Vidarbha Cotton Association seeks tax relief for farmers.

The Vidarbha Cotton Association (VCA) has called for several tax reforms to support cotton farmers in the region. During a recent meeting with Union textile minister Giriraj Singh, the association presented a charter of demands highlighting the need for a more favorable tax environment.

One of the key demands was the waiver of Mandi cess on cotton, particularly for cotton that is directly transported to factories. The VCA argued that farmers do not benefit significantly from the mandi in this process and that the tax ultimately reduces their income.

The association also urged the government to impose a 4 per cent GST on cotton seed cake. This would simplify the tax process and provide greater transparency for businesses involved in the agriculture and animal husbandry sectors. Currently, the tax-free status of cotton seed cake creates complexities and challenges for traders and ginners.

By addressing these tax issues, the VCA believes that farmers can receive better prices for their cotton, leading to increased income and improved livelihoods.