WORKING OP KHADI AND VILLAGE INDUSTRIES COOPERATIVES IN A TYPICAL DISTRICT IN GUJARAT

CHAPTER IDEVELOPMENT OF THE CONCEPT OF KHADI & VILLAGE INDUSTRIES

Outline

(A) Advent of the Charkha.(B) Formation of Charkha Sangh and its

Activities for the Strengthening of Khadi.(C) Development of the Social Content of Khadi

Programme.(D) Khadi and Political Independence.(E) Khadi as an Economic Proposition.(F) Seeking Support for Khadi.(G) Village Industries.(H) Prospects for Khadi and Village Industries.(I) Observations.

(A) Advent of the Charkha

Khadi is a piece of cloth. The place of clothing in life is next to that of shelter. During the pre­historic period man and woman considered socially desirable to cover their bodies, partly. Tree leaves and barks were used in the beginning of wild life. Hunting during pre-stone age brought about a familiarity with skins and hides of dead animals. Leather was then

2accepted as material to cover tine body* Since there was no other better alternative material, people used leather for a much longer period* It was found un­comfortable because of its inherent limitations. Cotton was brought to agriculture during the later period*Initially cotton was utilised directly as an aid to religious performances and later its threads were used in many other social ceremonies. It was at this stage that cotton acquired twisting for the first time* The human hands developed it as an art of spinning. We find evidences of the arts of spinning and weaving having been known to the people of even the Vedic Age*1

The spinning wheel, which had mostly gone out of use after the heavy inports of British textiles in India, had come as a flash to Gandhiji when he was discussing

2the condition of the people of India in 1908 in London. Thereafter the Swadeshi movement was launched in February 1916 by the Indian nationalists. In 1917, Gandhiji came across Shriraati Ganga Ben Majumdar who discovered the spinning wheel in vijapur in the former Baroda State and now in Mehsana District in North Gujarat, and the era of hand-spinning wheel— the Charkha-- marked its beginning in 1918. The Charkha was primarily economic, secondarily social and ultimately political in character. The Khaddar (Khadi) Movement was started to give a rural base to the Swaraj struggle.The Swadeshi Movement,sprung from the rising

l*D-20: p.38 2.D-45: p*46

3patriotism of the people, aimed basically at serving the local artisans and at encouraging cooperation among the people of different castes and classes. The concept of Swadeshi amphasized that one must not serve the distant neighbour at the expense of the nearest one. Swadeshi chiefly centered round ’Khadi' and was extended to every -

3thing that could be produced in the country. This gave rise to different organisations/institutions for under­taking productive activities to be spread over the country cm decentralised basis without losing the essence of integration. The Non-cooperation Movement in 1920 gave a great fillip to 'Khadi* • The constructive workers from Bardoli Taluka of Surat District took an active part in the Non-Cooperation Movement in 1922. They made massive arrangement to make the people self-sufficient in cloth. This created an impact of national character. The leaders also revived some village industries like oil-ghani, hand chakki, gur hhandsari, baking, tanning, soap, pottery, carpentry and black smithy and hand-made paper, as an ex-

4tension of the 'Khadi* effort. The All-India Khadi Board, established in December 1923 to organise khadi production, had continued to work till the formation of the Charkha Sangh in September 1925. During this period Ramsera and Bardoli in Gujarat State were the leading Swavalamban

3. D-16: p.back cover page & D-69: p.304. D-45: p.47

4

centres in the country. Private merchants and, at some

places cooperative societies, had also taken up khadi

production. Utilising private money for production was

the special feature of khadi movement then.

The All India Khadi Board, however, extended loans

to registered institutions and individuals at a nominal

rate of interest of 0.1 per cent to undertake khadi

production in unexplored areas. An idea of equal wage

to all artisans was mooted. All these measures aimed at

assuring wide-spread Swavalaniban production. It was the

period of the revival of khadi and the introduction of

Charkha as an implement of production. The idea of equal

wage was then premature as khadi had yet to enter into

commercial production involving payments of wages.

