INTERNATIONAL
With the duty drawback benefit due to end by September 30th for the textile sector comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) in the country, industry associations have reached out to the centre demanding an extension of the period post implementation of the Goods and Services Tax (GST) in the country. The Southern India Mills Association (SIMA) in a press statement informed that the government is yet to take a final call.
SIMA Chairman P. Natraj said that the government is yet to give a mandate to the duty drawback committee to recommend the revised duty drawback rates. He further informed that with the confusions surrounding the sector, the units are hesitating to take the export bookings at current rates.This hesitation is primarily because in case a unit takes an order at the present rate, by the time it is ready for delivery, there could be newer rates in place, therefore the traders as well as the units are in a fix situation.
Natraj asserted that the government must consider extending all the export benefits for the sector till the industry stands on its feet and returns to the phase of normalcy. The Association also demanded a reduction on the tax rate on man-made fibres from a high 18 per cent to 12 per cent.
SOURCE: The KNN India
The demand for yarn in all the major markets especially Bhiwandi, Ichalkaranji and Kolkata have picked up due to Diwali demand for fabric and one hopes that the market might become normal within a fortnight, said Mr. P. Nataraj, Chairman, Southern India Mills’ Association (SIMA) and Managing Director, KPR Group..
Addressing the press and media, Mr. Nataraj said that the unsold yarn stock lying with the spinning mills were also low. SIMA Chairman stated that the the overall business performance of textiles and clothing industry, being predominantly decentralised and fragmented in nature, was significantly affected due to the levy of GST on fabric that had all along been exempted from VAT while the entire value chain was under optional route. The decentralized weaving sector strongly believed that the fabric might be exempted from GST and therefore, suspended the purchases, demanded tax exemption and managing the business with the stock in hand.In the meanwhile, the entire textile value chain pipe line has become empty. Since, no changes were made in the GST rates applicable to textiles at the 21st GST Council meeting held on 9th September, the rate of GST registration has now accelerated and demand for yarn is picking up, he informed.
Mr. Nataraj pointed out that the global cotton position would be very comfortable during the year 2017-18 due to an increase in area under cotton cultivation by around 11% and India is likely to get a record crop with 15% increase in area and favourable monsoon and weather. He said that the cotton price would also be comparatively lower throughout the cotton season and therefore, the domestic demand would pick up. India would have competitive advantage in the international market also with stable and lower cotton price. SIMA Chairman, however cautioned that there were few major problems and ill-effects due to certain GST anomalies that need to be addressed on a war footing to bring all the stakeholders of the textile industry under GST net, enable the Indian textiles and clothing products remain globally competitive.
He stated that the Indian textiles and clothing industry had been passing through continuous recession during the last three years mainly due to poor off-take in the global market, the FTA/PTA competitive advantage gained by the competing nations like Vietnam, Bangladesh, high tariff rates imposed on Indian textiles and clothing products in the major textile makers such as EU, US, Canada, China, etc.
The total textiles and clothing exports had stagnated at around US$ 40 billion during the last three years, he pointed out. SIMA Chief has appealed to the centre to refund the accumulated input tax credit at fabric stage that had been singled out to avoid cost escalation, encourage make in India, reduce import of fabrics, avoid job losses especially in the highly vulnerable sectors like power loom, hand loom, processing, etc. He stated that for processed cotton fabrics, the accumulation of input tax credit would range between 3 to 5 per cent of the sale value. He said that the dyes and chemicals account over 30 percent of the processing charge that attract 18% GST while the fabric or job work is levied with 5% GST.
Yet another genuine demand of the synthetic sector is the reduction of GST rate on MMF spun yarn including sewing thread filament yarns from 18% to 12%. The power loom sector and independent weaving units that produce over 95% of the woven fabric is burdened with 18% GST on yarn while the vertically integrated units do not have such a problem as they need to pay 18% GST for fibres and only 5% GST on fabrics and the cost difference works out to 5 to 7 percent. SIMA Cheif urges for resovling GST issues Mr Nataraj appealed to the GST Council to sort out both the anomalies of refunding the accumulated ITC at any stage of manufacturing especially processed fabrics and also reduce the GST on MMF spun yarn including filament sewing threads from 18% to 12%.
SIMA Chairman stated the Government had not yet given the mandate to the Duty Drawback Committee to recommend the revised duty drawback rates and ROSL. The Government had extended the benefits only upto 30th September 2017. As there is uncertainty in the rates of benefits, the export booking is getting delayed. Mr. Nataraj appealed to the Centre to extend all the export benefits till the business revives and revise the rates to ensure the pre-GST export competitiveness of the industry is sustained. He also appealed the Centre to expedite clearing all the pending export benefits that cause severe financial stress to the exporters. Mr Nataraj stated that there were several teething problems in the GSTN causing hardships for filing the returns and day to day operations. There is undue delay in getting several clarifications including the use of C forms for inter-state purchase of HSD oil under 2% CST that has been kept out of GST, issues relating to canteen and transport services provided by the manufacturing units to their employees through contractors or at concessional rate, etc.
SIMA Chairman felt that the local tax authorities should be facilitated to clarify the industry then and there and also to overcome the teething problems. Now, they are only forwarding the issues and clarification to the concerned GST Council Committees and not able to provide instant services.
SOURCE: The Tecoya Trend
Prices of textile products might reduce gradually as the manufacturers can take input credit, following implementation of Goods and Services Tax. However, this will take time, P. Nataraj, the newly-elected chairman of Southern India Mills’ Association, told presspersons here on Thursday.
With demonetisation and implementation of GST, the textile industry faced difficult situations during the last 10 months. Due to confusions related to GST, the prices have not reduced immediately. Many units that were in the unorganised sector are registering under GST and can sell only through bills. These could lead to higher prices in the short term. However, the prices might come down over a period of time, he said.
Reports
Textile mills have at least minimum cotton stock. With reports of higher cotton production next season that starts in October, cotton prices have come down. Prices of yarn have also dropped. Hosiery yarn prices reduced by Rs. 17 a kg in the last two months. The mills and even weaving units have stocks with them and these are expected to have an impact on the financial position of the textile units. However, there is a revival in demand now for the festival season.
The entire cotton textile value chain has a seamless GST slab of 5 %. But, there are a few issues that need to be addressed. The rate for man-made fibre yarn should be reduced to 12 % from the existing 18 % and the rate for dyes and chemicals used in processing should also be brought down, he said.
Import duty
The Centre should also increase the import duty on fabrics. Before GST, it was 22 % for cotton fabrics and nearly 29 % for synthetic fabric. Following GST, the import duty has come down to 15 %. Currently, only speciality fabrics are imported. Lower import duty can lead to higher import of fabrics, he said.
SOURCE: The Hindu
The Odisha state government has decided to seek support from the World Bank (WB) to develop its textile, handloom and handicrafts sector. A meeting of senior officials from both sides was held recently in Bhubaneswar to finalize a project to raise the income of the artisans and weavers by increasing domestic sale and exports and standardise design patterns. “No financial decision has been taken yet on the project. We expressed Odisha government’s keen interest and they also expressed theirs,” the state’s development commissioner R BalaKrishnan told media persons. A newspaper in Odisha, however, reported that around Rs 460 crore will be invested in the project initially. Odisha hosts 52 kinds of handicraft and weaving art forms and around four lakh people are engaged in this profession directly or indirectly.
