Saturday, April 09, 2011

The pride of India goes awry

After Irom Sharmila last year, Anna Hazare wins IIPM's 2011 Rabindranath Tagore Peace Prize of Rs. 1cr. To be handed over on 9th May

It was during the pre-Independence era that the movement of khadi manufacturing gained momentum under the guidance of Mahatma Gandhi. The movement of manufacturing and wearing khadi was aimed at dissuading Indians from wearing foreign clothes.

Gandhi once wrote: 'Swaraj (self-rule) without swadeshi (country made goods) is a lifeless corpse and if swadeshi is the soul of swaraj, khadi is the essence of swadeshi.' With these words of Gandhi, during the national struggle for freedom (Swadeshi and Non-Cooperation Movement), khadi became not only a symbol of revolution and resistance but also a part of the Indian identity.

No more rebate

The withdrawal of 10% rebate, which was given to the khadi industry around the year, and 20% that was given for 108 days a year to mark the Gandhi Jayanti, has left the local khadi industry in the lurch with many units facing an immediate closure.The government has decided to put an end to the rebate given to the khadi industry from April 1, 2010 onwards.The industry, which was highly dependent on the rebate, has been hit hard by the hurried decision.

Experts say that khadi and village industries in the country provide employment to a number of artisans. 'The government's move might render this workforce jobless in the near future,' an industry observer says. According to Khadi and Village Industries Commission (KVIC) members, a chain reaction has started in the rural khadi units ' no increment to the Sarvodaya Sangh workers, no daily wages to poor weavers, weavers moving to construction work etc. Opposition leaders raised the issue in Parliament, saying it is inappropriate and unfair on the part of the government to stop the rebate abruptly as this was introduced to promote the khadi industry, which was endorsed by Mahatma Gandhi himself.from bad to worse

The rebate was the lifeline for the industry as the clothes were being sold at 30% of cost, and undoubtedly, this will further push the sector towards extinction as this resource crisis gets worse. Sector experts say it's quite interesting that on one side, the government announced an allocation of Rs 400 crore for the khadi industry in the Union Budget 2010, and at the same time, it has done away with the rebate. At present, the government owes over Rs 450 crore to Haryana alone as rebate. Even bank loans, that were given at 4%, are now pegged at 12%, which makes it all the more difficult for the khadi units to survive. 'We shall continue doing the needful and live the Gandhian way in spite of all the opposition from the government and will fight for our cause,' says a store manager at Khadi Gramodyog in Delhi.

In order to promote market for khadi products, the government through KVIC brought in a policy of rebate on sale of khadi and khadi products till 2009-10. According to KVIC statistics, the khadi industry had a production of Rs 17,338. 87 crore as of 2008-09, a sales of Rs 22,748.19 crore and employment of 103.91 lakh. New schemes

The government is mulling to float a flexible scheme ' Market Development Assistance (MDA) ' as a replacement of the rebate on sales, which will be implemented in the next financial year. The scheme will provide financial assistance at 20% of production value on khadi and polyvastra, which will be shared among artisans, producing institutions and selling institutions in the ratio 25:30:50. It is believed that sales will be evenly spread throughout the year and further the institutions will have the flexibility to use the assistance in improving the outlets, products, giving incentives to customers.

Replying to a question in Rajya Sabha, Minister of State for MSME, Dinsha Patel, said that the existing scheme caused delay in paying incentives to the institutions. Under MDA, incentive would be provided immediately after production of the items, which will ease the working capital situation of the institutions by ensuring immediate liquidity, which would in turn, ensure timely payment to the artisans, ultimately benefiting the artisans.

According to the 2009-2010 report of the MSME, the value of khadi produced in the country fell from Rs 585.25 crore in 2008 to Rs 484.45 crore by December 2009. Over 80% of annual sales of khadi products are during discount season, while less than 20% of sales are during the remaining eight months. The khadi commission employs a million artisans out of which 80% are women. In order to show their protest, the Khadi Stock Ashrams in Haridwar protested in front of the shop, weaving khadi on the charkha, showing their resistance in Gandhian style.

Forlorn hopes

The grimmer portraits of Mahatma Gandhi, grungy and faded colours of the national flags are ignored by passersby that lay unnoticed for years at the Khadi Gramodyog Bhavan in Connaught Place (the central business district of Delhi), the somnolent air fills the place of its lost history and now even the purpose that it laid for years together, today hang broodingly while made-in-India flashes from one side. Naresh Kadyan, secretary general of National Khadi & Village Industries Board's Employees Federation, is running an online petition (change.org) that targets government to oppose these rebate cuts that make a common man suffer. At the time of filing the story, 132 people had signed the petition. He says, 'The withdrawal of rebate has hit the mission and due to lack of funds, activities will face huge financial crises. It would definitely make things worse, proper funding, monitoring and honest implementation is the need of the hour.'

Losing spirit

Khadi was introduced in 1920 as a political weapon and as the best instrument for giving concrete expression to the swadeshi spirit to boycott foreign goods. It is still being used as a political weapon but with a different approach. In those days, khadi rendered an opportunity to every man, woman and child to cultivate self-discipline and self-sacrifice as a part of the non-cooperation movement. However, all these spirits are dying with cultivation of corruption and selfish motives of the new India. On repeated attempts made by TSI to take official reaction on the issue, KVIC officials refused to comment. The khadi industry pleads for a major transformation today. As most of the politicians are shifting from khadi to linen clothes, there's no one left to cut a figure in the society for khadi.

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Marches Ahead in B-School Rankings...
IIPM Proves Its Mettle Once Again...
IIPM in sync with the best of the business world.....
IIPM BBA MBA Institute: Student Notice Board

An array of unconventional career options
Indian universities and higher education institutes seem to be caught in a time warp teaching things
Best Colleges for Vocational Courses in India
INDIA'S BEST COLLEGES, INSTITUTES and UNIVERSITIES

No comments: