Dr. Kavita Gupta, IAS, Textile Commissioner inaugurated the new Regional Office of The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) in the premises of Southern India Mills’ Association (SIMA) in Coimbatore on 16th March 2018. Speaking at the inauguration, Dr. Kavita Gupta said that when the production of textile and clothing products doubles in 2025 in value terms, the fibre requirement should also increase tremendously. Dr. Gupta further stated that the domestic textile and clothing industry market is about US$ 110 billion and exports are about US$ 40 billion. She informed that the textile Ministry has set a target of US$300 billion by the year 2025. She remarked that Cotton and Manmade Fibres blends are coming a in a big way and so the scenario is not cotton vs Manmade sectors, but both the sectors are complementary to each other and should go hand in hand. Speaking on the Rebate of State Levies she said that the Ministry has got further allocation of about Rs. 900 crore and the same will be released soon. She also said that the Ministry is also pursuing with the Government on the additional funds required for the Scheme. She stated that the office of the Textile Commissioner has given proposals related to Technology Mission on cotton and Technical textiles to the Textile Ministry. A Seminar on “Emerging Scope for Man-made fibre textiles –Growth & Future Sustainability” was also held on the occasion. Shri Sri Narain Aggarwal, Chairman, SRTEPC; Shri P. Nataraj, Chairman, The Southern India Mills’ Associaiton (SIMA); Shri Ronak Rughani, Vice Chairman, SRTEPC; Shri Anil Rajvanshi, Convenor and Immediate past Chairman, SRTEPC; members of the Committee of Administration of the Council, Shri Selvraj, Secretary General, SIMA, Shri S. Balaraju, Executive Director of SRTEPC and media, etc. were present on the occasion. The Chairman SRTEPC in his address on SRTEPC Activities, Services and Initiatives – its role in Export Promotion and the scope for Indian man-made fibre textiles said that the Indian MMF textile industry has massive capacities and there is scope for growth. The sector has vertically integrated and exports to a large number of countries. He further stated that the MMF textiles Export target for the current fiscal year is US$ 7.5 billion. Shri P. Natraj, Chairman, The Southern india Mills’ Association said that the joint efforts of Grasim, Reliance and SIMA in value addition of MMF had become a success model as larger number of weavers and leading textile had got into viscose/polyester/cotton blends. He said that at least 5 million spindles in South India and equal value in downstream sectors can be converted into synthetic. Shri Jaigopal, Managing Director of M/s Madura Coats Pvt. Ltd. has given a presentation on ‘Emerging Trends in the Man-Made Fibre Textiles Trade’ and urged the participants to go for innovations and produce Smart and Value-added textile items with Man-Made Fibres. Dr. Jayaraman, Assistant Director and Head of the Spinning, SITRA, Coimbatore gave a detailed presentation on ‘Perspective of the increasing significance of Man-Made Fibre Textiles’ and suggested the industry to go for MMF textiles in view of its properties, price fluctuations in cotton fibre etc,. and offered their services in providing technology, training, testing etc.
Source: Business Standard
India’s export promotion schemes face an uncertain future after the United States Trade Representative (USTR) decided to challenge their legality in the World Trade Organisation (WTO). The complaint of the USTR is that India is violating its commitments under the Agreement on Subsidies and Countervailing Measures (SCM Agreement) using five of the most used export promotion schemes, namely, the export-oriented units scheme and sector-specific schemes, including electronics hardware technology parks scheme, merchandise exports from India scheme, export promotion capital goods scheme, special economic zones and duty-free import authorisation scheme.
Terms and conditions
The main argument of the USTR is that India’s five export promotion schemes violate Articles 3.1(a) and 3.2 of the SCM Agreement, since the two provisions prohibit granting of export subsidies. Until 2015, India had the flexibility to use export subsidies as it is among the 20 developing countries included in Annex VII of the agreement that are allowed to use these subsidies as long as their per capita Gross National Product (GNP) had not crossed $1,000, at constant 1990 dollars, for three consecutive years. This provision applicable to the Annex VII countries was an exception to the special provisions provided to the developing countries (the so-called “special and differential treatment”) for phasing out export subsidies. Except Annex VII countries, all other developing countries were allowed a period of eight years from the entry into force of the WTO Agreement, i.e. 1995, to eliminate export subsidies. That India had crossed the $1,000 GNP per capita threshold in 2015 became known when the WTO Secretariat produced its calculations in 2017. An interpretation provided in a 2001 report of the Chairman of the Committee on Subsidies and Countervailing Measures, which is also considered as the document providing the methodology for implementing Annex VII of the agreement, says that countries like India must eliminate export subsidies immediately upon crossing the above-mentioned threshold. In the Doha negotiations, India and several other Annex VII countries sought an amendment of the agreement so as to enable them to get a transition period.
Extension sought
In a submission made in 2011, India, along with Bolivia, Egypt, Honduras, Nicaragua and Sri Lanka, argued that the Annex VII countries should be eligible to enjoy the provisions applicable to the other developing countries, namely, those that had GNP per capita above the threshold. The latter set of countries was required to phase out their export subsidies within eight years of joining the WTO. Additionally, they were allowed to enter into consultations with the Committee on Subsidies and Countervailing Measures, not later than one year before the expiry of the transition period, to determine if there was a justification for the extension of this period, after examining all of their relevant economic, financial and development needs. But this proposal, like all other proposals made as a part of the Doha Round negotiations, remains unaddressed.