(B) Formation of Charkha Sangh and its Activities

for the Strengthening of Khadi

The Charkha Sangh was created as a separate body

(a) to keep *Khadi' away from the influence of changing

political situation# and (b) to remove its commercial

weakness. The idea was to create a body of constructive

workers to carry the message of social and economicSrevolution and recons true tion. But this change was

*§. D—13: pp.l & 12- Jaya Prakash Narayan's views on Gandhian Studies.

5viewed by the British bureaucrats as an under-cover organisation of the Congress for falling back upon in

5 athe event of conflict with the Government. The consti­tution of Charkha sangh waa that of a charitable insti­tution. As per the provisions of the original consti­tution adopted in September 1925, the Managing Committee members were to be elected by the members of the Charkha Sangh. Thereby, it had adopted fully the democratic set­up for managing its affairs. Later, in December 1928, the idea of trusteeship was given expression by introdu­cing the provision in the constitution to have a Trustee Mandal of 15 members consisting 12 as permanent members selected from among its life members (who were also to be regular *A' class members) and 3 to be elected every year by and from among ‘A* class members. The provision for the category of *B' class membership was withdrawn whereas 'A1 class members consisting of life members and yearly members remained. This arrangement of electing 3 members of the Managing Committee continued to work well for some years in spite of certain routine diffi­culties. After some years, candidates started canvassing, employees of the Charkha Sangh began to contest election and malpractices crept in such election. Hence, in June 1941, the practice of electing 3 such members was stopped and a provision was made to select them annually by the

5a. d-6: Narad

permanent managing ^committee members. Thereby, the element of democracy was conpletely withdrawn from its constitution and it remained an organisation of a few selected persona­lities.

Up to 1933 various efforts were made to improve the quality of yam and cloth and to popularise khadi. Fina­ncial support from a few native States like Baroda and Mysore wa»e received for the development of khadi and protection was assured from the organised textile industry. Efforts were also made to provide welfare facilities to artisans. Individuals were helped to be self-sufficient in cloth and artisans engaged in commercial production were assured of wages during this period. During this phase, 1Khadi' was considered to be a relief measure.

(C) Development of the Social Content of KhadiProgramme

Khadi was to be made cheap and sold for popularity and support for it. It was mainly consumed in towns and cities while most of it was produced in villages. Conse­quently the artisans remained in the background and the wage rate was below that of the agricultural labourer.The exploitation of poor artisans for serving the city consumers was in direct contradiction of the objects and the approach of the Charkha Sangh. In 1935 it decided to give a minimum wage to artisans to meet their needs of food prescribed by nutritional standards and 20 yaads of cloth per person. During the next year, the wages were

7fixed between 12 to 19 p. for 8 hours of work. Among other iimportant matters/ decisions were taken to produce for local sale# to pay wages in the form of consumption articles and to demarcate the areas of khadi producing institutions. The result was a further rise in the price of khadi. However, due to the favourable atmosphere, scxne of its branches like those of Maharashtra and Central Provinces accepted 37 p. as wage rate for 8 hours. The Gujarat Branch also accepted 37 p, as wage rate but it did not raise the price of khadi, The Charkha Sangh was further interested in artisans fruitfully utilising their increased earnings and took certain measures to avoid any wasteful expenditure by them. Besides, it decided to utilise its own profits mainly for the purpose of increa­sing the efficiency of khadi artisans. This decision, however, produced adverse reactions. Many branches of the Charkha Sangh became indifferent and avoidable expendi­tures were increased at the cost of the artisans. Conse­quently, it was decided to charge overhead expenses up to 20 per cent on production and retail sales, 14 per cent on production and wholesale transactions and 8 per cent on outside purchases. The Quit India Movement of 1942 gave further fillip to khadi and the wages of the weavers were raised four times and those of spinners were doubled during the years from 1936 to 1942, It was during the

£Second World War that khadi became an economic proposition.

6. D-66» p,38

87But to Gandhiji it remained a symbol of non-violence.

