What's Happening?
The Karnataka Khadi Gramodyog Samyukta Sangha (KKGSS) in Hubballi, the sole national flag manufacturing center in India, is experiencing a significant downturn as it has not received any orders for the upcoming 77th Republic Day celebrations in January
2026. This situation arises from an amendment to the National Flag Code introduced during the Azadi ka Amrit Mahotsav in 2022, which has affected the procurement of flags. Typically, bulk orders for national flags are placed by early December, but as of mid-December, no orders have been received. The center has already produced flags worth over Rs 2 crore in anticipation of demand. The KKGSS, which adheres to Bureau of Indian Standards (BIS) for flag production, saw its poorest sales during the last Independence Day, generating only Rs 54 lakh compared to Rs 2.5 crore in previous years. The center is now facing challenges in keeping its employees engaged, resorting to alternative production like stitching bags.
Why It's Important?
The lack of orders for national flags highlights the challenges faced by traditional manufacturing centers in adapting to changes in national policies and consumer behavior. The amendment to the flag code, intended to enhance national celebrations, has inadvertently impacted the livelihoods of artisans involved in flag production. The situation underscores the need for resilience and innovation in traditional industries to cope with evolving challenges. The KKGSS's predicament also reflects broader issues in the manufacturing sector, where policy changes can have unintended economic consequences, affecting employment and local economies.
What's Next?
The KKGSS remains hopeful for a turnaround in orders as Republic Day approaches. However, the center's management has expressed concerns about the sustainability of operations if the current situation persists. They have appealed to the Union government to reconsider the amendments to the National Flag Code, which have allowed for the use of polyester flags, impacting the demand for khadi-made flags. The outcome of these appeals and any potential policy adjustments will be crucial in determining the future of the KKGSS and similar traditional manufacturing centers.
