The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) has welcomed the skill development scheme announced by the Union Textiles Minister recently. Chairman of the council Narain Aggarwal has said in a press release that the outlay of Rs. 1,300 crore for the scheme to cover the entire textile value chain would put the industry back on track.
Support agency
The Textile Committee would be the resource support agency for the programme and it would develop the content, specify the infrastructure needs, standardise the admission assessment certification, etc. The biometric process for selection of candidates, mandatory Aadhaar card and ensuring real time attendance would bring in effective implementation of the scheme.
Source: The Hindu
Over 150 textile mills in the region have sent letters to the Union Textile Minister seeking reduction of hank yarn obligation. It is mandatory for the textile mills to sell in the hank form 40 % of the yarn they produce so that the yarn needs of the handlooms are met. Members of the Indian Texpreneurs Federation have demanded that the obligation should be reduced to 10 %.In the letter to the minister from the association and its members, the mills pointed out that between 1987-1988 and 2009-2010, the number of handlooms declined by 41 % (from 36.10 lakh looms to 21.47 lakh). However, yarn production has increased 133 % (from 1321 million kg to 3079 million kg). Handloom fabric production is likely to reduce further now while yarn production is only on the rise. Further, under the Goods and Services Tax, both, cone yarn and hank yarn attract uniform 5 % tax. The mills are unable to market the hank yarn as the demand has reduced over the years. But, they might face action for not meeting the hank yarn obligation as hank yarn is covered under Essential Commodities Act. The Ministry should hence reduce the hank yarn obligation to 10 % from the current 40 %, the association said.
Source: The Hindu
Defunct textile mills of 'Manchester of the East' to be revived. Kanpur, the erstwhile ‗Manchester of the East‘, the nickname it had earned during the British Raj owing to flourishing textile mills in the city, is today a pale shadow of its glorious past. The closure of textile mills over the past decades coupled with the utter failure of the city to keep pace with haphazard and explosive urbanisation is the stark reality staring in its face even as other towns in Uttar Pradesh emerged on the landscape and developed as the most preferred industrial and economic zones. However, the Yogi Adityanath government is now looking at reviving the old glory of Kanpur, which was once UP‘s premier industrial town and held place of pride in the entire North India. The state government is taking steps to revive the defunct and sick textile mills in Kanpur, especially Lal Imli unit, which is owned by central government utility British India Corporation (BIC). Lal Imli once produced the finest range of woolen textiles and garments, reckoned not only in India but abroad as well, before it fell out of grace. UP industry minister Satish Mahana, who himself hails from Kanpur, has said the state government was committed to reviving the glorious industrial past of the town. Yesterday, he held a meeting to discuss the proposal to revive BIC and National Textiles Corporation (NTC) mills. He said UP was proactively taking up the matter of Lal Imli unit with the Centre even as he directed state officials to personally confabulate with their central government counterparts to expedite the matter. Mahana underlined while the government was promoting new investment and new units in UP, the sick entities were also being revived. He said a definite roadmap for restarting the NTC and BIC textile mills would be prepared by the central and state officials, which was expected to send out a positive signal to the investor community and further spur industrialisation. About a dozen textile mills of NTC and BIC had ceased their operations in Kanpur around two decades back. Successive attempts to revive them with central package of almost Rs 5 billion have so far come a cropper. These defunct mills are located in the most prime locations of Kanpur viz. Civil Lines, Kidwai Nagar, Fazalganj etc. The machinery of some of the defunct units have been scrapped and they merely stand as barren stretch of land. Owing to unbridled horizontal growth, these mills over time got surrounded with haphazard human settlements around it. As Kanpur failed to keep pace with peers in civic infrastructure, the sustainability of mills also suffered irreparably. The local hosiery industry has been demanding that the government utilised the vast land infrastructure of NTC to resettle the ancillary units, especially small stitching factories, which are scattered throughout the main city pockets.
Source: Virendra Singh Rawat
Arunachal Pradesh Textiles Minister Tamiyo Taga urged the Centre to make efforts to encourage textile industries in Arunachal. During a textile ministers‘ meeting here on Thursday to boost the handloom-handicrafts sector, Taga requested Union Textiles Minister Smriti Irani to set up hosiery and apparel manufacturing units in every district of Arunachal. She also sought establishment of power looms, yarn dyeing processing units, raw material banks, silk spinning mills, and crafts villages with modern wayside amenities in each district, besides a one-time grant of infrastructure development fund and a one-time fund for installment of improved technology inputs. Taga apprised Irani of the pending schemes in the textile ministry which are assured but not yet approved. The union minister informed that some schemes are drafted slowly ―due to new guidelines and rules‖ but assured that all the schemes would be sanctioned soon. Commissioner Tahang Taggu and ST Morcha president Hinium Tachu accompanied Taga at the meeting. Rafting expedition flagged off (Gandhi darang)-8 GEKU, Apr 26: Tourism Secretary Dr Joram Beda on Wednesday flagged off a rafting expedition down the Siang river here in Upper Siang district. Themed ‗Siang Rush 2018‘, the three-day expedition is being organized by Abor Country Travel & Expedition on behalf of the tourism department. The participants include a travel writer, a filmmaker, government officials, adventure tour operators, and others – collectively dubbed ‗Friends of Siang‘ – besides three kayak experts and a river guide. Extolling the state‘s potential in white water rafting, as also the suitability of the Siang river for such activities, Dr Beda said his department ―is ready to make this event a national championship event from next year onwards,‖ and to develop various parts of the state as tourist destinations. Event organizer Oken Tayeng said the idea behind organizing the event ―is just to make the river system of the Siang a rafting spot,‖ adding that, if properly tapped, such events would boost the local economy. The expedition team will touch land at Pasighat on 27 April.
Source: Arunachal Times
Export from Special Economic Zones (SEZs) rose 18 per cent in 2017-18, due to progress in terms of clearances and facilities. Data compiled by the Export Promotion Council of India for Export Oriented Units and SEZs (EPCES) under the ministry of commerce reported total merchandise and software export of Rs 5,513 billion in FY18, from Rs 4,686 bn the previous year. The jump was despite levy of Minimum Alternate Tax (MAT), imposition of Dividend Distribution Tax (DDT) and the impending sword of a sunset clause from 2020, when tax benefits are to end. EPCES has urged the government to continue with the exemptions granted to SEZs and EOUs, and to remove MAT and DDT from these zones. There are 204 of these in the country. "SEZs are the only location where production and services continue without obstruction or hindrance of uninvited, unwanted visitors, a norm in the Domestic Tariff Area (DTA). A safe, secure and peaceful environment, flush with abundant green belts and conducive ambience, definitely helps increase productivity and defect-free products," said Vinay Sharma, officiating chairman of EPCES. While merchandise export was Rs 2,735 bn in FY18, software export rose 17 per cent to Rs 2,779 bn. In the SEZs, single-window clearance, approachable development commissioners and approval for new units or changes in the Letter of Permission at monthly meetings of unit approval committees are given as reasons for the higher 'Ease of Doing Business'. As against business in the DTA, where one has to deal with multiple authorities and departments. "For any foreign investor looking for 500 acres or even more to set up a plant, only an SEZ can allot the land quickly -- land without any encumbrance, litigation or disruption. A single-window clearance can even help the investor start construction in four to six weeks, only possible in SEZs. Investors from other countries may choose to locate their production facilities for export to other countries or to sell in domestic markets, based upon their (regional) choice. It is a boon for anyone to get into production mode very quickly. The ease of doing business, coupled with availability of clean and dependable power, water and other resources, along with educated and trained personnel, is available across SEZs in India," said Sharma. The top country for export in value remains the United Arab Emirates (Rs 496.9 bn), followed by America (Rs 477 bn). The year gone by also saw an 80 per cent jump in export to Saudi Arabia, along with a surge to Britain, Australia and Singapore. There also saw an 84 per cent rise in export to China. Also, of 23 per cent to Mozambique, 25 per cent to Italy and 20 per cent to Korea. "We invite investors to the India SEZs and assure full support of the council to help them set up their business in any of the SEZs," said Sharma.
Source: Business Standard
New Delhi: The government on Thursday held a meeting with industry to explore the possibility of the country becoming an air cargo hub and how aircraft manufacturing could be developed here. Briefing newspersons after the meeting, Minister for Civil Aviation, Suresh Prabhu, said the government is also serious about ensuring that passenger rights are protected as air travellers. The government will soon come out with a citizen charter for air travellers, he said. The proposed charter will lay down, among other things, how much financial compensation a passenger is entitled to if his flight is delayed. Later speaking to newspersons, RN Choubey, Secretary, Civil Aviation, said the government had received several queries on the proposed divestment of government’s stake in Air India. “We will reply to these queries,” he said. He, however, declined to get into specifics on what issues the queries related to. The government released the Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EOI) for strategic divestment of Air India and its shareholding in Air India Express and Air India SATS Airport Services on March 28. It set April 16 as the last date for those interested in bidding for a stake to raise queries. The government is to divest 76 per cent stake in Air India, and its shareholding in Air India Express and Air India SATS Airport Services Ltd. The government’s decision to retain a 24 per cent stake has not gone down well with the industry. The Centre for Asia Pacific Aviation (CAPA) and consultancy KPMG have asked the government to revise the Expression of Interest (EoI) with more liberal terms to align it with investor interests.
Liberal terms
“As it happens in such complex transactions, being flexible and having an open mind on major issues is necessary. Revising EoI with more liberal terms will be required to further align it to investor interest,” CAPA said in a statement issued earlier adding that the EoI released was well structured and largely aligned to generating an interest from investors.“Simplifying the deal structure to attract at least 3-4 serious bidders is in the government’s own interest and that of the silent Indian taxpayer, the real owner of Air India,” Amber Dubey, partner and India head, aerospace and defence, KPMG, had added.
Source : Business Line
From taxing products sold at duty-free shops to taxing of canteen services, Authorities of Advance Ruling (AARs) set up under the goods and services tax (GST) regime have given many important judgments. The problem is that businesses are unable to appeal against those verdicts if they wish to. For, the appellate bodies for this purpose are yet to be set up. As a result, some are contemplating an appeal to the high courts. An AAR is a mechanism under law to provide certainty and transparency to a taxpayer with respect to an issue which might cause a dispute with the tax administration. An AAR is a legally constituted body, mandated to issue a ruling to a person or entity who or which is registered for the tax or is liable to be registered. The ruling binds the government as well. GST law says such rulings can be appealed to at the appellate level but, as noted, these have not been brought into existence. “A number of AAR judgments have come but the appeal mechanism is yet to be set up. The industry has started complaining about it,” conceded a government official. “States have been asked to fast-track setting up the appellate bodies.” The GST law says an appeal needs to be filed with the appellate authority (AA) within 30 days of the AAR judgment and the order needs to come within 90 days. Most AAR rulings - there have been around 20 so far - have gone against businesses. “Since there is no appeal mechanism, we have run out of the 30 days window to appeal. We are in the process of filing a writ petition in the high court,” said an industry player who did not wish to be identified. A number of companies have also written to states and central authorities on this and demanded their applications be accepted as and when the appellate body is set up. In a few states, the jurisdictional tax commissioners are accepting appeal applications for the time being, noting there is no official mechanism in place. “It is a very unfortunate situation. The AAR ruling is against my company regarding imports. I need to appeal to at least get a stay, but the entire process is resulting in a delay in justice. Imports are happening on a recurring basis,” said another industry player, whose case relates to classification for imports of home appliance items. “The entire objective of AAR is to provide certainty, which is not the case at the moment. The AA should have been formed on Day 1. The delay is causing extreme hardship,” says Abhishek Rastogi, partner at legal consultants, Khaitan & Co. Bipin Sapra, partner at consultancy EY, said: “There is an urgent need to set up the AA in various states, given that a large number of the rulings have gone against the applicants. The issues will only attain a reasonable level of finality after a decision from the AA.” A recent AAR judgment ruled that outlets at the Delhi International Airport are not ‘free from duties’ under the new indirect tax regime, suggesting GST will be charged for purchases made from duty-free shops there. In the earlier indirect tax regime prior to the July 1 GST roll-out, purchases at duty-free shops were exempt from central sales tax and value-added tax, as sale from such shops were considered export and supplies were taking place beyond Customs frontiers. Similarly, the AAR in Kerala has ruled that GST will be levied on recovery of food expenses from employees for canteen services provided by an employer, increasing the compliance burden of taxpayers.
Source: Business Standard
New Delhi : The GST Council will meet on May 4 to discuss, among other things, simplifying GST returns. The meeting, to be chaired by Finance Minister Arun Jaitley, is also expected to discuss “other anti-evasion measures”, informed sources said. The meeting will be conducted through video conference mode. For GST return simplification, there are three models before the GST Council. Stakeholders and trade bodies were asked to directly write to the GST Council expressing their views on the most appropriate model. It may be recalled that e-way bills — another anti-evasion measure — introduced from April 1 has seen good response with more than 2 crore e-way bills generated since the first day of this month. April 24 accounted for the highest single day figure so far, exceeding 13 lakh bills. E-way bill on inter-State trade is mandatory from April 1. For intra-State trade, e-way bill has been mandated in respect of 16 States and one Union Territory. With businesses gradually warming up to the new system that came into effect this month, both the number of e-way bills generated every day as wells the number of taxpayers and transporters registering with the system has been increasing at a steady pace. The number of taxpayers registered with e-way bill portal has crossed 16 lakh. It was 11 lakh on April 1.
Experts’ take
MS Mani, Partner, Deloitte India, said the next meeting is expected to focus on finalising the single return form and processes by selecting the most appropriate option, amongst the ones suggested. It could also focus on additional anti-evasion measures such as reverse charge since the e-way bill system is now getting stabilised. R Muralidharan, Senior Director, Deloitte India, said that trade and industry is looking forward to the much awaited simplification of GST returns. “While, in-principle, the need for matching at invoice level is appreciated, the Government can look at continuing with provisional credits without matching during the initial year. Further it is hoped that the Government would issue clarifications on matters represented before the GST Council to help businesses have certainty on tax positions,” he said.
Source: Business Line
New Delhi : With private investments expected to return in the second half of the current fiscal, time is ripe for policymakers to bring down interest rates in the system, the new CII President, Rakesh Bharti Mittal, said. “I believe time has come when consumer demand is moving up and Indian industry is ready to make investments, interest rate should be brought down so that industry invests more,” Mittal said in an interview with BusinessLine. Asked if the banking system, which already faces huge NPAs, can deliver further reduction in lending rates, Mittal said NPA issues will get largely addressed this fiscal with several insolvency resolutions under the newly enacted IBC round the corner. “The cost of doing business is high in India on account of high interest rates, on account of significant processes and systems, etc. These costs have come down in recent times due to reforms. However, interest rates have not come down inspite of industry’s demand for lower rates,” Mittal said. He said interest rate reductions have come in bits and pieces in the past and have been “stagnant for a long time”. The CII President sees strong growth prospects for the economy in the current fiscal with GDP growth likely to be between 7.3 per cent and 7.7 per cent. This will be a substantial jump over 6.6 per cent GDP growth in 2017-18. “Given the expectations of a normal monsoon and the fact that rural spending and rural economy is moving up, things are only moving in the positive direction for the economy. Auto sector is doing extremely well. Tractor sales are up, agri equipments are selling. FMCG is doing well. Clearly demand is moving up,” he said. Stating that effects of “both demonetisation and GST are behind us”, Mittal said the main headwind to the growth forecast for 2018-19 is the surge in global oil prices. But this potential risk of high global oil prices can be mitigated by the Government through increased shale supplies, he said.
Land acquisition
Acquiring land for industrial use is still a problem and more reforms are needed in this space, especially from the States, according to Mittal. “Land is one area where there is still problem. This is where the Government should ensure that if private sector is able to get hold of land, don't charge astronomical rates for change of land title deeds. First the Government is not able to provide land. They should at least facilitate it,” he said. He, however, pointed out that some States have started using best practices on the land front.
