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KANCHEEPURAM: Weavers's unions and silk manufacturers in Kancheepuram will organise a joint rally on February 28 demanding the reduction of silk and zari prices.

This was decided at a joint meeting of weavers?unions and silk manufacturers's union held in the town.

The union representatives and silk manufacturers would also meet the Chief Minister, Union Textile Minister and Finance Minister and urge them to take steps for reducing the prices of silk and zari.

Pointing out that about five lakh people in Kancheepuram, Kumbakonam, Arani, Salem and Coimbatore districts were employed in silk industry, the joint meeting of union representatives and silk manufacturers said the price of zari had gone up by 30 percent and the price of raw silk had increased to Rs 1800.

This increase in prices had affected the sale and production of silk sarees, and all those involved in the silk industry were facing loss of employment, they said, and demanded that the 33.66 percent tax collected by the State Government and four percent sales tax levied should be cancelled.

They also appealed to the Central Government to devise a new formula to determine the price of silk.

Noting that the price of zari was being determined as per the price of gold and silver, they said that the sales tax on zari would affect the silk industry. The union leaders and silk manufacturers also felt that the four percent sales tax would be converted to 12 percent with the introduction of Value Added Tax system from April 1.

They urged the State Govt to cancel the tax on zari and subsidise silver and gold used for making zari to protect the industry. The meeting also appealed to the State Govt to pay the arrears for the clothes procured by Co-optex so that the co-operative societies could function without difficulty