By IANS
Ahmedabad : The All Gujarat Cotton Ginners Association (TAGCGA) has made it clear that packing charge of Rs 80 on purchase of every candy of cotton (Rs 40 per bale) will not be rolled back, as demanded by cotton buyers.
The step has been taken to increase awareness about better packing, Dilip Patel, president of the association, said here Friday. The increased charge has come into force from Oct 1.
The South Indian Cotton Association (SICA) has protested the levy, arguing that it would hurt trade. The levy was an add-on that the industry could ill afford, it said.
The SICA stated that Gujarat, which accounted for a third of India’s total output of 30 billion bales, “may leverage their quality ginned cotton to stake the prices in the market”. The move by Gujarat ginners could prompt other cotton producing states to follow suit.
The packing charge, however, does not prevent buyers from concluding contracts for cotton at lower prices. TAGCGA feels that buyers will not experience any loss and at the same time avoid losses worth millions due to damaged cotton.
In a communication to all textile mills including spinning units and exporters, the association has maintained that the decision represented a bold step and was designed to increase the value of Shanker-6 variety of cotton, which is very popular worldwide.
“The step has been taken to further enhance the brand value of Gujarat cotton,” said Patel.