Source: Business Line
To boost sub-regional economic cooperation, Bimstec Secretary-General Shahidul Islam on Thursday called for faster negotiations for the conclusion of a free trade agreement (FTA) within this grouping of South Asian and Southeast Asian nations. Speaking at the launch of report by industry body Ficci titled "Reinvigorating Bimstec: An Industry Vision for the Next Decade" here, Islam said that though a framework agreement was signed for a Bimstec FTA in 2004, negotiations have remained stalled for the last-two-and-a-half years. He called for specific steps to rejuvenate the regional grouping through greater political commitment, expeditious negotiations on Bimstec FTA, adequate funding, Bimstec special visas and closer people-to-people contacts. "The time now is to consolidate on the progress made in the last 20 years and take immediate steps to give Bimstec a distinct regional flavour," the Bangladeshi diplomat, who was appointed Bimstec Secretary-General last year, said. The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) came into existence in June 1997 through the Bangkok Declaration. It comprises seven countries lying in the littoral and adjacent areas of the Bay of Bengal - Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. The main objective of Bimstec is technical and economic cooperation among South Asian and Southeast Asian countries along the rim of the Bay of Bengal. With the South Asian Association for Regional Cooperation (Saarc) virtually rendered ineffective as a bloc, largely due to non-cooperation on the part of Pakistan in a number of areas, India has been giving more importance to Bimstec in recent times. The bloc brings together 1.5 billion people or 21 per cent of the world's population and has a combined GDP of $2.5 trillion. India is the lead country for cooperation in four priority areas: counter-terrorism and transnational crime, transport and communication, tourism and environment, and disaster management. In his speech, Islam said that at a Bimstec ministerial meeting held in Bangkok last year, four major pillars were identified on which economic cooperation between the member states rests. "First, closer public-private partnership to promote economic cooperation and to this end, creation of Bimstec Economic Forum to facilitate high-level exchange of views between policy makers and business community," he said. "Second, identification of sectors, sub-sectors and projects for economic cooperation. Initially five key sectors were identified, namely, textile and clothing, drugs and pharmaceuticals, gems and jewellery, horticulture and floriculture products, information technology products and services." Thirdly, he said, there should holding of senior economic officials' meeting to promote intra-regional cooperation on elimination of non-tariff barriers, market access issues and services. Fourthly, he mentioned infrastructure building with assistance of multilateral institutions, UN agencies, World Bank and ADB. Islam said that FTAs were no panacea for development, but they represented a crucial first step towards spurring growth and development in the region. Bangladesh, he said, had agreed to hold the next round of trade negotiations for concluding the Bimstec FTA which should be started without delay. The Bimstec Secretariat in Dhaka, he said, needed to be adequately financed as its present budget is a mere $1 million. The Ficci Knowledge report on reinvigorating Bimstec, prepared by a core group with former Indian diplomat Rajiv Bhatia as the Chair and Vikramjit Singh Sahney of Sun Group as Co-chair, suggests funding of $2 billion from India and $1 billion from other member states. "This is the kind of commitment required to give a fillip to generating meaningful activities in the region," Islam said. Ficci President Rashesh Shah said the Bimstec member nations together have untapped economic potential to catapult regional trade and investment to the next level and provide a framework to achieve sustainable development. "The Ficci core group report strives to understand the key drivers of the development paradigm for the region and identify the contours of an economically feasible and result driven approach for BIMSTEC to achieve sustained progress," Shah said. "To fulfill this vision, all stakeholders concerned have to work together for a stable, prosperous and integrated neighbourhood." Bhatia, who also served as India's Ambassador to Myanmar, said that with Saarc regional grouping facing difficulties, "we can work on revitalising Bimstec"."We should bring Laos, Cambodia and Vietnam into Bimstec and reconfigure it," he said. He also called for the holding of a Bimstec summit meeting at the earliest.
Source: Business Line
New Delhi : The government is considering a national policy on retail trade with a view to ensuring orderly growth of the fast growing sector. The Commerce and Industry Ministry, a government official said, has written to the department of consumer affairs to set up a task force for framing the policy. In a letter to Consumer Affairs, Food and Public Distribution Minister Ram Vilas Paswan, Commerce and Industry Minister Suresh Prabhu said the task force should have representations from different stakeholders. Retail trade is crucial for growth of Indian economy and the policy should be formulated to promote trade without sacrificing the interest of consumers. The Consumer Affairs Ministry is the nodal agency for regulating internal trade. The ministry is already in the process of formulating guidelines on e-commerce and hence it would be appropriate for the ministry to come out with a norms for retail trade, the official said. The commerce ministry should also take on board state governments while framing the policy norms as retail trade is also governed by the Shops and Establishment Act. The matter assumes significance as Confederation of All India Traders (CAIT) have requested the government for the policy and formation of a separate ministry of internal trade. It has said that these steps will not only strengthen the domestic trade but also improve export performance of the country. According to them, over 6.5 crore small businesses are engaged in the sector across the country.
Source: Business Line
After reviewing the crop situation for the 2017-18 cotton year, the Indian Cotton Federation (ICF) believes that the situation is ―more stable than expected. Cotton farmers were expecting better prices earlier. The arrivals were late, so we thought that the crop was less. But with arrivals at 90,000 bales a day at market yards, we expect the market to be stable,‖ said J Thulasidharan, President, ICF. Prices did shoot up by ₹1,000, reacting to the New York market moves, but it has now started to show a downward trend. ―Those that had invested in cotton are expecting ₹45,000 per bale (of 170 kg each). When it rains, the market tends to move up, as there is a weight gain of 3-4 per cent. But during the month of May, sellers are generally reluctant to sell. Incidentally, after many years, the stock with the trade has peaked,‖ he told BusinessLine.
Price outlook
Is it a good sign? ―Of course, for it is with the trade. Further, as compared to international prices, the Indian cotton price is low and reasonable. When asked if the present situation would augur well with the cotton farmer as his realisation is not on expected lines, the ICF President said, ―there is a global surplus. There are no takers for Indian cotton as the fibre from India is not standardised Due to tight financial situation prevailing in the spinning sector and comfortable availability of quality cotton, the prices are expected to remain steady. ―The monsoon would be a major deciding factor for cotton prices for the period between June and October 2018.‖
Yarn situation
While the industry is expecting a steady cotton market, the yarn market, though steady, is learnt to be slow. ―Mills are not carrying huge stock of yarn as the payments are delayed in the aftermath of GST. Textile scenario till the yarn sector looks steady,‖ Thulasidharan said, adding ―but there is threat of imports from Bangladesh and Pakistan. This could play spoilsport if the government does not intervene and insist on the ―Certificate of Origin‖ in the interest of the domestic sector.
