The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) welcomes wholeheartedly the new initiative of Ministries of Power & Textiles - SAATHI (Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries). MUMBAI OCT. 25— The Confederation of Indian Textile Industry (CITI) has called upon the Finance Ministry to reduce the GST on manmade fiber from 18% at present to 12% so that input tax paid on manmade fiber can be fully set-off at spun yarn stage. While lauding the government on revising GST rates for spun / filament yarns from 18% to 12% CITI in a letter to Mr. Arun Jaitely Finance Minister pointed out that there is an anomaly created between GST on Fiber (18%) and GST on Spun Yarn (12%) which has resulted into inverted duty structure and need to be addressed. CITI informed that global orientation is an important feature of Indian textile industry and exports constitutes about 30% of the industry output. Due to high incidences of taxes on manmade fiber the Indian textile exports remained confined to cotton based products. Similarly the manmade fiber based textile products have a very low share in domestic textile consumption also. To promote the consumption of manmade fibers in the country higher consumption of manmade based products is an essential condition and require a level playing field with other natural fibers CITI stressed. Under GST regime CITI said the textile value chain has been integrated which has facilitated the full adjustment of input tax credit in most part of the textile value chain. However in case of spun yarn made from manmade fiber the input tax paid on manmade fiber (raw material) remains unadjusted as tax paid on spun yarn (output) works out to be less than tax paid on raw material under the new GST rates. The GST rate of manmade fiber which is raw material for spun yarn is 18% and GST rate on spun yarn which is output is 12%. This way the GST on output is less than GST on input by a gap of 6%. The value addition from manmade fiber to spun yarn is not enough to generate sufficient value so that GST paid at the rate of 18% on raw material can be fully recovered by paying 12% GST on output stage. This has led to inverted duty structure at manmade fiber based spun yarn CITI pointed out Citing an example CITI noted that the sale price of one kg polyester viscose spun yarn is Rs.137. Presently there is 12% GST on manmade spun yarn which works out to be Rs.16.44/ kg. (12% of Rs.137). The cost of fiber used in making one kg of spun yarn works out to be Rs. 110.60 kg Based on 18% GST rate the GST paid works out to be Rs.19.91/kg. (18% of Rs.110.60) Further GST paid on other inputs used in manufacturing of one kg yarn works out to be Rs.2.16/kg. Taken together the total input tax credit works out to Rs.22.07/kg (19.91 +2.16) against GST paid on spun yarn of Rs.16.44/kg. Therefore Rs.5.63/kg (22.07-16.44) remained unadjusted GST which becomes part of the spun yarn cost and increase the price hereby distort the level playing field against manmade fiber based spun yarn CITI pointed out. CITI said that even historically the duty structure on manmade fiber and filament yarns has been same and the confederation lauds the government for reduction of GST from 18% to 12% on manmade filaments. Therefore manmade fiber should be taxed at the rate of 12%.CITI therefore has submitted that GST on manmade fiber may be reduced from 18% at present to 12% so that input tax paid on manmade fiber can be fully setoff at spun yarn stage. By Our Special Correspondent SRTEPC Chairman Mr. Narain Agarwal thanked Prime Minister Narendra Modi Union Minister for Textiles Mrs. Smriti Zubin Irani for launching such a special Scheme exclusively for decentralised Powerloom sector EESL to provide energy efficient Powerlooms equipment to small and medium units at no upfront cost Ministries of Power and Textiles have joined hands under a new initiative SAATHI (Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries). Under this initiative Energy Efficiency Services Limited (EESL) a public sector entity under the administrative control of Ministry of Power would procure energy efficient Powerlooms motors and Rapier kits in bulk and provide them to the small and medium Powerloom units at no upfront cost. The SAATHI initiative of the Government will be jointly implemented by EESL and the office of the Textile Commissioner on a pan-India basis. To kick start the implementation cluster wise demonstration projects and workshops will be organized in key clusters such as Erode Surat Ichalkaranji etc. The use of these efficient equipment would result in energy savings and cost savings to the unit owner and he would repay in installments to EESL over a 4 to 5 year period. This is the aggregation bulk procurement and financing model that EESL has successfully deployed in several sectors like LED bulbs Smart Meters and Electric Vehicles. The unit owner neither has to allocate any upfront capital cost to procure these equipment nor does it have to allocate additional expenditure for repayment as the repayments to EESL are made from the savings that accrue as a result of higher efficiency equipments and cost savings. The aggregation of demand and bulk procurement will also lead to reduction in capital cost benefits of which will be passed on to the Powerloom units so that their repayment amount and period would reduce. The Powerloom sector in India is predominantly an unorganized sector and has a large number of micro and small units which produce 57 percent of the total cloth in the country. There are 24.86 lakhs Powerlooms in this country most of whom use obsolete technology. With a view to upgrading the technology the Government of India has been implementing the INSITU upgradation of plain Powerlooms as part of Power Tex India under which plain Powerlooms are attached with process control equipment leading to higher productivity better quality and more than 50 percent additional value realisation. So far 1.70 lakhs plain Powerlooms have been upgraded under the scheme with a total Government of India subsidy of Rs. 186 crores.