SOURCE:Fibre2fashion
"Time has come to restore the lost glory of Indian cotton. Country just doesn't need to increase its productivity and improve the quality of the cotton but it also needs to double the income of cotton farmers and non-farmers associated with the cotton industry by 2022. With the second technology mission on cotton in the offing all this seems possible," said Kavita Gupta, the textile commissioner of India.
Gupta was speaking at the valedictory function of the three day Asian Cotton Research and Development Network (ACRDN) meeting organized by the Indian Society for Cotton Improvement (ISCI) in collaboration with the International Cotton Advisory Committee (ICAC), the Central Institute for Cotton Research (CICR) and the Central Institute for Research in Cotton Technology (CIRCOT).
The commissioner said she saw a lot of hope in the young scientists who have excellent ideas and believe in innovation. These scientists she said should ensure the traceability of cotton, evolve suitable bale tagging process, develop agro-climatic zone specific varieties and develop synergy between all various factors impacting cotton which will give the required momentum to the whole process. Cotton she said was one commodity which generated a lot of employment from the farmers to the industry. 'Cotton is here to stay,' she said.
Stressing on bringing cotton to premier quality Gupta said that India needs to brand its cotton. She expressed her concern over the declining quality of cotton. Contamination and adulteration were two major problems that need to be addressed immediately to bring cotton to international standards and be competitive.
Although India had the highest area (36%) under cotton and was the biggest cotton producer the productivity was almost half (25%) of that of the major cotton growing countries. The average productivity in India was 500-570 kg/lint per ha as compared to world average of 900 plus kg/ha. Australia with highest productivity has an average of about 2619/lint kg /ha. India exports one third of the produce. "In Punjab there are farmers who produce 2500kg/ha. Why this can't be replicated elsewhere," said Gupta.
Earlier C D Mayee, former chairman of the national Agriculture Scientists Recruitment Board (ASRB) in his valedictory talk stressed on the need for regulations to control the seed, fertilizer and pesticide market. He said cotton in India was victim of democracy. He demanded a board at national level to control the lacunae in the system.
Mayee said that the value addition activities should be encouraged. These activities can fetch 30% income to the farmers. He said that there has been a good period for cotton with developments in technologies but despite this there has been a yield stagnation. Hence there is need to educate the farmers and the policymakers equally about changing the cotton production scenario in country. The high density plantation system (HDPS) was a perfect technology that has answer to increasing production. 'We need to select the best cultivars for HDPS,' he said.
M V Venugopal from CICR presented the recommendations of the ACRDN meet. Keshav Kranthi, the head of the technical information section of ICAC Washington and K S Kairon, former CICR director were also present on the occasion. Sundar Murthy proposed vote of thanks.
SOURCE: The Times of India
The term organic often conjures clichéd images of clean, chemical free food, usually in an elitist setting. Organic food is, in fact, a basic necessity along with sustainable clothing and housing. Interestingly, all our three basic necessities – food, clothing and housing – can be met sustainably through plants, the soil and with the facilitation of one of the main guardians of Earth – humans, if we live up to being good guardians of our planet. The focus of this article is on sustainable clothing, and specifically on cotton in India and some of the community-driven initiatives to sustain the indigenous cotton movement.
A fabric embedded in history
Cotton, the oldest fabric invented by humans, was widely cultivated during the Indus Valley Civilisation when hand spinning, weaving, and natural dyeing was in vogue. Indian cotton goes back to 600 BC with its earliest mention in the Rigveda. Much later, and from the 17th century onwards, all of India’s foreign traders, travellers, and invaders including the East India Company highly sought Indian cotton. Homespun and handwoven cotton or khadi was made popular by Mahatma Gandhi as a part of the swadeshi movement beginning 1905, symbolic of the end of dependency on foreign goods during the British rule.
While most of us think cotton clothing is cool, healthy and safe, the story of mass-produced commercial cotton is quite the opposite. This includes handlooms and sometimes even khadi. Most textiles are not entirely organic or socio-environmentally just, with some form of chemical input or social injustice at certain stages. This downfall came about in the 19th century with the onset of the Industrial Revolution followed by mass factory production, capitalism, and the present neoliberal era.
The cotton textile industry continues to flourish in India as a big number to be added to our Gross Domestic Product, for large corporations to profit from, and to provide, employment in factories. However, the story at the starting point of the cotton value chain is grim. Cotton farmer suicides are high due to reasons such as the high agricultural investments required for hybrid and genetically modified varieties like the controversial Bt cotton, a debt trap created by local moneylenders, poor yields due to factors like monoculture and climate change. Also, spinners, weavers and tailors are often on very low daily wages that are not commensurate with the hard work they put in.
The sustainable clothing movement
Socio-environmental injustices often lead to social movements and activism led by those in the community who are determined to make a change. Such movements are a powerful means of achieving transformative change along with civil society to support and champion its objectives.
Three social activists based out of Chennai were concerned about these injustices and put their thinking caps on. Jaishankar is a farmer and social activist, Pamayan is a popular writer and social activist, and Anantha Sayanan (Ananthoo) is a safe food activist and one of the co-founders of two organic stores and community centres called ReStore and Organic Farmers’ Market in Chennai. Ananthoo explained, “Hand-spinning and hand-weaving are labour intensive and women centric tasks, yet spinners and weavers are paid a pittance of Rs 120-160 a day.” He added, “The best solution is to have a distributed and decentralised model for the cotton industry with better wages and dignity and with the least number of middlemen involved as possible.”
In 2011, they formed a social enterprise called Tula in Chennai as not just a store that sells fair trade and sustainable cotton garments but as a holistic institution that takes into consideration the entire cotton value chain from crop to garment, with every stage being livelihood sustaining and socio-environmentally just. They realised very early on that there are many more interconnected livelihoods in the cotton clothing segment such as spinners, weavers, dyers and tailors. They brainstormed and came up with a balanced model that incorporated the entire cotton value chain and that could also be easily replicated or scaled up by others wanting to venture into the sustainable cotton segment. They began in the cotton belt of the Madurai region of Tamil Nadu and retailed their garments at ReStore.
However, in the first year of working in this region, they were ridden with a variety of challenges such as erratic weather conditions, farmers switching to a hybrid variety of maize for cattle feed for the quick profits it fetched, and many farmers who preferred to work with large export garment establishments in Tiruppur due to the social prestige associated with them.
Eventually, an organic agricultural policy introduced by the Karnataka government made it easier for Tula to work with farmers in Karnataka. They wanted to focus not just on organic cotton but also on desi (indigenous), rain-fed and old world, short staple varieties rather than the hybrid, long staple, American variety and the infamous genetically modified Bt cotton that the farmers were growing. Desi cotton is less water intensive, naturally resistant to many pests and diseases, and boosts the livelihoods of farmers, spinners, weavers, and tailors.
