Mega Boost to Cottage & Village Industries Sector

India has taken the first big step towards becoming Aatmanirbhar (self-reliant). Immediately after Prime Minister Shri Narendra Modi’s call for encouraging local products, Home Minister Shri Amit Shah has made it mandatory for all canteens and stores of paramilitary forces to sell only “Swadeshi” products procured from Khadi and Village Industries Commission (KVIC). The move will open great employment opportunities for farmers, unemployed youths and lakhs of people already engaged with cottage and village industries.

An order to this effect has been issued by the Ministry of Home Affairs on 15 May 2020 that will come into force from June 1, 2020. Once it is enforced, only Indian products procured from KVIC will be sold through Central Armed Police Forces (CAPF) canteens. The decision will also positively impact the production and sales of KVIC.

“The Khadi and Village industries Commission with 17 products has been registered with Kendriya Police Kalyan Bhandar (KPKB)…Now the Ministry of Home Affairs, Government of India, has decided that only swadeshi products will be sold through KPKB Bhandars w.e.f 1st June, 2020. In view of the above, all Master Bhandars may place their demands directly to KVIC,” the order read.

KVIC Chairman Shri. Vinai Kumar Saxena has lauded the decision of Home Minister saying this will provide a big boost to the cottage and village industries sector apart from the MSME units. “This decision will directly benefit lakhs of people engaged with manufacturing of various products of village industries.  With this order over 10 lakh personnel of the various paramilitary forces will be added to KVIC’s consumer base. As a goodwill gesture, the KVIC has also decided to supply products to CAPF canteens at a small margin of 3% as against the 20% margin in other cases,” Saxena said.

Notably, there are 20 master bhandars of these forces across the country with an annual turnover of over Rs 1800 crore. The KVIC is likely to get major share of the total turnover. At present, KVIC has registered 17 products for supply to CAPF canteens. These include khadi national flag, eatables like honey, pickles, edible oils, agarbatti, papad, amla products,  cotton towels etc Further, a list of 63 new products like Khadi clothes,  woollen, cosmetics like herbal oil, shampoo, soaps, face wash, tea, coffee and others has been submitted to CAPF canteens to be included in the supply list at these stores.