Source: Tecoya Trend
The Confederation of Indian Textile Industry (CITI) has called upon the Finance Ministry to reduce the GST on manmade fiber from 18% at present to 12% so that input tax paid on manmade fiber can be fully set-off at spun yarn stage. While lauding the government on revising GST rates for spun / filament yarns from 18% to 12% CITI in a letter to Mr. Arun Jaitely Finance Minister pointed out that there is an anomaly created between GST on Fiber (18%) and GST on Spun Yarn (12%) which has resulted into inverted duty structure and need to be addressed. CITI informed that global orientation is an important feature of Indian textile industry and exports constitutes about 30% of the industry output. Due to high incidences of taxes on manmade fiber the Indian textile exports remained confined to cotton based products. Similarly the manmade fiber based textile products have a very low share in domestic textile consumption also. To promote the consumption of manmade fibers in the country higher consumption of manmade based products is an essential condition and require a level playing field with other natural fibers CITI stressed. Under GST regime CITI said the textile value chain has been integrated which has facilitated the full adjustment of input tax credit in most part of the textile value chain. However in case of spun yarn made from manmade fiber the input tax paid on manmade fiber (raw material) remains unadjusted as tax paid on spun yarn (output) works out to be less than tax paid on raw material under the new GST rates. The GST rate of manmade fiber which is raw material for spun yarn is 18% and GST rate on spun yarn which is output is 12%. This way the GST on output is less than GST on input by a gap of 6%. The value addition from manmade fiber to spun yarn is not enough to generate sufficient value so that GST paid at the rate of 18% on raw material can be fully recovered by paying 12% GST on output stage. This has led to inverted duty structure at manmade fiber based spun yarn CITI pointed out Citing an example CITI noted that the sale price of one kg polyester viscose spun yarn is Rs.137. Presently there is 12% GST on manmade spun yarn which works out to be Rs.16.44/ kg. (12% of Rs.137). The cost of fiber used in making one kg of spun yarn works out to be Rs. 110.60 kg Based on 18% GST rate the GST paid works out to be Rs.19.91/kg. (18% of Rs.110.60) Further GST paid on other inputs used in manufacturing of one kg yarn works out to be Rs.2.16/kg. Taken together the total input tax credit works out to Rs.22.07/kg (19.91 +2.16) against GST paid on spun yarn of Rs.16.44/kg. Therefore Rs.5.63/kg (22.07-16.44) remained unadjusted GST which becomes part of the spun yarn cost and increase the price hereby distort the level playing field against manmade fiber based spun yarn CITI pointed out. CITI said that even historically the duty structure on manmade fiber and filament yarns has been same and the confederation lauds the government for reduction of GST from 18% to 12% on manmade filaments. Therefore manmade fiber should be taxed at the rate of 12%.CITI therefore has submitted that GST on manmade fiber may be reduced from 18% at present to 12% so that input tax paid on manmade fiber can be fully setoff at spun yarn stage.
Source: Tecoya Trend
Even as the Revenue Secretary Hasmukh Adhia hinted at a complete overhauling of the rates under Goods and Services Tax (GST), the Gujarat-based tax professionals-joined by traders and businessmen have threatened of a state-wide stir against the ‘absurd’ system of return filing and ‘harassment’ under the new tax regime. Addressing media here on Wednesday, Varis Isani, president of the Gujarat Sales Tax Bar Association (GSTBA) said, “We are not opposing the tax rates. The bigger and more complex issue is the GST Return filing systems and illogical penalty mechanisms. At the time of introducing the GST regime, the top leaders including the Prime Minister had assured stakeholders that there will be no harassment and no arbitrary penalty. But those assurances proved worthless. It feels like a breach of trust.”
Demands
GSTBA has raised demands on easing the return filing systems, increasing the time duration and combining the two GSTR-1 and GSTR-2 besides immediate release of the blocked refunds. According to Isani, the return filing mechanism for GSTR-1 and GSTR-2 is extremely complex putting unnecessary burden on the professionals and their clients. It needs to be developed on the previous VAT/Sales Tax mechanism, where a single return was required with combined sales-purchase details and matching provisions. “On the other hand, the refunds payable to the traders has been pending for long,” said Isani adding that an estimated blocked refund amounts to as high as ₹60,000-65,000 crore in the state of Gujarat alone. “This is an extremely stressful situation as crores of rupees is blocked merely because of poor implementation of systems. We will begin the protest from October 27, when all tax practitioners in the State along with traders will approach their nearby CGST/SGST office and ask the help-desk to file their return and experience the pain we are passing through,” added Isani. The Association, which has garnered support from other tax professionals’ forums as well as trade chambers, will also submit memorandums raising their concerns before staging a dharna protest at all SGST/CGST offices in the state on November 6. Earlier professionals from South Gujarat Commercial Tax Bar Association (SGCTBA) had also threatened to boycott the filing of GST returns.
Source: Business Line
Germany and the UK will witness the highest absolute gains if the proposed Free Trade Agreement (FTA) between India and the European Union (EU) is concluded, states a study conducted by the Bertelsmann Stiftung of Germany. Speaking at a round table on EU-India FTA organised by BusinessLine in association with the Bertelsmann Stiftung, Deputy Head of Mission of the German Embassy in India, Jasper Wieck, said: “We are afraid that those opposed to the India-EU FTA will keep finding reasons to delay it.” “Some fear that the FTA will put domestic players at unease. But protecting existing investments is also a part of the FTA negotiations. I object to the notion that an FTA would put the domestic auto industry in India at risk from German counterparts.” The study also suggested that if the UK exited the EU, India will stand to lose almost 21 per cent of the proposed gains from the FTA, which is officially called the Broad Based Trade and Investment Agreement (BTIA). As a result, India will then have to negotiate a separate trade pact with the UK to compensate for the losses, the study said. Counsellor, Trade & Economic Affairs, EU Delegation in India, Marika Jakas, said, “We are keen on an FTA with India. The EU wants more market access in India for textile and agriculture sectors. There are very few bilateral investment treaties that have not yet expired. We have a very good reason to get FTA negotiations going to protect existing investments.” However, Jakas said all sticky issues will be discussed when the chief trade negotiators from both sides meet next month to take stock of the matter and how to kickstart the stalled talks.