This period of ten years was important from the view point of the moral aspect of the khadi movement.

(D) Khadl & Political Independence

Immediately after the Quit India Movement, the British Government had taken stern measures to liquidate the organised khadi sector. Hence, the Charkha Sangh decided to ply Charkhas in homes, independently of any organisation in order to withstand any unforeseen cala­mities from outside. It further decided to work in the villages not in isolation with a partial perspective but as a part of a total integrated approach to the develop­ment of the villages. Karadi village of Surat District pioneered to take up these integrated programmes. Besides, the Charkha Sangh made recommendations to the willing State Governments to encourage khadi and village indus­tries work through multipurpose cooperatives,to impose restrictions on hand-loon cloth and to adopt the approach of common production programme in the field of cotton textiles. Consequently^ many Provincial Governments sanctioned weaving subsidy and certain other khadi schemes. The Vastra-Swavalaniban scheme was sanctioned for Vedchhi village near Bardoli in Surat District. In spite of such efforts made on the provincial and national levels, commercial khadi did not grow and Vastra-Swavalamban

7. E-42: p.456

9did not sustain because the programmes were sponsored by

organisations and not initiated by the people themselves.Gujarat was an exception to this as khadi work there wasmore decentralised end Vastra-Swavalamban had continuedto grow. It was believed that political freedom withouteconomic self-sufficiency, and economic freedom withoutself-rule were impossible and attempts were,therefore,

8made to reorient khadi programmes in 1946. The concept of trusteeship in the field of khadi had largely a symbolic value without any popular sanction.

When the country became free, the approach to the khadi and village industries ceased to be merely emotional

* 9and they secured a place in the national economy. TheCharkha Sangh continued its efforts for securing patro-

1953 withnage from the Union Government until its merger/in the /Akhil Bharat Sarva Seva Sangh which was formed in March 1949. Another attempt was made in 1956 when the well- known Chalisgaon resolution laid down the directive forthe reorientation of khadi. The resolution contended

*

that the 'Gram Ekai* or the village unit would be the base for development work, production to be organised for self­consumption and not for marketing or for profit, and every individual of the village unit would be an industrious and skilled entrepreneur. It aimed to make the industries run in its ambit and dependent on the strength of the

8. D-36: p.57l9. D-39* p.687 and D-20jt p.28

10people and not on the assistance from the State. The

contention of the resolution was that the national reconstruction and building up and uplifting of the people were not different from each other* A third attempt was made in June 1959 when the Pusa resolution, popularly known as the charter of the programme for rural reconstruction, was adopted. It mainly emphasised that (a) the constructive programme must take into its sweep all aspects of life of the village, (b) the pro­gramme to be conceived should not be limited to the purpose of releaving unemployment, (c) the agriculture and animal husbandry should form the basis for the successful implementation of the schemes for khadi and village industries, (d) the programme be considered as non-violent economic revolution based on the principles of social justice, Bhoodan and the development of village industries, and (e) the integrated programme should be organised on intensive basis in some selected areas so that experience may be gained for rebuilding the society. A fourth attempt was made in 1963 when the Raipur reso­lution on gramdan, shantisena and khadi — popularly known as triple programme — became the accepted policy. The last attempt at reorientation was made in 1964 by introducing free weaving subsidy for making khadi village oriented. Thus, a new era was ushered wherein khadi production was to grow from being *in* the village to becoming'of' the village. The essence of khadi, in the words of Gandhiji, was 'one who spins should wear end

11one who wears must spin'. This was now enlarged, by introducing this new concept of 'gramabhimukh khadi' which means r.; production and use at the local level. The beneficiary was to be the urban and rural self-spinner and the rural cotton grower. The programme was made broad- based. Its size was enlarged. Since the Union Government created a special organisation for the development of khadi, it no longer remained an organic part of the

Congress programme.10 The All-India Khadi and Village

Industries Board was constituted in 1953 consisting largely of constructive workers whose views were always reflected in the policies formulated for the programme for the development of these industries. Consequently, the khadi and village industries programmes were dovetailed to one another with self-imposed restrictions about (a) the use of power beyond prescribed limits, and (b) the use of certain types of raw materials. Such policies narrowed the limits of economic production and marketing at compe­titive rates. The activities were, therefore, criticallyviewed by some as a political fad, an economic impossibility,

11socially doping and aesthetically revolting.

