The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 28 SEP 2017

NATIONAL

INTERNATIONAL

Irani assures support to improve textile industry

This was informed when state Minister for Power, Industries, Textile and Handicrafts, Tamiyo Taga called on the Union Minister on Wednesday at the Shastri Bhavan in New Delhi to inform her about the textile industry development programmes in the state and on various schemes initiated by the government. Union Minister for Textile and Handicrafts Smriti Irani assured to give her support to the Arunachal Pradesh Government’s endeavours in improving the state’s textile industry. Noting that the Northeast states of India possess potential in the textile and handicraft industry, the Union Minister also urged Taga to implement and utilise the allocated funds and schemes for the betterment of the public as the industry can bring both economic and social changes in the society.

Source: The Arunachal Times

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CBEC tells officials to proactively challenge pending GST cases in high courts

As the government struggles to realise a massive amount of revenue stuck in litigation, the Central Board of Excise and Customs (CBEC) has instructed its officials and field formations to proactively challenge pending or stayed cases related to the goods and services tax (GST) in high courts by way of filing special leave petitions (SLPs) in the apex court. The Supreme Court allows SLPs only if there is a substantial question of law of general or public importance involved, or if there is manifest injustice resulting from an impugned order or judgment. “Principally, all orders, whether interim or final, are appealable. Whether the levy of GST has been questioned or stayed, irrespective of the fact that matter is still pending before the High Court, the same needs to be challenged through SLPs before SC,” the board said while instructing its officials. Officials said that the idea was to ensure that there was finality on aspects of GST without waiting for pending cases to be decided. In its communication, the board said : “As GST is at its inception stage, it is important to defend the issues effectively to defend the interest of the government.” It referred to high courts’ decision in certain GST-related cases where the department was asked to not take coercive steps to recover taxes pending the outcome of the petition. Further, the department asked the officials to keep a close watch on GST-related petitions filed in the high court in their jurisdiction. The officials are also required to send a proposal for filing SLP to the legal cell of the board for vetting. However, officials said that monitoring GST-related cases would require resources that are currently engaged in resolving legacy issues. To ensure that manpower is available for GST cases, the board, in a separate communication, asked the officials to decide all pending cases by December. The board will review the progress on October 5. As FE reported earlier, CBEC is engaged in over 3,000 pending cases with an accumulated revenue of over Rs S 1.5 lakh crore. Each of these cases is worth Rs 10 crore or more in terms of revenue involved. The board has also tried to withdraw smaller cases earlier this year. Last year, the government had said CBEC identified 7,312 cases fit for withdrawal from courts and tribunals. Field formations had filed withdrawal applications in 980 and 2,174 cases in high courts and tribunal. The issue of revenue blockage due to litigation is worse for the direct taxes department. According to official data, as of April 1, a total of 2.9 lakh cases were pending before the department’s first appellate authority — the Commissioner of Income Tax (CIT) (appeals) — involving `6.11 lakh crore. Of this, demands amounting to `1.18 lakh crore had been stayed by the Income the Tax Appellate Tribunal or other courts.

Source: Financial Express

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Traders positive about GST but need hand-holding, says PM

With industry still uncertain about many aspects of the Goods and Services Tax (GST), Prime Minister Narendra Modi asked Chief Secretaries to rope in district administration to help small traders. “The Prime Minister urged the Chief Secretaries to use the district administration, so that small traders are facilitated to access and adopt the new system (GST),” said an official release after the 22nd PRAGATI meeting on Wednesday. The Prime Minister said traders across the country are positive and are accepting GST but need hand-holding to resolve their problems. He also stressed that small businesses must register with the GST Network, to take advantage of business opportunities. “The common man and the trader must benefit from this path-breaking decision,” he said. The Prime Minister had also raised the issue at the Rajaswa Gyan Sangam earlier this month. Since then, the Central Board of Excise and Customs is also working on a strategy to bring exempt businesses with an annual turnover of less than ₹20 lakh under GST through a simpler compliance mechanism and more awareness. Nearly one crore businesses have now registered for GST as against the initial target of about 70 lakh to 80 lakh assessees. Meanwhile, the Prime Minister also called for sustained efforts to boost digital payments and work towards a less cash society. He also asked Rajiv Kumar, Secretary, Financial Services, to explore ways to increase the use of RuPay debit cards that have been issued to Jan Dhan account holders. According to official data, of the 30.26 crore beneficiaries under the Pradhan Mantri Jan Dhan Yojana, 22.81 crore have been given RuPay debit cards. The Prime Minister also reviewed the progress towards handling and resolution of grievances related to the banking sector. He also reviewed the progress of nine infrastructure projects in the railway, road, power, coal and gas pipeline sectors, spread over several States including Telangana, Karnataka, West Bengal, Manipur, Mizoram, Kerala, Tamil Nadu, Chhattisgarh, Jharkhand and Delhi. The India Myanmar Friendship Bridge was also reviewed. “These projects are cumulatively worth over ₹ 37000 crore,” said the release. With just 10 States showing interest in the Government e-Marketplace, the Prime Minister also urged Chief Secretaries to explore its use as it would minimise leakages and delays. CAIT’s plea.Meanwhile, the Confederation of All India Traders has asked the government to extend the deadline to file details of stock held up to June 30. While the original deadline is September 30, the CAIT, in a letter to Finance Minister Arun Jaitley, has said the dateline should be extended till March 31, 2018. According to the GST rules, registered traders have to file details of the stock held by them up to June 30 to claim input tax credit for the pre-GST regime. However, CAIT said that traders have been busy in filing monthly returns of GST, returns for income tax and Registrar of Companies.