What needs to be done
It needs to be pointed out that this is not the first time that the U.S. has put India’s export promotion schemes under the scanner; although this is the first instance when its Trade Administration has initiated a WTO dispute involving these schemes. In 2010, the U.S. had questioned the export incentives provided to the textiles and clothing sector as a whole, arguing that this sector had a share in global trade exceeding 3.25% and had therefore become export competitive. The U.S. pointed out that according to Article 27.5 of the SCM Agreement, any Annex VII developing country which had reached export competitiveness in one or more products must gradually phase out export subsidies on such products over a period of eight years. There was, therefore, considerable pressure on the Department of Commerce to consider its future strategies regarding export promotion schemes. It was perhaps the pressure that spoke when the Foreign Trade Policy (FTP) of the National Democratic Alliance government unveiled in 2015 did some serious introspection about the future of export promotion schemes, the first time that any government had done so. The policymakers recognised that the extant WTO rules and those under negotiation were aimed at eventually phasing out export subsidies. The FTP took this as a pointer to the direction which export promotion efforts in the country must take in the future: a movement towards more fundamental systemic measures and away from incentives and subsidies. A similar note was sounded in the mid-term review of the FTP released in December 2017. This document was significant also because the Indian government showed its awareness that the country was at the verge of losing the benefits of being an Annex VII country. Contrary to the pronouncements made in the FTP, the government has continued to increase its outlays on export promotion schemes. In 2016-17, the total outlay on export promotion schemes was ₹58,600 crore, an increase of more than 28% in three years. During this period, the largest export promotion scheme in place currently, the Merchandise Exports from India Scheme (MEIS), was introduced to promote exports by offsetting the infrastructural inefficiencies faced by exports of specified goods and to provide a level playing field. The scheme initially covered 4,914 tariff lines and was subsequently increased to cover 7,914 tariff lines. In recent months, there has been a two-fold expansion of the scheme: one, to enhance the MEIS rates of ready-made garments from 2% to 4%; and two, to increase the MEIS benefits for all labour-intensive and MSME sector products by 2%. These expansions in the scope of MEIS increased the total outlay on the scheme to nearly 60% over the level in 2016-17. The utility of export subsidies to promote exports has long been questioned. While the real impact of these subsidies has never been clearly measured, what has been quite evident is they have benefited the rent-seekers. There is, therefore, a strong case for the government to invest in trade-related infrastructure and trade facilitation measures, which can deliver tangible results on the export front.
Source: The Hindu
In a bid to introduce best global practices and technological up-gradations in the embroidery sector, the ministry of state for textiles has launched a unique wellness programme aimed at the overall development of the workers employed in the sector. The move is expected to bring relief to almost 45 million people associated with the industry. Despite the prevalent world status, the textile sector has been experiencing new difficulties, largely due to technological obsolesces and fatigued workforce. Taking this into consideration, Embroidery Intelligence Quotient (EMBiQ) commissioned an expert panel to conduct an in-depth study of the varied working conditions and associated health risks of all departments of the apparel industry. The programme was unveiled by Ajay Tamta, minister of state for textiles, along with HKL Magu, chairman Apparel Exporters Promotion Council and Sudhir Dhingra, chairman, Orient Craft Ltd. The EMBiQ wellness programme is a comprehensive programme covering lifestyle changes, nutrition, yoga and exercises, which can be followed easily to overcome the health issues faced by the workers in the sector, specifically, while performing their job-role. It incorporates well researched diet plan which is both effective and affordable and safety guidelines aimed at avoiding accidents in each function. Keeping in mind the immediate need of a wellness module, it has also been decided to make it available to all workers for free. It is a token of gratitude for their immense contribution towards developing the embroidery sector, the ministry said in a press release. In times when the apparel and textile industry has been facing stiff competition, the focus must always be on out-of-the-box thinking for improving efficiency and productivity. EMBiQ wellness module is a step in that direction. "What EMBiQ has offered is unique in the industry. The programmes have not been offered by any existing institute. If we have to make our industry grow, we have to invest in training & development. Any issues that the garment experts have regarding GST & duty draw backs, will be addressed by the government very soon," Ajay Tamta said. "Apparel industry is the biggest employment generator in the country with computer embroidery being its forte. It is imperative that the vision EMBiQ has shared and quickly implemented across the industry. It is the tool that can help the Indian apparel expert face the challenge it is facing today," HKL Magu, chairman AEPC. "At EMBiQ our vision is to empower the apparel industry with the Power of Knowledge by bridging the gap through technical and management education which has been neglected so far in the embroidery domain," Vikas Kapoor, co-founder.
