New Delhi: The Confederation of Indian Textiles Industry (CITI) has pitched for lower GST rate on man-made and synthetic fibre at 12 percent. CITI Chairman J Thulasidharan said the steep 18 percent levy set by the Goods and Services Tax Council has come as big blow to small fabric manufacturers in powerloom, knit and processing segments, and prevent seamless flow of input tax credit and allow breakage of value chain. He requested Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia to address the issue of 18 percent GST slab on man-made fibre (MMF) and synthetic yarn on urgent basis as this will affect the MMF textile prospects in the country in a big way. The chairman explained that MMF and synthetic textile manufacturers will not only lose profit but gradually start losing grounds against the competitors like China, Bangladesh, Vietnam and Cambodia who enjoy fiscal and non-fiscal advantage in their countries compared to India. "Around 166 countries have GST in place with lower slab compared to what India has announced," he said. Power loom accounts more than 86 percent of the total man-made fabric production in India, while rest comes from other segments like handloom, hosiery and mills "If rates are not reduced there will be flooding of the fabrics from China, which would wipe out powerlooms and other SME fabric manufacturers from business. Power looms alone employs around 65 lakh workers in 5.5 lakh units spread across the country," Thulasidharan said. The chairman also highlighted that it is the SME and those who do not have composite mills are going to suffer from excessive competition and high cost. These players have majority share in fabric production of the country. Therefore, he requested that the government must ensure lowest rates on the raw materials, essentially for man-made fabric segment to hold the investment in the industry and to encourage production. Currently the profit margins of SMEs are very thin and industry keeps only 2 to 5 percent of the turnover in a year, therefore extra burden in form of extra taxes will add to the woes of the industry. "High rates on MMF and synthetic yarns would inevitably affect the actions and incentives of the SMEs of the textile to remain in the business," said Thulasidharan. He also requested that the highly labour-oriented garment and made up segments be considered under the 5 percent GST slab of service tax as the job work related these segments still come under 18 percent service tax slab.
Source: PTI, Firstpost
Mumbai- The impact of the Goods and Services Tax (GST) is likely to be neutral to positive across segments in the textile industry compared to the current tax regime, ICRA said in a report. As per the rating agency's estimates, the effective tax incidence on cotton and man-made fibre (MMF) or blended textiles under the existing tax regime is in the range of 5-7 per cent and 11-14 per cent, respectively. Besides excise duty, this captures the impact of other multiple levies such as Value Added Tax (VAT), Central Sales Tax (CST) and entry tax or octroi, the report said. Considering that the GST rates announced for these textile categories are more or less in line with the existing effective tax rates, ICRA does not envisage any impact on these product categories. However, ICRA added that the rates announced are expected to be positive for wool or silk-based textiles, which will be taxed at a lower rate of 5 per cent compared to the prevailing tax of 8-10 per cent. The rating firm, however, said fabric manufacturers, who operate under the composition scheme of taxation for which the Input Tax Credit (ITC) is not available will face challenges as the apparel manufactures will prefer to deal with GST-compliant fabric suppliers to avail ITC. This will, hence, incentivise the fabric manufactures to operate under the purview of GST, it added. Further, with the GST applied on cotton yarn as well, the incentive for fabric manufacturers to not avail of the ITC will also fall, since doing so would reduce the fabric-manufacturer's competitiveness, the report added.
Source: PTI
Coimbatore: Powerloom units will take a hit if the GST on man-made fabric (MMF) is kept at the proposed 18%, industry officials said. Powerloom accounts for more than 86% of the total MMF production in India while the rest comes from other segments like handlooms, hosiery and mills. Incidentally, the GST on cotton textile products has been fixed at 5%. "If rates are not reduced then there will be flooding of the fabric from China which would wipe out powerlooms ," said J Thulasidharan, chairman, Confederation of Indian Textile Industry (CITI). Powerlooms alone employ around 65 lakh workers in 5.5 lakh units spread across the country, he said. "An independent weaving unit having around 50 looms and producing 100% viscose fabric would incur an additional cost of over Rs 2 lakh per annum with 18% GST rate on yarn when compared to a composite unit," said M Senthilkumar, chairman, Southern India Mills' Association (SIMA). "Even with 12% GST rate on synthetic yarn, the additional cost would be Rs 1.3 lakh per loom per year thus creating unhealthy competition between the composite and independent weaving units," he said. "It is the SME (small and medium enterprises) and those who do not have composite mills that are going to suffer from excessive competition and high cost. These players have majority share in fabric production of the country," the CITI chairman said.
