SISPA urges Indian govt to maintain minimum cotton stocks

04 Oct '12

2 min read

In order to ensure stability in prices of cotton, the South India Spinners Association (SISPA) has called on the Government of India to keep a minimum stock of cotton, prior to permitting exports.

The association also urged the Centre to restore the concession under the Technology Upgradation Fund Scheme (TUFS) for June 29, 2010, to April 27, 2011, when the Government kept it suspended.

In the resolution adopted at its recent AGM, SISPA noted that majority of the mills suffered heavy losses during last year, as the Centre allowed cotton exports even before the harvested cotton arrived in the domestic market, which resulted in price fluctuations.

Stating that the condition is no different this year, the association urged the Centre to firmly adhere to the decision taken by the Group of Ministries to keep a minimum stock of five million bales of cotton.

Reminding that awaiting allocation of funds, the Textile Ministry kept TUFS suspended for a 10-month period during 2010-11, SISPA called on the Centre to reinstate the scheme for the suspended period so as to allow qualifying mills to take advantage from it.

The association claimed that textile mills are currently finding it difficult to timely repay their machinery term loans availed under TUFS and requested the Government to order banks to allow a two-year moratorium period for loan repayment.

SISPA also urged the Tamil Nadu state government to slash the value added tax (VAT) on cotton produced within the state and on cone yarn from existing five percent to two percent.

Also, it mentioned that waste cotton being a waste and not an agricultural by-product, the one percent market committee cess levied on spinning mills should be abolished.

It also demanded that the state government should maintain uniformity in power-cut throughout the state.

Fibre2fashion News Desk - India

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