Source: Fibre2Fashion
India’s exchange rate is a stumbling block in rapid export growth and the country will miss out on the opportunity to cash in on the high world growth visible now, unless corrective action is taken. Delivering a lecture last week in memory of former Planning Commission member and ET columnist Saumitra Chaudhuri, C Rangarajan weighedin against any aggressive policy of undervaluation but strongly recommended adjusting the nominal exchange rate to keep the real exchange rate steady, while working towards price stability and productivity growth, particularly in the traded sectors. The two factors driving export growth, by any estimate, are world growth and the real effective exchange rate (REER). The higher world growth, the higher export growth. The higher India’s REER, the lower India’s export growth. REER, with 2004-05 as 100, has been climbing: 122.71 for 2015-16, 125.17 for 2016-17 and 126.77 last month. The good news is that the February figure is lower than that for January. If the US Fed does go ahead and raise rates as it has announced it would, an outflow of dollars from the capital markets is likely to lower both the nominal and real exchange rates. The reality is that capital flows, both direct and portfolio, have a greater role in determining the exchange rate than current account transactions. Thanks to India being the world’s largest recipient of remittances and being a robust exporter of services, a large surplus in non-merchandise flows allows India to run up a huge deficit in trade in goods: 5% of GDP in 2016-17, when the current account deficit (CAD) was just 0.7% of GDP. CAD this year is expected to be 2% of GDP, still within prudent limits. India has over $420 billion of forex reserves, but these are derived from unabsorbed capital inflows and not current account surpluses, making it imperative that India maintain external confidence, for which a low current account deficit is essential. Lower interest rates would stem hot money inflows, but that calls for a grip on inflation, in turn, calling for fiscal restraint and good supply-side management.
Source: The Economic Times
Concerned over what it perceives as a tendency among a section of taxpayers to over claim transitional credits in the GST regime, the Centre has arrogated to itself the power to verify these claims, a move that might not go down well with the state governments. Since the launch of the GST, taxpayers have claimed Rs 1.6 lakh crore transitional credit (for taxes like excise and service tax paid in the pre-GST period), denting the central GST (CGST) payments in cash. In a set of instructions to field formations, Central Board of Excise and Customs (CBEC) chairperson Vanaja S Sarna said, “C-GST officers of the central government shall have the jurisdiction for verification of transitional credit of CGST irrespective of whether the taxpayer is allotted to the central government or the state government for the purposes of GST.” The CBEC justified the move on the grounds that the verification exercise can only be done by the tax authority, which had legal jurisdiction under the erstwhile law and also has the requisite past record of the taxpayer. According to an administrative power-sharing arrangement between the Centre and states approved by the GST Council, 90% taxpayers below the turnover of Rs 1.5 crore are under the administrative control of states and the rest is under the Centre. Assessees with turnover higher than Rs 1.5 crore are equally divided between the Centre and states. According to the CBEC circular, the department will undertake detailed verification of transitional credits claimed by taxpayers since GST rollout. While the claims are seen to be high, a preliminary enquiry, sources said, revealed that only 5-7% of claims are invalid. “This (verification only by Centre staff) could lead to litigation between states and the Centre as it would create a precedent even for future audits of such taxpayers,” Rashmi Deshpande, associate director at Khaitan & Co, said. Additionally, the CBEC note directs officials that the CGST Act would be amended to specifically exclude credit of cesses paid in earlier regime as valid. “Appropriate action in this direction would be taken whenever the CGST Act is amended next. You may keep this direction in view while verifying transitional credit,” the letter said. Experts said many taxpayers have claimed credit for Swachch Bharat and education cess paid in the earlier regime as the law doesn’t specifically prohibit it. In the earlier regime, credit of cesses could be offset against cess liability, but the CGST law doesn’t have any provision for such accumulated credit, Deshpande said. She added that any amendment to exclude cess credit must provide a way forward for dealing with it. However, Vishal Raheja, DGM at Taxmann, said the government was well within its rights under the law to issue these instructions.
Source: Financial Express
The global trading mechanism is facing significant challenges due to protectionism and other factors, said Roberto Azevêdo, director-general of the World Trade Organization (WTO). “We are facing many challenges, in and outside. The trade environment globally is very risky,” he said here after an interactive session with India Inc leaders, organised by the Confederation of Indian Industry (CII). He is in Delhi to attend a mini-ministerial meet over two days. The recent tussle between member-nations over the dispute settlement system (DSS) at the multilateral body also has to be addressed. “We have a DSS compromised by the blockage in the appointment of appellate body members and this would be the focus of the conversations in New Delhi,” he said. The lack of judges on the body has become a serious concern,as it is the principal body tasked with arbitration between nations on trade disputes, many of which continue to pile up. The Government of India (GOI) had repeatedly raised this issue at the earlier ministerial conference at Buenos Aires, with commerce and industry minister Suresh Prabhu urging swift action to resolve the impasse. Trade expert and Jawaharlal Nehru University professor Biswajit Dhar said the US had single-handedly and consistently blocked the appointment of judges to the seven-member dispute settlement body. “Three members have retired and a fourth is set to retire soon,” he added. The US continues to be the centre of multiple discussions at the ongoing summit, since its current government has been attacking the WTO as an ineffective mechanism and is threatening a trade war against multiple nations, including India. While saying the US supports the WTO, Azevêdo added it had some concerns in the way the organisation functions. “The US maintains that the world has changed significantly since WTO’s inception in 1995 and some upgrades and reforms are in order. The conversations are ongoing and whatever comes out of New Delhi is useful to the conversations we will be having in Geneva,” he said. After the collapse of the Buenos Aires ministerial talks last December, the GOI called this ‘informal’ meeting of ministers, without a pre-announced agenda. Commerce secretary Rita Teaotia has said this second WTO mini-ministerial meeting being hosted by India — the first one was in 2009 — was necessitated by challenges such as rising protectionism. Azevêdo brought up a proposal to frame a set of rules on e-commerce, a senior CII official said. The proposal has been marked by a tug of war between richer nations, led by the US. The US has backed the idea and others, including India, had been dead against. India says this market is dominated by American majors, a point echoed by majors in the sector here on Monday, the official said. The DG is also pushing for newer issues such as gender parity in trade and rules for medium and small-scale enterprises.
