Companies, including FMCG firms, might be prosecuted if their retailers do not immediately cut the prices of products whose goods and services tax (GST) rates have been slashed. Union Finance Secretary Hasmukh Adhia says the retailers or the companies cannot continue with higher prices on grounds that the old stocks have not been exhausted. “We have made provisions for the companies to claim the difference from the government as input tax credit. But I am not willing to accept their argument to postpone passing on the benefits to consumers till they have disposed of their old stocks.” According to him, the new prices should be effective from November 15. The GST Council in its last meeting this month cut the tax rate on 176 items from 28 per cent to 18 per cent and on two to 12 per cent. There was a huge demand to make these cuts. Speaking in a Doordarshan interview in which Business Standard was present, Adhia, who is also revenue secretary, said it was inconceivable that a 10 per cent cut in the price of, say, detergent products should be minuscule for consumers. “We cannot track each retailer. So we have made it clear to manufacturers like FMCG companies that the onus is on them to ensure the retailers immediately pass on the benefits to the consumers if they want to escape action under the anti-profiteering clause of the GST.” He advised companies to “transparently” advertise in newspapers by how much their prices had come down. Items on which tax rates have dipped include detergents, sanitary ware, suitcase, beauty products, chocolates, marble and granite, wall paper, plywood, and stationery articles. Making the changes in prices visible would be a measure of their standards of corporate governance. “It is the responsibility of companies to inform their supply chain about the new price, going all the way down from distributors to wholesalers and retailers if they wish to escape the glare of anti-profiteering action by the government.” He added that the ministry of consumer affairs given manufacturers the elbow-room to alter their maximum retail prices till December. “But this does not mean they can wait till December. The new prices have to become effective immediately.” Last Thursday the Union cabinet cleared setting up a national-level anti-profiteering authority. In the three-level authority complaints of local nature will be sent to a state-level screening committee. Those with inter-state ramifications will travel to a standing committee set up at national level. This committee, if satisfied, would refer cases for investigation to the Directorate General of Safeguards, which will send its report to the authority. It will have a sunset date of two years from the date the chairman assumes charge. The categorical assertion by the finance secretary follows plenty of feedback that the rolling out of the GST on July 1 has not led to any reduction in the prices of goods and services. A reason given is the apparently high tax slabs, which has left little room for manufacturers and service providers to cut prices. Taking note of these, the last GST Council meeting, which brings together the finance ministers of all states along with the Union finance minister, cut rates, made eating out cheaper by cutting the tax on restaurants irrespective of size to 5 per cent, and eased compliance requirements on trade and industry to file returns. Clarifying the air about the new rates for restaurants, he said most of them, especially the smaller ones, did not need to avail of large sums as input tax credit. “It made sense to take them out of the input tax credit chain. I would expect very few claims to emerge from there for anti-profiteering action. Competition should take care of anyone who tries to spike prices.” Speaking about the larger adverse impact of GST rates on the Centre’s tax collection, Adhia said he was confident that the numbers would hold up for the Budget. Referring to the upgrade of India’s sovereign rating by Moody’s, which has endorsed its fiscal marksmanship, he said it would be necessary to watch the trends in the three GST taxes — the integrated goods and services tax, state goods and services tax, and central goods and services tax — till the end of December to make a call. “I am confident we shall do well.” A reason for his confidence is that almost all the pending tax returns for July have been filed. “The numbers for August are closing in and now September too has turned every encouraging.” The government had given extra time to businesses for filing their tax returns so that they could become conversant with the requirements. As a result, the pace of filing returns had slowed considerably.
Source: Business Standard
The commerce ministry is of the view that if the GST council allows a virtual payment mechanism for exporters under the GST regime, it will be one of the most important concessions for them. As exports witnessed the worst contraction in 15 months in October, the commerce ministry intends to step up consultations with the finance ministry on issues relating to the goods and services tax (GST) regime, including the delay in duty refunds, that were widely blamed for the latest export debacle. A mechanism for faster refunds features prominently in the list of issues that the commerce ministry wants settled at the earliest, a senior official told FE. Allowing exporters to use a scrip they get under the critical Merchandise Export from India Scheme (MEIS) to pay GST and treating supplies to export-oriented units from the domestic tariff area (DTA) as deemed exports are other key issues. “We have already taken up the issues with the revenue department and the GST council. We will step up consultations and see how best we can protect the interests of exporters,” the official said. The commerce ministry is of the view that if the GST council allows a virtual payment mechanism for exporters under the GST regime, it will be one of the most important concessions for them. This is because SMEs, who account for a bulk of the country’s exports, usually use working capital to pay the tax and then wait for the refunds. The ministry, therefore, favours a virtual payment system whereby the exporters will pay notional duty and get notional refunds later — something the GST Council is yet to approve as yet. Similarly, in the pre-GST period, exporters were allowed to utilise the MEIS scrip for the payment of a host of taxes–including excise duty, service tax, value-added tax and basic customs duty. However, with the introduction of the GST, the government has permitted the use of such scrip for the payment of only the basic customs duty. Exporters complain such a move amounts to an abrupt withdrawal of legitimate benefits announced under the Foreign Trade Policy (2015-20) to make goods exports globally-competitive and adversely affects their cash flow. For small and medium enterprises with limited access to credit, this remains a huge challenge. MEIS is the most important export promotion scheme under which the government provides exporters duty credit scrip at 2%, 3% or 5% of their export turnover, depending upon products and shipment destinations. The potential revenue forgone by the government on account of the scheme is estimated at Rs 22,000-23,500 crore a year.
