MP textile mills body asks for sops

The Madhya Pradesh Textiles Mills Association has asked for cuts on entry tax and mandi tax on cotton and other raw materials. The association also wants waiving cotton ginning and pressing activities from electricity charges during the low season because these are "seasonal activities".

The association has made suggestions on the state government's proposal to amend the Industrial Promotion Policy of 2004. "The textile industry has been complaining about certain taxes that are adversely affecting their cost of production, and having a direct impact on their competitiveness," the association said in a statement.

"Cotton and other raw materials for the industry will be exempted from 1 per cent entry tax to bring parity with the neighbouring state of Mahrashtra. Mandi tax on cotton will be reduced from 2 per cent to 1 per cent (as in Maharasthra) without any surcharge of 0.2 per cent," the association statement said.

The state government has offered a package for textile units only. That, according to sources, benefits bigger units. There are 201 ginning, 14 pressing and 94 composite units in Madhya Pradesh. The state is one of the major cotton-growing states with an annual production of 700,000-800,000 bales. However, the cotton yield remains very low in the state.

"The per hectare yield of cotton is very low, say, 150-175 kg per hectare, against the national average of 399 kg," said a ginning unit owner, adding, "our (ginning) factories are backdated and the state government has not made much effort to improve the cotton quality."

The state agriculture department has not actively participated in the cotton development programme drawn up by the Cotton Technology Mission, launched by the Centre, according to an industry source.

Raising the issue of cotton-ginning and -pressing units, the association said the state electricity board levies electricity charges on these units, which remain idle during the off season, while no other state levies minimum power charges during the off-season.

The association wants minimum wages to be set on the basis of raw quantum of production and not on a time-rate basis. The association has also demanded SEZ-like concessions to the textiles mills to encourage them to cluster.

Cotton cultivation, ginning, pressing, spinning, weaving, knitting, processing and garmenting should be treated as thrust areas, according to the association.