The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 30 JUNE, 2017

NATIONAL

INTERNATIONAL

PM to inaugurate country’s first ever mega trade event Textile India today

Textile India 2017, country's first ever mega trade event for the textile sector, will be inauguarated by Prime Minister Narendra Modi today held in Gandhinagar. Textile industry stalwarts from India and abroad, central and state ministers and other industry stakeholders are expected to participate in the 3-day event. Textiles India-2017 is being organized by Union ministry of textiles with support from Union ministry of commerce and in association with all textile export promotion councils. As many as 1,500 exhibitors, 20,000 participants including 2,500 foreign buyers and sellers, have already registered for the mega event. Countries such as USA, China, UK, Australia, Germany, Bangladesh, South Korea, UAE, Vietnam and others are participating in the event. Experts, policy makers and industry players from within and outside India will deliberate on various aspects and challenges concerning textile industry at the event. Kumar Mangalam Birla, chairman, Aditya Birla group, B K Goenka, chairman, Welspun Group, Sanjay Lalbhai, chairman and managing director, Arvind Ltd and Gautam Singhania, CMD, Raymond Group are going to attend the inaugural ceremony at Mahatma Mandir tomorrow. Union textile minister Smriti Irani, minister of state for textiles Ajay Tamta along with Gujarat chief minister Vijay Rupani and deputy CM Nitin Patel will also attend the inaugural ceremony. Senior ministers of textiles, finance, commerce and industry, road transport and highway and agriculture are scheduled to participate in the 3-day event, which is being held at Mahatma Mandir and Helipad group. A mega exhibition has also been organised .

Source: Yarns and fibres

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GST launch at midnight today: Promises, pitfalls of the historic tax reform

GST to create business efficiency in the medium term: CRISIL GST: A big government tax TV, smartphone, fridge, gold coins: What gets expensive after GST GST on gold: Buying and making jewellery to get expensive for customers. The series of GST Council meetings have demonstrated both pragmatism and flexibility of the government to solve problems as they come along. Continuing in the same spirit, the meeting of the GST Council on June 11, addressed a number of rate issues where representations were received from trade and industry. The government was receptive in sectors with considerable employment potential. For example, the Centre reduced the GST rate from 18 per cent to 5 per cent on job work services relating to gems and jewellery, leather and textiles sector. It was felt that a lot of the value addition in the sector is carried out by workers in their own homes or in small outsourced premises. Similarly, rates fixed for processed foods such as ketchup, jam etc. have been brought down to give a fillip to the food processing industry. This is again an industry with considerable employment potential. India processes only 5 per cent of its horticultural produce in comparison to 70 per cent by countries like Brazil. By reducing the duties, it is expected that the lower price points may help expand the market and create a favourable ecosystem for foreign investment in the food processing sector. In the meeting, the Council also addressed the issue of the inverted duty structure in a number of sectors. For example, the tractor industry, subject to 28 per cent duty on the components against 12 per cent on tractors, would have faced accumulation of credit, creating a cost escalation in the manufacturing. To address this problem, the Council has reduced the GST rate on clearly identifiable tractor components from 28 per cent to 12 per cent. Similarly, in the pharmaceutical industry, the duty rates for certain inputs have been brought down. The government has also responded to wide clamour of small and medium enterprises (SMEs) to reduce their compliance burden in the GST regime.  In response, the government has expanded the turnover range for imposition of flat composition rate without input duty credit from a turnover between Rs 20 lakh-Rs 50 lakh to turnover range of Rs 20 lakh-Rs 75 lakh. This will benefit a large number of SMEs. These will now have to file simple compounding return, without having to give details of invoices. The rate has been fixed at a flat rate of 1 per cent for the traders, 2 per cent for the manufacturers and 5 per cent for the restaurants. The question really is whether the GSTN portal will be ready to receive all the returns. While the big firms have the opportunity to use the services of the GST Suvidha Providers and authorised Suvidha Providers, the SMEs would have to handle things on their own. To help them, the GSTN has created an offline utility to which small and medium industries can upload their returns and from which the GSTN portal will convert the same into their standardised formats. A large number of software accounting firms, such as Tally, Taxman etc., are developing software which will help small and medium firms to send their returns after filtering errors. A large training exercise has been initiated by the GSTN to help the SMEs submit tax returns in the digital mode. While the challenge is daunting, the past experience in implementing large projects like electronic voting and Aadhaar, offers hope.

Source: Business Standard

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GST roll-out: Traders greet tax with nationwide protests, strike on Friday

Need more time to prepare for GST rollout, says manufacturers' body GST transition pangs: Confusing times ahead for retailers, consumers Under GST regime, no tax payable on goods or services exports: Rajagopalan Fabric traders stage strike against 5% GST levy GST rollout: After rate fixing, let's now hope the transition is smooth Even as the Prime Minister Narendra Modi-led government at the Centre rolls out the goods and services tax (GST) on Friday midnight, it will be greeted by protests and strikes across the country. The Bharatiya Udyog Vyapar Mandal, which claims to represent 17,000 traders’ associations and small and medium enterprises, said it would observe a daylong Bharat Bandh (countrywide strike) on Friday, demanding changes in the GST regime. Over the past week, its affiliate associations, especially in the textile sector, have been protesting against some provisions in the GST. Traders, small and medium entrepreneurs, and farmers have planned a series of protests through July and August. “We have several issues with the GST system and rates. The tax on some of the items will be fatal for SMEs,” Bharatiya Udyog Vyapar Mandal Secretary General Vijay Prakash Jain said. If its protests do not get a satisfactory response from the government, the association’s core committee will meet on July 6 to decide on the course of action. Not all traders’ organisations, however, are on the protest path. For instance, the Confederation of All India Traders has decided to undertake consultation with the government. “The GST is a new system. There is scope for amendments in the next six months. But the government should take cognisance of the issues being raised by other traders’ bodies,” CAIT chief Praveen Khandelwal said. Protests of farmers’ and traders’ unions are likely to be more intense than any the Bharatiya Janata Party-led National Democratic Alliance government at the Centre has faced since being voted into power in 2014. These could reach a crescendo in the run-up to the general elections in 2019. Over a hundred farmer organisations will stage protests and take out marches from Mandsaur in Madhya Pradesh, where six farmers were killed in police firing on June 6, to New Delhi and other parts of the country. Farmers’ outfits have decided to mark August 9, the anniversary of the Quit India Movement of 1942, with protests in state capitals and New Delhi. The monsoon session of Parliament, which starts on July 17, will be on then. A march, supported by 130-odd farmer organisations, to highlight agrarian distress will begin from Mandsaur on July 3 and reach New Delhi on July 18. A farmer leader, who did not want to be identified, said tillers’ outfits of all political hues, including those associated with the RSS, were coming together for these protests and to demand the implementation of the Swaminathan commission’s recommendations. All central trade unions, except the Rashtriya Swayamsevak Sangh (RSS)-supported Bharatiya Mazdoor Sangh, are scheduled to meet in New Delhi on August 8. They will strategise on how to protest against the Modi government’s economic policies, including disinvestment of public sector units such as Air India and privatisation in the Indian Railways. Lok Sabha member Raju Shetti, chief of the Swabhimani Shetkari Sanghatana, has committed his support to the protests. Shetti’s party is part of the NDA governments at the Centre and in Maharashtra. Protests have also been planned outside the NITI Aayog on July 3. The monsoon session of Parliament is likely to be a stormy one, with the Opposition raising issues of farmer distress, mob lynchings, and the GST impact on SMEs.

Source: Business Standard

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Textile Traders Three Day Strike Against GST Ends On 29 June

The three day strike which textile traders sworn on took nasty turns with each passing day with several traders joining the bandwagon to voice their concerns over GST. The strike that commenced on 27 June, witnessed many textile traders from different parts of the country coming together against goods and services tax (GST). The three day strike which textile traders sworn on took nasty turns with each passing day with several traders joining the bandwagon to voice their concerns over GST. Ammanabolu Prakash, President of The Andhra Pradesh Federation of Textile Associations said, “There was no single reason for carrying out these strikes, the government had promised us they will bring down and not enhance taxes, which they did.” Agitated Prakash added saying, “For 65 years there was no tax levied so how can this government implement it all of a sudden. They did not give us sufficient time to prepare, to bear the tax burden.” He said that there are 29 different trades in our country but textile industry operates in a layered manner which is distinct the way other industry functions. He spoke on the various issues that the industry may face including huge labor-loss and its negative impact on salaries once GST gets implemented. Ganotra Enterprise, another Trader, Distributor and Supplier company of Ahmedabad, Gujarat said that they are not scared to pay taxes but are fearful of the problems which would follow after the enactment of GST. “Did they discuss with us even once before taking the decision to levy taxes on textiles? A textile trader is already paying income tax,” Ganotra Enterprise. Various distinct Textile Traders Associations such as Federation of Surat Textile Traders Association, Secunderabad Cloth Merchants Association and The Telangana State Federation of Textile Association have joined hands against the largest tax reform the nation has seen. Others including Hyderabad Wholesale and Cut Piece Merchants Association, Textile Traders Association and Jharkhand Wholesale Clothes Traders Association are also not in favor to levy tax on textiles.

Changes proposed under GST in Textile Industry

The Indian textile industry contributes about 10 per cent of the total annual export and this value is expected to rise under GST. Cotton and wool (natural fibres) which earlier used to attract zero central excise duty, will now be taxed at 5 per cent. Silk and jute will not be taxed. 18 per cent GST would be levied on man-made or synthetic fibre yarn. While apparels which used to attract 6 to 7 per cent before will now be taxed at about 12 per cent. Apparels priced below Rs.1000 would be under the 5 per cent tax slab whereas, those priced above Rs.1000 would be taxed 12 per cent under GST. J. Thulasidharan Chairman of Confederation of Indian Textile Industry (CITI) has urged the Union Finance Minister, Arun Jaitley and Hasmukh Adhia, Secretary of Ministry of Finance, for reducing GST rates on moisture management fabric (MMF) and yarns from 18 to 12 per cent. “It would prevent seamless flow of input tax credit and allow breakage of value chain. High rates on MMF and synthetic yarns would inevitably affect the actions and incentives of the small and medium-sized enterprises (SMEs) of the textile to remain in the business,” said Thulasidharan. While the textile traders are opposing the move, many are of the view that with this rate, Indian producers will become more competitive in the world which would enable the textile export business to bloom globally.

Source:  Business World

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Textile: Treading Cautiously

The business is not doing well for Manish Kumar. In the past two years, he has reduced his workforce from 200 workers to mere 15. He runs an apparel manufacturing unit at Mayapuri, a major hub of small scale industries in West Delhi. Like other owners in the hub, Kumar, too, is concerned about the upcoming GST structure. “The movement of products will slow down. We could lose our competitive edge in the global arena,” says Kumar who runs Himshakti Exports. Under the new provision, a manufacturer should fill a GST form online for transporting goods from godown to factory worth more than Rs 50,000. The goods will not be transported unless it is approved. Also, industry veterans point out that the 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. “We need to find new fabric manufacturers who are GST compliant. Leaving old associations will impact our daily business needs. Also, the wait for approvals will hamper our chances to survive competition from China,” says Kumar. Moreover, there was no levy of excise duty in textile sector in the past 13 years. The medium and small scale enterprises weren’t dealing with excise duty filing procedure at all. “We need to understand and learn the duty filing procedure. We are happy that government has given us the window of two months for compliance,” says Tony Uppal, promoter of Pee Empro Exports, a garment exporter with annual revenue of Rs 300 crore. While exporters will receive the refunds of the duties filed, manufacturers are anticipating delays in the refund of the duties. Businesses are hiring people for the accounts department. “There are no other preparations or challenges that we have faced yet. However, with the roll-out of GST we may start facing the shortcomings,” says S.K. Nair, former secretary general of Confederation of Indian Textile Industry. “The industry has put all expansion plans on hold as they want to see how GST rollout will impact their businesses.” The impact of the GST is likely to be neutral to positive across segments in the textile industry compared to the current tax regime, rating agency ICRA has said. “Considering that the GST rates announced for the textile categories are more or less in line with the existing effective tax rates,” ICRA does not envisage any impact on these product categories. Large, organised players welcome a pragmatic GST framework for the industry with a tax slab of 5 per cent for fabrics and 12 per cent for branded apparel. They believe, that the GST rate of 5 per cent is apt for the category of readymade garments priced below Rs 1,000. “We have been working closely with our trade and channel partners on GST preparedness for the last six months. Our technology and ERP platforms are being upgraded to manage smooth transition and ensure compliances,” says Sanjay Behl, CEO, Lifestyle Business, Raymond. Till second week of June, in Surat, the country’s man-made fabric hub, around 65,000 shops, textile markets and powerloom weavers observed a complete bandh. Traders say that there are complexities in the GST rates. However, the industry is now eagerly waiting for GST roll out and it is confident that, in the long term, the tax will create more jobs and value for the industry.

Source: Business World

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Strike against GST: Textile markets wear deserted look

The textile markets that usually throb with people and  remain abuzz with activity wear a complete deserted look on Wednesday — the second day of the three-day GST strike called by textile traders. Shutters have been pulled down and packets containing stocks lie outside. A man brandishes a poster with an anti-GST message printed on it, during a sit-in by the traders protesting the soon-to-be-implemented tax regime in Surat.  Mukesh Jain, a 27-year-old textile trader who entered the textile trading business just two months ago, found a unique way to register his protest against the GST on the textile industry. Jain spent Rs 575 and got “No GST” embroidered on a pista-coloured cotton saree to express solidarity with 65,000 textile traders of Surat city who are threatening to go on an “indefinite strike” as Prime Minister Modi prepares to hardsell India as “textile and apparel destination” to 5,000-odd textile delegates arriving in Gandhinagar on June 30. “The GST will eliminate small traders like me. I have just started the business. I am already paying rent for my shop and, now I will need to cough up at least Rs 20,000 to hire an accountant to help me with filing returns for the GST,” says Jain. He was at Radha Krishna Textile Market, which is one of the 165 wholesale textile markets in a two sqkm area of Surat city. Jain unfurls the saree with help of other traders, all wearing white tees with “No GST, No Registration” imprinted in front and “textile yuva brigade” at the back. These traders have gathered for a “Ram Dhun” in protest against the proposed 5 per cent GST on Textile sector. “We cannot fight the government like the farmers do. We do not want to get beaten like the farmers,” says Manoj Agarwal, president, Federation of Surat Textile Traders Association (FSTTA). The textile markets that usually throb with people and remain abuzz with activity, wear a complete deserted look on Wednesday — the second day of the three-day strike called by textile traders. Shutters have been pulled down, packets containing stocks lie outside as security guards at the entrance chat among themselves. “Normally, you will take at least an hour to reach here,” says Agarwal, hinting at the activity that surrounds the place. Kameshwar Varma, who sells “puri and sabzi” for Rs 20 per plate, is sitting idle smoking a bidi at his food stall near Radha Krishna textile market. “I earn Rs 25,00 every day by selling food. But there has been no business since the last three days. I cannot even go home,” says Varma, a migrant from Jharkhand. Similarly Anil Shah, who operates Mahalaxmi plastic bag shop in a nearby textile trading market, is finding no clients. “My plastic bags are used by traders in packing the sarees and dress materials. On regular days, the daily turnover of business ranges between Rs 15,000-17,000. Due to the ongoing strike of the textile traders, I have not sold single bag. My business also had been affected. Everyday we are facing loss in the business. We pray to God, that strike should end at the earliest so that we could do our business.” The agitating textile traders too are losing business that can be conservatively valued at Rs 100 crore a day. “The 23-day time period given to us to get ready is too little. Moreover, the government instead of recovering the 12 per cent GST (which we used to pay as VAT) on yarn, it has imposed GST on the entire supply chain which includes yarn manufactures, weavers, processors, embroiderers, and traders. This is not acceptable to us. We have so far decided not to register ourselves under GST and if a solution is not found by June 30, then we will go for an indefinite strike,” Agarwal from FOSTTA says. Experts point out that the value chain of textile industry in Surat begins with man-made filament being spun into yarn, which is then weaved in power-loom units, sold to textile traders who get it dyed and printed and embroidered at times. The traders later pack it to cloth merchants across the country. A senior textile trader Rajesh Agarwal, says, “We know that we are fighting our own people. Almost 80 per cent of us is aligned to BJP in one way or the other…. However, politicians are wary of pushing our case, because they fear that they might end up not getting a election ticket if they do so.” Similar views were expressed by Rajnish Litha, who owns 13 of the 1.5 lakh embroidery machines that provide value-addition to the textile industry. Lamenting on the loss of work due to the ongoing GST strike, Litha while sitting in his office having two huge cut-outs of PM Modi, says, “It is the small players like me who will perish. No politician will help them, nor do they have the necessary finances to go to Delhi and present their case.” Litha says that he has sent seven of his workers home due to paucity of work at his workplace. “The textile industry had somehow come out from demonetisation. Even if there is a solution, the GST will adversely impact business till Diwali.” A large section of the textile industry in Gujarat, including those in Ahmedabad and elsewhere is up in arms against the government at a time, when the Union Textiles Ministry is organising a grand three-day convention titled “Textiles India 2017″ at Gandhinagar beginning June 30. PM Modi along with his 11 senior cabinet colleagues like Minister of Textiles Smriti Irani, Finance Minister Arun Jaitley and MoS for Commerce and Industry Nirmala Sitharaman are expected to host delegates from South Korea, Russia and Bangladesh, as well from states like Andhra Pradesh, Assam, Maharashtra, Karnataka, Telengana and Jharkhand. However, local traders in Surat say they have not been invited.”We have been assured that a solution will be ironed out when PM Modi visits Gujarat for the textile summit. However, we have not been invited for the event,” said Manoj Agarwal of FOSTTA. The textile markets are set to reopen for business on June 30. However, stakeholders claim that if a solution is not found then they will be forced to intensify the agitation. Federation of Gujarat Weavers Association secretary Mahendra Ramolia says, “There are over six lakh powerlooms running in Surat city, which employees labourers coming from Maharashtra, Uttar Pradesh, Bihar, Odisha, and other states. With the traders stopping purchase of grey bales, we are facing tough time. Over 60 per cent of the powerloom factories have put limit on their productions using their stocks. The industry is facing 60 per cent production loss, due to the strike of textile traders.” Vijay Patel, a powerloom factory owner running 25 power loom machine unit had kept his factory closed, since last three days. “Due to the ongoing strike of the traders, my clients have stopped purchasing grey cloth from us. It is difficult for us to survive as we have to face expenses like salary of powerloom machine operator, power charges. Without business, we cannot keep our factory open and bear expenses. I have not registered my firm under GST, but have come to know that 5 per cent GST had been imposed on powerloom. I don’t know much about GST, but I will work accordingly what other powerloom factory owner does,” says Patel. South Gujarat Textile Processors Association president Jitubhai Vakharia is more measured in his assessment. “We are doing job work of textile traders, who send grey cloth to us for getting it dyed and printed. We are also coming under 5 per cent GST slab. There are over 350 textile processing houses in the city. Our processing house has enough stock, and there is nothing to worry for our industry. The textile traders are on strike, we know. We hope that some possible solution will come out in coming days,” says Vakharia.

Source: The Indian Express

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Textile traders in Bengal shut shop in protest

KOLKATA, JUNE 29: Textile traders in West Bengal’s Burrabazaar, the prime wholesale market in Bengal accounting for nearly 10 per cent of the country’s textile sales, have downed shutters till tomorrow. Other traders in Burrabazaar are expected to follow suit tomorrow. While textile traders are demanding exemption from GST, another section of traders expected to join the strike are demanding simplification of compliance procedures under the new tax regime. GST rate on textiles is 5 per cent.

Exemption sought

“We want complete exemption from GST,” Arun Bhuwalka, president Chamber of Textile Trade & Industry (COTTI), said. Some five lakh textile and garment shops across the state and 5,000-odd shops in Burrabazaar have remained shut. The expected loss is said to run into ₹2,000 crore a day for the textile traders of Bengal.

‘Essential commodity’

Claiming that textiles fall under essential commodities, Bhuwalka said the GST Council had not taken into account the realities of the textile trade. The trade is mostly on credit. Challans and sales receipts take nearly 6-8 months time to generate. Moreover, there is a time lag between the supply of raw material and the actual sales, he said. “GST does not take into account all these issues. How are we expected to operate under a framework which does not take into account how the trade operates?” he told BusinessLine. The textile traders will take a call on the next course of action after the GST Council meeting on June 30.

Multiple returns

The prospect of having to file multiple returns has also irked the traders.

Mahesh Singhania, senior vice-president, Rashtriya Vyapar Mandal, pointed out that under the VAT system, returns were filed once in three months. Under GST, it will be thrice a month. Such compliance issues will throw small traders off-track and impact their business, he said. Accordingly, a section of traders will go on protest strike on June 30 demanding simplification of procedures. “We are not against GST. We just want simplification of the procedures,” Atma Ram Kajaria, president, Federation of West Bengal Trade Association, said. “As a trade body we cannot ask anyone to go on a strike. Traders are doing it on their own free will,” he added.

Source: Business Line

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ICRA revises India’s cotton outlook to stable from negative

Favourable weather conditions and remunerative prices are expected to improve the cotton supply situation in India in the next one year, ICRA said today, revising its outlook for cotton to stable from negative. India’s cotton-spinning industry has been facing twin challenges of subdued demand and high cotton fibre prices as a result of tight cotton availability since the July 2016.  Favourable weather conditions and remunerative prices are expected to improve the cotton supply situation in India in the next one year, ICRA said today, revising its outlook for cotton to stable from negative. The rating agency estimates the domestic cotton output to increase by around 6 per cent to 36 million bales in 2018. “A few initial weeks of the cotton sowing season have already witnessed increased acreage vis-a-vis last year and the trend is expected to sustain. This is likely to be complemented by the forecast for normal monsoons, with the possibility of El Nino formation gradually waning,” ICRA said. India’s cotton-spinning industry has been facing twin challenges of subdued demand and high cotton fibre prices as a result of tight cotton availability since the July 2016. Amid a decline in exports to China and subdued domestic demand following the demonetization drive, the growth in total spun yarn production declined to a five-year low in 2016-17. “The expectations of higher output in the upcoming cotton season supported by increased sowing and a favourable monsoon forecast is likely to create a downward bias in cotton prices from Q2 FY2018 onwards, vis-a-vis the peak levels witnessed during the past one year. This augurs well for the domestic cotton spinning industry,” said Jayanta Roy, Senior Vice- President and Group Head, Corporate Sector Ratings, ICRA. According to the rating agency, despite the weakness in production and sales volumes, domestic cotton yarn prices continue to be firm following the high cotton prices. However, the possibility of a further increase in cotton yarn prices is low due to weak export prospects.

Source: Financial Express

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Biswajit assures cotton and synthetic yarn export by 2020

Imphal, June 29 2017: Textiles, Commerce and Industry Minister Thongam Biswajit has assured to export cotton and synthetic yarn to the other parts of the country by 2020.He also stated that as a pilot project cotton plant will be planted at Moreh and Jiribam. The statement was stated during the launching function of Handloom and Handicrafts Delivery Scheme under 100 days programme of the Government held today at Manipur Film Development Society, Palace Gate, Imphal.The launching function was jointly organised by Department of Textiles, Commerce& Industry and Directorate of Handloom & Textiles. Biswajit asserted that there are 2.04 lakhs weavers and 1.9 lakhs loom owner in our state, which is the highest in the country. As our handloom and handicrafts product showcase our culture and tradition, we need to promote and preserve our weavers and artisans. Minister stated that keeping in mind about the welfare of the weavers and artisans, home delivery of raw materials for handloom and handicrafts is being launched. The scheme aims to enhance the income and productivity of the weavers. As the department is going to delivery raw materials at their doorstep, the weavers and artisans will be able to save their time and money, he said adding that, at the same time the government will also buy back their finished products. Altogether 1612 weavers and artisans have been registered under this scheme. Weavers, who are yet to register themselves, can still register their names by providing their contact number and Aadhar card. In connection with the function, Solar Home lighting systems were also distributed to weavers. Th.Biswajit said that they are distributing solar lamps for the weavers under the funding of Ministry of Energy and Renewable Resources with an aim to increase their profit and reduce their expenditure. For the first phase 7078 beneficiaries will receive solar lamps. The main target of Industry Department is to generate employment for 25000 youth. The minister said that paper work is almost finished for reviving the Spinning Mill at Loitang Khunou. It is the only spinning mill in the entire Northeast for cotton yarning, he said adding that, as a pilot project, cotton plantation will be under taken at Moreh and Jiribam. The Minister said the government through the Industry department will be able to export cotton and synthetic yarn by 2020, however, we need determination and hard work of all concerned to achieve this. Lauding the department on their achievement, Minister Biswajit said that the department's achievement during the 100-days programme is very unique but there are still a lot more to achieve. We need to explore our State more and promote tourism, sports, our handicrafts and handloom, push our medical industry further. This will go a long way in improving our economy, the Minister added. The Minister also warned of stern action against anyone found involved in any irregularities during the process of awarding PMEGP loan. Officials found taking bribe will be strongly dealt with, while the names of those applications found giving bribe will be cancelled. Biswajit also appealed to all to work in unity and in coordination, as working in coordination will bring peace in our society. Peace will bring development, he said.

Source: IT News

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India's 2016/17 cotton exports seen down 17% to 6 million bales: Trade body

India's cotton exports in 2016/17 are likely to fall 17 percent from a year ago to 6 million bales, a leading trade body said on Thursday, as an appreciating rupee dented the competitiveness of the Indian fibre in the world market. The world's biggest cotton producer is likely to have harvested 33.63 million bales of cotton in the 2016/17 season that started on October 1, slightly down from 33.78 million bales a year ago, the Cotton Association of India said in a statement. Pakistan, Bangladesh, China and Vietnam are the major buyers of Indian cotton.

Source: moneycontrol

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Now, farmers can breed new Bt cotton varieties without NoC from developer

In a major relief for plant breeders and farmers, the Protection of Plant Varieties and Farmers’ Rights (PPVFR), the regulatory authority which supervises the rights of seed companies, has decided to dispense with the requirement of no-objection certificates (NoC) from the trait developer for breeding new Bt cotton varieties with genetically modified (GM) traits. Informed sources said that the authority, under the chairmanship of R R Hanchinal, passed the resolution in its meeting held recently after receiving complaints from the users of GM cotton seeds, popularly known as Bt cotton, about the arbitrariness of the NoC stipulation, which was leading to a monopoly by its developer Monsanto. Based on its earlier decision, the authority obtained a legal opinion that indicated that the NoC stipulation was contravening the legal provisions and giving an undue advantage to trait developers like Mahyco Monsanto Biotech (MMBL). MMBL is a 51:49 per cent joint-venture between the American biotech company Monsanto Inc and Indian company Maharashtra Hybrid Company Ltd (Mahyco) that licenses the GM insect-resistance trait in cotton. A notification in this regard is expected shortly. Attempts to reach Monsanto India and MMB did not yield any result. Confirming the development, M Ramasami, managing director of Hyderabad-based Rasi Seed and president of the National Seed Association of India (NSAI), said, "We have come to know about this decision through our industry colleagues but not seen a notification yet. While this is good for the domestic seed companies, fresh investment in trait development would get impacted." However, Shivendra Bajaj, who heads the representative body of leading biotech companies in India, says that the existing clause does not undermine the rights of the breeders at all. Instead, the requirement of an NoC ensures that the breeder has not violated third party rights while seeking registration. "A letter of confirmation or NoC from the technology provider would ensure that proper and accurate information is submitted by the seed company to the regulatory authorities at the time of application. This also ensures a fair and transparent mechanism for farmers and regulators to define the critical credentials of the variety. The NoC requirement does not in any way undermine the rights of the plant breeder to seek variety registration," said Shivendra Bajaj, Executive Director of the Association for the Biotech Led Enterprises- Agriculture Group (Able - Ag). A senior industry official said, "The requirement of NoC from the trait developer for registration of a variety or hybrid containing a GM trait had no basis in the PPVFR Act. Hence, this needs to be dispensed with.” Upon protest by the NSAI, the Genetically Engineering Approval Committee (GEAC) stopped giving approvals for new new varieties and transferred the responsibility to the Indian Council of Agricultural Research (ICAR)/Department of Agriculture and the Cooperation & Farmers Welfare (DACFW), who removed the NoC stipulation from trait developer in the guidelines published on April 2017. With this, breeders and farmers will be able to freely use any GM trait for developing new varieties leading to a competitive situation in the country. Meanwhile, the authority is expected to proceed with registration of fresh applications for new varieties without NoC from the trait developer after the notification. According to sources, the PPVFR has been insisting on this since 2011 but finalised the decision only in 2015. GM cotton, the first GM product, was launched in India in 2002. It resulted in an increase in cotton productivity in its initial four–five years. Farmers rapidly shifted to using Bt cotton that offered low use of pesticides, resulting in huge savings in a farmer's raw material use. Its use spread rapidly across 95 per cent of India’s cotton acreage, a situation that continues even today. But, overall yield reportedly started stagnating after the initial success. An increase in cotton output, therefore, was attributed to the proportionate increase in acreage. Scientific studies prove that the Bt trait only gives protection against bollworms but no improvement in yield. However, as non-Bt cotton can't survive aside of Bt cotton due to pest migration from the latter to the former, all farmers were forced to adopt Bt cotton. Farmers who grow non-Bt cotton along with Bt cotton would face severe infestation by pests migrating from the Bt crop area. Further, it can be clearly deduced from data that the productivity enhancement in cotton is due to the adoption of hybrids and not because of Bt genes, said an industry official.

Source:  Business Standard

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Global Crude oil price of Indian Basket was US$ 46.62 per bbl on 29.06.2017

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$ 46.62 per barrel (bbl) on 29.06.2017. This was higher than the price of US$ 45.64 per bbl on previous publishing day of 28.06.2017. In rupee terms, the price of Indian Basket increased to Rs. 3005.46 per bbl on 29.06.2017 as compared to Rs. 2944.93 per bbl on 28.06.2017. Rupee closed stronger at Rs. 64.47 per US$ on 29.06.2017 as compared to Rs. 64.53 per US$ on 28.06.2017. The table below gives details in this regard: 

Particulars    

Unit

Price on June 29, 2017 Previous trading day i.e. 28.06.2017)                              

Crude Oil (Indian Basket)

($/bbl)

             46.62                (45.64)

(Rs/bbl)

            3005.46           (2944.93)

Exchange Rate

  (Rs/$)

             64.47                 (64.53)

 

 Source : PIB

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CAI inks MoU with CCA to promote cotton trading safer

The Cotton Association of India (CAI) has signed an MoU with its counterpart in China, the China Cotton Association (CCA) to promote good cotton trading practices and cooperation. The partnership will go a long way in making cotton trading safer in both countries. According to Nayan C Mirani, President CAI, India and China are the largest cotton economies, and signing this MOU will go a long way in resolving the issues faced by traders in both the countries. The MoU envisages co-operation on a host of matters relating to cotton, including regular exchange of delegations between the two trade bodies, training, information exchange and dissemination and speedy resolution of members' issues, among others, the CAI said in a release. For many years China has been the biggest importer of Indian cotton. This MoU will definitely promote Indian cotton in China in a big way. It is an historic development and will foster better understanding between CAI and CCA. The MoU was signed by CAI president Nayan C Mirani and Gao Fang, legal representative of CCA, in the presence of Dai Gongxing of CCA and the Indian delegates who accompanied Mirani. The Indian delegates present at the event included CAI board members, Vinay Kotak, Arun Sekhsaria, Raja Gokulgandhi, Rishit Dholakia and Mohit Shah, former president of the International Cotton Association (ICA) UK.

Source : Yarns and fibres

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Global Textile Raw Material Price 2017-06-29

Item

Price

Unit

Fluctuation

Date

PSF

1110.00

USD/Ton

0.67%

6/29/2017

VSF

2212.65

USD/Ton

0.13%

6/29/2017

ASF

2175.90

USD/Ton

-0.67%

6/29/2017

Polyester POY

1150.43

USD/Ton

0.64%

6/29/2017

Nylon FDY

2719.87

USD/Ton

0%

6/29/2017

40D Spandex

5072.19

USD/Ton

-0.86%

6/29/2017

Polyester DTY

2352.32

USD/Ton

0%

6/29/2017

Nylon POY

1484.90

USD/Ton

0.50%

6/29/2017

Acrylic Top 3D

2866.89

USD/Ton

0%

6/29/2017

Polyester FDY

5821.99

USD/Ton

0%

6/29/2017

Nylon DTY

1367.29

USD/Ton

0%

6/29/2017

Viscose Long Filament

2528.74

USD/Ton

0%

6/29/2017

30S Spun Rayon Yarn

2866.89

USD/Ton

0%

6/29/2017

32S Polyester Yarn

1687.79

USD/Ton

0%

6/29/2017

45S T/C Yarn

2705.17

USD/Ton

0%

6/29/2017

40S Rayon Yarn

2308.21

USD/Ton

0%

6/29/2017

T/R Yarn 65/35 32S

1837.75

USD/Ton

0%

6/29/2017

45S Polyester Yarn

2278.81

USD/Ton

0%

6/29/2017

T/C Yarn 65/35 32S

3028.61

USD/Ton

0.49%

6/29/2017

10S Denim Fabric

1.37

USD/Meter

0%

6/29/2017

32S Twill Fabric

0.85

USD/Meter

0%

6/29/2017

40S Combed Poplin

1.18

USD/Meter

0%

6/29/2017

30S Rayon Fabric

0.66

USD/Meter

0%

6/29/2017

45S T/C Fabric

0.67

USD/Meter

0%

6/29/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14702 USD dtd. 29/06/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Pakistan-Textile sector ‘needs govt attention’

Pakistan’s ailing textile sector needs immediate attention of the government, the Federation of Pakistan Chambers of Com­merce and Industry (FPCCI) said on Wednesday. The chairman of FPCCI’s regional committee on industries, Atif Ikram Sheikh, said in a statement that the textile sector was the largest urban employment provider and largest foreign exchange earner and therefore deserved resolution of the problems, which have affected its exports. Energy crisis, refund claims, input costs, the burden of taxes and lack of enabling rules have increased the cost of doing business for the sector, he said. He said the current scenario was depressing as the production was restricted, exports were shrinking and the sector stood at a disadvantage as far as the economy and government’s support were concerned. In this situation, the textile millers had no option but to start protests, he noted. He said that instead of moving forward with the value addition, the country was going backwards by exporting more raw materials, such as cotton and yarn. All the regional countries, he said, were following good practices, facilitating export sector, paying hidden subsidies while allowing export of surplus cotton only. He said a proper regulatory policy for cotton and yarn exports and a liberal import policy for raw materials could save “one of the most important industries of the country”.

Source: Dawn.

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Fashion Brands Worldwide Sign on To Extend Bangladesh Safety Accord

Leading global fashion brands and trade unions agreed Thursday to continue a safety program involving thousands of garment factories in Bangladesh for another three years. Two Switzerland-based global trade unions — IndustriALL Global Union and UNIGlobal Union — and brand representatives announced the agreement in Paris. The current five-year campaign for fire and building safety expires next May and involves only European brands. Another group of North American brands is working separately to improve safety conditions in Bangladesh. Following the collapse in 2013 of Rana Plaza, a complex housing five garment factories, global clothing companies joined the Bangladesh government in promising to improve safety standards. The collapse, which killed more than 1,130 workers and injured 2,500 others, highlighted grim conditions in the country's garment industry, the second largest in the world with about 4,000 factories employing about 4 million workers and earning $25 billion a year from exports, mainly to the United States and Europe. Low wages in the South Asian country have attracted global apparel brands and retailers. Since then, representatives from North American and European brands have visited the country's garment factories to suggest improvements or sever ties with factories that failed to improve. The Bangladesh government has also hired more than 350 new factory inspectors and passed legislation setting up a workers' welfare fund and allowing stronger union representation. As of Thursday morning, 23 companies had signed the new agreement, said Christy Hoffman, deputy general secretary of UNIGlobal Union, which represents workers in the retail sector. But a large majority of the previous signers — 217 brands — are expected to be part of the new deal, which will include more worker training, she said. The agreement has so far been signed by Kmart Australia, Target Australia, Primark, H&M, Inditex, C&A, Otto, KiK, Aldi South, Aldi North, Lidl, Tchibo, LC Waikiki and Helly Hansen. A further eight brands, such as Esprit, Hüren, Bestseller, Wibra, Schmidt Group, N Brown Group, PVH, Specialty Fashion Group Australia have committed to signing it. The initial agreement covered about 2.5 million workers, Hoffman said. "It's a remarkable achievement. Four years ago, we signed this agreement and some of the brands said this could be a one-off agreement only in the aftermath of a big crisis," Hoffman said in an interview after the Paris announcement. "In fact, we have proven that this is a model that works, that brands and unions can make change at the work site through classical industrial relations." The new agreement extends building safety inspections for all covered factories, ensuring that safety improvements achieved under the first accord will be maintained and any new problems will be addressed, IndustriALL General Secretary Valter Sanches said in a statement. Under the first accord, engineers carried out fire, electrical and structural safety inspections at more than 1,800 factories, identifying 118,500 hazards, of which 79 percent were addressed, Sanches said. He said the agreement "shows that industrial relations can be used to save lives and improve global supply chains." But it was not without criticism as to its efficacy. For instance, in 2014, an inspection of Bangladesh garment factories was conducted in connection with the Accord for Fire and Building Safety in Bangladesh, a legally binding agreement between international trade unions IndustriALL and UNI Global, Bangladesh trade unions, and international brands and retailers. The round of inspections took place at 1,106 factories used by 150 Western brands, and resulted in the identification of 80,000 safety-related problems. According to Brad Loewen, the Accord's chief safety inspector, safety hazards were found in every factory inspected, with nearly 20 factories being labeled as bearing a heightened risk of collapse, and 110 other factories were deemed to have notable structural issues. More recently, a New York University's Stern Center for Business and Human Rights study revealed that Bangladesh has far more factories engaged in the global garment business than stated by its industry and millions of people working in them are exposed to unsafe conditions. While Bangladesh's $25 billion garment industry has been in the throes of a safety overhaul since the Rana Plaza collapse, brands have been able to continue to sidestep regulations by subcontracting.