(E) Khadi as an Economic Proposition

To recapitulate, to Gandhiji khadi was the only true economic proposition until the economy was fully developed

10. D-9 and D-13s p.132 and D-69: p.811. D—6

12

to give all# including the villagers# the necessary comforts and amenities demanded by well-regulated life.He had maintained that "khadi must hold the field for any length of time". Soon after the Second World War, khadi was viewed for building up self-reliance among the rural people. Emphasis was laid on self-sufficiency, decentralization, close personal contact with artisans, production without subsidy# sale to the villagers locally and government assistance for education, research and technical guidance.13 After the winning of national

independence, the Union Government took upon itself the responsibility of rehabilitating khadi on a sound economic footing. Efforts were made to increase commercial pro­duction, extend State protection, subsidise production and institutionalise the activities on a decentralised basis. Initial efforts were concentrated on creating a structural base and increasing the technical skill of the artisans. Subsequently, attention was paid to consolida­ting khadi production. In February, 1968, the Khadi Samiti of the Sarva Seva Sangh, which usually advises the Commission on policy issues pertaining to khadi programme, overrated the claims of khadi in a resolution that set the objectives of reviving the spirit of Swadeshi and national self-respect as a means of securing social change through peaceful means# building up a self-reliant community andensuring a balanced development of the country * s economy. 14

n W

CO H •

• • 0»

lift*•

« ♦* IS,

^ r*H ► ►

iSt St <4•

• •

HHH

13Briefly speaking, the basic approach of the khadi

programme had three objectives, viz., the social objective,the objective of creating self-reliance among the people

15and the economic objective. Until recently the first two objectives dominated over the third one. Now it is only the economic objective that is gaining ground not only among the economists but also among a few of the protagonists of the movement. It is, therefore, rightly suggested to have, in future, an increased emphasis on the positive rather than the protective aspects of the develop­ment assistance and on the ideology that there should bea free scope for the introduction of technological imp rove-

16ments including the use of power.

(F) Seeking Support for Khadi

The economics of khadi, however, have still continued to be viewed emotionally by most of the workers. Probably, out of frustration, the earlier All India Khadi and Village Industries Board had also expressed that the viability of khadi industry was out of question and had pleaded for the creation of public opinion in favour of khadi and for the linking of khadi industry with agriculture and animal husbandry. It had further expressed the need for under­taking khadi production on an increasingly commercial basis and for organising a political lobby in support of the

15. F-ls p.4916. Ibid: pp.50 & 52.

1417khadi programme. The whole Issue was limited to the

stabilization of the programme by reducing the overheads and strengthening of the artisans. This kind of thinking has evidently become obsolete.

•c tG) Village Industries

The artisans were an indispensable part of thevillage economy before the British rule. They followedcertain occupations producing goods from local materialsfor village consumption. Village industries were meantto produce all the necessaries of life "through labour

18and intellect of the villagers". They were not aseparate economic activity carried on in the villages# but

19were an indispensable part of the village body politic.Gandhiji held village industries as a part of 'Khadi'.They were considered a part of the whole village economyaiming at evolving a classless society wherein exploits-tion was absent and utmost human freedom existed. Thisconcept of village industries was not clear to many who

21were propagating it prior to the Second World War.22The village industries were defined thus: "Village

industries are those (a) that manufacture indispensable

17. B-20: pp.12-1318. E-47s p.419. Ibid: p.420. Ibid: p.521. F-7: pp.8-13, 48-49 and 56-58.22. E-47: p.5

15articles that are needed in villages, and for villagers,(b) that use processes within the easy reach of the villagers, (c) that carry on their activities with the help of tools and implements falling within the financial capacity of the villagers, (d) that utilise local raw materials, (e) that are run with the aid of human or ani­mal power, (f) that meet the demand of local or nearby market, and (g) that do not cause displacement of labour or unemployment among the wage-earners. Some of these industries may need the co-operation of many workers. The number of wage earners in a unit may differ from industry to industry.”

