Ponduru a town situated 30 km away from the district of Srikakulam in Andhra Pradesh. Ponduru Khadi is a rare product of remarkable excellence, made out of a unique variety of indigenous Organic Cotton. This variety is named after the village Ponduru. This place is now famously known as Khadi Village. This khadi is spun out of two fibers, namely, Punasa cotton and Hill cotton (both white and red). These cotton are grown mainly along the Eastern Ghats of the Vizianagaram District in Andhra Pradesh. As the fiber is best suited for spinning with a limit of up to 120 counts, they are not allowed to be shaped on mill machinery. This is one of the only places in India where still the single spindle charkha is underuse. The name of the fabric went to such an extent that Mahatma Gandhi gave a personal visit to the village and preferred to have Ponduru Khadi for him throughout his life.
The Andhra Fine Khadi Karmikabhivruddhi Sangham (AFKKS) in Ponduru, founded in 1949 by the weavers themselves, is now run under the backing of the Khadi and Village Industries Commission (KVIC). The AFKKS acts as a mediator between cotton farmers, spinners, and weavers in the area, as the product is also exported to foreign countries.