Data adequacy issue
On the controversial issue of data adequacy, one of India’s long-standing demands, Jakas said it cannot be discussed under the FTA as per EU rules. She said the issue of granting India ‘data-secure’ status can only be negotiated separately. Arpita Mukherjee from ICRIER stated that for a successful conclusion of any trade agreement, it is imperative for all the line ministries to also take part in the ongoing negotiation and not just leave it to the Ministry of Commerce and Industry. For example, she said, when sensitive matters such as market access for agricultural items are being discussed, it is critical that the Agriculture Ministry gets involved in the talks. According to Ranja Sengupta of the Third World Network, issues concerning labour and environmental standards can be discussed under a broader gambit of sustainable development. For democracies, FTAs are not merely a function of economic benefit, BusinessLine Editor R Srinivasan said. “The fundamental challenge is that agreements happen when the leadership feels it can politically sell it. For Prime Minister Narendra Modi, it will be difficult to sell an FTA with the EU as domestic businesses will say it increases competition and can lead to job losses,” he pointed out.
Source : Business Line
MUMBAI: Expectations of an improvement in the financial performance post implementation of goods and services tax have come true. According to data provided by Capitaline on an initial set of 102 companies (excluding banks, financial services, metals and oil and gas), which have announced their September quarter results, performance has improved year-on-year compared to the June quarter, especially on the profitability front. Net sales have grown at a slower pace, at 12.4 per cent y-o-y in Q2 compared to 13.6 per cent in the June quarter as some sectors had seen higher demand in the June quarter amid de-stocking ahead of GST. Also many information technology companies have reported weak topline growth. However, operating profit and adjusted net profit have risen by 17.6 per cent and 7.3 per cent y-o-y respectively in Q2, better than the 4.1 per cent and 5.3 per cent in Q1, respectively, due to relatively benign raw material costs and other overheads. India Inc has not only come off well in terms of GST but it seems to be moving on from the pains of demonetisation. Net sales have grown 13.03 per cent in the first half of FY18 compared to 10 per cent in FY17. However, improvement in operating profit growth has been at a slower rate, at 11 per cent in H1, versus 10 per cent in FY17, as costs were higher y-o-y in the June 2017 quarter. Adjusted net profit growth also slowed down to 6.3 per cent in first half compared to 9.7 per cent in FY17 as fixed costs such as interest and depreciation shot up in Q2.
Source: Business Line
Revenue Secretary Hasmukh Adhia has said in an interview that “there is need for some rejig in rates” of the goods and services tax (GST). In what seems to be a candid admission of how the execution of the GST in the past four months has been bedevilled with many flawed ideas, Mr Adhia has also underlined the need for harmonising rates for items belonging to the similar categories of goods and services. The burden of compliance on small and medium businesses and on the common man, he said, would be brought down wherever it had proved to be onerous. These statements are reassuring, coming as they do from Mr Adhia, who is also the ex officio secretary of the GST Council. While the government deserves to be complimented for launching the GST, there is little doubt that its execution has been poor, giving rise to teething troubles many of which could have been avoided. The recognition that flaws in the execution have to be fixed, therefore, is to be welcomed. Initially, the problems arose because of too many rates and exempted categories, which made the GST imperfect and vulnerable to pressure from various industry lobbies seeking preferential tax treatment for themselves. Further complicating the GST roll-out was the lack of adequate advance preparation, as a result of which the GST Network, or GSTN, did not have the required time to build a technology backbone that was robust and free from glitches. GSTN representatives have been on record admitting that there would have been no problems if they had more time and the rules of the GST had been finalised a few weeks in advance, thereby giving them an opportunity to test the network before launching the tax system. Procedures for filing of returns - as many as three in a month - and the requirement of matching of invoices before claiming input tax credit added to the compliance burden. Determination of different rates for goods and services with marginal differences also contributed to the taxpayers' woes. More confusion was created with the announcement that the GST would be extended to real estate, a sector already plagued by a slowdown. To be sure, a few corrective steps have been taken in the last few weeks in response to complaints the GST Council has received. The idea of introducing eway bills to track the movement of goods from their points of sale has been deferred till next year. Tax rates on a few items have been rationalised. The threshold for availing the composition scheme that reduces the compliance burden has now been raised from an annual turnover of Rs 75 lakh to Rs 1 crore. Clarifications have been issued to suggest that only after amending the Constitution can real estate be brought into the GST framework. However, these steps are only half-hearted measures that will merely act as short-term palliatives. Trade and industry will need more clarity on the road map for e-way bills, the coverage of the composition scheme and on how real estate will be treated in the new tax system. There is no reason, for instance, why the threshold of annual turnover for the composition scheme should not be further raised. And if businesses with a turnover of up to Rs 1.5 crore can be allowed to file returns every quarter, there is no reason why this system should not be extended to all taxpayers. Similarly, the condition of matching invoices before claiming input tax credit needs to be reviewed as the current system is complicated. If the idea is to make the GST a good and simple tax, the GST Council should consider reducing the number of tax slabs apart from undertaking a proper overhaul of the procedures that have increased the compliance burden.
