Context: Recently, the Ministry of Micro, Small and Medium Enterprises has approved a programme for the benefit of artisans involved in manufacturing of Agarbatti under the Gramodyog Vikas Yojana.

Key Points

• Under the pilot programme, each targeted cluster of artisans will be supported with about 50 Automatic Agarbatti making machines and 10 mixing machines.
• Accordingly, a total of 200 Automatic Agarbatti making machines and 40 mixing machines will be provided to the artisans.
• Also, the Khadi and Village Industries Commission (KVIC) will provide training and assist artisans working in this area, with Agarbatti manufacturing machines.
• The programme aims to enhance the production of ‘Agarbatti’ in the country and create sustainable employment for the traditional artisans, by providing them with regular employment and an increase in their wages.
• It is also expected to boost the domestic Agarbatti industry and reduce its imports.

Steps taken by the government to boost the indigenous production of ‘Agarbatti’:

• Placing the ‘Agarbatti’ item from “Free” trade to “Restricted” trade in the import policy.
• Enhancing the import duty from 10% to 25% on ‘round bamboo sticks’ used for the manufacturing of Agarbatti.

About Gramodyog Vikas Yojana

• Gramodyog Vikas Yojana is one of the two components of Khadi Gramodyog Vikas Yojana which aims to promote and develop the village industries through common facilities, technological modernization, training etc.

Components of Gramodyog Vikas Yojana

• Research & Development and Product Innovation: R&D support would be given to the institutions that intend to carry product development, new innovations, design development, product diversification processes etc.
• Activities of existing dedicated verticals of Village Industries: This includes Agro Based & Food Processing Industry, Mineral Based Industry, Handmade Paper, Leather & Plastic Industry among others.
• Capacity Building: Under the Human Resource Development and Skill Training components, exclusive capacity building of staff as well as the artisans.
• Marketing & Publicity: The village institutions will be provided market support by way of preparation of product catalogue, Industry directory, market research, new marketing techniques, buyer seller meet, arranging exhibitions etc.