Lok Sabha Question No. 2191 (UNSTARRED), answered on 2018-12-24
Subject: Khadi Exports
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BHOLA SINGH, MOHANBHAI KALYANJIBHAI KUNDARIYA, SUNIL BALIRAM GAIKWAD

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2191

## TO BE ANSWERED ON 24.12.2018

## KHADI EXPORTS

2191.  SHRI BHOLA SINGH:

SHRI KUNDARIYA MOHAN BHAI KALYANJI BHAI:

DR. SUNIL BALIRAM GAIKWAD:

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

- (a) whether the growth of Khadi Gramodyog has declined resulting in sharp decline in the export of khadi products in the last three years;
- (b) if so, the details thereof and the reasons therefor;
- (c) the  details  of  khadi  products  exported  and  foreign  exchange  earned  therefrom during the said period, product and country-wise; and
- (d) whether  the  Government  proposes  to  provide  special  incentives  to  khadi  and village industries to promote its exports and if so, the details thereof?

## ANSWER

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

(a)&(b): No,  Madam.  The  growth  of  Khadi  Gramodyog  has  not  declined.  The export of Khadi and Village Industries (KVI) products has also increased during the last three years. Details of production, sales and exports of KVI products during the last three years is given below:

(Rs. in crore)

| Year                   |   Production |   Sales |   Exports |
|------------------------|--------------|---------|-----------|
| 2015-16                |      34490.2 | 41894.6 |    140.12 |
| 2016-17                |      42631.1 | 52138.2 |    269.39 |
| 2017-18 ( Provisional) |      48081.4 | 59182.4 |    270.35 |

- (c): The export of Khadi & Village Industries products is done by the Khadi and Village Industries institutions and units directly or through merchant exporters.  Khadi and Village Industries Commission (KVIC) does not export directly.   Country-wise details of exports of KVI products during last three years is placed at Annexure-I.
- (d): Initiatives  taken  by  the  Government to  promote Khadi and Village Industries and its export is placed at Annexure-II.

****

## Annexure-I referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 2191 for answer on 24.12.2018

## Performance of Export of Khadi and VI Product during the last three years

2015-16

| Sl No   | Product                     |   Export (Rs. in lakhs) | Countries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|-----------------------------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1       | Handmade paper& products    |                 4280    | UK, USA, Germany, South Africa, Canada, Japan, Columbia, Sri Lanka and France                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 2       | Papad                       |                 6976.82 | USA, U.K., London, France, Germany, Italy, UAE Australia, Japan, Canada, South Africa, other countries.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3       | Khadi (woolen Silk& Muslin) |                   11.09 | Italy, Australia, Poland                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4       | Brass &Metal                |                    5.5  | Malaysia, Singapore and UK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 5       | Honey                       |                  657    | Japan, Muscat, Dubaï, Jordan, Seychelles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 6       | Wheat Grass                 |                   60.83 | 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       | Aromatic &Essential oil     |                  180    | Gulf countries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 8       | food items                  |                   42    | UAE, Oman, Sri Lanka, Liberia, Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 9       | HDPE/PP/woven Bed           |                    0    | USA, Sudan, Spain, Chilly, Italy, Nigeria, Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10      | Textile based Handicraft    |                 1754.69 | USA, &Japan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 11      | Wood carving products       |                   30    | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 12      | Leather items               |                   10    | South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 13      | Hair oil &other cosmetics   |                    4.22 | ASSRC &Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|         | Total                       |                14012.1  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