Source: Business Line

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GST Council’s co-convener’s visit fails to impress textile, diamond sectors

Surat: The visit of GST Council's sectoral committee co-convener Yogendra Garg in the city on Wednesday has failed to impress upon the leaders of diamond and textile sectors. Despite a series of representations by players of both the sectors to the central government and the GST Council over demands and challenges in implementation of GST, Garg refrained from giving any assurance on resolving the issues. While the diamond and textile sectors — the two key industrial sectors driving the economy of Surat — are puffed over implementation of GST, the central government deputed Garg to gather sense over the prevailing situation in both the sectors on Wednesday. Garg said, "We are examining GST rate structure issue faced by the sectors. Uniform rate structure is difficult. We are also working on technical problems in GST portal. Also, the council is thinking positively on refund of input tax credit (ITC) after October 10." A meeting of the textile industry leaders from the power loom sector, textile dyeing and printing mills, traders etc was organized at the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to discuss the problems and challenges faced by the trade on GST. Federation of Indian Art Silk Weaving Industry (FIASWI) represented a slew of demands for the textile sector for effective implementation of GST. The demands included opening stock credit on MMF and fabrics, imposing additional non-modvatable taxes on fabrics imported from China and other countries, level playing field for MSME and integrated units under GST regime. Removal of differential or inverted duty structure to increase export through merchant exporter, GST credit on machinery for textiles, non-clarity on income tax applicability on non-refundable accumulated ITC and the exemption range for e-way bill to be extended up to 50 km and others. On the other hand, Gems and Jewellery Export Promotion Council (GJEPC) raised issues concerning the trade, including the supply of diamonds, from a branch in Surat to the same branch in Mumbai and liable for 3% GST rate.

Source: Times of India

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Economic downturn has ended, more growth in 2 quarters: Niti Aayog

Niti Aayog vice chairman Rajiv Kumar today said the economic downturn which began in the last two years of UPA II regime has bottomed out and the growth will improve in the next two quarters. Kumar also admitted that there have been problems on account of demonetisation and Goods and Services Tax (GST) implementation but now people have adopted to the new tax regime. "...this downward cycle of economic growth began in the last two years of the UPA II government and that downward cycle in my view has bottomed out. "We will be achieving higher growth in the next two quarters, and I think 2018-19 will be much better than the current year (in terms of economic growth)," he said at the AIMA diamond jubilee convention here. India's economic growth has slipped to a three-year low of 5.7 per cent in the first quarter of the current fiscal. The Niti Aayog vice chairman also pointed out that in manufacturing and services PMI, the lowest point reached in July and therefrom it has started rising. Kumar noted that historically countries which have adopted GST have all seen some decline in the growth rate because the system struggles to come to new norm. "This formalisation of economy is going to take some cost," he observed. Applauding Modi government's performance, Kumar said India has attracted foreign direct investment (FDI) worth USD 250 billion in the last three years. He also said Indian industry must serve national interest and not only interest of some segments of the society. Kumar also emphasised on the need of creating trust between government and industry. Noting that Indian industry must embrace global cutting edge technology, the Niti Aayog vice chairman said one should think at global level and not just for domestic consumers. He also suggested that Niti Aayog work more with states. Earlier speaking at the same event, Niti Aayog CEO Amitabh Kant said India cannot grow without gender parity as currently only 24 per cent of GDP comes from women. Kant also said it is important to have consistency and predictability in government policies.

Source: Money Control

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CM Devendra Fadnavis in South Korea: Maharashtra taps FDI in low-cost housing and textile parks

Describing the meeting as “very good and positive”, CM Devendra Fadnavis said, “We emphasised on strengthening the financial collaboration between South Korea and India, particularly Maharashtra, by working closely on mega infrastructure projects.” Another area that elicited positive response, according to the CM, was promoting partnership and investments in textile parks. Fadnavis expressed satisfaction over the interest shown and commitments made by the South Korean leader in joining hands with Maharashtra in development projects. The state has launched 14 textile parks, especially in the cotton growing belt of backward Vidarbha and Marathwada regions. The government is keen on foreign direct investment (FDI) in the sector being promoted as ‘Farm to Fashion’. “Maharashtra contributes about 11.4 per cent to India’s textiles and apparel output and is the second largest employer in Maharashtra, contributing 28 per cent of India’s total exports. The Textile Policy of Maharashtra 2011-17 emphasises establishing processing units at various levels for the assured long term development, expansion of the textile industry and growth of employment in the state,” said a senior secretary-level officer in the government. Earlier, Fadnavis met the chairman and chief executive officer of Land and Housing Corporation Park, Sang-woo, to discuss low-cost housing projects. Under the affordable housing for all scheme, Maharashtra has made commitment to build 10 lakh houses in urban and 12 lakh in rural areas. The government believes opening low-cost housing to global partners would bring in healthy competition and also ensure greater transparency and innovation. Fadnavis also met Hyosung Corporation president H S Cho and Industrial Materials Performance Group vice-president You Sook Chun. Hyosung, a leading chemical and technological textile company, has expressed interest in investing in Spandex Manufacturing for the textile sector. Fadnavis also held a meeting with with Daewoo Engineering and Construction Company (construction convergence innovator) president and CEO Song Moon Sun, urging it to explore investment opportunities in Maharashtra. At the meeting POSCO managing director Oh In-Hwan, Fadnavis held deliberations on expediting the projects. The Maharashtra government has already signed two MoUs with POSCO. Giving details about the project, the CMO said, “POSCO has two units at Vile Bhagad and Talegaon in Maharashtra. The company manufactures and sells steel rolled products.” Later in the evening, the delegation met Soo-Hyun Jung, president and CEO, Hyundai Engineering and Construction, and urged the company to invest in the Samruddhi Corridor and the Bandra-Versova Sea Link projects. The CM urged LG Solar Energy to consider investments in solar agriculture feeder project in Maharashtra. Fadnavis also led the delegation to Songdo Smart City to study the public-private partnership model of development.

Source: The Indian Express

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Patanjali textile will break stronghold of foreign textile manufacturers: Baba Ramdev

ALWAR: After the formidable success of Patanjali ayurvedic and herbal household products in the Indian market, Baba Ramdev and Acharya Balakrishna's Patanjali Ayurved Ltd is all set to venture into textile manufacturing. "Patanjali will soon get into garment and textile market and break the stronghold of foreign manufacturers," Baba Ramdev said during the inauguration of Patanjali Gramodhyog in Alwar. "Patanjali will make everything from underwear to ethnic and sportswear soon" he added. In a recent survey, CEO of Patanjali Ayurved Ltd, Yogi Balakrishnan, was named the eighth richest Indian. On this, Baba Ramdev said that the profit earned by Acharya Balakrishnan is for helping the needy and not for luxury. Baba Ramdev aims to make people of India get rid of foreign products and shift to 'Swadeshi' (Made in India), manufactured goods by Patanjali.  Earlier, Spokesperson S.K. Tijarawala, said that Patanjali will be launching its line of 'Swadeshi' apparel, with an initial sales target of Rs. 5, 000 Crore, Through this new venture, the company aims to bring a good quality of clothes to the masses, including knitwear and denim. While the official brand name of the line is yet to be revealed.

