Home / Knowledge / News / Textiles / Reforms in Khadi sector
Reforms in Khadi sector
02
Oct '10
To fully realize the significant growth potential of KVI sector, a comprehensive Khadi Reforms and Development Programme (KRDP) has been initiated by the Government with assistance to KVIC from Asian Development Bank. KRDP envisages re-vitalisation of KVI sector with enhanced sustainability of khadi, increased employment and income, increased artisans welfare through their capacity building, empowerment and enhanced earnings and also development of select traditional village industries.

The programme will be implemented by 300 selected khadi institutions over a period of three years which has already started with release of first installment of Rs 96 crore to KVIC in March 2010. Under this programme, each reform implementing khadi institution (KI) will be provided assistance of around Rs 1.19 crore to implement the identified set of reform activities.

Reforms are envisaged in raw material production leading to improved quality and reduced cost of khadi products, effective marketing with sophisticated professional support in the form of sales networking, better inventory management and design improvement. The unique brand image of khadi as an environment friendly heritage product would be harnessed through development of 'khadi mark'. Gandhian values will continue to be guiding principles in the entire reform process with focus on sustainability and growth. Around Rs 720 crore will be spent through KVIC on this programme between 2009-10 and 2011-12.

The budget allocation for khadi and village industries sector has been enhanced substantially from Rs 261 crore in RE 2009-10 to Rs 542 crore in 2010-11 which means an enhancement of around 107%.

MDA Scheme as an Improvement Over Rebate System
The Government had a system of providing 20% special rebate to customers for 108 days to coincide with Gandhi Jayanti/ local festivals to promote sale of khadi, a hand-woven fabric made from hand-spun yarn. Several Committees formed by the Government in the past had observed that a major part of the manpower and resources of KVIC remain engaged in administration of rebate, whereas main function of KVIC to develop the sector through appropriate schemes and other interventions required more emphasis. It was recommended that the system of rebate on the sale of khadi be substituted with suitable alternatives for Market Development latest by 31 March 2010.

Accordingly, after experimenting with several pilot trials and extensive consultations with stakeholders by KVIC, the Government introduced a more flexible scheme, namely, Market Development Assistance (MDA) Scheme on production of khadi in place of the earlier existing scheme of Rebate on sales with effect from 01.04.2010 for implementation by KVIC during 2010-11 and 2011-12.

The scheme envisages financial assistance @ 20% of production value on khadi and polyvastra which will be shared among artisans (i.e., spinners and weavers), producing institutions and selling institutions in the ratio 25:30:45. Under the new system of MDA, sales are expected to be evenly spread throughout the year and the institutions will have the flexibility to use the assistance for increasing wages to spinners and weavers, on improving the outlets and quality of products besides giving incentive or discounts to customers.

Click here for more details

Press Information Bureau

Must ReadView All

Textiles | On 29th Mar 2017

'Increase in demand for organic designer linen'

There has been an increase in the demand for organic designer linen....

Apparel/Garments | On 29th Mar 2017

Jo-Ann launches 'Buy Online, Pick Up in Store' service

Jo-Ann Fabric and Craft Stores, a specialty retailer of crafts and...

Courtesy: Pratibha Syntex

Textiles | On 29th Mar 2017

Pratibha Syntex wins C&A's Best Global Supplier Award

Pratibha Syntex, a leading manufacturer and exporter of knitted...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search