KVIC takes steps to strengthen Khadi sector

08 August 2023, Mumbai

The Ministry of MSME is partnering with the Khadi and Village Industries Commission (KVIC) to bolster the Khadi sector.

The government provides financial assistance

Initiatives include endorsing the Khadi Mark and establishing a niche for quality and sustainable Khadi and Village Industries (KVI) products. Financial support is provided for individual and group workshed construction to enhance khadi workers' conditions and fortify weak khadi institutions' infrastructure.

Refurbishes/modernizes CSPs

Raising spinning wages from Rs. 7.50/- to Rs. 10.00 per hank is set to augment artisans' earnings. Collaborating with the Textile Research Association, the KVIC is modernizing CSPs to enhance quality and productivity, lowering moving costs.

These steps aim to elevate production, sales, employment for artisans, and khadi's affordability and sustainability. Furthermore, KVIC's cost management measures encompass utilizing the Price Fluctuation Fund to balance raw material and khadi fabric price hikes.

Sliver/roving costs were held at Rs. 227/Kg until 31.03.2022, then revised to Rs. 385/Kg on 01.04.2022. Cotton costs fell significantly, leading to a corresponding 40% drop in sliver/roving costs to Rs. 265/Kg on 01.04.2023.

KVIC's prompt actions maintained raw material supply to Khadi Institutions, safeguarding uninterrupted production. There are no current plans to waive the 5% GST on cotton sliver, and Khadi institutions remain operational despite lower production levels.

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