The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 24 OCT 2017

NATIONAL

INTERNATIONAL

Textile: Evolving consumer preferences

The textile sector’s performance for FY17 was described as marginally better in the central bank’s recently released annual report. However, a growth of 0.8 percent and 0.4 percent for the past two years can hardly be called “better” and is reflective of the stagnant state the sector has settled in. Most of the issues plaguing the sector have persisted for quite some time now. Therefore, SBP’s recommendations for sufficient investment by textile players in BMR activities, value-addition and increasing production efficiency for enhancing a stagnant export base, although accurate are not novel. Stakeholders in the textile industry have complained of the patchy implementation of the export package that was announced by the government to incentivise a rapidly shrinking export base. The central bank has also noted that the impact of that has been slower than expected although the Bank refrains from pointing out the specific reasons for it. Taking a closer look at the figures, textile exports grew by 1.9 percent in the second half of FY17 after dropping by 1.8 percent in the 1HFY17. The SBP cites a pick-up in consumer spending in European countries as a factor in helping exports rise in the latter part of the year. This led to the EU’s overall clothing and textile imports increasing by 3.5 percent in FY17 as compared to the previous year. Out of this, the growth in EU’s imports from Pakistan in the clothing and home textiles category was the highest among Asian countries. Encouraging as this news might be, the SBP goes on to flag a decrease in Pakistan textile exports to the US. This column strongly agrees with the bank’s assessment of Pakistani textile players being still “excessively focused on cotton-based textile and apparel products.” The situation is exacerbated by the absence of a strong domestic polyester industry, with demand for man-made fibres by exporters being largely met by imports. International apparel market trends are evolving at a rapid pace. This is evident from the changing preference of consumers in markets such as the US where the share of cotton products in total US textiles has decreased from 40 percent in FY10 to 29.7 percent in FY17. This column hopes to analyse these trends in more detail in the coming days. The central bank goes on to highlight the case of Vietnam, which has managed to capitalise on its relatively low-cost production of man-made fiber into producing synthetic garments that have shown increased demand in the US. A unit value of clothing at 3.2 $/SME in Vietnam as compared to 3.4 $/SME for the rest of the world has made the share of Vietnam’s textile exports rise from 9 percent in FY12 to 12.4 percent in FY16. Textile sector stakeholders need to come together to work on aligning their product base according to international consumer preferences. Players involved in value addition segments such as readymade garments have been complaining of the dearth of quality fabric for some time now. The absence of a strong domestic polyester industry in Pakistan means demand for man-made fibres is mostly met by imports. Therefore, imposition of regulatory duties and cumbersome inspection checks which lead to problems for value added segments need to be reconsidered.

Source : Business Recorder

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Govt Simplifies Invoicing Under GST for Retailers

Retailers won't have to issue long invoices detailing prices and taxes for each item under the goods and services tax (GST) regime, further easing the billing and compliance burden on them. They will also not have to issue separate invoices for exempted items taxed at the 0% rate and can club all purchases in one bill. The GST Council has approved these changes based on the recommendations of the law committee set up to review demands by stakeholders. The two changes will make invoicing and filing easier for retailers. They can issue invoices clubbing all goods taxed at one rate and mention just the total tax, facilitating smaller and less cumbersome invoices. Under the earlier arrangement, all items had to be mentioned separately along with their prices and taxes. Retailers had argued that the end-customer is concerned with the net sale price and didn't need a detailed tax breakup, but this was rejected by the committee. It said buyers have a right to know the tax being levied on all goods and services purchased by them. A supplier need not provide the rate of tax against each item in the invoice and can instead show the cumulative value of all items liable to tax at a particular rate and the total levied on them. This will allow for clubbing of items and simpler invoices.

EXEMPT ITEMS

A similar relief has been provided in the case of 0% items. The GST law provides that a retailer selling both regular and exempt items has to provide two separate receipts -one for each. If a consumer buys grocery items taxed at 0% and consumer goods taxed at 18%, then the retailer will need to issue two separate invoices. Under the new rules, the retailer will be allowed to issue one single `invoice-cum-bill of supply' for all the goods sold to a consumer or unregistered entity. Tax experts said the move is in the right direction. “Allowing aggregate level-value on the invoice, based on GST rate, would be a significant relief for B2C (business to consumer) supplies by retailers. It would be good if the requirement of mentioning harmonised system of nomenclature (HSN) code is also dispensed with in such cases,“ said Pratik Jain, indirect tax leader, PwC.

Source: Economic Times

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Exporters can claim refund this week for GST paid in Aug., Sept.

 

Exporters can soon start claiming refunds for GST paid in August and September as GSTN will this week launch an online application for processing of refund, its Chief Executive Officer Prakash Kumar said on Monday. GST Network (GSTN), the company handling IT infrastructure for the indirect tax regime, has from October 10 started issuing refunds to exporters for Integrated GST (IGST) they paid for the month of July, after matching GSTR—3B and GSTR—1. For August and September, while the initial return GSTR- 3B has already been filed, the final return GSTR-1 has not yet been filed. “A separate online app for claiming Integrated GST (IGST) refunds for August and September would be made available on GSTN portal this week,” Mr. Kumar told PTI. GSTN has developed the app wherein exporters can save and upload their sales data which are part of GSTR-1 after filling up export details in Table 6A. The table will be then extracted separately and after exporters digitally sign it, it would automatically go to the customs department. The customs department will then validate the information provided in the table with the shipping bill data and also the taxes paid in GSTR-3B. The refund amount would be either credited to exporter’s bank account through ECS or a cheque would be issued. As per data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September.