According to Ananthoo, “Since desi cotton is cultivated as a polyculture where there is intercropping and companion planting, it ensures that food is brought in along with fibre.” Tula works closely with the Alliance for Sustainable & Holistic Agriculture, which is a nationwide informal network of over 400 organisations across 20 states in India led by activist Kavitha Kuruganti. ASHA and Tula organised a Kisan Swaraj Yatra in 2010 – a nationwide mobilisation to draw attention to issues pertaining to food, farmers, and freedom. They also work with a network of farmers across Karnataka called Sahaja Samrudha, dedicated to reviving traditional seeds. The Janapada Seva Trust in Melkote, Karnataka, helps with the weaving and stitching of Tula garments. This is a voluntary organisation founded by Gandhian and Jamnalal Bajaj awardee, Surendra Koulagi in 1960 that focuses on social and economic elevation of the weaker sections of society. To give the garments a stylish, contemporary, urban edge, Tula works with Bengaluru-based designer Tara Aslam who has her own brand called Nature Alley that mainly stocks khadi clothing. Besides working with cotton farmers in Karnataka, Tula has also started working with farmers in Vidharbha, Maharashtra, which incidentally is the worst-hit Bt cotton belt, witnessing devastating farmer suicides.
National Handloom Day
There have been many events and exhibits all over India recently to celebrate National Handloom Day on August 7. The Central government declared August 7 as National Handloom Day in 2015 at a function in Chennai attended by Prime Minister Narendra Modi, to mark the beginning of the Swadeshi Movement that started in 1905 on this day.
Some of the workshops in Chennai recently included a unique four-day Hand Spinning and Wellness Game workshop at the Theosophical Society from August 4 to August 7, facilitated by Shiva Kumar Bharathi from Bengaluru. The holistic workshop focused on hand-spinning as a part of a broader wellness and sustainable living programme. The art of cotton spinning at the workshop was taught and facilitated by Madhav Sahasrabuddhe, an engineer-turned-spinning activist and teacher from Pune. He was introduced to spinning by Sadashivrao (Dada) Bhosale a decade ago and has been spinning and teaching how to use a charkha ever since. Sahasrabuddhe’s book called the Art of Spinning, is available for free download. All the participants worked on and took back a beautiful portable charkha specially ordered from Gram Seva Mandal, Wardha, Maharashtra. Only desi (indigenous) varieties of ginned cotton slivers that included Tamil Nadu’s native variety called karunganni cotton, were used by the participants to spin yarn.
On August 15 and August 16, a Weaver’s Exhibition and Sale called Freedom of Fabric was organised at Thakkar Bapa Vidyalaya, Chennai, by Tula. The participating organisations working with weavers and farmers from across India included Nature Alley (Bengaluru), Soot (Jaipur), Mahatma Gandhi Gramodyog Sewa Sansthan (West Bengal) and Tula (Chennai). They displayed and sold socio-environmentally just, naturally dyed garments, contemporary handlooms, and the fine Bengal muslin.
Fine muslin used to have a big market before the Industrial Revolution. However, post that, when mass production was the norm in Europe, small muslin artisans went out of business. Arup Rakshit from MGGSS said, “To weave muslin, high humidity is required in the room. Traditionally, muslin weaving was done in mud houses and woven before sunrise to control the temperature. The government has however made concrete structures now and it doesn’t control the temperature as effectively as the mud structures.” These are a few of the numerous challenges faced by the muslin weavers.
However, there is a silver lining to reviving some of the lost art of handlooms and artisan livelihoods. Ananthoo said, “It is exhibitions like these in cities that are pushing urban consumption, thereby increasing the demand for handlooms. Recently, a few educated youngsters in their early 20s happily joined the weaving centre in the Vardhaman district in West Bengal. We now have younger weavers joining the weaving profession because of greater urban demand and better compensation. The sheen and esteem associated with the profession is slowly but surely making a comeback.”
SOURCE: The Scroll
Garments made from bamboo fabric that feel superior than linen or finest cottons are being manufactured in the city by woman entrepreneur Sujata Kaswa. Sujata plans to sell them online through an online portal that she is planning to launch in Diwali next month. She presented shirts made from bamboo fabric to Union transport and water resources minister Nitin Gadkari, forest minister Sudhir Mungantiwar and mayor Nanda Jichkar during a function to celebrate World Bamboo Day at Chitnavis Center on Saturday. The garments put on display at venue enthralled all with their superior feel and great looks.
During the function, Gadkari exhorted industrialists from Vidarbha to join the bamboo promotion movement and help realize its true value. "Bamboo has potential to transform socio-economic profile of Vidarbha and replace the poverty with prosperity," he said. Gadkari announced that a bio-CNG plant using bamboo as raw material is coming up at Sakoli in Bhandara. "There is scope for 50 such plants, at a cost of Rs15 crore each, in Vidarbha. Bio-CNG, if used in tractors, can save a farmer Rs 25000 a year on fuel," Gadkari said. A bio-CNG refill station was already working in Pune. "The wonder grass — bamboo — can be the ideal weapon in the fight against poverty that the United Nations has launched," said Mungatiwar. He said the removal of transport regime for bamboo in Maharashtra was the first step initiated by him to realize the immense commercial potential of bamboo.
Dr Bharti, a Hosur-based bamboo technologist who developed through tissue culture bamboo variety named Beema, made a presentation on the topic — Bamboo, the future crop of agro-industry. Though India is world's second largest producer, it largely remains a neglected material, he lamented. He urged Gadkari to give it a big push at the national level through policy initiatives. "Time has come for converting it into crop. Farmers should be encouraged to undertake plantation because it acts as major carbon sink. A hectare of bamboo plantation absorbs 400kg of Carbon dioxide and releases 350kg of Oxygen," said Dr Bharti.
From green power, green and affordable housing, it can be used for making 1500 products but sadly very less is being done in the country. In contrast, China has taken rapid strides in last 20 years and used bamboo to provide jobs to 50 lakh people and earned through exports, he added. Sunil Joshi of Bamboo Society of India (Maharashtra chapter), who organized the event along with Neelam Manjunath, a Bangalore-based architect promoting bamboo as construction material for last three decades, said use of bamboo could help realize prime minister's housing for all project. Her book 'Symphony of bamboo' was released by Gadkari on the occasion.
SOURCE: The Times of India
The Indian finance ministry has released timelines for submission of proposals by ministries and departments for preparing the first budget following the implementation of the goods and services tax (GST). The pre-budget meetings will start from October 9, according to the department of economic affairs circular for the fiscal 2018-19 budget. Estimates of capital receipts have to be submitted to the budget division by October 16 and for revenue receipts by November 15. "All data, as per the prescribed formats, will need to be submitted on UBIS (Union Budget Information System) platform. Data entered in the UBIS shall form the basis for generating both Statement of Budget Estimates and the Detailed Demand for Grants," the circular said. The basis of the final budgetary allocations will be the ceilings indicated in the Medium-term Expenditure Framework (MTEF) statement, it added. The outcome budget framework would need to be prepared as per the allocations indicated in the MTEF statement, the circular said. The government expects GDP estimates, a key macro- economic data used in preparation of the budget, from the Central Statistics Office by January 6.
