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| ITC, ORMAS tie-up soon for incense making |
| BS Reporter / Kolkata/ Bhubaneswar Oct 12, 2009, 00:36 IST |
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To provide a platform for creating employment opportunities and enhance livelihood options for rural women, the Orissa Rural Development and Marketing Society (ORMAS) plans to sign a memorandum of understanding (MoU) with the FMCG major ITC Ltd for manufacturing of incense sticks in the state. It is expected to be signed next week, sources said.
ORMAS has already identified three clusters each in Khurda, Nayagarh, Phulbani and Cuttack districts for taking up the manufacturing of incense sticks. The agreement will pave the way for engaging about 4000 women in agarbati manufacturing in the state in an organised way.
Sources said, under the proposed arrangement, ORMAS will provide the raw materials required for incense sticks to the women self help groups (WSHGs). ITC will appoint 2 persons for quality control.
Once the production in the state reaches 60 tonne per month, the company will set up a scented and packaging unit in Bhubaneswar. The Panchayatiraj department has already identified 1 acre land near Kalpana square for the purpose.
It may be noted ORMAS started manufacturing of incense sticks on a trial basis at Bhapur in Nayagarh district. It had tied up with a company named as JDPL which was supplying incense sticks to ITC. Subsequently, ITC expressed its interest to be directly associated with the process.
Sources said, the potential of Orissa in manufacturing of raw incense sticks is high because of abundant availability of bamboo in the state.
Since the hand rolled incense sticks are at nascent stage in the state, the proposed MoU will provide an impetus for the growth in this regard. Meanwhile, ITC has sought waiver of value added tax on raw incense and bamboo sticks.
It may be noted, states like Chandigarh, Delhi, West Bengal, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh, Madhya Pradesh, Haryana and Assam have already exempted local sales tax on incense sticks.
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