Khadi industry seeks to expand global market

New Delhi, Dec 19, (KNN)  The government has taken up many initiatives to promote and showcase khadi products in the international market through the Khadi Village Industries Commission (KVIC) by offering incentives, participation in international exhibitions, etc.

“The steps taken by the Government to promote/ showcase the products of khadi and village industries (KVI) in the international market through KVIC include: providing incentives at 5 per cent on FOB to KVI institutions on direct export of KVI items subject to a maximum of Rs 10 lakh; KVIC has been given the status of deemed Export Promotion Council (EPC) to facilitate export and; participation of KVIC in international exhibitions and other events along with KVI units to provide them an exposure of the international markets,” said MSME Minister K H Muniyappa in the Lok Sabha yesterday.

Through KVIC, the ministry has also initiated public private partnership in two of its CSPs for providing raw materials of improved quality at a reduced cost to khadi institutions under Khadi Reform and Development Programme being implemented with financial assistance from Asian Development Bank.

Also, “KVIC has set up six Central Sliver Plants (CSPs) in the country and eight godowns at Dausa, Surendranagar, Bijnour, Kurukshetra, Metapalli, Kanhewali, Murshidabad and Thiruvananthapuram to meet the raw material requirement of khadi institutions,” it said.

As per KVIC’s policy, institutions can obtain raw materials from these CSPs on credit by paying only 20 per cent of the annual credit requirement as margin money.