Source: Business Standard
It was another volatile week for the rupee. Though the currency opened on a weak note and fell initially, it regained strength thereafter. The rupee fell to a low of 65.66 on Tuesday last and reversed sharply higher after the outcome of the Reserve Bank of India’s monetary policy on Wednesday. The RBI left the repo rate unchanged at 6 per cent as was widely anticipated by the market. However, the impact of the RBI’s decision on the rupee was short-lived and it reversed lower again after making a high of 64.95. The currency closed at 65.36 on Monday, down 0.12 per cent for the week.
Data release
Key macro-economic data are scheduled for release this week. The Index of Industrial Production (IIP) and the Consumer Price Index (CPI) inflation, both are due for release on Thursday. Among them, the CPI will be most watched. The CPI in August had moved up to 3.36 per cent from 2.36 per cent in the previous month. Market will be keen to see which way the inflation moves. India’s trade balance data is also scheduled for release this week.
US wages picking up?
The dollar index extended its upmove for the fourth consecutive week. The index made a high of 94 and has come-off slightly from there on the back of mixed reaction to jobs data released on Friday. Data showed that the non-farm pay-roll declined by 33,000 while the average hourly wages increased by 2.9 per cent (year-on-year) in September. Experts believe that the increase in wages could be because of the hurricane that hit the US. But the trend shows that the wages in the US is picking up. The employee wages have been moving higher over the last three consecutive months. This strengthens the case for the next rate hike in December. The dollar index, currently trading at 93.70, has an immediate support at 93.60. If it manages to reverse higher from there, a rise to 94.3 is possible. Further break above 94.3, will pave way for the next target of 95. Such a rally in the dollar index may cap the upside in the rupee in the coming days. On the other hand, if the dollar index breaks below 93.6, it can fall to 93 or 92.85. The region between 93 and 92.85 is strong support for the index which is likely to limit the downside in the near-term.
Rupee outlook
Inability to breach decisively above the psychological level of 65 in the past week is a negative. A strong break below the immediate support at 65.5 can bring the rupee under pressure again. Such a break will increase the likelihood of the currency declining to 65.70 initially. Further break below 65.70 will see the rupee weakening to 66 or even 66.30 thereafter. On the other hand, if the rupee manages to reverse higher from 65.5, it can strengthen to 65 again. A range-bound move between 65 and 65.5 is possible for some time. The currency will need to break above 65 decisively to gain momentum. Such a break can take the rupee higher to 64.80 or 64.75. The next resistance is at 64.60 which is likely to cap the rupee’s strength in the short-term.
Source: Business Standard
New Delhi: India and Hong Kong on Monday entered into a double taxation avoidance agreement, aiming to facilitate investment flow between both countries and prevent tax evasion. “The agreement will stimulate flow of investment, technology and personnel from India to HKSAR (Hong Kong Special Administrative Region) and vice versa, prevent double taxation and provide for exchange of information between the two contracting parties. It will improve transparency in tax matters and help curb tax evasion and tax avoidance,” the tax department said in a statement. Investors will get an advantage of a lower withholding tax of 10% on interest or royalties provided they fulfil the main purpose test which broadly checks that the transaction is not entered specifically to avoid taxes. It also provides for capital gains taxation of indirect transfers. It provides that gains from sale of shares of a company deriving more than 50% of its value from property situated in a country will be taxed in that country. Abhishek Goenka, partner and leader-corporate and international tax, PwC said in a note that the treaty was important. “Hong Kong is an important financial and trading partner and the absence of a treaty was a hindrance. While there are no major sops, the rate of 10% withholding on interest stands out. Similarly, there are exemptions for airline and shipping companies. There is also some relief on capital gains tax where values of companies are not derived more than 50% from real estate. The treaty will also facilitate better exchange of information and tax cooperation,” he said in a note. Rakesh Nangia , managing partner, Nangia & Co. LLP, said the agreement will give protection against double taxation to over 1,500 Indian companies and businesses that have a presence in Hong Kong as well as to Hong Kong-based companies providing services in India. “Interestingly, the BEPS (base erosion and profit shifting) inspired anti-abuse measures have found place in the DTAA with Hong Kong since both the jurisdictions are signatories to the Multilateral Instrument under BEPS,” he added.
Source: Livemint
MUMBAI: The credit to micro, small and medium enterprises (MSMEs) is expected to grow at 12-14 per cent over the next five years, helped by higher lending by non banking finance companies (NBFC) to the segment, says a report. As on March 2017, credit to MSMEs stood at Rs 16 trillion. NBFC and housing finance companies are expected to expand at about 20-21 per cent compounded annual growth rate (CAGR) in this space during the period, while bank credit to this segment, which accounted for about 84 per cent of total MSME credit, is estimated to grow at a lower CAGR of 9-11 per cent, according to a report by Icra. "Non-banks share in the MSME credit pie should expand to 22-23 per cent by March 2022 compared to 16 per cent in March 2017. Non-banks, with their niche positioning, differentiated product offering, good market knowledge and large unmet demand, would be able grow at a healthy rate vis-a-vis banks," the rating agency's assistant vice president and sector head, A M Karthik said. He added there is large unmet credit demand in the MSME segment, which was estimate to be about Rs 25 trillion in FY2017. "Notwithstanding the estimated growth, the unmet credit demand quantum is likely to increase further, going forward," he said. With large corporate credit expected to remain sluggish, at least over the next one-two years, the bank credit to the MSME segment is expected to be around 9-11 per cent with public sector banks growing at 7-9 per cent and private banks at 16-18 per cent, the report said. Banking NPAs in the MSMEs segment stood high at about 8.4 per cent in March 2017 while that of non-banks stood at about 3 per cent as on that date. The report said notwithstanding the moderate seasoning of the portfolio, non-banks have a more flexible and customised credit assessment for this segment and have steadily been moving to lower ticket loans, in view of the asset quality pressure in the large ticket loans and better yields in the smaller ticket loan categories. "While non-bank asset quality is expected to worsen from current levels, the extent of deterioration may be lower than that witnessed in banks," the report said.
