The Vice President of India Mr. M. Venkaiah Naidu has said that India is the economic hope of the globe and that the picture is both fascinating and complex as our economy is fast expanding. He was addressing the gathering after giving away the Prime Minister Shram Awards. He said that millions of workforces are working round the clock to keep the wheels of economy running as he complimented the winners of Shram Awards. He further said that this is the ‘real GDP’ festival. By this I mean the ‘Growth Driving Power’ from among whom the ‘Great Dedicated Persons’ are being honoured today and these two GDPs are critical for the ‘Gross Domestic Product’ the GDP that we are all ultimately concerned with he added. The Vice President said that improving the productivity of our workforce is the main challenge. If workers produce more per hour there is more of output and income to share. He further said that ‘Shakti’ is the force that drives all processes including biological and mechanical. We have gathered here today to underline and acknowledge the importance of ‘Shram Sakti’ that is driving a range of processes of production which are critical to economic growth and development he added. Mr. Naidu said that improving the education level of labour force improving access to quality training is crucial. He further said that better coordination among various stakeholders strengthening skill delivery framework strengthening private sector participation and augmenting financial resources and systemic reforms are needed. There is widespread acknowledgement that present labour laws are coming in the way of increased investment flows and if that is the case should they not be examined to find solutions he questioned. The Vice President asked government and private sector to address the concerns needs and aspirations of the work force by ensuring an appropriate ecosystem. He further said that our vast workforce is making huge contribution for the advancement of our nation.
Source: Tecoya Trend
Raipur, Feb 26 () Finance secretary Hasmukh Adhia today said government is making all efforts to make the GST regime "full proof" with the help of technology to check all possibilities of tax evasion. Addressing a state-level seminar on GST, the top finance ministry official said, "GST is an end-to-end IT-based tax system. We are making all efforts to make it full proof with the help of technology. "A technology-based tax system will prevent tax evasion. We are also making efforts in the direction of making it more simple," Adhia said. Stating the new taxation regime is more business friendly, he noted that a businessman doesn't want to evade tax provided three things are according to his desire, which include appropriate tax calculation, tax should be reasonable, it protects his interests. Citing the example of Chhattisgarh, he said credit for the successful rollout of GST in the state goes to businessmen of the state. There was situation of uncertainty and anxiety when GST was introduced on July 1 last but gradually all basic problems which had arisen during the initial stages were overcome. Strong political will coupled with efforts of the Central and state officials have led to the effective implementation of GST, he said. In July 2017, the revenue shortfall of the state was 49 per cent but within seven months, this has come down gradually to 29 per cent, thanks to the GST, he said. He also said, the state average of filing returns is 57 per cent while the national average is 67 per cent. TKP BEN BEN
Source: Business Standard
In the circular addressed to field officials of the department, CBEC has laid out invalid CENVAT credit in two categories: One is the ‘disputed’ credit where an adjudication exists as on July 1, saying such credit was inadmissible and second is the ‘blocked’ credit, where a taxpayer has claimed credit for items explicitly prohibited in law, which includes claims against telecommunication towers and pipelines laid outside factory premises, among others. GST, CBEC, credit claim, CGST, CENVAT The government has warned taxpayers against using invalid transitional credit for discharging goods and services tax (GST) liability, failing which the tax department would recover the amount along with interest and penalty, a circular issued by the Central Board of Excise and Customs (CBEC) said. The government has warned taxpayers against using invalid transitional credit for discharging goods and services tax (GST) liability, failing which the tax department would recover the amount along with interest and penalty, a circular issued by the Central Board of Excise and Customs (CBEC) said. In the GST regime, traders have been allowed to use the credit for pre-GST taxes paid on the stock to be sold in the GST regime from July 1 last year. The government has often cited ‘unusually’ high transitional credit claims as one of the reasons for lower central GST (CGST) collections, given that taxpayers with credit on their electronic credit ledger utilised this instead of paying GST in cash. The transitional credit claim had reached `65,000 crore in September, prompting the department to launch an exercise to verify such submissions. After the window for submitting CENVAT credit claims expired on December 27, the same stood at nearly Rs 1.5 lakh crore. In the circular addressed to field officials of the department, CBEC has laid out invalid CENVAT credit in two categories: One is the ‘disputed’ credit where an adjudication exists as on July 1, saying such credit was inadmissible and second is the ‘blocked’ credit, where a taxpayer has claimed credit for items explicitly prohibited in law, which includes claims against telecommunication towers and pipelines laid outside factory premises, among others. Further, the circular said that taxpayers with more than Rs 10 lakh in ‘disputed’ and ‘blocked’ credit must submit an undertaking to the jurisdictional officer of the central government, saying that such credit will not be utilised or has not been availed as transitional credit. “In other cases of transitional credit of an amount lesser than Rs 10 lakh, the directions as above shall apply but the need to submit the undertaking shall not apply,” it said. “The permissibilty of disputed credits emanating from the erstwhile VAT regime will continue to be an issue for traders. While impermissible past credits cannot technically be used to discharge a current period tax payment, some concessions also need to be given by going slow on penalties as there have several challenges in filing the TRAN-1 returns in the past leading to several postponements of the timelines” MS Mani, partner, Deloitte India, said. The tax department officials said that the verification of transitional credit claims was nearing its end with a few centres still to submit their reports. However, officials said that despite suspicion of large-scale malpractice, the verification process so far has shown that invalid claims are only 5-10% of the total amount.
