The weaving and knitting factories of Karur remained closed on Thursday as they began a six-day strike against the Goods and Services Tax (GST).
This is the third strike organised by the textile manufacturers in the last two weeks on GST issue. Almost all weaving, dyeing, processing, stitching, knitting and bleaching situated in and around Karur are participating in the strike.
Besides textile manufacturers, traders and merchants of yarn and fabrics have joined the strike being organised in neighbouring Namakkal, Erode, Tiruppur, Palladam, Somanur and Coimbatore too.
Power looms, dyeing, packing and processing units have downed shutters en mass in order to press their demands. They were protesting against the imposition of 5 to 18% of GST on various stages of textile manufacturing.
“We have so far organised two strikes against the Goods and Services Tax on multiple processes of textile production. However, no official or Minister has bothered to call us for talks. We have no other way, except to go on strike to attract the attention of the Government,” said S. Surendhar, secretary, Karur Weaving and Knitting Factory Owners’ Association.
He added that weaving and knitting industry was the second major employment providers next only to agriculture in the country.
Several lakhs of people, mostly farmers, have been engaged in the process of textile manufacturing. It was keeping in view that farmers were engaged in the process that no government had come forward to tax different stages of textile manufacturing.
However, the Central government was not listening to the genuine demand of the industry, Mr. Surendhar said.
“Textile production involved at least eight processes. As per the GST proposal, the manufacturers have to pay tax for each and every process such as processing, dyeing, weaving and others. It is similar to enforcing economic sanction on unorganised sector. It will cripple the industry,” he said.
