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We Weave Employment and Spin Prosperity in Rural India The Khadi and Village Industries Commission (KVIC) is a statutory body formed by the Government of India, under the Act of Parliament, 'Khadi and Village Industries Commission Act of 1956'. It is an apex organization under Ministry of Micro, Small and Medium Enterprises (Govt. of India), with regard to khadi and village industries within India, which seeks to - "plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.". In April 1957, it took over the work of former All India Khadi and Village Industries Board. Its head office is based in Mumbai, with its six zonal offices in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati. Other than its zonal offices, it has offices in 29 states for the implementation of its various programs,
Objectives The broad objectives that the KVIC has set before it are...
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The social objective of providing employment. The economic objective of producing saleable articles. The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.
Functions Some of the major functions of KVIC are ... The KVIC is charged with the planning, promotion, organisation and implementation of programs for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.
y Further. The KVIC may also undertake directly or through other agencies studies concerning the problems of Khadi and/or village industries besides research or establishing pilot projects for the development of Khadi and village industries. the KVIC is entrusted with the task of providing financial assistance to institutions and individuals for development and operation of Khadi and village industries and guiding them through supply of designs. prototypes and other technical information. including the use of non-conventional energy and electric power with a view to increasing productivity. creation of common service facilities for processing of raw materials as semi-finished goods and provisions of facilities for marketing of KVI products apart from organisation of training of artisans engaged in these industries and encouragement of co-operative efforts amongst them.Its functions also comprise building up of a reserve of raw materials and implements for supply to producers. In implementing KVI activities. The KVIC is also charged with the responsibility of encouraging and promoting research in the production techniques and equipment employed in the Khadi and Village Industries sector and providing facilities for the study of the problems relating to it. eliminating drudgery and otherwise enhancing their competitive capacity and arranging for dissemination of salient results obtained from such research. To promote the sale and marketing of khadi and/or products of village industries or handicrafts. the KVIC may forge linkages with established marketing agencies wherever feasible and necessary. the KVIC may take such steps as to ensure genuineness of the products and to set standards of quality and ensure that the products of Khadi and village industries do conform to the standards. y y y . The KVIC is authorized to establish and maintain separate organisations for the purpose of carrying out any or all of the above matters besides carrying out any other matters incidental to its activities.
shelter etc. in its origin. especially in the rural sector. People as Market The large consumer companies in the country. There are many demands for the limited resources of the rural population. with 6 year child for a bottle of soft drink !! Market for People KVIC is conceived to ³create market from the people and for the people and by the people´. though meager they are. most of them offshoots of colonial establishment equate people with market for its products.Success Story of KVIC A Record year for KVIC: Rs 10193. KVIC is now set on a trajectory of meaningful growth fulfilling its mission of generating gainful employment to thousands of people. education. to fight shamelessly. However in many instances products are not meant to meet the living needs of the people but the profit target of the corporations. The modern commerce thrives on competition for the attention of the rural population for their products and appropriate their purchasing powers. The marketing method should be to educate the village masses on the real virtues of the product without indulging in hyper tones and promote consumerism. Years of colonial commercialism left the rural areas and villages empty of jobs and economic growth. 14. Product profile The two key factors that facilitate rural revival are: the Product Profile and the Marketing Method. like health. products that deliver good value to the rural population at a price that are within the reach of their meager purchasing power. was conceived as a Mission to preach and practise self-reliance. some even detrimental to the health and welfare of the rural values. Therefore to adopt .34 Crores Turnover.39 % Growth and 66. Market can never be made a master. as a forum for creating wealth and achieving its fair distribution. food. i.45 lakhs New Jobs The Soft Hearted Giant KVIC has now beaten the best among the consumer giants in size and proved that growth can be achieved by fulfilling the national goal of generating village prosperity sustained with productive employment. Many life style products that are contradictory to the local ethos and culture are imposed upon the population using high decibel advertising and ³celebrity coolies´ hired at exorbitant hourly rates to mislead the innocent population for product of false values. 200 crore worth and 60 year old ³celebrity collie´ is hired. Therefore the prime consideration to determine the product profile should be the concept of ³The Value for Money´. The Mission Mode KVIC. but should be the servant of the society. with an exorbitant fee. A healthy market must create economic activity to satisfy the prime social objective of serving the community.e. The spirit of freedom movement and the Gandhian emphasis on people centered economic philosophy gave birth to KVIC as a real hope to millions in the villages. The product profile must suit the need and life style of the rural population that will raise their standard of living and general well±being. But the mission needed up-grading to meet the current social needs and economic reality. In one instance a Rs.