Source : Business Line
S Suganthi, 31, was an embodiment of all that Tirupur entrepreneurs are made of — ambitious, hardworking and entrepreneurial. She inspired many when she started a micro garment manufacturing unit at Vengamedu in Angeripalayam, a couple of years ago. She wouldn’t have imagined that a day would come when she would have no money to recharge her phone. But she met that fate on March 12 this year and hanged herself to death that day. Tirupur has enough success stories of self-made businessmen who worked their way up from scratch. But of late there seems to be a spurt in business failures, driving entrepreneurs to suicide. Suganthi’s is the fourth suicide of an entrepreneur in Tirupur’s knitwear industry in the past six months. With a large migrant population plagued with socio-economic problems, Tirupur always topped the suicide chart in the state. But, now the slumping numbers in the textile industry have alarmed veterans and beginners alike. The industry since 2008 has witnessed constrains including global economic recession, steep rise in yarn prices, closure of dyeing units and labour issues. "But now, aggressive international competition, business slowdown in the wake of demonetisation and GST have made survival a big question,’’ said S Govindappan, vice-president of South India Hosiery Manufacturers Association. There is a cascading effect. Competition from countries like Bangladesh and Vietnam has chipped off global orders from Tirupur. When business falls for large enterprises, orders to smaller units also dry up, like it happened in Suganthi’s case. Banks and private lenders have tightened their purse strings when it comes to helping small businessmen in crisis. On the day of Suganthi’s death, her husband went out to borrow money but had to return empty handed. V Manikandasamy of Sankaradampalayam, who committed suicide in January this year, had a huge debt to repay to banks, but no orders to earn that money. His wife Sri Vidhya blames government policy for his death. "Tirupur always gave hope. Now that has been taken away since the chances of surviving a business failure has thinned," she said. "It started with rupee appreciation or US dollar/Euro depreciation, ahead of GST implementation. It was a time when the knitwear industry was already losing its international competitiveness. The Centre promised that GST would bring down prices of raw materials but it did not happen," said T R Vijaya Kumar, general secretary, Tirupur Exporters’ Association. Bigger companies have the means to weather crises, but small players suffer. They were not prepared to take the blow of drastic reduction in incentives given to exporters and stringent GST norms. "Small units, especially those who availed huge loans for expansion are finding it hard," said M P Muthurathinam, president of Tirupur exporters and manufacturers’ association. Industry sources say the Centre has not cleared more than `1,900 crore dues including GST returns, duty drawback and RoSL. "But the same government has failed to restrain to its tax collecting agencies or banks to be lenient with entrepreneurs on repayments" said Vijayakumar. R Annadurai, managing trustee, Tirupur Thozhil Pathukappu Kuzhu (foundation for protection of Tirupur industries) said the organisation has formed a new wing consisting of a psychiatrist, a retired general manager of a nationalised bank, and an advocate to "counsel entrepreneurs and workers who show suicidal tendencies and help them solve their financial woes". Thirugnanam, a member of the foundation says around 10 entrepreneurs have committed suicide due to the business-related issues in the past two years. While companies send a consignment, they have to pay 100 % GST to the government. But the buyer may take up to five months to settle the entire amount. Till then the company must be able to bear the burden of the unpaid dues. "This was the practice for several years. But now tax collection has become stringent. Though government says GST for textiles is only 5 % there are hidden taxes and we pay up to 13 % tax, which becomes a unbearable for small and new players ’’ said K S Babuji, secretary, South Collar Shirts and Inner Wear Small Scale Manufacturers Association. With the exports witnessing a consistent fall since mid-2017, industry experts say it’s time the government relaxed tax norms and offered incentives to help entrepreneurs tide over the crisis. "The Centre is making macro-economic corrections like demonetisation and GST. But it has failed to realise the importance of micro hand-holding supports like providing right rate for duty drawback and other incentives," said Raja M Shanmugam, president of Tirupur Exporters’ Association.
Source: The Times of India
New Delhi : The production of raw silk in the country is estimated to be 33,840 MT in 2017-18 as against 30,348 MT in 2016-17, Minister of State (MoS) for Textiles Ajay Tamta informed the Rajya Sabha on Monday. He said, the estimated cumulative annual growth rate (CAGR) of Silk sector is 6. 40 per cent based on the progress of silk sector during the last five years. Mr Tamta said, the Government has approved a project-based strategy for the North East Region under an umbrella scheme North East Region Textile Promotion Scheme (NERTPS)to boost the Silk sector in the region. Under the scheme, among various projects of Textile sector, sericulture projects have been approved under two broad categories - Integrated Sericulture Development Project (ISDP) and Intensive Bivoltine Sericulture Development Project (IBSDP).
