Lok Sabha Question No. 1817 (UNSTARRED), answered on 2019-11-28
Subject: Export of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Amol Ramsing Kolhe, A.K.P. Chinraj, Sunil Dattatray Tatkare, Subhash Ramrao Bhamre, Supriya Sadanand Sule, Kuldeep Rai Sharma

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

## LOK SABHA UNSTARRED QUESTION NO. 1817 TO BE ANSWERED ON 28.11.2019

## EXPORT OF KHADI PRODUCTS

1817. DR. AMOL RAMSING KOLHE: SHRI A.K.P. CHINRAJ: SHRI SUNIL DATTATRAY TATKARE: DR. SUBHASH RAMRAO BHAMRE: SHRIMATI SUPRIYA SULE: SHRI KULDEEP RAI SHARMA:

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

(a) the  details  of  the  countries  in  which  Khadi  products  are  exported  along  with  the quantum of Khadi products exported during each of the last three years and the current year;

(b) whether poor quality of Khadi products has resulted in steep reduction in export of these products to other countries and if so, the details thereof and the reasons therefor;

(c) the quantum of foreign exchange earned out of Khadi exports during the last three years and the current year;

(d) whether the Khadi and  Village  Industries Commission has any mechanism to check the quality of Khadi products produced in the country and if so, the details thereof;

(e) whether  the  Government  has  taken  any  steps  to  maintain  quality  of  international standard to boost Khadi exports and if so, the details thereof and if not, the reasons therefor; and

(f) the other steps taken by the Government to make Khadi an international brand?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): Details  of  the  countries  to  which  Khadi  products  are  exported  along  with  the quantum  of  Khadi  products  exported  during  each  of  the  last  three  years  is  placed  at Annexure-I. Export  data  for  the  current  year  2019-20  is  not  readily  available  with  the KVIC as the Khadi Institutions are scattered all over country and reports are received at the end of the financial year.

(b): No Sir.  Export of Khadi products has increased from Rs.196.97 lakh during 2016-17 to Rs.605.62 lakh during 2018-19.

(c): The  year-wise  value  of  Khadi  products  exported  by  Khadi  and  Village  Industries Institutions during last three years is given in Annexure-I as  mentioned in reply to Part(a) above.

(d): KVIC has established  testing  laboratories  in  the  premises  of  Central  Sliver  Plants (CSPs) located at  Hajipur (Bihar),  Chitradurga (Karnataka),  Kuttur (Kerala),  Sehore (MP) and  Raebareli (UP) for physical  and chemical testing of the  Khadi cloth  produced  by the Khadi  Institutions.  Further,  KVIC  has  also  entered  into  Memorandum  of  Understanding with  Textile Committee, Ministry of Textiles, Government of India for carrying out onsite verification of certified Khadi Institutions applying for 'Khadi Mark' registration to ensure hand spinning and hand weaving process to ensure quality of Khadi products.

(e)&(f): Initiatives  taken  by  the  Government  to  maintain  quality  of  international standard to boost Khadi exports and other steps taken to make Khadi an international brand is placed at Annexure-II .

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## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No.1817 for answer on 28.11.2019

## Details of the countries to which Khadi products are exported along with the quantum of Khadi products exported during each of the last three years

(Rs. in Lakh)

| Year      | Khadi products                                                                                               | Exported through export agencies to                                                                          | Export value                                                                                                 |
|-----------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| 2016 - 17 | Woollen Khadi, Silk Khadi, Muslin Khadi                                                                      | Korea, Muscat, Oman, Germany, Austria, USA, Japan, France, Sweden                                            | 196.97                                                                                                       |
| 2017 - 18 | Woollen Khadi, Silk Khadi, Muslin Khadi                                                                      | Germany, Australia, South Korea                                                                              | 77.88                                                                                                        |
| 2018 - 19 | KhadiFabrics, KhadiStole, Shawl, Shirting and Suiting                                                        | South Korea, Japan, France, Europe                                                                           | 605.62                                                                                                       |
| 2019 - 20 | Data is received at the end of the financial year, as Khadi Institutions are scattered all over the country. | Data is received at the end of the financial year, as Khadi Institutions are scattered all over the country. | Data is received at the end of the financial year, as Khadi Institutions are scattered all over the country. |

## Annexure-II referred to in reply to part (e)&(f) of the Lok Sabha Unstarred Question No.1817 for answer on 28.11.2019

Initiatives/steps taken by the Government to maintain quality to boost the sale of Khadi and to make Khadi an international brand:

1. Khadi  is  hand  spun  and  hand  woven  fabric  in  India  and  hence  it  is  eco-friendly  product. Nevertheless, the quality of raw material is being supplied by Central Sliver Plants of KVIC at par  with  the  quality  standards  of  Textile  Research  Association.  Thus,  the  quality  of  raw material supplied by Central Sliver Plants replicate into the quality of Khadi yarn and cloth.
2. To ensure genuineness of Khadi 'Khadi Mark' has been notified by Government of India.
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. 1088 Khadi & Village Industries Institutions and REGP/PMEGP Units have taken its membership  to  enter  in  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 revitalizing business opportunities in the overseas market by conducting exhibitions and workshops for Khadi Institutions.
5. Tie up arrangements for bringing out innovative export quality product designs with NIFT, etc.
6. 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.
7. Assistance  is  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 is 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 fromeach 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) |

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.
9. The KVIC is also conducting Export work-shops for the benefit of Khadi Institutions.
10. KVIC has been  making persistent efforts  for the  last decades  for exporting Khadi &  Village Industry products produced by KVI Institutions/Units mainly in USA, European Union, South East Asia, Gulf Countries, UAE, Dubai, etc.
11. Government  has  issued  Harmonized  System (HS)  code  to  categorize  11  Khadi  products  in export  and  separate  tariff  lines  for  these  have  been  created.  Definition  of  Khadi  also  been included  in  the  supplementary  notes  of  the  Customs  tariff,  which  have  come  into  effect  from 1.11.2019  on  tentative  basis.  HS  code  is  a  unique  identity  of  product  ID  internationally accepted.