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Chairman of Confederation of Indian Textile Industry T Rajkumar told reporters in Coimbatore 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.
By Press Trust of India, Coimbatore
PUBLISHED ON SEP 05, 2021 12:13 AM IST
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 200k farmers and help increase cotton production from 500k bales to 2.5 million bales by 2030.
This would also encourage farmers to switch over to cotton crop from other cash crops and may benefit 1 million 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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