KVIC's staus as export promotion council to boost khadi units

With the government now deeming Khadi and Village Industries Commission (KVIC) as an export promotion council, the 900-odd units are now upbeat of tapping the overseas market in a fresh way. KVIC officials state the next year could see 10-15 per cent growth in exports for the industry, especially for khadi.

"There are over 230 khadi institutions in Gujarat alone. With the export promotion council status having been received, this will boost exports, especially that of khadi by 10-15 per cent. Add to that, this has also helped the institutions to participate in international exhibitions that could result in increased orders for the khadi industry," said Sanjay Hedaoo, state director - Gujarat for KVIC.

According to Hedaoo, certain khadi institutions have already visited countries like Brazil, Muscat, Switzerland and Dubai for participating in international exhibitions. Currently, khadi exports from Gujarat alone amount to Rs 5 crore per annum.

Recently, KH Muniyappa, minister of state for micro, small and medium enterprises, Government of India announced that in order to boost exports of KVI products including handicrafts, traditional food items and khadi fabric and apparel, the KVIC had been given deemed 'export promotion council' status. "There is a provision of providing incentive in the form of 5 per cent free on board (FOB) value of direct export of KVI products. Besides, KVIC has also been focusing on quality participation in International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for KVI products," Muniyappa said recently.

Moreover, with assistance of US$ 150 million from Asian Development Bank (ADB), KVIC has also been implementing a comprehensive reform package for the khadi sector namely Khadi Reform and Development Programme (KRDP), which includes capacity building of 300 khadi institutions and incentivising production.

"Formation of new khadi institutions are also promoted by KVIC. During the last three years, 234 new khadi institutions have been set up in the country," said Muniyappa.