Covid-19: Kerala textile industry facing losses even as markets reopen

Kerala's textile industry is still enduring heavy losses even after the reopening of businesses after almost a year of complete shutdown due to subsequent waves of Covid-19.

Kerala's textile industry is still enduring heavy losses even after the reopening of businesses after almost a year of complete shutdown due to subsequent waves of Covid-19. Shop owners in Kottayam are facing difficulties to even bear the basic expenditures like salaries, electricity bills, and rent.

"Because of Covid we are in trouble, It is difficult to pay salary to the staff, electricity bill and rent. The absence of customers has led to stocks being damaged and it is also difficult to take new stocks," said Saleela Rajan, a shop owner. Local business owners also complained that buyers are preferring to buy things online and are not ready to visit shops physically due to Covid-19 fear.

The industry which is already facing a financial crunch is further apprehensive of the proposed GST increase from January in the readymade garments and fabrics from 5 per cent to 12 per cent. "Comparing from last year, we can't get any money transfer from the government or any financial institution Further, GST council is increasing the tax from 5 per cent to 12 per cent along with the increase in the cost of production. Production cost will increase somewhat from 10 to 30 per cent. Therefore, textile is in a very critical situation," said John Thomas Mundacal, state vice-president, Kerala's textile and garment's welfare association.

Merchants urged the central and state governments to come forward and help the industry to survive. "Please withdraw the new taxation and help us," said Vishnunadh, a salesman. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)