Some rejig in the rate structure of the goods and services tax (GST) is required to reduce the burden on small and medium businesses, Revenue Secretary Hasmukh Adhia has said. The GST, which amalgamates more than a dozen central and state levies like excise duty, service tax and value-added tax (VAT), will take about a year to stabilise, he told PTI. “There is need for some rejig in rates... it is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance,” Adhia said. Nearly four months since its introduction, the new indirect tax threw up teething troubles and compliance issues, which the GST Council — the highest decision-making body of the new regime — has addressed through several rounds of changes. To ease hassles facing medium and small businesses in paying taxes and filing GST returns, it has tweaked various aspects of the new indirect tax regime to make it industry friendly. The turnover threshold for composition scheme, under which businesses can pay taxes at a nominal rate, has been hiked to Rs 1 crore from Rs 75 lakh earlier. Also, small businesses with up to Rs 1.50 crore turnover have been allowed to file returns and pay taxes quarterly, as against monthly earlier. Also, the GST Council has rationalised rates on over 100 commodities and made refund process easier for exporters. Adhia, however, said the rejig would require some calculations by the fitment committee, which will decide which items need a rationalisation of rate under the GST regime, which kicked in from July 1. The GST Council has already cleared an approach paper for items to be considered for rationalisation but it is not binding and the council can always make deviations from the approach paper. “We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, calculate revenue loss. They need various comparisons. But harmonisation has to be done,” he said. The 23rd meeting of the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising representatives of all states, would be held in Guwahati on November 10. When asked how much time it would take to stabilise the GST system, Adhia said: “It will take one year. Because it is a new system for everybody... There has been a complete overhauling of tax system in GST, so one year is needed. If you see the experience of VAT, there was opposition for one year. People were on streets because nobody knew what VAT is, the last fellow was only paying sales tax. There was more opposition that time than this.” The GST has subsumed over a dozen taxes and transformed India into a single market for seamless movement of goods and services. Introduced in 2005, VAT had replaced the earlier sales tax systems. VAT was a tax on sale or purchase of goods within a state and was levied by state governments.
Source: Business Standard
In some relief to exporters, tax officials have begun clearing pending refunds of Integrated Goods and Services Tax (IGST), albeit at a slow pace. According to official data, of the total IGST claim of ₹753 crore in July, only ₹132 crore were sanctioned for refund in the first 10 days. The slow pace of IGST refunds is significant given that the GST Council, in its last meeting, had announced that all pending refunds for July and August would be cleared at the earliest — those for July would start by October 10 and for August by October 18. The issue has now been raised by the Finance Ministry as well as exporters, who have urged tax officials to expedite refunds. “The Board is according utmost priority to the early sanction of the remaining export claims,” said Vanaja N Sarna, Chairperson, Central Board of Excise and Customs, in a recent letter to field formations, stressing that these must be cleared at the earliest. The matter is also understood to have been taken up by Revenue Secretary Hasmukh Adhia in a recent review meeting with officials. Adhia had earlier this month said that pending refunds to exporters would be cleared by November-end. About ₹67,000 crore has been collected as IGST from which refunds to exporters are estimated at about ₹2,000 crore for July and August. Exporters claim that the refund process is getting delayed at the field level. “Data at major ports such as Chennai and JNPT show that refunds are low. There are technical glitches that are creating problems,” said an industry expert. According to Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations: “The refunds are on the lower side of our estimates. We hope that all refunds for July and August will be cleared by the end of this month.” Though there is no GST on exports, exporters have to pay IGST, which is refunded. However, refunds were initially stalled due to procedural confusion, and exporters complained they were facing cash-flow problems. After a series of measures by the CBEC, a committee led by the Revenue Secretary also recommended some measures to the GST Council. Accordingly, the Council, in its meeting on October 6, relaxed norms for exporters.
Source : Business Line
As companies focus on the country’s biggest indirect tax reform — Goods and Services Tax (GST) — an old ghost of transfer pricing (TP) may come to haunt them in the coming years, warn tax experts. Transfer price is basically a price charged by a subsidiary or a division of a company to another. The rules suggest that there has to be an ‘arm’s length’ while fixing this price so that it’s not too low or too high than the existing open market prices. Tax officers can question and demand tax in case they suspect that companies are escaping taxes. Unlike the earlier tax regime, GST has something called an open market pricing for related party transactions. Many tax experts feel that currently, the valuation rules under GST and those for calculating transfer pricing are not harmonised, and this could lead to future tax demands. Due to open market pricing for the related party transactions, goods and services, whether cross border or domestic, would now be subject to specific valuation rules. There is still some confusion around whether the determination of open market pricing will be done based on the existing TP mechanism or whether different valuation rules would be framed, say tax experts. “Open market value may be required to be determined, although the current GST rules provide that where recipient unit is eligible for full credit, the value declared in the invoice shall be deemed to be open market value. The question is how to accommodate the timebased sensitivities of the transaction specific indirect taxes with the annualised pricing determinations of the income tax,” said Rakesh Nangia, managing partner of Nangia and Co. Transfer pricing disputes are mainly related to the calculation of profit made by MNCs and how they have been shifted to their parent companies. Many firms have gone to court, challenging the government’s transfer pricing calculations. Experts point out that indirect taxes are more time-specific — like time of supply is crucial –– and figures in valuation as well. Direct taxes work on the principleof aggregation — mainly based on the due date of annual tax return. Tax experts point out that it is possible that the same result can be reached under both tax systems with different approaches. “But harmony is not assured,” said a tax expert. While broader principles of valuations under the precise rules are yet to be decided. In the past three years, the tax department has gone out of its way to resolve transfer pricing issues. The tax department has been signing Advance Pricing (APA) with multinationals to avoid future transfer pricing disputes. APA is mainly an agreement between a tax payer - mostly multinationals — and the tax authority — CBDT in India’s case — where the transfer pricing methodology is determined. The methodology to calculate taxes could then be used for an agreed period of time on the tax payer’s future international transactions. While transfer pricing until now was only limited to multinationals, recent changes in the tax laws would mean domestic transactions would also come under its purview. With GST framework too dishing out valuation regulations for domestic transactions between related parties, tax experts fear that transfer pricing may find its way into several domestic situations.