Source: The Times of India
The Confederation of Indian Textile Industry (CITI) has urged Union finance minister Arun Jaitely and Hasmukh Adhia, secretary, department of revenue, for reducing GST rates on man-made fibres (MMF) and yarns from 18 per cent to 12 per cent. The association said that 18 per cent GST on MMF and synthetic yarn will dent fabric manufacturing in India. J Thulasidharan, chairman, CITI has requested to address the issue of 18 per cent GST slab on MMF and synthetic yarn on urgent basis as this would affect the MMF textile segment prospects in the country in a big way. He explained that this will come as big blow to small fabric manufacturers in powerloom, knit and processing segments and prevent seamless flow of input tax credit and allow breakage of value chain. The chairman explained that MMF and synthetic textile manufacturers will not only lose profit but also gradually start losing grounds against competitors like China, Bangladesh, Vietnam and Cambodia who enjoy fiscal and non-fiscal advantage in their countries compared to India. He said, "Around 166 countries have GST in place with lower slab compared to what India has announced." Powerloom accounts for more than 86 per cent of the total man-made fabric production in India while rest comes from other segments like handloom, hosiery and mills. If rates, are not reduced then there will be flooding of the fabrics from China which would wipe out powerlooms and other SME fabric manufacturers from business. Powerlooms employ around 65 lakh workers in 5.5 lakh units spread across the country. CITI also highlighted that SMEs and those who do not have composite mills are going to suffer from excessive competition and high cost. These players have majority share in fabric production of the country. Therefore, he requested that government must ensure lowest rates on raw materials essentially for man-made sector to hold the investment in the industry and to encourage production. Currently SMEs' margins are very thin and industry keeps only 2 to 5 per cent of the turnover in a year, therefore extra burden in the form of extra taxes would add to the woes of the industry. "High rates on MMF and synthetic yarns would inevitably affect the actions and incentives of the SMEs of the textile to remain in the business," said Thulasidharan. CITI has also requested that the highly labour oriented garment and made up segments should also be considered under the 5 per cent GST slab of service tax as the job work related these segments still come under 18 per cent service tax slab. Chairman CITI has urged the government and GST council to accommodate industry’s demand of 12 per cent GST rate on MMF and synthetic yarn or refund of duty under inverted duty incidence at fabric stage as prescribed in the GST Act in the upcoming GST council meeting on June 30, 2017 as this would facilitate the industry’s growth. At the same time, the association has welcomed the GST council’s announcement on increasing the turnover limit for Composition Levy for CGST and SGST to special category states also. This will give further boost to the investment in the textile sector in these special category states. (KD)
Source: Fibre2Fashion
The GST Council's decision to consider a rate revision only after three months is likely to deliver a severe blow to the country's garment industry, say mill owners. The man-made fibre yarn spinning sector, which was expecting a reduction in rate from 18 per cent to 12 per cent, is likely to take a huge hit. M Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has stated that the entire cotton textile industry is thankful to the Government for bringing cotton textiles and all jobwork relating to textile yarns (other than MMF and filaments) and fabrics under the five per cent GST rate. More than 80 per cent of the garment/made-ups manufacturing units are in the decentralised sector and undertake jobwork. "These units are likely to become unviable with 18 per cent service tax on jobwork, forcing them to closed down and render hundreds of thousands of people jobless," Senthilkumar said. "The GST Council decision to consider any rate revision only after three months has come as a severe blow for the garmenting, made-ups and synthetic spinning sectors," SIMA said in a statement. The garment/made-up sector, the largest employment provider in the entire textile value chain, creates 100-150 jobs for every crore of rupees invested, Senthilkumar claimed. The industry was hoping the GST Council would include jobwork on garmenting/made–ups under five per cent GST rate. Senthilkumar opined that the industry could have benefited if these demands were implemented and that such a move would have also created a level-playing field in a highly competitive market scenario. He requested the Central Government to consider including the jobwork done in the garment and made-up segments under the five per cent rate. These units are currently exempt from service tax. SIMA also wants the government to reduce the GST rate on man-made fibre and its blended yarn from 18 per cent to 12 per cent at the next GST Council meeting scheduled on June 30, 2017.
Source: Business Standard
The government will not blink on rolling out the goods and services tax (GST) from July 1, Finance Minister Arun Jaitley said on Tuesday, emphasising that businesses cannot give any excuse for not being ready as enough time was given to them for preparation. = Ruling out deferring the roll-out because of a small number of people who say businesses are not ready, he said when reforms are implemented “the first principle is you should never blink. If you blink, then you get derailed.” “We have for the last six months saying that the date is July 1. Nobody had any business to be not ready,” he said. Besides, additional time has been given in the initial period for filing of the results, thus, giving enough time to prepare for the transition, he said. However, implementation of the GST, which will unify more than a dozen separate levies to create a single market, may result in “some disruption” and “technological glitches” initially as traders and the smallest of businesses will have to file returns online, he added. GST, which was originally planned to be implemented from April 1 but was deferred by three months, will be launched at a grand function in the historic Central Hall of Parliament on the midnight of June 30. “GST will be implemented from July 1. The President of India will officially launch the new indirect tax regime on June 30 midnight,” said Jaitley. Besides the President of India and Prime Minister Narendra Modi, Vice President Hamid Ansari and two former prime ministers Manmohan Singh and H D Deve Gowda and Lok Sabha Speaker Sumitra Mahajan will be on the dais during the hour-long event. The biggest tax reform since Independence, which will gradually reshape India’s business landscape by making the world’s fastest-growing major economy an easier place to do business in, would bring down barriers between 30 states and unifying the $2 trillion economy and 1.3 billion