Madhya Pradesh Textiles Mills Association has asked for cuts on entry tax and mandi tax on cotton and other raw materials.
Association has also requested waiving electricity charges for cotton ginning and pressing activities during low season. Other states do not levy minimum power charges during off-season.
Textile industry has been complaining about certain taxes that increase production costs and affect its competitiveness, the association members observed.
State Government has offered a package for textile units only.
Cotton and other raw materials for industry will be exempted from one percent entry tax to bring it level with neighbouring state of Mahrashtra.
Mandi tax on cotton will be reduced from two percent to one percent without surcharge of 0.2 per cent, association statement said.
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, cotton yield remains very low in the state.
Cotton yield is about 150-175 kg per hectare against national average of 399 kg, pointed out a ginning unit owner.
State Agriculture Department has not actively participated in cotton development programme drawn up by Cotton Technology Mission, launched by Centre, according to an industry source.
Association suggested minimum wages on basis of raw quantum ofproduction and not on a time-rate basis. Special Economic Zone (SEZ) - like concessions for textiles mills to encourage them to cluster has also been asked for by association.
