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Related Keywords: after November, contributed to the bullish trend, Delay in harvest of fibre crop, downward movement in price, firmed up cotton prices, Gujarat, increase in buying by millers, key growing regions, Madhya Pradesh and Telangana, Maharashtra, other states, price rise temporary phenomenon, spot and futures markets, unexpected rains

Delay in harvest of the fibre crop in the key growing regions of Maharashtra, Gujarat, Madhya Pradesh and Telangana and other States due to unexpected rains have firmed up cotton prices over the past few days. According to Biren Vakil, an analyst with Ahmedabad-based Paradigm Commodities, the price rise is a temporary phenomenon. They may see some downward movement in prices after November. But till then, some more upside can be seen.

Related Keywords: dumping yarn into Punjab, E-Trip system, increase tax revenue, losing out, other states, Punjab Spinners Association, Punjab Yarn Dealers Association, Punjab yarn industry, reducing VAT on yarn, to cheap yarn

Punjab yarn industry are losing out to cheap yarn coming from other states, making a serious dent on their business volume. After state government rolled back controversial E-Trip system, yarn makers in the state have now pitched for reducing VAT on yarn in order to compete with the commodity from other states.

Punjab levies 6.6 per cent VAT on yarn while some states like Gujarat, Uttar Pradesh, Rajasthan do not impose any tax on it, resulting into “dumping” of yarn into Punjab.