What are the main functions of Khadi and Village Industries Commission (KVIC)? Do you agree with the view that it has been successful in altering the notion that organized retail is a killer of smaller traders? Discuss.

Published: April 24, 2017

KVIC is a statutory body established under KVIC Act, 1956. Its main functions include:

  1. To plan, promote, organize and implement the programmes for development of Khadi and village industries in rural areas.
  2. Creating and managing reserves of raw materials and supplying them to producers, creating common service facilities for processing of raw material and semi-finished goods.
  3. To promote sales and marketing of Khadi Products.
  4. To encourage and promote research in the production techniques and equipments in Khadi Industries.

To carry out its objectives, KVIC is authorised to establish separate organizations under its banner.
According to a recent report in Times of India, the spinning, weaving and garment making units and other village industries under the aegis of Khadi and Village Industries Commission have notched up a total turnover of Rs. 50,000 crore. This is possible mainly because of efforts and marketing strategies adopted by KVIC. For example, KVIC provides its own nationwide brand to a range of small and obscure firms and allows them to sale their goods through organized retail chain of the commission. It gives them physical retail space to interface with consumers. Small producers are not cheated in sale of their products. Further, in recent times, the KVIC has also provided some market sophistication helping the small producers come up with appealing packaging and improved quality.

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