people into a single market. Jaitley said GST over the medium- to long-term will lead to higher revenues to Centre and states, while also increasing the size of the economy and having a positive impact on gross domestic product. “We should be prepared when the switchover takes place. In the short-term, there will be some challenges,” he said. “The reform step is for betterment. All reforms initially are seen as disruptive, and in the long run are seen as result-yielding reform.” Jaitley said the process of registration of existing central excise, service tax and state value-added tax payers in the new system was “going on well”. “It is not a very complicated process,” he said, adding GST will check tax evasion and in the long run lead to rise in number of the assesses. As many as 6.5 million assesses have already registered and more are expected to sign up. “65 lakh (6.5 million) who have registered did not face problems; the five who have (faced problems) are on Twitter,” he quipped. On the tech backbone GST Network’s (GSTN) security clearance that is yet to come by from the home ministry, Jaitley said that it was only a procedural matter. “It (GSTN) is already functioning. Security clearance to GSTN is a procedural matter they go on,” he said. Jaitley said the government has already relaxed the dates for filing of initial returns and traders and businesses now have time till September 5, instead of previous August 10, for filing the returns and being ready. “There is still two-and-a-half months to be ready, but if he (business) is still not ready, I am afraid, but he doesn’t want to be ready,” he said. Reminiscent of India’s tryst with destiny at the midnight of August 14-15, 1947, Parliament’s historic Central Hall will host an hour-long function on the intervening night of June 30-July 1 to mark the roll-out of GST, Jaitley said the GST Council has arrived at tax rates on most of the commodities on the basis on “equivalence” so that incidence of tax remains at the current level. “The tax rates that has been fixed, that will apparently lower our tax revenues. But we are hoping that even after reducing rates the revenues won’t come down because evasion would be checked in an efficient system,” he said. Asked about GST’s impact on inflation, he said when tax rates come down it also has an impact on inflation, but it would also depend on monsoon and oil prices. “In some cases, because there are public interests involved, we have, in fact, brought down the tax rates. On first principle, Centre and states have suffered a revenue loss but we are hoping to make up for that loss because of more efficient system,” he said. The anti-profiteering clause is transient and should act as a deterrent. “I hope we are not compelled to use it,” he said. He said almost all states have cleared the State GST (SGST) Act, with the exception of Jammu & Kashmir and Kerala. “I strongly believe that any state keeps out, both its traders and consumers will suffer loss. Because they will not get the benefit of input tax, they will have to pay tax twice and the consumers will get materials which is costlier than rest of the country. Also compensation package won’t be given to states who do not implement GST,” Jaitley said.
Source: Business Standard
The goods and services tax (GST) will be showcased as a unifying for ce at the midnight event that marks the rollout of India's biggest indirect tax reform. “The world will witness a transformation and how all the political parties of different ideologies united for the implementation of the GST,“ Prime Minister Narendra Modi said in Lucknow, terming the rollout of the GST from July 1as “historic“. Finance minister Arun Jaitley set to rest any remaining doubt about the tax being implemented as scheduled. “The hour-long function will mirror the contribution made by different political parties and states to the revolutionary new tax regime,“ he said in New Delhi on Tuesday. The launch function will be held in the central hall of Parliament. Jaitley reiterated that GST, over the medium to long term, will lead to a rise in central and state revenue as the size of the formal economy will grow. Being a more efficient system, GST will also result in better tax compliance, he said. “It should have a positive impact on the GDP ,“ said Jaitley. The new levy will subsume state and central levies and help create a common market, although some sticking points such as e-way bills remain to be resolved. These pertain to inter-state transactions.
Source: Economic Times
Exporters on Tuesday sought incentives such as credit at affordable rates from the government with a view to boost India’s shipments, a top official said. The issue was raised and discussed during the Board of Trade (BoT) meeting chaired by Commerce and Industry Minister Nirmala Sitharaman. Commerce Secretary, Rita Teaotia, said that exporters and industry representatives from chambers including CII raised matters related to the GST. The objective of the BoT meeting was to take suggestions and inputs for the review of the Foreign Trade Policy (2015-20), which is expected to be released by the end of this month.
Source: PTI
The government is planning to raise fourfold a key cap that is keeping exporters from availing themselves of benefits given to exports via the online platform. The commerce ministry has proposed to raise the cap of each export order placed online and dispatched through courier or postal mode to Rs. 1lakh from the existing Rs.25,000. The proposal has been made in the wake of exporters finding the present cap too low, which is restricting them from getting duty benefits on imports of inputs and goods. “We have proposed to increase the limit to Rs.1lakh because exporters were not getting enough benefits," said an official privy to the development. The value of items shipped through couriers is often not captured in export data because they are categorised as samples or gifts. Exporters call them samples because under the normal export route they will have to file shipping bills and be subject to checks by custom officials, which is cumbersome, especially for small exporters with low-value shipments. The Directorate General of Foreign Trade has defined `e-commerce' as the buying and selling of goods and services, including digital products, conducted over digital and electronic networks without any reference to amount. The commerce ministry might announce the revision in the cap in the mid-term review of the policy which is likely to be released on June 30, the official said.
The Foreign Trade Policy 20152020 offers incentives for goods falling in the category of handloom products, books and periodicals, leather footwear, toys and customised fashion garments, having free-on-board value up to Rs.25,000 under the Merchandise Export from India Scheme. These goods should be hosted on a website and dispatched through courier or postal mode to qualify for incentives. However, the finance ministry is said to have raised concerns on the revised limit citing lack of adequate system to track such transactions.
