Marketing Development Assistance (MDA)

5.1 Modified Marketing Development Assistance

Marketing Development Assistance (MDA) scheme was introduced by Khadi and Village Industries Commission in the year 2010-11 to encourage production and sale of Khadi.

The Marketing Development Assistance was revised as Modified Marketing Development Assistance (MMDA) from the year 2016-2017, and is calculated at 30 Percent of prime cost on Khadi production and is disbursed every quarter as follows:

1.

Incentive to Spinners/ Weavers

30%

2.

Incentive to Artisans

10%

3.

Production infrastructure and skill Development Training (for producing institutions)

20%

4.

Sales infrastructure including computerization (for producing institutions)

20%

5.

Market and sales promotion (for selling institutions)

20%

The Incentive of 30 Percent to the spinners and weavers and 10 Percent to the artisans enrolled in 66 Sarvodaya Sanghs and Tamilnadu Khadi and Village Industries Board are sent directly to the individual’s account through ECS by Khadi and Village Industries Commission every quarter. Disbursement details are uploaded in Khadi and Village Industries Commission’s website. Remaining 60 Percent (20 Percent each in Sl.No.3,4 & 5) is credited into the accounts of Sarvodaya Sanghs and Khadi and Village Industries Board by Khadi and Village Industries Commission for creating production infrastructure, Skill Development and development of marketing infrastructure facilities etc., by the Khadi and Village Industries Board as given below:-

Sl.No.

Year

Amount received from KVIC ( Rs.in lakh)

1.

2018-2019

210.43

2.

2019-2020

230.30

3.

2020-2021

77.91

Necessary guidelines are issued by Khadi and Village Industries Commission for implementing this scheme.

The Government of Tamilnadu also gives 20 Percent financial assistance on the production of Khadi as Marketing Development Assistance to all Sarvodaya Sanghs and Tamil Nadu Khadi and Village Industries Board. The State Government has raised the quantum of financial assistance to Sarvodaya Sanghs from Rs.15 Crore to 30 crore from the year 2017-18 and raised ceiling to Khadi Board from
Rs. 2 crore to Rs.4 crore from the year 2017-18.

5.2 Branding of Khadi Product

During the last year, the Government have sanctioned a sum of Rs.40.00 lakhs to do branding of Khadi and Village Industries products under Handloom Support programme to familiarize the Khadi products among the public.

5.3 Online Shopping

From the inception onwards, the Khadi and Village Industries Products being manufactured by the Board have been sold through our Khadi Krafts functioning across the State of Tamil Nadu.

With the advent of new technologies in the field of e-commerce as being adopted by Private players and also to manage inadequacy in staff strength, Tamilnadu Khadi and Village Industries Board have introduced On-line shopping for promoting the sale of “Khadi Kraft” products and Palm products in Tamilnadu. The official online website is www.tnkvib.org and www.tnkhadi.org.

5.4 Franchise

To popularize the “ Khadi Kraft” brand across Tamil Nadu and Puducherry and to take the Khadi products to large number of people and also to increase the sale, license was given on franchise model to use the Khadi Kraft Brand. These franchise outlets are functioning well.

The franchise outlets are situated in the following places.

  1. Sriperamputhur
  2. Kollihills
  3. Suchindram
  4. Kanchipuram