Source: The Hindu Business Line
EPF base has expanded at faster clip in recent years, aided by an amnesty scheme and other policy support, but this hardly reflects job growth. The average subscriber base has seen accelerating growth over the last four to five years, from 6% in in FY15, the first year of this government, to over 15% in FY18. The country‘s pioneering payroll count — based on the Employees‘ Provident Fund Organisation‘s (EPFO) subscription database — released on Wednesday gave government managers and some data analysts their ―I told you so‖ moment. As the EPFO said 3.1 million contributors were added on a net basis during the half year between September 2017 and February 2018, they claimed that it meant a whopping 6 million new formal jobs — roughly equivalent to the skilled workforce entering the job market annually or 10% of the retirement fund body‘s active subscriber base — were created in the whole of 2018-19. If true, that would have dismantled all criticism of jobless growth that the Narendra Modi government has had to face. But just a bit of analysis would reveal how facile these optimistic assumptions are. Even though the EPFO wasn‘t putting out month-wise payroll data earlier, it used to publish the average number of subscribers (who contributed) annually. And the average subscriber base has seen accelerating growth over the last four to five years, from 6% in in FY15, the first year of this government, to over 15% in FY18. So was that not a sign of a boost to job creation? Hardly. Job growth has little to do with the recent jump in the EPFO subscriber base. An amnesty scheme for EPF defaulter firms that ran between January and July 2018 saw these firms enrolling some 4.9 million people in FY17and the bulk of these were obviously old workers rather than new recruits. Including the amnesty additions, the EPFO contributor base rose 9.5% to 41.2 million in FY17, but the base would have shrunk to 36.2 million in the year — even lower than previous year‘s base of 37.6 million — had the amnesty not been implemented. Since the amnesty extended to four months in FY18 (in April-May, 1.2 million got enrolled, as per available data) too, the reported active subscriber base in the year of 47.5 million could be deflated by 2.4 million or thereabouts to get the growth in the base attributable in at least in some measure to new jobs. Pronab Sen, former chairman of the National Statistical Commission, said: ―It (3.11 million) reflects the number of registration under the EPFO but there is nothing that suggests that these many people were unemployed earlier. Since the addition to the job sector annually is roughly 6-7 million, the claim that 3.11 million new jobs were created between September 2017 and February 2018 will mean every new entrant got a formal sector job, which is not possible Apart from the amnesty scheme, the scheme for textiles and garment sectors launched in October 2016 under which the government bears the bulk (8.33%) of the employer’s contribution towards the EPF’s pension scheme also boosted the EPF contributor base. The implementation of the goods and services tax, whose continuous tax chain has brought a wide segment of the small-scale industries into the formal economy. might also have had a salutary impact of the EPF base. NITI Aayog vice-chairman Rajiv Kumar said: ―One has to be careful in estimating addition to jobs. What happens is that companies start to contribute to the EPFO when their head count increases from 19 to 20. So, all 20 workers come into (EPF) picture in one go, while it is not that all 20 were not there (with jobs) earlier. At last count, the beneficiaries under the textile scheme were 250,000, but even all of them cannot be called new jobs as practically, the scheme prompted the firms to bring their existing workers under EPF cover rather than recruiting new ones. The EPF contributor base could see rapid growth in the current financial year as well, as the government has recently rolled out an amplified Pradhan Mantri Rozgar Protsahan Yojana, under which employers in all sectors will be encouraged to provide EPF cover to ―new employees‖ (again, those who haven‘t been issued UANs rather than strictly first-time jobs) with the government contributing the employers‘ entire 12% (of basic pay) contribution to EPF for the first three years. Government policies have clearly given a fillip to the EPF contributor base, but it is simplistic to ascribe the expansion to faster job creation the economy. While the EPF‘s current ―active subscriber base‖ is 61.5 million (those who have contributed at least once in a year), it includes quite a number of people with multiple EPF accounts. Of course, Aadhaar-seeding was made mandatory by EPFO for new subscribers from July 2017 — a move that would prevent anyone from opening multiple accounts in future — but the total number of Aadhaar-linked accounts is still 33 million only.
Source: Surya Sarathi Ray
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1415.98 |
USD/Ton |
-0.56% |
4/26/2018 |
|
VSF |
2183.30 |
USD/Ton |
-2.13% |
4/26/2018 |
|
ASF |
2847.78 |
USD/Ton |
0% |
4/26/2018 |
|
Polyester POY |
1462.65 |
USD/Ton |
0% |
4/26/2018 |
|
Nylon FDY |
3496.44 |
USD/Ton |
-0.45% |
4/26/2018 |
|
40D Spandex |
5695.56 |
USD/Ton |
0% |
4/26/2018 |
|
Nylon POY |
2974.35 |
USD/Ton |
0% |
4/26/2018 |
|
Acrylic Top 3D |
1740.31 |
USD/Ton |
0% |
4/26/2018 |
|
Polyester FDY |
3702.11 |
USD/Ton |
0% |
4/26/2018 |
|
Nylon DTY |
5980.34 |
USD/Ton |
0% |
4/26/2018 |
|
Viscose Long Filament |
1716.58 |
USD/Ton |
0% |
4/26/2018 |
|
Polyester DTY |
3259.13 |
USD/Ton |
0% |
4/26/2018 |
|
30S Spun Rayon Yarn |
3005.99 |
USD/Ton |
0% |
4/26/2018 |
|
32S Polyester Yarn |
2199.12 |
USD/Ton |
0% |
4/26/2018 |
|
45S T/C Yarn |
3021.81 |
USD/Ton |
0% |
4/26/2018 |
|
40S Rayon Yarn |
2341.51 |
USD/Ton |
0% |
4/26/2018 |
|
T/R Yarn 65/35 32S |
2563.00 |
USD/Ton |
0% |
4/26/2018 |
|
45S Polyester Yarn |
3164.20 |
USD/Ton |
0% |
4/26/2018 |
|
T/C Yarn 65/35 32S |
2705.39 |
USD/Ton |
0% |
4/26/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
4/26/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
4/26/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
4/26/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
-0.22% |
4/26/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
4/26/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15821USD dtd. 26/4/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
