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Tamil Nadu CM announces cancellation of one per cent market committee fee on cotton and waste cotton: Textile associations 'SIMA', 'SISPA', 'ITF', 'CITI', 'OSMA' welcome move
Rajagopal L SimpliCity · 05 Sept 2021
Coimbatore: For many years in Tamil Nadu, market fees such as market committee chess were levied on behalf of the Government of Tamil Nadu for cotton and waste cotton.
The Government of Tamil Nadu has been urging the Government of Tamil Nadu for many years to remove the market committee fee, saying that it is unreasonable to charge a market price for an item that is not sold in a regulated sales hall run by the Government of Tamil Nadu, including cotton and waste cotton, which is incorrectly added to the list of agricultural products and a one per cent market committee fee is charged. Representatives of various textile industry organizations who joined continued to make demands.
After the new government headed by DMK leader Stalin took over in Tamil Nadu, the representatives of the Tamil Nadu textile industry organizations had personally met the Minister of Textiles and submitted the request. The Chief Minister of Tamil Nadu Stalin has announced that the one per cent market committee fee on cotton and waste cotton will be cancelled under Rule 110 in the Tamil Nadu Assembly. The announcement has been well received by the Tamil Nadu textile industry. Representatives of textile industry organizations have thanked the Chief Minister of Tamil Nadu.
South Indian Spinners' Association (SISPA) President Selvan, Vice President Venkatesh, Honorary Secretary, Jagadeesh Chandran, among others, said in a statement, "The need to travel to states including Andhra Pradesh, Telangana and Gujarat to buy will be avoided and the cost of transportation will be greatly reduced. We met the Minister again in Chennai and reiterated our demand. There is no doubt that Tamil Nadu spinners will benefit greatly from the historic announcement made by the Chief Minister of Tamil Nadu today. On behalf of our association we would like to thank the Chief Minister of Tamil Nadu."
Prabhu Damodaran, Convener, Textile Entrepreneurs Federation of India (ITF), said, “The removal of the one per cent market committee fee on cotton is a very beneficial announcement for our textile industry. On behalf of our association, we would like to thank the Chief Minister of Tamil Nadu for focusing on this long-standing demand and removing the tax. As we follow the practice of buying cotton as a group through our organization we will try to take the initiative to talk to out-of-state ginning owners and keep the cotton stock here. This will increase the competitiveness of the Tamil Nadu textile industry."
In his inaugural address as President of the Tamil Nadu Open End Spinning Mills Association (OSMA), Arulmozhi said, “We express our heartfelt gratitude on behalf of our Association to Chief Minister Stalin for their announcement today. The executives of the textile industry organizations in Tamil Nadu have worked together and this joint venture has paid off today, so we express our heartfelt gratitude to the Government of Tamil Nadu on behalf of the Association."
Rajkumar, president of the Textile Federation of India (CITI), and Ravi Sam, vice-president of the South Indian Mills Association (SIMA), said, "This is a historic policy decision in India itself. The one per cent tax cut will immediately benefit about 2 lakh cotton farmers in Tamil Nadu. As the Government of Tamil Nadu plans to implement various schemes to increase Tamil Nadu cotton production from 5 lakh bales to 25 lakh bales by 2030, up to 10 lakh cotton farmers will benefit from the Chief Minister's announcement. Thus the state's GST tax will increase manifold. As the market fee has been waived, the Private and Indian Cotton Corporation will stockpile cotton in warehouses in Tamil Nadu and sell it daily to small and micro spinners.
This will significantly reduce the current capital requirement of the mills and the time to purchase the raw material and increase the competitiveness. One per cent cotton waste cotton tax exemption will increase the GST tax revenue of the state significantly as the mills will be able to procure all the waste cotton they need in Tamil Nadu. Multinational textile vendors will give more business to Tamil Nadu as they produce the most valuable textile products in the country from yarn made from the waste of Tamil Nadu handloom and powerloom weavers. Thus domestic and export sales will rise significantly. The new announcement will further benefit Tamil Nadu, which is already a new capital for the textile industry, and will create more new capital and create millions of jobs."
Selvaraj, General Secretary, South Indian Mills Association, was present.