Hyderabad: The State Government has written a letter to Prime Minister Narendra Modi, requesting the removal of the 5% GST on handloom products to save weavers from the tax burden.

In a letter to the Prime Minister and Union Minister for Handicrafts and Handlooms Giriraj Singh, state Textiles Minister T Nageshwara Rao said that the handloom sector was facing serious problems due to the 5% GST imposed by the Centre. He noted that the handloom sector provides significant employment, with 23,046 handloom workers and 34,569 other workers in Telangana alone.

Rao highlighted that products from Pochampally, Gadwal, Narayanpet, Siddipet, Warangal, and Karimnagar have been recognised across the country and are also registered under Geographical Indication. Rao expressed concern that due to rising raw material prices and competition from the low-cost powerloom and mill sectors, weavers are facing financial difficulties and a lack of market demand.

He said that the imposition of the 5% GST would further increase the prices of handloom products and reduce consumption, which would badly affect the livelihoods of the workers. Weavers who are losing money due to GST are being forced to leave their traditional profession and migrate to other places for livelihoods.

The minister also said that handloom cooperative societies, associations, and workers have protested against the GST burden. He appealed to the Prime Minister and the Union Minister to take immediate measures to exempt handloom products from the GST burden and protect the interests of the handloom workers.