Stating that Khadi is one such industry which is running on “no profit-no loss” basis, Khadi Gyamodyoga Sangha Chairman B.B. Patil has demanded that the Union government make Khadi products GST-free.
“The Union government should not collect any tax from Khadi industry as it is not like other manufacturing industries that aim at making profits. Khadi is more like a service industry where making profit is not the primary motto; therefore, to preserve and popularise Khadi tradition, the Union government should make Khadi tax free,” he said.
Addressing presspersons here on Friday, he also demanded that the Union government form a Ministry for Khadi like in the case of Kerala which has a Minister for Development of Khadi.
Stating that the Defence Ministry has placed a demand for supplying Khadi-based clothes to be distributed among defence personnel, Mr. Patil, however, regretted that in the absence of adequate resources, the industry may find it difficult to meet the huge demand.
“We have no dearth of demand for Khadi products, but in the absence of adequate funds and raw material, we are unable to meet the increasing demand. We need at least ₹ 5 crore per annum to purchase raw material for manufacturing Khadi products,” he said.
He said that Khadi exhibitions were being held in Vijayapura since 2005 with the available resources and they have been registering a good turnover.
He said that since 2010, exhibitions have recorded turnovers between ₹ 80 lakh and ₹ 2 crore each year.
“If the government offers more funds and resources, we will be able to do better in the market for popularising Khadi tradition in the State,” Mr. Patil said.
