Punjab reduces market fee on cotton purchase

Punjab reduces market fee on cotton purchase
Rajay Deep
Tribune News Service

Bathinda, April 2
Bringing permanent relief to the cotton factory and ginning mill owners, Punjab Chief Minister Parkash Singh Badal today announced the reduction of 1 per cent in the market Fee levied on cotton purchase in the state. The Rural Development Fund (RDF) cess imposed on cotton purchase has also been reduced by 1 per cent.
Earlier, accepting the demand of the Punjab Cotton Factories and Ginners’ Association the state government had temporarily slashed the Market Fee and the Rural Development Fund (RDF) from 2 per cent to 1 per cent (each) in October 2010 for up to March 31, 2011. After the decision, both taxes are now at 1 per cent.
The CM urged association members to put 0.25 per cent of the total cotton purchase amount in the state government’s recently-created fund for the Cancer patients’ help as a goodwill gesture.
Finding no unanimity among the association members, Badal said: “I am not compelling you so if you all reach an amicable decision, do inform me later on.”
The CM added that major cotton madis of Malwa will be provided with well-equipped fire-brigades to counter any fire tragedy during the cotton arrival season.
Badal added, “I wish this region which is known as Cotton belt of the state to be developed a hub of textile mills. If it happens, people will enjoy the benefits of value addition.”