WHY IN NEWS?

The Union Government approved Khadi Agarbatti Atma Nirbhar Mission on August 2, 2020, to generate employment and make India self-reliant in agarbatti production. This mission aims at handholding artisans and supporting the local Agarbatti industry.

ABSTRACT

  • Union Minister for MSME, Nitin Gadkari approved the unique employment generation scheme, which was proposed by Khadi and Village Industries Commission (KVIC) to help India become AatmaNirbhar in Agarbatti production.
  • The Khadi Agarbatti AatmaNirbhar Mission will help create employment for a large number of unemployed and migrant workers in different parts of the country. The proposal was submitted for the approval of the Ministry of MSME in July.

BACKGROUND

The Khadi Agarbatti AatmaNirbhar Mission (KAAM) has been launched mainly due to the import restriction imposed on raw Agarbatti and an increase in import duty on Bamboo sticks.

Currently, the consumption of Agarbatti in India stands approximately at 1490 MT per day. However, India’s per day production of Agarbatti is just 760 MT. This shows that there is a huge gap between the demand and the supply and hence, immense scope for job creation.

KEY HIGHLIGHTS

  • The Khadi Agarbatti Atma Nirbhar Mission has been designed by the Khadi and Village Industries Commission on PPP mode.
  • The business partners will provide the artisans with the raw material for making Agarbatti and will pay them wages on a job work basis.
  • Moreover, the KVIC will provide powder mixing machines and automatic Agarbatti making machines to the workers through the successful private Agarbatti manufacturers, who will sign the agreement as business partners.
  • The KVIC will only procure locally-made machines by Indian manufacturers to encourage local production. The Commission will provide 25 per cent subsidy on the cost of the machines and recover the remaining 75 per cent of the cost from the workers in small instalments every month.
  • After recovering 75 per cent cost of the machines, their ownership will automatically be transferred to the artisans.
  • Each of the automatic Agarbatti making machines is expected to make approximately 80 kg Agarbatti each day, which will provide direct employment to 4 persons.
  • This means that every artisan will earn at least Rs 300 per day, while each artisan working on the powder mixing machine will get a fixed amount of Rs 250 per day.

 SIGNIFICANCE

The Khadi Agarbatti AtmaNirbhar Mission aims at

  • Creating employment for unemployed and migrant workers in different parts of the country.
  • Creating sustainable employment and support private Agarbatti manufacturers to increase their Agarbatti production without any capital investment.
  • Boosting domestic Agarbatti production.

ABOUT ATMANIRBHAR MISSION-

The AtmaNirbhar Bharat Abhiyan (or Self-reliant India Mission) was launched by the prime minister of India on 12 May 2020, with an economic stimulus package — worth Rs 20 lakh crores aimed towards achieving the mission.

The Self-Reliant India Mission aims towards cutting down import dependence by focussing on substitution while improving safety compliance and quality goods to gain global market share. The Mission focuses on the importance of promoting “local” products.

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