Lok Sabha Question No. 446 (UNSTARRED), answered on 2018-02-05
Subject: Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: MALLIKARJUN  KHARGE

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

## LOK SABHA UNSTARRED QUESTIONNO.446 TO BE ANSWERED ON 05.02.2018

## KHADI PRODUCTS

## 446. SHRI MALLIKARJUN KHARGE:

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

- (a) whether use of Khadi has increased in the last three years and if so, the details of Khadi sales, profits, and volume reported during the said period;
- (b) the sector-wise details regarding the increase and decrease of various Khadi products and their share in respect to the volume of overall Khadi Gram Udyog;
- (c) whether the Government has any plans/schemes/programmes to keep Khadi in competition with private brands and if so, the details thereof; and
- (d) the details of the schemes/ programmes implemented by the Government to promote sale of Khadi products both in domestic and international market?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b): Khadi  and  Village  Industries  Commission  (KVIC)  is  promoting  Khadi  and  Village Industries  programme throughout the country through, Khadi institutions and entrepreneurs and thereby  generating  employment  opportunities  for  unemployed  youth.    Khadi  Institutions  are autonomous bodies maintaining their books of accounts at their level.  During the last three years the production and sales of khadi and polyvastra has increased considerably.  Production and sales of Khadi and Village Industries (KVI) products recorded by these institutions and entrepreneurs for last three years are given below:

(value Rs. in crores)

| Year    |   KVI Production | Share of Khadi production        |   %of Khadi production in total KVI production |   KVI Sales | Share of Khadi sales             |   %of khadi sales in total KVI production |
|---------|------------------|----------------------------------|------------------------------------------------|-------------|----------------------------------|-------------------------------------------|
| 2014-15 |          27569.4 | Khadi-879.98 Polyvastra- *       |                                           3.19 |     33135.9 | Khadi- 1170.38 Polyvastra- *     |                                      3.53 |
| 2015-16 |          34490.2 | Khadi-1065.60 Polyvastra-92.84   |                                           3.09 |     41894.6 | Khadi-1510.00 Polyvastra- 153.98 |                                      3.6  |
| 2016-17 |          42631.1 | Khadi-1401.84 Polyvastra- 118.99 |                                           3.57 |     52138.2 | Khadi-2007.61 Polyvastra- 138.99 |                                      4.12 |

(c)&(d): KVIC is implementing the following schemes/programme all over the country in order to promote and modernize Khadi programme and thereby to keep Khadi in competition with private brands and promote sale of khadi products both in domestic and international market:

- i) Market Promotion and Development Assistance (MPDA) Scheme:  Under this scheme, Modified Market Development Assistance (MMDA) is given to Khadi Institutions at 30% of  the  prime  cost  of  Khadi  Production  for  development  of  infrastructure  and  40%  of MMDA is provided to Spinners, Weavers and other Karyakartas as incentive to enhance their wages.
2. ii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI): To make the traditional  industries  more  productive,  competitive  and  to  facilitate  for  their  sustainable development,  the  Government  of  India  is  implementing  the  SFURTI  Scheme.    It  is basically a cluster development programme, designed to protect and preserve the arts and crafts of rural traditional artisans, in a cluster based manner and is expected to make the products  of  traditional  industries  market  worthy,  besides  facilitating  them  to  generate sustainable employment to the rural artisans. The skill development racing to the Artisans engaged in the activity is also provided.
3. iii) Khadi  Reform  and  Development  Programme  (KRDP):  In  order  to  fully  realize  the significant  growth  potential of KVI Sector, in terms of employment generation, enhance with the earning of artisans and ensure positioning of Khadi in consonance with the current market needs, a comprehensive reform programme captioned Khadi Reform and Development  Programme  (KRDP)  and  is  being  implemented  with  the  assistance  from Asian Development Bank (ADB).  The skill development training to the Artisans
4. iv) Strengthening of Infrastructure of Existing Weak Khadi Institutions and assistance for Marketing Infrastructure Scheme is implemented for Strengthening of Infrastructure of Existing Weak Khadi Institutions and assistance for Marketing Infrastructure, to nurse the sick Khadi Institutions which have potential to attain normalcy.

In addition to the above, new initiatives have also been taken to keep Khadi in competition with private brands which is placed at Annexure-I.

*****

## Annexure-I referred to in reply to part (c)&(d) of the Lok Sabha Unstarred Question No. 446 for answer on 05.02.2018

## Following are the new initiatives taken to keep khadi in competition with private brands:

1. KVIC engaged fashion designer of national and international repute for Fashion Designing to make  Khadi  products  more  competitive  and  appealing  in  the  domestic  as  well  as  overseas market segment.
2. A MoU was signed between KVIC and Aditya Birla Fashion & Retail Ltd. (ABFRL), Raymond and Arvind Mills for sale of Khadi fabric in country and abroad.
3. Ministry of Commerce and Industry, Govt. of India has extended KVIC, the status of Deemed EPC, for supporting promotion of Khadi and Village Industries products in international market. 1077  Khadi  &  Village Industries Institutions  and  REGP/PMEGP  Units  have  taken  its membership  to  enter  the  field  of  export.  KVIC  through  its  assisted  institutions  and  units participates in various international exhibitions.
4. Tie  up  arrangement  with  premier  institutions  like  Federation  of  Indian  Export  Organization (FIEO),  World  Trade  Centre  (WTC),  Indian  Trade  Promotion  Organization  (ITPO),  Trade Promotion Council of India etc., for invigorating business opportunities in the overseas market.
5. KVIC has entered into an agreement with  M/s. GLOBUS a retail clothing stores chain having its  HO in Mumbai for setting up of  Khadi Korner a shop in shop concept initially in Globus Showroom at Noida, followed by Globus showroom in Chennai and Ahmedabad.
6. Setting up of modern Khadi Lounge with exquisite Khadi designer garments and V.I. products for making shopping Khadi a pleasure.
7. Launching of franchise scheme to expand the sales distribution network with zero investment.
8. Tie up with e-Commerce platform for on-line marketing through e-Commerce companies like Paytm, Aaarmart.
9. Special efforts to attract youth by introducing attractive T-shirts, Khadi jeans, jackets, kurtis, etc.  as  well  as  launching  a  range  of  casual  wear  called  vicharvastra  specially  designed  by Ms.RituBeri.
10. Opening  of  sales  outlets  at  domestic  as  well  as  international  airports  like  Vishakapatnam, Lucknow, Ahmedabad, etc.
11. Opening Khadi Outlets in Post Offices.
12. Tie  up  arrangements  for  bringing  out  innovative  export  quality  product  designs  with  NIFT, etc.
13. Tie up arrangement with premier export institutions like FIEO, CII and FICCI for conducting exhibitions and workshops.
14. Ensuring  strong  digital  presence  with  a  vision  to  reach  out  to  the  required  target  audience through online social mediums such as Face book, Twitter, LinkedIn, YouTube etc.
15. Introducing  Social  media  initiatives    including  handling,  operation  and  management  of  all social  media  content  on  social  media  platforms  such  as  Face  book,  Twitter,  Instagram, YouTube, LinkedIN, etc. and ORM.
16. Introducing store app through mobile application to facilitate the customers to locate the Khadi India sales outlet at various geographical location to increase foot falls at various stores under Khadi sector.
17. Introduction  of  pre-paid  Gift  Voucher  Scheme  for  corporate  gifting  including  PSU  and Government Departments.
18. To ensure genuineness of khadi 'Khadi Mark' has been notified by Government of India.