2016-17

| Sl No   | Product                                |   Export (Rs. in lakhs) | Countries                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|----------------------------------------|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1       | Handmade paper & products              |                 3151.93 | Through agency                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2       | Papad                                  |                 6940.61 | USA, UK, London, France, Germany, Italy, UAE, Australia, Japan, Hon Kong, Canada, South Africa, and Vietnam                                                                                                                                                                                                                                                                                                                 |
| 3       | Khadi (woollen Silk & Muslin)          |                  196.97 | Korea, Muscat, Oman, Germany, Austria, USA, Japan, France, Sweden and through agency                                                                                                                                                                                                                                                                                                                                        |
| 4       | Brass &Metal                           |                  175    | Europe                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 5       | Honey                                  |                13349    | UAE, Saudi Arabia, USA, Libya, Oman and through agencies in all over the country.                                                                                                                                                                                                                                                                                                                                           |
| 6       | Wheat Grass                            |                   44.19 | Jordan, Cambodia, Sweden, Kazakhstan, Sudan, Seychelles, Chile, South Africa, USA, The Netherland, Malaysia, UK, Curacao, Canada, Japan, Thailand, Spain, Sri Lanka, Hong Kong, Vietnam, Mauritius, Philippines, Kenya, Bahrain, Turkey, Czech Republic, Egypt, Qatar, Bhutan, Nigeria, Burkina Faso, Italy, Ireland, Mexico, Nepal, Saudi Arabia, Tanzania, Rwanda, Brazil, Ecuador, Norway, Cyprus, Botswana, Bangladesh. |
| 7       | Soap, Shampoo &Lotion                  |                  610    | Japan, Singapore, Switzerland, New Zealand, France, UAE, Malaysia, USA& through agancy                                                                                                                                                                                                                                                                                                                                      |
| 8       | Food items                             |                  149.05 | South Africa, Gulf countries, Kenya, Australia, USA                                                                                                                                                                                                                                                                                                                                                                         |
| 9       | Ready Made Garments                    |                  104.5  | Dubai, Kuwait, UK, Canada, Australia, USA.                                                                                                                                                                                                                                                                                                                                                                                  |
| 10      | Wood carving products / Wood Furniture |                   12.5  | USA, Malaysia, &Singapore.                                                                                                                                                                                                                                                                                                                                                                                                  |
| 11      | Hair Oil & other cosmetics             |                  169.76 | USA, Canada, Dubai, Sri Lanka, Panama, Russian, UAE, South Africa.                                                                                                                                                                                                                                                                                                                                                          |
| 12      | Aromatic &Essential Oil                |                  181.8  | USA, France, Europe, Middle East countries through agency                                                                                                                                                                                                                                                                                                                                                                   |
| 13      | Leather items                          |                   20.5  | USA, Switzerland &Through agency.                                                                                                                                                                                                                                                                                                                                                                                           |
| 14      | Handicrafts                            |                 1557.09 | USA, UK, Malaysia                                                                                                                                                                                                                                                                                                                                                                                                           |
| 15      | Silver Nitrate                         |                    8    | Malaysia, Italy.                                                                                                                                                                                                                                                                                                                                                                                                            |
| 16      | Pottery item                           |                   12    | Through agency                                                                                                                                                                                                                                                                                                                                                                                                              |
| 17      | Katha                                  |                  255.81 | Through agency                                                                                                                                                                                                                                                                                                                                                                                                              |
| Total   | Total                                  |                26938.7  | 26938.74                                                                                                                                                                                                                                                                                                                                                                                                                    |

