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Related Keywords: Cotton Advisory Board, cotton main raw material, domestic production might be less, hit acquisition prices for textile mills, import may be more than estimates, Indian Texpreneurs Federation, international cotton prices lower than Indian prices, mill gate price, South India Spinners Association, steep hike in cotton prices, Textile Industry

The textile industry may import more than the estimates as domestic production might be less than the expected 352 lakh bales and also international cotton prices are lower than the Indian prices. In the last few weeks, there has been steep hike in cotton prices, by about Rs.6,000 a candy which is a matter of concern to the textile industry for which cotton is the main raw material.

Related Keywords: appeal to TN government, cess on sales of cotton, cotton waste, cotton yarn and synthetic yarn from five percent to two percent, export incentives, reduce VAT on cotton, SISPA, South India Spinners Association

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.

Related Keywords: central sales tax, compared to production cost, for yarn and prices remaining low, hit due to market slowing down, South India Spinners Association, southern region, Textile mills, Value Added Tax

Textile mills in the southern region for the last six months are hit due to the market slowing down for yarn and prices remaining low, compared to the production cost. Further, textile units in the State also had to pay higher value added tax (five percent) compared to central sales tax (two percent) according to the South India Spinners’ Association.

Yarn made in other States and sold here was priced lower than the yarn made by the mills in the Tamil Nadu State.

Related Keywords: cotton production not sufficient, cotton yarn, high logistic cost, increase production cost, J Jayalalithaa, man made yarn, meet needs of mills, on cotton, reduce VAT to two percent, SISPA, source from other states, South India Spinners Association, urged TN chief minister

The South India Spinners Association (SISPA)stating that the cotton production in the state is not sufficient to meet the needs of mills are force to source it from other states have urged the Tamil Nadu Chief Minister J Jayalalithaa to reduce VAT on cotton, cotton yarn and man-made yarn from the present five percent to two percent.