Source: Financial Express
If a policy doesn’t achieve intended results, they then cannot be brought about through penal laws of the many things that made this government far from ‘minimum’ in its pursuit of governance, the ‘anti-profiteering’ mechanism contemplated under Section 171 of the Central Goods and Services Tax Act (CGST Act) has got be the most statist. It is the first law in our constitutional history that allows the Government to keep a tab on a businessman’s pricing decision irrespective of his intentions, the nature of the produce and market circumstances. There have been laws to regulate under-invoicing, pricing during emergencies, pricing of essential or special commodities, unfair and manipulative trade practices, etc. But Section 171 says that “any reduction in rate of tax….or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices”.
Shaky rationale
The official rationale for such regulation as set out in an online government pamphlet is that “it has been the experience of many countries that when GST was introduced there has been a marked increase in…the prices of the commodities. This happened in spite of the availability of the tax credit right from the production stage to the final consumption stage which should have actually reduced the final prices. This was obviously happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering”. This rationale is shaky because it presumes that a seller has nothing to consider except the tax rate and tax credit while deciding price and that he possesses an innate concern (beyond economic considerations) for his customer’s pocket. There is no study that establishes a link between reduction in indirect taxes with lower inflation. Not surprisingly only two (Malaysia and Australia) of the “many countries” that saw “marked increase in the inflation” after GST, responded with “anti-profiteering laws”. The Australian law is far more complex and refined than what is thought of under our GST. The Malaysian law also does not directly link changes in tax rates to profiteering. Instead it prohibits “unreasonably high profit” which is measured by comparing the “net profit margin” of commodities in previous periods.
What it means
More shocking than the economics of it is the legal understanding that any seller who chooses to keep his prices high despite receiving tax benefits is “indulging in illegal profiteering”. It is certainly illegal to collect tax from a consumer in excess of what one owes to the State. But it is totally another thing to say that you should not use tax-reduction to increase your profit margin. Article 19(1)(g) of the Constitution guarantees every citizen the right to carry on any business. Our courts have defined business as “a course of dealings…with a profit motive, and not for sport or pleasure”. So there is no freedom to do business without the motive to earn profit. However during the heydays of Indian socialism (in 1974) a constitutional bench of the Supreme Court said that the right to do business under Article 19(1)(g) is sufficiently protected “if fair price is fixed leaving a reasonable margin of profit”. That was in the context of cotton, an essential commodity. The Constitution does not envisage any limits on the right of a businessman to earn profits except “reasonable restrictions” in the public interest. Some of the initial targets under the GST ‘anti-profiteering’ mechanism include a McDonald’s franchisee, a Honda dealer and the retailer Lifestyle. Should the state really be worried about and waste resources on checking the prices of such businesses? Is there any public interest in keeping a McDonald’s burger cheap? At the least, therefore, a businessman has the fundamental right to make a“reasonable margin of profit”. There can be several situations in which the GST ‘anti-profiteering’ mechanism can fall foul of this fundamental right. For instance, if a loss-making businessman can alleviate his plight by increasing the net-price of his produce to cover the reduction in rate of tax and keep the gross price the same, forcing him to reduce the price will violate his fundamental right to do business. It is absurd to call such a commercial decision “illegal profiteering.”
Don’t force the issue
In 2012 the Delhi High Court summarised the law really well in the context of regulating natural gas prices: “Prices are generally governed regulated by market forces. Price fixation/regulation/control is essentially a clog on the freedom of trade and commerce conferred the status of a fundamental right. However wherever the circumstances so justify, the same has been treated as a reasonable restriction.” Therefore, depending on circumstances, laws have always provided for regulating prices and other business practices. The GST ‘anti-profiteering’ mechanism aims to regulate prices of all goods and services irrespective of circumstances. This makes the scheme unprecedented and quite clearly unconstitutional. It even contains stringent penalties. The Government may believe that GST should lower inflation. If a policy doesn’t achieve intended results, they then cannot be brought about through penal laws. In his Principles of Political Economy, John Stuart Mill sums up the history of price-fixing saying “governments have thought themselves qualified to regulate the condition better than the persons interested. There is scarcely any commodity which they have not at some place or time endeavoured to make either dearer or cheaper than it would be if left to itself”. Section 171 of the CGST Act takes us back deep into this history of state control.
