Lockdown woes: Rs 50 crore as rebate arrears, khadi sector in disaster in Kerala

2 min read

Express News Service

KOZHIKODE: The khadi sector goes via a really troublesome patch because of the Covid pandemic as it’s burdened with a rebate arrears of Rs 50 crore.

This, at the same time as the federal government is providing a 30 per cent rebate on khadi on account of the approaching Onam competition.

Since 2016, the rebate quantity has not been disbursed. Kozhikode Sarvodaya Sangh alone is owed Rs 5.25 crore.

Sales have dropped considerably as outlets have been unable to open on account of lockdown.

Last 12 months, the Onam season, which is considered the height time for companies, was a washout for the sector.

Though the federal government allowed outlets to operate six days per week, khadi sector shouldn’t be enthused on account of a number of causes. 

Normally, 60 per cent of annual enterprise within the khadi sector takes locations throughout the Onam season. But this time, not even 10 per cent sale has been reported. Last 12 months, the overall statewide sale of khadi was solely Rs 9 crore, due to on-line platforms, which got here in the way in which throughout the pandemic.

“The Sarvodaya Sangh has over 1,000 employees. The Sangh has presence in Palakkad, Malappuram and Wayanad districts,” stated a member of Kozhikode Sarvodaya Sangh.

There are 64 centres with looms and retailers.He additional stated, “Even the payment of salaries of employees is in disarray. The total monthly amount required for salary payment will be around Rs 40 lakh. We are unable to pay our staff on time due to the current crisis. Shops in C category areas will be allowed to open only on Fridays while those in D category areas have to remain shut. The shops have to remain closed when there is a demand for Khadi products.”

“During the first wave, there were restrictions, but shops were allowed to open. This time, crisis has worsened. Clearing rebate arrears will bring a huge relief to the khadi sector. A petition was submitted before the chief minister, district collectors and others in this regard, but nothing has come out of it. Apart from clothes, khadi also sells shoes, bakery items, handicrafts and honey. Entrepreneurs who deliver goods are also finding it difficult to do their daily work as they are not allowed to open,” he stated.