News & Insights

Waiving of 1% Market Cess on sale of Cotton Bales under depot sales scheme.

Published: December 9, 2020
Author: Manali bhanushali

As you all are aware that maximum number of spinning mills of India are in Tamil Nadu. They have a requirement of 200 lakh bales and Tamil Nadu state produces about 5 lakh bales. In order to meet the gap, they procure it from other states. Due to this the mills have to face a long lead time after making the payment and in getting the stock delivered.
In order to help the mills, CCI has proposed to introduce depot sale scheme in the state of Tamil Nadu. Under this scheme, CCI will transport cotton bales to the state and store in CWC godowns. This will reduce the lead time for the mills from 20 days to 1 or 2 days and they wouldn’t have to keep large inventory to meet unforeseen disruption in cotton supply.
In this regard, CCI has requested Shri K. Shanmugam, Chief Secretary, Government of Tamil Nadu to kindly exempt 1% cess on cotton bales brought by CCI from other states for deport sales in Tamil Nadu.
A copy of the communication is attached for vour kind perusal and information.

Related Posts