Tamil Nadu Chief Minister MK Stalin has announced that the 1 percent entry tax on cotton brought to Tamil Nadu from abroad will be abolished. Stalin addressed the Tamil Nadu Legislative Assembly on Saturday, Sept 4.

Stalin said, "The DMK government has implemented various welfare schemes for the benefit of weavers. Following this, I am issuing an important notice under Rule 110 for the benefit of weavers, small and micro enterprises who depend on the weaving industry”.

Stalin said the levy of 1 percent fee by the market committee ''is cancelled,'' and an amendment Bill would be passed in the ongoing Assembly session. Under the Tamil Nadu Agricultural Produce Marketing Act 1987, 1 percent fee is levied on cotton and cotton waste -based on the sale value- by the market committee.

While such a fee should be levied only on cotton bales, cotton and cotton waste also face the one per cent fee, Stalin said. Due to this, small mills faced huge difficulties and withdrawal of levy on cotton has been a long time demand of weavers and entrepreneurs, he added. During a consultation after his government assumed office on May 7 this request was reiterated. Considering such requests, the one percent market levy is cancelled, he said.

NOtably, Tamil Nadu textile industry accounts for one-third of the Indian textile industry. The number of spinning mills in Tamil Nadu is 1,570. The yarn spun through these threads accounts for 45 percent of the total yarn capacity of the country. About 95 percent of the cotton required for spinning mills in Tamil Nadu is imported from other states.

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