After hitting historic high of $84.44 billion last year, China's trade with India saw a robust growth in the first quarter this year, with bilateral trade netting $22.1 billion, up 15.4 per cent year-on-year, a top Chinese official said on Thursday. The growth continued from the upward momentum seen last year, when bilateral trade reached a record high of $84.4 billion, up 20.3 per cent from the previous year, spokesperson for the Ministry of Commerce Gao Feng said. "As two large developing countries and major emerging market economies, China and India both have a huge domestic market," Gao said, adding the economies of both countries are highly complementary to each other, creating enormous potential for cooperation. "By the end of 2017, Chinese investments into India added up to more than $8 billion, as India has become an important market for infrastructure cooperation among Chinese companies and a major investment destination," Gao was quoted as saying by the state-run Xinhua news agency. His comments came ahead of the two-day informal summit between Prime Minister Narendra Modi and President Xi Jinping in the central chinese city of Wuhan on Friday, during which a host of issues, including an over $50 billion trade deficit between the two countries is expected to figure. A rare novelty of the bilateral trade last year, otherwise dominated by the Chinese exports was the nearly 40 per cent increase of Indian exports to China, totalling $16.34 billion. The bilateral trade volume reaching $84.44 billion in 2017 is regarded as a landmark as for the first time it touched $80 billion mark, well above the $71.18 billion registered in 2016. The trade between the two countries touched the historic high despite bilateral tensions over a number of issues, including the China-Pakistan Economic Corridor (CPEC), China blocking New Delhi's move to designate Pakistan-based Jaish-e-Mohammed terror group chief Masood Azhar a global terrorist, Beijing blocking India's entry into the Nuclear Suppliers Group (NSG) and the Dokalam stand-off. The bilateral trade stagnated around $70 billion despite the leaders of both the countries setting $100 billion as the target for 2015. Though it is still about $20 billion short, officials on both sides expect trade and Chinese investments in India to pick up further this year as both the governments are trying to scale down tensions and step-up the normalization process.
Source: Business Standard
Thirty three substances affected; limits applicable two years after publication
EU member states have approved a European Commission proposal to restrict the use of carcinogenic, mutagenic and reprotoxic (CMR) substances in clothing, textiles and footwear. Voted through at the REACH Committee meeting today, the text brings new limits to 33 CMRs. The new law will apply 24 months after publication in the EU Official Journal but first will be scrutinised by the European Parliament and Council. In 2015, the Commission published a preliminary list of 286 CMRs it proposed to restrict. The draft annex to the Regulation includes exemptions. The restrictions, it says, will not apply to:
CMRs may be present in materials from the production process, the Commission says, or because they are added intentionally to give specific properties, such as to prevent shrinkage or make fabric crease-resistant. Consumers can be exposed to these chemicals through skin contact, inhalation or unintentional ingestion of dust released from textile fibres. Small children are also at risk due to a possible oral exposure, the EU executive adds. Last month, eight European trade associations said the draft proposal is "sensible" and "pragmatic", but they had concerns that it covered complex products, containing parts that are "effectively never in contact with the skin or cannot be considered as strictly textile materials".Ahead of the REACH Committee meeting, meanwhile, NGOs said the restriction should cover all CMRs that are category 1A and 1B substances with a harmonised classification; not just the "40 plus substances" for which the Commission "was able to find evidence of use in the textiles sector". And consumer organisations Beuc and Anec have said that the proposal should be amended to ensure better protection of small children; regular updates to the list of restricted substances and applicable concentration limits; and disposable textiles are within scope. Proposed substances and restricted concentration limit by weight
Cadmium and its compounds – 1 mg/kg
Chromium VI compounds – 1 mg/kg
Arsenic compounds – 1 mg/kg
Lead and its compounds – 1 mg/kg
Benzene – 5 mg/kg
Benz[a]anthracene – 1 mg/kg
Benz[e]acephenanthrylene – 1 mg/kg
Benzo[a]pyrene; benzo[def]chrysene – 1 mg/kg
Benzo[e]pyrene – 1 mg/kg
Benzo[j]fluoranthene – 1 mg/kg
Benzo[k]fluoranthene – 1 mg/kg
Chrysene – 1 mg/kg
Dibenz[a,h]anthracene – 1 mg/kg
α, α,α,4-tetrachlorotoluene; pchlorobenzotrichloride – 1 mg/kg
α, α,α-trichlorotoluene; benzotrichloride – 1 mg/kg
α-chlorotoluene; benzyl chloride – 1 mg/kg
Formaldehyde – 75 mg/kg
1,2-benzenedicarboxylic acid; di-C 6-8-branched alkylesters, C 7-rich – 1000 mg/kg
Bis(2-methoxyethyl) phthalate – 1000 mg/kg
Diisopentylphthalate – 1000 mg/kg
Di-n-pentyl phthalate (DPP) – 1000 mg/kg
Di-n-hexyl phthalate (DnHP) – 1000 mg/kg
N-methyl-2-pyrrolidone; 1- methyl-2-pyrrolidone (NMP) – 3000 mg/kg
N,N-dimethylacetamide (DMAC) – 3000 mg/kg
N,N-dimethylformamide; dimethyl formamide (DMF) – 3000 mg/kg
1,4,5,8- tetraaminoanthraquinone; C.I. Disperse Blue 1 – 50 mg/kg
Benzenamine, 4,4'-(4-iminocyclohexa-2,5-dienylidenemethylene)dianiline hydrochloride; C.I. Basic Red 9 – 50 mg/kg
[4-[4,4'-bis(dimethylamino)benzhydrylidene]cyclohexa-2,5-dien-1-ylidene]dimethylammonium chloride; C.I. Basic Violet 3 with ≥ 0,1 % of Michler's ketone (EC no. 202-027-5) – 50 mg/kg
4-chloro-o-toluidinium chloride – 30 mg/kg
2-Naphthylammoniumacetate – 30 mg/kg
4-methoxy-m-phenylene diammonium sulphate; 2,4-diaminoanisole sulphate – 30 mg/kg
2,4,5-trimethylaniline hydrochloride – 30 mg/kg
Quinoline – 50 mg/kg
Source: Chemical Watch
Heaps of clothes, scorching heat and choking dust, hawkers chanting prices, competing for the attention of shoppers, who haggle to get as many clothes at the lowest cost possible. In crowded markets and on sidewalks of African towns and cities, shoppers can turn up Tommy Hilfiger jeans or a Burberry jacket for a fraction of the price in London‘s Regent Street or New York‘s Fifth Avenue. It is a common scene across Africa, with Ghana, Nigeria, Ivory Coast, Tanzania, Benin, Uganda and Kenya among the biggest markets for second hand clothes. These secondhand clothes, discarded as worthless at charity shops or thrift stores in Europe or the United States and then shipped thousands of miles to another continent, provide clothing to many on a continent of 1 billion where economies may be growing but many Africans struggle to get by. Kenya alone imports about 100,000 tonnes of secondhand clothes a year, providing the government revenues from customs duties and creating tens of thousands of jobs. It also offers quality clothes to Kenyans, many of whom earn less in a month what a pair of new Ralph Lauren khakis costs in the West.
