15% subsidy demanded on handloom yarn to face GST

Srikakulam: Hand loom cloth industry and weavers are about to face tough times with imposition of 5 percent GST. At present plight of hand looms is not satisfactory as they have no sufficient market and demand but needs hard work and more labour. In addition to this, power looms are dominating the market as handloom cloth is costlier than powerloom.

Highlights: In Srikakulam district a total of 36 handlooms and weavers associations are producing handloom cloth A total of 5,000 weavers are depending directly on the industry and another 2,000 workers are depending on it indirectly Actually handloom cotton cloth (khadi) has good quality and has better durability than powerloom but customers are attracted towards powerloom than hand loom as power loom available at cheaper price than handloom.

At present government is providing 10percent subsidy to hand looms on yarn purchase. With imposition of GST hand looms would bear five percent cost on yarn and cost of the cloth will also be enhanced which would dampen even the existing demand.

In Srikakulam district a total of 36 handlooms and weavers associations are producing handloom cloth. A total of 5,000 weavers are depending directly on the industry and another 2,000 workers are depending on it indirectly. When state government is trying to protect handloom industry by providing facilities GST will cause damage to the industry, it is felt.

‘Handloom industry and cloth will slowly disappear as present generation is not interested to produce the cloth due to hard labour and least earning. With the five percent GST cost of the cloth will be increased and demand for it will fall down automatically’ said Ponduru Khadi Sangham (PKS) President, Guntuku Kameswara Prasad expressing serious concern.

‘Imposition of five percent GST on yarn is not good and it will be another burden on handlooms’ said PKS secretary, Danda Venkata Ramana echoing the same feeling

‘Government is providing 10 percent subsidy on yarn purchase to handlooms and it needs to be enhanced to 15 percent to avoid GST burden then only handlooms will be in existence by competing with powerlooms’ Assistant Director (AD) for handlooms and textiles, Gutti Raja Rao opined.

Source: http://www.thehansindia.com/posts/index/Andhra-Pradesh/2017-07-01/15-subsidy-demanded-on-handloom-yarn-to-face-GST/309610