Source: The Hindu

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Inter-state supply may come under GST composition

The composition scheme for small taxpayers that offers easier compliance and a flat rate of tax looks set to be made more attractive as its ambit may be expanded to include inter-state supplies of goods. Besides, the facility of input tax credit may be made available under this scheme. A ministerial panel, led by Assam Finance Minister Himanta Biswa Sarma, is expected to finalise the contours of the revised structure in its next meeting on Sunday. The five-member group of ministers (GoM) would meet representatives of small- and medium-scale industry on Sunday to seek feedback on improving the composition scheme. It would be the second meeting of the GoM, which decided to reduce rates for restaurants to 12 per cent from 18 per cent while withdrawing the input tax credit facility. The GoM’s decision would be put up to the GST Council at its next meeting in Guwahati on November 10 for approval. “There was broad consensus in the meeting that the compliance burden needs to be reduced for small and medium enterprises in the GST. Taking the discussion forward, we will deliberate on extending the composition scheme to those undertaking inter-state supply of goods. This is a key demand from the sector,” said a state minister who is part of the panel. He added the input tax credit facility may also be made available under the composition scheme in order to make it easier for smaller players to opt for it. “Many small and medium players are hesitant about opting for the composition scheme as they worry that large players will stop buying from them. This needs rectification,” he said. “If input tax credit is to be given, the contours of the scheme will need to change wherein composition dealers will have to show tax on invoice and file regular GST returns, unless some kind of a deemed credit mechanism is worked out,” said Pratik Jain of PwC India. The ministry of small and medium enterprises has been asked to discuss with industry representatives what they expect from the composition scheme and what more can be done to make it more attractive. The other members of the GoM are Bihar Deputy Chief Minister Sushil Modi, Jammu and Kashmir Finance Minister Haseeb Drabu, Punjab Finance Minister Manpreet Singh Badal and Chhattisgarh Minister of Commercial Taxes Amar Agrawal. The ministerial panel would look into whether the turnover of exempted goods can be excluded from the total turnover threshold for levying tax in the composition scheme. The final decision would be taken in the upcoming meeting ahead of the GST Council meeting. The council, chaired by Union Finance Minister Arun Jaitley, raised the eligibility threshold for the composition scheme to an annual turnover of Rs 1 crore from the current Rs 75 lakh at its last meeting. The scheme offers a flat rate of tax and quarterly filing of tax returns. The window, that ended on October 1, has been extended till March 31. The scheme already received extensions twice earlier. In the scheme, a trader pays the GST at one per cent, a manufacturer at two per cent and a restaurant owner at five per cent, but they are not allowed input tax credit. So far, 1.5 million registered entities have opted for the composition scheme, which amounts to a sixth of 8.9 million GST assesses.

Anyone availing of the scheme cannot claim input tax credit. Such a dealer cannot issue a tax invoice. Hence, someone buying from a composition scheme dealer cannot claim input tax on the goods bought. Besides, one cannot undertake inter-state supplies in order to opt for the scheme. A composition scheme dealer needs to furnish one return, i.e. GSTR-4, on a quarterly basis, and an annual return, Form GSTR-9A, as against three forms every month by a normal taxpayer. Besides, there is no requirement of invoice-wise details or HSN (harmonised system of nomenclature) codes in their returns. The scheme is not available to manufacturers of tobacco and tobacco substitutes, pan masala and ice cream. Revenue Secretary Hasmukh Adhia had said in an interview to PTIthat the government was considering easing the compliance burden on small and medium enterprises. “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 the common man, if we bring it down, there will be better compliance,” the report cited Adhia as saying. At the previous GST Council meeting, small taxpayers with up to Rs 1.5 lakh turnover were extended the option of quarterly tax payment and filing of returns. Around 94-95 per cent of tax revenue comes from big taxpayers.

Source: Business Standard

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'CGST, SGST payable if supplier and place of supply are in same state'

Business Standard invites readers' SME queries related to excise, VAT and exim policy am a registered dealer of motor parts in the state of Bihar. A dealer from Kolkata had purchased motor parts and himself taken delivery of the goods from my shop. So, the place of delivery is Bihar, but in the invoice we had written the party’s address in West Bengal. So, what should I charge — IGST or CGST / SGST?

Kindly mention the Sections.

Your supply gets completed at the time of delivery to the recipient. There is no movement of goods at that stage. As per Section 10 (c) of the IGST Act, 2017, “where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient.” As per Section 8 (1) of the same Act, “subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply”. Therefore, your place of supply is Bihar and as an intra-state supply it attracts CGST and SGST. To obviate confusion, you can mention the place of delivery as Bihar in the invoice. We are an education trust, claiming exemption under Section 12A of Income Tax Act, 1961. Our gross turnover of taxable and exempt services is more than Rs 20 lakh but less than Rs 1 crore. Can we avail of the composition scheme? As per Section 10 (2) of the CGST Act, 2017, composition scheme is not available for service providers, except for supply of food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption). Can a registered person who has paid GST on reverse charge basis for services supplied by unregistered dealers take input tax credit of the same? Yes, if the service is used or intended to be used by the registered person in the course or furtherance of business and other conditions for taking input tax credit are satisfied. You had mentioned (SME Chatroom, October 10, 2017) that countervailing duty leviable under Section 9 of the Customs Tariff Act, 1975 is not exempted even when goods are imported under advance authorisation. If we pay that duty, can we claim drawback? Yes. But, that may not be necessary for imports made on or after 13, October 2017, because S. No. 2 of notification no. 69/2017-Cus of that date amends the basic notification 18/2015-Cus dated April 1, 2015, exempting the said countervailing duty on goods imported under advance authorisation. Can the notification 69/2017-Cus dated October 13, 2017 apply to advance authorisations or EPCG authorisations issued before that date? The notification applies to all imports made on or after October 13, 2017 under advance or EPCG authorisations, regardless of whether they are issued before or after that date. Business Standard invites readers’ SME queries related to excise, VAT and exim policy.