Source: The Economic Times
In a veiled attack on the Opposition, Prime Minister Narendra Modi on Sunday warned ‘anti-development forces’ that they will not get any financial support from the Centre for public works. At a public rally in Vadodara on Sunday, Modi came down heavily on those mocking at his development model terming them anti-development forces, who (if they came to power), will not get any support from the Centre. Notably, Gujarat goes to the polls in December. Describing his concept of ‘development’, Modi said: “Development means making every penny accountable. Development can take place only if you utilise every penny for public welfare. Development is not siphoning off the money in the name of big contracts. In the past we heard of (corruption of) ₹1 lakh crore, ₹2 lakh crore through coal, 2G, helicopter, submarine and many more.” Taking a dig at the Nehru-Gandhi family’s Congress rule at the Centre, Modi said, “There has been a dislike for Gujarat in the past regimes. It was only when there was a favourable regime at the Centre, the State got some benefits. The State should take the advantage of a regime that has no dislikes about Gujarat or Gujaratis.” Modi recalled Sardar Patel’s support for Somnath Temple’s restructuring and the support the State got during the Prime Ministership of Morarji Desai. At the time of Atal Bihari Vajpayee’s rule, the State got crucial support from the Centre during the 2001 earthquake, he said. “After a decade and much toil, we have same party governments at the Centre and in State. Once again, we have a government that likes Gujarat and people of Gujarat should not lose this opportunity,” Modi told the gathering after launching public works and projects worth ₹3,600 crore. Earlier in the day, Modi launched the first phase of ambitious 31-km Ro-Ro ferry service connecting Ghogha in Saurashtra with Dahej in South Gujarat across Gulf of Cambay in Arabian Sea.
‘Economy on right track’
In his public address at Dahej, the Prime Minister rubbished the doubts raised by several economists about the strength of the economy. “Despite strict decisions and initiatives taken by the government, country's economy is right on track and is moving in the right direction. We must note that our forex reserves have increased from $300 billion to $400 billion in the past three years.” During the day-long visit to his home State — the 19th after assuming office at the South Block —the Prime Minister engaged with people during a 14-km roadshow in Vadodara, before leaving for Delhi.
Source: Business Line
Prime Minister Narendra Modi on Sunday asserted the process of taking “important decisions” regarding the economic reforms will continue. The assertion came at a time when the opposition parties have been attacking demonetisation and goods and services tax (GST) roll-out. On a day-long visit to Gujarat, Modi also reached out to traders, saying their past records would not be checked by the income tax department if they join the formal economy by getting themselves registered under GST. “After all reforms and hardcore decisions, the economy is on track and is going in the right direction,” Modi said addressing a rally in Gujarat. “Many economists have agreed unanimously that the fundamentals are strong,” he added. He was apparently answering critics who have been saying the economy is in bad state. Congress vice-president Rahul Gandhi had attacked Modi during his recent campaign tour in Gujarat, after the growth rate slipped to 5.7 per cent in the first quarter of 2017-18. Talking about GST, Modi said the number of traders joining the new indirect tax regime is increasing day by day. “In the last few months, 2.7 million additional people have registered themselves for this indirect tax. Tax rules, system, tax officials and even politicians are forcing them to do it,” he said. “I know those who are joining have fear that their past records will be checked. I assure you no tax officials will be allowed to open past records of those who want to come in the mainstream,” the PM declared. “GST has eliminated check posts on borders. Trucks do not have to wait for days and corruption at checkposts has stopped. Those who used to take contracts for ensuring passage of your trucks through checkposts are naturally angry with me,” Modi said.
Source: Business Standard
An industrialist inking an MoU with the State Government in Warangal on Sunday. Agreements envisage an investment of over ₹3,000 crore. As many as 14 textile companies signed MoUs with the State Government to set up their units in the proposed mega textile park here. The agreements envisage an investment of over ₹3,000 crore, which will provide direct employment to more than 20,000 people and indirect employment to about 40,000 people. Addressing the entrepreneurs who came forward to invest in the upcoming mega textile park, Industries Minister K.T. Rama Rao thanked and assured them that the State Government would provide very conducive environment to carry on their business. The State Government moves forward with the slogan “Farm to fashion” where cotton is produced and used here to make various types of garments at one place, he said. A training centre would also be set up at park, he said. The park would provide employment to skilled, semi-skilled and unskilled workers, the Minister said. Deputy Chief Minister K. Srihari too thanked the businessmen for investing in Warangal. The textile park has come as a blessing to farmers, weavers and people of Warangal. It will bring back the glory of good old days by creating employment to local people, he said.