SOURCE: Fibre2Fashion
The GST Council may freeze tax rates for three months, given that the IT system is under challenge on account of frequent changes in rates. The rate freeze will most likely apply only for the 28 per cent rate category. Currently, the most intense lobbying is to bring items from the 28 per cent rate to 18 per cent. Also, the GST Council will not relent in the face of any demands for a rate review on ‘sin goods’, source close to the GST Council said.
A three-month freeze would also enable a meaningful analysis before tweaking rates. It is being felt that the IT system is under challenge because rates are changing very often. Repetitive changes in rules and rates are leading to challenges for IT teams. In order to provide stability to the IT platform while making the necessary changes, it is felt there is need to have a moratorium on changes in rates. This proposal is being discussed at the level of the ‘fitment committee’ of the GST Council, it is learnt. Meanwhile, a sub-committee of 3-4 officials has been tasked with framing new guidelines for review of rates. The guidelines will form the basis on which rate reviews would be undertaken in future, sources added.
On the proposal for a three-month rate freeze, MS Mani, GST-partner, Deloitte in India, told BusinessLine: “It would be good to have a temporary freeze on rate changes in GST, unless absolutely warranted, in order to impart some degree of certainty.” However, he added, “this means that businesses whose representations have not yet been addressed would have to wait longer for redress.”The GST Council is also aware that the benefit of reduced tax rates is not being passed on to consumers. Only in the auto sector was the benefit of lower rates passed on. There is hardly any sector where businesses have passed on the benefit of lower tax rates under GST, Mani added.
Anti-profiteering
The Centre is yet to put in place an anti-profiteering authority. While an anti-profiteering mechanism would notionally prove a deterrent, enforcing its mandate would be difficult, say GST experts. Pratik Jain, Partner & Leader-Indirect Taxes, PwC India, said it is important to get a comprehensive review done of all business processes that are being used for compliance at the GSTN portal and align these processes with GST laws.
SOURCE: The Hindu Business Line
The head of the Group of Ministers (GoM) tasked to look into Goods and Services Network’s (GSTN) technical problems, which has impacted the filing of tax returns, has assured that the issues will be resolved by October-end. Sushil Kumar Modi, who heads the GoM and also Bihar Deputy Chief Minister, said on Saturday that he was confident 80 per cent of the problems encountered in filing tax returns will be resolved by October-end.
Addressing reporters, he further stated that as this is an uncharted territory, some technical problems are bound to arise initially. “Efforts are being made to address all issues in the next month and a half,” he said. The group is examining the technical problems faced by GSTN, which is the IT platform for real-time taxpayer registration and tax returns. India’s second-largest software services provider Infosys is managing the IT infrastructure for GSTN.
The issue on hand was due to a rush in tax filing on August 30, which caused the system to crash, thereby hindering the filing process. Officials also added that around 80 officials of the Commercial Tax Departments of various States held meetings with all stakeholders — such as dealers, software experts, bankers, big corporates and tax consultants — to understand the various challenges they faced.
Further, it is estimated that even though around 85 lakh dealers have registered under GST, only around 3.05 lakh have filed their 3B returns, Modi said. The 3B returns is a self-assessment filing of sales and purchases to be made by businesses.
‘No extension’
Despite the glitches, the government has made it clear that no extensions will be given. “We have kept long deadlines for GST filing. For at least six months, the taxpayers have to file their own assessment. There will be no extension later,” Revenue Secretary Hasmukh Adhia told reporters. In the last 3-4 days before the deadline, there is a heavy rush to file returns, and tax payers wait till the last day, added Modi. While business consultants agree on this, they point to other concerns which need to be looked into. “Key problems such as the de-registration facility or the refund mechanism to the exporters should be given preference as far as the system is concerned,” said Abhishek Rastogi, Partner, Khaitan & Company. Before GST came into effect, GSTN was expected to handle 70 lakh tax payers and 300 crore business invoices every month, create reports and analytics.
SOURCE: The Hindu Business Line
The GST Network (GSTN) today said it has reopened the facility for small taxpayers with turnover of up to Rs 75 lakh to opt for composition scheme. Such small taxpayers will have time till September 30 to opt for the scheme, which offers easy compliance for business as returns are to be filed only quarterly. Taxpayers were earlier given time till August 16 to opt for composition scheme. But, only 10.86 lakh tax payers, out of total 85 lakh registered businesses opted for the scheme.
In a statement, GSTN said the window will be open for those assessees who have migrated from the earlier excise/ service tax/VAT regime as well as for new registered taxpayers. “To make this facility available to all those who could not opt for Composition, the facility has been opened again,” it said. The GST Council had last week decided to reopen the window for allowing taxpayers to opt for the scheme.
Those who opt for composition scheme during this period will get this facility from October 1 for the current financial year. “For the period prior to October 1, the taxpayers will be treated as normal taxpayer and will have to file monthly return for the period till September 30, 2017,” GSTN said. GSTN CEO Prakash Kumar said that the composition scheme has been designed to simplify and reduce the burden of compliance for smaller taxpayers.
To opt for the scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select the “Application to opt for the composition scheme” under the “Services” menu. After filling in the form, he has to submit the application using Digital Signature or E-signature or Electronic Verification Code, GSTN said.
SOURCE: The Financial Express
The Goods and Services Tax Network is facing starting hiccups, which is hardly surprising. World over any new IT system takes six to nine months of trouble-shooting to get most things right. Remember the frequent system and software upgrades released by Microsoft and Oracle. But the GSTN, being the mandatory clearing system of Indian businesses, has no such luxury. Even as the GSTN resolves issues, it has to think of possibilities to strengthen itself. Can we make the user interface simpler and the internal process flow straighter? We propose such a system.
Adding to GSTN
The new system will involve creating a new module for use in both business and government. We may call it the Invoice Generation System (IGS). The Government will own the IGS. Firms would use IGS for preparing business invoices and paying taxes. They would not generate invoices in their private systems as they do now. This will ensure that the Government gets the relevant data at the time of invoice generation; there’s no need to wait for the filing of returns by firms.
An example will explain this. Consider 2 GST registered firms A and B. Firm A has agreed to sell 100 shirts to firm B @ ₹200 a shirt. GST rate on shirts is 12 per cent. Firm A will use IGS to generate an invoice by mentioning Firm B’s GSTN number. For this, Firm A will enter the GSTN number of Firm B, details of the shirt and the agreed price. The IGS will fetch the GST rate from the system and details of Firm B from GST registration records to populate the invoice.
The invoice thus generated would show that Firm B has to pay ₹24,000 to Firm A — ₹20,000 as the price of the shirt and ₹4,000 as GST. The invoice data can be viewed online by both GSTN and Firm B. Firm B would accept the invoice details sent by Firm A to state its acceptance of the invoice. Firm B would make payment for the shirts to Firm A. At this point, the role of IGS will be over, and the GSTN will take over completion of processes such as calculation of input tax credit, invoice matching, and so on. Both A and B would pay taxes based on calculations by the GSTN from the invoice data fetched from IGS.
Benefits of the new system
IGS would be a useful addition to the GSTN. It will end the need to file multiple registrations and returns. Retailers may use IGS to generate cash memos at the time of final sale to the consumer. The retailer’s IGS account will already have a record of the stocks received from the wholesaler. The Government could collect GST even at the last mile of the transaction, a weak point so far. Glitches in the existing system will come down with the addition of the IGS in the GSTN system.
