The Indian textile industry will grow in size to be a $250 billion market in the next two years from $150 billion now as the sector has tremendous growth potential, according to textile commissioner Kavita Gupta. Currently the domestic market of the country is estimated to be a $110 billion market, while the country exports textiles of $40 billion. A lot of optimism has been created in the textile sector in the last two years, said Gupta while addressing the audience at the inauguration of the 6th edition of 'HGH India 2017'. She added that multiple schemes have been introduced to upgrade technology used in the sector and extend financial aid to it. The Centre had announced the capital investment subsidy which was introduced in segments such as garment, weaving, technical textile and made ups to help the sector, stated Gupta. Rebate on state levies were introduced to promote exports and additional 10 per cent subsidy on made ups and garment segments, leading to home textile industry getting a 25 per cent capital investment subsidy on new machine. The government is now working towards modernising machines and adding state-of-the-art facilities, as per Gupta. She also said that subsidies are beneficial for the industry and it needs to utilise schemes introduced by the government.
Source: Fibre2Fashion
In a significant relief for exporters who have been facing difficulties under the new tax regime, the Finance Ministry has now relaxed rules for Goods and Services Tax and has said that exports can continue under existing bonds and letters of undertaking till July 31. Exporters can now submit bonds or LUTs in the revised format for GST by the end of the month. “Various communications have been received from the field formations and exporters that difficulties are being faced in complying with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds or LUT,” said the Central Board of Excise and Customs (CBEC) in a recent circular. Under rule 96A of Central GST, exporters have to furnish a bond or LUT in Form GST RFD-11 instead of payment of integrated GST to release their consignments. The CBEC has clarified that exporters can submit a running bond instead of a consignment-wise bond, which would cover the amount of tax involved in the export as estimated by the exporter. Further, the bank guarantee should not exceed 15 per cent of the bond amount and jurisdictional Commissioner can make a relaxation based on the track record of the exporter.
12-month validity
The CBEC has also said that the LUT will be valid for a period of 12 months. The CBEC has notified persons who are eligible to submit an LUT instead of a bond. These are status holders under the Foreign Trade Policy 2015-2020 or those who have received foreign inward remittances of over ₹1 crore in the preceding year. Urging Central tax officers to help exporters, the CBEC further said that exporters can submit the bond or LUT to the jurisdictional Deputy or Assistant Commissioner having jurisdiction over the principal place of business of the exporter. “The exporter is at liberty to furnish the bond or LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented,” it has said. The existing practice of sealing containers with a bottle seal will also continue till September 1, it said. “These clarifications bring much needed relief for the exporters with regard to export without payment of IGST… Now, the assessees can continue exports without payment of IGST under the relaxed procedure,” said PwC in a note. The relaxations by the CBEC come after reports that exports were stuck at the factory gate due to a lack of procedural clarity on submitting the bond or LUT. The other option of payment of IGST (which is levied on exports and is refundable later) would have created cash flow problems. While the Commerce Ministry and CBEC were trying to ensure a smooth roll out for exporters, there were worries that the lack of clarity could also impact exports in the coming month.
Source Business Line
The Central Board of Excise and Customs (CBEC) takes certain initiatives for Ease of Doing Business under the GST regime; Finance Minister Shri Arun Jaitley launches a Mobile App “GST Rates Finder” to help users to find rates of GST for various goods and services. The Union Finance Minister Shri Arun Jaitley launched a mobile app “GST Rates Finder” in his chamber in the national capital yesterday which is now available on android platform and will soon be available on iOS platform as well. This Mobile app helps users to find rates of GST for various goods and services. It can be downloaded on any smart phone and can work in offline mode, once downloaded. The user can determine the GST rate for a good or a service by entering the name or Chapter heading of the commodity or service. The search result will list all the Goods and Services containing the name which was typed in the Search Box. The user can scroll down the list of description and when any specific item on the list is clicked, the display window will pop-up, containing details such as GST rate, description of goods or services and the Chapter heading of the Harmonised System of Nomenclature (HSN). For example, any person who has been billed by a hotel or a restaurant or for footwear can cross verify the correctness of the rate of GST charged. CBEC has also provided a GST rate finder on its portal cbec-gst.gov.in to help the taxpayers know the applicable GST rate on their supplies of goods and services. A taxpayer can search for applicable CGST, SGST, UTGST rate and Compensation Cess on a supply. The search can be made based on description of goods or services or HSN Chapter or section or heading number. These initiatives are aimed to serve as a ready reckoner on GST rates. This will empower not only the taxpayers, but every citizen of the nation, to ascertain the correct GST rate on goods and services.
Source: PIB
Surat: 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 on Saturday. Union minister Mansukh Mandaviya on Friday met Surat textile traders, who have been agitating against the imposition of 5 per cent GST or Goods and Services Tax on the industry for over the past few weeks. As the Centre reached out to the protesters though Mandaviya, their meeting with BJP president Amit Shah, who was in the district on Friday, was called off. Mandaviya, MoS for Road Transport & Highways, Shipping and Chemicals & Fertilisers, assured the traders that their demands would be looked into and also forwarded to the GST Council. Textile business in Surat has been affected since June 15 and shops have remained closed for all days but one since June 24. There are over 70,000 textile traders in the city. Due to the ongoing strike, the industry has suffered loss of thousands of crores of rupees and the protests have also started to affected the related businesses. On Thursday, Mandaviya had attended a meeting with chartered accountants in Surat, and explained them the GST structure. He had also told them to talk to textile traders, so that they can get their firms registered under GST. On Friday, the minister met GST Sangharsh Samiti leaders Tarachand Kasat, Champalal Bothra, Manoj Agrawal, Dhanpat Jain, Dinesh Trivedi and Muralilal Surekha at the Circuit House here. The Samiti has been spearheading the protest by the textile traders, Along with Mandavia, BJP MP Nanu Vanani and Central Excise commissioner K S Mishra attended the meeting. In the meeting, the textile traders explained to the minister the entire process of the cloth-making starting from the yarn. The meeting continued for around three hours. After listening to their issues, Mandaviya assured them to put their issues to GST council so that an amicable solution could be found. Later, speaking with The Indian Express, GST Sangharsh Samithi president Tarachand Kasat said, “We have put two demands before him — the first is that till now trading was not coming under the tax segment, so it should be kept as it is and we have told to increase the GST slab on the yarn and keep entire lower chain free. Our second demand is that the government give us two-years before we start paying GST. ” He further added, “Mandaviya assured that the issues will be put before the GST Council. He also told us that, if needed, he will call a delegation of Surat textile traders to Delhi and make representations. He also told us that to end the strike and start doing business. We told him that, the agitating traders will not be convinced till they get positive results.”