setting example for corporate philosophy for developing the rural economy. socks and other winter wear. briefcases. wall hanging. Fibre: Fibre utility items are made out of sisal banana. This is in addition to the rising trend in export Khadi and Village industries products to various countries in Europe. KVIC with its pioneering surge in this area is now playing a prominent role. Some of the products include bags. The Example ³Growth with a human face´ is the need of the time. It is not the one time handout that eradicates poverty but gainful employment. Silk Khadi and Polyvastra Khadi can be converted into shirting and sarees. Export The new dimension that is being added is the link with South Africa to develop and promote Khadi and village products in South Africa and eventually the rest of the Africa eventually. Unfortunately there is no mechanism to screen these activities in the interest of the society. shoes. attractive readymade garments etc. IITs to design and to develop products and processes that suit the economic and social need of the general population of the country . especially for India where majority pf people live in the villages and live under the threat of poverty. jewel bags. table mats. Poverty erodes the foundation of democracy. purses.corruptive means of pushing products of little or no value to the rural population is a social crime. . The KVIC approach has proved that the rural industry can be modernized without loosing the sight of the need to promote efficiency. Employment and Efficiency Employment is the essence of living. but the success of economic planning is the creation of employment while promoting efficiency. Cotton Khadi is 100% cotton. hand woven and hand spun and has a great demand abroad. Leather: The leather product range includes sandals. Silk Khadi comes in different varieties. Wollen Khadi items consist of sweaters. situational development with local prosperity is the economic salvation of the nation. vanity bags. palm and other fibres. America and Far East. KVIC has now associated with a number of major National Institutes like NID. blankets. woollen. The KVIC philosophy is geared to ensure that products it introduces have the highest possible utility factor with the lowest possible price tag. silk and polyvastra Khadi. pineapple. PRODUCT RANGE OF KVIC Khadi: The products include cotton. which is the backbone of the nation. carpets. floor pot holders. baskets etc. µas they are where they are¶. mufflers. floor mats.
partition wall mats. pickles. Pottery and Stone wear items: These include clay articles. greeting cards.A. Papad and Masala: Papad and masala are in great demand both in India and abroad.Cane and bamboo: These include fancy utility articles like furniture. photo album etc. exports papad and masala in a large way to U.S.. Processed Fruit Products: Products like mango pulp. Hand-made paper: This product uses cloth rags and waste paper as raw material for production thus. Hand made paper products include stationery items like files. .. are exported in large quantity. handicrafts made of cane and bamboo. preserving the ecological system. juices. etc. Gulf countries and New Zealand. Honey: Honey is a natural sweet syrup collected by honey bees. especially to the Gulf countries where there is demand for canned foods. There is a good demand for incense sticks in India and abroad. water mark certificate and decoration materials. They are produced in the North eastern parts of the country. tooth powder and health tonics are produced. Incense sticks: Incense sticks are available in different varieties. U. fancy pottery items and terracota produced in rural areas. letter pads. sofa set. Herbal Products: A number of herbal products like herbal shampoo. Mahila Griha Udyog Lijjat Papad of KVIC. saving trees. visiting cards.K. How the exports begin Khadi and Village Industries Commission (KVIC) is planning to collaborate with Exim Bank of India with an initial investment of Rs5 crore. Honey can be procured from the forest or by installing colonies of bees and maintaining these in a systematic manner. tomato pulp. fancy bags. envelopes. The products are covered under the FPO (Food Product Organization) license.
Mr. Mr. which aims to boost KVIC s export potential. KVIC sets Rs. . By then foreign contributors will also be invited. will be generated through equity. KVIC's export earned around Rs39 crore and this is expected to touch Rs300 crore in the next five years. L G Israni. Mr. This joint venture will help it to promote and enhance exports. Jt. KVIC has 7050 sales outlets. 1000 crore export target for next 4 years From left. In 2004-05. Sources say that within four years this investment will be nearly Rs100 crore. KVIC. Jai Shankar Mishra. KVIC.The Rs1crore of the funds for this project. Director. while the rest will be investment by financial institutions. CEO. Experts opine that this move is something that was necessary for KVIC as it is an organization that basically focuses on domestic market. has its presence in 3 lakh villages and employs 82.77 lakh people. G K Ghosh.
On how to raise our exports of honey to EU. Admiring the role of khadi and village industries in providing gainful employment to poor people and catalyzing overall economic development of the rural areas. of which. FIEO and KVIC should jointly organise seminars and buyer-seller meets in India as well as abroad. Dhawan. Referring to beeswax. EU s honey consumption was estimated at over 305 thousand tones. During 2005.CEO. Director General. Dr.." he said. Director.Dr. Deepak Tyagi. "Indian honey exporters can seize the opportunity but they have to be careful towards meeting quality standards. and Dr. Dhawan. FIEO(NR). blending and packing and then supply to specialty stores. He advised the exporters to seek recognition as status houses for which an SSI unit needs to achieve only 50% of the prescribed minimum export value. 85% was direct consumption. Dhawan said that cosmetics and pharmaceutical industries accounted for approximately 60% of the total consumption of the product. KVIC(CZ).5 kg each." was jointly organized by FIEO and Khadi & Village Industries Commission (KVIC) at New Delhi on 24 March. EU imported beeswax worth 22 million for which China. in Spain at 1 kg and in UK and France at 0. industrial users etc. he said. added Dr.2 kg. A seminar on "Export Promotion of Khadi & Village Industry Products. Chairman. Dhwan said that European Union consumed over as much as 22% of the total global honey production. FIEO informed the participants about the incentives available under Foreign Trade Policy for export of khadi and village industries products. Mr. Dr. Dr. Dr. Mr. . Country-wise. Dr. The other large suppliers to EU were Central African region. Ajay Sahai. Director General. FIEO. During the year 2004. R K Dhawan said that the seminar intended to deliberate on how these industries could be better connected with the global market. Dhawan felt that in order to promote exports of these products.. having a share of 43%. Member KVIC(NZ). Ramdas Sharma. was the largest supplier from developing countries.the two common products of the khadi and village sector . Dhawan suggested that we should adopt African system where individual honey producers pool their products with the export cooperatives which in turn export honey to EU in bulk. Reflecting on the global market scenario for products like honey and beeswax .. certification norms and legislative requirements. R K Dhawan. Mr. Ajay Sahai. Argentina and Vietnam. Dhawan informed that import of honey in EU from China was banned in 2002 and from Brazil in 2006. The importers in EU do the processing. wholesalers. FIEO s Northern Region Chairman Dr. KVIC. per capita consumption of honey in Germany stood at around 1. said Dr. he added.
From this platform. Ram Das Sharma. minimising forex risks. which expects millions of people from abroad. He wished to see each spinner getting Rs. They also suggested the need for branding of "Khadi" which they felt could receive quicker acceptance in foreign market. CEO. Dr. in international market.1000 Crore for KVI products during the next four years. sensitising KVI institutions towards exports etc. Member. Senior members from KVIC Dr." "natural. KVIC. Sengupta.K. He suggested propagating the strengths of KVI products like "handmade. EX-Dean. Mishra announced a challenging export target of Rs." "ethnic" etc.Mr. Member. suggested focusing on price. stressed on branding as an effective tool for penetrating international market. Mishra. He identified gifts and souvenirs as the two emerging product segments where KVIs could focus. Northern Zone highlighted the need for promoting other products like handmade paper in foreign markets.S. promotion. He saw a huge market for KVI products during upcoming Commonwealth Games at Delhi. J. Other presentations were made on topics like opportunities for khadi and village industry products in international market. Deepak Tyagi. IIFT.100-150 per day. Mr. distribution and market segmentation through proper positioning of KVI products instead of trying to compete with the organized sector. Central Zone and Mr. . A. Speakers from ECGC spoke about the insurance covers available against default in payment by buyers. sourcing international buyers through internet. Speaker from SBI shared the tools available to manage forex risks.100 per day and each weaver getting Rs.