Source: Business Standard
HYDERABAD: From Gujarat's textile hub Surat, hand looms and textiles workers are headed home to Telangana state. A large number of weavers from Sircilla in Karimnagar district and other parts of Telangana state work in Surat. They had left their homes decades ago. Responding to a call given by chief minister K Chandrasekhar Rao, weavers are showing interest to return to work in Telangana as employment opportunities have been promised. At a huge public meeting that he addressed in Warangal on October 22, KCR had invited those from Telangana who had gone to Surat to work there to return home. The CM spoke after laying the foundation stone for the Kakatiya Mega Textile Parkin Warangal. Some textile workers from Surat met industries minister K T Rama Rao at Pragathi Bhavan, camp-office of chief minister K Chandrasekhar Rao. They expressed their happiness at the government taking interest in textile workers. They said the workers and their families had been constrained to leave home and go to Surat and other places to eke out their livelihood. They said this was the first time that a government had given a thought about asking them to return and creating employment opportunities for them. They said a large number of hand loom workers were eager to come back to Telangana from Surat and Bhiwandi in Maharashtra. K T Rama Rao advised the workers to equip themselves better in order to be able to meet the employability requirements. The minister also urged those who have set up small industries at different places to think of coming to Telangana where a positive atmosphere has been created.
Source : Times of India
Cotton trade in Adilabad Agriculture Marketyard remained suspended on Wednesday owing to farmers staging a day-long protest on the restrictive moisture content rule. The events along the day included the farmers supported by opposition parties blocking the gate of the marketyard and staging a two-hour long rasta roko near Punjab Chowk in town demanding purchase of cotton irrespective of the moisture content. Telangana Pradesh Congress Committee general secretary G. Sujatha, who was with the protesting farmers all day continued with her hunger strike even in the night pitching a tent in front of the yard demanding purchase of cotton which had arrived from different parts during the day. Leaders from the opposition parties, including the Left and BJP, had left the scene late in the afternoon.
Dharna
Trading was suspended within a few minutes of its opening around 9 a.m. as private traders tried to deduct a heavy amount as the produce displayed a moisture content of 20 % by weight. This angered the farmers who said it was a natural phenomenon and purchasers should extend the lower percentage limit of moisture content from 8 to 12. The farmers sat on a dharna at the gate which had the incoming tractors, pickup vans and lorries stranded outside the yard. The farmers shouted slogans denouncing Chief Minister K. Chandrashekhar Rao, Forest Minister Jogu Ramanna and Adilabad Collector Buddha Prakash M. Jyoti for not intervening to protect their interest. It may be recalled that Mr. Ramanna did not turn up at the marketyard for inauguration of soyabean trading as scheduled apparently to skirt trouble.
Blame opposition
At a press conference later, he severely criticised the opposition parties, especially Ms. Sujatha for instigating farmers. Joint Collector K. Krishna Rao tried to negotiate with the farmers and traders for over five hours without a result. This had a section of the agitated farmers rushing towards Punjab Hotel Chowk and blocking the traffic. The protesters stayed put at the marketyard hoping the administration to order the private traders to purchase the arrived produce. The imbroglio however, continued until the report was filed.
Source: The Hindu
SURAT: Tarachand Kasat, who spearheaded the agitation of the textile traders against GST, has resigned from primary membership of the city BJP. Kasat sent a letter to city BJP chief Nitin Bhajiawala stating that he was upset with the union government at the centre for ignoring genuine demands of the traders community, who have stood by the party since 1982. Being the convener of the Textile GST Sangarsh Samiti (TGSS), Kasat had led the agitation of the textile traders in July. Soon after the GST was implemented on July 1, the TGSS and the Federation of Surat Textile Traders' Association (FOSTTA) jointly called for an indefinite bandh in the textile markets from July 3. Following the successful bandh in all the 165 textile markets, the textile traders participated in a mammoth rally on July 8. In his letter to Bhajiawala, Kasat stated he was an active BJP worker since last 32 years. Despite his loyalty to the party, the BJP-led government at the centre ignored the demands of the textile traders, who have been the largest vote bank of the party in the Majura Gate assembly constituency. As the BJP government has not done justice to the traders, he will be staying with the traders. Kasat said, "If the party cannot fulfil the traders' needs, I can't stay with it. I remember those days when former Prime Minister Atal Bihari Vajpayee had visited Surat in 1982 and we had given Rs 11 lakh donation to the BJP. The traders have always been with the BJP, but now they are not."
Source: Times of India
Birla Century, a unit of Century Textiles & Industries Ltd., has become the first manufacturing plant in India to bag LEED & MIG certifications for sustainable textile production. Keeping in view clean manufacturing and sustainable drive among world leaders of textile industry, Birla Century has always been committed towards safe & sustainable manufacturing.This is the first manufacturing project in India to achieve LEED v4 certification (gold) and the second manufacturing project to achieve LEED EBOM certification worldwide from United States Green Building Council. LEED v4 is the most rigorous global sustainability certification and is significantly harder than the previous ones LEED v3. The Made in Green (MIG) tag (a web-based QR code system) by Hohenstein, Germany indicates that labelled textiles are not only tested for harmful substances but also manufactured in environmentally friendly, safe and socially responsible workplaces. The MIG tag offers visibility to every component of the production system and can be seen by brands/retailers/customers across the globe. Labelled products can be easily traced and tracked, and provides reliable Information to consumers who want to make more sustainable personal purchase decisions. The advantages of the certifications are protection of environment, socially responsible and safe workplace, efficient & prosperous textile value chain, total transparency, benchmarking of products, sustainable use of materials and resources and eco-friendly production."The Oeko-Tex endorsement is a testament to our commitment to sustainable production practices. It allows us to highlight our sustainability credentials to our customers, suppliers and other stakeholders in a credible manner. For our customers in particular, this establishes a firm basis for placing more trust in us as a responsible textile producer," president RK Dalmia said. "Birla Century is committed to develop innovative products and processes that are safe for the consumer as well as the environment through product benchmarking, sustainable use of materials and resources, and eco-friendly manufacturing practices. We have also decided to identify parts of our products with the MIG tag," Dalmia added. “The STeP certification has established a firm basis for placing more trust in the company as a responsible textile producer, The green certifications will provide further impetus to the company’s sustainable journey and help it stand out from the competition” Dalmia concluded. (RR)
Source : Fibre2fashion
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$ 56.79 per barrel (bbl) on 25.10.2017. This was higher than the price of US$ 55.97 per bbl on previous publishing day of 24.10.2017.
