Lok Sabha Question No. 3931 (UNSTARRED), answered on 2024-12-19
Subject: Khadi Workers
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Manish Jaiswal, Shri Mukesh Rajput, Smt. Smita Uday Wagh, Smt. Aparajita Sarangi, Shri Kanwar Singh Tanwar, Shri Praveen Patel, Shri Dilip Saikia, Shri Chavda Vinod Lakhamshi, Shri Jagdambika Pal, Shri Suresh Kumar Kashyap

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

## LOK SABHA UNSTARRED QUESTION No. 3931 TO BE ANSWERED ON 19.12.2024

## KHADI WORKERS

## 3931.  SHRI MANISH JAISWAL:

SMT. SMITA UDAY WAGH:

SHRI CHAVDA VINOD LAKHAMSHI:

SHRI PRAVEEN PATEL:

SHRI KANWAR SINGH TANWAR:

SHRI JAGDAMBIKA PAL:

SHRI MUKESH RAJPUT:

SHRI SURESH KUMAR KASHYAP:

SMT. APARAJITA SARANGI:

SHRI  DILIP SAIKIA:

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

- (a) whether the Government proposes to provide new wages for the khadi workers in the country;
- (b) if  so,  the  details  thereof,  State-wise  particularly  in  respect  of  Uttar  Pradesh  and  Himachal Pradesh;
- (c) the manner in which the Government is likely to ensure long term wage sustainability;
- (d) whether the Government proposes to promote sale of Khadi and Village Industries products to maximize the impact of the announced discounts on consumer demand;
- (e) if so, the details of the steps taken by the Government in this regard;
- (f) the measures implemented by the Government to monitor effectiveness of the said wage hikes and rebates in improving the livelihood of Khadi workers along with overall development and fostering growth of Khadi sector;
- (g) the current status and number of khadi workers in Himachal Pradesh; and
- (h) the  manner  in  which  the  Government  proposes  to  further  strengthen  the  Khadi  ecosystem  to ensure a sustainable market for these products, while preserving the cultural and traditional significance of the sector?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): Khadi  and  Village  Industries  Commission  (KVIC),  to  support  the  Khadi  artisans,  has periodically  increased  their  wages  to  improve  their  earnings  and  overall  livelihood.  With  effect  from 01.04.2023,  the  spinning  wages  was  increased  from  Rs.  7.50  per  hank  to  Rs.  10.00  per  hank  and weaving wages were raised by 10%, which not only boosted the production capacity of Khadi artisans but also significantly enhanced their earnings.

Further, KVIC has enhanced the spinning wages from Rs. 10.00 per hank to Rs. 12.50 per hank and weaving wages by 7%, effective from 02.10.2024.

Besides, under MMDA, 35% of MMDA is provided to artisans as incentive in case of Khadi Institutions  of  cotton,  woollen,  polyvastra  and  30%  quantum  of  MMDA  is  provided  to  artisans  as incentive in case of Khadi Institutions of silk. State-wise details of Number of Khadi Artisans benefitted under MMDA and Incentive paid to them during the year 2023-24 is placed at Annexure.

(c): The details of support extended to ensure the long term wage sustainability of Khadi artisans, are as follows:

- i. Modified  Market  Development  Assistance  (MMDA):  Under  MMDA,  35%  of  MMDA  is provided to artisans as incentive in case of Khadi Institutions of cotton, woolen, polyvastra and 30% quantum of MMDA is provided to artisans as incentive in case of Khadi Institutions of silk.
- ii. Workshed Scheme for Khadi Artisans, provides financial assistance to artisans for construction of  individual  workshed,  an  assistance  upto  Rs  1,20,000/-  or  75%  of  the  total  cost  of  the workshed {90% for North Eastern Region (NER)} and for group  Workshed (minimum 5 and maximum 15 artisans), an assistance up to Rs. 80,000/- per artisan or 75% of the total cost of the group Workshed (90% for NER), whichever is less, is provided.
- iii. Further,  improve  the  livelihoods  of  khadi  artisans,  periodic  enhancements  in  their  wages  are prioritized. Initiatives such as increasing the spinning wages from ₹10.00 per hank to ₹12.50 per hank and implementing a 7% increase in weaving wages for cotton khadi, woolen khadi, and polyvastra have been introduced with effect from 2 nd October 2024.