Source: The Indian Express
The President of India has promulgated today two ordinances, namely, the Central Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 extending the domain of Central GST Act and the Integrated GST Act to the State of Jammu and Kashmir, with effect from 8th July, 2017. With this, the State of Jammu and Kashmir has become part of the GST regime, making GST truly a “one nation, one tax” regime. Earlier, the Goods and Services Tax was launched in the country from the midnight of 1st July, 2017. However, because of the special provisions applicable to the State of Jammu and Kashmir extra steps had to be taken before the State could join the GST fold. On 6th July 2017, the State of Jammu and Kashmir had taken the first step towards adopting the GST regime with the President of India giving assent to the Constitution (Application to Jammu and Kashmir) Amendment Order, 2017. Resultantly, the One Hundred and First Amendment Act, 2016 to the Constitution of India that paved the way for introduction of GST in the country, became applicable to the State of Jammu and Kashmir also. Following this, on 7th July, 2017, the Jammu and Kashmir Goods and Services Tax Bill, 2017 was passed by the State Legislature, empowering the State to levy State GST on intra-state supplies with effect from 8th July, 2017. Concomitantly, the President of India has promulgated two ordinances, namely, the Central Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 and the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Ordinance, 2017 extending the domain of Central GST Act and the Integrated GST Act to the State of Jammu and Kashmir, with effect from 8th July, 2017.
Source: PIB
Industry is estimated to contribute $280 billion to India’s gross domestic product by 2026 as a positive fall-out of the Goods and Services Tax, says a report titled ‘Emerging Mantras for Bankers-Borrowers’. A joint report, prepared by industry chamber Assocham-Ashvin Parekh Advisory Services cites that GST will benefit micro, small and medium enterprises (MSMEs) by bringing in many positives, such as easy process of availing input credit, elimination of cascading tax system and less logistical overheads. According to the chamber, GST would boost economic growth but the extent of such an impact will depend on a favourable consensus on tax rates for all business segments and integrated implementation of the same. However, the report said GST would also cause short-term hiccups, such as increase in the cost of products, realignment of purchase and supply chain and high compliance burden to MSMEs. Industries in MSME sector such as online retail, logistics, manufacturing and textiles would have a larger impact, the report said.
Competition
Eventually, GST will turn Indian MSMEs more competitive with foreign competition coming from cheap cost centres such as China, the Philippines and Bangladesh, the report added. The Insolvency and Bankruptcy Code would be a boon to MSMEs who have limited power to endure the distress in addition to ensuring transparency through court administered process, the report noted. This new code will also enable more lenders with softer terms to enter the market and so MSMEs will get a better flow of funding to their business, the report added.
Source: Business Line
Though individuals like Amritsar MP Gurjeet Singh Aujla and Amritsar (North) MLA Sunil Dutti, both from the Congress, have extended personal support to the textile traders, the party has kept a distance from the protest so far. Congress is shying away fromjoining the GST protests launched by the traders. Even as textile traders over all India continue to stage protests against the imposition of GST, the Punjab Congress and the state government has been shying away from joining the cause of the traders who have been protesting in Ludhiana and Amritsar for the last two weeks. Though individuals like Amritsar MP Gurjeet Singh Aujla and Amritsar (North) MLA Sunil Dutti, both from the Congress, have extended personal support to the textile traders, the party has kept a distance from the protest so far. Rakesh Khanna, who is leading the protest in Ludhiana said, “We have been protesting for the last two weeks. No Congress leader has come to us. We have met the state Finance Minister Manpreet Singh Badal recently. He only gave us assurance to raise the demand to free textile trade from GST in next meeting of GST council. It is not enough. We need immediate relief.” MP Gurjeet Singh Aujla said, “I personally support the demands of traders. I have decided to raise this issue in the coming session of Parliament. There should be no tax on textile industry as several illiterate people are dependent on this profession to earn their daily bread and it would not be possible for them to follow complicated instructions under GST. At least, they should had been given some time to them to adopt these changes.” GST Will Help Businesses: PM Modi at BRICS Leaders Informal Meet He, however, didn’t decline that Congress party hasn’t reacted to the situation yet. “I have been raising this issue on my own. As far as party is concerned, only Pradesh Congress Committee president Sunil Jakhar can talk about it,” he said. MLA Sunil Dutti said, “I have a assured them I will do everything possible to support their cause.”
Source: The Indian Express
The June quarter earnings season is unlikely to be exciting, with earnings for several companies hurt ahead of the roll-out of the goods and services tax (GST) on July 1. In particular, key sectors such as FMCG, automobiles and pharmaceuticals were adversely impacted, especially in June, as they de-stocked and offloaded inventory at discounts. “We expect the net income of the BSE-30 Index to be flat year-on-year,” analysts at Kotak Institutional Equites wrote. If that isn’t bad enough, they expect the net income for their universe of stocks to fall eight per cent year-on-year. Analysts at ratings agency pointed out revenue growth would be limited for consumption-driven sectors such as automobiles, airlines, FMCG and retail, though there could be some improvement after consecutive quarters of tepid growth post-demonetisation. “Panic among sellers and distributors due to the GST rollout from Q2FY18 is expected to limit revenue growth,” they noted. Analysts at Edelweiss forecast very slow revenue and profit increases for consumer goods, at just around 2-2.2 per cent y-o-y. The telecom sector is expected to fare poorly with revenues falling by about 10-15 per cent owing to the tariff war following the entry of Reliance Jio. “The lower tariffs offered by Reliance Jio have driven the incumbents to come out with offers to retain customers with high data usage and this will put more pressure on data tariffs and realisations,” analysts opined. The quarter has been a somewhat subdued one for metals producers too with prices coming down in June. “All the players are expected to see a moderation in Ebitda, both sequentially and year-on-year. Demand continues to remain lacklustre for non-alloys with a growth of 3-5.5 per cent in April-May,” analysts at I-Sec wrote. Downstream energy companies are not expected to do too well since refining margins could be lower. Moreover, they could suffer adventitious losses due to the recent correction in crude oil prices. While private sector banks could report fairly good numbers, loan growth for the banking sector is expected to be muted. However, with deposit costs remaining low, or even falling, margins should be stable. Credit costs could remain high, analysts believe. With close to 500 companies reporting losses, the highest number in at least five quarters, the March quarter earnings season was a big disappointment. Save for a clutch of metals producers, which swung from loss to profit, most companies struggled to grow their top lines in a weak economy. In an environment in which raw material prices rose, albeit moderately, cash flows were crimped. For a sample of 1,893 companies (excluding banks, financials, OMCs, metal producers and Reliance Industries), net profits fell nearly 15 per cent y-o-y in the three months to March with revenues rising at sub-5 per cent y-o-y.
