KARNATAKA

COTTON
ASSOCIATION
ABOUT
KARNATAKA COTTON ASSOCIATION

Karnataka Cotton Association (KCA) represents

Cotton Ginners, Traders and Exporters throughout
Karnataka.

KCA interacts with State Government, APMC to

address the issues related to trade and industry.

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KCA educates farmers by
conducting seminars on how to
cultivate cotton to increase yield
and quality of cotton and
controlling the pest, with the help
of scientists from Agricultural
Universities.

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 KCA conducts seminars for our
members to educate about
taxation, export formalities,
KCA conducting seminars for our quality improvements to improve
members to educate about taxation,
their trade.
export formalities, quality improvements
to improve their trade.

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 ACTIVITIES
OF KARNATAKA COTTON
ASSOCIATION
PREAMBLE
OF KCA

Karnataka is one of the major cotton growing state in India which

produce between 25 to 35 lakh bales of cotton every year.

Quality of which is 29 to 36 mm, the best available in India.

Cotton is a cash crop for farmer also

and it generate more and more
employment in agricultural sector
especially in rural areas.
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Even after growing such a
good quality of cotton,
farmers are unable to get
competitive rates compared
to that of other states.

This is because, we are

unable to consume same in
our state, due to lack of
required spinning capacity.

We are consuming <10%

only against what we grow.

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Presently we have around
3,50,000 spindles working in
Karnataka.

Out of which around 2,00,000

spindles are consuming cotton
around 2,00,000 bales per annum.

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Karnataka requires
further 13 – 15 lakh
spindles which can just
consume 50% of cotton
grown.

This will create

employment for
2 Lakh people (by way of
value addition activities)
and more remuneration
to farmers.
The initiative of our State
Government in brining up the
textile policies has so far, not
yielded the expected results.

We found that the existing

policies are not sufficient to
bring more investment when
compared with the policies of
other states.

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SUGGESTION We suggest changes for the
new policy which government
IN TEXTILE POLICES OF is likely to bring for the years
2018-2023.
GOVT. OF KARNATAKA
The following table indicates:

Incentives & Concessions

sought for new Ginning,
Spinning Mills
and
Expansion and Modernization
of existing Ginning and
Spinning Mills

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INCENTIVE OFFERED IN 2013-
2018
(a) Credit linked Capital
Subsidy
(i) General Category
(b) Interest Subsidy
(c) Power Subsidy
(d) Tax Incentive
(e) Skill Development
(f) Reimbursement of PF/ESI,
etc
(g) Stamp Duty reimbursement
Note:- Apart from the above, other incentives shall continue as per the old textile policy.
Investment Bracket Incentives offered
MSME Projects
20% of the Fixed Asset
(upto Rs.10 Cr)
Rs.10 Cr. To Rs.25 20% of the Fixed Asset or
Cr. Rs.3 Cr whichever is less
20% of the Fixed Asset or
Rs.26 cr. To Rs.50 cr.
Rs.4 Cr. Whichever is less
20% of the Fixed Asset or
Rs.51 cr. To Rs.99 cr.
Rs.6 Cr. Whichever is less
Re.1.00 per unit
For three years.
As per existing Textile Policy
RECOMMENDATION FOR PROPOSED 2018-2023
30% of Total Investment made in Fixed Asset
(investment made in Land, Building, Plant & Machinery, renewable
energy like Solar, Wind, Hydro or any other power generation for
captive consumption shall be included in total fixed assets value)
Shall be capped @ 12.5% taking into account assistance from all
sources i.e centrally sponsdored TUF scheme, Industrial Policy of
the State etc. Interest subsidy shall be for a period 7 years which
will include 2 years of moratorium.
Rs.3 per unit
Reimbursement of GST in the course of interstate and intrastate
transactions like IGST, CGST and SGST for a period of 8 years from
the commencement of commerical production with a cap of
investment in the Building, Plant & Machinery.
Reimbursement shall be considered on procurement of capital
goods, raw material and consumables.
Stipend to Trainee @ Rs.5000 per employee for a period of 1 year.
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WHY?
WHY MORE INCENTIVES
FOR KARNATAKA

Karnataka is cotton growing state.

Even if we increase spindle

capacity we don’t have post
spinning activities like weaving,
processing, garmenting and port
facilities to export, to develop all
activities
To carry out all the activities
from Farm to Fashion,
we need more attractive
incentives comparing to
other states.

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THANK YOU!

OMPRAKASH JAIN
CHAIRMAN,
KARNATAKA COTTON ASSOCIATION

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