(d) & (e): To promote the sale of Khadi and Village Industries products, following initiatives are being taken by KVIC:

- i. KVIC has established a partnership with National Institute of Fashion Technology (NIFT) and established  Centre  of  Excellence  for  Khadi  (CoEK),  to  develop  innovative  khadi  products, provide  capacity-building  training  to  artisans,  and  create  new  designs.  These  efforts  aim  to boost  the  promotion  and  sale  of  khadi  products,  ultimately  leading  to  improved  wages  and better livelihoods for khadi artisans.
- ii. The  CoEK  on  the  Hub  and  Spoke  model,  with  NIFT  New  Delhi  as  Hub  along  with  NIFT Ahmedabad, Bengaluru, Kolkata and Shillong - have been set up for establishing benchmarked design processes for global standards, creating new fabrics and products, disseminating quality standards for fabrics, branding and publicity by creating interesting narratives around the new Khadi, creative visual merchandizing & packaging for new Khadi products and increasing the reach of Khadi by organizing National Khadi Fashion Shows and Exhibitions.
- iii. Organizing various level exhibitions and participating in Indian International Trade Fair (IITF) to make KVI products accessible in the domestic.
- iv. Arranged product supply/marketing mechanism through e-Market linkage for MSMEs through GeM portal (gem.gov.in), and e-marketing portal (www.ekhadiindia.com) with an objective to sell Buyer to Consumer.
- v. Established  Khadi  Lounges  at  various  urban  centers  and  in  Tier-II  cities  for  attracting  both connoisseurs of Khadi as well as designers.
- vi. Catering  to  the  need  of  Government  departments  and  bulk  buyers  of  various  Government Organization and PSUs to increase the sales of Khadi products.
- vii. Special discount has been announced on various occasions/festivals to attract customers and to boost the sales of KVI products.
- viii. For  protecting  the  identity  of  brand  'Khadi'  globally,  KVIC  has  secured  registration  for  the Trademark 'Khadi' in 15 countries and secured registration for the Khadi Logo in 32 countries.

(f) & (g): To ensure the effective implementation and timely disbursement of funds under Khadi and Village Industries (KVI) schemes, the field offices of KVIC regularly conduct awareness camps, review  meetings,  and  monitoring  activities.  Additionally,  as  per  the  approved  guidelines,  the  Khadi Vikas Yojana is closely monitored at multiple levels by the State/Divisional Directors and Zonal Deputy CEOs, and the Central Office at the national level.

Furthermore, KVIC has digitized the disbursement of Modified Market Development Assistance (MMDA) and ISEC benefits, ensuring that all payments are directly transferred to the artisans'  bank accounts through the Direct Benefit Transfer (DBT) mode, enhancing transparency and efficiency.