Source: The Hindu
PSBs stake sale, sale of PSBs stake, public sector banks, banks in india, Punjab & Sind Bank, United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank of India, Basel III banking rules Govt shareholding above 75% in these PSBs; stake sale to help capital infusion and meet public-float norm. (Image: Reuters) its shareholding is above 75%, as it mulls ways to gather resources to boost the capital base of public sector banks (PSBs) struggling with massive bad assets. While market conditions will play a crucial role in the stake sale plan, the government would first like to see its share trimmed below 75% in certain PSBs to achieve the twin goals of raising funds for recapitalisation and complying with the minimum (25%) public-float norm, a senior government official told FE. As of end-September, the government held more than 75% in eight PSBs — United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank of India, Punjab and Sind Bank, Indian Overseas Bank, UCO Bank and Bank Of India. Proceeds of any stake sale in a PSB, however, may not necessarily be used for fresh infusion into that bank. “The government will take a call on eligible candidates for capital infusion, based on the urgency of requirement and other parametres,” said the official. Apart from public offering, the government is contemplating options, including selling stakes to institutions like LIC, to reduce its shareholding. Importantly, barring Indian Bank and Punjab & Sind Bank, the government’s share in six of these eight PSBs have, in fact, risen this fiscal, thanks to its capital infusion under the Indradhanush plan. It has to reduce its stake to below 75% by August 2018 to comply with the minimum public-float norm. In the long run, though, the government intends to trim its stake in all PSBs to 52%. Also, the government’s shareholding in at least three banks — Syndicate Bank, Corporation Bank and Dena Bank — is between 70% and 75%.This means any sharp capital infusion into these banks will see the government’s stakes in them inching towards or breaching the critical 75% mark. The government is constrained to consider various options to raise funds, given the gross inadequacy of the allocation of Rs 10,000 crore for capital infusion this fiscal and the constraints of extra budgetary resources in times of uncertain tax collections. Global rating agency Fitch recently said that India’s public sector banks will require capital infusion of $65 billion to meet all of global Basel III banking rules by March 2019. It said the government has to pump in more than double the Rs 20,000 crore it had decided to inject in FY18 and FY19, even on a bare minimum basis. The gross bad loans of public sector banks worsened to 11.77% of their gross advances to banks at the end of March from 9.91% a year before. Although credit growth has been muted in recent years, the rise of stressed assets has raised PSBs’ provisioning requirements, making capital infusion by the government so important. As part of its Indradhanush plan, the government had planned to provide Rs 70,000 crore over a four-year period through 2018-19 (Rs 25,000 crore in each of the first two years and Rs 10,000 crore in each of the last two years) for the capitalisation of the PSBs. As for the public float norm, the government had in 2014 notified rules for a minimum 25% public shareholding in listed state-run companies. The move was aimed at promoting wider investor base in listed public-sector companies and boosting the government’s plan to raise funds from disinvestment.
Source: Financial Express
Push needed Trucks waiting to unload cargo at Petrapole border. India and Bangladesh are yet to optimise trade potential vis-a-vis the significant bilateral cooperationneeded Trucks waiting to unload cargo at Petrapole border. India and Bangladesh are yet to optimise trade potential vis-a-vis the significant bilateral cooperationBetter logistics, border infra can boost trade further between the two countries: observers Kolkata, October 22: After a subdued show for two consecutive years, India’s exports to Bangladesh reported a robust growth in 2016-17. The growth is attributed to a significant rise in export of equipment and high-value machinery for project implementation in Bangladesh. According to the Commerce Ministry, exports to Bangladesh touched $6.8 billion in the fiscal year ending March 2017, recording 13 per cent growth. Total bilateral trade had hit an all-time high of $7.5 billion, up 11 per cent. Bangladesh is the ninth largest importer of Indian goods. According to the Ministry, Indian exports increased by a modest 4.6 per cent ($6.4 billion) in 2014-15 and dropped by 6.4 per cent ($6.03 billion) in 2015-16.
Data confusion
There is, however, difference in trade data between India and Bangladesh. This is due to difference in accounting period (Bangladesh follows July to June accounting year) and difference in estimates between Bangladesh’s Bureau of Statistics and the central bank. According to the Bureau of Statistics, Indian exports dipped in the two preceding years before reporting 16 per cent growth to $5.7 billion (converted from Bangladeshi Taka) during the 11-month period from July 2016 to May 2017. All statistics, however, show Bangladesh witnessed a marginal dip in exports in 2016-17, after a five-year long growth spell between 2011-12 and 2015-16. While Indian exports meet 11-12 per cent of Bangladesh’s total import needs, India shares less than two per cent of Bangladesh’s export basket, which primarily includes ready-made garments. According to Selim Raihan, Executive Director of South Asian Network on Economic Modelling (SANEM) and a professor of Dhaka University, India and Bangladesh are yet to optimise trade potential vis-a-vis the significant bilateral cooperation. One of the major reasons behind is the poor and costly trade logistics. Nearly half of the total trade (in value terms) is routed through Petrapole-Benapole land border by costly road transport. The non-containerised road cargo undergoes repeated loading and unloading operations at the border. To add to the woes, the border infrastructure is far from adequate especially on the Bangladeshi side leading to congestion. In a recent study, SANEM indicated that Indian export consignments wait for 17-20 days to complete the customs procedure at the Bangladeshi gate of Benapole. Poor trade logistics is reducing the price competitiveness of both Indian and Bangladeshi exports. According to Raihan, capacity augmentation at Petrapole-Benapole can increase bilateral trade significantly.
New initiatives
Indian observers believe conversion of road traffic to less costly rail, containerisation of cargo and multi-modal transport can reduce the trade logistics costs. India recently approved ₹40 crore, in the third line of credit worth $4.5 billion to Dhaka, to help Bangladesh build a transhipment facility at Ishwardi that connects Gede-Darshana rail-link. It will help increase rail cargo by road. A parallel effort is on by both the countries to run container trains between Kolkata and Dhaka. But the most promising news is from shipping sector. Though India and Bangladesh opened direct shipping last year; the cargo volume didn’t grow to the expected levels due to congestion at Chittagong port in Bangladesh. In a recent trend, Bangladeshi shipping lines started moving containerised cargo from Kolkata to the inland river port at Pangaon, barely 20 km from Dhaka. The port is equipped with container handling facility. Indian authorities are bullish that popularising this route can reduce trade costs significantly.