## 2017-18

| Sl No   | Product                                |   Export (Rs. in lakhs) | Countries                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|----------------------------------------|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1       | Handmade paper& products               |                 3857.52 | Through agency                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2       | Papad                                  |                 6183.74 | USA, UK, London, France, Germany, Italy, UAE, Australia, Japan, Honkong, Canada, South Africa, and Vietnam and other countries                                                                                                                                                                                                                                                                                              |
| 3       | Khadi (woollen Silk& Muslin)           |                   77.88 | Germany, Australia, South Korea and through agency                                                                                                                                                                                                                                                                                                                                                                          |
| 4       | Brass &Metal                           |                  213    | Europe, Malaysia                                                                                                                                                                                                                                                                                                                                                                                                            |
| 5       | Honey                                  |                13150    | USA, UAE, Saudi Arabia, Oman, Libya and Through agency                                                                                                                                                                                                                                                                                                                                                                      |
| 6       | Wheat Grass                            |                   70    | Jordan, Cambodia, Sweden, Kazakhstan, Sudan, Seychelles, Chile, South Africa, USA, The Netherland, Malaysia, UK, Curacao, Canada, Japan, Thailand, Spain, Sri Lanka, Hong Kong, Vietnam, Mauritius, Philippines, Kenya, Bahrain, Turkey, Czech Republic, Egypt, Qatar, Bhutan, Nigeria, Burkina Faso, Italy, Ireland, Mexico, Nepal, Saudi Arabia, Tanzania, Rwanda, Brazil, Ecuador, Norway, Cyprus, Botswana, Bangladesh. |
| 7       | Soap, Shampoo& Lotion                  |                  649.85 | Japan, Singapore, Switzerland, New Zealand, France, UAE, Malaysia, UK, USA, Sri Lanka &through agency                                                                                                                                                                                                                                                                                                                       |
| 8       | Food items                             |                   97.65 | South Africa, Kenya, Australia, USA                                                                                                                                                                                                                                                                                                                                                                                         |
| 9       | Ready Made Garments                    |                  108.5  | UK, Canada, Australia, USA                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10      | Wood carving products / Wood Furniture |                   35    | USA, Malaysia, Singapore                                                                                                                                                                                                                                                                                                                                                                                                    |
| 11      | Hair Oil &other cosmetics              |                  245.25 | Panama, Russian, UAE, South Africa, Gulf Countries                                                                                                                                                                                                                                                                                                                                                                          |
| 12      | Aromatic &Essential Oil                |                   75    | USA, France, Europe                                                                                                                                                                                                                                                                                                                                                                                                         |
| 13      | Leather items                          |                  148    | USA, Switzerland and through agency                                                                                                                                                                                                                                                                                                                                                                                         |
| 14      | Handicrafts                            |                 1838.6  | USA, UK                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 15      | Silver Nitrate                         |                    0    | Through agency                                                                                                                                                                                                                                                                                                                                                                                                              |
| 16      | Pottery item                           |                   38.5  | Bangladesh and through agency                                                                                                                                                                                                                                                                                                                                                                                               |
| 17      | Katha                                  |                  206.21 | Pakistan                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 18      | Kalamkari Paintings                    |                   40    | USA and Malaysia                                                                                                                                                                                                                                                                                                                                                                                                            |
| Total   | Total                                  |                27034.7  |                                                                                                                                                                                                                                                                                                                                                                                                                             |

## Annexure-II referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 2191 for answer on 24.12.2018

Following  initiatives  have  been  taken  by  the  Government  to  promote  Khadi  and  Village Industries and its export:

1. To  ensure  genuineness  of  Khadi  'Khadi  Mark'  has  been  notified  by  Government  of India.
2. 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.  1088  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:
3. 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 by conducting exhibitions and workshops for Khadi Institutions.
4. Tie  up  arrangements  for  bringing  out  innovative  export  quality  product  designs  with NIFT, etc.
5. 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.
6. Assistance  would  be  provided  under  the  MPDA  Scheme  to  the  eligible  Khadi  and Village Industries (KVI) Institutions for participation in International Exhibitions/Trade Fairs held in foreign countries in order to showcase KVI products to foreign countries, access international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

| S.No.   | Eligible items   | Scale of assistance for KVIs                                                                                                                                                |
|---------|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)      | Space Rent       | 100% of the space rent subject to a maximum of Rs.1.25 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)             |
| ii)     | Air Fare         | 100% of the Economy Class air fare subject to a maximum of Rs.1.00 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise) |

7. KVIC  participated/Exhibited/Promoted Khadi products on the occasion of 72 nd Independence Day celebrations on 15 th August 2018 in 10 Indian Consulates abroad.
8. KVIC Exhibiting/Promoting Khadi products under activity of 'Global Khadi' on the eve of  celebration  of  150 th Birth  Anniversary  of  Mahatma  Gandhi  and  shipped  the  Khadi products to 46 Indian Embassies/Missions abroad.