In rupee terms, the price of Indian Basket increased to Rs. 3699.13 per bbl on 25.10.2017 as compared to Rs. 3633.63 per bbl on 24.10.2017. Rupee closed weaker at Rs. 65.14 per US$ on 25.10.2017 as compared to 64.93 per US$ on 24.10.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 25, 2017 (Previous trading day i.e. 24.10.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
56.79 (55.97) |
|
(Rs/bbl) |
3699.13 (3633.63) |
|
|
Exchange Rate |
(Rs/$) |
65.14 (64.93) |
Source: PIB
Hanamkonda: Distressed at lack of profitable price and loss of yield, cotton farmers across erstwhile Warangal district are either destroying standing crops or committing suicide. The government fixed support price for cotton at Rs 4,320 per quintal, majority of farmers are getting only Rs 1,500 to 2,000 per quintal as the traders are rejecting to pay the support price because the produce is damaged. The Cotton Corporation of India (CCI) which is supposed to come to the rescue of the farmers by purchasing the produce has remained inactive and not seen engaged in procurement, the farmers are alleging. With the commencement of arrival of cotton at Enumamula Agriculture Market the CCI has purchased just 23 quintals on Monday and after that there is no procurement by it. Though the support price is Rs 4,320 the price offered by the Corporation is Rs 4,190 per quintal. The price is being offered by the traders at the market is much worse. “With the CCI absence the traders are exploiting us. I have brought 25 bags of produce. The price the traders offered me is only Rs 2,200 per quintal” lamented a farmer called Bhukya Ram Naik of Narsampet. The prices offered to cotton are varying between Rs 1,500 to 3,500 and very few farmers are offered price above Rs 4,000 and it is a rare case. The reason the traders giving for the low prices is poor quality and high moisture content. But they are doing the same with good quality cotton as well, he noted. The market high grade secretary V Srinivas maintained that in all CCI 18 procurement centres have been set up across erstwhile Warangal district. In addition to that the procurement is also being made by 58 technically qualified ginning mills. The CCI is ready to offer the support price even as the moisture content is above the prescribed limit of 8 to 12 per cent, provided the produce is not discoloured and is of good quality, he added. But sadly, such cotton produce in this season has become a rarity. There is no information to the farmers about such CCI centres. The CCI and the market officials failed to campaign about procurement centres, complained a farmer K Narsaiah of Parkal and the same is the complaint of many others. Meanwhile, farmers are destroying standing crops as hopes of gainful yield dashed due to worms and inclement weather. “If I try to sell the produce I may not even recover the labour charges” said a farmer Mandati Indraiah of Kothapet near Warangal, who destroyed cotton crop on his three acres leased land. On the other hand, the news of suicides by cotton farmers is becoming a regular phenomenon. On Wednesday cotton farmer called Banoth Krishna committed suicide at Pilliguntla thanda of Thorrur mandal in Mahbubabad district as the crop sown in five acres of land is fully damaged. Incidents like this may become rampant, feared farmer leader K Rajeshwar Rao.
Source: The Hans India
Cotton prices in Maharashtra have firmed up to Rs 4,600-4,700 per quintal after the Gujarat government announced a bonus of Rs 100 per 20 kg for cotton (Rs 500 per quintal) to be paid to farmers. According to Jain, cotton from Khandesh is of superior quality while that from Gujarat is poor in comparison. Cotton prices in Maharashtra have firmed up to Rs 4,600-4,700 per quintal after the Gujarat government announced a bonus of Rs 100 per 20 kg for cotton (Rs 500 per quintal) to be paid to farmers. The bonus will be paid over and above the minimum support price (MSP) declared by the government. It will be given only to those farmers who sell their crop to Cotton Corporation of India. With traders from Gujarat making a beeline for cotton from Khandesh — the major cotton growing belt in the state — ginners in the region are finding it difficult to get cotton for their units. Most units are barely getting 40% of the installed capacity of cotton and the demand from Gujarat has led to the rise in prices, Pradeep Jain, president, Khandesh Gin/Press Factory Owners Association said. Cotton prices were around Rs 4,400-4,500 per quintal and prices have now risen following the announcement of the Gujarat government, he pointed out.Since the farmers are finding it more remunerative to sell cotton to traders, ginning units are finding it difficult to source cotton for their units, he said. Gujarat and Khandesh are geographically close and as cotton begins arriving into the markets of Khandesh well before Dussehra, traders from Gujarat find it more remunerative to purchase cotton from this region, industry sources said. According to Jain, cotton from Khandesh is of superior quality while that from Gujarat is poor in comparison. Therefore, traders purchase cotton from Maharashtra and mix it along with cotton from Gujarat to get a better price, he revealed. The association has been demanding a tax on the movement of cotton outside the state without much success, he said. Moreover, traders also end up moistening cotton purchased from Khandesh and since they do not have to pay any VAT or duties, they end up making a profit of nearly Rs 25,000 per truck, he alleged. Around 4,000 to 5,000 quintals of cotton are taken to Gujarat on a daily basis.Maharashtra processes about 80 lakh bales annually and has a capacity of producing 1 crore bales. Around 60,000 labourers are working in cotton factories in the state and majority of the units are located in Marathwada region.