You can write to us at smechat@bsmail.in

Source: Business Standard

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GST harassment

The revenue secretary has admitted that it would take a year's time to stabilise the system. This refers to “GST rate structure needs rejig: Adhia” (October 23). The goods and services tax (GST) was introduced on July 1, 2017, with fanfare. Maybe the government was in a hurry to add a feather in its cap, or perhaps it wanted to nullify the backlash received post-demonetisation of Rs 500 and Rs 1,000 notes. As many found it difficult to comply with the provisions of the Act, the government thankfully made a few good changes in its provisions. The PM and the FM have also gone on record to say that the GST would undergo further changes as time demands. Now, the revenue secretary has admitted that it would take a year’s time to stabilise the system. All this goes to prove that the government had not done its ground work properly. Had the government accepted a few good suggestions (such as maximum rate of tax at 18 per cent) made by the Opposition parties before introducing a new tax regime altogether, the public could have been spared the harassment undergone so far and likely in future before the GST takes its final shape.

Source: Business Standard

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Textile park attracts Rs 3,020-cr investments

Korea-based Youngone Corporation, Welspun group and Gujarat-based Nandan Denim of Chiripal group have proposed to invest about Rs 2,450 crore in the newly inaugurated Kakatiya textile park in Warangal, among others. While the Korean company has proposed to invest about Rs 1,000 crore, Welspun and Nandan Denim will be investing Rs 750 crore and Rs 700 crore, respectively. The state government has signed memorandum of understanding (MoUs) with 13 companies, which are going to invest in the Kakatiya Mega Textile Park, Warangal. These companies are going to invest a total of Rs 3,020 crore in the textile park. The investments will create 22,350 jobs through direct employment and 66,000 jobs indirectly. Claimed to be the country’s largest textile park, the park is betting on the fibre-to-fashion concept. It is spread across 1,200 acres in its first phase and in total, 2000 acres at Shayampet, Chintapalli village. The park has plug-and-play factory sheds for production of clothes. An advanced level testing laboratory will be set up in the park. To control the pollution levels, the textile park will ensure zero liquid discharge facilities. The companies which signed MoUs with  the Telangana government include Suryavansi Spinning, Surya Uday Spinning Mills, Srinath Spinning Mills, Urbaknitt Fabs, Shivani Group, Ginni Filaments, The Swayamwar, Welspun Group, Yougone Corporation (overseas), Gokaldas Images, Nandan Denim (Chirpal Group), Shahi Exports, Jaycot Industries and GK Threads. Meanwhile, eight other companies — Suryalatha Spinning Mills, Seetharam Textiles, Suryalakshmi Cotton Mills, Sri Ram Spinning Mills, GMR Spintex, Vijayalaxmi Spitex, Ashtalaksmi Spinning Mill and GTN Industries — have also signed MoUs to invest Rs 380 crore in other districts of Telangana. These eight companies are expected to create 1,450 jobs.

Source: Financial Express

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Rupee struggles to gain momentum

ANZ Banking Group has reached a last-minute agreement to settle a case brought by Australia’s securities regulator accusing it of manipulating the bank bill swap rate The recovery in the rupee witnessed in the first two weeks of this month, came to a halt last week. The currency traded on a weak note all through the truncated week and fell, breaking below 65 to a low of 65.16 on Wednesday. The currency managed to recover from this low and closed at 65.02 on Monday, down 0.5 per cent for the week. With no major domestic data release scheduled this week, the movement in the US dollar would largely impact the rupee’s move. The dollar index has been stuck in a narrow range between 93 and 94 over the past three weeks. The index is currently hovering below the upper end of this range at 93.90. The bias is bullish as the price action on the daily chart reflects a bullish inverted head and shoulder reversal pattern. The neckline resistance is at 94.30, which is likely to be tested if the index breaks above 94. A strong break and a decisive close above 94.30 will confirm this pattern. Such a break will increase the likelihood of the dollar index targeting 95 or even higher in the coming weeks. Such a rally in the dollar index can keep the rupee under pressure for a fall to 66 levels. The European Central Bank (ECB) meeting on Thursday and the US GDP data release on Friday are the key events to watch for this week, which might create volatility in the dollar index.

Mixed action from FPIs

Following a muted September, foreign portfolio investors’ (FPIs) interest in Indian debt picked up this month. FPIs have bought $1.85 billion in the debt segment so far this month. On the other hand, FPIs continue to sell Indian equities. After selling about $4 billion in the previous two months, they have sold $695 million so far this month. If this selling spree spills over to the debt segment, the rupee could come under pressure.

 

Rupee outlook

The immediate outlook for the rupee is mixed. The currency can strengthen if it manages to break above 65. Such a break can see the rupee strengthening to 64.8 levels again. Further break above 64.8 can take the currency higher to 64.5 or 64.4 thereafter. However, the bullish outlook for the dollar index indicates that the upside in the rupee could be limited. It also leaves a strong possibility of the rupee eventually weakening in the short term. Immediate support for the rupee is at 65.20. A strong break below it can take the rupee lower to 65.5 initially. Further break below 65.5 will increase the possibility of the currency weakening to 66 levels thereafter. Such a move in the rupee will lead to a negative bias from a medium-term perspective as well. A strong fall below 66 will pile renewed pressure on the rupee for revisiting 67 levels over the medium term. But if the rupee manages to reverse higher from 66, it can continue to retain the 64-66 range for some more time.

Source: Business Line

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Gujarat declares Rs100 per 20 kg bonus for cotton farmers

The bonus will be paid over and above the MSP declared by the government and will be given to farmers who sell their produce to the Cotton Corporation of India. A farmer sprays pesticide in a cotton field. Gujarat produces three varieties of cotton whose MSPs range from Rs 804 to Rs 864 per 20 kg.(File) The Gujarat government has declared a bonus of Rs 100 per 20 kg for cotton to be paid to farmers over and above the minimum support price (MSP). The bonus of Rs 100 per 20 kg for cotton will help cotton farmers get remunerative prices for their produce, an official release quoted chief minister Vijay Rupani as saying on Sunday night. Rupani was in Vadodara to attend several programmes.

Source: Press Trust of India

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Cotton prices to trade sideways to higher: Angel Commodities

According to Angel Commodities,Cotton futures are expected trade sideways to higher on reports of lower than expected crop size, cci procurement and improved exports demand for Indian cotton may support prices if recent rains trigger significant damage.

Angel Commodities' report on Cotton

MCX Cotton Oct futures closed lower last week after three consecutive weekly rise, on anticipation that the arrivals may increase in coming weeks. Recent rains in the cotton growing states pressurize prices as it may improve production in the country. The prices have picked up earlier as arrival of new crop slowing down after the October rains, prices had increased marginally. However, prices have now stabilised as the cotton now available has higher moisture content. The Cotton Corporation of India is set to open its procurement centres in major cotton - growing states as it is believed that the prices may decrease below the MSP during the peak arrival season.

Outlook

Cotton futures are expected trade sideways to higher on reports of lower than expected crop size, cci procurement and improved exports demand for Indian cotton may support prices if recent rains trigger significant damage. However, expectation of good production and carryover stocks may pressurize prices.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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India and US Trade policy forum meet in Washington on Oct 25

 NEW DELHI OCT. 23-(PTI) Issues including visa greater market access for goods and intellectual property rights are expected to figure in the trade policy forum (TPF) meeting between India and the US on October 25 in Washington an official said. Commerce and Industry Minister Suresh Prabhu will attend the meet. After the Trump administration took power this would be the first formal interaction between trade authorities of the two countries. The last meeting was held in October here. The forum was set up in 2005 and the meeting is cochaired by the Indian commerce minister and the US Trade Representative (USTR) with an aim to expand bilateral trade and investment.

Source: Tecoya Trend

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In a first, 2 state universities to start hybrid Bt cotton seed production

MUMBAI: In a first, two state-run agriculture universities will start production of hybrid Bt cotton seeds from 2018. Scientists said this is the first such production by any state in India and hailed the development as a disruptor in the multi-crore market for genetically modified Bt cottonseeds in Maharashtra, one of the largest cotton-producing states. Mahatma Phule Krishi Vidyapeeth (MPKV) in Rahuri and Dr Panjabrao Deshmukh Krishi Vidyapeeth (PDKV) in Akola, after seven years' research, will start small-scale production in 2018 and expand as per market demands by 2019, senior agriculture department officials said. PDKV senior research scientist Dr T H Rathod said they had developed a Bollguard (BG)II Bt cotton seed and BGI Bt cotton seed and have got permission from the central government's Genetic Engineering Approval Committee (GEAC). State agriculture department permission is expected by the month-end. PDKV-JKAL-116, the Indian Bt variety they have developed, is undergoing field trials. Additional genes are added to cotton seeds to provide protection to cotton plants from attacks by bollworms, the most commonly found pests on cotton plants. These additional genes make the cotton seed variety a BT or biologically modified variety. BG-II was meant to be resistant to pink bollworms, a small, thin, grey moth with fringed wings, which are the most damaging pests that attack cotton crops in India. They have also developed Rajat seeds, a Bt BG-1 variety. "Field trials are on and central government certification is in place," said Rathod. He said they tied up with Maharashtra State Seed Corporation Ltd for multiplication of seeds and marketing. "Once government agencies come out with their own seeds, demand for private seeds is bound to dwindle," said Rathod. The seed has a production capacity of 30-35 quintals per acre. It has a 160-day crop cycle and is resistant to pests, said Rathod. Agriculture department officials said seeds manufactured by private companies were not proving to be very effective and seeking compensation from seed manufacturers was getting complicated. Nearly 41 lakh hectares of cultivatable area is under cotton, which is nearly 35% of the total cultivable area in Maharashtra. Nearly 96% cotton-growing farmers use BGII Bt cotton seeds for cultivation. Dr R W Gharud who is working on the project at MPKV, said their Phule-Swetambari seed, a BG II Bt cotton variety, is meant for irrigated land and its production will start from March 2018. He said they will then work on a seed variety for rain-fed land. "Rates for our seed may not be very different but being government-produced, it will bring certain credibility," said Gharud.

Source: The Times of India

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Textile processors, weavers oppose SMC’s waste collection project

Surat: The Surat Municipal Corporation (SMC) effort to raise money for the polyester fabric waste collection project has faced severe opposition from the textile sector. Textile processors and weavers in the industrial areas of the diamond city have registered strong opposition to the civic body's plan to raise money for a private agency for the waste collection project. The South Gujarat Textile Processors Association (SGTPA) has written to all of its 350 members in the city against giving a single penny to the civic body for the project. The office-bearers of SGTPA stated that the civic body has hired an agency for waste collection for which the processors and weavers will have to chip in funds. SGTPA said that the processors and weavers are not generating any sort of waste and that most of the waste of polyester fabrics known as 'chindhi' is generated by textile traders. "We strongly oppose the civic body's decision to hire an agency for collecting textile fabric waste from processing and weaving units. None of the processing and weaving units generate any sort of fabric waste. The civic body's south zone office has been asked to raise money from us for the project," said SGTPA president Jitu Vakharia. According to Vakharia, the processors and power loom weavers do not generate fabric waste. While weavers manufacture fabric out of the yarn, textile processors perform dyeing and printing of the fabrics and supply the stock to traders in textile markets. "It is in the textile markets that the cutting and sizing of saris and dress materials is performed. Even traders rarely dump leftover fabrics into the dustbins as they send most of the material to other states, where it is used in the manufacturing of pillows, mattresses, thread, etc," said Vakharia.

Source: The Times of India

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Major fire breaks out at yarn mill in India's Punbaj state

A major fire broke out at a hosiery mill in the northern Indian state of Punjab Tuesday, police said. "The blaze started this morning at the yarn mill near Shingar movie theater on Samrala Road at Shivajinagar in the state's Ludhiana city," a senior police official said. Though the fire has fully engulfed the entire four-storey building housing the mill, there have been no reports of any casualty yet, he said. "Some 12 fire tenders have been pressed into service to contain the flames. All those present inside the mill have been evacuated," the official said. However, there has been substantial damage to goods worth millions. Local TV channels showed footage of the raging fire at the building and reported firefighters tried to throw out heaps of yarn and cotton of the unit to stop the flames from spreading. A probe has been ordered into the incident, he said. Ludhiana is known as the "Manchester of India" for its vibrant textile industry. But fire incidents are common in the city. In April this year, there had been as many as six incidents of fire in factories.

Source: news.xinhuanet.com

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Sutlej Textiles and Industries Ltd adds longstanding US textile leader American Silk Mills to its international portfolio

Sutlej Textiles and Industries Ltd. (STIL) announced today the acquisition of Design Sales & Distribution (DS&D) business and brand of American Silk Mills (ASM) LLC based at Plains, Pennsylvania. The acquisition adds strength of this leading American boutique designer and distributor of residential and contract furnishing textiles to Sutlej's home textiles portfolio. ASM will continue to design, develop and market its products under the brand name of American Silk Mills thus furthering its legacy as a leader in this field for over 120 years. Founded in 1896, American Silk Mills remains among the oldest and most established American textile brand by designing, weaving and distributing innovative textiles for the residential, contract, transportation, and specialty markets. These products include innovative indoor/outdoor performance fabrics, fine jacquard textiles, multiple grades and styles of velvets, the highest quality silks, and Sensuede, an eco-friendly synthetic suede noted for its durability, cleanability and long-lasting comfort. ASM offers strategic fit on its strength of original designs based on American sensibilities, innate understanding of customer markets and a unique product portfolio that include dobby, jacquards, velvets, suedes using variety of fibers like rayon, linen, cotton, polyester, silk and acrylic. Mr. S K Khandelia, President, STIL conveyed that 'American Silk Mills offers great synergy to access the American home textiles market using a sound platform of design & development combined with Sutlej's scale and economics of production in India"."We are excited to partner with Sutlej Textiles." said Cynthia Douthit, President of American Silk. "Increased investments in our infrastructure, inventory positions, technology and creative capital will position us to continue as a design leader, allow us to service our customers more efficiently and create and source enduringly beautiful textiles." Shares of SUTLEJ TEXTILES & INDUSTRIES LTD. was last trading in BSE at Rs.95 as compared to the previous close of Rs. 93.7. The total number of shares traded during the day was 16359 in over 158 trades. The stock hit an intraday high of Rs. 95.95 and intraday low of 92. The net turnover during the day was Rs. 1539969.

Source: Equity Bulls

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Ghana : Help revive the cotton industry, Government urged

GNA - The Ghana Cotton Farmers Association has appealed to the government to revive the cotton industry to create job opportunities for unemployed people in the Northern Savanna Zone and the country. Osofo Patrick Adingtingah Apullah, chief of Ghana Cotton Farmers Association, said the agricultural sector employs many people, hence the need for more attention to be given to the sector. Osofo Apullah, who is also Chief of Nyankpala Zongo in the Tolon District of the Northern Region, was speaking in an interview with GNA at his palace at Nyankpala over the weekend. He said government should include the cotton/fibre industry in the Planting for Food and Jobs programme for the employment of many people in the Northern Savannah Zone and also include textile and jute industries in Kumasi, Juapong and Tema. He said there is the need for government to make the right investment as well as put in place strategies to empower cotton farmers, which would earn the country a substantial exchange in return. Osofo Apullah urged the public and farmers to desist from cutting down trees that protected the soil and also plant more trees to combat climate change as it was greatly affecting the agricultural sector. He appealed to all to embrace peace in the region to promote productivity saying “peace must be preached in homes, towns and cities across the country.”

GNA

Source: Ghana News Agency

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Uzbekistan increases cotton fiber processing

Uzbekistan, which aims at developing its textile industry, brought the internal processing of cotton fiber to 70 percent in 2017. This was stated by the chairman of the management board of Uzpahtasanoatexport holding company Akmal Kamalov at the opening of the 13th International cotton and textile fair in Tashkent on October 23, podrobno.uz reported. "If in 1991 the volume of fiber processing did not exceed 7 percent, then by 2017 this figure reached 70 percent. During this period, there was a significant, almost 30-fold increase in exports of light industry products," he said. An increase in domestic consumption of produced fiber is of great importance, according to Kamalov, who noted that the increase in the volume of deep cotton processing is realized due to the annual growth in the number of textile enterprises. "By 2020, more than 150 new projects in the field of light industry worth more than $2 billion are planned to be implemented in Uzbekistan," Kamalov stressed. Thanks to the development of production capacities, the export of finished goods has already exceeded $1.3 billion, he added. Uzbekistan will achieve full processing of cotton fiber in 2021, according to the Economy Ministry. At the same time by 2021 the production of textile and clothing and knitted products will increase by 2.2 times compared to 2016, including ready-made fabrics - 2.7 times, knitted fabrics - 3 times, knitted goods – 3.4 times, hosiery – 3.7 times. It is planned to increase the export of products by 2 times. One of the policy priorities of Uzbekistan, the world’s sixth-largest cotton producer, is further development of its textile industry. Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs. In the period 2010-2014, the textile industry of Uzbekistan received and spent foreign investments worth $785 million while 147 new textile enterprises with participation of investors from Germany, Switzerland, Japan, South Korea, the U.S., Turkey and other countries were commissioned. Export potential of these enterprises amounted to $670 millions. Currently, Uzbekistan continues to attract foreign investments for construction of textile enterprises in Uzbekistan. In late August, another Polish company Polcotton agreed to invest about $60 million in the construction of the textile complex in Uzbekistan. The future factory is expected to have a capacity of 10,000 tons of finished products per year and to generate as many as 1,200 new jobs. Previously, Uzbekistan and Russia agreed to further expand cooperation in textile industry which is a strategic centerpiece of the Uzbek economy. Particularly, they intend to create a "green corridor" for the supply of textile products.

Source:  Azer News, October 23, 2017)

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Africa’s cotton industry looks to the future

To describe cotton as ubiquitous is almost an understatement. The textile is so much a part of modern life as to be nearly invisible. From Egyptian cotton bed sheets (said to be the most luxurious in the world) to the towels you use after a shower or the undergarments, blue jeans, shirts and socks that you might wear – all originate from a small white boll, or seedpod, that is cultivated around the world. This makes cotton one of the world’s most important commodities, and the most valuable non-food agricultural crop. Africa is an important producer and the continent has a significant role further along the value chain as a manufacturer of apparel. Africa grows just under 10% of the world’s total cotton harvest, but unlike any other region it is the smallholder farmer, rather than large-scale plantations, that grow this crop. Cottonseed is also used to extract edible oil that is used, especially inWest Africa, in both animal feed and products like margarine. Out of the 12 leading African cotton-producing countries, eight are in West Africa. The rest of Africa’s cotton growing takes place among four zones along a north–south strip stretching from the Nile Valley to South Africa. The most important zone is that of the Nile Valley. Egypt has long been a leading African producer. The Origin Africa conference in Mauritius, organised under the aegis of the African Cotton and Textile Industries Federation (ACTIF), took place over two days in September and drew delegates from across the continent and further afield from Asia, the Americas, the US and Europe. The first day’s presentations were taken up with the issues concerning cotton production and the various international crop certification options. One of the principal organisations offering global cotton production standards is the Better Cotton Initiative (BCI). Its representative, Romain Deveze, described how the BCI is bringing an integrated approach to tackling the vulnerabilities of the complex supply chain to ensure the industry’s sustainability. The BCI works with about one million farmers, or 8.8% of the global total who grow the crop, to reduce the use of pesticides, synthetic fertilisers and water while increasing farmers yields and the take-up of organic fertilisers. These are important objectives, for, as the Environmental Justice Network has reported, cotton accounts for 26% of global insecticide releases – more than any other single crop. Almost 2kg of hazardous pesticides are applied to every hectare of land under cotton cultivation. These troubling statistics are just the latest chapter in the awful history of a crop that underpinned the transatlantic slave trade and caused millions of Africans to be abducted and subjugated to a life of hard labour in the cotton plantations of the southern US. The cotton industry became one of the world’s largest industries, and most of the world’s supply of cotton came from the US South, fuelled by the labour of slaves on plantations.

Even with the Union’s victory in the civil war, the fortunes of plantation slaves changed little. Many became sharecroppers, eking out a precarious living on a small plot of land growing cotton. From 1803 to 1937, the US was the world’s leading cotton exporter. Its cotton industry became a powerful political lobby, able to sway successive administrations to grant subsidies to cotton farmers. Cotton’s financial and political influence in the 19th century has been likened to that of the oil industry in the early 21st century.

Accessing the US market

By the end of the 1990s, the big four West African cotton farmers – Benin, Burkina Faso, Chad and Mali – had joined together to express their unhappiness at these unfair subsidies, but it was Brazil that had the financial muscle to take the US to the WTO, which found against the US and ordered the elimination of cotton production subsidies as well as the US agricultural commodity export guarantee programmes. While Marsha Powell, representing Cotton USA at the Mauritius conference, implied that US governentsupport to US cotton farmers was a thing of the past, a number of other delegates told African Business that US policy continues to skirt international trade rules. The result has been that, effectively, the US restricts competition from overseas cotton producers. Nevertheless, the African Growth and Opportunity Act (AGOA), has empowered African manufacturers to export clothing to the US tariff free. This has been driven by, in the main, Indian, Chinese and Turkish manufacturers switching their manufacturing to African countries. But there are moves by smaller African manufacturers to win valuable export market share. For example, the Nigerian Export Promotion Council organised half a dozen designers to travel to Mauritius and showcase their fashions at the trade show that followed the conference. Speaking to African Business, Muinet Atunnise of Atunnise Clothiers said that she would be returning to Lagos enthused by the reception her collection had received and determined to take advantage of the many international connections she had made. As far as the mass-market industry is concerned Kenya, Lesotho and Mauritius account for much of the apparel exports under AGOA. In 2014, Kenya exported $423m worth of apparel to the US, followed by Lesotho with $289m, Mauritius $227m and Swaziland $77m. According to Gail Strickler, assistant US trade representative for textiles and apparel, African textile and apparel exports to the US could potentially quadruple to $4bn over the next decade, creating 500,000 new jobs, through the renewal of the AGOA signed into law in June 2015.

