Summary:
Coimbatore, Sept 4 (PTI): Textile trade bodies have welcomed the announcement of the Tamil Nadu government on the withdrawal of one per cent cess on purchase of cotton and cotton waste.
Chairman of Confederation of Indian Textile Industry T Rajkumar told reporters here on Saturday that the scrapping of cess, which was a long-pending demand, would benefit cotton farmers and the industry across the cotton textile value chain.
The Southern India Mills" Association lauded the decision on the revoking of the tax as it would benefit two lakh farmers and help increase cotton production from five lakh bales to 25 lakh bales by 2030.
This would also encourage farmers to switch over to cotton crop from other cash crops and may benefit 10 lakh farmers in the long run, the trade body said.
The removal of the cess would attract several private cotton traders and the Cotton Corporation of India to open depots in the State and sell the cotton on a daily basis to small spinning mills, the trade bodies said adding that this would reduce the working capital requirements and also the cost, time and transportation.
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