Let us understand the issues faced by the existing GSTN system. Even though it was designed to handle 300 crore invoices uploaded by one crore traders every month, it faces frequent slowdown. It needs many design upgrades. For example, while processing an invoice with multiple items/rates, the GSTN identifies only the first item of the invoice and treats the rest as duplicate. Data is sometimes lost if the user switches windows in order to obtain information such as details of supplier claiming input tax credit. Security issues such as access to unrelated firms have also been reported. Such issues are taken care of as they arise in any system. GSTN is no exception to this.
On account the GSTN glitches, the dates for filing of GSTR 1 has been extended to October 10, GSTR 2 to October 31, GSTR 3 to November 10, and GSTR 3B to December. But while the extensions give time to individual firms and the GSTN, they also block the processing of refunds and transfer of money to State governments. This delays the monthly settlement cycle of the GSTN. Many are also concerned about the soon-to-be-operational e-way bill system. If it faces any glitches, the movement of goods will come to a halt.
The new system and small firms
Addressing tax administrators at the Rajasva Gyan Sangam event in New Delhi on September 1, Prime Minister Narendra Modi voiced his concerns about this. “We should work towards ensuring that all traders, including even relatively smaller traders with a turnover below ₹20 lakh, should register with the GST system,” he said. He asked the officers to design a system for this category to enable all traders to get maximum benefit from GST.
The Prime Minister rightly understood that the business opportunities for firms outside the GST system would be limited. Unregistered firms are not allowed to export-import, sell on e-commerce websites or sell to other States. GST-registered firms avoid buying from unregistered firms. Onerous GST compliance requirements such as filing three monthly returns is the major reason that deters small firms from joining the GST regime. Adoption of IGS in the existing GSTN system will allay these fears.
Adoption of the IGS will remove the difference between actual and reported business transactions. Tax collection will increase as there will be no unreported transactions. Audit and surveillance work will come down. Adoption of IGS will reduce the burden on GSTN servers. IGS is an idea actively discussed among a small team of professionals who wish to see the GST succeed. We are sure it will be a game-changer and will help small firms join the GST world in large numbers.
SOURCE: The Hindu Business Line
The power sector is in a fix because of the build-up of stranded input credit, which are adding to the costs of setting up infrastructure for power generation, transmission and distribution. The non-inclusion of the power sector under the GST regime has led to rising costs. According to industry players, there were multiple representations made to the Goods and Services Tax Council seeking to bring the power sector under the GST regime, but without much success. “States earn a substantive amount through levies on the sale of electricity. They were unwilling to part with it,” a power sector official told BusinessLine.
Incremental impact
Chief Executive at Sterlite Power Pratik Agarwal said, “Electricity being an exempt sector, the entire incremental impact of GST is a cost to the transmission company. It will result in at least 5-7 per cent incremental cost for transmission capital expenditure.”
Sector players used to get passable tax credits on services and goods that would be utilised for generating, transmitting or distributing electricity. “Since the sector has been kept out of GST, the tax credit from Engineering, Procurement, Construction contract services and goods purchase cannot be offset anywhere. This has become a cost for us now,” another sector player said. “While these costs are covered under the change-in-law clause, the Central Electricity Regulatory Commissionneeds to find a way to make these pass-through on immediate basis and not wait till Commercial Operation Date,” Agarwal added.
In a presentation to power industry representatives, Sachin Menon, Tax and National Head of Indirect Tax at KPMG, said, “The sale and generation of power is not under GST, and State governments are free to levy their taxes on the same. The transmission sector has been specifically exempted under the GST law. Which means that the output service is an exempt service.” This has led to the credit stranding, he explained. “The fallacy is that if the input is subject to GST, it becomes a cost to the distributor and transmission player,” he added. Menon said, “The works contract attracts 18 per cent GST. Some contracts may also have supplies and transport components, where the rate of GST is much lower.” Many of the projects that are already ongoing and have faced the GST transition are asking contractors to raise separate bills for equipment and transport, he added.
SOURCE: The Hindu Business Line
After debating for months, the government is moving to make Permanent Account Number (PAN) the Aadhaar for businesses as well as non-government organisations as it looks to close possible gaps for generation of black money. Sources told TOI that the ministry of corporate affairs (MCA) has proposed amendments to the Income Tax Act as well as the Prevention of Money Laundering Act for the purpose and the government is looking at a mechanism under which any entity with cumulative transactions of over Rs 2 lakh annually will have to comply with the regulations.
While most businesses and NGOs have PAN, its use is mandatory for any cash transaction of over Rs 50,000 and for complying with know-your-customer (KYC) norms in banks. Sources said the amendments are meant to check any possibility of misuse. During discussions it has emerged that businesses will need to provide Aadhaar at the time of registration of companies and partnership firms, ensuring that individuals who are directors or promoters of these entities are easily tracked and floating so-called benami companies become tougher. "The government may make it mandatory for key management personnel (such as managing directors and chief executives) to submit Aadhaar but that's something that will be done in the future," said a source, who did not wish to be identified.
MCA has already moved to a system where a PAN is generated for companies at the time of incorporation, a process that the government claims takes less than 24 hours. But partnership firms and trusts are not part of the process as they are handled by other agencies, including state governments. Through the proposed amendments, all the entities would be brought on to the same platform and it will be easier to track them, said an official.
The ministry had discussed various options including development of an Aadhaar-type identity for businesses, an idea which was also discussed with the information technology ministry. But it has now opted for PAN. A few years ago, the government had decided to treat PAN as the unique identification number for businesses, instead of generating multiple numbers for provident fund, tax and labour law-related compliances.
In recent months, the government has cracked down on companies at multiple levels, including identifying "shell companies", which are entities used for re-routing or laundering illicit wealth. While Sebi has acted against listed companies, MCA has cancelled registration of over two lakh defunct companies, which had not filed returns for years, while also cancelling the directorship of those on the boards of these entities. In addition, RBI and the Indian Banks' Association have been advised to freeze their bank accounts, to choke all financing options. As part of the next step, limited liability partnerships are under the scanner and they will also face similar action.
SOURCE: The Times of India
India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector, British brokerage HSBC has said. Social capital is "insufficient" in the country and spending on aspects like health and education "is not just desirable for its (India's) own sake, but is also central to economic growth and political stability", it said. India also needs a lot of focus on ease of doing business and related aspects like contract enforcements. "In over the next ten years, India will likely surpass Germany and Japan to become the world’s third largest economy in nominal USD and the transition will happen even more quickly on a PPP (purchasing power parity) basis," its economists said in a note.
Demographics and macro stability were pointed out as key strengths for the country by the brokerage. Its estimates show India will be a USD 7 trillion economy in 2028, as compared to less than USD 6 trillion and USD 5 trillion for Germany and Japan, respectively. Presently, India's GDP is around USD 2.3 trillion (fiscal 2016-17). It stands at the fifth spot in global rankings. The brokerage said the growth rate, which will be lower in FY18 as compared to the year-ago's 7.1 per cent due to the introduction of Goods and Services Tax (GST), will recover from next year in a sustainable fashion. It also made a case against "stray reforms", terming them as "harmful". "There are limits to one-off reforms. India needs to create an ecosystem of continuous change," it said.
Citing the case of GST, it said the informal enterprises that create a bulk of jobs in the country may respond to higher taxation by shutting shop or laying off workmen. With concerns being raised about jobless growth, it said the e-commerce sector will create 12 million jobs over the next decade, which is half of the 24 million shortfall. Another avenue of job creation can be the social sector, where a lot of work needs to be done on health and education fronts, it said. India will continue to be a services oriented economy but needs to pay extra attention on manufacturing and farm sectors as well, it said, adding that it would be desirable to maintain the contribution of manufacturing, agriculture and services at the current levels.
The Indian story will be different from the export- oriented one of China's, it said, pointing out that domestic consumption with over 550 million consumers will be the standout factor. Apart from services, other hallmarks of the India story over the next decade will be higher investment and capital goods flows as its focus on manufacturing increases, Indian consumers forcing foreign brands to turn 'glocal' and a two- way human capital footprint that will see many skilled people travelling overseas, it said. "It (India) needs to broaden its specialisation (beyond just IT in business and cricket in sports) if it wants to run harder and fly higher," it said.
SOURCE: The Moneycontrol
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1311.93 |
USD/Ton |
0% |
9/17/2017 |
|
VSF |
2456.06 |
USD/Ton |
0% |
9/17/2017 |
|
ASF |
2501.82 |
USD/Ton |
5% |
9/17/2017 |
|
Polyester POY |
1332.52 |
USD/Ton |
0% |
9/17/2017 |
|
Nylon FDY |
3173.04 |
USD/Ton |
0% |
9/17/2017 |
|
40D Spandex |
5568.08 |
USD/Ton |
0% |
9/17/2017 |
|
Polyester DTY |
5766.39 |
USD/Ton |
0% |
9/17/2017 |
|
Nylon POY |
1556.01 |
USD/Ton |
0% |
9/17/2017 |
|
Acrylic Top 3D |
2867.94 |
USD/Ton |
0% |
9/17/2017 |
|
Polyester FDY |
2654.37 |
USD/Ton |
5% |
9/17/2017 |
|
Nylon DTY |
1685.68 |
USD/Ton |
0% |
9/17/2017 |
|
Viscose Long Filament |
3279.83 |
USD/Ton |
0% |
9/17/2017 |
|
30S Spun Rayon Yarn |
3066.26 |
USD/Ton |
0% |
9/17/2017 |
|
32S Polyester Yarn |
2013.66 |
USD/Ton |
2% |
9/17/2017 |
|
45S T/C Yarn |
2867.94 |
USD/Ton |
1% |
9/17/2017 |
|
40S Rayon Yarn |
3234.06 |
USD/Ton |
0% |
9/17/2017 |
|
T/R Yarn 65/35 32S |
2395.04 |
USD/Ton |
1% |
9/17/2017 |
|
45S Polyester Yarn |
2105.19 |
USD/Ton |
0% |
9/17/2017 |
|
T/C Yarn 65/35 32S |
2410.29 |
USD/Ton |
1% |
9/17/2017 |
|
10S Denim Fabric |
1.42482 |
USD/Meter |
0% |
9/17/2017 |
|
32S Twill Fabric |
0.42104 |
USD/Meter |
-52% |
9/17/2017 |
|
40S Combed Poplin |
1.22498 |
USD/Meter |
0% |
9/17/2017 |
|
30S Rayon Fabric |
0.68648 |
USD/Meter |
0% |
9/17/2017 |
|
45S T/C Fabric |
0.72309 |
USD/Meter |
0% |
9/17/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15255 USD dtd. 9/17/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In the recently ended marketing year 2016-17, the United States exported 14.9 million bales of cotton, registering the highest quantity of exports since 2005-06, when the country exported 17.7 million bales. US cotton exports during the year were well above the levels initially forecast by either US department of agriculture (USDA) or private forecasters. While upland cotton was the most exported totalling 14.3 million bales, the remaining 614,000 bales were of extra-long staple cotton, the Foreign Agricultural Service of the USDA said in its September 2017 report ‘Cotton: World Markets and Trade’. “Both rising US crop estimates and rising global consumption helped account for this increase (in cotton exports”, the report said.
For the second year in a row, Vietnam was the largest importer of US cotton, and it imported nearly 2.8 million bales. As a result, the US market share in Vietnam rose to 50 per cent last year. Exports to the Indian subcontinent also increased sharply, with India, Pakistan, and Bangladesh combined representing the second-largest US trading partner. Two years of smaller crops in Pakistan, high domestic prices in India, and extremely rapid growth in mill demand in Bangladesh all helped drive these high shipments. However, as production recovers in Pakistan and India, “it may be challenging for US exporters to maintain these levels of sales, although demand in Bangladesh is expected to continue to grow.”
China’s imports remained quota-constrained throughout the year and reserve sales introduced 14.3 million bales into private supplies. As the US market share in China recovers from the extremely low level seen in 2015-16, exports to China are expected to figure prominently in the upcoming year. Exports to traditional US-led markets such as Turkey and Mexico did not show appreciable growth during the year.
SOURCE: Fibre2fashion
The Virginia Department of Agriculture and Consumer Services has announced that production reports show large increases in projected yields for cotton and peanuts. The announcement came after the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) September Crop Production, showed increases in a variety of ways for the state. “Scattered rains in August provided enough moisture to improve yield prospects,” said Herman Ellison, Virginia state statistician with NASS. “Cotton, peanut and soybean yield forecasts all increased from last month.”
NASS gathered data for the September Agricultural Yield Survey earlier this month. The monthly yield surveys begin in May with the focus on small grains through July and shifts to row crops beginning in August through the remainder of the growing season. “Thank you to all the farmers for taking time to complete the September Agricultural Yield Survey,” Ellison said. “We appreciate your efforts during the busy growing season.” According to NASS and Virginia Department of Agriculture and Consumer Services, crop totals for soybeans and flue-cured tobacco also saw production growth.
Below are a variety of projected yield for Virginia crops:
Virginia cotton production is projected to be 190,000 bales, up 23 percent from the August forecast and up 90 percent from 2016. Cotton yields are forecast to average 1,099 pounds per acre, up 94 pounds from last month and up 432 pounds per acre from the previous year. Producers expect to harvest 83,000 acres, up 9,000 acres from the August forecast and up 11,000 acres from 2016. Cotton bolls opening is 19 percent as of Sept. 3, up slightly from last week and last year at 10 percent and 17 percent, respectively.
Peanut farmers in Virginia anticipate harvesting 116 million pounds for 2017, up 49 percent from last year. Acres expected to be harvested total 27,000 acres, up 6,000 from last year. Producers expect a yield of 4,300 pounds per acre, up 600 pounds from 2016.
Soybean production for Virginia is forecast at 23 million bushels, up five percent from the August forecast and up seven percent from 2016. Yield was estimated at 39 bushels per acre, up two bushels from last month and up three bushels from a year ago. Acreage for harvest as beans was estimated at 590,000 acres, down 10,000 acres from the previous year. Soybeans dropping leaves was at five percent as of Sept. 3.