Source: Financial Express
Textile traders chant slogans during a protest against GST in Surat on July 6, 2017. Textile traders in Ahmedabad will go on an indefinite strike from Monday to mount pressure on the government to roll back 5% GST on cloth. The decision was taken on Sunday during a meeting of traders associated with three major textile markets in the city, including Maskati Cloth Market Association, New Cloth Market and Panchkuva Cloth Market, a release by these associations said. “5% GST on cloth is not acceptable to anyone who is in the textile business. To raise our voice against this tax, all the textile markets in the city will go on indefinite strike from tomorrow, as traders will refrain from any kind of transaction,” the joint statement said. Textile traders in Surat are already on an indefinite strike for last one week. On Saturday, thousands of traders took part in a massive rally to protest against the 5% GST rate. Union minister Parshottam Rupala on Sunday asked traders to engage in talks with the Centre to resolve the issue instead of staging protests. “The intention behind rolling out GST was to give a boost to trade and business, not to harass people. I agree that traders are agitating because they are facing some problems due to this new tax structure. But, the issue can be resolved with dialogue with the government,” Rupala told reporters. Meanwhile, people associated with the Kite Manufacturers Association registered their protest against 5% GST on the kite making industry in a unique way by organising kite flying festival on Sabarmati Riverfront. “We have organised this kite flying festival to register our protest against 5% GST imposed on us. Earlier, there was no tax on kite making. Most people who make kites are illiterate and do not understand anything about tax structure. We want the government to revoke GST, otherwise, we will have to shut our business,” said a kite maker, Nasruddin.
Source: Hindustan Times
More than 2,000 people, including industrialists and farmers, participated in a 10-km marathon, calling it Texathon, in the city on Sunday. Express photo by Nirmal Harindran Ganesh Patil, a farmer in Buldhana, has faced two years of consecutive poor crop production. The cotton cultivator on Sunday travelled 500 km to reach Mumbai to join a novel ‘Texathon’, where 50 other farmers from Vidarbha and Marathwada had come to understand the use of agro-textiles for improved cotton yield. “Farmers never went to a school that taught farming or use of technology in improving crop yield. We can only discuss our cultivation problems with other farmers and bring out traditional solutions,” Patil said. In a day-long session at Sasmira Institute in Worli, attached with the Ministry of Textiles, farmers were taught techniques to protect crop from harsh weather conditions. A virtual reality model in a classroom set-up showed them ways to protect cotton crop from hail storm, insects, and heavy rain. Sitting on a classroom bench, Patil learnt simple innovations to set up hail net, insect net, and harvest net at low cost. “I took a loan of Rs 1 lakh and so did my wife. But with the cost of cotton dipping in the market, I have already faced a loss of Rs 1.7 lakh last year,” Patil said. Farmers like him, he says, have been troubled with poor production in last two years and falling rates of cotton. “We got a loan waiver this time by the chief minister. But how many times will that happen if our crop fails again?”
Indirect Taxes Are Considered Regressive All. On Sunday, over 2,000 people, including industrialists and farmers, participated in a 10-km marathon, calling it Texathon. Several farmers, in their dhotis, ran for 3.5 km from Indu Mills, one of the first cotton mills in the city, to Century Bazaar. In addition, Sasmira Institute and NGO Goonj collected 15 kg of old clothes for economically backward families in rural regions.“Texathon aimed to bring two energies together making this a memorable event for textile fraternity,” said Kavita Gupta, textile commissioner of India. Farmer Deepak Ware specially came from Buldhana to learn techniques of reducing cost of investment in farming. “We are hoping that through agro-textiles, we will learn how to increase crop production. Right now, my cultivation is entirely dependent on good monsoon,” said Ware, who owns a 10-acre land. According to Manish Daga, managing director of Cotton Guru, a cotton advisory company, training cotton farmers on hybrid varieties, textile industry and its demands will help in improving yield and cotton production in India. “These farmers will spread the training they receive here to other farmers in their villages. Several farmers keep switching from one crop to another once there is a crop failure. Through technological aid, we hope they can sustain cultivation of cotton,” he said. Commodity expert Suresh Kotak said it was also important to stop adulteration in cotton in global markets. “India’s cotton rates are lower than other countries due to mixing,” he said, adding that farmers must be trained to understand role of micronutrients in soil. “Magnesium levels must be checked regularly in soil and added when required. India has the capacity to export good-quality cotton if we focus on high yield,” he said.
Source: Indian Express
The last census indicated that India is set to experience a ‘demographic dividend’ by 2020, where 65% Indians will be under the age of 35, making us the youngest country in the world. Home to a large employable populace, it is an advantage, for it can fulfil the demand for skilled workers across India and globally. However, we need to leverage this demographic dividend with caution, else it can turn into demographic disadvantage, with a high number of unskilled and semi-skilled youth forming a large base of labour force with low productivity and lower wages. To put things in perspective, let us look at the recent estimates by the National Sample Survey Office. Of the 470 million people of working age, only 10% receive any kind of training or access to skilled employment opportunities. In other words, there’s a large-scale mismatch of demand and supply when it comes to skilled workforce and employment opportunities. Though initiatives by the government, under the Skill India Mission, aim to train and create an employable skilled talent pool of 500 million people by 2020, there is a long way to go. While educational institutions, skill development bodies and the government continue to provide impetus through policy framework, training and incentives, there is a huge opportunity for corporates to aid the integrated development of the nation through CSR, thereby influencing the scale, quality and sustainability of skill development programmes. As initial steps are taken by the government in promoting skill development in relation to the larger ‘Make in India’ and ‘Digital India’ vision, the role that India Inc can play to enable the same has to be discussed and planned in a coherent fashion. Enable rural livelihoods: Over 70% of India’s population stays in rural areas that have limited or no access to vocational training. We need to tap that raw talent pool—reach out, educate and empower them. This will help enable livelihoods and create work opportunities in rural areas, which, in turn, will discourage rural migration to urban areas. That said, it is essential to note that skill development doesn’t necessarily guarantee livelihood unless it is aligned with local needs, problems and challenges. Collaborate and modernise education: For any strategic long-term intervention to work, change needs to happen at the ground. Corporates can partner with educational institutes and ITIs to upgrade the education delivery mechanism with latest technology. They need to invest in research and analysis to be able to set quality standard for training courses. Corporates can help identify the skills gap in current job roles and demand forecast of required job roles, which will help build relevant training modules and syllabi, creating a requisite talent pipeline. Further, every skill-based programme should focus on training in soft skills, such as body language, work ethics, time management, team management, communication skills, etc. Scale up entrepreneurship ecosystem: While the government has launched programmes, rural youth needs help in identifying the opportunities and accessing these. Empower women workforce: A recent World Bank report noted that India would pace towards double-digit growth if women participation is encouraged. While the National Programme for Skill Development, provision and extension of maternity benefits, loan subsidies for women entrepreneurs are a few endeavours to push for women empowerment, it is crucial for corporates and allied foundations to provide opportunities to women. Considering that 49% of rural workforce is women, we should focus on their skill enhancement. Formation of women self-help groups spurs entrepreneurship and innovation among women. These women can then undergo training sessions and pick up any skill to generate income. Enable good governance: Corporates can ensure last-mile connectivity of government schemes by acting as a conduit between the stakeholders—the government, training institutes and local communities. Being the major beneficiary of the eventual skilled workforce that would be created, corporates need to guide, offer expertise and advise the government for shaping curriculum and policies aligned with market needs. This will help make the youth more employable. Skill India is an opportunity for companies to rethink CSR and their relationship with society. Businesses need to realise that rather than allocating funds through short-term interventions and ensuring financial security, they have to invest in holistic integrated development of communities. Corporates and the government must get together an equitable and tactical partnership document with near-term goals spelt out. Efforts need to be made to develop positive and constructive attitudes in the youth. Developing soft skills and technical skills will have a significant impact in improving productivity.