What fuels it?
While the market is fuelled by the affordability of its products, it only really took off when liberalisation policies introduced in the late 80s and early 90s ushered in a new age of competition in local garments industries. Until the 1980s, high tariffs protected home grown garment and other businesses. Then economic liberalization programmes, backed by the World Bank and International Monetary Fund, started taking hold in Kenya and elsewhere. Tariffs were lowered and local factories had to contend with new competition. Many failed and shut. Second hand clothes filled the gap, and while alternatives were introduced in the form of new clothes from China, complaints of poor quality played in favor of the used clothes.
How does it work?
The route from donor to new owner, described by officials, exporters, wholesalers, traders and academics, takes the used clothes halfway around the world with the money made at each point racking up to a multi-million dollar global business. Charity or thrift shops in the West sift donated items, often keeping just a quarter of the items. The rest are sold to exporters for up to 90 U.S. cents a kg, then wrapped in 45-kg bales and packed in containers – a standard 40-foot container holds about 550 bales, equivalent to about 25 tonnes of clothes. Customs agents collect duties at different African ports, charging each container, while city revenue officials also charge informal hawkers and shops selling secondhand clothes.
Critics
Critics of the industry argue that Africa cannot hope to build its own industry when it is flooded with cheap imports. Indeed, Rwanda is currently involved in a diplomatic tussle with the United States, after it banned the importation of second hand clothes into the country. The United States responded by suspending Rwanda from enjoying benefits of the AGOA trade program which gives eligible sub-Saharan countries duty-free access to the United States in exchange for eliminating barriers to U.S. trade and investment, among others. The ban was agreed by leaders of the East African Community, but Rwanda implemnted the ban alone, after Uganda, Kenya and Tanzania succumbed to pressure and chose the economic benefits that accrue under AGOA. Rajeev Arora, executive director of the African Cotton & Textile Industries Federation says up to 85 percent of Kenya‘s textile plants had closed since the early 1990s, while cotton output was a tenth of 1990s levels. And thus, Africa which has countries like Mali, Burkina Faso, Chad, Togo and Uganda as producers of cotton, the raw material from which clothes are made, remains one of the places where the sale of second hand clothing is thriving! Other experts however say it was not the used clothing imports that drove factories out of business, but inefficient production. The informal nature of much of the trade makes it difficult to estimate precise numbers, though researchers and officials suggest it may employ hundreds of thousands. Many banks have however recognised the opportunity that this business presents, with many setting up branches in the vicinity of such markets to serve the traders.
Source: Africa news
LIMA – Exports of Peruvian textiles and apparel could grow between 6 percent and 8 percent in 2018, a year after sales totaled $1.3 billion, the exports director at PromPeru, the Andean nation’s tourism and export-promotion agency, told EFE. That expected rise is part of a trend stemming from promotional efforts launched four years ago, Luis Torres said. Heirs of an ancient textile tradition, Peruvian apparel makers have seen their industry make a recovery in recent years, including export growth of 6.1 percent in 2017, according to the official. “We’re starting to see the results of work carried out over four years in markets such as the United States with new approaches, Brazil, Mexico, Europe and Asia,” Torres said. “We hope to grow between 6 and 8 percent this year, but the challenge is to get back to $2 billion in exports,” the level that existed a decade ago, he added. On Wednesday, PromPeru inaugurated the 21st edition of the Peru Moda and Peru Moda Deco 2018 fair, an event in which some 1,000 foreign buyers have the chance to familiarize themselves and do business with more than 250 Peruvian exhibitors. “The idea this year is to surpass (last year’s) figure of $108 million” in contracts, Torres said. To that end, some 7,000 industry professionals have been invited this year to the Lima Convention Center, the venue for the 2018 edition of this annual event. This year’s fair is giving small firms from Arequipa, Cusco, Ayacucho, Junin, Puno, Piura, La Libertad, Huancavelica and Lima the chance to pitch their products to major retailers such as Mexico’s Liverpool, La Martina of Argentina and Frame LA Brands. There are “very strong expectations that these buyers, around 50 percent of whom are new, will be able to find an exportable supply consistent with the market niches in their respective countries,” Torres said. These specialized buyers are looking for both novel offerings and Peru’s flagship cotton and alpaca fibers, but they also are seeking suppliers with a view to developing their own brands, Torres said. A group of buyers at the event also has come with an interest in acquiring Peruvian brands, the official said. The Peruvian exporters include some 30 firms that have been registered as eco-friendly apparel makers and which have received buyers interested in their wares, as well as some 40 firms that specialize in crafts, decorative items and jewelry. Peru Moda also includes the traditional runway shows and – this year – forums focused on sustainable fashion, innovation and trends in the international market. The US and Brazil are among the main destinations for Peruvian apparel exports, while alpaca garments have a strong presence in Europe and Asia, Torres said. In keeping with Prom Peru’s strategy for the continued global expansion of Peruvian brands, the first alpaca store in China will mark its first full year in 2018 and the first Peru Textiles store will open in Brazil in the year’s second half.
