Nath La ropening to dampen Khadi sale: experts

By Staff
|
Google Oneindia News

Kolkata, Aug 27 (UNI) The opening of Nathu La, a part of the ancient silk route through Sikkim, is yet another jolt to the Bengal's Khadi industry.

Khadi, which has been holding a pride place in the country in pre and post Independence era, is a rural employment generator as well. But it is fast losing grounds in the last few years despite its eco-friendly manufacturing process and natural fibre.

Khadi sources said with the reopening of trade between China and India through Nathu La, Chinese yarn, especially the silk, would now be available in huge quantity at a much cheaper rate, which in all probability would ruin the Indian sericulture industry.

This would hit the Bengal silk industry and Khadi too because of a large section of people would be employed in obtaining the raw silk, sources said.

Khadi failed to score above other garments and this is because of the fast growing brand-savvy public. As a result, the survival of this indigenous industry has become doubtful in the era of free market economy.

The retail sales from Khadi were Rs 48 crore out of which Rs 27 crore came from inter-state sales. However, the Central sales tax from which Khadi was earlier exempted has been re-imposed since April 2000.

UNI JYN PC DB1550

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