## For overall development of Khadi  Sector following initiatives are being taken by KVIC:

- i. KVIC has implemented several initiatives for the overall development of the Khadi sector. These include  partnering  with  NIFT  and  establishing  the  Center  of  Excellence  for  Khadi  (CoEK)  to develop innovative products, provide capacity-building training, and create new  designs. Collaboration with premier institutes like Indian Institute of Technology (IITs), National Institutes of Technology (NITs), MGIRI, South India Textile Research Association (SITRA), and Bombay Textile  Research  Association  (BTRA)  focuses  on  process  optimization  to  reduce  drudgery, improve productivity, and enhance artisans' earnings. A partnership with Quality Council of India (QCI)  ensures  improved  product  quality.  Also  efforts  to  upgrade  the  production  and  marketing infrastructure of khadi institutions further strengthen the sector. These measures aim to promote innovation, quality, and better livelihoods for artisans.
- ii. Revision of Guidelines of Khadi Vikas Yojana: With a view to extend more benefits to Khadi artisans by enhancing the pattern of financial assistance, the guidelines of Khadi Vikas Yojana has been revised in which under the Workshed Scheme :  Financial assistance of Rs. 1,20,000/- for individual Workshed and Rs. 80,000/- for group Workshed is provided to construct the Workshed.
- iii. Under Strengthening of Infrastructure of Existing Weak Khadi Institutions: To  revive the sick/weak/problematic/"D" category institution, the financial assistance under the said scheme has been provided by KVIC and the pattern of assistance has been revised by the Ministry to Rs. 15.00 lakh from Rs. 9.90 lakh
- iv. Renovation of Sales Outlets: In  order  to  renovate  the  Sales  outlets  thereby  getting  sustainable earnings  by  the  Khadi  artisans,  KVIC  is  providing  the  fund  under  assistance  for  marketing Infrastructures.
- v. Artisans  Welfare  Fund  Trust: under  the  Initiative,  the  share  of  12%  artisan  welfare  fund deducted  from  their  wages  plus  matching  share  of  12%  from  KI  deposits  in  the  State  Level Artisans Welfare Fund Trust and will be withdrawn as and when required by Khadi artisans.

Total 3378 number of Khadi artisans are engaged under Khadi Activities in Himachal Pradesh.

(h): KVIC  under  Khadi  Vikas  Yojana  is  implementing  various  schemes  to  strengthen  the  Khadi sector and ensure the sustainable market for Khadi products, aimed at ensuring the sustainability and growth  of  the  traditional  Khadi  sector.  These  activities  include  partnerships  with  institutions  like National  Institute  of  Fashion  Technology  (NIFT)  to  create  innovative  products  and  designs,  QCI  to improve  the  quality  of  Khadi  products  and  has  focused  on  upgrading  the  production  and  marketing infrastructure  of  Khadi  institutions.  These  initiatives  contribute  to  preserving  India's  rich  cultural heritage  of  Khadi,  aligned  to  improve  the  livelihoods  of  Khadi  artisans  and  boosting  the  sector's growth.

*****

## Annexure referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 3931 for answer on 19.12.2024

State-wise details of Number of  Khadi Artisans benefitted under MMDA and Incentive paid during the FY 2023-24

| Sr. No.   | Name of the State / U.T.   |   No. of Artisans |   Incentive paid (Rs. In Lakh) |
|-----------|----------------------------|-------------------|--------------------------------|
| 1.        | Himachal Pradesh           |                22 |                           0.38 |
| 2.        | Punjab                     |               262 |                          10.74 |
| 3.        | Haryana                    |             21615 |                         943.73 |
| 4.        | Delhi                      |               192 |                           4.27 |
| 5.        | Rajasthan                  |              5998 |                         463.16 |
| 6.        | Uttarakhand                |              3039 |                         221.46 |
| 7.        | Uttar Pradesh              |             40273 |                        2124.87 |
| 8.        | Chhattisgarh               |              1342 |                         289.76 |
| 9.        | Madhya Pradesh             |              1007 |                          96.63 |
| 10.       | Nagaland                   |                36 |                           4.8  |
| 11.       | Manipur                    |                23 |                           0.89 |
| 12.       | Assam                      |              1819 |                          46.71 |
| 13.       | Bihar                      |               390 |                          11.44 |
| 14.       | West Bengal                |             25106 |                        2064.11 |
| 15.       | Jharkhand                  |               157 |                          14.16 |
| 16.       | Odisha                     |               858 |                          89    |
| 17.       | Gujarat                    |             13712 |                        1964.04 |
| 18.       | Maharashtra                |               400 |                          26.28 |
| 19.       | Andhra Pradesh             |              3491 |                         302.58 |
| 20.       | Telangana                  |               396 |                           9.87 |
| 21.       | Karnataka                  |              8077 |                         760.51 |
| 22.       | Kerala                     |             11258 |                         766.92 |
| 23.       | Tamil Nadu                 |              9572 |                        1099.47 |
|           | Total                      |            149045 |                       11315.8  |