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Gujarat govt rubbishes min’s denial on tax on cotton exports

Gujarat state government on Wednesday rubbished Union Commerce Minister Anand Sharma's denial about tax on cotton exports and subsidy on meat exports.

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Gujarat state government on Wednesday rubbished Union Commerce Minister Anand Sharma's denial about tax on cotton exports and subsidy on meat exports.

"The chief minister's charge that central government was taxing cotton exports and subsidising mutton exports was 100% true. The commerce minister's lies stand exposed," said government spokespersons Jaynarayan Vyas and Saurabh Patel in a statement.

The spokespersons pointed out that Centre had levied export duty of Rs2,500 on cotton exports on April 9, 2010 and completely banned cotton exports ten days later.

"Was the minister unaware of this? Even in 2011, restrictions were imposed on cotton exports before they were completely stopped. Recently, cotton exports were banned but the ban was quickly removed," they said.

The spokespersons criticised Centre's policies with regards to cotton, saying they were detrimental to the interest of cotton farmers. They claimed that farmers in the state had suffered losses of Rs14,000 crore as they were unable to take benefits of high prices in international markets due to ban on cotton exports.

The spokespersons also said that Centre was paying 30% subsidy on exports of  meat-mutton. They said that subsidy was also paid in the form of transport assistance under aegis of Agricultural & Processed Food Products Export Development Authority (APEDA) on meat exports till March 31, 2012.

In a letter to Modi, Union commerce minister had clarified that Centre had not imposed any tax on cotton exports. On the contrary, cotton exports were eligible for claiming 1% duty drawback, he had said.

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