Source: Financial Express
The goods and services tax (GST), which will come into force on 1 July, is indeed a big deal. It needed a constitutional amendment to empower the Centre to tax goods beyond the production stage and the states to tax services, and this has taken a long time. Then finance minister P. Chidambaram, in his budget speech for 2006, set the target of moving a Constitutional Amendment Bill in 2010. It was moved by United Progressive Alliance finance minister Pranab Mukherjee in 2012, but could not be passed before the election. The National Democratic Alliance government took up the baton after coming to power in 2014. Fortunately, differences were resolved and the Bill was passed in 2016 with a unanimous vote in the Rajya Sabha, where the government does not have a majority. Indian parliamentary democracy can take a bow. The GST will replace the present very complex system where the Centre levies a central excise duty on goods up to the production stage and a service tax on services while the states levy a state VAT (value added tax) on sales of goods, but do not tax services. Each of these taxes has a VAT (value added tax) structure, but they are applied on different bases. And in addition, there are a number of additional taxes e.g. the additional duty, special excise duty and various central cesses by the Centre and luxury tax, entertainment tax, octroi etc. by the states. All these taxes by the Centre will be subsumed into a single central GST and the multiple state taxes by the state into a state GST (legally a different tax in each state). These taxes will be applied on a common base and at the same rate for each commodity across the country. This is a major simplification which should be welcomed.
Is the current GST a good GST?
This is where the news is not good. There are more than 150 countries that have introduced VAT and this means there is a considerable build-up of professional experience internationally. These experts are agreed that the full benefits of a VAT are only reaped if the VAT is (a) near universal in coverage, with very few exemptions and (b) there are no more than two rates. Unfortunately, the GST Council, in its wisdom, has departed from expert opinion and given us a GST that experts agree is seriously flawed. It is very far from being universal and according to some it excludes 50% of the gross domestic product. Major items such as petroleum, natural gas, alcohol, electricity, and real estate/construction are left out. Petroleum could be covered within five years. Residential apartments have been included but all other construction, including commercial construction and factories, is not. In addition, a very large number of commodities have been exempted. This suggests that revenue may fall short of expectations. The second flaw is too many rates: 3% (on gold), 5%, 12%, 18% and 28 %, plus an extra GST cess on some luxury or socially undesirable items. Multiple rates are an invitation to misclassification and disputes/harassment arising from suspicion of misclassification. This reduces the efficiency gains which were expected to generate higher growth.
What is the impact of these weaknesses?
It is difficult to be certain but at the very least we should recognize that the positive effects will be less than initially claimed. A National Council of Applied Economic Research study that is much quoted had estimated that the GST would add between 1 and 2 percentage points to the economy’s growth rate. That was based on an ideal GST. Since what we have is very far from the ideal, the benefits will be correspondingly less. Perhaps a new study should be done to calculate the impact of the GST as it has emerged. If revenues are lower because of the exclusions and the large number of items at a very low rate, the revenue loss will be entirely borne by the Centre. This is because it will not only have less revenue under the central GST, but it is also committed to compensate the states if their revenue grows at less than 14% per annum in nominal terms. This will have to be accommodated within the Centre’s fiscal deficit trajectory. Despite these weaknesses, the GST will still be beneficial in many respects. The replacement of multiple taxes with a single rate for each commodity (taking Central and state GST together) is an advantage. The fact that the same rate will be imposed on all imports in addition to the normal import duty, is a major gain. It will level the playing field for domestic producers vis-a-vis imports because at present imports escape the state taxes, which erodes the protective benefit of customs duty. The elimination of border posts will be a major benefit. But we must ensure that the checking does not reappear in some other guise. The new law requires that all trucks transporting goods must carry an e-way bill which gives details of the goods being carried and the tax paid. This is an unnecessary burden since it gives tax authorities the power to stop trucks anywhere (not just at the border) to check if the e-waybill correctly reflects what is being transported. This could lead to tax authorities wanting to compare what is on the e-way bill with the contents of the truck—a potential source of harassment and corruption.
Will there be operational difficulties?
Many questions have been raised on possible operational difficulties. Will the GSTN (goods and services tax network) be trouble free or will there will be glitches?. Will the assessees be ready on time? These concerns are valid but should not be overdone. No new system is without glitches. The new system should be judged not by whether there are problems, but by whether the problems that arise are promptly corrected. The biggest problem in such situations is the danger that the system will not accept that something is a problem, because it might imply that it was poorly designed or preparation was poor. There is, however, one troublesome issue which many tax experts have commented on, and which arises from the requirement that taxpayers must register in each jurisdiction in which they operate. If a unit operates in several states, it must register in each state in which it operates, and be taxed in each jurisdiction, and also maintain records that allow the tax paid in each jurisdiction to be audited. Banks, for example, operate across states and their fee-based charges will be taxable under GST by both the Centre and the states. It is not clear how taxes paid on inputs purchased Centrally by the banks will be set off against the GST on the final service provided. Allocation of Central expenditures across operations in different jurisdictions to allocate the input tax involved will be very difficult. The GST was meant to unify the country into a single market. This means more and more organizations will set up in different jurisdictions and will need to operate seamlessly across them. A single registration valid across all states would have been the right thing to do. There is no economic justification for the insistence on treating each unit operating in a state as separate unit except that it will put them in the net for audit by the state agency. This is not a vested interest of the state. It is a vested interest of the state revenue administration.