Source: Latin America Herald Tribune
Washington – The National Retail Federation welcomed a U.S. Supreme Court ruling issued yesterday that upholds the constitutionality of a process that allows bad patents to be reexamined administratively at the U.S. Patent and Trademark Office.
NRF said the action should eliminate many lawsuits by ―patent trolls.
―This ruling is a major step toward stopping patent trolls and their attempts to commit extortion against retailers and other businesses that have done nothing wrong,‖ NRF senior vice president and general counsel Stephanie Martz said.
―The threat of bankrupting a small business with legal fees has been one of trolls‘ most powerful weapons,‖ she added. ―Making it clear that many cases can and should be resolved by fixing patents at the patent office rather than rushing to court to sue for infringement makes it much easier for our members to fight patent trolls. The justices have removed any doubt that the administrative review of questionable patents is within the authority of the patent office.‖
The ruling came in Oil States v. Greene‘s Energy Group, a case that examines the constitutionality of the ―inter partes review‖ process. Under IPR, disputes can be heard by the agency‘s Patent Trial and Appeal Board, an option that can resolve allegations more quickly and with less expense than full-blown patent litigation.
NRF said retailers have been heavily targeted by patent trolls in recent years.
―The trolls are companies that purchase often-obscure and weak patents for technology that they did not invent, then demand licensing fees from retailers and other businesses that often do not realize the technology is even patented. Trolls usually lose in court, but court costs are so high retailers are often coerced into a settlement,‖ the association said.
Source: Home Textiles
Mayer & Cie. China (MCN), a subsidiary of leading international circular knitting machine manufacturer, Mayer & Cie. (MCT), headquartered in Albstadt, Germany, has announced that the company has recently assembled its 1,000th circular knitting machine. The 1,000th machine is a MSC 3.2 II, the best-selling model in the Chinese product line-up. Since autumn 2012, the Mayer & Cie. works in Shanghai have handled the final assembly of selected machines and machines specially developed for the Chinese market. Along with MSC 3.2 II single jersey machine, two other models are currently assembled in China. An electronic model is due to join them in 2019 as part of Mayer & Cie.’s plan to further develop its position in the Chinese market. Benjamin Mayer, managing director of Mayer & Cie said, “The assembly of the 1,000th machine at our Chinese works is impressive testimony to the positive progress Mayer & Cie. China has made in recent years. Our Shanghai site and our business in China will continue to grow. Our Chinese subsidiary is an important building block for achieving our Group objectives in the years ahead.” The MSC 3.2 II is the most popular model in the Chinese portfolio. It is used especially to manufacture fabrics for leisure- and sportswear. From 2019, an electronic model will join the portfolio of machines assembled in Shanghai. As with the Relanit 3.2 SC, Mayer & Cie. hopes that it will increasingly attract the higher end market segment. In the future, the models assembled in Shanghai will also be available in neighbouring countries. The MSC 3.2 II has already been sold in Bangladesh for several years, and since the beginning of this year, it has also been possible to order Mayer & Cie. machines from India, Thailand, Taiwan, and Vietnam.
Source: Fibre2fashion
ROSEVILLE, Minn. — The second edition of Smart Fabrics Summit, co-hosted by the Industrial Fabrics Association International (IFAI) and the U.S. Department of Commerce, demonstrated the advancements happening in this fast-growing segment of the textile industry. A capacity crowd of public and private experts and innovators filled the Ronald Reagan Building and International Trade Center for the day-long event on April 24, 2018, which included talks and panel discussions on:
Speakers included the current U.S. Secretary of Commerce, Wilbur Ross, as well as CEO of the Advanced Functional Fabrics of America (AFFOA) Yoel Fink, and many academic researchers, industry experts and legal professionals. Amit Kapoor, president of First Line Technology and IFAI Advanced Textiles Products Division Chair joined Secretary Ross for a fireside chat to discuss the challenges, opportunities and top of mind issues surrounding the Smart Fabrics industry.
The following IFAI members were presenters at the Smart Fabrics Summit:
“The second Smart Fabrics Summit built upon the first one we co-sponsored with the Department of Commerce in 2016,” said IFAI President and CEO Mary Hennessy. “There have been many, many products introduced since then. The industry is exploring the myriad of ways we can use textiles with smart functions such as connectivity, phase changing, bio-microbial and self-cleaning to improve healthcare, public safety, building design, performance apparel — and more.” Consumer Technology Association served as the Gold Sponsor for this year’s Summit. Followed by Eeonyx, NAMICS Corporation, IQ Textile Ind. Inc. and Schoeller who all sponsored the Summit as well. If you’re looking for more Smart Fabrics events, IFAI Expo 2018 is October 15-18 at the Kay Bailey Hutchison Convention Center in Dallas. IFAI Expo will have numerous education sessions on E-Textiles along with a 3 day E-Textiles workshop on the exhibit show floor, a wealth of Advanced Textiles content spanning 4 days and many exhibitors within the Smart Fabrics arena.
Source: Textile World
