: Southern India Mills Association today urged the Tamil Nadu Chief Minister to announce removal of one per cent Agricultural Market Committee Cess on Cotton and Cotton waste in the State budget for the year 2017-18.
In a representation to Chief Minister Edapadi Palaniswami SIMA Chairman M Senthilkumar said that the Committee on GST had asked all states to decide at their level the isse of the cess as GST is likely to come in force from July next.
With all states already announcing sops for the benefit of the textile industry, the industry in Tamil Nadu was in an awkward position as far as competition was concerned, he said.
Compared to other States the cost of production of spinners in Tamil Nadu was Rs 15 higher as they have to transport cotton bales from other states at a rate of Rs six per kg.
It may be recalled that the then Chief Minister, late Jayalalithaa had assured to take steps to abolish the cess, when former SIMA chairman S Dinakaran had met her on December seven in 2012, he said.
In order to create a level playing field, SIMA requested the government to abolish the cess on cotton and cotton waste for the benefit of the spinners,Senthilkumar said.
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