Source: Business Line
Users of prepaid payment instruments (PPI) such as mobile wallets will have to complete the KYC requirements by February 28 as the Reserve Bank of India has refused to extend the deadline any further. Those who do not comply with the KYC norms will not be allowed to load money into their respective wallet accounts or carry out remittance-based transactions. They will also not be allowed to transfer the cash in the wallet account to their bank accounts. However, users will be allowed to use the balance amount in their respective wallets to pay for goods and services. Once the balance is exhausted, the user will not be able to load cash again until the KYC norms are complied with. “Sufficient time has already been given to meet the prescribed guidelines. The guidelines are designed to strengthen safety and security of transactions and customer protection,” RBI Deputy Governor BP Kanungo said, adding that KYC requirements are necessary to usher in inter-operability. The RBI had initially given time till December 31, 2017, to make PPI accounts KYC-compliant. This was extended to February 28 after a number of players sought more time as they felt that the KYC norms were tough. While the RBI did not disclose how many PPI users have completed KYC norms, Kanungo added that those users who want to withdraw the balance amount (in the wallets) can close their PPI account and get the money transferred into their bank accounts. According to industry estimates, more than 90 per cent of mobile wallet users have not fulfilled KYC norms. “There are about 55 companies in this space, including Paytm, Citrus and Mobikwik. They could see a dip in transactions and user base from next month,” said an industry expert. Many PPI issuers, under its umbrella body Payment Council of India, had approached the RBI recently requesting the banking governing body to relax the full KYC norms for people who do small-value transactions (below ₹10,000), which account for the bulk of the transactions at present. Vijay Kalantri, Founder of The Mobile Wallet, said, “PPI is the entry point for anyone to go digital and if they (the RBI) put so many restrictions, it will create a hindrance among users. There should be a minimum KYC, which validates the name and mobile number and where the user will get an OTP.” He added that the move would lead to a massive drop in the number of wallet users, and many do not want to carry out full KYC.
Negative fallout
“The RBI’s move will have negative fallout. After demonetisation, they are going for de-digitisation and this will only further encourage cash transactions so the whole motive of encouraging the digital economy is being defeated,” said an executive representing the payments industry.. He added that about ₹15,000 crore of transactions are being conducted every month through wallets, of which, about ₹10,000 crore is remittance, where the average ticket size is less than ₹3,000 per transaction. “These are migrant labourers who came to digital platform as there was no KYC requirement. They will be impacted the most. We had requested the RBI to build a bridge between ‘minimum KYC’ and ‘full KYC’, but it has forced users to give all the details, which we think should be left to users to decide,” he added.
Source: Business Line
The handloom sector has struck rich in the just concluded Uttar Pradesh Investors' summit in which the department has signed 29 Memoranda of Understanding (MoUs) worth Rs 7436 crore which in turn can generate over 5 lakh jobs. Handloom and Textile minister Satyadeo Pachauri said here on Monday that investors have showed keen interest in the Handloom sector as the department has signed 29 MoUs worth Rs 7436 crore. Once the investments start pouring this sector is bound to touch new heights, the minister said in a written statement issued here on Monday. "This is a big challenge for the government. If we are able to implement MoUs by strict follow ups we will be able to generate over 5 lakh jobs in just one year," he said. To ensure implementation of MoUs a four member committee has been made which will be headed by the Commissioner, Textile directorate, Kanpur. The other members of the committee are Deputy Director Textile directorate, Kanpur, who will also act as secretary, Managing Director UPSIDC and finance controlled Textile directorate, Kanpur. The last two will be members of the committee. The minister said that this committee will follow-up implementation of MoUs and remove bottlenecks if there are any. The members will talk to investors to know their reaction. This committee will also ensure that investors get the facilities as promised under the Textile policy of Uttar Pradesh. "The investors have appreciated the UP Handloom, Power loom, Silk textile and garment policy 2017. Our effort would be to ensure that all the MoUs are implemented and for this we need strong follow up process. We will be in touch with the investors are assure them all possible help to them," he said.
Source: Web India 123
Ramesh Pothy, managing director of Pothys, feels strongly for the handloom industry in India and said that the government's implementation of GST on handloom should be done away with immediately. He added that GST will further strain the already strained handloom industry in the country. “The handloom industry in India is a highly unorganised industry and we want to promote it as many of our sarees and products are handloom based. Sometimes there is only a husband-wife team which weaves the sarees. Some of them are very poor and struggle to keep their loom running. Now putting the additional burden of GST on them will discourage them and many of them may not pursue it and leave it,” Pothy told THE WEEK. Pothys, one of the largest retailer in the apparel industry in South India with a special focus on silk, holds a Guinness World Record for creating the world’s longest saree more than a decade back. The company also has a strong focus on the handloom industry. The Chennai headquartered firm is also trying to bring in new innovations in the field of saree weaving and has tried to revive some of the heritage sarees such as the Kodali Karuppur saree, which otherwise is a dying tradition of saree weaving in Tamil Nadu. “Afew year back we had attempted to revive the Kodali Karuppur saree. Each and every thread of this saree has to be carefully woven and only around three people work on it. It took many months for our artisans to work on it and finally the saree was worth Rs 5 lakh at that point of time. We did it out of our interest and not with a commercial sale in mind. Similarly, the attempt in 2005 to create the world's longest single piece sari, that measured 1,276 feet in length and four feet in width was also due to our own interest as we are from a weaving family,” Pothy added. Currently, the company is focusing mainly on large format stores and is planning to expand their stores across South India. “We strongly believe in only large format stores and search for large real estate spaces that can help us set up our stores in prime locations in a city. We have now inaugurated our store in the heart of Bengaluru city. However, we were scouting for a large real estate space for almost a year before we could set it up here. Right now, we will be concentrating only on the South Indian market and do not wish to go pan India as we find it difficult to get large real estate spaces to accommodate our kinds of stores,” remarked Pothy. Interestingly, the company has set up a new showroom spread across 1,00,000 sq.ft. consisting of eight floors, in Bengaluru. The company is also selling sarees to NRI customers across countries through its online sales model that is working for it for sometime. Pothys was established over 90 years ago by K.V. Pothy Moopanar and has different brand of silk sarees namely Samudrika, Parampara and Vastrakala to its credit.
