Rasulpur: The Centre’s proposal to hike GST on handloom raw materials from 5 to 12 per cent has sparked sharp resentment among the weavers in Jajpur district. The concerned weavers have warned of an agitation against the move by the government.
In fact, the move has robbed the sleep of people in Gopalpur weaver village under this block who are struggling to stay afloat in this business after being battered by Covid-induced lockdown and natural calamities.
Reports said that the Centre has proposed to hike the GST on handloom raw materials like cotton and colours from 5 per cent to 12 per cent from January 2022. Members of hundreds of weaver families here have demanded revoking of the decision, which they claim will seriously affect their livelihood.
The weavers claimed that the if the Union government does not rethink on its decision it will lead to steep rise in the price of handloom clothes in the market and result in decline in demand for their products .
They claimed that consequently most weavers will be forced to shun their family business and leave for other states to work as migrant labourers.
According to reports, over 5,000 weavers from 1,000 families in Gopalpur village under Prathamakhandi panchayat of the block are into weaving of handloom clothes, which is their family business.
Weaving handloom clothes is the main source of their livelihood. Over 17 societies are functioning in the village for smooth management of the weaving business and sale of the products.
However, the weavers faced a serious setback when lockdown and shutdown were imposed due to spread of Covid-19 in the country. While their business was returning to normal, the Centre’s recent decision has once again belittled their hopes. They alleged that no taxes were ever levied on handloom textiles. Mahatma Gandhi promoted handloom textiles as a cottage industry which is still tax-free.
They claimed that both the Centre and state are promoting small, medium and cottage industries. The Centre had earlier imposed GST on handloom textiles and now the move to hike it further is quite unfortunate. Earlier the government had imposed two per cent VAT on handloom textiles.
Later, the Centre imposed 18 per cent GST on handloom textiles which sparked resentment among the weavers in the state. As a result, the Centre conceded the demands of the weavers and reduced the GST to five per cent.
They were trying to save their traditional occupation but the advent of Covid-19 from March 2019 and a major flood in August 2020 shook them to the hilt. The slump in sale of their handloom products due to Covid-induced lockdowns and shutdowns is yet to see any improvement.
They had drawn the state government’s attention to their various problems, while the latter has launched Mukhyamantri Bunakar Kalyan Yojana for their benefits. The recent move by the Centre has come as bolt from the blue when they were trying to get back on feet against the adversities heaped on them.
Weaver leader Ramesh Das termed the move as unfortunate when they have been demanding for consideration of five per cent GST on cotton and colours during Covid-19. Entrepreneur Ashok Kumar Guin demanded that the Centre reconsider its decision.
Woman weaver Shakuntala Chand said that the GST hike will affect the income of women weavers and warned of an agitation if the decision is not withdrawn.
Shyambhakta Mishra, managing director of state-owned Boyanika, said that a proposal will be prepared for the benefit of the weaver community and sent to the government for its approval.