Lok Sabha Question No. 731 (UNSTARRED), answered on 2023-12-07
Subject: Wages of Khadi Artisans
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ramya  Haridas

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

## LOK SABHA UNSTARRED QUESTION No. 731 TO BE ANSWERED ON 07.12.2023

## WAGES OF KHADI ARTISANS

## 731. MS. RAMYA HARIDAS :

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

- (a) whether  the  Government  is  aware  that  the  income/wages  of  khadi  artisans  namely  spinners  and weavers in a year is much below than minimum wages of unskilled labourers;
- (b) if so, the details of break-up of their average approximate minimum income per day from wage and Modified Market Development Assistance (MMDA) combined; and
- (c) whether the Government is aware that in MMDA system, khadi institutions face problems vis-a-vis payment delays and rebate uniformity absence and if so, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) & (b): Spinning wages of artisans have been increased from Rs. 7.50/-per hank to Rs.10.00/-per hank and Weaving wages for Cotton Khadi, Woollen Khadi and Polyvastra have been increased by 10% w.e.f. 01.04.2023.

The earning of Khadi spinners and weavers, engaged in Khadi activities are based on their production under piece rate system. The average production capacity of the spinners is around 22 hanks per day on New Model Charkha (NMC) on which the wages are at the rate of Rs. 10.00 per hank and the spinning wages comes to around Rs. 220/- per day, on which 10% incentive and 12% Artisan Welfare Fund (AWF) are to be added. Thus, the wages of the spinners come to around Rs. 270 /- per day. The average weaving wages is  around Rs.  250/-  to  Rs.  500/-  per  day  depending  upon  the  weaving  for  different  varieties  like cotton Khadi, silk Khadi.

Apart from the above, for improving the income of Khadi artisans, KVIC under the Khadi Vikas Yojana  provides  35%  quantum  of  Modified  Marketing  Development  Assistance  (MMDA)  to  Khadi Institutions on prime cost of production out of which 35% quantum is provided to Khadi artisans.

(c): MMDA aims to provide financial  assistance  to  khadi  artisans  in  the  form  of  incentives  thereby improving production & sale of Khadi. It is therefore  aimed at increasing the wages and improving the livelihood of the artisans involved with Khadi Institutes.

The rebate on Khadi was being extended on the sale point to provide discount to the customers for compensating the cost of the Khadi fabric on par with the general textile cost in the open market in which no benefit for the Khadi artisans. Thus, MMDA cannot be matched with erstwhile rebate.

As per the MMDA guidelines, MMDA incentive shall be disbursed by KVIC on quarterly basis within  35  days  after  completion  of  the  particular  quarter.  The  MMDA  claims  are  submitted  by  KIs  as quarterly basis through online processing system. During the scrutiny of the MMDA claims uploaded by the  Khadi  institutions,  only  those  claims  which  are  not  as  per  the  requisite  parameters  and  requires additional information /documents will be returned to the KIs for compliance.

Apart from the above, the field offices of KVIC are also conducting regular awareness camps, review meetings and monitoring of MMDA scheme for effective implementation and timely disbursement of MMDA claims.

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