Source: Economic Times
Human society functions on the basis of mastery of assorted technologies. When you buy rice or vegetables, you take mastery over cooking technologies for granted. An importer or an exporter takes ocean-going liners and containerised cargo for granted. When we make a call on a mobile phone, we take the underlying technologies for granted. The goods and services tax (GST) takes ubiquitous broadband access for granted, in a similar fashion. Yet, this assumption that every economic agent who has to comply with the tax will have ready access to broadband in every part of the country remains sweeping and unrealistic. The government must focus on making that assumption realistic, in every par t of the country. If you sell something, you must upload the invoice to the GST Network (GSTN), so that the buyer can claim credit on the tax you have collected and paid the government. Suppose that you are unable to upload your sale invoice and pay the tax you have collected because you are in a part of the country where the telecom network is patchy or has been ordered shut for security reasons. Your buyer would not be able to claim input tax credit. This is a hassle for the buyer. He might decide to eliminate the hassle by switching sourcing to locations where sellers have no difficulty uploading documents to GSTN. You would end up a victim, felled by unrealistic assumption about ubiquitous technological availability. You would channel your ire to the government. The government would suffer loss in popularity, arising from facile assumptions about the reach of communications infrastructure. But there is a way out. Identify the patches where data connectivity is still weak. Identify problems: missing towers for last-mile connectivity, inadequate fibre-optic backhaul, hostile terrain. Identify solutions: build the towers, deploy microwave links or satellite connections for backhaul. Use money from the Universal Service Obligation Fund. Fix responsibility on public officials and private firms, in consultation with them. Put the infrastructure in place and working, before the tax rolls out in earnest in September.
Source: Economic Times
Commerce secretary Rita Teaotia on Tuesday said the roll out of the goods and service tax (GST) from July 1 would not have any adverse impact on exports. “Since exports are zero-rated, there will be no adverse impact,” Teaotia said, addressing a press conference after the second meeting of the Board of Trade. The mid-term review of the Foreign Trade Policy (FTP) to be unveiled soon will reflect the GST-related changes for exporters. An exporter will need to pay the applicable taxes on transactions but can seek refund. Tax exemption is not given to them as it could break the GST chain, preservation of which is necessary to avoid cascading of taxes. India’s exports grew at its fastest pace in the last five years by 4.7 per cent to $274.65 billion in the financial year 2016-17. The FTP review would be completed in time for the launch of GST, said Teaotia. The second meeting of the 70-member Board of Trade, country’s top advisory board on trade, was held under the chairmanship of commerce & industry minister Nirmala Sitharaman on Tuesday. “The objective of the meeting was to seek inputs for the review of FTP. Exports have revived and need support to grow,” Teaotia said. FE
Source: Indian Express
When and where it becomes taxable, and how
The taxable event under GST is supply. Treating supply as the taxable event is a departure from the existing laws where the taxable event was different under different laws. GST law treats all forms of supply of goods and services, importation of service, and supplies specified in Schedule I (Supply even without consideration, and are liable for tax) as taxable events. Since supply is the taxable event, for levy of tax, we have to decide the time and place when the goods and services are supplied. We need to do it for all transactions. Types of supplies: The definition of supply is inclusive and ensures the widest possible connotation. Let us understand if a transaction qualifies as supply through two examples. Suppose a firm buys 10 ACs, and pays GST on these and claims input credit of ₹2 lakh. Two years later, it donates all the ACs to charity. Here, the firm doesn’t sell them. So, does this qualify as a business supply? Yes. Here, the firm has already claimed input credit, so, it would need to pay GST on the notional market value of the ACs at the time of donation. Again, a garment manufacturer (M) appoints an agent (A), who stores garments manufactured by M and sends to dealers whenever M asks A to do so. Is it a supply? Yes. Transfer of garments from M to A is taxable supply under GST. It would need to pay GST.
Time of supply: The time of supply refers to the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The time is generally the earliest of the three events: Receiving payment; issuance of invoice; or completion of supply. The liability to pay GST on the goods arises at the time of supply which will be the earlier of the following dates: The date of issue of the invoice by the supplier or the last date on which he is required, to issue the invoice with respect to the supply. Or, the date on which the supplier receives the payment with respect to the supply. Place of supply: GST is a destination based tax. This makes the correct determination of the place of supply crucial for determining the tax liability and subsequently transferring the tax to the State government within whose jurisdiction the goods have been supplied. Let us understand how the place of supply is decided through two examples.
