The South India Spinners Association (SISPA) has decided to draw the attention of the Centre and State governments to provide a level playing field and enhance competitiveness of the smaller spinning units in the State.

At the 24th annual general meeting of the association, SISPA President Varatharajan appealed to the Centre to bring down the duty on synthetic fibres (presently at 12.36 per cent) on par with cotton.

“Synthetic yarn spinning units faced inconsistent supply of synthetic fibres as this is supplied by three manufacturers – Reliance Industries, Indo Rama Synthetics and Bombay Dyeing. Mills which need to import the fibre are forced to pay 23 per cent duty, making the yarn less competitive in the domestic market. There is, therefore, an urgent need to reduce the duty on par with cotton,” the SISPA President said and pointed out that the country is positioned well to manufacture and supply yarn and fabrics. But inadequate export incentives hampered the trade.

The association has resolved to request the Centre to provide an export incentive of 7 per cent to encourage consistent and substantial export volumes.

Varatharajan reiterated a long-pending demand towards reduction of the Hank Yarn Obligation from 40 per cent to 10 per cent and the need to redirect Cotton Corporation of India to function as a bridge between the cotton farmer and the mill sector and not a trading body.

Reverting to State-specific issues, the association has appealed to the Tamil Nadu government to reduce VAT on cotton, cotton yarn and synthetic yarn from 5 per cent to 2 per cent, abolish the one per cent cess on sale of cotton and cotton waste and facilitate marine discharge by establishing processing centres in coastal areas for cost-effective processing of yarn, fabrics and finished goods.

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