Source: Financial Express
India, with a tribal population of 104.28 million, doesn’t have a central agency that has managed to map the wealth of its tribal textile design and build a database that can be accessed with ease by retailers, importers and design students. “In the Northeast (home to over 200 tribes), textile design is more geometric higher up in the hills because the tribes work on simple loin looms. As one descends, a transition to throw shuttle and fly shuttle looms can be seen. Textile design goes beyond aesthetic and becomes a source of identity for them,” Mukti Gogoi, commissioner and secretary — Handloom, Textile, Sericulture Department, Government of Assam said, at the Textiles India 2017 event held earlier at the end of June. This trade fair brought 15,000 Indian textile industry representatives, 2,500 international buyers from 106 nations and hundreds of craft connoisseurs to Mahatma Mandir, a convention-cum-exhibition centre in Gandhinagar, Gujarat. With an aim to present India’s cultural wealth to the world, technology is making a positive intervention. The Bodo dress (Bodos are the single largest group in the Northeast) can be found on Google’s virtual exhibition project titled ‘We Wear Culture’. Textiles from North-Eastern India (1850-1980), mainly collected during anthropological fieldwork, are on display here. The digital collection also features the Pani Gamcha, a black cotton cloth with white stripes, used by the Meitei women in Manipur and the historic Naga warrior cloth painted with human figures. Firstpost interacted with textile revivalists, designers and retailers present in Gandhinagar to understand how protection and development of design can financially uplift the textile sector that sustains the livelihood of over 45 million and contributes approximately five percent to India's Gross Domestic Product (GDP). The Symphony of Weaves fashion show showcased seven key notes of cotton, silk, wool, embroidery, hand dyed and hand printed modern industrial and futuristic sustainable textiles Padma Bhushan Rajeev Sethi, founder of Asian Heritage Foundation, a scenographer and art curator who has been representing India internationally since the early '80s, was also at the fair. He stated that along with mapping textiles, the other technical innovation is the protection of intellectual property. He was of the view that “the GI (Geographical Indications) tag is crucial. Many designers are lifting designs. The aborigines of Australia have filed law-suites against Japanese and Canadian firms, and the Aleuts of Alaska have patented their motifs. What India needs to understand is community tribal property, as distinct from individual tribal property.” In an earlier interview with Firstpost, Union minister for Textiles Smriti Irani had said that it’s time to realise that India’s products are novel and can tickle the fancy of the foreign buyer. “Today, tourists coming from the UK and the EU want to understand the life of a weaver or an artisan, and even international tour operators want to offer that experience. We've had a meeting with the Tourism Ministry and have said that if there's any tourist circuit you want to do in conjunction with all the textile clusters, we are more than happy to do this,” she told us. Today, the US gift, novelty, and souvenir store industry includes about 23,000 stores with combined annual revenue of about $19 billion. Rajeev Sethi cites the example of a number tag on a handloom mug that is for keeps and can be cherished as a souvenir. In his opinion, mixing and matching handmade and machine-made will ‘dilute India as a destination for the supreme instrument’. The handloom, handicrafts and sericulture sector is largely unorganised and is operated on a small-scale through traditional tools and methods. “Today, Amazon runs a handloom and handicraft store on its website where big and small sellers can take their products to the world. It’s an anytime, anywhere market that lets sellers reach a wide audience. A year and a half ago, Amazon came out with the movie India Modern that captures the confidence of a new India that can stand up for its own design and marry it with what’s global,” points out Narendra Kumar, designer and creative director at Amazon, who is reaching out to NGOs and big and small manufacturers to curate a quality crafts e-bazaar. Innovation is another method of preservation. “The confidence level of weavers in innovation is quite low. I persuaded a community in Phulia, which had been weaving stoles for the Japanese market, to start creating linen saris. They kept insisting that the linen is too heavy and that it will certainly break on the loom. In such a situation, the designers have to ensure that they bear all kinds of initial losses,” said Anavila Misra, who was recently approached by the Ministry of Textiles to revive the Garhwal textile cluster. Her linen and organic saris have an austere and watered down feel to them and have been worn by Bollywood’s Konkona Sen Sharma, Deepti Naval and Vidya Balan. Misra has been working with weavers in West Bengal and khatwa (applique) craftswomen from Jharkhand since 2009. The Garhwal sari that was essentially cotton body with a silk pallu and border has in the recent times converted into all silk, because as the market forces work, silk commands a higher price. The result was a dilution of their trademark aesthetic and the sarees ended up looking like they could be from anywhere in India; a lack of an understanding of design economics could result in a slash in the price of a craft. “I revived the use of cotton and mixed linens too, and added silver into the zari,” explained Misra. Narendra Modi's formula for Indian textiles is 'farm to fibre to fabric to foreign' Designer Manish Malhotra also showed up in Gandhinagar in a crisp blue Nehru jacket. He expressed deep resentment at a certain kind of image — of people partying and drinking away — that has become synonymous with the fashion industry. “Fashion is considered a serious entity abroad and even in India, a change in perception is happening for the better.” The designer who calls himself ‘unapologetically glamorous’ brings to mind salmon pink, gold dust, emerald green and deep blue gowns whose gracefully long lines shine like gem stones under stage lights. He feels it is his contemporary twist to traditional crafts like chikankari and phulkari that has put him on the world map and it is this belief in innovation that will work wonders for Indian design. The difference between designers in the East and the West is that the latter are ready to invest a great deal of time and energy into design, because then the end product commands a high price. Yogesh Chaudhary of Jaipur Rugs, which retails its luxury hand-knotted rugs to over 40 countries, revealed that his internationally bestselling carpet is ‘Antar’, which is created by three weavers who live and work together for months and combine their weaves, ergo their values and ideas, into one single rug that costs Rs 1.50 lakh. “India needs to be ahead in design and not just in manufacturing. Five years ago, we used to write ‘Bharat mein Nirmaat’ in Hindi on our catalogue. A westerner is intrigued by a Hindi message and that is what really builds brand India,” he explained, as he stood in the centre of his stall in one of the tents in the 40,000 sq metres of air-conditioned space of the venue. There are 1,243 ITIs with clothing technology courses, 17 NIFTS, 44 powerloom service centres in India and to improve technical skills in the apparel industry, the government has established 75 apparel training and design centres. But, the apparel growth story is incomplete without ensuring that design skill is passed on from one generation to another not just in families of weavers and artisans but also in industry-friendly ways in design schools. “Retailers, exporters and design houses are the largest pool of employers of design graduates. The Apparel Export Promotion Council has trained students in lakhs and Clothing Manufacturers Association of India (CMAI) has trained about 35,000 students in the last two years,” explained Rahul Mehta President, CMAI. Going ahead, a panel discussion that featured Siddharth Bindra, managing director, BIBA and Rakesh Biyani, joint MD, Future Retail Group concluded that one of the reasons for the existence of India’s export industry is that the country has recognised as providing design and development support to buyers overseas much more than competing countries like China, Bangladesh and Vietnam. The Indian textile industry, which has a long way to go, at least for now, seems to be sync with Modi’s formula of ‘farm to fibre to fabric to fashion to foreign’. Here’s hoping that India is able to strike a chord with its own aesthetic capital as melodiously as the rhythm of that rhetoric.
