South India Spinners Association (SISPA) has appealed to the Tamil Nadu government to reduce VAT on cotton, cotton yarn and synthetic yarn from 5 percent to 2 percent, abolish the one percent cess on sale of cotton and cotton waste and facilitate marine discharge by establishing processing centres in costal areas for cost effective processing of yarn, fabrics and finishing goods, to make the state's spinning industry viable, when sold within or in other states.

In another resolution, SISPA appealed to the government to create a level-playing field among all electricity consumers and allow even small and medium enterprises to purchase power under Open Access System.

It also urged the government to provide capital subsidy for purchase of new energy efficient motors and energy saving electrical equipment to make the industry in the state energy efficient.

Asking the Centre to provide seven percent subsidised interest for procurement of cotton for processing in the state, SISPA also sought seven percent export incentive to encourage textile industry to export consistently and considerably.

The SISPA President said and pointed out that the country is positioned well to manufacture and supply yarn and fabrics. But inadequate export incentives hampered the trade. Synthetic yarn spinning units has been facing inconsistent supply of synthetic fibres as this is supplied by three manufacturers – Reliance Industries, Indo Rama Synthetics and Bombay Dyeing. Mills which need to import the fibre are forced to pay 23 percent duty, making the yarn less competitive in the domestic market. There is an urgent need to reduce the duty on par with cotton.

Varatharajan reiterated a long-pending demand towards reduction of the Hank Yarn Obligation from 40 percent to 10 percent and the need to redirect Cotton Corporation of India to function as a bridge between the cotton farmer and the mill sector and not a trading body.