A Goa-based firm opens office in Nagpur. It buys 10 ACs pre-installed in the office premise from a firm whose registered place of business is Hyderabad. In this case, the supplier and the place of supply are located in different States hence it would be inter-State supply with Nagpur as the place of supply. A plane run by Air India with registered place of business at New Delhi is flying from to Bengaluru. A passenger buys a watch onboard. In this case, both locations of the supplier and the place of take-off of the plane are Delhi. So, it would be intra-State supply with Delhi as the place of supply. Put all your business transactions to the supply test. Deciding precise type, time, place and value of supplies will help you in making correct business decisions and pay correct tax. And save you from any subsequent heart burns. The writer is from the Indian Trade Service. The views are personal. Adapted from his book, ‘The GST Nation: A Guide for Business Transformation’
Source: Business Line
Farmers in Gujarat, Madhya Pradesh and parts of Maharashtra are a worried lot as the ‘monsoon watch’ gets longer in the key growing regions, affecting the sowing of kharif crops. According to the latest available data, farmers in Gujarat have completed sowing on about 8.71 lakh hectares, which is more than double the 2.74 lakh hectares sown by about the same time last year. The State received rains in patches at the beginning of June, but in the absence of a strong weather system, the showers were not sustained. At stake is the fate of cotton and groundnut crops, sowing for which had been done on 496, 400 hectares and 249,100 hectares, respectively, as on June 20. Sowing of pulses is complete in over 10,000 hectares, which is less than last year. Farmers in Gujarat are a worried lot. A further delay in rains will damage the seeds already sown. Many farmers in Saurashtra and North Gujarat had taken up early sowing with availability of irrigation facilities. But a delayed monsoon will disturb the crop cycle and possibly require re-sowing in some cases. In Madhya Pradesh and Maharashtra, sowing has slowed down as farmers await rains. In its latest statement, the oil trade body, the Solvent Extractors’ Association of India (SEA), has expressed the possibility of a delay in the sowing of soybean in these States. “The monsoon is not developing in a normal way, and its advance may bypass the key soybean-producing regions in Madhya Pradesh and Eastern Maharashtra, which may not get adequate rains in June. This may delay sowing,” Atul Chaturvedi, President, SEA, wrote in a letter to the members. Th India Meteorological Department (IMD) had predicted a normal monsoon in 2017, raising hopes of bumper production during the kharif season. “The IMD during the current year has highlighted the ‘peculiar’ progress of the monsoon which can have far-reaching consequences for our oilseed crops. Because of this peculiar movement, the monsoon seems to be travelling directly from the south to the north bypassing the central part of India,” Chaturvedi said. The IMD, meanwhile, has not issued any weather warning for Gujarat and Maharashtra for the next five days. According to the five-day weather forecast as on June 21, Gujarat may see isolated rains in most parts, and scattered rains in the subsequent days. Madhya Maharashtra will have scattered and fairly widespread rains going forward, and Vidarbha and Marathwada are likely to have scattered to fairly widespread rains. While East Madhya Pradesh is likely to have fairly widespread rains over the next three-four days, West Madhya Pradesh may have scattered or isolated rainfall over the next five days. Cotton expert Arun Dalal maintained that the monsoon delay has damaged the cotton sown earlier. Nationally, about 15-16 lakh hectare of area has been covered under cotton so far. “The monsoon delay is damaging for cotton farmers who had started sowing. Without availability of water, the seeds will get spoiled. The situation is the same in Madhya Pradesh and Maharashtra,” said Dalal. Meanwhile, a farmer in Rajkot district said, “We took early cotton this year, anticipating timely and good rains. But after two days of early showers, there have been no rains.” This, he said, “is a worrisome scenario because without water, the early sowing will go to waste and we will have to spend again on seeds for resowing.”
Source: Business Line
Union textiles minister Smriti Irani unveiled on Tuesday the world’s largest cushion at an exhibition in Delhi. At the inauguration of the Heimtexil India fair, Irani said India’s home textile business this year has contributed 12 per cent to the country’s overall shipments globally. She said the initiative, organised by Messe Frankfurt India, has witnessed a 30 per cent increase in exhibitors this year, which shows the capacity of Indian businesses to come up with new ventures as well as the appetite of the country’s consumers or buyers. India is set to host its first-ever mega textile fair in Gandhinagar on June 30. A total of 180 companies from India, Bangladesh, China, Korea, Thailand and Nepal are participating in the Heimtexil and Ambiente India 2017 fair.
Source: Hindustan Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 44.45 per barrel (bbl) on 21.06.2017. This was lower than the price of US$ 45.29 per bbl on previous publishing day of 20.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 2871.41 per bbl on 21.06.2017 as compared to Rs. 2919.86 per bbl on 20.06.2017. Rupee closed weaker at Rs. 64.60 per US$ on 21.06.2017 as compared to Rs. 64.47 per US$ on 20.06.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 21, 2017 Previous trading day i.e. 20.06.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
44.45 (45.29) |
|
(Rs/bbl) |
2871.41 (2919.86) |
|
|
Exchange Rate |
(Rs/$) |
64.60 (64.47) |
Source : PIB
Textile major Raymond, through its wholly-owned subsidiary Silver Spark Apparel Ethiopia, on Tuesday commissioned its greenfield garment manufacturing facility in Ethiopia. Set up at Hawassa Industrial Park (HIP), with an investment of over Rs 100 crore, the facility will mark Raymond’s entry in the top five leading suit manufacturers in the world. The garmenting plant in Ethiopia will ensure an upper hand for Raymond in price competitiveness as the company gains duty free access in key export markets, including the US and Europe. Raymond Chairman and Managing Director Gautam Hari Singhania said, “In our endeavour to ensure price competitiveness, Ethiopia makes a compelling business case and enables us to serve our international customers.”