Source: The Week,
Economic activity is likely to have gained momentum in the third quarter of 2017-18, aided by higher industrial growth and central government spending. Gross value added (GVA) is expected to grow 6.8 per cent in the third quarter of 2017-18, up from 6.1 per cent in the second quarter of 2017-18, say economists. It was 5.6 per cent in the first quarter. Investment activity is also likely to see a pick-up in the quarter ended December. The Central Statistics Office (CSO) is slated to issue the numbers for the third quarter (Q3) on Wednesday, as well as the second advance estimates for 2017-18 (FY18). Industrial activity is likely to have gained in the third quarter as the effect of transition to the goods and service tax (GST) wears off. A Business Standard analysis of 1,000 companies shows GVA at current prices grew 16.2 per cent in Q3FY18, up from 11.2 per cent in the second quarter (Q2). The GVA of these firms had slumped to a low of 2.4 per cent in the first quarter (Q1), with production cut in anticipation of the GST roll-out. By comparison, the CSO says, GVA at current prices had grown 8.3 per cent in Q2 of last year, up from 4.9 per cent in (Q1). Soumya Kanti Ghosh, group chief economic advisor of State Bank of India, said in a research note: “Results of 3,415 listed entities show an encouraging growth of 17.08 per cent in bottom line, whereas the top line grew 11.36 per cent in Q3FY18 as compared to Q3FY17. We believe that manufacturing GVA would be in the range of 8-10 per cent for Q3FY18 if the trend persists for the other companies.” Gross domestic product (GDP) would grow between 6.5 and 7 per cent in Q3, he said, up from 6.3 per cent in the previous quarter. Part of the rise would be due to a favourable base effect, restocking of inventories after the festive season, and a catch-up effect after muted volume growth in the first half of the financial year, said ICRA in a research note, adding GVA would be 6.8 per cent in Q3. Leading economic indicators also suggest an uptick in industrial activity. The Index of Industrial Production, essentially a volume indicator, grew 5.9 per cent in Q3, up from 3.3 per cent in Q2. It had grown 1.9 per cent in Q1. Madan Sabnavis, chief economist at CARE, said: “We anticipate GVA to grow 6.8 per cent in Q3, driven by higher industrial output. Sectors such as cement and steel have shown improvement.” Higher central government spending is also likely to boost growth. “Central government non-interest revenue expenditure grew 9.8 per cent in Q3FY18, up from 0.8 per cent in Q2FY18. It had surged to 26.8 per cent in Q1FY18,” said Aditi Nayar, principal economist at ICRA. However, she cautioned “available data for 22 state governments indicates a slowdown in revenue expenditure growth to 2.9 per cent in Q3FY18 from 11.1 per cent in Q1FY18 and 13.3 per cent in Q2FY18, as well as 15.8 per cent in Q3FY17.” At the aggregate level, ICRA said the services sector would grow 8.8 per cent in Q3FY18, up from 7.1 per cent in Q2FY18, “reflecting the improvement recorded by indicators such as bank credit, cargo handled at major ports, passengers carried by domestic airlines and foreign tourist arrivals.” “We also expect financial, insurance, real estate and professional services to do better, on the back of higher credit growth,” added Sabnavis. On the expenditure side, the GDP data might show an uptick in investments for two reasons. First, the capital goods segment in the IIP grew 11.1 per cent in Q3, up from 4.9 per cent in Q2. The segment had contracted 4.2 per cent in Q1. Second, capital spending by the Centre and states is likely to have risen. “The double-digit growth of capital goods, in conjunction with the near-doubling in capital spending of the Centre and modest rise in capital spending of state governments in Q3FY18 (following two quarters of contraction), may contribute to a pick-up in the assessed growth of GFCF (gross fixed capital formation) in Q3FY18,” added Nayar.
Source: Business Standard
MUMBAI : Cargo growth at the country’s major ports is all set to moderate to 3-5 per cent per annum over the next five years due to the “sedate pace” being logged in by its mainstay commodity coal says a report. Container traffic will be driving the overall volume growth in the next five years with a 6-8 per cent per annum growth every year said a Crisil report today. The port sector witnessed a compund annual growth rate of 4.4 per cent during the past five years which is expected to fall to between 3 and 5 per cent it added. “The moderation would be mainly due to coal. Durign the past five years port traffic growth was led by a surge in coal imports especially at non-major port" it said.
