From coffee to handlooms, GST rejig to boost Nagaland’s economy

NEW DELHI: The recent GST rate reforms reduced the tax rate to 5 percent on key agricultural and artisanal products of Nagaland, directly impacting affordability, competitiveness, and market access for local producers and entrepreneurs, the government said on Wednesday.

The state’s coffee growers, handloom weavers, bamboo artisans, and hospitality operators stand to gain from more competitive pricing. Overall, these reforms will support and strengthen Nagaland’s cultural and ecological heritage, an official statement said.

Handloom shawls and textiles, including GI-tagged Chakhesang shawls from Kohima, Phek, and Dimapur, will see improved market competitiveness, and the GST reforms will enhance weavers’ incomes, and support women artisans.

With the GST rate on handloom shawls and textiles reduced from 12 percent to 5 percent, items priced up to Rs 2,500 will now become approximately 6.25 percent cheaper, enhancing incomes for around 44,000 weavers.

The sector is primarily women-led, with weavers working on home-based looms and operating as micro-enterprises.

Tourism services covering tour operations, hotels, and homestays in Kohima, Dimapur, and Kisama are set to become more affordable. With the GST rate on hospitality services reduced from 12 percent to 5 percent, hotel rooms priced up to Rs 7,500 are expected to become about 6.25 percent cheaper.

Nagaland’s bamboo and cane sector employs approximately 13,000 individuals. With the GST rate on furniture and handicrafts reduced from 12 percent to 5 percent, prices are expected to fall by 6.25 percent, increasing affordability and artisanal incomes.

Coffee growers totalling nearly 2,200 registered growers will benefit from a reduction in GST on roasted beans from 12 percent to 5 percent and on coffee extracts from 18 percent to 5 percent. This change is expected to lower overall costs by 6.25 percent to 11 percent.

Nagaland coffee has carved a niche in South Africa, Bahrain, UAE, Germany, Italy, Netherlands, and across Southeast Asia, the release noted. (IANS)

Also Read: Nagaland varsity study explores tea blossoms’ potential for wellness products, rural growth