Source: Economic Times

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India to launch its own branded cotton

Following the success of branded cotton from Egypt and the US, the government is considering branding of the locally produced fibre to fetch premium prices from overseas importers. Textiles Commissioner Kavita Gupta has held several rounds of meetings with various stakeholders of the industry, including traders, ginners, textile mills and garment manufacturers, to draft guidelines for revising the “Technology Mission on Cotton” (TMC). The revised TMC will allow exporters to improve the quality of Indian cotton, with less contamination, trash and staple length in the raw fibre, almost similar to Egyptian and US cotton currently available. Apart from that, the TMC will also accommodate ‘contract farming’ in cotton for commercial purposes. Introduced in 2000, the TMC was aimed at improving the yield and quality of cotton through the use of improved seeds and integrated water, nutrient and pest management technologies. The existing TMC, however, has missing pieces such as enabling provisions for ‘contract farming’ and branding which, experts feel, are needed for better realisation in export markets. “Both the Egyptian and US cotton fetch premiums over the conventional fibre from the same country in import markets, including India. Despite our cotton having better quality and a huge potential for fetching a higher price, the lack of a branding initiative has yielded lower income for Indian farmers and traders. Hence the government is in the process of revising the TMC to accommodate branding of cotton and also contract farming of the natural fibre. Several rounds of meetings have been held with the Ministry of Textiles and the guidelines for the ‘Indian cotton’ brand are currently under way. The Textiles Commissioner is heading the entire process. We will see ‘Indian cotton’ soon on the lines of Egyptian and US cotton,” said Ujwal Lahoti, chairman, The Cotton Textiles Export Promotion Council (Texprocil). “Many corporates are interested in cotton contract farming. But, they are waiting for enabling regulations. The revised TMC is expected to allow large corporates to invest in cotton contract farming with twin benefits: assured raw material supply and consistent income for farmers,” he added. Lahoti also said Vardhman Textiles has made a beginning with contract farming and has been growing cotton for captive consumption in some areas in Rajasthan. Under contract farming, seeds and fertilisers are normally supplied by the corporate concerned. Along with assured supply of raw materials, corporates also provide advisory services and required markets for selling the produce. Farmers, meanwhile, have to dedicate their land and labour to receive an assured annual income from their produce. The ownership of land, however, remains with farmers. Meanwhile, the textile industry in India has seen a sharp change in duty structure since the implementation of the goods and services tax (GST) on July 1. In contrast to the pre-GST era when companies had the option to choose drawback rates either under a Cenvat or a Non-Cenvat scenario, in the GST regime only one drawback rate is applicable as companies will now claim input tax credit. For instance, cotton bed linen earlier attracted a drawback rate of 2 per cent if Cenvat was availed and 7.5 per cent if Cenvat was not availed. Now, only one drawback rate of 2 per cent is applicable. Therefore, companies will claim the input tax credit paid and receive the drawback. “Earlier, companies generally chose the Non-Cenvat route as the drawback rate exceeded the implied taxes paid in the system. However, in the current scenario of claiming input tax credit and receiving the revised duty drawback, the portion of additional benefit will no longer be available. Therefore, the additional benefit over and above taxes to the tune of 1.5-2.5 per cent will no longer be available, resulting in a direct negative impact on textile companies’ margins,” said Nihal Mahesh Jham, an analyst with Edelweiss Securities. In 2016-17, exports of cotton textiles from India declined by 2.37 per cent to a level of $10.70 billion from $10.96 billion in the previous year.

Source: Business Standard

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White Gold crash: Cotton sours Punjab farmers’ hopes

Banwari Lal’s disappointment is obvious from his face. Sitting on a charpoy beside a heap of narma/kapas (raw un-ginned seed-cotton) at the Abohar mandi in Punjab’s Fazilka district, the 50-year-old recounts bringing his crop earlier in the day. After waiting for two hours for his 15 quintals produce to be auctioned, he had to settle for a rate of Rs 4,285 per quintal. Last year, the same traders had quoted between Rs 5,700 to Rs 6,200 for the narma lots that he had brought at different times. “How can prices go down like this? We grow based on what we got last year. Shouldn’t the government have some mechanism to prevent such wild price fluctuations, which adds to our debts? Selling at below Rs 5,000 per quintal is a big loss and we don’t want any loan waivers,” says this farmer who owns 15 acres at Khippanwali, a village not far from Abohar town. Last year’s good realisations had led Banwari Lal to increase his narma area from four to seven acres, while dedicating the remaining eight acres to paddy. “I’m worried because there is more crop to sell from the next couple of pickings. The traders say prices could come down further,” he sighs. Harvesting and marketing of cotton in southwest Malwa belt — mainly Fazilka, Muktsar, Bathinda, Faridkot, Firozpur, Moga, Mansa and Barnala districts — started just over a week back, with the first pickings completed. Farmers here harvest between 10 to 14 quintals of narma over three pickings. Currently, the 25-odd cotton mandis in Malwa are receiving 1,000-3,000 quintals daily, with arrivals peaking after October 15. Punjab expects to produce 12.5 lakh bales (of 170 kg each, in terms of lint or the white fibre obtaining after ginning) this year, compared to 8.90 lakh bales in 2016-17. “Higher production is bad news for us, though the traders are attributing the lower rates also to GST (goods and services tax). We don’t know whether they are telling the truth,” complains Resham Singh from Kundal village in Abohar tehsil, who, too, realised only Rs 4,265 per quintal for the three quintals that he sold on Tuesday. Singh farms seven acres, of which two acres he has leased for an annual rent of Rs 80,000. With Rs 6-lakh of outstanding loans against him, his message is the same as Banwari Lal’s: “Saanu apni fasal di kimat de dave sarkar, karja asin aape dekh lawange (let the government guarantee us a proper rate, we’ll take care of our debt)”. Around 80 km away, the scene at the Bathinda mandi is no different. Here, too, narma is quoting in the Rs 4,200-4,300 range. Sikander Singh, who grows cotton on his entire 3.5 acres land at Phus Mandi village near Bathinda, has received not even that. “The traders paid Rs 3,940 per quintal, saying that my crop had excess moisture. Now, was it my fault that it rained just when the first picking had started? We have no control over nature. Shouldn’t the government help us in such situations?” he asks, guarding his just-sold eight quintals. The farmer has the responsibility to look after his narma till the time it is lifted by the arhtiya (commission agent) or trader who has placed the winning bid. Cotton prices have witnessed wide oscillations in the past five years. In 2012-13, Punjab’s farmers got Rs 3,500-4,000 per quintal, which rose to Rs 4,500-5,100 in the following two seasons, only to crash to Rs 4,200-4,300 in 2015-16. Last year, the ratestouched Rs 5,700-6,200 per quintal. But now these are back to Rs 4200-4,300 or just around the minimum support price of Rs 4,220 per quintal. The state-owned Cotton Corporation of India is supposed to purchase from farmers when market prices fall below that rate. “The mandi officials are equally responsible. They just sit in their office and hardly check what’s going on in the mandi, because of which traders do whatever they want. At the time of weighing, they give all kinds of reasons, from high moisture content to short fibre length, to bring down rates”, alleges Balwinder Singh, a 10-acre farmer from Katar Singhwala village in Bathina, who has so far sold 15 quintals at Rs 4,250/quintal. Traders, however, blame the current prices mainly to a bumper crop. “Our mandi alone is likely to see arrivals of around three lakh bales this year, when these had not crossed even two lakh during the last five years. Also, narma realisations depend not just on the rates for lint, but also for seed. Cotton-seed (used in extraction of oil) is now selling at Rs 1,800-1,900 per quintal, whereas these were Rs 2,800 last year”, notes Anil Nagori, president, Abohar Mandi Arhtiya Association. But Suresh Kumar Gupta, managing director of Punjab Spintex Limited, a Bathinda-based cotton yarn manufacturer and exporter, has another explanation for the sharp fall in narma prices. That has to do with the Centre’s decision to slash the duty drawback rate for cotton garments from 7.7 per cent to 2 per cent with effect from October 1. “The bumper cotton crop from Punjab gave us hope of great business this year. The new rates (basically a refund of duties on imported inputs used for exports) are nothing short of a surgical strike on the domestic garment industry by the Narendra Modi government”, claims Gupta. According to him, kapas rates had started at Rs 4,900/quintal a week ago and the fall thereafter is at least partly on account of the reduction in drawback rates for garment exporters. It has, in turn, translated into lower demand for kapas. “The drawback was an incentive, especially when our garments attract 10-12 per cent import duty in both Europe and the US, whereas the Bangladesh is able to export to the former and Pakistan to the latter at zero duty”, he adds.

