Hyderabad: The state government has asked Prime Minister Narendra Modi to lift the 5% GST on handloom goods, aiming to reduce the financial strain on weavers.
State Textiles Minister T Nageshwara Rao sent a letter to both the Prime Minister and Union Minister for Handicrafts and Handlooms, Giriraj Singh. He explained that the 5% GST from the central government is causing major challenges for the handloom industry. This sector is crucial for employment, with 23,046 handloom workers and 34,569 other workers in Telangana alone.
Rao pointed out that items from Pochampally, Gadwal, Narayanpet, Siddipet, Warangal, and Karimnagar are well-known nationally and have Geographical Indication status. He expressed concerns about rising raw material costs and competition from cheaper powerloom and mill sectors, which are creating financial struggles and lowering demand for handloom products.
According to Rao, the 5% GST hike would make handloom items more expensive, reducing sales and harming worker livelihoods. Many weavers are already leaving their traditional craft due to financial losses from GST, seeking work elsewhere.
The minister mentioned that handloom cooperatives, associations, and workers have protested against the GST. He urged the Prime Minister and Union Minister to quickly remove the GST on handloom products to safeguard the workers’ interests.
