India’s Southern India Mills’ Association (SIMA) has urged the State Government of Tamil Nadu to remove 1 per cent Agricultural Market Committee Cess on Cotton and Cotton Waste in the State Budget for the financial year 2017-18.
“The Committee on GST had asked all states to decide at their level the issue 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,” said M Senthilkumar, Chairman, SIMA.
It may be noted that the cost of production in Tamil Nadu is Rs. 15 higher compared to other states as spinners have to transport cotton bales from other states at a rate of Rs. 6 per kg. SIMA represented the matter to Edapadi Palaniswami, Chief Minister, Tamil Nadu (India) and requested him to create a level playing field for the benefit of the spinners.