Source: The Indian Express

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Rain hits cotton, onion crops

Standing crops on hundred of acres of land were destroyed due to rain that was accompanied by thunderstorm in Raichur district on Monday evening. According to sources, cotton, green chilli and onion crops on hundreds of acres of land in Ashapur, Udamgal, Khanapur and Jalibenchi in Raichur taluk have been destroyed. However, officials of the Agriculture Department have denied any such extensive damage caused to crops. Kiran Kumar, Joint Director of the department, said that cotton in around 40-50 hectares suffered a little damage but not completely destroyed. Officials have said that the damage was less than 20 % and it could not be considered for compensation.

Source: The Hindu

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Training in garment manufacturing

The MSME Development Institute, Chennai, and Tiruchi District Tiny and Small Scale Industries Association will conduct an entrepreneurship skill development programme in garments manufacturing in Tiruchi from October 3.The 30-day camp is open to candidates in the age group of 25 to 35 with a minimum qualification of a pass in SSLC. Preference will be given to candidates from backward and SC communities and women. The programme will cover types of threads, stitches and finishes, types of fabric, measurement charts, pattern-making, cutting and stitching. Interested persons can apply with two passport size photographs at the TIDITSSIA office at Ariyamangalam in the city. For more details, dial 0431-2440119 or 2440114, a press release said.

Source: The Hindu

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Local apparel brands like Mandhana Retail, Flying Machine bet on small towns

NEW DELHI: Amidst an increasing number of urban customers switching their wardrobe choices to global brands like Zara, Hennes & Mauritz, Forever 21 and the likes and the rising competition from global labels is prompting Indian companies to create new brands that are primarily focused on Tier II and III markets. Manish Mandhana, whose company Mandhana RetailBSE 0.07 % markets Salman Khan’s brand Being Human, had two years ago started a brand Breakbounce for the youth in Tier II and III. “It is targeted at the youth in Tier II, III markets who are becoming very fashionable,” Mandhana said adding that almost 70% of Breakbounce’s sales come from smaller cities. Smaller towns and cities are home to a chunk of India’s youth and they are exposed to global fashion, thanks to heavy penetration of internet and mobile phones. Also, the rapid growth of e-commerce is helping customers in smaller towns to keep pace in fashion with their counterparts in metropolitan cities like New Delhi and Mumbai. Furthermore, the supply of better retailing infrastructure is now allowing brands to add outlets in smaller towns. Sri Lankan intimate-wear brand MAS Brands, which sells high-end lingerie products under Amante label, is now enticed by the prospects in small towns of India and is foraying into an affordable segment to cater to the needs of the customers in Tier II and III cities. “Every woman has a right to wear good lingerie and so we are extending an affordable line,” said Smita Murarka, head of marketing MAS Brands. Arvind Brands’s Flying Machine sells in all cities of Rajasthan, Uttar Pradesh, upcountry in Maharashtra, West Bengal, Tamil Nadu, Andhra Pradesh and others. Now, Flying Machine is also expanding its foot print in Bihar, Jharkhand and other states. “Now the preference for brands is Tier II and III cities. These are cost effective markets where demography is better. We have the largest distributions in Tier II and III cities. In fact Flying Machine has presence in Tier III IV also,” said Alok Dubey, CEO, Lifestyle Brands Division, Arvind Brands. On top of that there is no competition from global brands like Zara, H&M and the list of influx of foreign labels is ever increasing as Japan’s Uniqlo, US-based Ralph Lauren and Abercrombie & Fitch among others are readying for India foray. “Tier I business is becoming very competitive as there are lots of big global players and it is not easy to break into Tier I markets. So we see growth in Tier II and III,” Mandhana of Breakbounce said. Reliance Retail also plans to open stores in more small cities and towns over the next year under aggressive expansion targets, its chairman Mukesh Ambani said during the latest annual general meeting. According to consultancy firm CBRE’s report on India’s “Organized Retail Market” released earlier this year, retail market is expected to grow to $1.1 trillion by 2020 driven by income growth, urbanisation and attitudinal shifts.The organized retail sector which is estimated to reach approximately 18-20% of the total sector, by 2020, is growing at a high rate of 20-25% per annum.

