Marketing

Beating Covid blues, Khadi records highest ever turnover in FY 2020-21

The innovative marketing ideas diversified product range of Khadi and Village Industries Commission, scaled up local production and paved the way for growth
Beating Covid blues, Khadi records highest ever turnover in FY 2020-21
Beating Covid blues, Khadi records highest ever turnover in FY 2020-21

Beating the blues of Covid-19 pandemic, Khadi and Village Industries Commission (KVIC) has recorded its highest-ever turnover. In the year 2020-21, KVIC registered a gross annual turnover of Rs. 95,741.74 crore, as compared to Rs. 88,887 crore turnover in 2019-20, thus, registering an increase of 7.71 percent.

KVIC’s record performance in 2020-21 assumes great significance as production activities remained suspended for more than three months during the nationwide lockdown announced on March 25, 2020. During this period, all Khadi production units and sales outlets too remained closed that severely affected the production and sales. However, the innovative marketing ideas diversified KVIC’s product range, scaled up local production and paved the way for Khadi’s successive growth.

Compared to the year 2015-16, the overall production in Khadi and Village Industry sectors in 2020-21 has registered a whopping growth of 101 percent while the gross sales during this period increased by 128.66 percent.

According to KVIC, a host of initiatives like launch of Khadi e-portal, Khadi masks, Khadi footwear, Khadi Prakritik paint and Khadi hand sanitisers, setting up of a record number of new PMEGP (Prime Minister Employment Generation Programme) units, new SFURTI (Scheme of Fund for Regeneration of Traditional Industries) clusters, Government’s push to ‘Swadeshi’ and KVIC’s historic agreements with paramilitary forces for supply of provisions increased the turnover of village industry sector during the pandemic. Compared to the production of Rs. 65,393.40 crore in 2019-20, the production in village industry sector increased to Rs. 70,329.67 crore in 2020-21. Similarly, in FY 2020-21, the sales of village industry products stood at Rs. 92,214.03 crore as compared to Rs. 84,675.29 crore in 2019-20.

The production and sales in the Khadi sector, however, slightly declined as spinning and weaving activities across the country took a major hit during the pandemic. The overall production in the Khadi sector in 2020-21 was recorded at Rs. 1904.49 crore as compared to Rs. 2292.44 crore in 2019-20, while the overall Khadi sales stood at Rs. 3527.71 crore as compared to Rs. 4211.26 crore in the previous year.

Vinai Kumar Saxena, Chairman, Khadi Village Industries Commission said that during the Covid-19 pandemic people responded enthusiastically to the calls of ‘Aatmanirbhar Bharat’ and ‘Vocal for Local’. He said that during this period, KVIC’s main focus was to create sustainable employment for artisans and unemployed youth. Faced with economic distress, a large number of youth took up self-employment and manufacturing activities under PMEGP which increased the production in the village industry sector. At the same time, the sales of Khadi and village industry products grew significantly.

Read more: Mahindra launches new range of rice transplanters for Telangana farmers

RuralMarketing.in is now on Telegram. Click here to join Rural Marketing on Telegram and stay updated with the latest news and updates on rural business and economy.

0 Shares
The Changing Face of Rural India