The approach to village industries was then kept openfor introducing any amendment offered by the experts andthe economics of village industries were not to disregardmoral and sentimental considerations. Broadly speakingnothing was to be allowed to be produced by cities whichcould be equally well produced by the villages and theconflict between major and minor industries was notconceived. Mechanisation and labour-saving deviceswere considered not an evil provided they did not displaceworkers. The emphasis, it appears, was not can providingemployment but on protecting the artisans from the vagariesof mechanisation and power. It was a defensive attitude.Village industries were compared as various planets ofkhadl solar system of the village and were considered

23sustainable with khadi. Without village industries, the 23.D-70: p« 14

16economy of the village could not be complete. The ideaaimed at having everything in life worth having in the

23avillages. At the same time, the economy was not intended to be left to the hands of trustees.23b

(H) Prospect of Khadl and Village Industries

As described earlier# up till now the efforts were concentrated on production for consumption and not on production for profit. The programmes framed were for meeting social objectives rather than economic objectives. The concept of self-sufficiency had a deep emotional hold over those who were in charge of these industries. De-

23ecentralisation was advocated for the following reasons:(1) With the growing concentration of resources on

producers' goods industries# it was desirable that the production of essential consumption goods was done through small, cottage and village industries.

(2) Protection against unemployment.(3) Avoiding the evils of the organised industrial

sector.(4) implementation of the directive principles of

the Constitution to ensure avoidance of concen­tration of wealth and means of production.

(5) Development of personality to promote better living.

23a. Ibid: p.3023h. E-42: pp.627-2823C. E-31: pp.7,11,12 & 13

17

To translate these ideals, the Karve Committee pointed

out that khadi and village industries were certainly not

24needed to be backward in technology.

(I) Observations

Hie historical view of khadi development suggests

that khadi was used as a means to achieve a very high

cause. By bringing about mass awakening and mass mobili­

sation, it was intended to create a public opinion for

State policy and to evolve a system of economy based on

'non-violent occupations'. Such an economic system envi­

saged means of production owned not by a few but by the

masses in their own homes, diversification of occupations

and non-exploitative society. Thus, an economy quite

different from that of the advanced western countries

was contemplated. Hand spinning was considered as a

most potent instrument for the attainment of a revolution

in the mental outlook of the people. Khadi was also

considered as a symbol of austerity and simple living

meaning thereby the cutting down of the level of consum­

ption for more rational other development.

The efforts of the constructive and political workers

during the first 20 years of this century had succeeded in

bringing about familiarity with the Charkha. It was not an

invention but a political disdovery. In its initial stage

the Charkha was propagated to the people for self-sufficiency

in cloth. During the twenties, khadi programme was made

broad-based by including traditional village industries

24. D—25i p.74

18

and one organisation at the national level was formed to

provide all necessary protection. The other aspect of

commercial production was later introduced and the Khadi

and village industries activities were tied to the freedom

movement. The subsequent pre-war and post-war period was

devoted to stabilise Khadi and village industries programmes

by seeking support of the public on*, the one hand and of a

few princely States on the other.

In the course of the first 50 years of this century,

the concept of khadi and village industries continued to

grow from their being a sirtple inplement of Swavalaniban to

that of social, political and now economic freedom. The

high ideals laid down for these activities remained to

become the concern of intellectuals and conscious political

and traditional social and constructive workers. In practice,

however, the decentralised programme was centrally organised

at all times. The Charkha Sangh, the Village Industries

Association and their State level independent Units could

not create local institutions. The traditional artisans,

who had the first claim for benefits, were not organised.

