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Published
Jun 18, 2021
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Khadi sales drop 16% in FY21, affected by pandemic

Published
Jun 18, 2021

Sales of handloom textile Khadi declined by 16% year-on-year in the 2021 financial year as the sector felt the effects of the Covid-19 pandemic. Village Industries goods, however, saw sales increase in FY21.

KVIC works to promote Khadi in India and abroad - Khadi and Village Industries Commission- Facebook

 
On Thursday, the Ministry of Micro, Small, and Medium Enterprises announced that overall Khadi sales totalled Rs 3,527.71 crore ($530.26 million) in the 2021 financial year which ended in March, the Press Trust of India reported. Overall production in the sector also declined as spinning and weaving activities across India were greatly affected by the coronavirus pandemic due to lockdowns decreasing manufacturing activity, a three-month hiatus, and workers falling ill among other issues. 
 
“The overall production in the Khadi sector in 2020-21 was recorded at Rs 1,904.49 crore as compared to Rs 2,292.44 crore in 2019-20, while the overall Khadi sales stood at Rs 3,527.71 crore as compared to Rs 4,211.26 crore in the previous year,” said the Ministry of Micro, Small, and Medium Enterprises in a statement, the Press Trust of India reported. 

Despite the drop in Khadi sales, the ministry’s Khadi and Village Industries Commission’s gross annual turnover increased to Rs 95,741.74 crore in the 2021 financial year compared to Rs 88,887 crore in the 2020 financial year. KVIC retails a range of Khadi products as well as locally made personal care goods and other items at its brick-and-mortar stores and online. 
 
KVIC’s increased sales were boosted by sales of village industry products, according to the ministry. The village industry sector reported sales of Rs 92,214.03 crore in the 2021 financial year up from Rs 84,675.29 crore in the 2020 financial year. 
 

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