Khadi producers long wait finally over, government move to ease exports

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Published: November 6, 2019 7:24:01 PM

Trade, Imports, Exports for MSMEs: Commerce ministry, in order to exclusively categorise khadi products in exports, issued a Harmonized System (HS) code to separate from the general textile products.

Khadi and village industries turnover stood at close to Rs 75,000 crore in FY19.

Trade, Imports, Exports for MSMEs: Commerce ministry, in order to exclusively categorise khadi products in exports, issued a Harmonized System (HS) code to separate from the general textile products. HS code is a six-digit identification code developed by the World Customs Organization and is used by customs officers to allow products to cross international borders. Khadi and Village Industries Commission (KVIC) Chairman Vinai Kumar Saxena, in a statement by MSME ministry on Wednesday, said because Khadi didn’t have its exclusive HS code earlier, the export data for khadi used to come under the textile head. The HS code will help in planning export strategies, he said.

Even though products made by khadi and village Industries are eco-friendly and natural and enjoy demand in the international markets for which the government had also given Export Promotional Council Status to KVIC in 2006, the export of khadi products was tough to categorize and calculate due to lack of an exclusive HS code, according to the ministry. The significant development comes amid the government’s bullish stance on the growth of khadi and village industries that saw close to Rs 75,000 crore turnover in FY19.

Also read: MSME NPAs on the rise: Nitin Gadkari alerted over Gujarat’s small business loans situation

“Today we have a good turnover in handloom, handicrafts, and village industries,” MSME Minister Nitin Gadkari had said at an event last month. The government intends to double the turnover along with increasing employment potential. KVIC had in September this year proposed setting up of design houses called the National Design and Product Development Centres for Khadi institutions to make trendy khadi designs to appeal to the market. Gadkari had earlier urged the private sector to promote Khadi sector that houses a large number of MSMEs apart from assuring support in terms of reducing the cost of capital.

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