Source: Firstpost
Mali, which produces eight lakh tonnes of cotton a year, is looking at direct exports of cotton to the Indian textile industry. Niankoro Yeah Samake, Mali’s Ambassador in India, told The Hindu here recently that about 20% of Mali’s cotton is consumed by India. However, most of the trade is through foreign companies. “So, there are opportunities to trade directly.” Currently, Europe and China are the biggest buyers of the West African nation’s cotton. Mali produces long staple cotton and only 5% of it is processed in that country and the rest is exported. Mali’s government is offering incentives for investments in the textile sector and there are opportunities for joint ventures too. “I am looking at taking textile and garment entrepreneurs from India to meet the Mali government representatives and bringing the CEO of the Mali cotton agency here,” the diplomat said. “We are also looking at working with the Tamil Nadu Agricultural University to improve the yield and quality of cotton. We plan to sign an agreement with the university soon,” he added.
Cotton output
Mali’s government agency buys cotton from all the farmers. Annual cotton production in Mali in the last two years increased from five lakh tonnes to eight lakh tonnes. Currently, there are no investments from the Indian textile sector in that country. “We urge Indian textile entrepreneurs to invest there as it is duty-free and quota-free trade between the two nations, and Mali and the U.S. and some European countries too,” he said. Therefore, those who start textile production in Mali will have duty-free access to the U.S. and some of the European markets too, he said. In the short-term, Mali is looking at increasing trade with India in the cotton sector and in the long term it will look at other investments. J. Thulasidharan, chairman of Indian Cotton Federation, said the price of Indian cotton goes up during the second half of the season and hence, importing cotton could be viable. On an average, about 10 lakh bales of cotton is imported from African countries annually.
Source: The Hindu
As expected, cultivation of cotton in Telangana is making a come back to its normal extent, what it used to be till the year before the last kharif, with the area of fibre crop sown covering over 63.5% of the total cropped area so far. Cotton is sown on 13.16 lakh hectares already, against only 7.23 lakh hectares in the same period last year. Interestingly, cotton accounts for nearly two-thirds of the total sown area of 20.72 lakh hectares so far this season.
Advisory goes wrong
Following an advisory from the State Government discouraging the farming community not to take up cotton cultivation during the last kharif season, the extent of the fibre crop had come down to around 14 lakh hectares last year from the normal 16 lakh to 17 lakh hectares. The government had suggested farmers not to go for cotton citing the volatile market conditions for cotton across the world. However, it was not so encouraging experience to the farmers who took to alternative crops such as redgram, soyabean, maize, chilli and others on a large scale with redgram and chilli cultivated in record extents of 2.78 lakh hectares and 1.12 lakh hectares, respectively. Their prices remained low even after the market intervention done by the government forcing the farmers to rethink on cotton.
“In addition to their experience with alternative crops, the remunerative prices of cotton prevailed during the last season are luring back the farmers. Due to dip in the area of cultivation in northern and western parts of the country last year and virus attack in Pakistan and a few other Asian countries, cotton prices ruled the markets,” a senior official of the Agriculture Department explained.
No advisory this time
After the redgram, chilli and turmeric farmers taking to streets over the steep fall in prices last year, the State Government has decided not to give any advisory this year. “We (the government) have not issued any advisory this year on cotton but are suggesting farmers only to go for profitable crops,” Minister for Agriculture Pocharam Srinivas Reddy said on the issue. Sowing of cotton is expected to continue for another couple of weeks with favourable weather conditions prevailing in most parts of the State and its extent is expected to go beyond the normal extent in spite of the problems faced in mobilising the investment for inputs, particularly cash crunch.
Source: The Hindu
BHAWANIPATNA : Cotton will be raised on 55,000 hectares (ha) of land in the current kharif season across Kalahandi, one of the major cotton growing districts in the State. With weather being conducive, sowing of cotton seeds has been completed on 45,550 ha and by next week, coverage will exceed the targeted area, said agriculture officials. Each hectare gives a yield of eight to 10 quintals. Kalahandi district contributes 40 per cent of total cotton production in the State and the crop grown here is in huge demand due to its high fibrous and organic qualities. No chemical fertiliser or pesticide is used in the cultivation unlike in other cotton-growing States. There is an increasing demand in both national and international markets for organic cotton, said District Subject Matter Specialist (Cotton) Narayan Upadhaya, adding that traders from different parts of the country procure cotton from Kalahandi. Cotton is grown primarily in Bhawanipatna, Kesinga, Golamunda, Narla, Karlamund and Lanjigarh blocks of the district as an alternative cash crop due to presence of black soil that is suitable for its cultivation. In 2015-16, there was a target to cover 50,000 ha of land under cotton cultivation and the achievement was 46,152 ha. In 2016-17 kharif season, as against target of 55,000 ha, the achievement was 53,001 ha. Upadhaya said the Agriculture department is providing technical support to farmers for growing the cash crop. However, in the absence of marketing facilities and support from Cotton Corporation of India (CCI), farmers fail to gain from the crop. Adequate number of mandis are not opened for procurement as a result of which, farmers are forced to resort to distress sale and they blame the State Government for the situation.
