A price hike of 75 per cent for a single shirt. In addition, 12 per cent GST. This Onam will not be a relief for those hoping for rebates while purchasing khadi clothes. Normally, on special occasions like Gandhi Jayanti, Independence Day and Onam, khadi clothes are sold at 30 per cent rebate. Khadi lovers always wait for such occasions for purchasing their favourite clothes. During these days, if you buy a dress worth Rs 1,000, you need to pay Rs 700 only. Rs 300 will be given as rebate by the government. This practice has been a relief for khadi lovers across the state.
However, if the price of a khadi shirt was Rs 600 last year, the price has gone up to Rs 1,050 this year. The increase in the price of shirts is attributed to the rise in the cost of fabric and the cost of stitching. There has been an increase of Rs 450 for a shirt, over last year. That is an increase of 75 per cent. This is a hike unlike any other product in the market.
During the rebate period this year, a person buying a shirt worth Rs 1,050 was supposed to pay Rs 735 only. But, for ready-made garments, one will have to pay Rs 823.20 this year, with the addition of 12 per cent GST announced by the government. A major share of the rebate benefit is being recovered from the consumer by the government. That is, the customer actually gets only 18 per cent benefit.
Due to the increase in the price of khadi cloth, consumers will be forced to buy and use cotton clothes which are readily available in the market. As a result, the khadi clothing industry, which is struggling to survive in the market, will be left in crisis.
Price hike: 75 per cent
GST: 12 per cent
Khadi rebate: 30 per cent
The khadi market can survive only if the increase in the price of khadi garments is reviewed and the GST levied on ready-made khadi garments is withdrawn. The government should take adequate action in the regard.