Can we remedy the situation?
The short answer is that we can, provided we recognize that the birth of the GST is only a beginning. A systematic effort should be launched to correct deficiencies over time through the mechanism of the GST Council. This is a unique experiment in cooperative federalism. Contrary to what is said in the press, it is not the new sovereign taxation authority. It remains a recommendatory body on the basis of which the Centre and the states will modify the tax system but it is an ideal body to build the necessary consensus.
The GST Council should set up an expert group that could assess the performance of the system based on results of the first year and work on a revised GST rate structure to be implemented after the general election in 2019. One of the terms of reference of the group should be to pronounce on the desirability of migrating to fewer rates. According to press reports, Central government experts were in favour of fewer rates but state finance ministers insisted on greater differentiation to achieve progressivity. Using differentiated rates of indirect taxes to achieve progressivity is widely supported as a sensible objective but is actually mistaken. Progressivity should be considered not in terms of particular taxes but the progressivity of the fiscal system as a whole, including the direct tax system and the progressivity of public expenditures. Viewed from this perspective, insisting on exemptions and low rates of tax like 5% does not really mean that the tax burden is greatly reduced. Exempted items bear the taxes on inputs which are built into the cost and the price. Low taxed items also already bear taxes on inputs, and while it is good to bring them into the tax net, they could easily be taxed at a higher rate, say 8%. These issues should be thoroughly studied by an expert group which can submit a full report to the GST Council in a year’s time.
The case for an independent secretariat
Persuading states to agree to changes over the next two years will require persuasion and evidence-based analysis. For this, the GST Council should be serviced by an independent secretariat which can undertake or farm out studies that may be desired by state finance ministers, and also comment on studies that may be put before the GST Council by either the finance ministry, or any of the states. The secretariat should be headed by a secretary-level officer reporting to the chairman of the council, i.e. the finance minister. The Central government revenue department has a great deal of expertise, but for it to service the GST is inconsistent with cooperative federalism. A separate secretariat, with people taken on deputation from the Centre and the states, and with outside experts brought in as consultants, would be ideal.
Source : Live Mint
Moody’s rating upgrade after a long span of 13 years is a clear recognition of the deep-rooted and long-term character of India’s economic and structural reforms. This upgrade should have come at least one year ago, but Moody’s stand was that they would like to see the reforms taking deep roots. Without any disrespect to anyone, the question that merited a reply was how deep? Was it a bottomless pit? So, the decision of Moody’s to upgrade India’s rating should leave no doubt about the deep rootedness of India’s reforms and its long-term positive impact. The number and type of reforms and policy initiatives undertaken by the government in the last three and half years was unique and unparalleled. No other major economy undertook so many reforms and at such quick pace. From liberalisation of FDI to Aadhaarbacked DBT in subsidies, from insolvency and bankruptcy code to reduction of corporate tax for certain categories, from demonetisation to GST, from improvement in ease of doing business to governance and process reforms, the list is not only long but well spread across sectors.The combined effect of all these measures is higher growth momentum injected to our economy. Naturally, Moody’s has recognised this and reached the conclusion that India’s growth outlook is robust. Moody’s has also noted what can be called India’s fast paced shift towards formalisation of the economy, thanks to demonetisation and GST. The outcome in terms of higher growth, widening of tax base, enhanced competitiveness is for everyone to see. These outcomes will become clearer as we move ahead. At this juncture, the reform agenda will have to be pursued with renewed vigour. Implementation of rural roads programme, rural electrification and household connectivity targets, affordable housing milestones etc. will add depth to growth and employment. Reforms in agricultural marketing will ensure better income to farmers, apart from unshackling this sector and attracting private investment. Labour reforms, especially by state governments, together with legislative changes for better enforcement of contracts will add to dynamism of our economy. Governance reforms in the public sector banking sector have to be pursued. The upgrade is a clear signal to foreign and domestic investors that India is the place to invest. Resolution of GST-related issues, improved ranking in ease of doing business, enhanced credit rating etc.
Source : Financial Express
In a relief for industry, the GST Council has dropped an earlier requirement of payments of Goods and Services Tax (GST) on advances received for supply of goods.This is a relief for industry as payment of GST on advances was proving to be a major working capital hurdle for businesses. The GST Council’s latest move has restored the pre-GST position where no excise duty or VAT was required to be paid on advances, said MS Mani, Partner GST, Deloitte India. However, service providers would continue to be required to pay GST on advances, Mani told BusinessLine. This is a dampener as even services face similar challenges. Tax experts feel that since GST is a unified law, there should not be divergence in treatment for goods and services considering the fact that accounting treatment is uniform. This GST Council’s move meets the long standing demand of the industry, particularly by FMCG and auto sectors, said Pratik Jain, Leader-Indirect Tax, PwC. “Under the VAT regime, there was no tax on advances for goods but was introduced under GST. Since the input credit was only available after receipt of goods, this led to working capital blockage for industry and additional compliance burden,” he said. Further, there was ambiguity around the State where tax has to be paid in few cases, he added. Jain also said that requiring GST payment on advances for services is in line with the provisions under the erstwhile service tax laws. The GST law provides for payment of GST at the time of receipt of advance towards supply of goods or services. In October this year, the GST Council removed the requirement of payment of GST on advance receipts towards supply of goods, for persons having turnover of less than ₹1.5 crore in a year. However, on November 15, this relaxation was extended to all persons, except those opting to pay GST under composition scheme. Now, the GST Council has done away with the requirement to pay GST on advances post November 15 for all persons for supply of goods. After the GST Council’s move, the time of supply for goods would be the date of issue of invoice by the supplier (or the due date, by when the invoice needs to be issued). This would apply even in case of a change in rate of tax. The requirement to issue an advance receipt voucher at the time of receipt of advance remains. The GST Council has also now provided the facility of submission of· manual refund claims. This is seen as yet another taxpayer friendly measure for expeditious processing of the refund claims of taxes paid/input tax credits.
