MP seeks anti-dumping duty on Chinese fabrics, GST exemption for blankets

“The power loom business has been hit by auto looms and unhealthy competition from Chinese products. As a result, several thousands of power loom units have become debt-ridden and are overburdened,” the MP said in a petition submitted to Piyush Goyal, Union Finance Minister in New Delhi.

In Tamil Nadu, there are six lakh power loom units, providing job opportunities to 10 lakh workers. With the introduction of the GST, the power loom units generate around Rs 2,500 crore to the central exchequer. 

In Coimbatore, Tirupur and Erode districts, about 95 per cent of power units are running on job work basis.  The MP sought the Union Minister to provide a special package or recommend for a loan waiver to help the ailing power loom sector to be back in business. 

Also in order to bring a cost competitive and level playing ground with imported Chinese fabrics, an anti-dumping duty on fabric imports should be levied to save the power loom sector which provides the livelihood for millions of traditional workers. 

Similarly, the MP wanted the hand woven ‘jamakkalam’ (blanket) to be exempted from the GST. It was earlier exempted from all taxes. 

“There is confusion whether this unique product belongs to the category of carpet. It is actually a hand woven blanket produced by the traditional handloom weavers of Bhavani for the past 300 years. They are produced by cottage industries and provides job for thousands of handloom weavers,” the MP said.