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CSR: Enormous Hike For Khadi Artisans

Khadi artisan

A lot has been said and done to save and promote khadi, the “fabric of the nation”. A few months back, the Ministry of Commerce and Industry started chalking out strategies for positioning khadi as an exclusive Indian brand across the world. Prime Minister Narendra Modi has been a strong campaigner with his slogan, “Azaadi Se Pehle, Khadi for Nation; Azaadi Ke Baad, Khadi For Fashion”. Continuing this positive trend is another development that spells good news for khadi artisans. The Union Ministry of Micro, Small and Medium Enterprises (MSME) has approved a proposal by the Khadi and Village Industries Commission (KVIC) to increase the wages of artisans by over 36%.

With this, the wages will be increased from Rs 5.50 per hank previously to Rs 7.50 per hank. This proposal for increase in wages to Khadi artisans, along with payment of government subsidy Modified Market Development Assistance (MMDA), will be implemented with effect from August 15, 2018.

What this means

  • Under the MMDA programme, 30% of the prime cost is paid to the Khadi institutions as production subsidy.
  • Out of this 30%, 40% goes to khadi artisans as wage incentives and the remaining 60% goes to the Khadi institutions.
  • The wage incentives are paid by Khadi and Village Industries Commission directly to the accounts of the khadi artisans through direct benefits transfer. So, an artisan spinning minimum 20 hanks in a day will now start earning INR 202 per day, including his wages and government incentive. Most of the artisans today spin more than 20 hanks per day.

Call For Khadi

The enhancement in wages is expected to draw youth towards taking up spinning as a profession. This increase will also attract new and younger artisans to Khadi, who were earlier doubtful about their income comparing it to the wages given to the daily wagers under Mahatma Gandhi National Rural Employment Guarantee Act.

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The CSR Journal Team



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