Source: Business Line
While fall in October exports seems a blip rather than trend, fog on economy now extends to currency, even if 12M outlook is benign. Oct-17 trade deficit widened $5 billion month-on-month to $14 billion, the 2nd highest in three years as exports fell 1% year-on-year (vs +26% year-on-year in Sep). Import growth moderated to 7% year-on-year from 18% in Sep. Ex-oil and jewellery imports/exports grew at 4.7/2.5% year-on-year. Rise in prices drove the bulk of the surge in oil imports (demand growth was just 1% in Oct). Nov oil prices are averaging $8/bbl over the Sep-17 average (on which Oct imports are priced) and $14/bbl over the FY17 average. If $63/bbl sustains for a full year, the full-year impact on the trade deficit would be ~$15 billion. The pick-up in coal imports (low stock at power plants + 38% rise in thermal coal prices) may be temporary though. One hopes the drop in textile exports to revive too (may have been disrupted by GST) fall in jewellery exports (UAE restrictions), may not. The $15-20 billion BoP surplus in the last several years was more than the rise in the oil import bill, and the Oct export drop was likely a blip rather than a trend. However, the fog on the economy now extends to the currency as well. RBI though has the ammunition to prevent sharp downward moves in the Rupee. 2nd highest trade deficit in three years: Oct-17 trade deficit widened $5 billion m-o-m to $14 billion, the 2nd highest in three years as exports fell 1% y-o-y (vs +26% y-o-y in Sep-17). Import growth moderated to 7% y-o-y from 18% in Sep. Ex-oil and jewellery imports/exports grew at 4.7/2.5% y-o-y. $63/bbl for FY implies $15 billion rise in oil imports over FY17: Rise in oil prices drove the bulk of the increase in oil imports (consumption growth was just 1% in Oct). Oil prices are averaging $8/bbl over the Sep-17 average (on which Oct imports are priced). If $63/bbl sustains for a full year, the increase over the FY17 average would be ~$ 15 billion. Record low coal inventories at power plants, with a 38% y-o-y increase in global prices, drove the upside surprise on coal. As Coal India ramps up production, this may reverse. Jewellery and textiles drove the export disappointment: Some decline in jewellery exports was expected, given the import restrictions in the UAE, but the extent was surprisingly large. Textile exports dropped too — this could be due to supply chain pressures caused by the GST transition. Steady growth in engineering goods exports, mostly metals, continues. Currency volatility may last, even if 12M outlook is good: The BoP surplus in the last several years has been $15-20 billion, more than the rise in the oil import bill. An improving global economy likely means the Oct export drop was a blip rather than a trend. However, the fog on the economy (the inability to say with confidence what is steady-state, and what may not last on most macroeconomic parameters) now extends to the currency as well. RBI has the ammunition to prevent sharp downward moves in the Rupee.
Source: Financial Express
Entrepreneurs are annoyed with the Excise and Taxation Department for sharing the details of their turnover with other business houses on WhatsApp. A yarn manufacturer, Kamal Dalmia, said officials of the Excise and Taxation Department were seeking the detail of companies’ GST payment on WhatsApp. He said in the same message, the figures of other companies were also mentioned. He was astonished to find that there was no secrecy of business and turnover details of the companies. CA Rajesh Dingliwal said an officer of the rank of ETO insisted him to pass on the detail of one of his clients on WhatsApp. “When I checked the message, it was shocking to see the details of five city-based companies.” He said it was surprising that how the department was sharing one’s confidential figures with others. He said to get the information on mobile was not an accepted mode of communication in the GST Act. Darshan Singh Goraya, president of the Focal Point Industries Association, said, “A few days ago, a team of the Excise and Taxation Department checked and clicked the pictures of bills of material being ferried on an auto at Focal Point in the industrial area. However, team officials refused to share their identity and even ranks.” He said there was a dire need to change the attitude of officials while dealing with GST assesses. He added that the major objective of the GST was to increase the number of assesses which could be possible with cooperative and courteous attitude of officials. He also requested the department to maintain secrecy. District Excise and Taxation Commissioner (DETC) Harinder Singh said the department would look into the complaint. He said the secrecy of firms’ details would be maintained.