200. A honey set consisting of wild basil honey (200 gm). almond oil (10 ml). Each gift pack of herbal essences and cosmetics will contain literature highlighting the ecofriendly nature. KVIC has already conducted commercial trials of these gift packs in many countries and the response has been encouraging. vetiver-khus oil (15 ml) and lemon grass oil (15 ml) will. sandalwood facepack (50 gm). orange honey (200 gm).625.khadibhawandelhi. preservative.com will also be launched on Gandhi Jayanti. A set of three herbal oils like sandalwood oil (15 ml). jasmine absolute oil (15 ml). khadi-polyester pants and khadi-gabberdine pants will also be introduced in the domestic market. A new website.050 per set. however. A double thread woven muslin V-neck kurta will be priced at Rs 475 and a muslin kurta-pajama set at Rs 1. herbal bath oil (210 ml).000 per set.KVIC to launch `Khadi' for the export market After unveiling the `Sarvodaya' brand for the domestic market. The `Khadi' brand will be launched on October 2. be priced at Rs 1. vetiver-khus oil (15 ml). lavender oil (15 ml). herbal shampoo (210 ml). lichhi honey (200 gm) and honey with almond (175 gm) will be priced at Rs 430 per set. the healing.285 per set. Another gift pack consisting of six herbal essences and cosmetics like sandalwood oil (15 ml). fragrance and other properties of the products. cleansing. the Khadi & Village Industries Commission (KVIC) has decided to launch `Khadi' for the export market. A fine muslim Japanese gown set will be priced at Rs 1. . herbal exfoliating fruit scrub (100 gm). fine muslin shirt at Rs 1510 while a double threadwoven muslin shirt will be priced at Rs 616. mandarin oil (15 ml) and cinnamon and clove oil (15 ml) will be priced at Rs 2. www. neem and basil soap and a towel napkin is being priced at Rs 1. A gift box comprising nine items like herbal facewash (210 ml). Khadi jeans yarn.
000 per beneficiary per year. The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "Sales cum Study Tour " / Exhibitions/ Buyer Seller Meet etc. Shellac and Forest Products Export Promotion Council(SHEFEXIL). and Gujarat. The Department of Rural Development has now cleared 4 projects submitted by SHEFEXIL with100% Central Assistance.15.50 crore.per event. The project aims at increasing 50% guar seed production and guar gum export in 5 years.000/. Assistance for visits abroad shall be applicable only in case of visits organized and sponsored by KVIC. brochure. . 15. hand outs etc. The total cost of the project is Rs. The 4 special projects are:a) Proposal for Guar cultivation in Haryana. will be reimbursed 25% of the total approved cost with an upper ceiling of Rs. Cashew Export Promotion Council(CEPC). towards actual expenditure incurred on publicity in terms of bringing out product catalogue. Export Promotion Council for Handicrafts( EPCH) and Apparel Export Promotion Council ( AEPC). Six EPCs having the potential to create employment for women and the weaker sections of the society have been identified. Projects for Aam Aadmi The Ministry of Commerce has also been promoting the involvement of the Export Promotion Councils under the Department of Commerce in the special projects under Swarnajayanti Gram Swarozgar Yojana (SGSY) of Department of Rural Development. 14. Rajasthan. Pharmaceutical Export Promotion Council (PHARMEXIL). These are Council for Leather Exports(CLE). The details of the scheme are as follows:y y y y The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "International Exhibitions" will be provided 90% to and fro airfare by economy class. abroad. providing income of Rs. The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participation in "Sale cum Study Tour" abroad will be provided 90% to and fro airfare by economy class. Participation by individual units of their own shall not be considered for assistance.Various schemes for Exports Export Incentive Scheme As a part of persistent effort to boost exports in the KVI Sector it has now been decided to extend the benefit of 'Export Incentive Schemes' to REGP Units also both KVIC & KVIB's affiliated in addition to the KVI Institutions under the KVI Sector.