Source: Tecoya Trend
Mumbai, The rupee failed to hold on to its early gains and slipped by 6 paise to end at 64.79 against the US currency today due to fag-end dollar demand from importers and corporates. A robust rally in local equities and sluggish dollar overseas failed to provide any fresh impetus. Overall, forex sentiment turned shaky following a sudden run-up in global oil prices as currency traders stayed on the sidelines amid extreme caution ahead of macroeconomic data releases in a holiday-shortened week ahead. The government will release GDP data for the December quarter on Wednesday. The home currency touched a high of 64.62 and a low of 64.82 earlier. The Indian rupee was under pressure last week on renewed concerns that an imminent Federal Reserve interest rate hike will accelerate capital outflows. The rupee resumed firmly higher at 64.65 as compared to 64.73 previously at the interbank foreign exchange market. It later gained ground to hit a fresh intra-day high of 64.62 on good dollar supply and surging local equities. However, the momentum soon fizzled out due to dollar demand from importers and banks, with the currency retreating sharply to a low of 64.84 in late afternoon deals. The home unit finally settled the day at 64.79, showing a loss of 6 paise, or 0.09 per cent. The rupee had lost a sharp 52 paise last week. On the international energy front, global crude prices extended gains to hit two-week highs largely supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies amid worries over US crude production at near record highs. Brent crude futures were trading at USD 66.81 a barrel in early Asian trading after briefly scaling USD 67-mark. Meanwhile, foreign investors and funds have pulled out nearly Rs 10,000 crore (USD 1.5 billion) from the Indian stock market so far this month primarily due to PNB fraud jitters coupled with global cues. This is against a total inflow of over Rs 13,780 crore by foreign portfolio investors (FPIs) in January, latest data with the depositories showed. The country's forex reserves rose by USD 1.960 billion to USD 421.720 billion in the week to January 16, the Reserve Bank said. The RBI, meanwhile, fixed the reference rate for the dollar at 64.6639 and for the euro at 79.6983. Globally, the US dollar pushed lower against other major currencies on Monday, as caution dominated ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony scheduled later in the week. The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 89.61 in early trade. In cross-currency trades, the rupee fell sharply against the pound sterling to end at 91.02 per pound from 90.25 and fell back against the euro to finish at 79.93 as compared to 79.59 earlier. The local currency also dropped against the Japanese yen to close at 60.77 per yens from 66.59 last weekend. Elsewhere, the pound sterling rebounded to trade at fresh one-week high, taking advantage of hawkish comments from the Bank of England Deputy Governor that interest rates may rise at a faster pace amid weak US dollar. The common currency euro, however, edged higher against the US currency ahead of ECB President Mario Draghi's speech later in the day. In forward market today, premium for dollar edged higher due to mild paying pressure from corporates. The benchmark six-month forward premium payable in July moved up to 116.50-118.50 paise from 115-117 paise and the far-forward January 2019 contract also firmed up to 243-245 paise against 240.50-242.50 paise last Friday.
Source: Economic Times
The fall in the price of cotton for the past few months in the markets in the district has caused much concern to the farming community. The farmers of Salem, Dharmapuri, Ariyalur, Perambalur and other neighbouring districts market their cotton through the weekly auction at the Konganapuram branch of the Tiruchengode Agricultural Producers Cooperative Marketing Society near Edappadi town every week.
Auction
The traders of Coimbatore, Tirupur, Erode and even from neighbouring states used to participate in the auction. The Varalakshmi and PT cotton varieties were in good demand in the auction. Much to the concern of the farmers, the price of these two cotton varieties have registered a downward trend for the past few months. The price of Varalakshmi variety, which remained Rs. 170 per kg a few months ago, registered a steep fall and was between Rs. 60 and Rs. 65 during the auction on Saturday.
Weather
There is a fall in cotton production due to the prevailing inclement weather. The continuous fall in the price of Varalakshmi and PT cotton varieties in the markets has further worsened the situation for the cotton farmers. Meanwhile, cotton was auctioned for Rs. 4 crore at the auction held at the Konganapuram society on Saturday. While PT variety fetched a price between Rs. 4,400 and Rs. 5,340 per quintal, the DCH variety fetched a price between Rs. 5,450 and Rs. 6,000 per quintal. More than 20,000 bags of cotton was auctioned for Rs. 4 crore on the occasion.
Source: The Hindu
Business appears to be normal in silk sari shops at Chinthamaniyur, Semmandapatty and Panchukalipatty villages in Salem district. But the weavers are a worried lot as the fluctuation in pure silk thread price is affecting the industry. They said the shop owners reduce orders when the silk threads price increase as they get fewer customers when they price the saris higher. "Karnataka holds the monopoly in ‘pure’ silk thread business and they fix the price for the entire country," said K Subramaniam, a weaver. He said they were finding it difficult to sustain the business due to the fluctuating prices. Six months ago, 1kg of pure silk thread was available in the market for Rs 2,500 to Rs 3,000, depending on its quality. "Now it is between Rs 5,000 and Rs 5,500," he said. It will go up further after adding 5% GST. Similarly, one kilo of ‘jari’ (used on sari border) was available for Rs 700 four months ago now it has crossed Rs 800. "Along with the base price, we have to pay 18% GST," M Saravanan, another weaver, said. The weavers said textile shop owners, both wholesalers and retailers, reduced the orders when thread prices increased. "We could get good orders if the rates are stable or low," the weavers said. They are appealing to the central government to look into their grievance and save the industry. The weavers also appeal to the central and state governments to get a special ‘logo’ for Salem pure silk saris. "If we get a separate logo, our sales volume will go up," said C P Saravanan, owner, K Perumal Silks, Chinthamaniyur. The weavers and shop owners want the state government to start an exclusive park in Salem for ‘silk saris’ to promote Salem silk across the globe.