Source: The tribune
The government has given the go-ahead to the first of several mega coastal economic zones mooted by former Niti Aayog vice chairman Arvind Panagariya, at the Jawaharlal Nehru Port in Maharashtra. The Shenzen Economic Zone and its cousins are testimony to the efficacy of industrial clusters in fostering growth and exports. But India also has to learn from the failed experiment with special economic zones. Enclave-specific administrative procedures and special labour laws fall foul of both India’s political economy and the law. There really is no alternative to the hard grind of reforming laws and simplifying procedure across the board, to make the entire country one thriving economic zone. The goods and services tax is a significant step towards this goal. Special economic zones failed to take off on any large scale as they did not suit the political economy. Resources were misdirected and revenues lost, considering that large companies set up shop in SEZs mainly to milch tax breaks. Any sign of exploitation of cheap labour would turn consumers against products in rich countries. The WTO may also frown upon some tax concessions and subsidies. So, the adoption of taxation and legal regimes that are different from the rest of the country is wholly avoidable. Instead, the government must remove policy constraints to attract large firms to employment-intensive sectors such as textiles. An antiquated hank-yarn obligation, irrational labour laws and high-cost manmade fibres and blends are things India’s textile and garment industry can do without. States should suitably reform labour and land laws. The focus should be to strengthen economy-wide competencies, build robust infrastructure, and ensure functional and speedy administration across states.
Source: The Economic Times
Yarns tell a tale:The yarn bank scheme has taken off in Malegaon, Bhiwandi and Ichalkaranji, say sources. 30% capital subsidy also mooted. The Union Ministry of Textiles has sought additional funds to be disbursed to powerloom weavers under the PowerTex India Scheme, said a senior official in the ministry. The three-year programme, which comprises several schemes, was started in April this year with an outlay of Rs. 487 crore, working out to approximately Rs. 160 crore a year. The official said the In-Situ (assistance given to weavers to add attachments to powerlooms), yarn bank, and group workshed schemes have had ‘good’ response and Rs. 72 crore was disbursed since April under the PowerTex programme. The Textiles Ministry has sought about Rs. 100 crore more for this financial year for this project.
‘70 proposals pending’
About 10 proposals were sanctioned under the yarn bank and group workshed schemes and another 70 applications are pending, the official said. The Ministry has also recommended an increase in capital subsidy for the powerloom sector from the current 10% to 30%. According to Purushottam K. Vanga, chairman of Powerloom Development and Export Promotion Council, the In-Situ scheme had ‘good response’ in clusters such as Bhiwandi where weavers produce grey fabric.
The yarn bank scheme has taken off well in places such as Malegaon, Bhiwandi, and Ichalkaranji. However, fabric exports have come down and the council has sought a special package for the powerloom sector similar to the ones given for the apparel and made-ups sectors. It had also demanded increase in capital subsidy to 30% to encourage powerloom units to modernise, he said. The increase in capital subsidy has been a long-standing demand of the powerloom sector. Schemes such as those for the yarn bank and group worksheds have had lukewarm response in the south due to several inherent reasons, according to several industry sources here.
Source: The Hindu
HYDERABAD: Telangana farmers are crying foul over Cotton lint percentage fixation method across the country by Cotton Corporation of India where it was alleged that CCI suffers a loss of Rs 2600 crore per annum. In a complaint filed with CCI and Union Ministry of Textiles, Telangana Rythu Sangham has alleged misappropriation of nearly 15 percent quantum of lint obtained. While cotton BT variety in Telangana and Andhra Pradesh gives 37 to 38 percent of Ginning Out turn (Lint percentage), the CCI officials fix not more than 30-31 percent for the majority of their purchase. The CCI purchases Fair Average Quality grade raw cotton from the farmers and processes it into Lint and Cottonseed. Telangana Rythu Sangham state convener M Chander Rao alleged," Currently the Lint percent, defined as the quantity of lint obtained in the processing of one quintal of kapas, is being fixed manually by the CCI officers in collusion with each other. It is set lower than the realised percentages by 15 to 20 percent. Due to it's under-fixation it is leading to irregularities in the form of lint misappropriation, increased corruption among CCI officials, loss of revenue to the Government and in turn increased MSP losses. For instance in 2014- 15, 88 lakh bales worth of kapas(cotton) was purchased and processed from the farmers by the CCI and out of which 15 percent of the actual lint obtained was misappropriated, which comes to 13.5 lakh bales or approximately Rs 2,600 crores in value," Central Institute for Cotton Research (CICR) and Marathwada Agricultural Universities had scientifically proven that BT cotton will yield (now almost entire cotton crop is the same variety in most states) around 37 to 38 percent. CBI Hyderabad is already probing an MSP fraud in TS and AP Marketing yards where farmers are cheated by middlemen and traders in connivance with the officials. The farmers' association suggested CCI and Ministry of textiles that any Ginner or tenderer willing to offer higher lint percentage than the base percentage should get an allotment of kapas by the CCI and also only to the extent of processing facilities available at the factory. Entire process at companies, weight bridges should be under CCTV surveillance they suggested. Ministry of Textiles Joint Secretary Subrata Gupta while denying massive irregularities in lint percentage fixation told TOI that disciplinary action had been taken against some staff members CCI regarding irregularities at some places during fixation of fibre percentage. "We do not accept the allegation that there are such large-scale irregularities, But there may be errors in individual centres. We have initiated disciplinary proceedings in these cases. The generalised statement that cotton procurement in the entire country is done in the wrong way. Lint percentage is a matter of observation of output. CCI is following time-tested protocol. Given alternate suggestions which have come, we are going trying out it in few centres. We can't modify procurement process in on the go in entire country without testing it. If it goes wrong interests of lakhs of farmers will be at stake. In old system outturn of raw seed, cotton is formulated on specific parameters. Farmers mix different varieties of cotton and different moisture content, and there is an average outturn for the stocks is taken. The proposed system has a risk of contamination of output cotton which will reduce the value of the cotton," CCI MD Chockalingam told TOI that based on the suggestion of Telangana Rythu Sangam a new system of e tendering with lint percentage fixation is to be initiated on a pilot basis at four places.