Source: Deccan Herald
Gorakhpur may house Uttar Pradesh’s first regional silk research centre. The state is seeking to increase its share in the national production of silk and aiming to meet the demands of its weaver community. Despite good quality cocoons, the state’s share in production at the national level is barely three per cent, at around 270 metric tonnes. Central Silk Board Chairman K M Hanumantharayappa said an acre of mulberry sericulture has a potential to generate a gross income of more than Rs one lakh per year, which is higher than the returns from most agricultural crops, according to a news agency report. “Our endeavour is to take this to at least 15-20 per cent. Regional silk research centre will be established in Gorakhpur. This will be the first of its kind in UP,” Hanumantharayappa said in the report. Women in rural areas should be trained in sericulture, he said. “Besides, establishment of cocoon market is a must. For the want of an organised marketing support, the state’s farmers sell their cocoon to West Bengal and Karnataka at low prices,” he said. For meeting the demand of domestic weaving clusters such as Varanasi, quality silk production should be increased, he said. UP has better water supply compared to states like Karnataka, he said. “However, awareness level among the farmers is low, the market is relatively small and the size of farm land holding is also smaller compared to other states,” he said. Krishi melas are being organised on a large scale in order to popularise sericulture in rural areas of the state, he said. “Sericulture will definitely help farmers augment their income. Till now, I have not heard that a farmer engaged in sericulture has committed suicide,” he said. Hanumantharayappa also stressed on the need for Multi-end Reeling Machines (MRM) and said the government would make efforts to provide these machines to entrepreneurs at a subsidised rate after imparting them proper training. “There are 170 government silk farms in the state and a proposal has been sent to the state government for installing the automatic reeling machines. Superior yarn produced thereon will replace the imported yarn. We are planning to arrange awareness visits to such machines,” he said. “Tasar culture is a subsidiary occupation of the tribals living in south UP,” he said. Chandauli, Sonbhadra, Lalitpur and Fatehpur are the major districts identified for tropical Tasar. “Eri culture is practised in Kanpur, Kanpur Dehat, Jalaun, Hamirpur, Chitrakoot, Banda and Fatehpur districts. There is a vast potential in this sector,” he added.
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1109.36 |
USD/Ton |
-0.13% |
6/21/2017 |
|
VSF |
2177.71 |
USD/Ton |
0.07% |
6/21/2017 |
|
ASF |
2240.69 |
USD/Ton |
0% |
6/21/2017 |
|
Polyester POY |
1134.99 |
USD/Ton |
0% |
6/21/2017 |
|
Nylon FDY |
2709.33 |
USD/Ton |
1.65% |
6/21/2017 |
|
40D Spandex |
5198.98 |
USD/Ton |
0% |
6/21/2017 |
|
Polyester DTY |
5799.42 |
USD/Ton |
0% |
6/21/2017 |
|
Nylon POY |
1361.99 |
USD/Ton |
0% |
6/21/2017 |
|
Acrylic Top 3D |
2518.94 |
USD/Ton |
0% |
6/21/2017 |
|
Polyester FDY |
2401.78 |
USD/Ton |
0% |
6/21/2017 |
|
Nylon DTY |
1427.89 |
USD/Ton |
0.52% |
6/21/2017 |
|
Viscose Long Filament |
2855.78 |
USD/Ton |
0% |
6/21/2017 |
|
30S Spun Rayon Yarn |
2841.13 |
USD/Ton |
0% |
6/21/2017 |
|
32S Polyester Yarn |
1695.89 |
USD/Ton |
-0.17% |
6/21/2017 |
|
45S T/C Yarn |
2694.68 |
USD/Ton |
0% |
6/21/2017 |
|
40S Rayon Yarn |
1830.63 |
USD/Ton |
0% |
6/21/2017 |
|
45S Polyester Yarn |
3002.23 |
USD/Ton |
0% |
6/21/2017 |
|
T/C Yarn 65/35 32S |
2299.27 |
USD/Ton |
0% |
6/21/2017 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
6/21/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
-0.17% |
6/21/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
-0.12% |
6/21/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
6/21/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/21/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14645 USD dtd. 2106/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
After years of losing market share to overseas manufacturers, American textile and fiber makers say their industry is turning around. A story in Chemical & Engineering News (C&EN), the weekly newsmagazine of the American Chemical Society, explores how advancing technology in the field is allowing the U.S. textile industry to gain new ground. Senior C&EN Correspondent Marc S. Reisch reports that American textile companies, long crowded out of the market by low-cost overseas labor, have developed new niches for hi-tech fibers and textiles. These advanced products include antimicrobial fabric, fire-retardant finishes, sensor-imbued "smart fabric," and polyester made from recycled plastic bottles. Thanks to technological advances, automation and productivity improvements, the U.S. textile industry is finally growing more competitive, experts say. Despite the increase in business, and even favorable domestic policies enticing foreign manufacturers to open plants in the United States, employment in the industry may continue to falter in the face of automation. But the high-tech nature of modern textiles and a drive for productivity has increased the demand for experts, including polymer chemists and dye specialists. For example, the North Carolina State University College of Textiles reported its largest-ever graduating class this year. And if the past is any indication, most are likely to find jobs within three months of earning their degrees. In a field once marked by rampant job loss, stability is returning with a new focus on advanced specialty products. The American Chemical Society, the world's largest scientific society, is a not-for-profit organization chartered by the U.S. Congress. ACS is a global leader in providing access to chemistry-related information and research through its multiple databases, peer-reviewed journals and scientific conferences. ACS does not conduct research, but publishes and publicizes peer-reviewed scientific studies. Its main offices are in Washington, D.C., and Columbus, Ohio. Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert system.
Source: American Chemical Society, EurekAlert
WASHINGTON: The U.S. Commerce Department on Wednesday launched anti-dumping and countervailing duty investigations against imports of fine denier polyester staple fiber from China, India, South Korea and Vietnam. The investigations are a response to a request from three U.S.-based producers of polyester staple fiber, the Commerce Department said in a statement. They alleged that producers in each of these four countries were dumping fine denier polyester staple fiber in the U.S. market with margins ranging from 21.43 percent to 103.06 percent. They also claimed that the governments of China and India were providing improper subsidies to producers of polyester staple fiber, the department said. The U.S. International Trade Commission (ITC), another U.S. trade authority, is scheduled to make its preliminary inquiry determinations around July 17. The probe will continue if the ITC determines that there is a reasonable indication that imports of polyester staple fiber from these countries materially injure or threaten the domestic industry of the United States. Last year, imports of denier polyester staple fiber from the Chinese mainland and China's Taiwan were estimated at about 79.4 million U.S. dollars and 9.6 million dollars, respectively, according to the department. China's Ministry of Commerce has kept urging Washington to abide by its commitment against protectionism and help maintain a free, open and just international trade environment.