Source: UNI
The power loom weavers of Sircilla textile town in Rajanna-Sircilla district have their hands full as the State government has placed bulk orders for school uniforms, Ramzan gifts and Bathukamma sarees. Following controversies over the distribution of Bathukamma sarees during the last Dasara, this time the government has exercised caution by placing order for Bathukamma sarees only with the Sircilla textile town, providing employment to the weavers and others belonging to various allied sectors of the textile industry, consistently for more than six months. It may be recalled that last year the government had placed the bulk orders for Bathukamma sarees in the month of May, and the weavers could weave only 60 lakh sarees. In order to avoid last-minute rush, the orders were placed well in advance. As per the textile calendar, the power loom weavers have already completed working on school uniforms worth ₹55 crore measuring 120 lakh metres under the Rajiv Vidya Mission. They had also handed over fabric worth 10.22 lakh metres to social welfare department and Ramzan gifts of 25 lakh metres for shirting and 30 lakh metres for pyjamas.
A total of 85 lakh sarees worth ₹250 crore would be distributed among the BPL women for the Bathukamma festival this year. The State government had already placed orders for the sarees and the weavers have also placed orders for the procurement of yarn to begin the production from first week of April onwards. The government’s bulk order would ensure salary worth ₹16,000 per month against the regular salary of ₹8,000 to ₹10,000 per month for the weavers. Assistant Director (Handloom and Textiles) Ashok Rao told The Hindu that Bathukamma sarees would be weaved by a total of 25,000 power looms providing employment to 10,000 weavers directly and another 10,000 weavers indirectly with allied sectors of power loom industry.
Source: The Hindu
Kohl's was one of two dozen major retailers to sign a letter expressing their concerns over any retaliatory tariffs imposed against China. A number of major national retailers, including Menomonee Falls-based Kohl’s, Sears, Target andWal-Mart, have sent a letter to President Donald Trump to express their concerns about the impact of the president’s proposed tariffs. The letter, signed by retailers that represent $1.5 trillion in annual sales and tens of million of American jobs, said the industry is concerned that any benefits from reform for retailers and families will be wiped out by broadly applied tariffs on every day consumer products. The retailers are joined in their concerns by the Retail Industry Leaders Association, American Apparel & Footwear Association and the National Retail Federation. Trump’s tariff policy, which proposes adding tariffs on imports of steel and aluminum, could include retaliatory actions against China as part of a White House investigation into unfair Chinese technology and intellectual property policies and practices. The retaliation package could include widespread tariffs on consumer goods, like electronics, apparel, footwear and home goods, the retail industry said in a press release. "We support holding our trading partners accountable and using targeted trade remedies against intellectual property theft, illegal dumping or subsidies, and other proven trade violations," the signers said. "At the same time, we are concerned about the negative impact as you consider remedial actions under Section 301 of the Trade Act could have on America's working families…applying any additional broad-based tariff would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics, and home goods.” Rick Helfenbein, president and CEO of American Apparel & Footwear Association, noted that more than 41 percent of clothing, 72 percent of footwear and 84 percent of travel goods sold in the U.S. are made in China. “A tariff on these products would be a tax on every American,” Helfenbein said. In addition to increasing costs for American families, this action could result in retaliatory tariffs that target American businesses, resulting in job losses. At the end of the day, this could be disastrous for American families, American workers, and American businesses.” In addition to Kohl's (NYSE: KSS), other retailers signing the letter include Best Buy, Macy's, Michaels, Abercrombie & Fitch and Dollar Tree.
Source: David Schuyler
NEW DELHI: Ahmedabad-based Arvind Ltd expects Rs 10,000 crore business from its textiles business in the next four to five years, a top company official said. Besides, in the next three to five years, the company intends to invest Rs 1,500 crore in the textiles business to expand capacity of its existing units as well as set up new facilities. The company is exploring newer areas such as athleisure, where it is sensing a significant opportunity. "Overall the textiles business for us is around Rs 6,000 crore and we would take it to Rs 10,000 crore over the next 4 to 5 years," Aamir Akhtar, Arvind Ltd CEO Lifestyle Fabrics - Denim told PTI. The company expects to continue its CAGR growth of 16 per cent and above in the coming years, he added. Arvind Ltd is in the process of demerging its branded apparel and engineering businesses. It has plans to list its branded apparel business, Arvind Fashions, into a separate entity. Arvind Ltd is in denim, knits & wovens and voiles textiles segments. Denim contributes a large chunk at present, he said, adding that the company is also going for verticalisation. "Rather than just manufacturing fabric, a large part of it would be converted into garments as well," he said adding "the significant customer base which we have, we would be one stop supplier for them and give them entire thing end to end." Besides design, Arvind would co-create and supply them the finished product after manufacturing. Leading brands such as GAP, Levi Strauss & Co, H&M and Patagonia are its key customers. Arvind Ltd today showcased its exclusive denim collection here named 'GRAVITY' along with Invista, one of the world's largest integrated producers of fibres at its annual event called Arvind FESTIVE 2018. FESTIVE 2018 also witnessed the launch of futuristic denim technology brands like E-Indigo, Boomerang 360, Boomerang Bounce, Chrome Cord and Hybrid Chinos.
