GST breaks back of handloom sector

Mumbai: In India, textile sector today comprises four important segments viz., modern textile mills, independent powerlooms, handlooms and the garment sector. There is also a huge, informal tailoring enterprise. Handloom weavers are known for their knowledge, innovation and brilliance in designs. This sector is the second largest rural employment provider next to agriculture. It is a full-time family profession.

Mumbai: In India, textile sector today comprises four important segments viz., modern textile mills, independent powerlooms, handlooms and the garment sector. There is also a huge, informal tailoring enterprise. Handloom weavers are known for their knowledge, innovation and brilliance in designs. This sector is the second largest rural employment provider next to agriculture. It is a full-time family profession.

The per capita purchase of cotton textiles in handloom sector is 0.88 metres and aggregate consumption at all India level is estimated to be 989 million metres. National level consumption of pure silk textiles produced on handlooms was 116 million metres and 6 million metres in woollen in 2006. Handloom fabric production reached 6.9 billion square metres in 2011-12.

GST rate will increase prices of cotton textiles, over synthetics. As a result, blending of synthetic fibres with cotton fibres gains traction. There is likely to be a huge impact of GST on fibre mix in Indian textile industry. India is a net exporter of cotton yarn. GST is likely to depress natural fibre production.

A household-based industry, it is concentrated in about 15 States, accounting for about three quarters of production, including Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Rajasthan, West Bengal, Uttar Pradesh, followed by Gujarat. More than 80% of handloom production in value is sold domestically and about 10% in external markets. Handloom sector invests more than Rs 25,000 crore on accessing cotton yarn, and Rs 9,500 crore on dyes and chemicals every year.