The openend spinning mills in Tamil Nadu have reiterated their demand for removing of Market Committee cess on waste cotton, which is a uncooked materials utilized by these mills.
G. Arulmozhi, secretary of Openend Spinners Affiliation, mentioned that 50 % of the 450 openend spinning mills within the State used cotton waste from textile mills as uncooked materials. The remaining used hosiery merchandise as uncooked materials.
Main worldwide manufacturers reminiscent of Nike and H & M had been concerned with sustainable merchandise and therefore purchased textile objects that used the yarn from the openend mills. The yarn made by the openend mills was consumed by powerloom items in your complete area, masking Karur, Somanur, Palladam, and Erode.
Nevertheless, in Tamil Nadu, the mills confronted challenges and competitors from the items in different States. This was due to the 1 % Market Committee cess levied on waste cotton.
The openeng mills within the State consumed practically 10 lakh kg, shopping for waste cotton from textile mills throughout the State and even from Gujarat and Andhra Pradesh.
Cotton waste was solely a by-product and it was not saved within the godowns of the federal government. The cess ought to have been eliminated after introduction of Items and Companies Tax, however was not performed so. And solely Tamil Nadu had the cess on cotton waste.
The Affiliation members had met the officers involved and the State Textile Minister a number of instances and sought removing of the cess on waste cotton. However, the federal government was but to inform removing of the cess. The business was going through a disaster now and the federal government ought to take away the cess to make the business aggressive, he mentioned.