The Union Ministry of Micro, Small and Medium Enterprises (MSME) has approved a proposal by the Khadi and Village Industries Commission (KVIC) to increase the wages of artisans by over 36 percent.
According to the proposal, the wages will be increased from Rs 5.50 per hank previously to Rs 7.50 per hank. Wage increase will be along with payment of government subsidy Modified Market Development Assistance (MMDA), will be implemented (with effect from August 15, 2018).
Under the MMDA programme, 30 percent of the prime cost is paid to the Khadi institutions as production subsidy. Out of this 30 percent, 40 percent goes to artisans as wage incentives and the remaining 60 percent goes to the Khadi institutions. These wage will be paid to the artist account, through direct benefits transfer.
For example, if an artisan makes 20 hanks in a day, he will get Rs 150 per day as wage at the rate of Rs 7.50 per hank, plus incentives like MMDA, which would be approximately 35 percent on Rs 150, that is Rs 52. Hence, an artisan spinning minimum 20 hanks in a day will now start earning Rs 202 per day, including his wages and government incentive. Most of the artisans spin more than 20 hanks per day presently. The enhancement in wages is expected to draw youth towards taking up spinning as a profession. This increase will also attract new and younger artisans to Khadi, who were earlier doubtful about their income comparing it to the wages given to the daily wagers under Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA).