(The Gist of PIB) Atma Nirbhar in Agarbatti Production

[August-2020]

Union Minister for MSME has approved a unique employment generation program proposed by Khadi and Village Industries Commission (KVIC) to make India Atma Nirbhar in Agarbatti production.

The program named as “Khadi Agarbatti Atma Nirbhar Mission” aims at creating employment for unemployed and migrant workers in different parts of the country while increasing domestic Agarbatti production substantially. The pilot project will be launched soon.
The scheme is designed by KVIC on PPP mode. Under the scheme, KVIC will provide Automatic Agarbatti making machines and powder mixing machines to the artisans through the successful private Agarbatti manufacturers who will sign the agreement as business partners.
KVIC will provide a 25% subsidy on the cost of the machines and will recover the remaining 75% of the cost from the artisans in easy installments every month. The business partner will provide the raw material to the artisans for making Agarbatti and will pay them wages on job work basis.
Cost of artisans’ training will be shared between KVIC and the private business partner wherein KVIC will bear 75% of the cost while 25% will be paid by the business partner.

The current consumption of Agarbatti in the country is approximately 1490 MT per day; however, India’s per day production of Agarbatti is just 760 MT. There is a huge gap between the demand and the supply and hence, immense scope for job creation.