Corn production in Virginia is forecast at 46.2 million bushels, unchanged from the August forecast and down eight percent from the previous crop. Yield was estimated at 140 bushels per acre, unchanged from last month and down eight bushels from the 2016 level. Acres for harvest as grain were estimated at 330,000 acres, down 10,000 acres from 2016. Corn harvested for grain is now underway with 21 percent harvested as of Sept. 3, up from five percent harvested last week.
Virginia flue-cured tobacco production is forecast at 49.5 million pounds, up five percent from the August forecast and up two percent from 2016. Yield was projected at 2,250 pounds per acre, unchanged from last month and up 50 pounds from the 2016 crop. Harvested acreage was estimated at 22,000 acres, unchanged from last year’s crop. By Sept. 3, 51 percent of Virginia’s flue-cured tobacco crop has been harvested, up slightly from 46 percent last week and 45 percent last year.
SOURCE: The WTKR
Textile-mill villages were common in North Carolina throughout much of the 20th century. The companies that owned the factories would build low-cost housing near the mills. The arrangement enabled workers to get to work quickly and gave the owners a not-insignificant measure of control over their employees’ private lives. One such village was Erlanger, on the northern edge of Lexington. It was named for Erlanger Mills, the city’s largest textile operation, which employed about 900 people. Abraham and Charles Erlanger built the mill in 1914 to supply fabric for their B.V.D. underwear plant in Baltimore. The village soon followed, and grew to about 350 houses — cottages with small porches and tidy yards. Eventually, its scope widened to include a general store, post office, YMCA, public baths, clubs and a church.
The company used the village as a recruiting tool to lure farm families to a life centered on a time clock and a loom. It published a brochure that boasted of the 30 floorplans, the modern sewage system and brick foundations. It read in part, “Those who come to Erlanger Village in the future may be sure that they will be accepted in a spirit of fraternity and helpfulness.”
There was no government to speak of. The company was mayor and town council, although older employees acted as “advisers.” The company kept a close eye on its workers. Having a messy yard was grounds for dismissal. So were lapses of judgment known as “moral transgressions.” Personnel directors kept track of church attendance and other social habits. If you lost your job, you lost your house. The company had control, but it could also on occasion show a heart. In 1938, for example, a slowdown in textile sales shut down the Erlanger Mills. The company stopped collecting rent and continued to provide utilities for the four months that production stopped.
Erlanger stopped being a company town in 1953 when the mill sold 294 houses to employees. It was considered one of the largest real-estate transactions in Davidson County’s history. Employees paid about $500 a room for the houses they lived in. Later, the YMCA and pool closed, replaced by a shopping center. The community vanished as employees dispersed and houses changed hands.
SOURCE: The Journal Now
South Carolina cotton farmers are hoping weather cooperates until the very last cotton field is harvested this year. They are on track to produce their best cotton crop ever, and they need it. South Carolina cotton farmers are hoping weather cooperates until the very last cotton field is harvested this year. They are on track to produce their best cotton crop ever, and they need it.
Following two back-to-back years of rain-damaged crops, South Carolina is due a good cotton crop this year. Speaking at the annual field day at the Pee Dee Research and Education Center in Florence, Sept. 7, South Carolina Cotton Specialist Mike Jones highlighted USDA’s September crop report that put the statewide average yield in South Carolina at 960 pounds per acre, a record. The old state record was 955 pounds in 2012.
Jones noted that USDA can be a bit high in its crop estimates, but he said the crop does look excellent across the state. “Driving around and talking to county agents, I haven’t seen a bad cotton crop here in South Carolina, Most of it is loaded up pretty good,” Jones told field day attendees. USDA puts South Carolina cotton acreage at 250,000 acres, up from 198,000 acres last year. Jones notes that USDA rates the crop 98 percent good to excellent, which has never happened in South Carolina. “Unless another hurricane comes through, I think we’re going to have a pretty good crop. It’s starting to cut out like it should so hopefully we’ll get it out of the field and have a pretty good harvest,” Jones said.
Turning to production advice, Jones emphasized the importance of plant population and having enough plants in the field to produce maximum yields. “I think we’re starting to push our seeding rates a little too low,” the cotton specialist said. “Our ideal plant population, in my opinion, is about three plants per foot row in a 38 inch or 40 inch row. But research has shown that if we can get from 1 to 1.5 plants per foot row, it is just as good as 3 to 3.5,” he said. “I know you guys like to hear that because that’s going to save you some money on your technology fees and your seeds. The only issue with that is it’s going to delay your maturity by two to three weeks cutting your seeding rate that low.”
Jones said most years this isn’t a problem, but with the threat of hurricanes and rainy weather, it is something to consider. “If you get down below one plant per foot of row, you’re looking at a 20 to 30 percent field decrease right off the bat. We don’t want to go that low. That’s pushing it too low,” he emphasized. In the meantime, Todd Campbell, a USDA research geneticist based at the Pee Dee Research and Education Center, emphasized the importance of genetic diversity in cotton varieties. He called genetic diversity a “long-term insurance policy” that is critical for the continued improvement in cotton varieties. “You may not see the impact of genetic diversity next year or the year after that or even within five years, but there is a lot of substantial evidence out in the scientific community in cotton that has demonstrated a narrowing of the genetic base in cotton,” Campbell said. “Breeders need new genetic diversity, new traits, new resistance genes and new genes that improve fiber quality. We need to be able to integrate those in varieties of the future.”
Campbell said cotton germplasm that offers improved fiber quality is paramount. “If it doesn’t have good fiber quality, it gets thrown out. There is a real delicate balancing act when you’re a cotton breeder when you’re trying to select for high yield and for high quality. It sounds easy, but it’s really difficult. When you get high quality, typically your yield goes down and vice versa.”
SOURCE: The South East Farm Press
The International Textile Manufacturers Federation, or ITMF, a forum for the global textiles industry, held its annual meeting in Nusa Dua, Bali, on Sept. 14-16, to discuss the emerging trend of technology disruption in the industry. "Since the financial crisis of 2008, the world has been changing ever faster driven by technological, political and environmental factors," Christian Schindler, the director general of ITMF, said in a statement on Saturday (16/09).
"Many of these factors are disruptive."
According to Schindler, fast fashion and e-commerce have transformed the industry fundamentally, offering new opportunities while at the same time threatening businesses that refuse to adopt new technologies to reach a wider market and produce more efficiently. "Every part of the textile-related supply chain has to be willing to change when it comes to technology," Edwin Keh, chief executive at the Hong Kong Research Institute of Textiles and Apparel, said during a panel at the forum.
Keh explained how customers are now empowered by technology, essentially dictating to manufacturers the type of clothing they would prefer to buy. Web giant Amazon, seeking to take advantage of the intersection between technology and the textiles industry, was recently granted a patent to build an on-demand apparel manufacturing facility. "We can either be victims, bystanders or participants," Keh said. "The world trade is moving toward a change where consumers are taking full control," Ade Sudrajat, chairman of the Indonesian Textile Association (API), said.
