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Plea to exempt rubberised coir from ST, excise duty
September, 21st 2006
The All India Coir Mattress Manufacturers' Association has suggested that the government exempt rubberised coir from sales tax and excise duty to help increase production. The Association President, Mr S. Sundaresan, said already competitive products such as PU foam and latex foam are charged lower tariffs in different States. However, the coir has to fight an unfair competition and the authorities have to seriously look into the matter. More manufacturing units He said the coir mattress-manufacturing sector had grown from 8 units in the 60s to more than 85 units. The annual sales in the sector are to the tune of Rs 1,000 crore. The industry has registered an approximate growth of about 10 per cent per annum since 1995. This is the largest consumer of brown fibre to make a value-added utility product for the common man, he said. He also demanded that cluster-based development should be organised in coconut- growing areas considering the substantial improvement in the utilisation of husk during the last three years. From the national average of 35 per cent, the utilisation of husk has moved to nearly 50 per cent. In view of good monsoon and subsequent good crop of coconut, the availability of coconut fibre has vastly improved over the last year, he said. Considering this, the Coir Board should encourage these industries by guiding them to keep good quality for producing a better product, he added. Liberal loans The Association President said that the Board should help the existing industry by providing liberal loans for technological upgradation. A separate wing may be formed in Central Coir Research Institute for research and development. The Board should also write to all State Governments to use rubberised coir mattresses in hospitals and other medical care centres for the growth of the industry.
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