Union Minister of Textiles Dayanidhi Maran inaugurated the first two cotton sales depots of Coimbatore and Rajapalayam in Tamil Nadu on Monday. In his inaugural address Mr Maran told that this measure will enable the textile mills to reduce the yarn cost approximately by 2 rupees per kg. He said that Tamil Nadu Chief Minister readily agreed to exempt the 4% VAT for the cotton sale and CCI will bear 2% purchase tax of 4% levied by the cotton despatching States. He expressed hope that the other States will also follow Tamil Nadu and exempt the VAT. These depots will store bales from cotton producing States like Gujarat and Maharashtra and sell to local Mills.