Textile spinners demand removal of market cess

 thehindu.com  11/08/2019 18:31:39 

The openend spinning mills in Tamil Nadu have reiterated their demand for removal of Market Committee cess on waste cotton, which is a raw material used by these mills.

G. Arulmozhi, secretary of Openend Spinners Association, said that 50 % of the 450 openend spinning mills in the State used cotton waste from textile mills as raw material. The rest used hosiery products as raw material.

Leading international brands such as Nike and H & M were interested in sustainable products and hence bought textile items that used the yarn from the openend mills. The yarn made by the openend mills was consumed by powerloom units in the entire region, covering Karur, Somanur, Palladam, and Erode.

However, in Tamil Nadu, the mills faced challenges and competition from the units in other States. This was because of the 1 % Market Committee cess levied on waste cotton.

The openeng mills in the State consumed nearly 10 lakh kg, buying waste cotton from textile mills across the State and even from Gujarat and Andhra Pradesh.

Cotton waste was only a by-product and it was not stored in the godowns of the government. The cess should have been removed after introduction of Goods and Services Tax, but was not done so. And only Tamil Nadu had the cess on cotton waste.

The Association members had met the officials concerned and the State Textile Minister several times and sought removal of the cess on waste cotton. But, the government was yet to notify removal of the cess. The industry was facing a crisis now and the government should remove the cess to make the industry competitive, he said.

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