Source:  The Economic Times

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Global Crude oil price of Indian Basket was US$ 57.18 per bbl on 26.09.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 57.18 per barrel (bbl) on 26.09.2017. This was higher than the price of US$ 56.42 per bbl on previous publishing day of 25.09.2017. In rupee terms, the price of Indian Basket increased to Rs. 3735.95 per bbl on 26.09.2017 as compared to Rs. 3657.92 per bbl on 25.09.2017. Rupee closed weaker at Rs. 65.34 per US$ on 26.09.2017 as compared to Rs. 64.84 per US$ on 25.09.2017. The table below gives details in this regard:

Particulars

Unit

Price on September 26,  2017 (Previous trading day i.e. 25.09.2017)

Crude Oil (Indian Basket)

($/bbl)

             57.18          (56.42)

(Rs/bbl)

            3735.95        (3657.92)

Exchange Rate

(Rs/$)

             65.34           (64.84)

 

Source: PIB

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Global Textile Raw Material Price 2017-09-27

Item

Price

Unit

Fluctuation

Date

PSF

1353.52

USD/Ton

0%

9/27/2017

VSF

2435.58

USD/Ton

0%

9/27/2017

ASF

2412.96

USD/Ton

0%

9/27/2017

Polyester POY

1274.34

USD/Ton

0%

9/27/2017

Nylon FDY

3317.82

USD/Ton

0.46%

9/27/2017

40D Spandex

5730.78

USD/Ton

0%

9/27/2017

Polyester DTY

1643.83

USD/Ton

-0.46%

9/27/2017

Nylon POY

3378.14

USD/Ton

0%

9/27/2017

Acrylic Top 3D

5700.62

USD/Ton

0%

9/27/2017

Polyester FDY

1530.72

USD/Ton

0%

9/27/2017

Nylon DTY

2986.04

USD/Ton

1.02%

9/27/2017

Viscose Long Filament

2563.77

USD/Ton

0%

9/27/2017

30S Spun Rayon Yarn

3031.28

USD/Ton

0%

9/27/2017

32S Polyester Yarn

2035.94

USD/Ton

0%

9/27/2017

45S T/C Yarn

2880.47

USD/Ton

0%

9/27/2017

40S Rayon Yarn

2171.66

USD/Ton

0.70%

9/27/2017

T/R Yarn 65/35 32S

2428.04

USD/Ton

0%

9/27/2017

45S Polyester Yarn

3197.17

USD/Ton

0%

9/27/2017

T/C Yarn 65/35 32S

2428.04

USD/Ton

0%

9/27/2017

10S Denim Fabric

1.42

USD/Meter

0%

9/27/2017

32S Twill Fabric

0.88

USD/Meter

0%

9/27/2017

40S Combed Poplin

1.22

USD/Meter

0%

9/27/2017

30S Rayon Fabric

0.68

USD/Meter

0%

9/27/2017

45S T/C Fabric

0.72

USD/Meter

0%

9/27/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15081 USD dtd. 9/27/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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China’s Beige Book warns of 'darker story' ahead for economy

Although this year still looks “far better” than the past two years, faltering demand signalled by a reversal of the five-quarter commodity rally may be in store for 2018, according to the private survey released on Wednesday by CBB International. The study collects anecdotal accounts from more than 3,000 firms in a format similar to the US Federal Reserve’s Beige Book. President Xi Jinping has been overseeing a reassertion of control over the economy and financial system this year, in the lead-up to the twice-a-decade Communist Party leadership gathering scheduled to convene next month in Beijing. China’s mortgage debt bubble raises spectre of 2007 US crisisWith some track record in calling pivot points, the Beige Book report said its survey evidence raised questions about some of the key perceptions about the economy’s progress. The evidence indicates that capacity cuts in steel and other commodities are not happening in reality; corporate borrowing continues to rise and that deleveraging is a myth. It also suggests the economy is not rebalancing towards services from manufacturing and China is not reflating in the sense of faster growth, although profits are up. “With the Communist Party Congress just weeks away, leadership can breathe easy,” CBB president Leland Miller and chief economist Derek Scissors said in the report. “The worry is not how the economy is faring now, but where it is headed. Beneath substantial accomplishments lies a potentially darker story for 2018.” CBB said in its previous report that China’s economy remained strong in the second quarter as the Communist Party sought to prevent any pain ahead of the congress. Policy support, a lack of shocks, and the looming political transition offered a best-case scenario for the economy, they said. Between the market and the party, are China’s reforms moving in the right direction? Interest rates jumped and borrowing slipped in the second quarter, but that amounted to slower credit growth, not outright deleveraging, CBB said in the report. In the third quarter, companies borrowed at the second-highest rate in four years, as borrowing costs “nosedived nationally to accommodate”, CBB said. Corporate borrowing remains robust and deleveraging isn’t yet taking place, according to the report. “Deleveraging hasn’t gotten off the ground,” Miller and Scissors wrote. “The pain from any true deleveraging lies ahead. And that leaves 2018 hanging in the balance.” Beijing tries to win over entrepreneurs with praise and promisesWhile China has said it is cutting excess capacity – which has boosted metals prices – CBB’s survey shows capacity expanded marginally in the third quarter after spiking in the April to June period. “Markets also need to be reminded that capacity cuts are only the first step,” they said. “The payoff is supposed to be lower output, which is nowhere in sight.” Labour force growth accelerated, with nearly half of the firms adding workers and almost none cutting jobs. That’s a positive before the congress because “if policymakers want to make sharp changes, wise or unwise, they can do so with less political risk,” the analysts said.

This article appeared in the South China Morning Post print edition as: ‘Darker story’ ahead after robust 2017, study claims

Source: South China Morning Post

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Indonesia : Textile exports hit US$7 billion in first half

The export value of textiles and their related products reached US$7.12 billion in the first half of 2017, a 2.71 percent increase from the corresponding period last year. Industry Minister Airlangga Hartarto projects that by the end of this year, the export value of textiles will reach $12.09 billion. “The increase in exports and domestic demand is indicated by the increase in production activity,” said Airlangga while visiting a garment factory owned by PT Delami Garment Industry in Bandung, West Java, on Tuesday as reported by Antara. He said his ministry supported the textile industry – one of the country’s strategic sectors -- by facilitating smooth logistics access and strengthening local brands through establishing cooperation with international organizations, including with the World Intellectual Property Organizational (WIPO). He said the textile industry had a great chance to develop because of the large domestic market and the potential for exports. “Therefore, this industry is set as one of the prioritized sectors in the 2015-2035 National Industry Development Master Plan,” Airlangga added. The government delineates the textile industry into three groups: First, the businesses that produce fiber. Second, the businesses that spin, knit, weave, dye, print and finish products. Third, the businesses that produce garments and other textile products. (bbn)

