Note4Students: 

Prelims: Khadi and Village Industries Commission (KVIC);

Mains: Challenges related to khadi industry;

Mentor comments:  The khadi industry in India is a vital segment of the textile sector, known for its hand-spun and hand-woven fabrics made from cotton, silk, and wool. It plays a crucial role in generating employment, particularly in rural areas, with millions of artisans involved in its production. The industry has seen significant growth, with khadi production valued at ₹1,904.5 crore (USD 255.8 million) in FY21, up from ₹1,520.8 crore (USD 204.3 million) in FY17. Promoted by the Khadi and Village Industries Commission (KVIC), khadi symbolizes India’s heritage and commitment to sustainable practices.

Let’s learn —

Why in the News? 

• The Prime Minister’s ‘Har Ghar Tiranga’ campaign highlights moral contradiction, as machine-made polyester flags, often imported, overshadow the significance of our national flag.
• The Flag Code of India has historically required the national flag to be made of “hand spun and hand-woven wool/cotton/silk khadi bunting”

Significance of Khadi Industries: 

• Second Largest Employer: After agriculture, the khadi industry is the second largest industry to provide employment opportunities to the unemployed and rural people
• Preserving Heritage: Khadi is a national heritage fabric of India with a unique identity and a rich tradition dating back to ancient times.
• Symbol of Freedom Struggle: Khadi was the fabric of the freedom struggle, with Mahatma Gandhi launching the movement of ‘spin your own cloth and buy hand-spun cloth’ in 1921
• Eco-friendly Production: The production of khadi focuses on the environment right from the beginning, using locally manufactured raw materials without chemicals and energy resources.

The reason behind the Khadi procurement has fallen: 

• Neglect of Mandates: Government departments are reportedly ignoring or overruling mandates requiring them to procure khadi. For instance, many departments shifted to other materials, resulting in a drop in khadi purchases from ₹50-60 crore per year to ₹32 crore over a decade.
• Amendment to the Flag Code: In 2022, the Government amended the Flag Code of India to allow for the use of machine-made polyester bunting for the national flag, which historically required khadi.  
• Tax Exemption for Polyester Flags: The government exempted polyester flags from the Goods and Services Tax (GST), placing them on the same tax footing as khadi flags.  
• Indefinite Strike by Khadi Producers: The Karnataka Khadi Gramodyoga Samyukta Sangha (KKGSS), the sole national flag manufacturing unit accredited by the Bureau of Indian Standards, resorted to an indefinite strike to protest the government’s actions, which they view as detrimental to the khadi industry.
• Market Regulation Failures: The khadi market lacks effective regulation, leading to the sale of khadi produced from semi-mechanized charkhas alongside traditional hand-spun khadi. This situation creates confusion among consumers and undermines the authenticity of traditional khadi.  
• Lack of Global Promotion: The government has failed to establish a global audience for Indian handlooms, particularly khadi. For instance, khadi’s share remains very low, accounting for less than 0.22% of the total textile sector exports.  
• Economic Pressures on Workers: Khadi spinners and weavers are facing economic hardships, with wages remaining low at ₹200-₹250 per day despite their labour-intensive work.  
• Impact of Policy Changes: Recent policy changes, such as the introduction of the Goods and Services Tax (GST), have placed additional burdens on handloom workers. The GST applies to both finished khadi products and raw materials, increasing costs for producers.  

Way forward: 

• Revitalize Government Mandates & Incentivize Khadi Procurement: Reinforce mandates requiring government departments to prioritize khadi procurement and introduce subsidies or tax incentives for using traditional hand-spun khadi, ensuring fair competition against synthetic alternatives.
• Global Promotion & Fair Wages: Launch targeted campaigns to promote khadi internationally, increasing its market share while ensuring that khadi spinners and weavers receive fair wages through direct government support and better pricing mechanisms.