Lok Sabha Question No. 2354 (UNSTARRED), answered on 2023-08-03
Subject: Rebate on Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Kuruva Gorantla Madhav, Sanjay(Kaka) Ramchandra Patil, Beesetti  Venkata Satyavathi

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

## LOK SABHA UNSTARRED QUESTION NO. 2354 TO BE ANSWERED ON 03.08.2023

## REBATE ON KHADI PRODUCTS

2354.

SHRI KURUVA GORANTLA MADHAV: SHRI SANJAY KAKA PATIL: DR. BEESETTI VENKATA SATYAVATHI:

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

- (a) whether the Government has any plan to bring back rebates on sale of Khadi products as earlier a rebate of upto forty per cent was given to support the Khadi industries which have since been withdrawn and if so, the details thereof;
- (b) whether the Government  has taken cognisance of the various problems with the manufacturer's development allowance that replaced rebates, such as delay in release of funds that results in khadi units struggling;
- (c) if so, the steps being taken by the Government to rectify such situations;
- (d) whether  it  is  true  that  Government  departments  and  hostels  have  stopped  taking  khadi products such as bedsheets, carpets, towels etc. which is affecting the Khadi commissions;
- (e) if so, the steps taken by the Government to support the village commissions; and
- (f) the  details  of  the  steps  taken  by  the  Government  to  promote  and  boost  sales  of  khadi products?

## ANSWER

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

- (a): Several Committees had studied Rebate scheme to assess its effectiveness in increasing sale of  Khadi.  Based  on  the  recommendations  of  these  Committees,  Government  had  introduced  the scheme of Market Development Assistance (MDA) on Khadi production in place of rebate, with effect from 01.04.2021, to help Khadi institutions to increase artisans' earnings as well as to ensure quality of Khadi to customers. Under MDA scheme, 25% of assistance is earmarked for distribution among  spinners  and  weavers  as  additional  incentive  to  be  paid  through  their  bank/post  office accounts.

Further  the  Government  has  introduced  the  Modified  Market  Development  Assistance (MMDA) scheme w.e.f. 3rd quarter of 2016-17. Modified MDA Scheme aims for technology up gradation, engaging design consultants for developing the new products, value addition by adopting latest  technologies  in  the  post  fabric  stage  /  process,  modernization  &  computerization  of  sales outlets,  introduction  of  mobile  sales  van,  engaging  external  marketing  consultants,  extension  of sales discount, capacity building of the sales personnel and incentives to artisans & Karyakartas, etc. The scheme guidelines have been revised w.e.f. 19.10.2022, and the incentive supported under MMDA as per the revised guidelines is as follows:

| Particulars                        | For Cotton / Muslin / Woolen &Polyvastra   | For Silk   |
|------------------------------------|--------------------------------------------|------------|
| Spinners / Weavers/ other Artisans | 35%                                        | 30%        |
| Karyakarta Share                   | 14%                                        | 10%        |
| KIs Share                          | 51%                                        | 60%        |

(b)&(c): With  a  view  to  avoid  delay  and  bringing  transparency,  online  portals  have  been developed  and  introduced  by  KVIC  for  effective  and  timely  implementation  of  the  schemes particularly disbursement of MMDA on quarterly basis.

(d): No Sir, KVIC has been catering to the need of Government Departments and bulk buyers such as Railways, Defence, Health & Family Welfare Departments, Paramilitary Forces and other Central  &  State  Government  Ministries  to  increase  the  sale  of  Khadi  and  Village  Industries products. After the introduction of GeM portal, KVIC has uploaded 30 varieties of Khadi items on the GeM portal.

The details of KVI products supplied to various Government Departments/Agencies during the last two years is as follows:

(Rs. in lakhs)

| Year    |   Amount of Supplies |
|---------|----------------------|
| 2021-22 |              8765.15 |
| 2022-23 |              9202.27 |

(e): Does not arise.

(f): Details of the steps taken by the Government through KVIC to promote and boost sales of KVI products in the country and abroad is as follows:

- i) The  KVI  products  are  sold  through  a  network  of  8  Departmental  Sales  Outlets  'Khadi India'  and  its  18  branches  of  KVIC  and  8035  nationwide  Khadi  outlets  owned  by  the Khadi Institutions (KIs) across the country.
2. ii) KVIC has designed a portal khadiindia.gov.in for sale of Khadi and VI products.
3. iii) KVIC participated in IITF 2022 organized by India Trade Promotion Organization (ITPO) in New Delhi from 14th to 27th November, 2022 and sale of Rs.12.10 Cr. was reported from the event.
4. iv) KVIC organized twelve State Level Exhibitions and ten Special Exhibitions in all over the country during the year contributing overall sales of Rs.22.68 crore.
- v) KVIC participated/sponsored 28 events organized by other Govt. Departments/NGO's for promotion as well as building awareness about the schemes of KVIC and KVI products.
6. vi) KVIC participated in Lakme Fashion Week in partnership with FDCI jointly organized by Reliance Brand Ltd. (RBL) and Hindustan Unilever Ltd (HUL) on 9th March 2023 at Jio Word Garden, Mumbai.
7. vii) Campaign of sale of National Flag from all KVI sales outlets under the event of 'Har Ghar Tiranga' was celebrated from 13th to 15th  Aug, 2022.
8. viii) 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 linked with KVI sector are being undertaken.
9. ix) Convergence with NIFT has been initiated for design development and developing Khadi fashion garments.
- x) Introduced Khadi Trademark registration for safeguarding interests of Khadi brands.
11. xi) Special  discount  have  been  announced  on  the  various  occasions/festivals  to  attract  the customers and to boost the sales of Khadi and V.I. Products.

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