 8         | Soap, Shampoo& Lotion                      |                      90    | US, Bhutan, South Africa, UK, Japan, London &Poland.                                                                                                                                                                                                                                                                                                                                                                                   |
| 9         | Wheat Grass                                |                      65.26 | Jordon, Cambodia , Sweden, Kyrgyzstan Sudan, Singapore, Seychelles, Chile, S. Africa, USA, Netherland, Slovenia, Nepal Malaysia, Botswana, UK, Curacao, Burkina Faso, Canada, Fiji, Japan, Thailand, Saudi Arabia, Aruba, Spain, Sri Lanka, Hongkong, Kuwait, Mauritius, Philippines, Slovakia, UAE, Kenya, Bahrain, Turkey, Malawi. Australia, Czech Republic, Egypt, Uganda, Bangladesh, Qatar, Indonesia, Myanmar, Bhutan &Nigeria. |
| 10        | Spices                                     |                      22.39 | New Zealand &Australia.                                                                                                                                                                                                                                                                                                                                                                                                                |
| 11        | Bio-Fertilizers                            |                       3    | Israel                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 12        | Wood Carving Products /Wood Furniture      |                      10.5  | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 13        | Rope Production                            |                       4    | London, USA &France.                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 14        | Agarbatti Dhoop                            |                       0.5  | Brazil, Switzerland &London.                                                                                                                                                                                                                                                                                                                                                                                                           |
| 15        | Handicrafts                                |                      51.5  | USA, UK, Netherland, China, Malaysia, & Italy.                                                                                                                                                                                                                                                                                                                                                                                         |
|           | Total                                      |                   14386    |                                                                                                                                                                                                                                                                                                                                                                                                                                        |

## ANNEXURE-IV

## Statement showing the state-wise  details of MDA and ISEC paid to the institution during 2016-17 (upto 30-1-2017)

| sr.No.   | KVIC Office     |    MDAPaid |   ISEC Paid |   Total Amount |
|----------|-----------------|------------|-------------|----------------|
| 1.       | Raipur          |   36747716 |      550471 |       37298187 |
| 2.       | Bhopal          |    7204271 |           0 |        7204271 |
| 3.       | Dehradun        |    2079847 |     3502439 |        5582286 |
| 4.       | Meerut          |  222562773 |    12734849 |      235297622 |
| 5.       | Gorakhpur       |   16586504 |     1665291 |       18251795 |
| 6.       | Lucknow         |   20233933 |      530174 |       20764107 |
| 7.       | Varanasi        |   26974110 |     1478013 |       28452123 |
| 8.       | Patna           |    3198826 |      623730 |        3822556 |
| 9.       | Ranchi          |    2297408 |           0 |        2297408 |
| 10.      | Kolkata         |   85600982 |     2306829 |       87907811 |
| 11.      | Bhubaneshwar    |    3900051 |           0 |        3900051 |
| 12.      | New Delhi       |    1260046 |      110255 |        1370301 |
| 13.      | Chandigarh      |    4259939 |      183798 |        4443737 |
| 14.      | Ambala          |  137193481 |     3191483 |      140384964 |
| 15.      | Jaipur          |   28286729 |           0 |       28286729 |
| 16.      | Bikaner         |   15203112 |      961588 |       16164700 |
| 17.      | Shimla          |    3973098 |     2565992 |        6539090 |
| 18.      | Guwahati        |   10200099 |       37077 |       10237176 |
| 19.      | Imphal          |     686623 |        1247 |         687870 |
| 20.      | Shillong        |     122763 |           0 |         122763 |
| 21.      | Bangalore       |  140646119 |     9200286 |      149846405 |
| 22.      | Channai         |  111206785 |    20954841 |      132161626 |
| 23.      | Madurai         |   42779754 |     5515090 |       48294844 |
| 24.      | Trivendrum      |   55103871 |           0 |       55103871 |
| 25.      | Hyderabad       |   18868426 |       66401 |       18934827 |
| 26.      | Vishakhapatanam |    6957477 |      335158 |        7292635 |
| 27.      | Telangana       |    4798508 |      829937 |        5628445 |
| 28.      | Mumbai          |    2085307 |           0 |        2085307 |
| 29.      | Nagpur          |     842756 |           0 |         842756 |
| 30.      | Ahmedabad       |   77001657 |     4193712 |       81195369 |
|          | Grand Total     | 1088862971 |    71538661 |     1160401632 |