The Southern India Mills Association (SIMA) has urged Edapadi Palaniswami, the Chief minister of Tamil Nadu to remove 1 per cent Agricultural Market Committee Cess on cotton and cotton waste for the state budget of 2017-18. The GST committee has asked all the states to decide on their level of cess before the bill is rolled out in July.
M Senthilkumar, Chairman of SIMA, said that the textile industry of Tamil Nadu is an awkward position in terms of competition and the other states have already announced sops for the benefit of the textile industry. The cost of production for spinners in Tamil Nadu is Rs 15 more than the other states as they need to get cotton bales from the other states at a rate of Rs 6 per kg, according to media reports.
Senthilkumar said that removal of cess on cotton and cotton waste will benefit the spinners and create a level-playing field.