Source:  The Jakarta Post,

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Nigeria : RMRDC exposes cotton farmers to best practices

The Raw Materials Research and Development Council (RMRDC) has begun intensive training for registered cotton farmers in the South-West, North-East and North-West zones of the country. The training, according to the council, was for farmers to adopt global best practices which can make the production system and products globally competitive. The Director-General of RMRDC, Dr. H. D. Ibrahim, who addressed the farmers at the venue of the South-west training centre in Ibadan, lamented that Nigeria’s over reliance on imported raw materials and products has led to the non-development of the country’s raw materials’ base for the textile industries. Ibrahim, whose speech was delivered by Dr. G.G. Awolehin, said there was need for a holistic policy thrust and action agenda to develop and harness the natural and synthetic fibres potentials of the country in view of the vast land available for cultivation of a wide range of agricultural raw materials and its natural gift of petrochemical resources. He said in an effort to boost cotton crop productivity in the country, the council had between 2015 and 2017 distributed about 14 tonnes of improved cotton seeds of different varieties to cotton farmers nation-wide. “We are concerned that there is the need to continue the boosting exercise so that raw materials could be available for textile industries. The cotton production is still a far cry from the capacities of the ginning companies which is put at about 650,000 metric tonnes of cotton while production is still below 70,000 tonnes,’’ he said. The D-G noted that one of the critical factors towards achieving improved and high quality yield of cotton is the adequate and up-to-date training of the farmers who cultivate and handle the commodity from planting to harvesting. He expressed optimism that the training would have a long lasting positive effect on the total output of cotton in the present planting season. Pastor Adebayo Olayemi, who represented the President of the National Cotton Association of Nigeria (NACOTAN), commended RMRDC and the Institute of Agricultural Research in Zaria, for providing cotton seeds as well as training for cotton farmers in the country. In his address, the Permanent Secretary, Oyo State Ministry of Agriculture, Mr. V. A Atilola, enumerated major constraints facing cotton farmers in the country to include lack of fertiliser, absence of frequency of spray, market opportunities, inadequate knowledge of the production packages as well as non-availability of technology. He said the state is determined to boost production of crops, especially the ones it has comparative advantage in. Some of the farmers, who participated at the training commended the RMRDC for its interest in developing cotton production in Nigeria, assuring that they would make good use of the knowledge gained from the training. The training has its theme as ‘Capacity Building Training for Cotton Farmers on Appropriate Agronomic Practices for Cotton Production’.

Source: The Daily Trust

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Iran : Int’l Textile Machine Manufacturer Holds Event in Yazd

Santex Rimar signed an agreement with Yazd University for supplying a SMIT rapier weaving machine with the aim of training students on the latest textile technologies and undertake joint research. Santex Rimar Group, a leading machine manufacturer for weaving, textile finishing, nonwovens, technical textiles and green technologies, has held a second “Future Textile Road” event in Iran to underline its commitment to the development of domestic textile industry. The event drivers are research, dialogue and intercultural cooperation, open innovation and new technology implementation, Innovationintextiles.com reported without specifying when the event was held. The event was held in Yazd where a branch of the Silk Road skirts the western and southern edges of Iran’s central desert. “Yazd can be called Iran’s textile industry hub: Textile industry in this province includes about 10% of the total spinning capacity and a quarter of total weaving capacity in the country,” the group, which is present in Italy, Switzerland, China, India and Turkey, reported. According to Santex Rimar, the aim of “Future Textile Road” is to build an innovative platform for the future development of the global textile industry and the long-term construction of the cooperation between countries. During the event, Santex Rimar signed an agreement with Yazd University for supplying a SMIT rapier weaving machine to train students on the latest textile technologies and do research jointly. Contents shifted from the relationship between university and local textile companies to financial tools for Iranian entrepreneurs who want to buy equipment–from the latest developments of SMIT to the trends of fabrics design of Spring/Summer 2018. “At the time of the Mughal and the Safavid, Yazd people were one of the main weavers and producers of fabric in our country, and these products can be seen in the great museums of the world. SMIT has been present in the country for 40 years and today counts more than 3,000 installed machines–1,000 in Yazd area only,” SMIT customer, Reza Soltani, said. Smit Textile S.p.A. offers machinery products for the textile industries, including parts, attachments and accessories. It markets its products in Italy. Since April 2016, SMIT officially entered among Santex Rimar Group’s brands. “Future Textile Road” surveyed exchanges between East and West, and between Persian textile trends and Italian technology.

Source: Financial Tribune

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Extent of Irma's damage to cotton still not known

MOULTRIE, Ga. — It’s an old saying that the proof is in the pudding. For cotton growers, in the coming days and weeks the proof is going to be in the picking. That’s when the verdict will come in on what impact Tropical Storm Irma’s heavy winds and long duration had on what farmers three weeks ago were looking to be a bumper crop. Cotton that had been stripped of leaves by defoliant for imminent picking prior to the monster storm’s rampage was hard hit. Tests by the University of Georgia conducted in the days after the storm indicated that losses could be in the range of 200 to 400 pounds of lint lost per acre. A good cotton yield is about 1,500 pounds per acre. And plants with bolls still intact had their stems twisted and beaten down by the pounding winds. Bolls beaten to the ground are prone to rot, and harvesting the crop of mangled stalks may prove difficult. “The later planted cotton, it’s going to be hard to tell,” said Colquitt County extension agent Jeremy Kichler. “We did have a lot of cotton twisted up. The later stuff, we’re going to have to wait and see. There’ll definitely be some challenges in the next few weeks.” Colquitt County growers planted about 48,000 acres of cotton in 2017. Pecan trees also took a beating, with significant limb breakage and young nuts knocked out of trees in heavy numbers. Growers in the county have about 1,600 acres of pecan trees, Kichler said. Peanuts, of which farmers planted 30,000 acres, were not significantly affected. For pecan growers, there may be federal funds available to help in the cleanup of debris, Kichler said. “We strongly encourage pecan growers to touch base with their FSA offices in their respective counties,” he said. For the county as a whole, there was no reported damage to governmental buildings, bridges or county roadways, said Russell Moody, Colquitt County emergency management director. At least 15 homes and businesses had damage, he said. “I haven’t got a total of that yet,” he said. Damage to houses ranged from metal roofs blown away or shingles stripped by the wind to houses on which trees fell. Moody reminded residents that the county’s garbage service does not pick up trees and limbs piled by the roadway. To get rid of that debris, they will either have to take it to the landfill or burn it after getting a permit from the Georgia Forestry Service. The City of Moultrie garbage service does pick up yard debris, and City Manager Pete Dillard said last week that it would probably take six to eight weeks to clean up all the debris the storm left in the city. During the Sept. 11 day of wind and its aftermath, no county residents died or were injured. On the day of the storm a Moultrie Fire Department firefighter had the wind blow a door at a station shut on his finger. And in the days afterward a Colquitt County Roads & Bridges Department employee injured his shoulder while sawing a tree. Moody attributed the lack of residential injuries during the storm to the work of everyone involved in emergency management as well as the first responders in the county and its municipalities. Colquitt EMC also responded to get power back on as quickly as possible, he said. “We’ve got a good group,” he said. “Everybody worked together across the board.” The year already has seen an active hurricane season with Category 4 Hurricane Harvey coming ashore in Texas on Aug. 25 and causing massive flooding, as well as Irma’s path of destruction through several island nations before pummeling much of Florida and Georgia in early September. On Sept. 20 Hurricane Maria hit Puerto Rico as a strong Category 4 storm after battering some of the islands that were pounded by Irma. The Atlantic hurricane season runs from June 1-Nov. 30, when powerful storms are most common, but they can occur before or after that time frame.

