Southern India Mills Association (SIMA) today appealed to Chief Minister Edappadi K. Palaniswami to announce the removal of one per cent Agricultural Market Committee Cess on cotton and cotton waste in the State budget.

In a representation to the Chief Minister, SIMA Chairman M. Senthilkumar said that the committee on GST has asked all the States to decide with regard to the cess at their level, as GST is likely to come in force from July next.

“With all the States already announcing sops for the benefit of textile industry, the industry in Tamil Nadu was in an awkward position, as far as competition was concerned,” he said.

Compared to other States the cost of production of the spinners in Tamil Nadu was Rs.15 high, as they have to transport cotton bales from other States at a rate of Rs.six per kg.

Former Chief Minister Jayalalithaa had assured to take steps to abolish the cess, when former SIMA chairman, S Dinakaran had met her on December 7 in 2012, he said.

“In order to create a level playing field, the spinners request the government to abolish the cess on cotton and cotton waste for the benefit of the spinners,” Senthilkumar said.