Source: The Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1396.35 |
USD/Ton |
-0.28% |
3/19/2018 |
|
VSF |
2335.14 |
USD/Ton |
0% |
3/19/2018 |
|
ASF |
2761.15 |
USD/Ton |
0% |
3/19/2018 |
|
Polyester POY |
1371.90 |
USD/Ton |
0% |
3/19/2018 |
|
Nylon FDY |
3660.50 |
USD/Ton |
0% |
3/19/2018 |
|
40D Spandex |
5995.64 |
USD/Ton |
0% |
3/19/2018 |
|
Nylon POY |
1625.13 |
USD/Ton |
0% |
3/19/2018 |
|
Acrylic Top 3D |
3826.17 |
USD/Ton |
0% |
3/19/2018 |
|
Polyester FDY |
5964.08 |
USD/Ton |
0% |
3/19/2018 |
|
Nylon DTY |
1605.41 |
USD/Ton |
0% |
3/19/2018 |
|
Viscose Long Filament |
3392.27 |
USD/Ton |
0% |
3/19/2018 |
|
Polyester DTY |
2966.26 |
USD/Ton |
0% |
3/19/2018 |
|
30S Spun Rayon Yarn |
3045.15 |
USD/Ton |
0% |
3/19/2018 |
|
32S Polyester Yarn |
2169.48 |
USD/Ton |
-0.36% |
3/19/2018 |
|
45S T/C Yarn |
3013.60 |
USD/Ton |
0% |
3/19/2018 |
|
40S Rayon Yarn |
2319.37 |
USD/Ton |
-0.68% |
3/19/2018 |
|
T/R Yarn 65/35 32S |
2540.26 |
USD/Ton |
0% |
3/19/2018 |
|
45S Polyester Yarn |
3187.16 |
USD/Ton |
0% |
3/19/2018 |
|
T/C Yarn 65/35 32S |
2713.82 |
USD/Ton |
0.58% |
3/19/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
3/19/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
3/19/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
3/19/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
3/19/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
3/19/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15778 USD dtd. 19/3/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
To boost the cotton production and increase its cultivation area by 45 percent by 2025, an action plan has been prepared which recommends to rationalize existing excessive incentives for sugarcane. The recommendation was part of the action plan presented to a meeting of the federal cabinet for increasing the cotton production in the country. According the minutes of the meeting, available with The Nation, the cabinet was informed that due to different factors cotton production had faced virtual stagnation since 1991-92, which had been fluctuating between 10 and 12 million bales, with a disastrous fall to 9.9 million bales in 2015-16. However the cotton consumption was 15 million bales, making Pakistan a net importer of cotton, the action plan said. The reason for stagnation includes use of inappropriate 1st generation, rather that 4th Generation BT technology; absence of quality seeds; lack of solution to CLCV problem; low quality of ginning; and Pakistan's being the most contaminated cotton. These reason had led to declining cotton profitability and 20 percent decrease in the cotton area between 2004 and 2016. The action plan recommended that the cotton production target may be fixed at 25 million bales by 2025 by increasing area from 2.4 million hectares (a 45 % increase) and yield up to 1200 kg/hectare. Research funding may be provided with a restructured PCCC to revive the textile industry financial contributions. Cotton research may be revitalized from PSDP at Rs 2.5 billion for 5 years through competitive FRANTS managed by PARC under IPC. It was also recommended that partnership may be initiated for variety development and marketing, the Seed Act and Plant Breeder Rights Act may be implemented, Sub-standard cotton seed and BT cotton varieties may be regulated.It was also recommended that cotton sector may be regulated by rationalizing over 700 seed companies and disallowing cotton import during cotton picking season.It was recommended in the action plan that Cotton Cultivation may be expended in KP and Balochistan. Spinning and ginning may be improved through better technology, shifting of current weight based pricing to quality based system, and bale labeling by ginners showing quality features. The existing excessive incentives for sugarcane may be rationalized, by replacing its current pricing mechanism with a new linking sugarcane price to the wholesale price of sugar in order to ensure a level playing field for all commodities. The cabinet was also requested that the administrative control of Pakistan Cotton Central Cotton Committee should be transferred to National Food Security and Research Division to strengthen public private partnership in cotton research through increased funding from the public sector and more pro-cotton policies in the overall policy framework. Furthermore, National Food Security and Research Division should also submit an annual report to the cabinet on the actual results achieved by PCCC and implementation of this action plan. The cabinet approved to transfer Pakistan Cotton Central Cotton Committee and related matters from the ministry of textile industry to ministry of National Food Security and Research Division.
Source: The Nation PK.
SALIMA-(MaraviPost)-The much awaited and inaugurated Malawi-China textile company is expected to employ over 1,500 locals once is fully operational come June 2019. The US$30 million textile project will be in two phases including the gunnery and weaving production leading to textile products; clothes among others. With the cotton need production of 100,000 metric tons, the initiative is expected to benefit 200,000 farmers and 1.5 million households once the projects is fully in operational. This is a result of Malawi Investment and Trade Centre (MITC) initiative of engaging potential investors on various developmental projects. President Peter Mutharika told the gathering in Salima on Monday after unveiled a foundation stone for the projects that his government was eying to modernise the lakeshore district of Salima with development. Mutharika assured the public that the Democratic Progressive Party (DPP) government will implement all its projects lined ahead for the country’s transformation. The area’s parliamentarian Felix Jumbe expressed gratitude for the factory saying it will help to create jobs. Lawmaker Jumbe therefore urged government to help farmers with financial support to access improved farm inputs for the initiative.
