Question : PURCHASE BY KVIC



(a) the methods adopted by Khadi and Village Industries Commission for making purchases;

(b) whether Khadi and Village Industries Commission purchased cotton worth Rs. 18 crore during 1993-1997;

(c) if so, the details thereof?

(d) whether that was lying in their various godowns unsold; and

(e) if so, the reasons for making such heavy purchases?

Answer given by the minister


THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE INDUSTRIES AND AGRO AND RURAL INDUSTRIES (SMT. VASUNDHARA RAJE)

(a): The Khadi and Village Industries Commission (KVIC) purchased cotton through Regional Cotton Purchase Committees. These Committees negotiate the rates and purchase cotton in accordance with the indents communicated by the Directorate of Cotton.

(b)&(c): The details of purchases of cotton made during the period 1993-1997 by the KVIC are as follows:

Value (Rs. in crores)	1993-94	19.23	1994-95	18.96	1995-96	58.81	1996-97	30.28
(d): Yes, Sir. Some of the stock was lying unsold.

(e): Cotton was purchased in accordance with the indents placed by the khadi institutions with the KVIC.