Source: The New Indian Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1153.32 |
USD/Ton |
0.83% |
7/9/2017 |
|
VSF |
2240.53 |
USD/Ton |
0% |
7/9/2017 |
|
ASF |
2174.42 |
USD/Ton |
0% |
7/9/2017 |
|
Polyester POY |
1187.11 |
USD/Ton |
0.31% |
7/9/2017 |
|
Nylon FDY |
2747.40 |
USD/Ton |
0% |
7/9/2017 |
|
40D Spandex |
5068.74 |
USD/Ton |
0% |
7/9/2017 |
|
Polyester DTY |
2350.72 |
USD/Ton |
0% |
7/9/2017 |
|
Nylon POY |
1550.01 |
USD/Ton |
0.48% |
7/9/2017 |
|
Acrylic Top 3D |
2894.32 |
USD/Ton |
1.03% |
7/9/2017 |
|
Polyester FDY |
5729.88 |
USD/Ton |
-0.51% |
7/9/2017 |
|
Nylon DTY |
1410.43 |
USD/Ton |
0% |
7/9/2017 |
|
Viscose Long Filament |
2541.72 |
USD/Ton |
0% |
7/9/2017 |
|
30S Spun Rayon Yarn |
2879.63 |
USD/Ton |
0% |
7/9/2017 |
|
32S Polyester Yarn |
1748.35 |
USD/Ton |
0.42% |
7/9/2017 |
|
45S T/C Yarn |
2703.33 |
USD/Ton |
0% |
7/9/2017 |
|
40S Rayon Yarn |
3055.94 |
USD/Ton |
0% |
7/9/2017 |
|
T/R Yarn 65/35 32S |
2306.64 |
USD/Ton |
0% |
7/9/2017 |
|
45S Polyester Yarn |
1851.19 |
USD/Ton |
0% |
7/9/2017 |
|
T/C Yarn 65/35 32S |
2277.26 |
USD/Ton |
0% |
7/9/2017 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
7/9/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
7/9/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
7/9/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
7/9/2017 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
7/9/2017 |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14692 USD dtd. 09/07/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
As the technical textiles market continues to grow, China is expected to remain its leader and meet most of the demand from countries in the US and Europe. That’s according to the latest research from business networking platform, BizVibe. The global technical textiles industry was estimated to be worth US$142bn in 2015 and is expected to reach US$165bn by 2019. The vast majority of technical textiles come from Asia-Pacific, which accounts for a share of almost half of the global technical textiles market. China is said to be the largest producer of both woven and nonwoven technical textiles in the region, and is currently responsible for 30% of global production.
China’s dominance
According to BizVibe, China’s technical textiles future is bright. A large workforce, strong domestic market and the advancements that it has experienced in textile technology makes the country a very strong competitor in the global industry. Despite setbacks in terms of reduced textile exports, these qualities have allowed China to continue to thrive in this area. China’s leading position is followed by the Americas with 19% of global production, India with 18%, the EU with 16%, and the rest of the world with 17%. However, most of these regions lack the same benefits China has. For example, Chinese textile factories typically have more employees and equipment than Indian ones; on average, the size of Chinese textile companies is five times larger than companies in India. Medical textiles are currently leading China’s technical textiles industry, accounting for a large portion of the country’s technical textiles exports to countries in Europe and the Americas. This is largely due to the growing need for more effective sterilisation, sanitation and protection against bacteria in healthcare settings in three regions, as well as the increasing use of medical technical textiles in biophysical monitoring systems, patient tracking devices and other innovative applications in the healthcare industry.
Change in India
BizVibe also states that India’s textile and apparel industry is subject to ongoing change, innovation and growth as new technologies, trends and practices take hold in the country. Like China, the future of India’s industry looks very promising, with healthy growth rates expected for most segments. India’s textile and apparel market was worth roughly US$108.5bn in 2015, and is expected to reach US$226bn by 2023. Its technical textiles industry is growing at a fast pace, with an expected compound annual growth rate (CAGR) of 9.6% between 2014 and 2023. In addition, India accounts for roughly 14% of the world’s production of textile yarns and fibres. It is said to be the world’s largest producer of jute, second largest producer of silk and cotton, and the third largest of cellulosic fibre. The readymade garment sector is currently the largest contributor to India’s total textile and apparel exports, accounting for roughly 41%, says BizVibe. India’s fast growth rate has been boosted by government initiatives, including its recent establishment of 75 apparel training and design centres across India to improve technical skills and offer training.
Source: Wtin.
Viet Nam’s garment and textile revenue increased for the first half of this year but experts said the growth has not yet become sustainable. The national garment and textiles export value in the first half of the year grew 11.3 per cent year-on-year to US$14.58 billion, higher than the growth rate of 6.1 per cent year-on-year in the same period of 2016. Le Tien Truong, deputy general director of the Viet Nam Garment and Textile Group (Vinatex), said the results by the garment sector were a praiseworthy effort in the context of the unstable global economy. The demand for textile products from key importers like the United States (US), the European Union (EU) and Japan tapered off in the first six months of the year. However, exports to those markets experienced robust achievements, Truong said. He said that the country earned $6 billion from the exports to the US, surging nearly 9 per cent; $2.3 billion to the EU, up 8 per cent; and $1.5 billion to Japan, up 12 per cent. Viet Nam outstripped its competitors in garment exports during the period. According to the Trade Map, China experienced a decline of more than 5 per cent year-on-year, while Bangladesh saw a drop of 3.5 per cent, and Indonesia was down 5 per cent. However, the trade protectionism policy of US President Donald Trump’s administration and interest rate adjustment from the US Federal Reserve will threaten sustainable export growth. There is a high possibility that Viet Nam’s competitors will further devalue domestic currencies to support exports as they did in 2016, Truong said. As the biggest hurdle for Vietnamese garments is foreign competitors, especially China with large scale production and low costs, Vietnamese enterprises need to join the global supply chain with fastidious requirements of quality, prices and time of good delivery. Local enterprises’ poor orientations have made them fail to meet the industry’s long-term development. In addition, unsound competition between domestic and foreign invested businesses has been on the cards. Moreover, the auxiliary industry for the textile and garment sector has not yet developed. Low capacity in the stages of weaving and dyeing have led to the local demand for textile fabric being unsatisfied. The domestic garment industry must import 70 per cent of fabric, causing unbalanced development. Meanwhile, Vietnamese garment enterprises are mostly small- and medium-sized ones with limited ability in accessing domestic and foreign markets. If they do not link with some large enterprises, these firms will find it difficult to survive and never have the ability to compete internationally. Local garment enterprises have also faced many challenges, including the shortage of high-quality human resources, limitations in product development, capital access, marketing and foreign languages, and high input costs. The garment sector recommended to the relevant authorities that they support training programmes in original design manufacturer (ODM) business and information and technology while creating favourable conditions for enterprises to have access to soft loans and preventing smuggled goods.
Source: VietNamNet.
Garment exports totalled more than US$380 million until June this fiscal year, a US$100 million increase from last year, reported the Ministry of Commerce. The figure was more than US$278 million last year. Around 33 per cent of the exports went to Japan during the last financial year, 25 per cent to Germany, 25 per cent to South Korea, 2.4 per cent to the US and 2.4 per cent to China. This year, new exports to the EU account for the increase. Although the US has granted a generalised scheme of preferences to Myanmar, it does not effect clothing exports. The Myanmar Garment Association said it was negotiating most favoured nation (MFN) status and tax relaxation. "We called on the government to try to secure MFN status for the clothing sector. We want tax to be below 5 per cent,” said Myint Soe, chairman of the association. The US reportedly collects 10-12 per cent tax on cotton and 37 per cent on nylon.
Source: Eleven Myanmar
About 2,000 Kenyan youth are set to be trained and be employed in the textile industry following the signing of a grant between the US government and a Kenyan firm. In the deal signed on Friday between the USAid East Africa Trade and Investment Hub (the Hub) and Generation Program Kenya Limited, a local subsidiary of the McKinsey Social Initiative, the programme seeks to recruit, train and employ 2,000 Kenyan youth in the apparel industry. In a press release sent to newsrooms, USAid Kenya and East Africa Acting Mission Director Tina Dooley-Jones said through the initiative to be piloted in collaboration with Ministry of Industry, the Kenya Association of Manufacturers and apparel companies, seven fully equipped training centres will be put up in the country. About 4,000 youth will be screened for participation after which 2,000 of them will be trained and employed to help address the skills gap that currently hinders growth in the sector. “In addition, the goal of the pilot is to create a sustainable and replicable model for apparel sector skills development throughout East Africa. “USAid is pleased to support this pilot initiative. Not only does this private sector approach directly link trained at-risk youth to jobs, the leadership from Kenya’s Ministry of Industry, Trade and Cooperatives makes the model sustainable,” Ms Tina Dooley-Jones. The official noted that the signing of the grant is also the official kick-off of the Hub’s “East Africa Cotton, Textile and Apparel Workforce Development Initiative,” a collaborative effort with the private sector based on a partnership agreement with the American Apparel and Footwear Association. East Africa is establishing itself as a key-sourcing destination for buyers of global apparel, footwear and travel goods. Recently renewed to 2025, the African Growth and Opportunity Act (AGOA) is a major incentive which provides up to 35 percent in duty savings for eligible countries exporting to the U.S. The Hub’s new initiative will further cement partnerships between U.S. and East African business under the Act. Launched in 2015 with funding from the USAID’s Mission in Kenya, Generation Kenya has so far successfully graduated 4,400 trainees from among disadvantaged youth, placing them in the fast moving consumer goods distribution, retail, financial services and hospitality industries.
Source: Business daily
The government aims to increase the price of the long staple cotton to more than 3000 Egyptian pounds ($168.07) per qintar, which will all be exported, the spokesman said. — Egypt aims to double production of its most famous export, the silky soft cotton once known as "white gold", after a period of slumping output, an Agriculture Ministry spokesman said on Saturday. Hamed Abdel-Dayem told Reuters production should rise to 1.4 million qintar (160 kg) in the 2017-18 fiscal year that started in July from 700,000 qintar a year earlier. All the cotton will be exported. Production of the cotton, used in luxury bedding, has fallen sharply since 2011, a year of political upheaval that coincided with looser regulations that degraded the quality of local cotton. Egypt's sunny skies and superior seed help it grow a cotton known for unusually long fibers that produce a light durable fabric with an attractive sheen and soft touch. Long-staple sells at 155 US cents per lb, about twice the price of common short-staple cotton. Its return to world markets could provide a lucrative export opportunity at a time when Egypt has a huge trade deficit and is seeking to relaunch its stagnant economy. In 2016 Egypt banned all but the highest quality cotton seed, dramatically shrinking the area under cultivation but restoring quality, in a bid to save its historic crop. This year Egypt grew about 220,000 acres (89,000 hectares) of long-staple cotton compared with 130,000 acres (52,600 hectares) in 2016-2107, Abdel-Dayem said. Farmers, spinners, and exporters say the weakness of the Egyptian pound following its flotation in November and a scandal over the alleged sale of falsely labeled Egyptian cotton have increased demand for the real thing, injecting life into a historic industry on its deathbed. FAS/Cairo forecasts MY2016/17 cotton area harvested to increase by 20 percent or 20,000 ha to 120,000 ha. Total area harvested in MY2015/16 is estimated at 100,000 ha. Post attributes the increase in area to farmers’ willingness to grow more cotton with expectations that the government’s cash subsidies will continue for the MY2016/17 crop. In addition, the government’s takeover of the distribution of cotton seeds addresses farmers’ concerns on seed quality, which was deteriorating under private operators. Although the Ministry of Agriculture and Land Reclamation (MALR) did not announce the targeted area for the MY2016/17 crop, announcements made by some local agricultural officials in some governorates support FAS Cairo’s forecast for area harvested in 2016/17. Local agricultural officials in Sohag governorate, southern Egypt, announced that their targeted area for MY2016/17 crop is 840 ha compared to 281 ha in MY2015/16. In Kafr El-Sheikh governorate, located in the Delta region north of Cairo, local agricultural officials announced that their target area for the 2016/17 crop is 35,700 ha compared to 32,000 ha in 2015/16. In spite of forecast increases, Egyptian cotton production is still trending downward. Cotton area in MY2016/17 is projected to be 24 percent lower than total cotton area harvested in 2014/15 which was at 157,000 ha. Farmers who shifted to other crops like sugar beet are still hesitant to grow cotton again due to the marketing challenges facing the crop as well as the floundering and ever changing government’s policies. After backtracking on its previous policy, the government is once again providing cash subsidies for the MY2015/16 crop, a positive signal to producers that will encourage them to increase planted area in MY2016/17. In October 2015, the newly appointed government backtracked on its policy of ending cash subsidies; therefore allocating LE 261.7 million ($29.6 million) to purchase the MY2015/16 crop following pressures from farmers and traders (Cotton GAIN Voluntary Report November 2015.) This came only ten months after the cash subsidy policy was removed by the former government which was headed by then Prime Minister, Dr. Ibrahim Mehleb, and farmers were asked to have sales contracts in place before planting Cotton GAIN Annual April 2015. Another reversal and conflicting policy came after the Ministry of Agriculture and Land Reclamation’s Central Administration for Plant Quarantine (CAPQ) issued a directive stating on July 4, 2015, that it stopped issuing import permits for cotton of all origins. The decision was a clear attempt by the government to force manufacturers to use locally produced cotton. The notion was reinforced when former MALR Minister, Dr. Salah Helal, publicly stated that the measure was intended, in part, to facilitate marketing of the 2015 cotton crop. Farmers welcomed the decision and considered it as encouraging step for them to increase the area planted with cotton in the next season. However, on July 15, 2015, and under pressure from manufacturers and importers, Egypt’s former Prime Minister, Dr. Ibrahim Mehleb, made an announcement rescinding the measure taken by CAPQ and cotton imports were allowed again GAIN Voluntary Report August 2015. In early 2016, former Minister of Investment, Dr. Ashraf Salman, stated that the Egyptian government understood the needs of the spinning and textile industry; therefore, the government will allow the expansion of area planted with short and medium staple varieties, however, there is no clear indication when or if this will happen. Expanding the area planted with short and medium staple cotton and reducing the area planted with extra-long staple cotton is a demand that the spinning and textile industry has made for years. The industry relies on short and medium staple cotton to produce the type of yarn required for producing some of the more popular fabrics. Post believes if the government allows the expansion in planting medium and short staple cotton, farmers will be more encouraged to grow cotton. — SG/Agencies
Source: Saudi Gazette
We knew Oklahoma's 2017 cotton crop would be larger than the previous one, but the U.S. Department of Agriculture's estimate says it will have at least 55 percent more acreage. The USDA's National Agricultural Statistics Service in its 2017 planted acreage report estimates 470,000 planted acres. Total upland cotton acres in the United States is estimated to be just under 12 million, up about 20 percent over 2016. It is estimated that, with a good growing season, the number of bales produced will set a new record, the survey stated. Reporting in his most recent Cotton Comments statement, found on the internet at NTOKCotton.org, Randy Boman, Oklahoma State University cotton project leader, said, "It has been a fairly challenging start for many producers, but we believe the overall crop is in good condition. We now have cotton growing in several different stages of growth. "Producers with earlier-planted cotton have been or will soon be cranking up irrigation systems. The Lugert-Altus Irrigation District released water last week, but the weekend's excellent rainfall resulted in a stand-down for a few days. In many dryland fields, the recent rainfall has been beneficial to fill in stands after high winds dried out soil behind the planters. Some areas without a rain after planting are struggling to get good stands. Producers are continuing weed control operations, shaping beds for furrow irrigation, and early season insect management." Boman said there are several new wrinkles with the new cotton crop. "We have producers who are planting cotton for the first time," he said. "Some are planting a crop after several years of not being involved with the crop. Boll weevil eradication across most of the U.S. cotton belt has been very successful. It is a major contributing factor to the continued profitability of cotton production. It has been a long and challenging task to get rid of the insect. We all need to do our part in keeping this pest out of our area. Some new producers may be unaware of this ongoing program. It is important for farmers to contact the Oklahoma Boll Weevil Organization to make sure new fields are properly identified and trapped."