Indonesia accounts for a significant part of the global textiles industry. According to the Ministry of Industry, the value of the nation's overall textile investment in 2016 amounted to Rp 7.54 trillion ($570 million), producing about 2 percent of the world's textile supply and generating $11.87 billion in foreign exchange reserves. The global textile industry — which includes sub-segments such as fiber, yarn, fabrics and garments — is currently worth about $3 trillion. "The production base needs to adjust to the demand by having less inventory, speed to the market and integrated supply chain," Ade said.
About 200 business leaders attended the three-day event. Although there was no guarantee that any transaction would be made during the event, a mid-level manager at a local textile machinery agent told the Jakarta Globe that he made many new contacts from China and India. A similar meeting will be held in Nairobi, Kenya, next year. The Globe was invited by online marketplace 88Spares to attend 2017's annual ITMF meeting.
SOURCE: The Jakarta Globe
Spinning, knitting, crocheting, or weaving may conjure up scenes of grandma sitting on her rocking chair using her skills in days gone by. But rest assured, those skills are not a lost art. In fact, spinning, knitting, crocheting, weaving and the like are at the center of a thriving community in east Idaho. The Craft Yarn Council, a national trade association, calls knitting and crocheting an increasingly popular hobby for people of all ages. That’s partly due to the internet, where people meet up from across the world to share their hobby. Online knitting site www.ravelry.com has more 7 million active users, who share patterns and ideas.
People in east Idaho who love all things yarn are finding each other, and they are learning what they can from one another. Not only that, they are connecting on a personal level and then joining forces to help the community. Tish Vawter, owner of The Yarn Connection at 415 Park Ave. in Idaho Falls, can always tell whether a customer is a serious knitter or not. The serious knitter can’t help it — they have to touch all the yarn in her store. “They will pick it up and feel it,” she said. “They’re very tactile.”
Twenty-one years ago, owning a yarn store wasn’t something Vawter would have envisioned herself doing. “I don’t always listen to my mother, but she told me to open a yarn store. I figured after she told me three times I’d better listen,” Vawter said. Project ideas on display at The Yarn Connection give customers some ideas and inspiration. | Carrie Snider, EastIdahoNews.com She started by renting a small space in a mini mall in downtown Idaho Falls, and she taught a community education class. Slowly business grew, and eventually she moved her yarn store to a space on Shoup Avenue. Then 10 years ago she opened in her current location on Park Avenue. It’s much bigger and can hold a large variety of yarn and knitting tools. “I try to carry anything that is not carried in the craft stores,” she said. High quality yarns and tools are her specialty.
In her store, there is also a space for people to gather for knitting or crochet groups. While providing a great yarn selection has been crucial, Vawter found what her customers really craved was a place to gather with other yarn lovers. So they get together often to work on projects and learn from each other; but yarn and needles are only part of it. “We are more than just a knitting group,” Vawter said. “We are a support group. We gather socially and have realized this is good therapy. If someone isn’t there, we find out where they are. Over the years members have lost spouses, and we bring meals and cards and support them.” They have become an important community of people, but they also do things for the community. At their regular unfinished projects group, members donate money to the local food bank. At times, group members have also knitted preemie hats, helmet liners and socks for soldiers, scarves for foster children, items for the Haven, and more.
Get Started in Spinning
Spinning has also gained in popularity right along with knitting and crocheting. It’s part of a resurgence to connect with where things come from. Knitters and crocheters love yarn, so it’s only natural they would want to study how it’s made. Spinning is the art of taking wool or other fibers and spinning it into yarn. Julianne Ciddoway, of the popular YouTube channel Dirtpatcheaven Homestead, lives in Rigby with her family. Her videos focus on different aspects of their homestead, from animal care to medicinal herbs. She also has a series of videos that cover all things wool: washing, dying, carding, spinning. and knitting. “I learned how to spin when I was 8 years old in a 4-H class,” Ciddoway said. About that age she also was raising lambs so she used the wool, spinning it on her grandma’s hemp wheel. Years later, when she had to her YouTube channel, she branched out and realized how much spinning had grown in popularity and how much was out there.
While trying out a variety of spinning wheels has provided a lot of education for her and her YouTube viewers, what she has also learned is how important the wool itself is. “I found it was hard to show videos using junk yarn,” she said. “A friend started selling premium wool, and when I started spinning with her wool it made a huge difference.”
Premium wool is much more expensive, but Ciddoway wanted yarn that would hold up over time; she was using it to make clothes for her family. “Viewers started asking about the clothes so I make some pieces and sell some on Etsy.com,” she explained. Until recently, the guild held a fiber faire where they offered demonstrations on different techniques. | Courtesy Weaving, Spinning & Fiber Arts Guild of Idaho Falls Ciddoway has noticed that all things yarn seem to be something that women in particular are drawn to. “Women are usually going, going, going all day. We need to sit down and rest. Knitting is something productive to do when you’re sitting, plus you have something to show at the end of the day. It’s an art.” She added that especially when you use a good quality yarn, the item can be an heirloom to pass down.
Ciddoway added that she hopes that with her videos, she can inspire beginners to start spinning and not be intimidated by it. The keys is to start small and practice. “A lot of people start out with junky yarn and think they are bad at spinning. What you really need to do is get beautiful wool.” Besides that, start small and practice. She suggested beginners start spinning by using what’s called a drop spindle. “If you can master that, then when you get a wheel you’ll be ahead of the curve. Learn to make a strong yarn. Find a friend or teacher who can help you with it.” Certainly, YouTube videos can provide some great instruction to get started in spinning, but she said it’s so important to find someone close by who can teach you. Getting that in-person, one-on-one experience is priceless; because it’s more than just learning a skill, it’s about connecting and passing on knowledge.
For those interesting in learning to spin, knit, crochet, weave, and the like, there is a studio space and classes dedicated to just that. The Weaving, Spinning, and Fiber Arts Guild of Idaho Falls offers a space and community of people who are experienced and willing to share their knowledge. The nonprofit group started in 1976. The studio, located at 482 Constitution Way, Suite B-11 in Idaho Falls, has looms, spinning wheels, carders, a library of helpful books and more so people can try out different things. Mary Ellen Anderson, the weaving coordinator at the guild, said it’s a place of learning, but also connection. “When I moved here in 1998, I found the guild and instantly had a community,” she said.
Guild membership fluctuates but is currently around 65 members, including people of all ages. “Some people bring their kids. We get excited when we get younger people. It always ads a sparkle to the evening.” She added that anyone can learn to knit, crochet, spin, card, etc., and people can even pick it up later in life without any prior knowledge. “One man was 73 when he saw us at a demo at the fair. He and his wife spin and weave here at the studio. Now they are in their 80s. “This is part of our ancestors’ lives. Everyone needed socks, hats, and coats. These days, it fluxuates in popularity. I think social stresses have an effect on it. In times of distress, people will seek things that help them relax and connect. Knitting has been shown to lower your heart rate and blood pressure. I can be really stressed out and sit at the spinning wheel and fall asleep.” Anyone is invited to the guild’s open studio night on Tuesdays. The guild’s regular study classes throughout the week include: Warped Weavers, Dizzy Spinners, Tapestry, and Rug Hookers. They also have lots of other specialty classes, so check out the guild’s Facebook page for up-to-date information.
SOURCE: The East Idaho News
