Punjab Ginners On Strike. May Impact Cotton Arrivals

Punjab based cotton ginning factories have closed down their units and embarked on an indefinite strike after the state governments sent notices for recovery of taxes.

Members of the Punjab Cotton Factories and Pressing Association have also decided not to purchase seed cotton from farmers till the dispute is resolved.

This strike is happening in the backdrop of cotton harvesting beginning in Punjab and the strike will affect cotton arrivals in the state.

The tax recovery notice goes back to 2010, when the state imposed a one percent cess on sale price of agriculture produce from the first buyer. However, the cess was withdrawn in 2014.

But between 2010 and 2014, the state government did not collect the cess and hence the tax notices have been issued now.