Trade body Cotton Association of India (CAI) has threatened to go one-day protest strike on December 15 against Reverse Charge Mechanism (RCM), an issue of pending refunds to exporters since July 2017 on account of GST.
An indefinite strike will follow from 22nd December 2017 if the issue of RCM was not resolved in the next meeting of the GST Council, which is scheduled to be held on 21st December 2017.
The Cotton Association of India (CAI) convened a joint meeting of the upcountry associations of all cotton growing states in Mumbai to deliberate on the issue of Reverse Charge Mechanism (RCM) under GST and to chalk out strategy of finding out a solution to this vexatious problem in close coordination with each other.
Unless RCM on cotton is removed immediately, CAI believes the ginners will have no option but to close down their operations.
Cotton Outlook’s (Cotlook) latest forecast of global Cotton production shows a decrease of 52,000 tonnes month-on-month to 25,973,000 tonnes during November this year.
According to the data, United States Cotton production has reported an increase of 141,000 tonnes month-on-month in November, while India and Pakistan output reduced by 170,000 tonnes and 50,000 tonnes respectively.
The figure for global consumption is unchanged at 25.184 million tonnes. The net result is a projected increase in world stocks of 789,000 tonnes at the end of the 2017/18 season, compared with 841,000 tonnes indicated in Cotlook’s October assessment.