"Though global brands assert they have strict policies against subcontracting, in reality, millions of workers and thousands of smaller factories are producing their goods," said Sarah Labowitz, co-director of the Stern Center for Business and Human Rights, in a statement. "Working in these factories is often highly risky," she said. Just this year, the Awami League party (one of the two major political parties of Bangladesh), along with garment industry employers, have intensified their crackdown on apparel workers following mass walkouts over wages and working conditions in December 2016. Early this year, the international media and giant international retailers, alike, voiced concerns about the situation in Bangladesh after tens of thousands of workers took to protest in connection with the conditions of their employment, namely the harsh conditions and poverty-level wages. The Bangladesh government and garment factory owners fear the eruption of such protest efforts will negatively impact investor profits.

Source: The Fashion Law

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Nan Ya files trade petition in US against Korea & Taiwan

Nan Ya Plastics Corporation, America, a US synthetic fibre producer, has filed a petition alleging that dumped imports of low melt polyester staple fibre (PSF) from Korea and Taiwan are causing material injury to the domestic industry. It has asked the US government to investigate dumping by the subject imports and injury to the domestic industry. The company has also urged the government to impose antidumping duties on the imports of low melt PSF from Korea and Taiwan. The petition alleges that producers in Korea are dumping low melt PSF in the US market at margins of 32.95 to 45.84 per cent. The petition further alleges that producers in Taiwan are dumping low melt PSF in the US market at margins of 30.24 to 62.52 per cent. The petitions were filed concurrently with the US department of commerce and the US International Trade Commission (USITC). The filing is in response to surging volumes of aggressively-priced low melt PSF imports from Korea and Taiwan. Subject import volume increased from 151.4 million pounds in 2014 to 199.1 million pounds in 2016, or by over 31 per cent over that three-year period, and continued to rise in the first quarter of 2017. The imports undersold the domestic industry, taking sales from and exerting considerable downward pricing pressure on US producers. As a result of increasing volumes of low-priced imports, the condition of the domestic industry has suffered. The domestic industry has experienced declining production and shipment volumes and deteriorating financial performance as a result of the lost sales and price depression caused by the imports. Korean and Taiwanese producers of low melt PSF also continue to threaten the domestic industry with additional injury due to their large and growing production capacity and extensive unused capacity that will be used to export large volumes of unfairly low-priced and subsidised product to the US. The injury to the domestic low melt PSF industry is likely to continue if duties are not imposed to offset these foreign producers' unfair trading practices. "The U.S. companies producing low melt polyester staple fibre have suffered for years against rising volumes of dumped imports from Korea and Taiwan. The domestic industry needs trade relief from unfair import competition so that the business can thrive and continue providing critical manufacturing jobs in the US," said Paul Rosenthal of Kelley Drye & Warren LLP, counsel for Nan Ya. The commerce department will determine whether to initiate the antidumping and countervailing duty investigations within 20 days of filing of the petitions and the USITC will reach a preliminary determination of material injury or threat of material injury within 45 days of filing. The entire investigative process will take approximately one year, with final determinations of dumping, subsidisation, and injury likely occurring by the middle of 2018.

Source: fibre2Fashion

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Pakistan : Farmers advised to drain out rainwater from cotton fields

Multan Central Cotton Research Institute (CCRI) Multan Director Dr Zahid Mahmood on Thursday advised farmers to drain out rainwater from their cotton fields within 24 hours after rain. Cotton was a sensitive crop and its roots would be unable to breathe and absorb food in case of presence of rainwater in the field for over 24 hours and it may cause plant’s death, Dr Zahid said in a statement on Thursday. The rainwater should be drained into empty fields and farmers should also pay attention to removing weeds and must perform hoeing after rain, he said. The weeds that were not removed by hoeing should be removed by hands, he said, adding that weeds served as habitat for enemy pests and could cause 30-40 per cent production loss by sharing resources meant for cotton plants. Dr Zahid said farmers should perform pest scouting twice a week and apply spray only after consulting agriculture officials.

Source: Pakistan Observer

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China's Sinomach merges with state textile giant

BEIJING, June 29 (Xinhua) -- China's State Council has approved a merger between China National Machinery Industry Corporation (Sinomach) and textile giant China Hi-Tech Group Corporation, an official statement announced Thursday. The textile conglomerate has become a wholly-owned subsidiary of Sinomach, an equipment manufacturing group, and will no longer be directly supervised by the State-owned Assets Supervision and Administration Commission (SASAC), according to the statement released on SASAC's website. The news brought down the number of central state-owned enterprises (SOEs) to 101. The SASAC has planned to reduce the number of central SOEs to under 100 as part of the ongoing reforms to improve efficiency of the companies. The merger was in line with the country's aim to raise the competitiveness of SOEs, bringing technology and research capabilities to companies such as China Hi-Tech Group, which is in an industry with shrinking revenues, said Li Jin, chief researcher with the China Enterprise Research Institute.

In afternoon trading, the shares of subsidiaries under the two companies soared as investors stay bullish on the synergy that the merger will bring. Jingwei Textile Machinery Company, a subsidiary of China Hi-Tech Group, for example, jumped more than 5 percent on the news of the merger.

Source : Fibre2fashion

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