Source: The Times of India
Ahmedabad: Ahmedabad was rightly known as Manchester of the East because it was once home to a number of textile mills. To mark the beginning of World Heritage Week, a guided Industrial Heritage Walk was organized by Ahmedabad-based museum of Conflicts - Conflictorium - early on Sunday morning to revisit sites important to the textile heritage of the city. The heritage walk began from RC Commerce College which was founded by the adopted grandson of Ranchhodlal Chhotalal, a pioneer of textile mills in Ahmedabad. It then moved on to the Shahpur Mill compound and, later, to the bungalow of Mansukhlal Sheth, in Shahpur. Sheth was the first Jain to establish a mill named Gujarat Ginning Mill.
"Textiles has remained integral to Ahmedabad. We're used to thinking of Ahmedabad in particular ways through specific images and but there are so many alternative histories which make this city what it is today. Therefore, there is need to focus on them to help discover Ahmedabad through those stories," said Avni Sethi, founder, Conflictorium. Likewise, the stories of rise and fall of textile mills in Ahmedabad, how it was built and its importance were discussed during the walk. Some 15 people participated in the industrial heritage walk which was guided by Abrar Ali Syed, an assistant professor of Ahmedabad University. Sharing more details about the walk, Syed said that textiles are indeed a precious heritage of this city. "It is important to trace these stories to make them accessible to people. In addition to different places in the city, we also looked at stories of people like Ranchhodlal Chhotalal and Mansukhlal Sheth who pioneered textile heritage and history," Syed said. "The story of their struggle and how the Indian textile industry established its footprint on the global map with the efforts of people like Ambalal Sarabhai and Lalbhai Dalpatbhai is not just insightful but also gives an idea of how the modern textile industry of the city took shape," Syed said.
Source: The Times of India
At the FDDI’s ‘Fashion Blazon 2017’, it was proved that the future of Indian fashion and styling industry is in safe hands with numerous students showcasing the best of creativity. A recently organized fashion show, 'Fashion Blazon 2017, held at the Footwear design and development institute (FDDI), evidently proved that future of Indian fashion and styling industry is in safe hands. Amalgamating creativity with contemporary ideas, numerous students of the institute presented self-designed attires, jewellery and footwear. Each and every presentation spoke of the efforts and the innovation put in by the students, who explored the new limits of the fashion world. Organised within the college premises on November 17, the show was attended by renowned designers, fashion industry experts, and officials. Amidst claps and applause, the show opened with the first sequence 'Marigold, which was entirely inspired by the Maharashtrian culture. The collection beautifully depicted 'modernity in tradition'. Next in line was a collection around the theme of 'Yoga' followed by 'Valentine special collection'. The glamorous garments, perfect for a romantic evening, totally stole the show. Other presentations based on themes like, 'Tie and dye'– presenting ancient art majorly used in Rajasthan and Gujarat; 'Game of Thrones' – showcasing the inspiring characters from the famous TV show thereby capturing the Westeros feel; 'Van Gogh', 'Silver', and 'Madhubani' themes, were equally innovative. Giving a beautiful closure to the fashion show, a collection inspired by the queen of Chittor, Rani Padmavati, was also showcased. The story of valour and sacrifice was depicted via this sequence featuring royal attires of Rajput and Khalji dynasties. Mr Ravinder, Joint Secretary of DIPP graced the occasion as the chief guest. Harpreet Narula, head designer for the upcoming periodic drama Padmavati, was also present at the show. Impressed by the entire showcase, he went on to praise the hard work and efforts put in by the students. FDDI is an apex organisation which has been playing a pivotal role in facilitating the Indian industry by bridging the skill gap in the areas of footwear, leather, retail and management areas. FDDI has been functioning as an interface between the untapped talent and industry and its global counterparts by fulfilling the demand of skilled manpower with its state of art machines and world-class infrastructure. Overwhelmed with amazement, Arun Kumar Sinha, Managing Director, FDDI, congratulated the students for presenting such stupendous collections. "It was a great show considering the efforts of the students. I can see that many of them are quite professional. I loved the way they presented their ideas. When I came here, I had a notion that everything within this campus revolves around footwear designing. But looking at the versatility and the talent, I feel happy." Speaking further about his plans to take FDDI to new heights, Sinha said, "There are two things which we are aiming at. Firstly, we are trying to bring more designers to the institute so that our students can learn from the professionals. Secondly, we want to provide better exposure by stepping out of the institute. This would help them get firsthand experience in designing, styling, and management. In the words of Aakriti Choudhry – a student who designed two of the garments for the show (one of which was inspired by the petals of the rose) – FDDI is the best platform for anyone who is enthusiastic about fashion or anything related to this industry. "This college is the perfect place to learn new things. It gave us innumerable opportunities to go places and learn, not just through words and teachings within the four walls of the classroom but through experiences. They also provide us with opportunities to go and attend events like the Amazon fashion week and other fashion events of the sort. Not every person wants to get into core designing like I want to be. The college faculty and the staff help us figure out what are we meant to do. I am really happy to be a part of this college and the event as well. Every designer has put in a lot of effort to make it a success."