Source: The Times of India
Ludhiana: The second day of the 3rd edition of the four-day Garments Machinery Manufacturers and Suppliers Association (GMMSA) Expo India was a huge crowd puller. The Chinese, Korean, Taiwanese and European machines on display attracted a number of buyers and traders to the exhibition. However, there were a number of Make in India products on display at the expo. Indian manufacturers also displayed their machines which also garnered an equal amount of attention as the foreign-made machines. The Make in India products included knitting machines, mini boilers and packaging machines. Ankur Gupta of Shori Chemicals said, “We have arranged live stations for the people to see how a machine functions. Grafica screen printing by Ovaltex, high-speed sublimation printer, promise roller fusing machine and Shaperjet 3D printer are some of the machines things that are on display at our stall.” “We have displayed solar-powered spindle that we manufacture only for the government. A tubular fiber heat setting machine is also on display. We have tried to remove technical glitches and the machine requires almost zero maintenance. It is our pride to be manufacturing machines for use in our own country,” said Lakhbir Singh of GSL Textiles. Gurdev Singh of Elex International said, “We manufacture power flats and semi-jacquard machines. The components of the machines are also manufactured by us. But with the growing technology, we need to compete with other countries as well and for this we need government support.”
Source: The Tribune
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1436.16 |
USD/Ton |
0% |
2/26/2018 |
|
VSF |
2304.17 |
USD/Ton |
0% |
2/26/2018 |
|
ASF |
2682.94 |
USD/Ton |
3.03% |
2/26/2018 |
|
Polyester POY |
1383.29 |
USD/Ton |
1.33% |
2/26/2018 |
|
Nylon FDY |
3566.73 |
USD/Ton |
0.44% |
2/26/2018 |
|
40D Spandex |
5760.43 |
USD/Ton |
0% |
2/26/2018 |
|
Nylon POY |
5965.60 |
USD/Ton |
0% |
2/26/2018 |
|
Acrylic Top 3D |
1625.55 |
USD/Ton |
0.73% |
2/26/2018 |
|
Polyester FDY |
3314.22 |
USD/Ton |
0% |
2/26/2018 |
|
Nylon DTY |
2919.67 |
USD/Ton |
0% |
2/26/2018 |
|
Viscose Long Filament |
1633.44 |
USD/Ton |
0.98% |
2/26/2018 |
|
Polyester DTY |
3787.68 |
USD/Ton |
0.42% |
2/26/2018 |
|
30S Spun Rayon Yarn |
3014.36 |
USD/Ton |
0% |
2/26/2018 |
|
32S Polyester Yarn |
2198.43 |
USD/Ton |
0% |
2/26/2018 |
|
45S T/C Yarn |
3014.36 |
USD/Ton |
0% |
2/26/2018 |
|
40S Rayon Yarn |
3140.62 |
USD/Ton |
0% |
2/26/2018 |
|
T/R Yarn 65/35 32S |
2651.38 |
USD/Ton |
0% |
2/26/2018 |
|
45S Polyester Yarn |
2351.52 |
USD/Ton |
0% |
2/26/2018 |
|
T/C Yarn 65/35 32S |
2540.90 |
USD/Ton |
0% |
2/26/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
2/26/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
2/26/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
2/26/2018 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
2/26/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
2/26/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15782 USD dtd. 26/2/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A bill recently introduced in the California State Assembly would require all clothing made from fabric that is more than 50 percent polyester to bear a conspicuous label warning that the garment sheds plastic microfibers when machine washed, so instead the label would recommend hand washing. If the bill passes, the sale or offering for sale of clothing without this label would be prohibited as of Jan. 1, 2020. Hats and shoes would be exempt. According to the bill, garments made from synthetic fibers such as polyester can shed up to 1,900 microfibers per wash. Since these fibers “are small enough to get past filters, they’re ending up in waterways and the ocean,” said a statement from a bill sponsor, Assemblyman Richard Bloom (D., Santa Monica). “Plastic microfibers are making their way from washing machines into our seafood and even into the water we drink,” Bloom said. He cited research from the University of California, Davis that sampled fish and shellfish sold at local California fish markets and found 25 percent of fish and a third of shellfish contained plastic debris, with the majority of that plastic debris being microfibers. The United Nations has warned about the impact of microplastics, which the Hohenstein Institute notes has generally been defined as particles under 5 millimeters in length that are showing up in the world’s waterways. According to Jan Beringer, head of research and development for Hohenstein’s Department of Function and Care, microplastics have the potential to poison the food chain, as these tiny beads of plastic have been found in the stomachs of marine life, as well as the supply of drinking water. The Hohenstein Institute has embarked on a study aimed at reducing the discharge of microplastics into wastewater, leading to harmful health effects on animals and humans. Hohenstein is applying proprietary technology and testing methods to thoroughly analyze microplastics in industrial laundry effluents. In addition to defining the state of the problem, the test will also explore the washing process for opportunities to minimize microplastics emissions. The Ellen MacArthur Foundation’s 2014 report on the future of plastics estimated that the world’s oceans will contain more plastic than fish by 2050. The California bill is meant to be in line with other efforts in the state aimed at reducing water pollution, including a ban on personal care products containing plastic microbeads, which Bloom said “was eventually applied nationally…through federal legislation signed by President Obama.” Other California efforts include standardized compostability labeling, a requirement for polystyrene packaging to be recycled, and Proposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986. California has long been at the forefront of environmental measures, from air pollution regulations to chemical standards in products, The California Fashion Association registered its opposition to the bill, warning that, like Prop 65 (designed to help Californians make informed decisions about the impacts of chemicals known to cause cancer, birth defects or other reproductive harm), it could result in a “raft of phony ‘class action’ lawsuits” against businesses.
