Home / Knowledge / News / Textiles / Haryana cotton ginners' strike leaves farmers high and dry
Haryana cotton ginners' strike leaves farmers high and dry
27
Oct '15
An indefinite strike by cotton ginners in Haryana to protest against the government's alleged failure to accede to their demand of the reduction of value added tax (VAT) on cotton, has left farmers in the lurch.

According to media reports, cotton farmers at the Sirsa grain market have found no takers for their produce due to the indefinite strike of cotton ginners across the state. Sirsa is the largest producer of cotton in the state, contributing almost one third of the total production of the crop.

Close to 150 cotton ginners in Haryana have gone on strike, which has led to non-purchase of crop being brought by growers in the open market.

The Haryana Cotton Ginners Association (HCGA) called for a shutdown of their units and no purchase of cotton.

HCGA President Sushil Mittal said the ginners have gone on indefinite strike as the state government has failed to resolve the issue of tax refund on inter-state sale of cotton crop. He claimed that about 5,000 bales per day are arriving in markets for sale but the ginners are not buying the crop.

Mittal said the ginners were losing Rs 100 per quintal on cotton because of non-payment of full tax refund on cotton.

Gurpreet Singh Nagpal, general secretary of the Sirsa District Cotton Ginners Association said that compared to their counterparts in Punjab, they were not being provided level field. Haryana ginners pay 4.2 per cent VAT on cotton and get back merely 2 per cent CST because they have to sell their product out of Haryana. Punjab ginners are able to recover 100 per cent of the VAT paid by them since the state has a large number of textile mills.

The ginners' fight with the government has left cotton farmers in dire straits. Farmers have been arriving at markets only to find no buyers. Cotton crop in Haryana has been severely damaged this season in a massive whitefly pest attack. The state's cotton production is expected to dip to 15 lakh bales against 24 lakh bales last year. Out of 5.83 lakh hectares where cotton was grown, 3.06 lakh hectares had suffered damage in the whitefly attack.

The Cotton Corporation of India (CCI), which buys cotton from farmers to save them from distress, has not yet decided whether to buy the crop. A CCI official said even if it decides to buy it, the government support price of Rs 4000 per quintal may not find takers among farmers when the market rate of cotton in Rs 4700. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search