Lok Sabha Question No. 649 (UNSTARRED), answered on 2017-02-06
Subject: Sale of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: VIJAY KUMAR HANSDAK, KAPIL MORESHWAR PATIL, MEKAPATI RAJAMOHAN REDDY, ARKA KESHARI DEO

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

## LOK SABHA UNSTARRED QUESTION NO. 649 TO BE ANSWERED ON 06.02.2017

## SALE OF KHADI PRODUCTS

649. SHRI VIJAY KUMAR HANSDAK:

SHRI KAPIL MORESHWAR PATIL:

SHRI M. RAJA MOHAN REDDY:

SHRI ARKA KESHARI DEO:

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

- (a) whether the sale of Khadi products has seen a spurt during the last three years and the current year in the country;
- (b) if so, the details thereof;
- (c) the  steps  taken/proposed  to  be  taken  by  the  Government  to  popularise  khadi  products  and increase its share in the markets in the country and the extent of success achieved therefrom; and
- (d) the steps taken/being taken by the Government to make khadi products available at affordable prices in the country

## ANSWER

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

(a)&(b): Yes Madam.  The sale of  Khadi products during the last three years and the current year showing % of increase in sale is given in the table below:

| Year                         | Khadi sales (Rs. in crore)   | %increase over previous year   |
|------------------------------|------------------------------|--------------------------------|
| 2013-14                      | 1081.04                      | 5.82%                          |
| 2014-15 (upto Dec. 2014)     | 1170.38 (792.00)             | 8.26%                          |
| 2015-16 (upto Dec. 2015)     | 1510.00 (1069.90)            | 29.02% (35.08%)                |
| 2016-17 (Upto December 2016) | 1159.36                      | 8.36%                          |

(c): Government has taken a number of steps to popularize khadi products and for increasing its share in the markets in the country.  These are:

-  KVIC has tied up with professional agencies like NIFT, NID etc, for extensive campaign of Khadi products and developed a new range of more stylish, durable, colour fast and shrink free "Khadi Denim Products' marketed as Khadi Denim Trousers, jackets and other fashion wear. These products have received excellent response in the market.
-  Designers  of  international  fame  has  been  engaged  as  "Honorary  Consultant"  to  make  khadi products more appealing and competitive in the market.
-  Efforts have been made to popularize khadi in PSUs and as a result of which bulk orders have been received from several PSUs like M/s. Air India Ltd., NTPC, and ONGC etc. for supply of Khadi uniforms to their employees.
-  Initiatives has been taken to open premier "Khadi Showrooms" known as Khadi Lounge and also through the  KVIC  Franchise  outlets  to  make available premier  Khadi  products including designer products.
-  In order to market Khadi products in e-market place tie up arrangements have been made with M/s Paytm on trial basis for an initial period of three months and on the basis of the outcome marking of khadi products will be marketed through other e-commerce companies.
-  KVIC  has  also  been  catering  to  the  need  of  Govt.  Departments  and  bulk  buyers  such  as, Defence,  Health  &  family  Welfare  Departments,  Paramilitary  forces  and  other  Ministries  of Central & State Government under Rate Contract (RC) agreement with Directorate General of Supplies & Disposals (DGS&D) as well as supply of Non Rate Contract (Non-RC) items like Polyvastra bed sheets and pillow covers to Railways etc.
-  KVIC as a part of its aggressive marketing efforts introduced "Gift Voucher Scheme" for its patrons  from  Departmental  Sales  Outlets  (DSOs)  at  Delhi,  Kolkata,  Mumbai,  Goa,  Patna, Ernakulam  ,  Bhopal  and  Vishakapatnam  Airport.  The  'Gift  Voucher  Scheme'  consists  of attractive  'Gift  Vouchers'  in  the  denomination  of  Rs.  500/-,  Rs.  1000/-  and  Rs.  5000/respectively.
-  In  order  to  encourage  bulk  purchases  amongst  its  favoured  patrons  and  khadi  lovers  KVIC introduced "Bulk Retail Linked Gift Voucher Scheme" in Departmental Sales Outlets(DSOs) at Delhi,  Kolkata,  Mumbai,  Goa,  Patna,  Ernakulam  &  Bhopal.  Under  this  scheme,  DSO's  are providing  Gift  Vouchers  on  single  cash  memo  purchases  made  by  customers  across  sales counters of the respective DSOs   in different slabs.
-  Khadi India Sales outlet at Visakhapatnam and Lucknow Airports and Khadi India Lounge at Jaipur, Mumbai and New Delhi have been opened and in order to make Khadi Shopping more comfortable and pleasurable and having specialized "Khadi Plaza' at potential places and tourist spots are also under active consideration.
-  KVIC has signed a KHADI MARK REGISTRATION AGREEMENT with Raymond and JK Group for promoting Khadi fabrics and ready-mades through Raymonds dealers / showrooms / outlets in India and abroad.  Agreements with other corporate are under process. Raymond will make available Khadi products in their Domestic as well as International outlets.

(d): Khadi products are sold at cheaper rates by providing discount up to 20 per cent during the months October to December every year by KVIC as well as State Govt. / Khadi Institutions to make khadi products available in the market at affordable price. KVIC has also launched a number of Gift Schemes during 2016-17.

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