Government of India’s Ministry of Micro, Small and Medium Enterprises formally approved the Khadi Agarbatti Aatma Nirbhar Mission. The KAAN scheme aims to create employment for migrant workers in different parts of the india, support the local Agarbatti industry and handholding artisans.


Presently Agarbatti consumption in India is 1,490 metric tonnes daily. However, the production of Agarbatti per day is 760 mt. The deficit in india is sufficed through imports from Vietnam and China. The mission will thus help reduce imports in india.

About the scheme

Khadi Agarbatti Aatma Nirbhar scheme will make India self-reliant. The total size of the programme has been increased to Rs 55 crores. This includes immediate support to about 1,500 artisans of about Rs 3.45 crores. KAAN scheme will develop two centres at IITs/NITs and at Fragrance and Flavour Development Centre, Kannauj, Uttar Pradesh.

Around 10 new clusters are to be set up at Rs 50 crores under SFURTI (Scheme of Fund for Regeneration of Traditional Industries). Earlier the size of the programme was to cover 500 artisans with an allocated amount of Rs 2.66 crores.

Key Features of the Scheme

  • KAAN scheme is to be designed on PPP (Public-Private Partnership) mode
  • Under KAAN scheme, Khadi and Village Industries Commission will provide automatic Agarbatti making machines and powder mixing machines.
  • Under KAAN scheme, Khadi and Village Industries Commission is to provide 25% subsidy on the cost of machines. The remaining 75% are to be recovered from the artisans through instalments.
  • The cost of training the artisans are to be shared between Khadi and Village Industries Commission and private business partner.


The automatic Agarbatti making machines are capable of producing 80 kilogram of Agarbatti daily. This will provide direct employment to 4 persons. Currently, the job work rate of Agarbatti industry is Rs 15 per kg. At this rate, with four persons working on a machine, the artisans will earn Rs 1,200 daily making 80 kg of Agarbatti. Govt approved Khadi Agarbatti Aatmanirbhar Mission Govt approved Khadi Agarbatti Aatmanirbhar Mission