Maharashtra cooperation minister Subhash Deshmukh has directed Agriculture Produce Market Committees ( APMC) to commence online registrations of farmers for the purchase of cotton from October 18 for the cotton season of 2017-18. Cotton MSP has been raised by Rs 160 per quintal to Rs 4,020 per quintal for medium staple cotton and `4,320 per quintal for long staple cotton. CCI and Nafed are the two agencies appointed by the government to extend the necessary marketing support to the cotton growers in selling their cotton produce at most competitive prices in the various market yards in all cotton-growing states. These in turn appoint sub- agencies to procure cotton at the local level as well. Cotton Corporation of India (CCI) chief MM Chokalingam had said that cotton prices have not reached MSP levels and were at Rs 4,320 per quintal. The total production for the season of 2017-18 is likely to touch 370 lakh bales as against 345 lakh bales for the previous season. As per the agriculture ministry, cotton had been sown on 111.55 lakh hectares till July 28, as against 92.33 lakh hectares witnessed for the same time last year, thereby indicating an increase of close to 21 % acreage.Maharashtra has registered kharif cotton sowing of over 38.47 lakh hectares, while in Gujarat the area stood at 25.84 lakh hectares.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1349.03 |
USD/Ton |
0% |
10/25/2017 |
|
VSF |
2328.78 |
USD/Ton |
-0.32% |
10/25/2017 |
|
ASF |
2652.85 |
USD/Ton |
0% |
10/25/2017 |
|
Polyester POY |
1303.81 |
USD/Ton |
0% |
10/25/2017 |
|
Nylon FDY |
3572.30 |
USD/Ton |
0.85% |
10/25/2017 |
|
40D Spandex |
5953.84 |
USD/Ton |
0% |
10/25/2017 |
|
Polyester DTY |
5697.59 |
USD/Ton |
0% |
10/25/2017 |
|
Nylon POY |
1537.45 |
USD/Ton |
0% |
10/25/2017 |
|
Acrylic Top 3D |
3316.06 |
USD/Ton |
0% |
10/25/2017 |
|
Polyester FDY |
2788.51 |
USD/Ton |
0% |
10/25/2017 |
|
Nylon DTY |
1605.27 |
USD/Ton |
0% |
10/25/2017 |
|
Viscose Long Filament |
3677.81 |
USD/Ton |
0% |
10/25/2017 |
|
30S Spun Rayon Yarn |
2969.38 |
USD/Ton |
-0.51% |
10/25/2017 |
|
32S Polyester Yarn |
2019.78 |
USD/Ton |
0% |
10/25/2017 |
|
45S T/C Yarn |
2878.94 |
USD/Ton |
0% |
10/25/2017 |
|
40S Rayon Yarn |
2441.83 |
USD/Ton |
0% |
10/25/2017 |
|
T/R Yarn 65/35 32S |
3150.26 |
USD/Ton |
-0.48% |
10/25/2017 |
|
45S Polyester Yarn |
2426.75 |
USD/Ton |
0% |
10/25/2017 |
|
T/C Yarn 65/35 32S |
2155.44 |
USD/Ton |
0% |
10/25/2017 |
|
10S Denim Fabric |
1.42 |
USD/Meter |
0% |
10/25/2017 |
|
32S Twill Fabric |
0.88 |
USD/Meter |
0% |
10/25/2017 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
0% |
10/25/2017 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
10/25/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
10/25/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15073 USD dtd. 10/25/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
VietNamNet Bridge - A number of yarn, weaving and dyeing projects have restarted after a period of postponement due to the US withdrawal from the Trans-Pacific Partnership (TPP). However, the textile & garment industry still faces difficulties. Vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, TPP, textile & garment industry, Vitas Trillions Enterprise, an investor from Brunei, which has a dyeing and weaving factory in Tan Duc IZ in Long An province, has asked for five more hectares of land in the IZ to scale up its production. Long Thai Tu Yarn, a South Korean enterprise, has decided to invest $50 million more to expand the workshop in Long Khanh IZ in Dong Nai province. In Binh Duong province, Taiwanese Far Eastern has registered additional investment capital of $485.8 million, raising its total investment in Bau Bang IZ to $760 million after two years of operation. A representative of the group admitted that it registered investment in Vietnam in 2015 to take full advantage of TPP. However, the manufacturer won’t change its plan even though the US withdrew from the agreement. A number of yarn, weaving and dyeing projects have restarted after a period of postponement due to the US withdrawal from the Trans-Pacific Partnership (TPP). According to the Foreign Investment Agency (FIA), the project registered by Far Eastern is among five projects with largest registered investment capital licensed in the first eight months of 2017. Unlike three years ago, there have been not many large-scale new FDI projects in the textile & garment sector this year. However, investors are expanding their operating projects. Some Vietnamese enterprises have also stepped up investment. Bao Minh Textile has invested $75 million in a project to make high-quality cloth in Nam Dinh, expected to become operational by March 2018. According to Vu Duc Giang, chair of Vitas (Vietnam Textile & Apparel Association), the investment capital poured into the textile & garment sector this year has been $2 billion. Though enterprises no longer look forward for the tax cut to zero percent, Vietnam remains a big garment exporter globallyVietnam textile & garment export turnover in the first seven months of the year reached $17 billion, up by 9.94 percent over the same period last year. Vitas, noting that the input material imports increased by 18.76 percent, valued at $11.1 billion, has predicted that total export turnover in 2017 may exceed the target of $30 billion. According to Vitas, besides TPP, Vietnam’s textile & garment industry still enjoys benefits from other FTAs, including ones with the EU, South Korea and Japan. Vietnam now holds only 3 percent of the market share in the EU, which means it still has opportunities to boost exports to the market. The Ministry of Industry and Trade has warned that export markets have increased their trade remedies against Vietnam’s products. India imposed a tax of 35-45 percent on Elastomeric Filament Yarn.