Source: Business Line
Poll-bound Gujarat is likely to see a Rs 4,650-crore redevelopment plan for Surat’s railway station. Indian Railways (IR) will be tying up with the state government and the local body to pool land belonging to all three, a first. The redeveloped station is intended as a multi-model transport hub, with train, commuter rail and bus connectivity. The project is likely to be commissioned by December 2018. “The redevelopment plan will be announced soon. We are expecting an expense of Rs 1 crore a sq ft. The money will be put in by the government,” said an official. About Rs 650 crore would be spend on station redevelopment. The other Rs 4,000 crore would be to develop a commercial complex connected to the multi-modal transport hub. “A joint venture for undertaking the project will be formed soon,” said the source. Earlier, the government had invited global bids for the station but got lukewarm response. For the revised project, a concept design has been made by architects C P Kukreja Associates. IR is likely to form a joint venture for this with the state government and local bodies, the area to be developed on a revenue-sharing model. Last year, a memorandum of understanding was signed between IR, Gujarat State Road Transport Corporation and Surat Municipal Corporation in this regard. The plan is for the railways to hold 63 per cent stake in the project, the state government about 34 per cent and the remaining three per cent by the local body. By the plan, the redeveloped stations will provide amenities like digital signage, escalators, self-ticketing counters, executive lounges, restaurants, malls, theatres and Wi-Fi. “This is going to change the face of Surat; we want to make it (the station) one of the largest in Asia. The 140-metre building will be the tallest in the city. A 300-room five-star hotel will be attached to it,” the official added. For the hotel, operational rights have already been given to the Leela group. Earlier, the Wanda group from China had shown interest in both Gandhinagar and Surat stations but the smaller size (around Rs 400 crore each) of the then designed projects had made it less lucrative for global majors. This was after roadshows in Abu Dhabi and Dubai. The Railway Board had reviewed its redevelopment policy after tepid responses from companies for the 23 stations put for bidding in February 2017. On an average redevelopment of a station is expected to cost Rs 400 crore; major ones as in Delhi and Mumbai could see investment up to Rs 15,000 crore.
Source: Business Standard
The Communist Party of India(Marxist) Telangana State committee has demanded that the State Government procure cotton from farmers providing a support price of ₹ 7,000 a quintal. The Government should set up a cotton board on the lines of Maharashtra and procure cotton from farmers directly paying bonus factoring in the high cost of cultivation in Telangana. The party lamented that standing crop in several districts was damaged due to untimely rains that lashed the State recently and said the Government should assess the losses and provide compensation to affected farmers. The CPI(M) State secretariat, which met here on Saturday, said farmers opted for cotton cultivation on over 46 lakh acres this season in view of the Government’s failure to provide support price to red gram and pulses last season. Of these, crop on an extent of 30 lakh acres spread over 18 districts across the State suffered damage due to untimely rains. CPI(M) State secretary Tammineni Veerabhadram said traders were acting in collusion and denying support price to farmers on the pretext of high moisture content, absence of quality and other reasons. This was resulting in distress among farmers and some of them committed suicide. The Government should initiate steps immediately to ensure that farmers’ produce was procured without the intervention of middlemen and it could seek the help of the Cotton Corporation of India in this direction.
Source: The Hindu
MUMBAI: Prodded into action after reports on the widespread cultivation of unapproved genetically modified cotton seeds with herbicide tolerant (HT) traits, the Centre's Review Committee for Genetic Modification has called a meeting with the cotton-growing states of Maharashtra, Gujarat, Andhra Pradeshand Telengana on October 25. In September, South Asia Biotechnology Centre (SABC) had reported that the illegal HT hybrid market had swelled to Rs 472 crore in the kharif season with around 35 lakh HT hybrid seeds sold and cultivation spread over 8.5 lakh hectares. The illegal HT seed sales had been on for several years, with 8 lakh sold in 2015-16, SABC said. Trials for the HT cotton seed were being conducted by Mahyco Monsanto Biotech India, but the seed has not yet been approved by the Centre's Genetic Engineering Approval Committee (GEAC). Currently, only genetically modified cotton seeds with resistance to American and pink bollworm are cleared for use in India. "This year, the cultivation of HT hybrids under different brands shot up, so we brought it to the government's notice...The seed needs to be properly tested and legally released," said C D Mayee, president of the SABC board. Mahyco Monsanto Biotech India has not yet reverted to questions on this issue by TOI. In February, the Central Institute for Cotton Research had found that six of the nine samples cotton seed samples tested positive for HT cotton traits. After reports on SABC's findings, the PMO sought comments from GEAC. The body, in turn, asked the state governments what action has been taken. The Maharashtra government is said to have pointed out that under the Seed Act 2004, it can take action only on matters relating to seeds already approved or notified by Centre. "The state can decide on the action only after directions from GEAC and Review Committee for Genetic Manipulation, and on receiving CICR reports," said state agriculture secretary Bijay Kumar. CICR has not yet shared its test results showing the presence of illegal HT seeds with the state government, sources said. Meanwhile, the state government has called for a ban on HT cotton and held a meeting with seed firms.
Source: The Times of India
The illegal sales of herbicide-tolerant cotton seeds smacks of an organised racket by a few companies operating below the radar, or in connivance with some powers—making a mockery of the regulatory system. The piracy of Monsanto’s herbicide-tolerant Bt cotton shows how long-drawn approval processes can put agri-biotech products at risk, marring IPR and innovation. Prime minister Narendra Modi has expressed his intense desire to make India a hub of innovations at several forums, be it his address to young CEOs as champions of change in India or his address during his recent visit to Israel. His most famous quote on innovations is “Innovation is life. When there is no innovation, there is stagnation.” In this context, the NDA government even announced the setting up of the Atal Innovation Mission, via the budget speech of finance minister on February 28, 2015. But the progress so far has been tardy. This is not the first time that India has dreamt to be an innovation hub. The Importance of innovation was also recognised by the Manmohan Singh government when it constituted the National Innovation Council (NIC) in 2010 under Sam Pitroda, then advisor to prime minister on innovations. The key mandate of NIC was to formulate a roadmap for innovations for 2010 to 2020. The NIC submitted three annual reports to the government; the last one was in 2013. Sectoral innovation councils were set up in 25 major departments of Union government, including the ministry of agriculture. At the state level also, State Innovation Councils were set up so that the idea of innovation becomes mainstream in the functioning of both Union and the state governments. However, it soon became evident that despite the best intentions of the government to decentralise innovation, and to make it a part of governance structure of ministries at the Centre and the states, innovative ideas that could be scaled up nationally were hardly emerging. It also showed that government organisations are not suited to bring about game-changing innovations as they are mired in routine work. The work of NIC proved that innovations work best in a supporting environment, irrespective of size or nature of organisation. The most important support which could be provided by the government was the protection of innovation itself!