Source: Sourcing Journal Online
Organic cotton cultivated in Pakistan, primarily in Balochistan, will be certified by global agencies from next year, it was announced in a recent meeting in Karachi organised by the World Wildlife Fund-Pakistan (WWF-P) and the Karachi Cotton Association (KCA). WWF-P will supervise the procedure with a certified verifying body inspecting the crop’s quality. The meeting discussed efforts under way to produce certified organic cotton in the country, including issues related to seed, production, demand and developing supply chain and linkages between growers and the textile industry, according to a report in a top Pakistani newspaper. Organic cotton is grown without chemical fertilisers or pesticides. The seeds are not genetically modified and are kept clean from chemical impurities. WWF-P and Control Union Sri Lanka audited and inspected 500 cotton growers in Lasbela district in 2015, and a three-year organic cotton project was launched in 2016 in Lasbela, Sibi and Barkhan districts. This type of cotton is gaining popularity among health-conscious consumers and leading brands. Pakistan initially expects to produce around 50,000 bales of organic cotton and at present imports around 400,000 bales of organic cotton, mostly from India.
Source: Fibre2fashion.
An employee works at a garment factory in Phnom Penh’s Por Sen Chey district in 2014. Vireak Mai. The government released a summary of the country’s industrial sector over the past five years, showing a marked increase in growth across a wide variety of indicators. The report, released by the Ministry of Industry and Handicrafts (MIH) last week, lacks specific data but shows a generally positive trend in the number of factories in the country, the number of workers employed in the industrial sector and the variety of goods produced for both import and export. Cambodia had a total of 1,522 registered factories in 2017, up 37 percent from five years ago when there were 1,108 factories. That growth was halted last year, as the number of factories actually decreased for the first time in five years, down slightly from the all-time high of 1,579 in 2016. The slight drop in the total number of factories could be attributed to the government’s push to diversify from garment factories and pursue more large-scale projects, according to Hort Pheng, director of the Industry Affairs Department at MIH. “Now we’ve almost filled demand for garment factories, of which there are already more than a thousand,” Pheng said. “Now our policy will focus on attracting investment for technical factories, as a potential industry that promotes large scale” projects and operations. The number of garment factories grew 29 percent over five years and now stands at 1,031, about two-thirds of the total number of factories. The remaining one-third of the factories were a diverse set of manufacturing operations, including 117 food, beverage and cigarettes factories 104 chemical rubber and plastic factories and 44 paper processing factories. Factories in the Kingdom generated $10.79 billion in revenue last year, up 70 percent from 2013. More than $7 billion of that total came from the export-focused garment industry, while domestic industries generated another $2.62 billion. The steady improvement in the industrial sector reflected improvements in the government’s commerce and investment policies, but Cambodia needed to further diversify its workforce and increase the skills of its workers to stay competitive, according to Nguon Meng Tech, director of the Cambodia Chamber of Commerce. “Even if we have a good policy from the government, the industry still needs the human resources and technicians in order to serve new investment,” Meng Tech said. “We have to encourage the emigrant workers to look at working in this country.” Cambodia’s economy has long been reliant on the garment sector, which employed 847,419 workers last year, making up 86 percent of the 982,203 people employed in the industrial sector, according to the report. That puts the country at risk of disruption from potential shocks in the industry or rollbacks in preferential trade agreements. The main importer of Cambodian garments is the EU, which offers Cambodia duty-free access under the Everything But Arms (EBA) agreement, on the condition that democratic and human rights standards are met. Reuters and the Financial Times both reported last week that the EU was considering possible sanctions against the Cambodian government over a crackdown on the political opposition, including a possible rollback of the EBA agreement.