Source: Vietnam Net
Exports of garments and footwear products will grow by five percent this year, with similar growth rates expected for the next five years, a representative of the Garment Manufacturers Association in Cambodia (GMAC) said yesterday. Ken Loo, the secretary-general of GMAC, said garment exports will be expanding at a rate of five percent by the end of the year, adding that he expects similar growth in coming years if certain issues hindering the industry are addressed. Issues now hampering the sector are high production costs, low productivity and access to a limited number of markets, Mr Loo said. Workers at a local footwear factory. KT/Ven Rathavong “If we take care of these issues, the industry will continue to grow,” he said. “When the minimum wage is raised to $170 in January, more factories will encounter difficulties if things don’t change. We hope there is a change in productivity, a reduction in the cost of doing business and new governmental policies to help investors,” he added. Exports in the sector already increased six percent during the first nine months of the year, compared with the same period in 2016, Mr Loo said. According to Kao Kosal, the director-general for trade support service at the Ministry of Commerce, Cambodia’s total export volume reached $9 billion from January to September this year. Eighty percent of that trade consisted of garments or footwear. Mr Kosal, speaking during the Cambodia Textile Summit, said the government is working on getting access to more markets for locally manufactured garments, as well as negotiating more favourable trade deals with the European Union and the US. Twenty-five new garment factories have begun operations since the beginning of the year, but 53 have closed, alleging high costs as the reason for discontinuing operations, according to GMAC’s figures. Exports of garments and footwear products rose 7.2 percent last year, reaching $7.3 billion.
Source: Khmer Times
Export earnings from the garments sector in Myanmar are likely to exceed $3 billion this fiscal with the European Union topping the list for garment export orders, followed by Japan, South Korea and other countries, according to statistics compiled by the Myanmar Garment Entrepreneurs Association (MGEA). Garments constitute 16 per cent of its total exports. Myanmar’s garment units operate on the cutting-making and packaging (CMP) system and are striving to transform into the free on board (FOB) system. The government has also received several investment proposals in the garments sector, especially from China, according to a report in a Myanmarese newspaper. Until mid-September of fiscal 2016-2017, the sector earned nearly $714.24 million, up nearly $336.42 million compared with the same period the previous fiscal. Myanmar earned more than $1 billion from garment exports between April and early September this year, making apparel the second leading item in the export sector, according to the country’s commerce ministry. Garment exports were estimated to be worth $2 billion in fiscal 2016-17. (DS)
Source: Fibre2Fashion
Uzbekistan, the world’s sixth-largest cotton producer, aims to further increase incomes to the national economy by exporting this strategic crop. Uzbekistan has signed contracts for the export of finished textile products and semi-finished products for more than $1 billion following the 13th International Uzbek Cotton and Textile Fair. Large contracts were signed with companies from Russia, Turkey, South Korea, Singapore, Moldova and other countries. Representatives of foreign purchasing companies noted the quality and price parameters of Uzbek textile. At the same time, the process of contracting continues, and more accurate figures for exports will appear later. The same applies to data on cotton fiber contracting. Last year, Uzbekistan signed contracts for the sale of textile products for 550,000 tons of cotton fiber worth more than $1.32 billion. In general, the 76th plenary meeting of the International Consultative Committee for Cotton and the XIII International Uzbek Cotton and Textile Fair will last until Friday, when the final figures will be announced. This year around 1500 specialists from more than 50 countries take part in the events. Uzbekistan will achieve full processing of cotton fiber in 2021. By 2020, the capacity of local enterprises will ensure the full processing of cotton produced in Uzbekistan, which can lead to a significant decrease in the export supplies of this crop. Only in 2017, the country intends to bring internal processing of cotton fiber to 70 percent. 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 fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber. 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.
Source: Azer News
The EU4Business Support to Small and Medium Enterprises (SMEs) Development in Armenia (SMEDA) project has invited applications from companies, experts or consortia for a sectoral study of the textile, apparel, leather, shoes, and fashion design businesses in Armenia. The study will comprise mapping, analyses and roundtables and workshops with stakeholders. The deadline for applications is November 8, according to a press release from EU4Business. The European Union’s EU4Business initiative helps SMEs with finance, support and training with assistance from organisations, such as the European Bank for Reconstruction and Development and the European Investment Bank. The textile and apparel industry is one of the 11 strategic export-oriented sectors in Armenia. However, SMEs in that sector operate far below capacities and their products lack competitiveness in regional and international markets. The Armenian Government considers the revival of the sector as a priority. The study will improve the strategy of the sector and strengthen cooperation among companies by establishing a cluster.