So, for the NDA government, the first lesson to learn for its dream of making India an innovation hub would be “create an enabling environment to safeguard intellectual property of individuals, private and public companies that develop new products and ideas through their own investment”. India ranks 60th in a list of 127 countries on the Global Innovation Index (GII) of 2017, an index prepared by Cornell University, INSEAD and World Intellectual Property Organisation (WIPO). Switzerland tops the list followed by Sweden, the Netherlands, the US and the UK. Singapore ranks 7th, Japan 14th, Israel 17th, and China 22nd. In the Forbes list of 10 most innovative companies in the world, six are from the US. Interestingly, in the recently-released International Intellectual Property (IP) Index 2017 that ranks 45 countries, India ranks 43rd. It is this poor record on IP protection that is holding India back. Here, we focus on innovations in agriculture, as the challenge to feed 1.3 billion people cannot be met without innovations all along the agri-value-chain. Take the latest case of Herbicide Tolerant (HT) Bt cotton, which is being talked about in the media and policy circles today. It is now widely known that one of the biggest innovations in Indian agriculture in the last 15 years was introduction of Bt cotton in 2002, a policy decision taken by the Atal Bihari Vajpayee government. That made India one of the top producers and the second-largest exporter of cotton. Mahyco Monsanto Biotech (MMB), which released the Bt cotton through its 40-odd licencees, also wanted to release HT Bt cotton and applied for approval to the Genetic Engineering Approval Committee (GEAC). HT cotton in an innovation in Bt cotton as it takes care of the weeds problem at a much lower cost than the labour farmers have to engage for weeding. But before MMB could be granted permission for HT cotton, some unscrupulous elements pirated HT cotton, probably from countries (like the US, Australia, etc) that had already released it officially. These pirated HT cotton seeds were bred here, and this kharif season, several companies sold an estimated 35-45 lakh packets of HT Bt cotton seeds, illegally, covering about 7-10% of the cotton area. Looking at this blatant violation of the regulatory system by these pirating companies, MMB withdrew its application in 2016. Interestingly, MMB had written to GEAC and concerned ministries and state governments way back in 2008 about such illegal activities, even giving the details of the plots where it was being multiplied. But the government of the day did not take rigorous action to stop this, and now, the scale of this illegal HT cotton seeds trade has become so large that it poses a major challenge for the current government. However, it is noteworthy to see that farmers’ appetite to get better technologies and even pay premium price ranging from Rs 1,100-1,500 per packet, despite a legal price cap at Rs 800 per packet for Bt cotton. But this illegal sales of HT cotton seeds smacks of an ‘organised racket’ by a few companies operating below the radar, or in connivance with some powers, and making a mockery of the regulatory system under GEAC and ministry of environment, forests and climate change, as well as violating IPR. How can India dream to be an innovation hub if such clandestine activities flourish and innovators suffer? Only stern and exemplary action by the prime minister can bring back the credibility of India’s regulatory institutions and put innovations on a safe and reliable path. Also, regulatory bodies need to clear the applications for innovative products (like GM mustard or Bt brinjal) quickly, lest they are introduced by pirates surreptitiously. Without these actions, making India an innovation hub will remain a pipe-dream for decades. Pirates can never be innovators!
Source: Financial Express
CD Mayee, the former chairman of national Agricultural Scientists Recruitment Board (ASRB), has been associated with cotton crop throughout his career as a scientist. He was the director of Central Institute for Cotton Research (CICR) before shifting to Delhi as the agriculture commissioner. The recent spate of deaths of farmers and farm labourers from contact poisoning caused due to spraying has shaken him. Currently, he is the president of South Asian Bio-technology Centre (Delhi), which is a body of national and international agriculture scientists. TOI spoke to him on the issue, its causes, effect and solutions. Excerpts from an interview.
Q. Could the deaths in Vidarbha been avoided?
A. It is unfortunate that cotton farmers and farm labourers are dying due to pesticide spraying. Nowhere in the world, including other parts of India, does this happen. Grape farmers in Nashik belt make as many as 47 sprays in the season. But they have a fixed schedule and the amount for each spray is strictly followed. The deaths could have been prevented. It is the failure of the state agriculture extension department, which never bothered to see what farmers were doing with pesticides for all these years.
Q. It is said that cotton uses almost 30% of all pesticides in India. Is it a cumulative effect of pesticide use over the years?
A. It is true that more pesticides are used on cotton. But pesticide usage in Brazil, China, Japan and countries in the European Union is much more than India. Punjab uses a high amount of pesticides, but no casualties are reported from there. The question thus arises whether modern agriculture needs pesticides. I believe it can be minimized.
Q. How can pesticide use be minimized?
A. There are effective regulations to control the use of pesticides. But they are only on paper. There is no implementation machinery. Farmers need to be told about the right use of right pesticides. It is the misuse and excessive use of pesticides which has led to today's situation
Q. Who should be guiding the farmers?
A. It is mainly the responsibility of the state agriculture department. It can 'take' the technologies from CICR to farmers. CICR too can act pro-actively with farmers. However, only about 20% of its scientists use their mind and don't succumb to bureaucratic pressures. CICR had developed an insecticide resistance management (IRM) as well as an Integrated Pest Management (IPM) regime. Keshav Kranthi (former CICR director) had developed a window approach for this. Till the first 80 days after sowing, there should be no pesticide spray and, if needed, only neem-based pesticides could be used. Specifically, no pyrethroids should be used. Similarly, there is a dedicated regime for 80-120 days, 120-150 days and 150 and beyond. But the information has not reached the farmers or farmers don't have required confidence in the agriculture department. Q. What do you think happened in Yavatmal?