Source: Xinhua
The Italian and Dutch fashion industries have joined hands for textile growth, emphasising the growing interaction between their fashion and textile industries. The King and Queen of The Netherlands and a Dutch trade delegation led by the minister for foreign trade and development cooperation, Lilianne Ploumen are currently on a state visit to Italy. The Dutch association for the Fashion and Textile industries (MODINT), which is leading the Dutch fashion mission, and Sistema Moda Italia (SMI) the Italian association for the fashion and textile supply chain in Italy, have concluded a memorandum of understanding (MoU). During the Best of Both Event to be held on June 23 in Milan, the minister and a delegation of Dutch and Italian VIP’s and innovators active in the fashion and textile industry will witness the signing of a promising memorandum of understanding (MoU). The MoU defines actions by MODINT and SMI to help the Dutch and Italian fashion and textile industries work together on recycling, labour standards, sustainable raw materials and domestic production. MODINT and SMI are both members of the International Apparel Federation (IAF), an international organisation that supports industry development by helping to build intelligent connections among its members. In the MoU, Italian and Dutch businesses will explain how they cooperate, how they can support sustainable value chains, how they envision their business growing together in the coming years, and what their respective governments can do to support that growth. Italy, famous for its high fashion design, also has a strong integrated apparel and textile industry with a focus on recycling, spinning, weaving, knitting and garment manufacturing. The Dutch industry is known for its distinctive design and ground-breaking innovations in for example recycling and strong fibres. Because the apparel and textile industry business models are relying more and more on sustainability and transparency, responsible production within Europe is gaining popularity and Dutch and Italian supply chains are becoming more intertwined. The MoU as well as the event will support working towards the ‘Best of Both’, a cooperation for improving sustainable business practices.
Source: Fibre2Fashion
LAHORE: Pakistan’s economy is facing a dilemma as liberalisation has increased imports, while the protected domestic industries, after failing to improve efficiencies to compete globally are losing even the domestic markets to imports. The policy makers have no clue how to respond. Instead of doing some in depth studies, they act on the presentations given to them by different stakeholders. Look at what happened in case of textiles after announcement of export package. They announced rebates for the entire textile value chain without realising that some of the sectors are suppliers of basic raw material to the value-added sectors. Rebates were announced for yarn and fabric besides somewhat higher rebates for bed wear and apparel. The impact of that policy is now evident from the textile exports in the month of May. The exports of textiles declined in May by over 12 percent with value-added sectors accounting for a major chunk of the decline, whereas the reduction in exports of yarn and fabric was relatively small. This was the result of the rebate provided to yarn and fabric that are the two basic raw materials of apparel and bed wear sectors. These sectors were incurring steep decline in exports that has slowed down appreciably. The value-added sector on the other hand was slowly increasing exports – a process that has been halted after the export package. The reason is that their competitors are buying cheaper yarn and fabric from Pakistani producers, who pass on the rebate to fetch export orders. However, since they do not get any rebate on local supplies they have not reduced their prices in the domestic market. The advantage provided to the apparel sector for exports has been nullified by higher input price of their basic raw materials compared with their regional competitors. The planners should have applied mind while announcing concessions for different value chains in textiles. Increasing imports and declining exports clearly indicate that the cost of doing business is high. The factors impacting the cost need to be analysed. Certain government policies, corruption, inefficiencies of the private sector and failure to upgrade technology are some of the factors responsible for the high cost of doing business. Most of our industries are operating without energy audit and are wasting electricity unnecessarily to the tune of 20-30 percent. They are demanding reduction in power rates by 30 percent, but they fail to realise that they can cut their power bills by the same percentage if they improve efficiency of their power usage. The productivity of Pakistani workers is very low compared with that of a Chinese or Indian worker. Skill may be one reason, but working conditions at the production floors is a major factor that impedes productivity in various industries. They manage their production in inadequately illuminated and poorly ventilated halls. The workers get fatigued in such suffocating culture and steadily lose working efficiency. In other countries, the efficiencies of workers increase as they gain experience, but in Pakistan the production efficiency remains stagnant. The white collar workers enjoy air conditioned rooms on the same production floor and this discrimination is resented at workers level. Private sector entrepreneurs generally tend to exploit their workers in case of monthly wages. They increase the salaries of their workers in line with the yearly minimum wage increase announced by the government that is basically meant for unskilled workers. The exporters prove their compliance by giving the government announced minimum wage. But they do not pay for experience.
