Revamped SFURTI scheme to boost Khadi industry

The Dollar Business Bureau The Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small & Medium Enterprises (MSME) on Sunday, organized an event aimed at promotion of traditional industries of India. A national workshop on revamping of ‘Scheme of fund for regeneration of traditional industries (SFURTI)’ was aimed at creating platform for interaction and knowledge sharing on cluster development. Speaking at the meet, the Union Minister of MSME, Kalraj Mishra announced that under the current five year plan, the Ministry would set up 800 SFURTI clusters to boost the Khadi and Village Industries (K&VIs). Stating that the modernization of Khadi and traditional industries is a key for development, the Minister hoped that the new measures will enhance the suitable opportunities in the field. While the scheme has been initially allocated with Rs 72.94 crore with a target to implement 75 clusters - 25 Khadi and 50 Village Industries, in KVI sector, the steering committee approved 79 clusters- 29 Khadi and 50 village Industries. Whereas, the revamped scheme for setting up of 800 clusters has been allocated with Rs 850 crore to cover four lakh artisans across the country. Under the old scheme, various initiatives like introduction of new model of Charka, which not only accounted for increased production, but also ensured increased quality products, along with resulting in rise of earnings. However, the newly revamped scheme will provide the enhanced market strategy, strengthened by the business cluster model, which would also increase the market scope. The government had also extended its support to the traditional industry by considering an export promotion council for KVIC, in a move to create overseas markets for the industry. According to the reports, the production and sales of Khadi has grown in last three years. While in 2011-12, 887.32 lakh sq.mts of Khadi cloth was produced which resulted in Rs 967.87 crore sales value, the production increased to 909.85 lakh sq.mts, generating a sales value of Rs 1,021.56 crore in 2012-13 and further increased in 2013-14 to 932.51 sq.mts of cloth generating a sale turnover of Rs 1,081.04 crore. The ready-made garments are one of the key items that usually account for more exports under Khadi, among other items. While in 2011-12, Rs 7.82 lakh of garments were exported with Oman being the main destination, the exports rose in 2012-13 to Rs 32.50 lakh with Malaysia and Singapore being the main supply destinations. In 2013-14, the exports of garments stood at Rs 20.15 lakh, with main export destinations being Kuwait, Oman, Canada, and the UK.    

This article was published on March 23, 2015.