Source: The Moultrie observer

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Naturally Colored Cotton Could Regain Popularity as Companies Seek More Sustainable Solutions

It’s one thing to cultivate organic cotton and use more environmentally friendly dyes to color it, but if the cotton is never dyed at all, it could be entirely more organic. One way to avoid dying cotton? Grow it in color. Naturally colored cotton used to be part of farmers’ crop rotations until the trend toward the off-white type took over and farmers were asked—sometimes even paid—not to produce the colored variety. But Organic Cotton Colours is trying to bring naturally colored cotton back into fashion. The Spanish company is cultivating cotton that grows in natural colors like brown, green and taupe. Because the colors are natural, they are subject to emerge in varied tones and change color with washes and when exposed to the sun. The cotton comes from smallholder farms in Brazil, where every grower owns his or her own land and uses only biodynamic growing practices to produce the cotton. Cotton seeds are free from any genetic modification and the fibers are never dyed or chemically treated in processing. OCC says it uses just one washing process to remove the vegetable fats derived from the weaving process, nothing more. “We are used to having a fabric and giving it 20 to 40 different treatments,” Santi Mallorqui Gou said during a talk at Texworld Paris last week. From spraying to coating to softeners, anti-crease treatments, anti-microbial treatments, antiseptics and enzyme treatments, there’s so much added to fiber and fabrics during finishing stages. “All those processes have chemicals on them and how they interact we don’t know.” Taking its “only what’s natural” commitment through the entire process, Gou said only animals are used to till the fields, rather than machines and whatever pollutants they introduce, and only rainwater is used for cultivation. “It’s a completely pure, biodegradable garment,” Gou said. The company’s website goes on to add: “You can leave any of our products on the ground and it will end up completely decomposing and forming part of our planet once again.” Once OCC’s natural cotton is ready to be made into yarn, it gets imported to the company’s Barcelona spinning factory and then most of the yarn goes to Portugal where the fabric is made. The 20 percent of waste collected during the process—which consists of fibers that are too short to use for yarn—gets turned into paper or accessories for brands, ensuring the loop is completely closed. OCC cotton goes into fabric for men’s, women’s, children’s and baby clothing, plus bed linens and towels, intimates and mattresses. Because of its clean composition, Gou said garments made from the company’s cotton can protect sensitive skin from rashes, allergies, dermatitis and eczema, even helping wearers who suffer from fibromyalgia. The company has received GOTS (Global Organic Textile Standard) certification for every phase of its process, from spinning to weaving to manufacturing and distribution. Its OCCGuarantee label provides transparency for brands and ensures that the company has supervised the entire production process, from planting the seeds to manufacturing the garments. “In this way we obtain truly pure organic cotton in the natural colors of the Earth, purchased through fair trade, in complete harmony with the environment, and with the utmost respect towards the growers who tend the plants and the people who wear our clothing,” OCC notes.

Source: Sourcing Journal Online

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International Apparel Federation to open office in Pakistan

LAHORE: The International Apparel Federation (IAF) is going to open its first regional office at the Pakistan Readymade Garments Manufacturers and Exporters Assoication (PRGMEA) House in Sialkot where PRGMEA will also ink an MoU with the Dutch National Fashion & Textile Association Netherlands (MODINT) for the first time in Asia. The move seems a timely step considering Pakistan’s rapidly declining textile sector and its dwindling exports. Export package: Commerce minister assures textile sector of govt supportPRGMEA Central Chairman Ijaz Khokhar said that IAF President Han Bekke and Secretary General Matthijs Crietee will visit Pakistan to inaugurate the regional office and the newly-constructed PRGMEA office in Sialkot. He said that on the occasion the MODINT, which is the largest importers association of home textile, garments and textile, will sign a MoU aimed at enhancing trade of readymade garments between Pakistan and the Netherlands. Khokhar said that the establishment of IAF office in Pakistan will open new avenues for the textile industry to collaborate with international buyers and leading brands. “Besides granting domestic membership to garment manufacturers, this office will also help in arranging B2B meetings among importers and exporters of apparel sector across the world,” he said. Textile Industry: Minister allays officials’ concerns. He ensured that the IAF will address major issues being faced by the textile industry of Pakistan and bring those issues to limelight, including compliance, gender training and exchanges of delegations.

