Home / Knowledge / News / Textiles / Union Textiles Minister inaugurates two Cotton Sales Depots
Union Textiles Minister inaugurates two Cotton Sales Depots
08
Feb '10
Thiru. Dayanidhi Maran, Union Textiles Minister inaugurated two Cotton Sales Depots at Coimbatore and Rajapalayam, which have been set up by the Cotton Corporation of India Limited (CCI), under the Depots Sale Scheme.

While speaking on the occasion in Coimbatore, Thiru Maran said that these depots will store bales from cotton producing States like Gujarat and Maharashtra and sell to local mills. Mills will be able to procure quality cotton from these depots at their doorstep, and this measure will enable the textiles mills to reduce the yarn cost by approximately Rs. 2 per kg, He further said that to help small mills, whose requirement is not very large, these depots will also sell minimum quantity of 50 bales of cotton. This initiative will redress the major problems facing the textiles mills, particular spinning, in Tamil Nadu, said the Textiles Minister.

Cotton Corporation of India (CCI) has formulated the Depot Sale Scheme for areas where textiles mills are clustered for sale of cotton directly to mills. Initially the States of Tamil Nadu, Punjab and Himachal Pradesh have been chosen, said the Textiles Minister. The major obstacle, which is hindering the implementation of the Depot Sale Scheme, is levy of local purchase tax @ 4%, levied by the cotton dispatching State. Thereafter, the State, where the cotton is sold, levies 4% VAT on the sale of cotton, said Thiru. Maran. The Minister said that CCI will bear an additional cost of 2% over and above CST, and the State Governments of Punjab, Himachal Pradesh and Tamil Nadu have been approached for exempting of VAT on sale of cotton bales through Depot.

Thiru. Maran said that the Government of Tamil Nadu had exempted the applicability of 4% VAT and this has made viable the opening of depots in Tamil Nadu. The response from other States is awaited. The Government will closely monitor the progress of the Scheme and if it is successful additional depots in Tamil Nadu will be established, said the Minister.

The Textiles Minister said that the Tamil Nadu has a vibrant textiles industry with 868 spinning mills and 25 composite mills, of these 310 and 13 are located in an around Coimbatore, respectively. There are 976 spinning units in small scale sector in Tamil Nadu, which provide employment to approximately 38,380 workers, of which 563 spinning units are in Coimbatore, and provide employment to approximately 17,886 workers. Tamil Nadu has been a major beneficiary of Technology Upgradation Fund Scheme (TUFS), of the Rs. 67,222 crore subsidy disbursed under the Scheme, Tamil Nadu has got 18,933 crore, which is 28% of the total subsidy disbursed, Thiru. Maran added .

The Minister said that Maharashtra and Gujarat are the major production States and Tamil Nadu is the minor producers of cotton with yearly production of 5 lakh bales (85 million kg.). The consumption of cotton in Tamil Nadu is approximately 1,658 million kg. which mainly comes from Gujarat and Maharashtra for spinning in Tamil Nadu, said Thiru. Maran.


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Cross-border e-com pilot zones in 22 Chinese cities

Apparel/Garments | On 21st Jul 2018

Cross-border e-com pilot zones in 22 Chinese cities

As part of its ‘firm commitment’ to open up, China has identified 22...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Top executives
Textile industry, India

The event should be organised every year

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Urmil Arya

Sushila International, a well established textile organisation established ...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Eamonn Tighe
Nature Works LLC

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search