The Business Bytes
TBB BUREAU
BHUBANESWAR, MAY 14, 2022
Notwithstanding the adverse business conditions caused by the Covid-19 pandemic, direct selling industry in Odisha has recorded a growth rate of 13.3 per cent, reaching an all-time high of Rs 1034 crore during the Financial Year 2020-21, according to the Annual Survey Report released by Indian Direct Selling Association (IDSA) here on Saturday.
The report shows an increase of more than Rs 121 crore in sales over the previous fiscal year figure of Rs 912.60 crore; and indicates that the business model remains a popular source of a sustainable or additional revenue source in the State.
Direct selling in Odisha contributed nearly Rs 150 crore to the state exchequer as GST during the year under review, and it ranked fifth in terms of sales among the top 10 States of the country.
With a total of around 3.34 lakh direct sellers, of which nearly 1.5 lakh are women, Odisha contributed around 5.72 per cent i.e. Rs 1034 crore to the gross national sales that stood at Rs 18,067 crore during FY2020-21 compared to 5.44 per cent in FY2019-20, the report said.
Odisha also maintained third place in sales in the Eastern region. The region –comprised of West Bengal, Bihar, Odisha and Jharkhand — maintained its second position on the national direct selling map with a total business turnover of Rs 4708 crore, 26.04 per cent of the national gross sales, and over 26.57 lakh direct sellers, the report further elaborated.
Inaugurating a programme “Odisha Leads” organised by IDAS here today, Odisha Legislative Assembly Speaker Surjya Nayaran Patro said that direct selling is a fast growing sector in the country which is presently providing opportunities to lakhs of countrymen including the people of Odisha for self-employment, start-ups, earning livelihood and alternative resources and socio-economic empowerment.
Emphasizing the need to ensure the compliance of Direct Selling Rules notified by the Union Government to protect the consumers’ interests< Odisha Consumer Welfare Minister Ranendra Pratap Swain said that keeping in view the expansion of direct selling industry in the state, there is a need to set monitoring mechanism as specified in the rules, so as to protect the consumers’ interests. He also advised the IDSA to come forward to help the state government in setting up of the proposed monitoring mechanism.
“Odisha continues to be a key market for the direct selling industry. With a double-digit growth of over 13 percent, Odisha is the fifth largest market for the industry,” said IDAS Chairman Rajat Banerji while speaking on the occasion.
“Direct Selling has provided sustainable self-employment and micro-entrepreneurship opportunities for over 79 lakh Indians. Direct selling has demonstrated consistent and sustained growth with a CAGR of 12 percent over the past five years. Despite some minor blips during the first wave of the Covid pandemic in 2020, the Industry has shown resilience and sustainability. The IDSA can confidently lay claim in successfully protecting consumer interest as well as that of the 3.34 lakh direct sellers in Odisha,” added Banerji.
