Cotton transportation needs to be streamlined and made more efficient, as movement of Cotton from Cotton producing states to Cotton consuming states has to be cost effective and time saving with bulk transportation, utilizing Road, Rail and water systems.
He called for increased financial liquidity to the entire Cotton farm to fibre supply chain, with no shortage or obstacles for funds, by adopting need based commodity funding instead of the time old Balance Sheet/norm based procedures.
Another important issue was taxation to be rationalized as cotton is no more an essential commodity per EC Act. The Market Committee cess under APMC act is to be abolished. The recent trend of continuous firming of rupee has eroded the value of exports causing serious problems for the Trade and Industry.
This needs to be compensated fully. SICA has appealed to the Govt to abolish the CST on Cotton at 3% immediately. The large number of Mills situated in Tamil Nadu and other Southern States, are presently getting their cotton from various cotton producing States in the North incurring huge costs.
The abolition of CST is already slated to take place in three years time. But if it is done now, it will help the Industry which is hard hit by the Rupee-Dollar crisis.
India is the second largest producer of cotton in the world. The Farmers economy has to be strengthened by various methods including transfer of technology by encouraging more and more NGO participation.
SICA has proposed to take the lead in forming an Agro Foundation to focus in Farmer related issues. This meeting also discussed the impact of the demand of packing charges payable additionally, by few Ginners in Gujarat state from the Consuming Mills in South.
This demand is not acceptable to the Cotton consuming Mills as this will increase the cost of cotton, the basic Raw material. SIMA-CDRA has called for Special Purpose Vehicle(SPV) for ELS cotton with public and private participation.
Recent report indicates, 114 market yards have been modernized and 113 are under completion, 588 G & P units modernization has been completed and 351 is under progress under MM III & IV respectively.
Under MM II a total of 6261 .61 lakhs has been spent both by Central and state Governments and the balance unspent is around 1521 lakhs.
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-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
