While attending a GST meeting headed by Union finance minister Nirmala Sitharaman in New Delhi on Tuesday evening, Teama president M P Muthurathinam said the Centre’s transfer to increase the GST to 12% from 5% on textile apparels from January would have adverse impression on the sector, which is now reeling below input rate increase.
Stating that Tirupur was property to much more than 12,500 knitwear, garment and allied units, which hire a lot more than 10 lakh men and women, he mentioned the pandemic and the lockdown experienced afflicted them, specifically the Micro, Smaller and Medium Enterprises. He claimed the units in Tirupur accounted for exports to the tune of $4 billion . In the domestic market place, he said, they do business worthy of about $2.80 billion.
“The price of raw components for apparel manufacturing have amplified above the earlier calendar year. The price of uncooked cotton by yourself has shot up by Rs 130 for each kg, compared to final calendar year. Labour and container scarcity incorporate to their woes.”
He reported the textile models had been facing extraordinary competitors from countries these types of as China, Bangladesh and Vietnam in the export business entrance. “Amid these issues, the total textile business is dependent on the domestic marketplace for sustaining the business. If the GST were to be enhanced to 12%, it will increase to the stress of the textile units, numerous of which might be forced to shut down.”
Although Sitharaman has promised to seem into the difficulty, Teama associates are organizing to fulfill the point out finance minister, P T R Palanivel Thiagarajan, and chief minister M K Stalin to put forth a request in this regard at the GST council assembly. They also sought ban or regulation on the export of uncooked cotton and yarn.