Source: The Phnom Penh Post
The BGMEA University of Fashion Technology (BUFT) has inked a memorandum of understanding (MoU) with SNV Netherlands, a not-for-profit international development organisation, for advanced training and research in the RMG sector. The association will promote and strengthen its academic, training and research activities at both the institutions. BUFT is a prime University of Bangladesh aimed to produce technically competent human resources for the RMG sector of the country. It plays a major role in strengthening the Bangladesh export oriented RMG, textile and other allied industries by providing technically skilled human resources. The memorandum was recently signed by BUFT pro vice-chancellor professor Ayub Nabi Khan and Jason Belanger, country director, SNV Netherlands. (RR)
Source: Fibre2Fashion
Plant bugs and thrips continue to make their presence known in cotton across North Carolina. Thrips have been a longtime nemesis to Carolina cotton, but plant bugs are a fairly new pest in the state and have become more prevalent the past few years. Dr. Dominic Reisig, North Carolina State University Extension entomologist, notes that plant bugs have expanded in the state and last year expanded to new areas. Because of thrips and plant bug pressure, Reisig is urging scouting. “If you’re not checking for plant bugs on your farm, I suggest that you do so,” the entomologist said at an Extension cotton meeting in Wilson Jan. 30. “IPM (Integrated Pest Management) is critical, and the way that we do IPM in all of our crops relies heavily on scouting and identification,” Reisig said. “I cannot overemphasize the value of a scout or a consultant. We have phenomenal independent scouts and consultants in the state we have phenomenal scouts and consultants who work for dealerships. These people help us make good decisions because in order to use the economic threshold, we have to know what inset is out there so that we can use the right insecticide.” For farmers who have heavy thrips pressure, Reisig is recommending the use of insecticides as well as a seed treatment. “My goal is not to get you to spend money. My goal is to get you to spend money if you need it. I think in certain situations we need to up the ante in terms of thrips control. We can’t just rely on seed treatments alone. We have seen resistance to a lot of neonicotinoid class of seed treatments from tobacco thrips,” Reisig said. It is because of the resistance pressure that many farmers will need to use additional chemicals to control thrips. Reisig said farmers will need to determine if a seed treatment alone is enough or if they need to add insecticides. Reisig pointed to work by Dr. Anders Huseth, a field entomologist at N.C. State, that shows that resistance to neonicotinoids is increasing in part because farmers are using many of the same chemicals in both soybeans and cotton. “Where we have a lot of soybean acres we tend to see more resistance. Where we have a lot of cotton acres we see more resistance and where those two overlap we see a lot of resistance. Where there is cotton and not a lot of soy there is less resistance,” Reisig explained. For thrips control, the evidence is excellent that earliest sprays work best. “I feel that you cannot be too early with a spray of Orthene or Radiant,” Reisig said. For plant bug control in North Carolina, N.C. State has adopted best management practices from the Mid-South where plant bugs have been a longtime problem. Reisig encourages farmers to plant their cotton away from corn, which is a source for plant bugs, but he acknowledges that can be a challenge due to rotation schedules. “If you have cotton near corn, recognize this is going to be a good source for plant bugs,” he cautioned. Choosing early varieties and managing the correct fertility are also important for plant bugs. Tall or rank cotton is also a source for plant bugs. “Pay attention to the hairiness of your variety. Plant bugs love smooth leaf and semi-smooth leaf varieties,” Reisig said.
Source : Sourtheast Farm Press
The 1990s were a clothes shopping spree for Americans. At the start of the decade, the US consumed about 40 garments per person annually. By its end, that number had ballooned to about 65 garments per person. The figures, which come from the American Apparel and Footwear Association (AAFA), are basically a proxy for how much clothing, on average, Americans buy—all the garments the US produced, plus all those it imported, divided by the US population. Even accounting for the population expansion, the amount of apparel the country consumed still grew more than 60%.But then something happened right at the start of the new century: the decades-long rise abruptly plateaued. Two recessions—the first in 2001, and then the Great Recession of 2008—slammed the breaks on US clothing consumption. It hasn’t picked up significantly since. Rather than being a temporary malaise, it may represent a fundamental shift in US spending. “We think it’s sort of the new normal,” says Nate Herman, senior vice president of supply chain at the AAFA and its resident economist. Data before 1991 isn’t as reliable, but Herman says the trend looked much the same, if not quite as dramatic as the rise through the 1990s, when lower clothing prices spurred a shopping binge. After a dip during the 2008 recession, shopping did rebound a little. People presumably felt the need to replenish their closets. But the numbers have flattened out again. Herman doesn’t expect consumption to drop much further, barring a major economic downturn, but he thinks the rapid expansion of the American closet that we’ve seen in previous decades has come to a stop for now. The major reasons are large-scale changes in how Americans spend their money. Millennials, shaped by the Great Recession and more populous than the Baby Boomers, are coming into their prime spending years, and they use their money differently than previous generations. Generally speaking, they’re shifting dollars to experiences and away from things, including clothes and shoes. Signs of this change pop up in subtle ways: Instead of buying SUVs for their looks, younger Americans are buying the oversized vehicles because they actually need the cargo space to lug their paddleboards and kayaks out to a lake or seashore. The 1990s ideal of a gigantic closet stuffed with designer clothes (see: Carrie Bradshaw’s shoe closet in Sex and the City or Cher’s AI-assisted smart closet in Clueless) holds less allure these days. Instead, high status is suggested in minimalism and the language of conscious consumerism, and brands are touting their sustainability and recycling efforts. When millennials are spending on material goods, clothing has tough new competition from pricey digital accessories. “If you look at the last peak in per capita consumption, which was in 2006, the iPhone didn’t even exist. It was introduced in 2007,” Herman says. “The kinds of items that are competing with purchases of clothing and shoes have changed dramatically over the last 10, 11 years.” Americans do still buy a lot of clothes—no great surprise in the world’s largest consumer market. The annual US consumption for 2016 works out to every American on average buying more than five garments a month. The Council for Textile Recycling estimates that Americans discard about 70 pounds of textiles per person (pdf), much of it clothing, in landfills each year. But while Americans are still buying lots of clothes, they’re actually spending less of their income on them, in part because they can. Since the early 1990s, clothing prices have slightly declined, even as overall retail prices have climbed steadily. Low-cost options from fast fashion to off-price chains have flourished, while many clothing retailers have come to rely on constant discounts to get shoppers in stores. There are early signs, however, that apparel prices could start rising again. In January, they spiked their most in three decades, as stores scaled back on promotions and up-market labels rebounded. One month doesn’t make a trend, but Herman says there are other indications that “people are willing to invest more in higher quality clothes and shoes, in part because they’re buying fewer of them.”
Source: Quartz
