New Delhi, July 10 (KNN) With the newly implemented Goods and Services Tax (GST) entering second week, the famous Chikankari industry of Lucknow is starting to face crisis. Manufactures including hundreds of Micro, Small and Medium Enterprises (MSMEs) fear that the age old tradition of the city might lose its presence in the market soon.

Talking to KNN, Shubham Rastogi of Krishna Chikan Industry explained the situation. He said that since independence there hasn’t been tax on the Chikan Industry. It was so because unlike other readymade garments, Chikan involves a lot of micro and small scale labourers.

“Almost 90 per cent of the work force involved in making Chikan comes from a very low stratum of the society. This includes artisans who do embroidery in their homes and very tiny units. For one product they earn roughly 50-100 rupees. A levy of tax would chop off their earning significantly” said Rastogi.

He further added these artisans involved in embroidery business already didn’t have a very good living; an added burden certainly would result in the extinction of this art from the city.

Rastogi informed that the operations have already stopped, there is no manufacturing happening. Also thousands of workers are jobless.

Grieving further he said if one was to look at the sales from the industry, the businesses was already facing tough time competing with the readymade market, GST would further press the sector.

Runa Banarjee, Co-founder of Self Employed Women’s Association that has a Chikan embroidery unit said in a press interview that after GST, there have been an increase in the prices of the Chikan cloths because of which there has been a drop in the sales and the situation isn’t very pleasing. 

Various representations have already been sent to the Government including the UP Chief Minister Yogi Adityanath; the industry is still waiting for a positive response in this regard. (KNN/ DA)