Karur mosquito net units seek GST relief

Manufacturers claim that the entire industry has been badly affected as the stocks were stagnating in the units or the consignments stranded at various locations.

The sector, which witnesses Rs 1,000 crore annual turnover in Karur alone, was recently asked to pay GST, resulting in increase in prices. The increased rates have hit the business as the State government stopped distributing mosquito nets. As a result, the production here has crashed from 1200 MT to 600 MT of nets.

The producers claim the peak season for the sale of mosquito nets is April to June that is prior to monsoon and both the manufacturer and sellers get returns for their investment during this period. However, the lockdown has spoiled all our prospects this year.

According to Kupparao, Adviser Karur Mosquito Net Producers Association, units send the stocks to retailers in northern states from February and collect the money in March. This time too, the stocks were despatched in Feb, but got stranded due to lockdown.

We learn that they would reach only after the relaxation of lockdown. Thus, the units are in a dilemma whether the stocks would reach the destination on time or not”, Kupparao said.

He further said, while several units are struggling to pay the EB bills ranging between Rs 1 lakh and Rs 5 lakh, meeting other expenditure would be a massive burden. “Since we fear a massive loss, the governments should exempt GST for our products which would give some relief to us,” he said.