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Q. Khadi and organised retail: With the example of Khadi, discuss the need of an organised retail chain in every sector.
May 03, 2017 Related to : GS Paper-3

Ans :

Introduction-

Though most industries have experienced weak growth in the year 2016-17, but textile and non-textile segments have shown robust growth. For the same financial year, the Khadi and Village Industries Commission (KVIC) have notched turnover of about Rs 50,000 crore through its spinning, weaving and garment-making units and other village industries. 

Issue-

  • The above turnover of KVIC reflects the potential of small-scale production as the catalysing power of organised retail and the support such a retail framework can provide to small producers.
  • But in India there is tendency of viewing organised retail as a killer of small traders.

Analysis-

  • Considering various recent examples, the organised retail have time and again showed it potential in India.  Hence instead of viewing organised retail as a killer of small traders, its potentials must be identified and made aware to all.
  • KVIC provides to the range of small and tiny enterprises, many of them run by women, under its ambit is organised retail. It gives their small, obscure brands the meta-branding of its own nationwide presence and assurance of authenticity. 
  • Similarly, it gives them physical retail space, to interface with consumers. It does not cheat small producers of their sale proceeds. These are vital functions of distribution and marketing that small enterprises struggle to manage on their own.
  • Hence, there is need of policy which recognises it as a great catalyst of decentralised production, and removes hurdles in its path, including restrictions on foreign direct investment.
  • Khadi is both hand-spun and hand-woven. Now there is need of making it diversify into fabrics made from naturally coloured and organically grown cotton. KVIC has shown it power in organised retail.

Conclusion-

The KVIC turnover for the year 2016-17 is impressive one and it has created far bigger market to Khadi products. It reflects the power of organised retail. Hence there is need of nation-wide policy of promoting organised retail chain in each and every sector, it will help small producers and gives value for their work.


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