Source: Millenium Post
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1395.09 |
USD/Ton |
0% |
11/19/2017 |
|
VSF |
2217.05 |
USD/Ton |
0% |
11/19/2017 |
|
ASF |
2654.43 |
USD/Ton |
0% |
11/19/2017 |
|
Polyester POY |
1369.45 |
USD/Ton |
0% |
11/19/2017 |
|
Nylon FDY |
3468.86 |
USD/Ton |
0% |
11/19/2017 |
|
40D Spandex |
5957.39 |
USD/Ton |
0% |
11/19/2017 |
|
Polyester DTY |
1711.81 |
USD/Ton |
0.44% |
11/19/2017 |
|
Nylon POY |
3680.01 |
USD/Ton |
0% |
11/19/2017 |
|
Acrylic Top 3D |
5701.00 |
USD/Ton |
0% |
11/19/2017 |
|
Polyester FDY |
1606.23 |
USD/Ton |
0% |
11/19/2017 |
|
Nylon DTY |
3242.63 |
USD/Ton |
-0.92% |
11/19/2017 |
|
Viscose Long Filament |
2790.17 |
USD/Ton |
0% |
11/19/2017 |
|
30S Spun Rayon Yarn |
2910.83 |
USD/Ton |
0% |
11/19/2017 |
|
32S Polyester Yarn |
2088.86 |
USD/Ton |
0% |
11/19/2017 |
|
45S T/C Yarn |
2880.66 |
USD/Ton |
0% |
11/19/2017 |
|
40S Rayon Yarn |
2217.05 |
USD/Ton |
0.68% |
11/19/2017 |
|
T/R Yarn 65/35 32S |
2443.28 |
USD/Ton |
0% |
11/19/2017 |
|
45S Polyester Yarn |
3061.65 |
USD/Ton |
-0.49% |
11/19/2017 |
|
T/C Yarn 65/35 32S |
2488.53 |
USD/Ton |
0% |
11/19/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
11/19/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
11/19/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
11/19/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
11/19/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
11/19/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15082 USD dtd 19/11/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Brexit—the exit of the UK from the EU—could benefit the UK textile and clothing industry according to a report of Global Apparel Markets from the UK-based business information company Textiles Intelligence. One consequence of the UK’s decision to exit the EU has been a fall in the value of sterling and this has made UK textile and clothing exports more competitive in terms of price. At the same time many UK retailers are considering sourcing more of their requirements from UK suppliers as the fall in the value of sterling has made imports more expensive. Meanwhile many foreign suppliers are diverting the focus of their export efforts to other markets as the UK market has become less profitable. These trends are set to continue in the run up to Brexit— which is set for March 29 2019— and beyond—as long as sterling remains low. The UK textile and clothing industry could also benefit if— in the absence of a free trade agreement—customs duties are imposed on imports originating in the EU and other “near shore” supplying countries such as Turkey. Customs duties would make imports from these countries more expensive and as a result such imports would pose less competition for UK produced goods. At the same time exiting the EU would provide opportunities for the UK to negotiate its own trade deals— which it is not permitted to do as an EU member. This could mean better access for the UK textile and clothing industry to export markets in China Japan and the USA where UK manufactured products command a premium. It is thought that a tarifffree or duty-free arrangement between the UK and the USA for instance could lead to a 30% surge in UK exports to the USA over a five-year period. Furthermore this could benefit US consumers as it could lower the prices of quality UK goods in the US market by an estimated 15-25%. However the extent to which the UK textile and clothing industry will be able to expand in response to these opportunities will be limited by the fact that there are no longer any large volume garment manufacturing plants in the UK. Also there are concerns about the future availability of talent and skilled operatives. Many of the industry’s skilled employees have come from other EU countries in recent years—especially those in Eastern Europe—and access to such resources could be curtailed if inward migration is restricted. That said as manufacturing opportunities in the UK textile and clothing industry open up there is a chance that perceptions of employment opportunities in the industry will improve and this could help the industry to attract new young home grown talent. One of the biggest concerns of the UK textile and clothing industry however is future access to the single European market. As much as 45% of UK textile imports and 25% of UK clothing imports come from other EU countries and large proportions of these imports are materials used in the manufacture of textiles and clothing in the UK for subsequent export. If tariffs were imposed on imports of these materials their cost would increase and this would force UK textile and clothing companies to increase their prices in the domestic market and lose market share. In fact if the UK were to fall back on World Trade Organization (WTO) rules then the average tariff on imports of textile products UK textile & clothing sector to benefit from Brexit Continued from Page 1 Col 6 coming into the UK would be between 10% and 15%. And—given that there has already been a 20% increase in costs as a result of the depreciation of sterling against the US dollar since the UK’s decision to exit the EU was made—imported materials could become 35% more expensive when WTO tariffs are factored in. An increase in the cost of imported materials would also force UK textile and clothing companies to increase their export prices and this could have a huge effect on sales of their products abroad. As much as 74% of UK textile and clothing exports go to other EU countries and it is feared that much of this trade will be lost unless a free trade agreement can be negotiated. Furthermore if UK textile and clothing products were to become subject to higher tariffs when they are imported into EU countries then more products would be made in the EU rather than in the UK more products would be warehoused in the EU rather than in the UK and more products would be shipped from the EU rather than from the UK—all at the expense of jobs and economic activity. More offices would be established in the EU and thus more jobs created in the EU at the expense of those in the UK. In the meantime until there is further clarity regarding the terms of the UK’s exit from the EU the uncertainty surrounding Brexit while negotiations are ongoing will continue to cripple business investment decisions and harm business and consumer confidence.