Source: The News International
ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised serious concerns over a strike called by textile trade bodies, terming the move as utterly counterproductive not only to the industry but also national economy, a statement said on Wednesday. Earlier, All Pakistan Textile Mills Association (APTMA) announced to protest against the government for putting the textile sector on the back burner. The call has been answered by Pakistan Textile Exporters Association (PTEA), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Bedsheet Association (PBA), and 25 other bodies. “The textile industry contributes around 8 percent to the GDP, makes up more than 60 percent of total exports, and employs about 40 percent of industrial labour force of Pakistan. A strike will only worsen the situation,” Aamer Ata Bajwa, acting president FPCCI, said. Expressing solidarity with the textile trade associations, he lamented the industry was already struggling to survive in the face of challenges like power/gas load-shedding and dwindling exports. “The textile sector needs government’s support so that it could play a vibrant role in the economy,” the FPCCI official added. They must realise, Bajwa said, that an adverse action would only damage the industry by leading to the closure of more textile units, which means mass unemployment. “It is critical that the finance and commerce ministries consider the demands being made by Aptma and other textile associations to overcome the current crisis in the best interest of the country,” Bajwa emphasised. He also urged the government to release the sales tax refunds and implement the prime minister’s export incentive package announced in January 2017. “We appeal to the government to withdraw the levy of Rs3.63 per kWh surcharge in electricity bill and reduce textile related imports from China and India to salvage the textile industry from its total collapse,” the acting president of the chamber said while demanding the implementation of textile policy (2014-19). At the end of the statement, Bajwa requested Prime Minister of Pakistan to take notice of the issue and direct the concerned authorities to provide all the stakeholders a level playing field.
Source: The News International
More than a 1,000 workers of a Chinese-owned Worldwide Value backpack factory in Shwe Linn Ban Industrial Zone in the Hlaing Tharyar township of Yangon went on strike yesterday. Some workers protesting outside the factory. They have laid down 13 demands to their employer. The workers demanded for higher salaries and their rights in accordance with labour law. “We are not asking for anything impossible. We want the employers not to refuse us. We promise that we won’t cause any uproar if our demands are met, strike leader Ko Thet Naing told The workers had 13 demands in total, among them – factory must pay double the wages on Sunday, employers must stop working at 4.30pm on Saturday and employers must pay workers their due in lieu of off days according to the law. There are also demands to increase wages for primary salaries, for workers to be given salaries within work-hours, to employ a cleaner to clean the factory instead of asking the factory workers, to provide good air conditioning at the factory and to make clear the data about wages in the pay slips. “They don’t want to give out a gate pass or give leave even to those who have fainted. They used to send them to the clinic when we carried them out of the workplace. They always cut the salaries to about 15,000 kyats to 20,000 kyats for workers which they have sent to the clinic. They also cut the daily wages for workers who take sick leave” worker Ma Wai Wai told The Myanmar Times. Workers also said that they have to work from 8am to 7:30pm from Monday to Friday and they have been asked to work from 8am to 6:30 every Saturday. Protest leader Ko Thet Naing said workers who do not want to work on Sunday were threatened. “They never pay the overtime rate for Sundays. Most of our workers don’t want to work on Sundays. Workers have to work on Sundays because they all are afraid of warnings” Ko Thet Naing said. According to the workers, they had protest outside the factory because their demands were not met by factory officials although conciliatory talks were made twice on June 16 and 17. Factory officials declined to comment to the media on June 19 on the affairs of their labour disputes. The Worldwide Value Backpacks manufacturing factory opened in Hlaing Tharyar township two years ago and about 1,700 workers have been employed, according to protest workers. According to the 1951 labour laws, an employer must give at least one off day a week with full daily wages. And workers who are above 15 years and who have given one year service can take 10 days off without his wages being cut. Workers must be allowed to take 6 days of casual leave with full daily wages and a worker is also entitled to take 30 days sick leave within a year without any pay cut according to labour law.
Source: Myanmar Times
ISLAMABAD - Textile millers’ demands are unlikely to meet in near future due to lack of funds, revealed the source in the Ministry of Textiles here on Monday. According to sources, Ministry agrees with the most of the demands of the All Pakistan textile Mills Association (Aptma) but there is severe shortage of funds. “We have been writing repeatedly to the Ministry of Finance to release funds but there is a lukewarm response, only Rs9 billion were released against our demand of Rs40 billion to implement PM’s export package,” well placed source said. She said that instead of putting their demands in front of the textile ministry, the millers should question the finance ministry and other departments concerned. Textiles ministry job is to make policies and to work as a liaison between different departments to facilitate the textile sector, they added. It can only request not dictate to the Ministry of Finance, she added. She said that the textile policy and other favourable rules and procedures were initiated by the Ministry of Textiles. It is pertinent to mention here that the textile millers have announced a strike after Eid and threatened to close their factories if their demands not met. The association is demanding immediate implementation of Rs180 billion export package announced early this year. They are asking for clearing payment against Refund Payment Orders (RPO). The association also demands removal of GIDC on RLNG. “We have been writing to Ministry of Finance and other related departments to release funds to clear RPOs but we have received no response yet,” the source said.
Source: The Nation
A textile company in Turkey plans to reopen an old textile plant in North Carolina, creating as many as 260 jobs over three years. A statement from North Carolina Gov. Roy Cooper’s office said Monday that HPFabrics Inc. has agreed to set up an operation in Winston-Salem. The state and Winston-Salem City Council have approved tax incentives for the project. HPFabrics president Rafet Tukek told Winston-Salem development officials the company would spend nearly $4 million to upgrade the closed textile plant in that North Carolina city. He says the manufacturing plant will strengthen trade between the United States and Turkey. The company was formed earlier this year. Tukek told Winston-Salem economic development officials the average annual salary for the local jobs would be about $30,000, plus benefits.
Source: The Associated Press, Seattle Times
