Rebates on khadi products have been replaced with the market development assistance (MDA) scheme since April 1, 2021, based on recommendations from various committees. This new scheme aims to boost sales and improve the quality of Khadi for customers. Under MDA, 25 per cent of assistance is given to spinners and weavers as an additional incentive through their bank or post office accounts.
The modified market development assistance (MMDA) scheme, introduced in the third quarter of financial year 2016-17, focuses on technology upgradation, design development, modernisation of sales outlets, and incentives for artisans and karyakartas. The guidelines for MMDA were revised on October 19, 2022. The incentives provided under MMDA are different based on the type of khadi product and the parties involved.
To ensure efficiency and transparency, online portals have been developed by Khadi and Village Industries Commission (KVIC) for the timely implementation of these schemes, especially the disbursement of MMDA on a quarterly basis.
KVIC has been collaborating with various government departments and bulk buyers like railways, defense, and health & family welfare departments to increase the sale of khadi and village industries products. Additionally, the introduction of the GeM portal has made 30 varieties of Khadi items available online.
The steps taken by the government through KVIC to promote and boost sales of Khadi and Village Industries products include selling products through a network of outlets, an online portal, and participating in events like IITF 2022 and Lakme Fashion Week. Social media initiatives, discounts, and collaborations with NIFT for design development are also in place to further support the growth of Khadi products.
These efforts have led to a significant increase in sales, with supplies amounting to Rs 8,765.15 lakh in 2021-22 and Rs 9,202.27 lakh in 2022-23.
Minister of State for Micro Small and Medium Enterprises, Bhanu Pratap Singh Verma, shared these details in a written reply to the Lok Sabha, showcasing the government’s commitment to promote and empower the Khadi sector.