Source: The Express tribune

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Performance textile firm director calls for tests that reflect reality

In her key note speech at the 2017 Textile International Forum and Exhibition, Ardmel Group Director Arlene Kidd called for innovative testing that reflected the real-world conditions. Ardmel designs and manufactures performance clothing for recreational/sports use as well as for the military, police, security and rescue teams. In her speech, Kidd highlighted the importance of having a testing mechanism for performance textile that are based on reality. Using breathability as an example, Kidd pointed out that currently the most widely accepted standard, ISO 11092, does not put the textile to the test in real world conditions. The ISO 11092, which sets its test conditions at 35 degrees Celsius outside temperature and a relative humidity of 40 percent, cannot measure the performance of"breathable" textile in subzero winter temperature and snow/rain. The test, for example, does not address the problem of condensation building up inside the clothing with textile when temperature drops below 14 degrees Celsius, with makes the wearer fill wet and in more dangerous case, causes the clothing to freeze up. When the temperature is high, on the other hand, breathability can be reversed, drawing hot steam and vapour inside the garment, boiling the wearer. Kidd called for breathability tests in cold, wet and dry conditions that measure condensation within the garment the layers of a garment system. Kidd stressed that such tests can be life-saving as performance garments are used by many working extreme conditions. An India military serviceman caught in a mountain accident wearing Ardmel garment was able to survive for nine days under extremely cold temperature. While the serviceman died of other complications after he was saved, he did not suffer from any cold injuries, Kidd said. Had he worn garment that cannot prevent condensation, he would have died earlier of hypothermia. The problem with the current, however, is that standards committees are made up of test houses and large multinational firms that has prevented change, Kidd said. These committees pass test that geared toward the interests of large monopolies instead of the users, she pointed out. She called her the industry, the media and users to look beyond brand name products and brand name standards to recognize the importance of realistic tests. She suggested the innovators and businesses in Taiwan to embrace and even create alternative tests to better serve the users.

Source: The China Post

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We have moral obligation to revive Nigeria’s textile sector -WACOT MD

WACOT is a company which was founded in Nigeria in 1997. We started the company to enter into the cotton value chain but it is no more cotton only now, we have diversified from cotton value chain to all agricultural commodities. Today, it’s one of the top agricultural companies in Nigeria and the journey has been fabulous over the last 20 years. You recently inaugurated a rice mill in Kebbi State, have you started operations? The idea is we set the momentum because we invested in rice at the time the country was not going through a very good situation. All of us know about the Nigerian currency depreciating, country not doing well, inflation rising and no foreign direct investment was coming into Nigeria but we had faith and when the economic downturn was there in Nigeria, we were the only company that invested with the mandate from President Muhammadu Buhari, saying that we should eat whatever we produce. So, with that statement, the company invested money with the faith that agriculture would be the next saviour of this nation, and basically we had faith in the current government and we are getting support that was why we invested in the factory. Typical factories that take about 24 months to complete in Nigeria, we completed this factory within 15 months. After Mr. President’s assurance towards agriculture, this factory was conceptualised and came into reality within his tenure. We have put things into action and we have started producing and the rice is readily available for the market. So we are very happy to invest in the agricultural value chain. What is your company’s relationship with local farmers in Kebbi State? Typically, what we do in a rice factory means you have to secure your raw materials supply. What we try to do is to encourage farmers to grow more paddy or more rice and they can supply to our factories where we can process and we can supply to the Nigerian populace. So, we try to support all the state’s rice growing farmers; we try to put them into cooperatives, we try to give them quality inputs which are seeds, fertilisers and chemicals. We train them on best agricultural practices through farmers’ business school and apart from that, we buy back the produce from the farmers. So they get assured of a market and they are very happy and able to grow more paddy. In Kebbi, our factory can take almost 120,000 tonnes of paddy per annum and today through direct farmers’ production, we are getting about 20,000 tonnes, still a long way to go.

You are also into seed production, what kind of seeds do you have? Typically in the agricultural sector, seed is a major challenge; if you have quality seed, then your production and productivity can go up by 15% to 20%.So as pioneers of the agricultural sector in Nigeria, it is our moral duty to try and save the industry in the country. So we contact universities that have breeder seeds and the scientists that produce seeds. We take the breeder seeds and multiply those seeds under our technical supervision and try and make it into certified seeds and from there they go to the farmers. We try and do the seeds for all the major crops in Nigeria and we feel this is the way to make Nigeria a food secure nation. That is why you see our inclination towards producing maize and paddy: these are the two crops which would be feeding the nation. Apart from that, we try and produce seeds for cotton which is a cash crop for farmers. We produce sesame and soya bean seeds which are also cash crops for farmers. Going forward, we would try and venture into vegetable seed production. After we do food crops and cash crops then we would venture into that. We feel it is our moral duty to supply good quality seed to the Nigerian farmers, that’s why we are into seeds business. It’s more than five years now, we started in 2011. We have been supplying good quality seeds not only to our farmers, but also to other farmers in Nigeria.

When you started, you were mainly into cotton, what is happening to the industry? Are you still that involved with cotton? Yes. What happen is, you can see the downturn in the textile industry in Nigeria. In the 70s, Nigeria was booming with lots of textile factories, but over a period of time, I think we need to do more to make the Nigerian textile industry competitive in the global scenario which would take some time. Over time, if this is not happening, it means we are not able to do the backward integration into cotton which provides the raw material for the textile industries. Today, the total requirement of Nigeria’s textile industries is 15,000 tonnes to about 20,000 tonnes of cotton lint fibre per annum but the country produces far less now. Once there is a vibrant economy, cotton can then get a boost and by what we have seen, as champions of cotton, we have started revitalising our programme. This year we have done about 14,000ha of cotton under the cotton revival policy. We are known as a cotton company, so it is again our moral obligation to the country to revive the sector. We have done almost 10,000ha in Katsina State, about 2,500ha in Gombe State and about 1,500ha in Adamawa State. After successfully executing this, we’ll be scaling up the 14,000ha to 30,000ha in 2018. So we are championing the cotton revival in Nigeria. We would try and supply the local industry the raw material, if something is left over after, we don’t have any choice but to export it.

What are the challenges you face as a company?

You see, under this government, agriculture is much focused on and we are very happy about that. We are very happy with the way things are progressing, it would take some time as agriculture is a long term thing that cannot happen suddenly. But the journey has started, two years back. I think in another two-three years it would take us where we would see the benefit of the agriculture initiatives - what government is putting on the ground today. The major challenge we face in WACOT today is that we are creating and stabilising the database; we don’t have a very good farmer database available in Nigeria. We got the database from an association but we found that the database was 67% correct and 33% corrupted. Once we develop a very good database, then we’ll go at a faster pace. The second challenge is not for WACOT but basically the farmers don’t get access to finance. We talk a lot of things, this year at WACOT itself we have taken a N5 billion credit exposure on farmers against all odds. The general Nigerian farmers we know would definitely pay back, so I convinced my management that let us give N5 billion exposure. WACOT never took more than N300 million but this year we have taken N5 billion exposure. I convinced the management, I know once they see that we are successful the journey is on.

Source : PTI

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