65 lakhs.1050 crore and the target for 2006-07 is Rs. Orissa. West Bengal and Andhra Pradesh. it is being grown mainly in Gujarat.000 beneficiaries. providing income of Rs. Apart from Rajasthan.11.14. The cheronjee fruits are considered as one of the delicious wild fruits. The project aims at increasing lac production and shellac export by 2011.84 crore. India s export of Guar gum for 2005-06 was Rs.e.000 per beneficiary per year. deep-rooted. d) Proposal for cheronjee cultivation in Amarwara region of Chhindwara district of Madhya Pradesh. The project aims at increasing cheronjee production by 1000 MT in India by 2011. .15. c) Proposal for lac cultivation in Patalkot and Chhindwara areas of Madhya Pradesh.000 per beneficiary per year. The cumulative impact will be 53. Haryana and Punjab. providing income of Rs. It is frequently found in dry mixed deciduous forests of Uttar Pradesh. The total cost of the project is Rs. Jharkhand.3.10. Orissa. The total cost of the project is Rs. The total cost of the project is Rs. India s export of lac for 2005-06 was Rs. The project aims at increasing the lac production by 4. Andhra Pradesh and Chattisgarh. Bihar.165 crore. The fruits of Buchanania lanzan are known as Achar whereas the seeds are known as cheronjee and regarded as substitute for almonds. 5300 self help groups (SHGs) across 8 states of India. providing income of Rs. Lac is in fact the parent of modern plastics. Maharashtra and Orissa.Guar is a drought-tolerant warm weather.500 per beneficiary per year. Madhya Pradesh . It grows best in sandy soils and needs moderate.75 lakh kgs in India by 2011. The proposed initiatives of SHEFEXIL will have a high social impact. Maharashtra. The other identified five EPCs are in the process of finalizing their project reports. Chattisgarh. Over 90% of Indian lac comes from the States of Bihar. intermittent rainfall with lots of sunshine.1275 crore. i. Madhya Pradesh. annual legume crop.159 crore and the target for 2006-07 is Rs. India accounts for 80% of the total Guar produced in the world and 70% is cultivated in Rajasthan. West Bengal.15. b) Proposal for increasing lac cultivation in West Bengal. Lac is the resinous secretion of a kind of almost microscopic tiny inset popularly known as Laccifer lacca.00 crore. It grows well in soils of low fertility in the arid and semi-arid areas of the tropics and sub-tropics where rainfall is summer-dominant.
2 Name of Secretary/Proprietor or contact person along with Phone/Fax. INSTITUTION PROFILE: 1 Name of the Institution/REGP Unit with detailed postal address along with phone/fax numbers and e. DETAILS OF EXPORT INCENTIVE CLAIM: . QTY EXPORTS VALUE COUNTRY III.FORMAT FOR SUBMITTING QUARTERLY EXPORT INCENTIVE CLAIM I./Mobile No. PRODUCTION AND EXPORT FIGURES OF LAST THREE YEARS ITEMS YEAR ITEM PRODUCTION QTY VALUE ITEM. 3 Whether directly aided by KVIC/KVIB 4 For REGP Units please provide details of registration.mail ID. 5 IEC /RBI Code II.
INVOICE NO. forms/Shipping Bills Whether Bank Certificate attached For REGP Units please provide details of registration. 5% OF FOB REALISATION FOREIGN CURRENCY EQUIVALENT INR IV. Whether last years audited balance sheet attached V. DECLARATION: I solemnly declare that all particulars furnished above are true to the best of my knowledge and I shall be solely responsible for any wrong information provided by me. . Item Whether Enclosed or Not 1 2 3 5 Copy of G. Signature of Secretary\Proprietor Recommended and countersigned State/Regional Director. MANDATORY DOCUMENTS: SL. INVOICE DATE FOB VALUE EXPORT REALISATION GR NO.SL. CKVI.R.
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