Source : Tecoya Trend
Malawi Cotton Company in collaboration with Cotton Council of Malawi Friday launched a cotton input support initiative which is intended to resuscitate the country’s dying cotton industry.
Malawi cotton farmers
The initiative, which is receiving support from the Chinese government, will target close to 6000 farmers in the pilot phase. Speaking at the launching ceremony in Salima, Malawi Cotton Company representative Webber Chen said the initiative has been inspired by the downward spiral of cotton production due to poor market prices, ill weather and lack of input support initiatives. “As a cotton company, we were so concerned bearing in mind that cotton is one crop that helps farmers earn a living. At the same time as a Ginner, we would not have cotton to gin if farmers completely abandoned the crop,” Chen said. He went on to disclose that the cotton company plans to construct a textile factory in Salima and would want abundant supply of cotton as a raw material. The input support initiative will see 1000 farmers receive free high quality Chureza cotton seed while 5000 others will get the seed on 100 percent loan repayable after cotton sales. Guest of honour at the launch was Director of Administration in the Ministry of Agriculture, Irrigation and Water Development Maxwell Tsitsi. In his speech, Tsitsi advised farmers to operate in groups so that they can fully maximize and exploit on the initiative through easy access to lucrative cotton markets. “Collective marketing is beneficial to both the farmer and the ginner. For well organised farmers, it is easy to repay input loans. Adoption of various innovations in agriculture is also easily achieved when farmers organize themselves in groups,” Tsitsi said. Executive Director for Cotton Council of Malawi Cosmas Luwanda said most farmers abandoned cotton production because of a disorganized market system which created loopholes for crooked vendors to exploit small scale farmers. Luwanda said plans are underway to restructure the cotton market in an effort to increase the volume of cotton produce from farmers. “We are moving swiftly to employ inspectors who will be full time on the ground assessing the cotton market,” he said.
Source: Nyasa Times
LUBBOCK, Texas-A demonstration of a key innovation in foam dyeing of yarn for denim was held today at the Texas Tech University Fiber and Biopolymer Research Institute in Lubbock, Texas. The event was hosted by Indigo Mill Designs (IMD), with the company commercializing this technology under its IndigoZERO™ brand. Representatives from across the apparel industry and numerous denim manufacturers were on hand for the event, along with early stage funders Wrangler, Lee, and the Walmart Foundation. “Early in our research, we found that foam dyeing of yarn for denim gives significantly better results when combined with our IndigoZERO™ technology. Zero rinse water discharge and the reduction of chemicals used in dyeing indigo dramatically improve the sustainability of this process while reducing costs at the same time,” said Ralph Tharpe, Founder and Managing Partner of Indigo Mill Designs. IMD, along with Gaston Systems Inc., will work with early adopters of the technology to build machines capable of running this innovative new process. Gaston’s proprietary foam generation and application technology was built into the research machine at Texas Tech. “Now we must work to scale the research machine design to a full-size production unit. Our relationship with IMD will result in a fundamental change in the way indigo is applied to yarn,” said Chris Aurich, Managing Director of Gaston Systems. “A large fabric mill uses millions of gallons of water every day to dye denim,” explains Dr. Sudhakar Puvvada who leads denim innovation work for Wrangler and Lee’s Global Innovation Center, and has served as an advisor to IMD. “IMD’s innovation can greatly reduce that amount and cut the energy needed for dyeing and wastewater treatment.” IMD’s foam-dying process also will allow fabric mills to produce much smaller quantities, when desired, than with conventional processes. In addition to reducing waste, smaller fabric runs will allow for greater design and marketing flexibility in the denim industry. “The reduction in water required for dyeing is dramatic and processing costs will be reduced. Additionally, the IndigoZERO™ system speeds up product development time, perhaps reducing it by as much as 90%,” said Dean Ethridge, lead researcher at Texas Tech. “We’re grateful for the investment and technical contributions of Wrangler and Lee, along with the research funding from the U.S. Manufacturing Innovation Fund in helping to make this innovation commercially possible.”
Source: Business Wire
Teijin Frontier Co., Ltd., the Teijin Group’s fibre-product converting company, has unveiled the Solotex Thermo, a polytrimethylene terephthalate (PTT) fibre, offering excellent thermal retention and insulation. The new fibre can be used in a wide range of applications, including jeans, pants and bottoms, and for more than just outer materials. Solotex Thermo offers high comfortability, thanks to its softness, form-suitability and strechability. It absorbs near infrared sunlight and converts it to heat efficiently due to carbon-based inorganic particles mixed into the fibre’s monocular structure. Compared to conventional polyester fibre, it raises the wearer’s wind-chill factor by 5?, as demonstrated in a sunlight heat-storage test conducted by Boken Quality Evaluation Institute. Teijin Frontier is now exploring marketing opportunities for Solotex Thermo mainly for outerwear. Annual sales are expected to reach 500 tons by the fiscal year ending in March 2021. (GK)
Source: Fibre2Fashion
