Tamilnadu Chief Minister, M.K.Stalin has announced the removal of 1% Cess on Cotton and Cotton waste which was demanded by farmers across the country.
Coimbatore: The Tamilnadu Chief Minister, M.K.Stalin has announced the removal of 1% Cess on Cotton and Cotton waste, the announcement was made on Sunday.
Farmers all around the country were demanding removal of this 1% cess as there were slight financial crisis due to the levy of AMC Cess. The SIMA thanked the CM for the above announcement and stated this was a path-breaking move.
A joint Press Meet was held at the SIMA Conference Hall, Coimbatore today, in which Mr.T.Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) and Mr.Ravisam, Deputy Chairman, The Southern India Mills’ Association (SIMA) thanked the Hon’able Chief Minister for making an historic announcement.
Tamil Nadu Agricultural Market Committee started levying 0.5% Cess on Cotton and Cotton Waste since 1959 and the same was increased to 1% from the year 1987. The Cess has to be paid on every sale of cotton produced out of Tamilnadu, any rejected bales sourced from other States, and also on Cotton Waste, a bi-product generated while producing yarn in the spinning mills.
Tamil Nadu which accounts around 45% of the spinning capacity including 80% of the SSI spinning units, around 50% of the open-end spinning units, handlooms, and power loom weavers across the Tamilnadu especially, Coimbatore, Tirupur, Erode, Salem, Namakkal, Karur, Madurai, Virudhunagar, were affected with this 1% AMC Cess. No other State in the country levies Cess on Cotton Waste.
This removal of AMC cess will benefit large number of cotton farmers in Tamil Nadu, especially paving way to increase production of Cotton from 5 lakh to 25 lakhs bales. This would also increase SGST as there will be additional growth though revenue implications will be present.
They further stated that “This would attract several private cotton traders and Cotton Corporation of India to open depots in Tamil Nadu and sell the cotton on a daily basis to the SSI spinning mills. They have further stated that this would considerably reduce the working capital requirements and also the cost, time, and transportation.”
Farmers all around the country were demanding removal of this 1% cess as there were slight financial crisis due to the levy of AMC Cess. The SIMA thanked the CM for the above announcement and stated this was a path-breaking move.
A joint Press Meet was held at the SIMA Conference Hall, Coimbatore today, in which Mr.T.Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) and Mr.Ravisam, Deputy Chairman, The Southern India Mills’ Association (SIMA) thanked the Hon’able Chief Minister for making an historic announcement.
Tamil Nadu Agricultural Market Committee started levying 0.5% Cess on Cotton and Cotton Waste since 1959 and the same was increased to 1% from the year 1987. The Cess has to be paid on every sale of cotton produced out of Tamilnadu, any rejected bales sourced from other States, and also on Cotton Waste, a bi-product generated while producing yarn in the spinning mills.
Tamil Nadu which accounts around 45% of the spinning capacity including 80% of the SSI spinning units, around 50% of the open-end spinning units, handlooms, and power loom weavers across the Tamilnadu especially, Coimbatore, Tirupur, Erode, Salem, Namakkal, Karur, Madurai, Virudhunagar, were affected with this 1% AMC Cess. No other State in the country levies Cess on Cotton Waste.
This removal of AMC cess will benefit large number of cotton farmers in Tamil Nadu, especially paving way to increase production of Cotton from 5 lakh to 25 lakhs bales. This would also increase SGST as there will be additional growth though revenue implications will be present.
They further stated that “This would attract several private cotton traders and Cotton Corporation of India to open depots in Tamil Nadu and sell the cotton on a daily basis to the SSI spinning mills. They have further stated that this would considerably reduce the working capital requirements and also the cost, time, and transportation.”