Source: Fibre2Fashion
Global yarn production and fabric output increased in the second quarter and is expected to stay stable in the third, increasing in the last three months of the year, according to the International Textile Manufacturers Federation quarterly report. Global yarn production rose 11 percent in the second quarter compared to the previous three months, led by a 12 percent gain in Asia and an 11 percent increase in Brazil. Yarn production decreased 10 percent in the U.S. and 18 percent in Africa in the same period. Overall, global yarn production was slightly higher than year-ago levels, ITMF said. Global fabric production improved nearly 9 percent in the quarter, with a 10.4% increase in Brazil, a 9.8% gain in Asia and a 9.2% hike in Africa. Overall, global fabric output rose 4 percent compared to the second quarter of 2016. Global yarn stocks fell 1 percent in the quarter, as Asia, Europe and Brazil saw their yarn inventories increase 0.7%, 2.3%, and 11.5%, respectively, but the world average was driven down by a 12 percent decrease of yarn stocks in Egypt. The stocks’ improvement of 13 percent in comparison to the year-ago period included declines of 40 percent in Brazil and 3 percent in Europe, balanced by increases of 10 percent in Asia and 112 percent in Egypt. Worldwide fabric stocks rose 3.3% in the period, driven by a 23 percent increase in Brazil. Global fabric inventories in the quarter decreased 8 percent compared to a year earlier, with Brazil falling 30 percent, Europe rising 7 percent and Asia and the U.S. fairly stable. European yarn orders fell 7 in the period from the first quarter, with reductions of 6 percent and 4 percent recorded in Brazil and Asia, respectively. A 9 percent increase in global fabric orders quarter to quarter was driven by a 13 percent gain in Brazil and 16 percent rise in Egypt. During the quarter, fabric orders were stable in Asia and down slightly in Europe. ITMF said estimates for the third quarter “indicate a stable trend in both global yarn and fabric production,” while for the fourth quarter “the global outlook for both yarn production and fabric output signal further rise.”
Source: Sourcing Journal Online
That's why 2016's prolonged drought helped produce a historic cotton crop. But some weather related events have led to a different story for this year's crop. William Birdsong with the Wiregrass Research and Extension Center says: "Up until toward the end of July, I would say it's probably one of the best crops that I had ever seen but it's certainly only half time in the game of growing of cotton." But fields did not get the scattered showers they needed in late July and August. Hurricane Irma provided some relief in September. However, a few other rain makers during harvest time affected the quality of the crop. Thomas Kirkland who is a Cotton Farmer says: "We're going to make a little bit of money this year but it's not going to be the best cotton crop and the most profit, that's for sure." But despite some tropical impacts in the Wiregrass, cotton is fairing nicely on some farms. "This has been a good year for cotton production but it has been spotted on our irrigated land, the cotton looks really good but we've got other farms that we didn't get rain at all and the yield is cut back." Thomas Kirkland has seen his fair share of cotton during 40 years of farming. "One thing for sure, this has been one of the most expensive cotton crops we've ever put in." He among other farmers have been battling persistent pigweed which can infest the crop. "What we sale keeps going down it seems like and what we inputs we have to buy keep going up." Although there have been a few setbacks, farmers are hoping to finish the season strong. Birdsong finishes with: "It's an industry that takes on a lot of challenges, and you've got to have a lot of faith, gotta have a lot of faith in yourself and you've gotta have a lot of faith in God that he's going to take care of you and bring you through." Currently, cotton sells for 68-69 cents a pound.
Farmers would like to see it in the 80 to 90 cent range before the last of the crop is harvested by the end of November.
Source: WTVY.com
MILAN, Italy — The positive trend in textile machinery orders continues through to the third quarter of 2017. ACIMIT president Alessandro Zucchi stated: “Growth for the Italian market is progressing, albeit following a more contained rhythm. The extended measures for Industry 4.0 will serve to keep this thrust going towards the digitalization of the entire Italian textile sector.” According to data elaborated by ACIMIT, the Association Italian Textile Machinery Manufacturers, for the period from July to September, the orders index for textile machinery has risen by 6 percent compared to the same period in 2016. The index has a value of 107.3 points (2010 basis = 100). In further detail, foreign markets have shown a 6-percent increase, with the index reaching a value of 119.4 points. As for Italy’s domestic front, the increase instead amounted to 8 percent, with an absolute value for the index of 51.5 points. “Orders have continued their growth trend, making us confident that we will close out the year on a positive note,” Zucchi said. The primary foreign markets for Italian textile machinery have elicited a constant demand, while growth has been ongoing for Italy’s domestic market, even if at a lower overall rhythm compared to the quarter from April to June. “The measures relating to Industry 4.0, as envisaged in the upcoming Financial Budget Law, could very well keep the trend alive towards the digitalization process necessary for the entire Italian textile sector,” confirmed Zucchi.
Source: ACIMIT, the Association Italian Textile Machinery Manufacturers
The orders index for Italian textile machinery rose by six per cent in the third quarter of 2017, compared to the same period in 2016, according to the data from the Association of Italian Textile Machinery Manufacturers (ACIMIT). Continuing the positive trend witnessed in the previous quarter, the orders index increased to 107.3 points (2010 basis = 100). The orders index for foreign markets, which account for more than 85 per cent of total Italian textile machinery sales, increased by six per cent to 119.4 points for July-September quarter. In Italy’s domestic market, the orders index for the third quarter was up by 8 per cent to 51.5 points. “Orders have continued their growth trend, making us confident that we will close out the year on a positive note,” commented ACIMIT president Alessandro Zucchi. “The measures relating to Industry 4.0, as envisaged in the upcoming Financial Budget Law, could very well keep the trend alive towards the digitalisation process necessary for the entire Italian textile sector,” said Zucchi.
Source: Fibre2fashion.
