KVIC sets Rs. 1000 crore export target for next 4 years
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From left, Mr. L G Israni, Director, KVIC; Mr. G K Ghosh, Jt. CEO; KVIC; Mr. Jai Shankar Mishra, CEO, KVIC; Dr., R K Dhawan, Chairman, FIEO(NR); Mr. Ramdas Sharma, Member KVIC(NZ);; Mr. Ajay Sahai, Director General, FIEO; and Dr. Deepak Tyagi, Director, KVIC(CZ). |
A seminar on "Export Promotion of Khadi & Village Industry Products," was jointly organized by FIEO and Khadi & Village Industries Commission (KVIC) at New Delhi on 24 March.
Admiring the role of khadi and village industries in providing gainful employment to poor people and catalyzing overall economic development of the rural areas, FIEO’s Northern Region Chairman Dr. R K Dhawan said that the seminar intended to deliberate on how these industries could be better connected with the global market.
Reflecting on the global market scenario for products like honey and beeswax - the two common products of the khadi and village sector - Dr. Dhwan said that European Union consumed over as much as 22% of the total global honey production. During the year 2004, EU’s honey consumption was estimated at over 305 thousand tones, of which, 85% was direct consumption, he said. Country-wise, said Dr. Dhawan, per capita consumption of honey in Germany stood at around 1.2 kg, in Spain at 1 kg and in UK and France at 0.5 kg each.
Dr. Dhawan informed that import of honey in EU from China was banned in 2002 and from Brazil in 2006. "Indian honey exporters can seize the opportunity but they have to be careful towards meeting quality standards, certification norms and legislative requirements," he said.
On how to raise our exports of honey to EU, Dr. Dhawan suggested that we should adopt African system where individual honey producers pool their products with the export cooperatives which in turn export honey to EU in bulk. The importers in EU do the processing, blending and packing and then supply to specialty stores, wholesalers, industrial users etc., he added.
Referring to beeswax, Dr. Dhawan said that cosmetics and pharmaceutical industries accounted for approximately 60% of the total consumption of the product. During 2005, EU imported beeswax worth 22 million for which China, having a share of 43%, was the largest supplier from developing countries. The other large suppliers to EU were Central African region, Argentina and Vietnam, added Dr. Dhawan.
Dr. Dhawan felt that in order to promote exports of these products, FIEO and KVIC should jointly organise seminars and buyer-seller meets in India as well as abroad.
Mr. Ajay Sahai, Director General, FIEO informed the participants about the incentives available under Foreign Trade Policy for export of khadi and village industries products. He advised the exporters to seek recognition as status houses for which an SSI unit needs to achieve only 50% of the prescribed minimum export value.
Mr. J.S. Mishra, CEO, KVIC, stressed on branding as an effective tool for penetrating international market. He wished to see each spinner getting Rs.100 per day and each weaver getting Rs.100-150 per day. From this platform, Mr. Mishra announced a challenging export target of Rs.1000 Crore for KVI products during the next four years.
Senior members from KVIC Dr. Deepak Tyagi, Member, Central Zone and Mr. Ram Das Sharma, Member, Northern Zone highlighted the need for promoting other products like handmade paper in foreign markets. They also suggested the need for branding of "Khadi" which they felt could receive quicker acceptance in foreign market.
Dr. A.K. Sengupta, EX-Dean, IIFT, suggested focusing on price, promotion, distribution and market segmentation through proper positioning of KVI products instead of trying to compete with the organized sector. He suggested propagating the strengths of KVI products like "handmade," "natural," "ethnic" etc. in international market. He identified gifts and souvenirs as the two emerging product segments where KVIs could focus. He saw a huge market for KVI products during upcoming Commonwealth Games at Delhi, which expects millions of people from abroad.
Speakers from ECGC spoke about the insurance covers available against default in payment by buyers. Speaker from SBI shared the tools available to manage forex risks.
Other presentations were made on topics like opportunities for khadi and village industry products in international market, sourcing international buyers through internet, minimising forex risks, sensitising KVI institutions towards exports etc.