Impact of new technologies

But the Origin Africa conference did far more than just discuss macro-economic trends. The second day’s proceedings included a debate on the fourth industrial revolution (essentially the application of new technologies to the industrial process) and its impact on the industry. As Jaswinder Bedi, the ACTIF chairman commented, harnessing new technologies at the right time and throughout the textile value chain is an essential element for the industry to continue to benefit Africa’s millions of cotton farmers. And speaking to African Business, Yousouf Djime Sidime, the permanent secretary to the Bamako-based Association of African Cotton Producers said that his organization was determined to both grow production and ensure farmers received a fair price for their harvests.

Stephen Williams

Stephen Williams is a freelance journalist, based in London. A specialist on Africa, his remit also includes the Middle East and North Africa. Williams currently works for a number of London-based print publications including New African magazine.

Source: African Business

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Pakistan : PM Exports Enhancement Package revised to give incentives to textile exporters

ISLAMABAD (APP): Ministry of Textile Industry has revised “Prime Minister Exports Enhancement Package” of incentives for textile sector exporters under which 50 percent of the rate of drawback of local taxes and levies shall be provided without condition of increment. The textile division has notified that duty drawbacks under this order shall be allowed for exports goods declaration (GDs) filed on or after July 1st, 2017 to 30th June, 2018 at the rate of 7 percent for garments,6 percent for made-ups,5 percent for processed fabrics,4 percent for greige fabric and yarn. The notification issued here on Monday stated that in pursuance of entry 7 of item 39 of Schedule II of the Rules of Business, 1973, the Prime Minister package of incentives for exporters approved by Economic Coordination Committee (ECC) of the Cabinet. ECC approved the incentives in order to provide duty drawback of taxes collected from garments, home textiles, processed fabric, greige fabric and yarn manufacturing cum-exporter units. Duty drawback of taxes order 2016-17, textile division make the order, namely: “Duty Drawback of Taxes Order 2017-18”. It extends to the whole of Pakistan including export processing zones and shall come into force at once. The duty drawbacks under this order shall be allowed for exports GDs filed on or after July 1st, 2017 to 30th June, 2018.

Source: Dunya News

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A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and consumer sewing thread, embroidery thread, and technical textiles, has unveiled a new recycled, air-entangled, polyester sewing thread, Magic using Repreve. Magic using Repreve provides eco-versatility for manufacturers of performance apparel, activewear, athleisure, and intimate apparel. Magic using Repreve incorporates Unifi’s Repreve fibre made from recycled plastic bottles, providing a highly sought-after eco-friendly performance sewing thread option for environmentally-conscious customers that is sized appropriately for the athletic wear and performance apparel markets. Recently, A&E launched Perma Core using Repreve joining Wildcat, significantly expanded its number of Zero-Waste-to-Landfill facilities to 16, and joined the Zero Discharge of Hazardous Chemicals (ZDHC) programme, thus continuing its leadership role in the areas of sustainability and social responsibility. Unifi, Inc. is a global textile solutions provider and one of the world’s leading innovators in manufacturing synthetic and recycled performance fibres. Made by Unifi, Inc., Repreve is the global leader in branded recycled performance fibres, transforming more than five billion plastic bottles into recycled fibre for new clothing, shoes, home goods, and other consumer products. (GK)

Source: Fibre2Fashion

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How Technology Is Shaping The Future Of Sustainable Fashion

Some of the most exciting developments in fashion aren't happening on the runway — they're happening in the lab. 3D rendering of a garment biofabricated using pigment-producing bacteria, by Faber Futures in collaboration with Ginkgo BioWorks. Photo: Atacac. "Technology is really sexy! For me it's better than a thigh-high split in a skirt." Stella McCartney may have delivered the line with a laugh while onstage at Vogue's Forces of Fashion conference earlier this month, but one got the sense that she was dead serious. The British designer was onstage speaking about ethical and sustainable fashion, and she quickly drew a connection between treating the planet well and updating the industry's old-fashioned — and incredibly wasteful, toxic and polluting — production methods. To her, incorporating new technology into that equation is an obvious choice. "The younger generations, this is like a no-brainer for them," she said. "If you're lucky enough to have a business, I think you have to approach it this way." McCartney's not the only one looking to Silicon Valley for ideas that could help catapult her company to the cutting edge of both design and environmental preservation efforts. From startups using bacteria to naturally dye fabric to established industry players using chemistry to close the recycling loop, a whole host of new discoveries are cropping up. Read on to learn about some of the most exciting developments that have the potential to change the future of fashion.