Source: The Maravi Post
Wearable sensors are getting smarter and innovators in Japan have hit on something that may make tech in fashion even more seamless in the future. Yoshiro Tajitsu, a professor at Japan-based Kansai University, and Teijin Limited, a technology-driven high-performance fiber manufacturer, have created wearable braided cord sensors that could integrate into everyday clothing or traditional garb, and go unnoticed. The braided cords consist of a conductible carbon fiber yarn core, a polymer piezoelectric polyctric poly-L-lactic acid (PLLA) fiber yarn, a polyethylene terephthalate (PET) middle sheath and a conductible carbon fiber outer shield. Both parties are working to incorporate this new technology in fashion, sports apparel and interior design, to remedy issues associated with some conventional wearable sensors, including adaptability and usage. “Our research is aimed at developing functional apparel, sometimes referred to as ‘e-textiles.’ We believe that wearable human-machine devices will enable people to interface with external devices naturally, without being limited or hindered by having to perform complicated movements, such as focusing on a display panel to rely instructions,” Tajitsu said. “Also, e-textiles must be comfortable and fashionable for wide spread acceptance. These ideas led to the development of our wearable sensors shaped like traditional Japanese braided cord or kumihimo used in kimono.” Tajitsu’s team tapped Teijin Limited for its expertise in fiber technology and innovations. Teijin developed many advanced fibers, including Nanofront, an ultra-fine polyester nanofiber designed to deliver performance, and miraim, a high-performance membrane created to improve the fillability of fine particles. With Teijin on board, Tajitsu’s team can understand how the PLLA sensors’ fiber composition could elevate the capabilities of conventional apparel, accessories and other products. Both parties collaborated to test various applications for the PLLA braided cords, including triggering smartphone selfies. Tajitsu’s team weaved three types of traditional Japanese decorative knots, including kame, kicchyo and awaji, to analyze the magnitude of electrical signals expected for each of them when integrated into the traditional Japanese kimono. Testing demonstrated that the largest signal would be yielded by the kame and kicchyo knots, while the awaji knot produced a smaller signal. The team concluded that they would use the kame and kicchyo knots for potential apparel applications, including triggering a smartphone to take a selfie. The PLLA braided cord process involves two core steps. First, it produces electrical signals in response to most 3-D motions, including twisting and bending. Coaxial cable fabrics are woven into the PLLA cords for high sensitivity and electromagnetic shielding, so the PLLA cords can work regardless of environmental noise from cellphones and other forms of electromagnetic interference. The PLLA cords could also be applicable for other products, like accessories, to help consumers monitor bodily function and pulse rates. The sensor innovation comes on the heels of other wearable technology developments designed to elevate garments. Last month, a group of researchers from the University of Bayreuth, Donghua University and Nanjing Forestry University created fabrics that supply electricity to wearable electronic devices and perform advanced functions, including converting sunlight to heat to provide body warmth. Flexible printed electronics are also projected to elevate clothes in upcoming years, by making apparel items more comfortable, lightweight and functional for consumers.
Source: Sourcing Journal Online
Front from left: Student Designer Show judge Andrew Powell, Fashion Council of Fiji chairman Faraz Ali, Karlene Dangerfield and Samson Lee, with student designers and models. The inaugural Student Designer Show organised by the Fashion Council of Fiji is all about uncovering new talents. This was clear when more than 10 fantastic student designers showed what they are capable of designing and producing as garment last Saturday at International School Suva. International School Suva student Oliver Sinclair said he was happy to be part of the show and to be recognised with an award from the Council. The Year 11 student who has been living in Fiji for 11 years has been participating in several fashion shows before. “Ever since I can remember I have been designing and creating art and I think I admire visual arts and established designers both locally and internationally. “I definitely want to go into art and textile design might be at a university or mentorship with established designers. “I am really honored and I want to say thank you to my parents and family and Ms Kate Reimann my art teacher who has supported me through and my supporting friends. He said he created a garment that stands for sustainability and it’s an up-cycle garment and doesn’t affect the environment too much. Fashion Council of Fiji chairman Faraz Ali said: “The inaugural Student Designer Show is something new we are trying as a Council. “So instead of taking in 100s of entries and putting pressure on students to create capsule collections immediately, many of whom have never designed before, we are stripping it back and focusing on basics. “We accepted a limited number of students based on sketches provided so that our judges (this year they were Andrew Powell, Samson Lee, and Karlene Dangerfield) and I can speak to the designers one on one to guide them towards a career in the industry. “In keeping with the Fashion Council of Fiji’s goals of SME development, the selected winners will be mentored by prominent fashion figures such as Andrew Powell, Samson Lee, Ilai Jikoiono, Hupfeld Hoerder and so forth, to create capsule collections that will be exhibited at the Fijian Fashion Festival, our national platform and the region’s premier fashion event, for maximum exposure. “Our goal is to then have these young designers retail their capsule collections through boutiques such as House of Design and the like, and to have them work towards launching a full collection in the future. “Longevity, and a successful fashion career is so much more important than a few minutes in the spotlight. “The British Council Valuing Voices programme that supported the inaugural Student Designer Show is about giving young people a voice, and that’s also exactly what we as a Council are committed to.” The Bottega Gold Fijian Fashion Festival an intiative by the council is scheduled for June 1 and 2 at the Grand Pacific Hotel, Suva.
Source: Fiji Sun Online