A. The biggest mistake was use of pesticides in very early stage of the plant. But this is not the only reason. Farmers not only used excessive pesticides but they also used wrong combinations. The concoction was so horrible that no one knows the actual chemicals that the plants were exposed to. Also, there are a lot of spurious pesticides available in the name of big brands. In Hyderabad, there are many spurious manufacturing units that do business of around Rs1,000 crore. Farmers mix growth enhancers too to save time. The market has many spurious growth regulators which are actually pesticides. The combination of chemicals is deadly.
Q. Weather as well as ignorance about method of spraying is also said to be responsible for the situation?
A. Yes. Most of the sprayers were farm labourers. They want to earn maximum possible amount in the season. So, they worked odd hours. Spraying should be done early in the morning or late evening, but they worked the whole day. Since plants grew taller this year, there was more humidity in the field. Farmers sprayed without even wearing shirts and against the wind. Yet, these things cannot kill in just one year. It is an accumulated effect. Q. The state agriculture department is being blamed for the situation.
A. It is actually the state extension machinery as well as regulatory mechanism at state and centre which completely failed in its job. Earlier, there used to be training session for farmers by scientists. Now, farmers are given advisories on phone. The state department is always engaged in firefighting mode. The issues are never dealt with professionally. They only try to divert the attention of people from the issue. Farmer has a problem in the present whereas politicians and administration are bothered about the future. In Israel, the regulatory mechanism is so strong that only particular chemicals needed at a particular time are available. We too need such a mechanism.
Q. CICR has been telling farmers to terminate the crop in 6 months. But farmers extend it to nearly 9-10 months. What is the effect of this?
A. Ideally, only short duration varieties are suitable for dry land cultivation like in Vidarbha. But farmers here extend the cotton by irrigating it to extend cotton picking to 5-7 instead of the regular 2-3. This doesn't break the cycle of pests, especially the pink boll worm. The worm stays on in the soil as well as in cotton stalks which should ideally be sold or destroyed. Since it stays in the soil, it attacks the next crop early. Ideally, the farmer should take a leguminous or any other crop in rabi season so that there is a six-month gap.
Q. What are the solutions?
A. One solution is to focus attention only on cotton and create a 'Cotton Board' like the coffee board, grape board etc for commercial crops. The board will have its own regulatory mechanism and will be covered under ministry of commerce which has its own system of control mechanism. A system can then be put in place from sowing, cultivation, promotion, market to export of the material.
Source: The Times of Indoa
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$ 55.83 per barrel (bbl) on 20.10.2017. This was lower than the price of US$ 56.07 per bbl on previous publishing day of 19.10.2017.
In rupee terms, the price of Indian Basket decreased to Rs.3632.27 per bbl on 20.10.2017 as compared to Rs. 3648.31 per bbl on 19.10.2017. Rupee closed unchanged at Rs. 65.06 per US$ on 20.10.2017 as compared per US$ on 19.10.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 20, 2017 (Previous trading day i.e. 19.10.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.83 (56.07) |
|
(Rs/bbl) |
3632.27 (3648.31) |
|
|
Exchange Rate |
(Rs/$) |
65.06 (65.06) |
Source : PIB
TPCC vice-president and former Member of Parliament Ponnam Prabhakar said that it is a “black day” for the powerloom weavers of Sircilla textile town as the State Government “betrayed” them by sanctioning Kakatiya Mega Textile Park to Warangal district. Against a total of around 50,000 and odd powerlooms in the State, more than 36,000 powerlooms are in place in Sircilla, he said, and added that the government should accord priority for the modernisation of the existing powerlooms by setting up mega Textile Park. “What is the rationale behind setting up of mega textile park spread over 1,200 acres in Warangal district by neglecting Sircilla, which is also called another Sholapur,” he questioned. Talking to newsmen here on Sunday, he said that the powerloom weavers expected that their lives would change after the formation of Telangana but they were cheated again by the ruling TRS. Reminding that the Congress government schemes of providing 50% power subsidy, providing loans at pavala vaddi to families of weavers and health insurance are continuing, he alleged that the government in three-and-a-half years has not done anything for their welfare and upliftment. He asked the State Government why it had shelved the proposed upgradation of powerlooms in Sircilla taken by then Congress government in 2014 and reminded that they had proposed mega textile park in Sircilla and got it included in the Union Budget speech too. Mr. Prabhakar alleged that Karimnagar sitting MP B. Vinod Kumar, who hails from Warangal district, is shifting all the projects sanctioned to Karimnagar district to his native Warangal betraying the people of the district, who have elected him. He said that the proposed Textile Park, Leather Park, IT Park, Sainik school etc were shifted to Warangal. Flaying the TRS leaders for shedding crocodile tears over the welfare of Sircilla powerloom weavers, he asked the Karimnagar MP as to what did for their welfare and upliftment. If he had written any letters to the Union Government for the welfare of weavers, he should make them public, he demanded.