Thus, the people*— the consumers — and the artisans —

the producers — remained out of sight of the propounders

of the movement, mainly because they were fully engaged in

the struggle to achieve political freedom. The technical

aspects also remained outside their reach.

The country was in a state of unbounded expectancy

of economic growth after the attainment of political

Independence in 1947. The expectations continued a hope of

19

the evolution of a non-violent economy with social

equality. But# these laudable ideals have remained

evidently unfulfilled partly because the khadi aid

village industries at present enjoy only a temporary

place in the national economy due to their high price-

cost structure and low profit-yielding capacities.

Actually, it is the function of technology and power to

increase productivity of these industries and thereby

to assure for them a definite place in the economy.

Unfortunately# this distinct role of technology and power

is not fully realised by those who are at the helm of

Khadi and village industries programmes probably/they

fear the creation of technological unemployment. To them#

the use of improved technology means disturbing the

balance of employment and efficiency# disrespecting certain

social values through the transformation of self-employed

persons into wage-earners# exploitation of labour# kill­

ing the creative faculty of workers and, finally# the

non-suitability of the application of particular level

of technology and power in all conditions. Really speaking,

the striving should be for more permanent remedies and

more enduring results rather than for immediate relief#

if decentralised development is to be made viable.

Of late# we have entered into a new phenomenon of

dealings in khadi activities. At present, there is wide­

spread unemployment in the country encompassing millions

in the villages. The Commission has stretched out its

hands at this level# which no other organisation has done.

because

20The Reserve Bank study conducted In 1971# however# has

brought out the fact that the khadi programme had bene-

fitted mainly the middle class women and the poor had

been left out* This is not what was expected of khadi*

In spite of this# the Commission# during the first quarter

of the year 1973# continued to state that the khadi

industry is viable as it provides (a) jobs to the resource­

less poor# and (b) subsidiary income to the underemployed.

To ensure both the claims the Commission, through its Khadi

Certification Committee# prescribed rules to be observed

by certified khadi institutions whereby (a) minimum fixed

wages to spinners# weavers, etc., are to be paid# (b) depo­

sits from artisans are to be restricted to 10 per cent of

the earned wages, and (c) fixed percentage is to be

charged as overheads etc.# to ensure justice to the producers

and the consumers. This is indeed good in the days of demo­

cratic socialism. On the other hand# the certified khadi

institutions — including all those in Gujarat — have

devised a system of accounts whereby registers show "wages

paid" to the artisans while the pass-books distributed to

artisans show the wages retained as 'khadi deposit'. This

is again a misnomer. Though it is an admitted phenomenon

that a part of the wages is paid in cash# the khadi

institutions in Gujarat do not pay the wages in cash but

the poor artisans are instead paid entirely in kind

including khadi cloth# readymade khadi garments and other

village industries products like soap# honey# oil^etc.#

without choice and much against their wishes. The artisans

21are left with no alternative but to sell these khadi and village industries articles outside to others at a lower value than the cost paid for, so as to enable them to purchase their other daily necessities. In this vicious circle of dealings, the artisans are at the mercy of others at four points and have to bear an unnecessary cost-loss burden. Firstly, when the artisan goes to sell his products to khadi institutions, his products are valued according to scales and measures maintained by the institutions. Secondly, when khadi and village industries products are purchased by the artisans, they bear higher prices because of the addition of processing, finishing, freight, insurance and overhead charges. Thirdly, the artisan incurs losses when he re-sells, at a lower value the khadi and village industries products outside the institution. Finally, the artisan has to pay the full market price in cash for all his daily consumption stuff purchased by him from the open market. The financial burden at the second and third points can be fully avoided if the artisans are paid their wages in cash by khadi institutions. This is not enough. The fate of artisan was further worsened by institutions converting the special famine subsidy of 15 p. per hank of traditional yarn and 9 p. per hank of /Unbar yam, granted by the Gujarat State Government, to khadi deposits. The artisan was thus not paid the Government subsidy in cash when he needed it most in the days of drought during 1973. These undesirable practices can be greatly avoided if the khadi institutions are provided with adequate funds.