Source: The Lawton Constitution
Cotton boll production is estimated to increase by more than 12% to reach 180,000 tons in the current Iranian year (March 2017-18), up from last year’s 160,000 tons, the executive of the Cotton Project carried out by the Ministry of Agriculture said. “We expect to produce around 60,000 tons of cotton fibers from this amount,” Ebrahim Hezarjaribi was also quoted by Mehr News Agency as saying. According to Managing Director of Iran Cotton Fund Mohammad Hossein Kaviani, last year’s domestic cotton production stood at approximately 40,000 tons. “Our textile industries’ demand stands at between 90,000 and 100,000 tons per year, and as such, domestic production is not sufficient to meet the need. We have to import at least 50,000 tons annually,” he said. More than 4,000 tons of uncarded and uncombed cotton worth 270 billion rials (over $7.2 million) were imported during the first month of the current Iranian year (March 21-April 20), according to latest figures released by the Islamic Republic of Iran Customs Administration. This amount of cotton was imported from the UAE, Turkey, Uzbekistan and Tajikistan, Mizan Online News Agency reported. “Around 130 hectares of farms will, for the first time, go under the cultivation of cotton seedlings in Iran in the current Iranian year. Some 100 hectares of these farms are located in the northern Golestan Province,” Deputy Agriculture Minister Abbas Keshavarz said. “This method [in which seedlings are planted rather than seeds] helps save water consumption in cotton farms by 40% and reduces the need for seeds to one-sixth. Also, plants can be harvested earlier this way,” he added.
Source: Financial Tribune
Agriculture Minister Matia Chowdhury yesterday told parliament that Bangladesh has taken an initiative to cultivate Genetically Modified Organism (GMO) cotton or BT cotton to boost cotton production. She also said the government has provided training to 60,000 farmers on modern cotton cultivation and set up 3,050 demonstration plots under a project for increasing its production. In another reply, the minister said 347.10 lakh metric tonnes of rice were produced in the country in 2015-16 fiscal, enough to meet the country's hundred-percent demand of rice.
Source: The Daily Star
The Asean Macroeconomic Research Office has released a report advising the government and main garment association on how to improve the economic outlook of the country’s largest industry. Following an annual visit to Cambodia from June 21 to 28, AMRO released a report on July 3 outlining what it thinks must be done to ensure further growth in the country’s garment sector. “Improving public sector capacities and rebalancing budget allocations toward more capital investments are crucial to enhance growth prospects,” the report said. “In the face of rising labour costs and relatively large infrastructure gaps, fiscal policy needs to be more supportive of much-needed infrastructure investment and structural reforms to enhance productivity and support growth.” The report also said that enhancing labour quality, improving trade facilitation and reducing logistics and electricity costs are keys to ensure the industry’s sustainability as it continues to show signs of diversification. Kaing Monina, deputy secretary general with the Garment Manufacturers Association of Cambodia, said he agreed with the points made in the AMRO report. Mr Monina said labour costs are of vital importance to GMAC, as they already hover at about $200 per month for the average garment worker. With a $153 minimum wage and mandatory allowance of $17 or more, the minimum salary is $170 already, he said. Adding up all incentives, bonuses and overtime work, workers are making about $200 or more. “The public looking from outside say our wages are still low compared to other countries, but it's not true,” he said. “If we take into account the level of productivity and the less number of working days in Cambodia, our wages are about the same.” On logistics, Mr Monina said trucking costs are quite reasonable, but documentation charges and other service charges are very high. Long and complicated processes in some ministries also translate into financial losses for companies, he said. The garment industry is one of the main pillars out of four to back the country’s economic growth. The export of the sector accounts for more than 70 per cent of country’s total exports. AMRO has projected Cambodia’s economy to grow strongly at 6.9 percent in 2017 with inflation reaching about 4 percent.
Source: Khmer Times
Shandong Ruyi technology group, a Chinese multinational company, will invest $600 million in Kano textile industry, Isyaku Umar Tofa, chairman of the state investment promotion agency, has said. Tofa said this at the presentation of certificates of occupancy to Black Rhino/Dangote group and St. Meer international investment and Management Company by Abdullahi Ganduje, governor of Kano state. While Black Rhino/Dangote is expected to construct a 100-megawatt solar power plant at the cost of $150 million, St. Meer will do same for $120 million. The chairman said talks between the investment promotion agency and the Chinese company had reached an advanced stage. and it is expected that a memorandum of understanding (MoU) would be signed in a few months. He added that a memorandum of understanding (MoU) would be signed in a few months. “We are about concluding talks with them and they were encouraged by the commitment of the Ganduje administration to provide tax incentives as well as free land for their huge investment,” Tofa said. On his part, Ganduje explained that the state gave free portions of land to Black Rhino/Dangote group and St. Meer in order to attract foreign direct investment. He expressed optimism that the two companies would help in addressing the state’s energy deficiency. “It is in our interest to encourage investment in areas which have potential multiplier effects on the growth of the economy, including employment generation,” the governor said. “We are willing to remove any stumbling blocks towards the success of your investments because of benefits that will come to our state.”
Source: The Cable