Source: The Hindu
Another successful Intertextile Shanghai Apparel Fabrics has wrapped up with three days of order placing, relationship building and trend-spotting. The global industry came together for the industry’s leading trade fair, with 4,538 exhibitors from 32 countries and regions presenting their latest collections and innovations. There were 77,000 trade buyers. The exhibition was organised during October 11-13, 2017. The gross area of the fair increased by six per cent compared to 2016. Reflecting growth in the domestic market as well as other regions, the Functional Lab grew 33 per cent in size this year, Premium Wool Zone grew 18 per cent, while an extra accessories hall was added to meet demand. With the entire apparel fabrics and accessories product spectrum on offer, more than 77,000 trade buyers from over 100 countries and regions chose Intertextile as their sourcing event for the season. In 2016, there were 73,927 trade buyers from 90 countries and regions. Wendy Wen, senior general manager of Messe Frankfurt (HK) highlighted the fair’s importance to the apparel sector: “Intertextile Shanghai is not just the industry’s largest event – it is also the leading sourcing and business platform for the industry. Exhibitors come here knowing they can meet quality trade buyers from around the world that are there to conduct business, while these buyers know that the fair provides an unrivalled number of suppliers across the entire product spectrum to source from. This combination is the genesis for a successful, business-focused trade event, and I’m pleased to say that this edition has once again been highly effective in this regard.” “Walking the halls this year, I was also encouraged to see an increasing number of innovative products and solutions,” Wen continued. “A noticeable trend, too, was the large number of companies offering eco-friendly products and technologies, not just in our All About Sustainability zone. Innovation and sustainability in particular will continue to be a strong focus of both our Spring and Autumn Editions next year.” Companies big and small descended on Shanghai for the fair, and with such a diverse range of buyers also gathering, there was success to be found by all. One of the industry’s largest players, Lenzing, who participated with 54 of their partner mills, finds the fair essential to participate in, as Maggie Shen, marketing communication manager, China, explained. “Intertextile is the biggest and most important fair in the industry. Everyone knows it, and comes here to see what’s new. It’s an effective platform for us and our partner mills to meet existing customers, as well as get new enquiries each edition.” At the other end of the size spectrum, but no less successful in the industry and at the fair, is Huddersfield Fine Worsteds who celebrated 10 years at the fair this edition. Their president Bob McAuley commented: “This edition has been very good for us, we’ve been very busy. Intertextile is an easy place to find lots of customers. A lot of new companies opening in the high-end wool sector in China come here each edition. The professionalism of the buyers is high too – specifically we’re getting tailors and specialty menswear stores here. Our sales are increasing big time in China. We expect to double our business in China in the next year.”
Source: Fibre2fashion
Islamabad: The textile group exports from the country during first quarter of current financial year witnessed about 7.91 percent increase as compared the exports of the corresponding period of last year. Textile group products worth US$ 3.257 billion were exported during the period from July-September 2017-18 as compared the exports of US$ 3.018 billion of same period last year, according the latest data released by the Pakistan Bureau of Statistics. During first three months of current financial year, raw cotton exports from the country grew by 69.70 percent as about 17,552 metric tons of raw cotton exported as compared the exports of 10,200 metric tons of same period last year, it added. Raw cotton worth US$ 29.624 million were exported during July-September, 2017-18 as against the exports of US$ 17.457 million of corresponding period of last year, the data reveled. Meanwhile, cotton yarn worth US$ 320.346 million were exported in first quarter of current financial year as against the exports of US$ 306.958 million of same period last year, the data added. According the data, about 123,346 metric tons of cotton yarn exported in last three months of current financial year as compared the exports of 107,122 metric tons of same period of last year. During first quarter, exports of knitwear exports increased by 9.35 percent and about 29,674 thousand dozens of knitwear worth US$ 647.650 million exported as compared the exports of 25,708 thousand dozens valuing US$ 592.277 million of the same period last year. About 91,147 metric tons of bed wear valuing US$ 566.963 million exported in first quarter as compared the exports of 89,559 metric tons worth of US$ 528.912 million of same period of last year, the data added. During first quarter of current financial year, about 40,307 metric tons of towels worth US$ 180.217 million exported as compared the exports of 42,287 metric tons valuing of US$ 178.596 million of same period last year, hence showing an increase of 0.9 percent.—APP
Source: Pakistan Observer
LAHORE: The Digital Printing and Signage Technology Exhibition brings modern machinery and equipment, which will spark revolution in the textile and printing industry in coming years, leading to job creation and higher industrial growth. These were the opening remarks of Lahore Chamber of Commerce and Industry (LCCI) President Malik Javed Tahir at the three-day 3rd International Digital Printing and Signage Technology Exhibition. The event began on Friday at the Lahore Expo Centre and around 150 local and foreign companies participated in the fair. Tahir said foreign companies were exhibiting their products for joint ventures with local companies, which was beneficial for Pakistan’s economy as local companies would be able to manufacture modern equipment to save capital. He urged the Trade Development Authority of Pakistan (TDAP) to facilitate local manufacturers in importing latest printing technology. Responding to a question, he said the government had imposed unjustified regulatory duties on the import of raw material, which would be resisted by the business community at all levels. “Around 500 textile units have already been closed due to unfavourable government policies,” he remarked. Speaking on the occasion, Inks Global EMEA APAC Commercial Director Rudy Grosso said their ink technology had a great potential in the Pakistani textile market. “We will start from textile and go to food and other innovative industries in Pakistan for digitalisation purposes.”
Source: The Express Tribune
The Pakistan government has notified the ‘Duty Drawback of Taxes Order 2017-18’, effective immediately. The announcement is in pursuance of the Prime Minister’s Package of Incentives for Exporters approved by Economic Coordination Committee (ECC) of the Cabinet to provide duty drawback of taxes collected from manufacturing cum exporter units. As per the notification issued by the Textile Division, ministry of textile and commerce, the Order extends to the whole of Pakistan including Export Processing Zones. The duty drawbacks under the Order shall be allowed for exports GDs filed on or after July 1, 2017 to June 30, 2018. While “50 per cent of the rate of drawback shall be provided without condition of increment, the remaining 50 per cent of the rate of drawback shall be provided, if the exporter achieves an increase of 10 per cent or more in exports during performance year (FY 2017-18), as compared to the base year (FY 2016-17),” the notification said. “The actual rate of drawback against the remainder 50 per cent shall be determined on the basis of annual performance of the exporter, but in order to improve her/his cash flow, the disbursement shall be allowed on the performance during July-December 2017, subject to submission of a bank guarantee that the exporter will return the excess amount, in case his/her annual exports are less than the amount of drawback paid to him/her,” it added. Further, an additional 2 per cent drawback shall be allowed for exports to non-traditional markets i.e. Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania. The manufacturing cum exporting units availing the drawback have to be registered with the Textile Division and use Textile Division’s online portal to follow subsequent Circular issued by State Bank of Pakistan.
