GST emerge as major poll issues for lock industry traders
By : PTI
Update: 2024-04-25 03:21 GMT
Aligarh: High GST rates, pandemic effect and Chinese locks the triple whammy undercutting the livelihoods of thousands of workers and traders in Uttar Pradesh's famed 'Tala Nagri' has emerged as a major concern this election and voters are looking for a candidate who will pull the lock industry out of the slump.
The Rs 4,000 crore industry of Aligarh, where lock making is likened to an art dating back to the Mughals, is not so robust anymore with shifting global market dynamics taking their toll.
With Lok Sabha elections just two days away, the clamour for decisive action that will save the livelihood of the estimated one lakh people dependent on the lock industry is growing. And at the centre of the problems, say industry insiders, are high GST rates, which in turn have led to a surge in Chinese lock imports.
"The steep GST rates have made it increasingly challenging for us to compete with Chinese locks flooding the market at significantly lower prices," said Omvir Singh, owner of a cottage lock factory.
Traditionally a BJP supporter, Singh said he would however like to give another chance to the ruling government in the upcoming elections.
"I was hopeful that the incumbent MP would be replaced because he did nothing for us in the past 10 years despite relying on our votes as we are his core-voter base but for Modi and Hindutva, I will give this government a last chance," he said.
Several smaller manufacturers indicated that they have been compelled to cease operations due to their inability to withstand the competition, coupled with the burden of high taxes and the adverse effects of pandemic-induced lockdowns on their businesses.
What they need, said several stakeholders, is a candidate capable of addressing their grievances and rejuvenating the industry's prospects.
Aligarh votes on April 26 in the second phase of the elections.
In the fray are incumbent BJP MP Satish Kumar Gautam, Samajwadi Party's Birendra Singh and Bahujan Samaj Party candidate Bunty Upadhyay.
Many in this western Uttar Pradesh town, once synonymous with the craft of lock making, were wary of being identified.
The workforce, estimated a lock unit owner, has dwindled to nearly half.
He highlighted the disparity in tax rates and production costs, which leads to a stark difference in prices that renders locally produced locks less competitive compared to the Chinese ones.
He also stressed the necessity for policies that bolster 'Make in India' initiatives, reduce GST rates, and address import challenges from China.
He pushed for a government that could lower GST rates and invest in automation technology to enhance competitiveness.
"We would want someone who could drive change in our dying industry and bring more innovations because the competition is fierce," he said.
The transition to GST at 18 per cent, replacing the former 5 per cent VAT, has triggered a cascade of issues, affecting even the workers whose wages have been cut.
Anita, a worker in 'Tala Nagri', said she and her colleagues work longer hours for less money.
"Machines remain idle, demand is low, and wages have not kept pace with rising living costs," she said.
Anita earns Rs 200 a day for nine hours of work in a windowless, cramped room. Her daily wage has increased by just Rs 50 since 2019, while inflation continues to soar.
"With a family of seven to support, most of my salary goes towards purchasing food, but even affording vegetables is a challenge now," she said.
Despite her hardships, Anita expressed her intent to vote for the 'kamal' (BJP's party symbol) due to a perceived lack of alternative options.
Her story finds resonance across the lock industry. While some like Anita continue to throw their support behind the BJP, there are also those seeking change.
Anita's colleague, who spoke on the condition of anonymity, is one of them.
"Bahut ho gaya ab (Enough is enough)," she said, feeding steel sheets into a roller, preparing them for the intricate lock production process. She wants an alternative that prioritises wage increases.
Against the backdrop of the elections, she reflected on the challenges confronting artisans like herself.
"The steadily rising costs of raw materials and overheads have impacted our trade," she said, emphasising the need for governmental support to safeguard traditional industries like lock manufacturing.
The Rs 4,000 crore industry of Aligarh, where lock making is likened to an art dating back to the Mughals, is not so robust anymore with shifting global market dynamics taking their toll.
With Lok Sabha elections just two days away, the clamour for decisive action that will save the livelihood of the estimated one lakh people dependent on the lock industry is growing. And at the centre of the problems, say industry insiders, are high GST rates, which in turn have led to a surge in Chinese lock imports.
"The steep GST rates have made it increasingly challenging for us to compete with Chinese locks flooding the market at significantly lower prices," said Omvir Singh, owner of a cottage lock factory.
Traditionally a BJP supporter, Singh said he would however like to give another chance to the ruling government in the upcoming elections.
"I was hopeful that the incumbent MP would be replaced because he did nothing for us in the past 10 years despite relying on our votes as we are his core-voter base but for Modi and Hindutva, I will give this government a last chance," he said.
Several smaller manufacturers indicated that they have been compelled to cease operations due to their inability to withstand the competition, coupled with the burden of high taxes and the adverse effects of pandemic-induced lockdowns on their businesses.
What they need, said several stakeholders, is a candidate capable of addressing their grievances and rejuvenating the industry's prospects.
Aligarh votes on April 26 in the second phase of the elections.
In the fray are incumbent BJP MP Satish Kumar Gautam, Samajwadi Party's Birendra Singh and Bahujan Samaj Party candidate Bunty Upadhyay.
Many in this western Uttar Pradesh town, once synonymous with the craft of lock making, were wary of being identified.
The workforce, estimated a lock unit owner, has dwindled to nearly half.
He highlighted the disparity in tax rates and production costs, which leads to a stark difference in prices that renders locally produced locks less competitive compared to the Chinese ones.
He also stressed the necessity for policies that bolster 'Make in India' initiatives, reduce GST rates, and address import challenges from China.
He pushed for a government that could lower GST rates and invest in automation technology to enhance competitiveness.
"We would want someone who could drive change in our dying industry and bring more innovations because the competition is fierce," he said.
The transition to GST at 18 per cent, replacing the former 5 per cent VAT, has triggered a cascade of issues, affecting even the workers whose wages have been cut.
Anita, a worker in 'Tala Nagri', said she and her colleagues work longer hours for less money.
"Machines remain idle, demand is low, and wages have not kept pace with rising living costs," she said.
Anita earns Rs 200 a day for nine hours of work in a windowless, cramped room. Her daily wage has increased by just Rs 50 since 2019, while inflation continues to soar.
"With a family of seven to support, most of my salary goes towards purchasing food, but even affording vegetables is a challenge now," she said.
Despite her hardships, Anita expressed her intent to vote for the 'kamal' (BJP's party symbol) due to a perceived lack of alternative options.
Her story finds resonance across the lock industry. While some like Anita continue to throw their support behind the BJP, there are also those seeking change.
Anita's colleague, who spoke on the condition of anonymity, is one of them.
"Bahut ho gaya ab (Enough is enough)," she said, feeding steel sheets into a roller, preparing them for the intricate lock production process. She wants an alternative that prioritises wage increases.
Against the backdrop of the elections, she reflected on the challenges confronting artisans like herself.
"The steadily rising costs of raw materials and overheads have impacted our trade," she said, emphasising the need for governmental support to safeguard traditional industries like lock manufacturing.