BACTERIA-PRODUCED DYES

To see the negative impacts that fabric dye can have on the planet, one need only look at the rivers in China and Bangladesh that bear the color of next season's clothing due to improper dye disposal. The amount of water waste involved in dyeing is also problematic. "A cotton T-shirt requires approximately 700 gallons of water to grow, produce and transport, with 20 percent or more of that water used in the dyeing process alone," explains Natsai Chieza via email. Chieza is the biodesigner behind Faber Futures and a designer-in-residence at Ginkgo Bioworks, where she is working on a method that uses bacteria-secreted pigments to dye fabric. The technique dramatically reduces water usage, requiring less than seven ounces of water to dye a one-pound piece of silk, and the pigment itself is naturally and non-toxically created by the bacteria. While there are still obstacles to overcome before the results Chieza is able to achieve in a petri dish will be replicable on a larger scale, the sustainable fashion opportunity is so great that she's confident there will be bacteria-dyed clothing on the market before long. "Interventions that tackle both water use and chemical use in the textile industry are incredibly rare, so this is an area of development many are watching very closely," she notes.

LAB-GROWN LEATHER

Leather may be durable and therefore not as disposable as many of fashion's favorite materials, but its large emissions footprint and the toxic chemicals involved in tanning make it far from a clear-cut choice for sustainability advocates. And while many argue that as a by-product of the meat industry, the leather industry inherently reduces waste, that logic doesn't hold for many others (especially animal rights activists). This is where Modern Meadow, a company that's "growing" leather in a lab using yeast fermentation to produce collagen, comes in. "The company was founded because our CEO and co-founder was concerned with the environmental impact of all the livestock that we were raising on the planet," Modern Meadow head of communications Natalia Krasnodebska tells Fashionista over the phone. "Just looking at the numbers, our population growth can't support the herds that we would need to match our current levels of consumption of meat and leather." Creating leather the Modern Meadow way eliminates the need for raising (and killing) animals, reduces waste by creating "hides" devoid of imperfections or uneven edges that need to be discarded, and cuts back on the negative impact of tanning by reducing the chemicals involved. The sustainability boons — as well as the design possibilities inherent in a material that's so customizable and new — have so far resulted in over 130 companies reaching out to Modern Meadow for collaborations. The first products featuring Modern Meadow leather will launch with brand partners in the luxury and activewear spaces next year.

KELP-BASED TEXTILES

Kelp grows faster than almost any organism on earth, including bamboo. So why aren't we harvesting it rather than harder-to-replace resources like trees, which are cut down en masse to create fabrics like rayon and viscose? If AlgiKnit has its way, we may soon make the switch. The NYC-based biomaterials research group, made up of former FIT and Pratt students who came together to compete for and win the first BioDesign Challenge award in 2016, has developed a yarn made of biopolymers extracted from kelp. Like wool or cotton, the material is durable enough for long-term wear but still ultimately biodegradable. The team hopes their kelp-based yarn might be able to take the place of petroleum-based synthetics someday."My hope for consumers is that they could be a little more open-minded about materials that exist out there," AlgiKnit team member Aleksandra Goseiwski says over the phone. AlgiKnit has produced one wearable garment, hand-knit by Gosiewski herself, but the team assumes it's still about a year away from creating a product that might be commercially viable. Still, they remain hopeful about the environmental impact kelp-based fabrics may have in the long run.

"On a global scale, we hope that this is something that can potentially reduce textile and water waste and eliminate greenhouse gases," Goseiwski says.

SYNTHETIC SPIDER SILK

Stella McCartney and Bolt Threads CEO Dan Widmaier with two models wearing spider silk designs from their collaboration. Photo: @stellamccartney/Instagram

Spider silk is an incredibly durable and elastic silk that's stronger than steel, and is inherently eco-friendly. But the fact that spiders will literally eat each other if they're kept in close quarters has meant that they can't be farmed like their gentler silk-spinning cousin the silkworm. As a result, spider silk textiles have been exceptionally rare throughout history, with the most significant outlier being a piece of cloth that took 70 people four years to make. A few startups have been trying to get around the problem by creating synthetic spider silk, with U.S.-based Bolt Threads releasing the first commercially available spider silk product in the world in March. This fall, the startup partnered with Stella McCartney to create a few synthetic spider silk pieces, one of which was showcased in MoMa's "Is Fashion Modern?" exhibition. The sustainability and cruelty-free appeal of the fabric are obvious, but the fact that it holds dye better than traditional silk is also appealing from a design perspective. It's all proof, as far as McCartney's concerned, that technology and sustainability make for a natural marriage — and that both should be a part of the ongoing conversation for anyone in fashion. "We are now really looking at tech as a company," McCartney remarked at the Forces of Fashion conference. "We are probably more aligned with what's happening in San Francisco than what's happening in the fashion industry."

CHEMISTRY-DRIVEN RECYCLING

The pursuit of a closed-loop fashion system — in which every component of a garment could be re-used at the end of its life — is ramping up, with numerous sustainability-minded brands now allowing customers to bring in old clothing for recycling. But the truth is that the technology doesn't yet exist to completely reuse old garments in their entirety, especially if the fabric is badly stained or ripped. That means that the multiple tons of clothing collected by well-meaning companies doesn't necessarily have anywhere to go. A recent breakthrough made by the Hong Kong Research Institute of Textiles and Apparel (HKRITA) in partnership with the H&M Foundation, a nonprofit funded by the same Swedish family that founded H&M, may begin to address that. HKRITA announced in September that it had successfully developed a method for separating out the cotton and polyester in poly-cotton blends that would allow both materials to then be recycled into new yarns. The process uses heat, minimal amounts of water and less than 5 percent biodegradable green chemical to separate the fibers. The polyester, in particular, experiences no quality loss as a result of the process. "Our involvement in the fashion industry is always with a full industry impact/open source perspective," H&M Foundation innovation lead Erik Bang tells Fashionista via email, noting that the technology is not being created for H&M exclusively. "If we succeed with scaling up and commercializ[ing] the technologies, we will essentially give them away for anyone to use."

Source: Fashionista

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