Source: Fibre2Fashion
TCE, Vietnam’s biggest denim producer, celebrates the first year of its Eco Line installation achieving close fabric control and significant energy savings benefits. TCE Corporation was the world’s first denim producer to install a Monforts Eco Denim Line, and after a full year of production is now able to evaluate the advantages in terms of production and energy and water savings. The company is the largest producer of denim in Vietnam, and one of the largest in Asia. Founded in South Korea in 1956, TCE relocated its entire production to Vietnam in 2014, and now produces only denim at its TCE Vina Denim mill, which occupies a 110,000m² site two hours outside of Hanoi. TCE exports 100% of its production overseas, with Europe, at about 45% being the largest market, followed by the USA at 30%, and Japan and Korea the other main export destinations. Chief executive officer Stanley Hwang says that production ranges from lightweight to heavyweight denim, in the range of 4 to 14 ounces. “The critical point with denim is consistency and shrinkage,” he says. “The greatest benefit of the Eco Line is that it allows the fine control of fabric shrinkage. “We are a long-time user of Monforts, having installed our first machine in 1996, a machine that is still in full operation. “We then progressed to the second-generation machines, where we can control the shrinkage but it can be complicated. “With the Eco Line, we can see exactly what is going on in the production line, and it is very easy to operate. We have complete control of the shrinkage, and we need one or two less staff to operate the machine.” The Eco Line was manufactured by Monforts in Germany and supplied via Peja Vietnam, Monforts representative for Vietnam. The Eco Line is engineered to save on water and energy usage. At the front of the machine is the Eco Applicator which applies the chemicals, replacing a conventional padder and applying less moisture to the fabric, reducing drying needs and therefore energy consumption. After this stage, the Thermex Hotflue Chamber generates the necessary moisture and temperature for making the denim stretchable, whilst incorporating a soft stretching of the fabric using many rollers instead of only the one or two used in a traditional stretching unit. This consequently saves on the volume of water needed to generate the steam, and also saves on the amount of energy required to convert the water to steam. Mr Hwang says that TCE is saving on both water and electricity. Water is taken from the public supply, for better quality and convenience than a well, and savings are in the region of 20 to 30%. Electricity savings are around 10%. TCE had started to make denim in Korea in 1969, and was probably the third Asian producer to do so. “We were the first denim producer in Korea to use Monforts machines,” says Mr Hwang. “Monforts for us is very safe. So although other companies approached us when we were planning to expand production, there was no doubt on our part that we would install a new Monforts machine. “The consistency we achieve with Monforts is perfect. We love Monforts!” Production general manager Ku Myung Soo says that the fabric passes in one continuous run, through the Eco Applicator, then through the Thermex, and finally through the shrinkage process. “There are three main stages,” he says, “and the fine-control system allows us to closely monitor the entire process. “Monforts sent an engineer from Germany to install the machine and train the staff, and we have continual backup from the Peja team, with who we work closely. “Our production staff find the Eco Line very easy indeed to work with.” Investment in the Eco Line came as part of an important expansion to coincide with TCE’s 60th anniversary last year, and which boosted output from 1.5 million yards a month to 3.5 million yards, the biggest production capacity in Vietnam. The Eco Line throughput is 1.5 million yards. There is anticipation that the demand for Vietnam denim will increase substantially when the European Union Free Trade Agreement with the country comes into effect, which is expected to be at the beginning of 2018. TCE is additionally implementing its own vertically integrated facility including garment manufacturing to provide a full package for buyers. Mr Ku explains that the company produces its own rope dyeing machines, the entire design, manufacturing and installation of the machines being carried out by the TCE team. There are now five rope-dyeing machines to cope with the new production capacity, the latest having 22 dips to provide the dark indigo colour that is demanded by certain sectors of the market. TCE has a total workforce of around 1,800, and works 24 hours a day, usually six days per week but seven when necessary.
Source: Innovations in Textiles
Zimmer Austria, a leader in machines for textile and carpet finishing (digital printing systems, flat screen and rotary screen printing, coating systems, steaming, washing, drying), recently participated in the IFAI (Industrial Fabrics Association International) expo, held from October 15 to 18, 2017, at Dallas, US. The show was a huge success for Zimmer. The company’s featured machine, the Chromojet.Tabletop Printer running live on the booth, was a real conversation starter. The digital lab printing machine sparked the interest of many apparel and home textiles manufacturers. The printer is used in the development and testing of print recipes for Chromojet printing applications and for test printing on various substrates. The topic of digital functionalisation proved again to be an important one and drew an equally large crowd. The application of localised functions, paired with low operating costs reflects the current needs of the fashion, automotive, protection, filtration, and other industries. The versatility of Zimmer’s Magnoroll multi-purpose coating machine also drew much interest across the board of industries at the expo. The Magnoroll can be used for universal applications with liquids, pastes, lacquers, and foams on textiles, plastics, nonwovens, carpets, glass, film, and other innovative materials.
Source: Fibre2Fashion
Morarjee Textiles Ltd., a leading textile company from India, has said that the sanforizing range from Bruckner, a producer of high-tech lines for the dry finishing of knitted and woven fabrics, installed in 2015, has proved to be a huge success at its manufacturing unit. Morarjee Textiles is part of the Ashok Piramal Group, a leading business group. The main components of the sanforizing line are the rubber-belt compressive shrinking unit, a felt calendar, and the cooling cylinders. According to the company’s managing director, Rajendar Kumar Rewari, the Bruckner machine has been the right choice for their very light and thus particularly sensitive fabric made of 100 per cent cotton, viscose or crepes for woman dresses and men’s shirting fabric. The compressive shrinking line provides the fabric with a more stable structure, a silk-like shining surface and a smoother hand. In addition, it reduces the residual shrinkage up to 3 per cent. The machine is easy to handle. The control of tension and the software allow to treat very light fabrics without any marks. The production speed is between 60 and 70m/min. The production team is very satisfied and they recommend this machine especially for difficult and sensitive articles. With more than 100 years of experience and modern integrated manufacturing facilities for 100 per cent cotton premium yarn dyed shirting and printed fashion fabric, Morarjee Textiles makes cutting edge fashion a reality and is today one of the biggest players in the Indian textile industry. (GK)
Source: Fibre2fashion
