In the fellowship program, I got an opportunity to do sectoral study about “Khadi” with my partner Mr. Pramod Kumar. So, we both visited the khadi unit located at Bengeri in Hubli. The Khadi sectoral study has create quite interest and curious in me. Now in this page we are sharing our observations and analyzed the interventions required for promotion of Khadi.
SUB SECTOR APPROACH FOR KHADI INDUSTRY
We have used subsector approach to the analysis of Khadi Industry. 70 % of the artisans involved in the process of khadi production are women. Khadi is eco fabric. The process involves no environmental pollution and is extremely eco friendly. Khadi helps in supporting destitute, helpless rural women folk as they can work independently and earn their living.
Khadi production is a labor intensive industry, with a scope of providing more employment with an investment of a very meager capital especially in the rural areas. It enables full development of locally available raw materials and human resources.
The salient features of khadi:
· Hand spun and hand woven uses no generated power.
· Hand spun yarn renders a soft character to the fabric that is comfortable to wear.
· Durable fabric.
· Subtle texture in the fabric owing to hand spinning and hand weaving.
· Fine fabrics up to 5000s count are available…. Which are otherwise impossible to weave in mechanized looms?
SUB SECTOR MAP OF KHADI INDUSTRY
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Legend
= enterprise boundary
———– = divisions between functions within the firm
= firms using identical technology
Key informants interviewed: manager, accountant, artisans, labors and stockiest.
FUNCTIONS: Processes in Khadi Production:
1. Hand picking of the cotton bolls - Handpicked cotton bolls, collected for further process
2. Ginning- The process of separating fibers from the cotton seeds. It is done by hand using a sharp comb like object like a fish bone which also removes the larger fragments of trash. The other method involves the use of small wooden device with toothed rollers.
3. Cardings – The mechanized carding mission consists of a very fine wire that separates the fibers almost individually and then passed through moving steel bars that remove the very short fibers and tangles. The carded material is then collected as slivers.
4. Roving & spinning - The drafted slivers are further thinned out and twisted slightly at the same time to strengthen it. The product of this process is called roving which is directly spun into produce yarn, during which the diameter of the yarn is controlled and calculated. Rovings are wound onto bobbins ready for spinning. The spinning of fiber into yarn is the most emblematic of textile production. Here the yarn is spun using a spinning wheel. Although most of the spinning is done on the new model charaka (NMC), in some remote villages the traditional and spinning wheel is still being used. The spun yarn wound into reels of thousand meters each. In order to organize and systematize the spinning process, the spinning is done by spinners at the spinning centers nowadays.
5. Sizing – The process involves starching or application of sizing solution to the warp prior to warping or after warping to resist the weaving abrasion.
6. Weaving - Is done on a pit loom, especially with a fly shuttle, which is one of the most ancient type of looms
7. Finished Product ready for market
INFORMATION ABOUT THE KHADI INDUSTRY
Participants: Most of the functions are brought under the domain of khadi units. The degree of vertical integration is high. High volume is handled by khadi units. The raw material for khadi units is supplied by Khadi and village industry commission (KVIC) in the form of slivers. Most of the production units consist of women. The price is controlled by KVIC. A cost chart is prepared by KVIC for every two years with consulting with khadi units’ management board.
The Central and State Governments provide rebates (discount) for khadi products for the consumers. It also announces the bonus for khadi workers every year.
Channel: Only one type of channel exists in this sector since a khadi unit controls all the functions.
Technology: All the khadi units use same type of technology. There is no much change in the technology since it was started. The spinning wheel is modified into new model charaka.
Enterprise numbers: Presently there are 250 khadi units operating in Karnataka.
Price margins: Khadi units operate under no loss – no profit principle. There is uniformity in price of khadi products. Khadi units are not allowed to make profits and run as business organizations. Prices are fixed, based on the input and maintenance cost.
Gender: 70% of artisans involved in the process of khadi production are women.
Returns to labor: A return to labors is less than compared to other sectors.
Sales value: Khadi units have a higher operating efficiency when sales are high. They also get rebates from the government.
Inventory holdings: Raw material inventory are held by KVIC where as the finished khadi products are held by khadi units.
Employment: It is a labor intensive industry provides more employment with less capital especially in rural areas.
ANALYSIS: The demand for khadi is increasing but as it is a labor intensive industry, it is facing many challenges. Less effort has been made in the technological intervention since it is hand spun and hand woven. Since the primary object is not to make the profit, the operating efficiency must be high. The labor returns is not attractive as other sectors and is facing shortage of trained human resources. khadi units are unable to forecast the demand and many times production units are stopped due to unavailability of raw materials. The policies and regulatory environment is controlled by the Government. The rebates and bonus announced by the Government are reaching one year late which makes khadi units vulnerable. All the khadi units come under the domain of KVIC and KVIC controls the price policy. All khadi units are interdependent and interrelated. Khadi products are sold only in outlets certified by KVIC. There is no enrollment of private sectors. But khadi industries are also facing piracy problems as uncertified outlets are selling the products in the brand name of khadi.
Consequences:
· Decreasing in the number of khadi units.
· Running a khadi industry is like walking on a tight rope.
· Shortage of trained man power.
· Difficult to adopt new technology.
· Lack of flexibility in running of khadi unit
· Lack of forecasting demand.
· Non availability of input supply on time
· Failure to attract mass consumers
PROSPECTS FOR GROWTH:
Khadi is the only fabric where the play of texture is so unique that no two fabrics will be absolutely identical, thus lending it exclusivity and inimitability in terms of feel and texture.
Khadi is among the most progressively modern of all textiles, one that not only has desirably material possibilities but also consonance with the native ecology and sensitivity to the human condition that sustains it.
It advocates that fact that even in the post-industrial world; self-worth and self sufficiency are acknowledged as a compensation for human labor.
Today khadi is being used by top fashion designers in India and abroad in garments and accessories.
INTERVENTION REQUIRED ACHIEVING THE POTENTIAL:
Since khaki industry works under no profit- no loss model, it can be consider as a non-profit organization. It requires larger supporting system to develop and sustain it. Khadi industries are facing shortage of trained man powers and the labor returns are also less. This drawback can be overcome by the collaborating with donor agencies and using their financial assistance to develop trained entrepreneurs and with good labor returns. Khadi industries are more dependent on government rebates and since government rebates aren’t reaching at needed time, donor agencies can also contribute in this aspect.
Due to lack of data base system and net working in inventory management, they are not able to work to their fullest extent. Better inventory and scientific demand forecasting using modern information technology can help the industry to work more effectively and efficiently.
Report prepared by: Mr. Pramod Kumar and Mr. Rajendra Prasad.
Date: 20-08-08.
