Surat: The contentious issue of re-leasing the SMC land at very frugal rate will come up for discussion in the standing committee on Thursday. On one hand, the textile traders are demanding 25,000 sq metre of Surat Textile Market (STM) land to be released at throwaway prices, on the other hand, SMC is thinking of charging according to the provisions of Land Disposal Act 2002, which will earn the civic body about Rs 35 crore as rent on yearly basis. In 1967, SMC leased 24,435 sq metre of land to the STM Housing Society for textile market. Then the rent of the space was decided as Rs 2.10 per sq metre. Now, as the 50-year lease period is over, the society has asked for the extension of lease for another 50 years and offered the rent as Rs 57.57 per year per sq metre. At present, the jantri rate for this place is Rs 52,250 per sq meter. Whereas the market rate of this land is at least 2.5 times that of jantri rate . Today the market rate in this textile market area of land in prime locality like the STM is Rs 1.25 to Rs 1.5 lakh per sq meter. “According to the old agreement, lease of 50 years got over on April 19, 2018. Now, we will be working on provisions of Land Disposal Act 2002. We will decide what needs to be charged as rent per year for this SMC land,” said standing committee chairman Rajesh Desai. “This is purely commercial activity that they have been doing there since past 50 years, and so we have given them a second option of buying the land at one go from SMC at decided price, which will be near to the actual market price. If they don’t go for that, they will be paying the rent as per the present day norms,” a senior SMC official said. Another standing committee member said, “We are looking at about 15% of the market value as the rent per year for SMC, with the first priority to existing tenants. So if the market value is decided at 15-20% less than the projected value of Rs 350 core and nearby, the market value can be around Rs 300 crore and 15% of that can work up to Rs 40-45 crore and nearby.” However, it remains to be seen if the rulers of BJP are able to take this critical decision at a time when SMC faces cash crunch on one hand and textile traders are fighting the Goods and Servie Tax battle with government on the other hand.
Source: Times of India
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for the Umbrella Scheme, "Green Revolution - Krishonnati Yojana" in agriculture sector beyond 12th Five Year Plan for the period from 2017-18 to 2019-20 with the Central Share of Rs. 33,269.976 crore. The Umbrella scheme comprises of 11 Schemes/Missions. These schemes look to develop the agriculture and allied sector in a holistic and scientific manner to increase the income of farmers by enhancing production, productivity andbetter returns on produce. The Schemes will be continued with an expenditure of Rs.33,269.976 crore for three financial years, i.e., 2017-18, 2018-19 and 2019-20. The Schemes that are part of the Umbrella Schemes are :-
(i) Mission for Integrated Development of Horticulture (MIDH) with a total central share of Rs. 7533.04 crore, MIDH aims to promote holistic growth of horticulture sector to enhance horticulture production, improve nutritional security and income support tofarm Households.
(ii) National Food Security Mission (NFSM), including National Mission on Oil Seeds and Oil Palm (NMOOP), with a total central share of Rs.6893.38 crore. It aims to increase production of rice, wheat, pulses, coarse cereals and commercial crops, through area expansion and productivity enhancement in a suitable manner in the identified districts of the country, restoring soil fertility and productivity at the individual farm level and enhancing farm level economy. It further aims to augment the availability of vegetable oils and to reduce the import of edible oils.
(iii) National Mission for Sustainable Agriculture (NMSA) with a total central share of Rs.3980.82 crore. NMSA aims at promoting sustainable agriculture practices best suitable to the specific agro-ecology focusing on integrated farming, appropriate soil health management and synergizing resource conservation technology.
(iv) Submission on Agriculture Extension (SMAE) with a total central share of Rs.2961.26 crore. SMAE aims to strengthen the ongoing extension mechanism of State Governments, local bodies etc., achieving food and nutritional security and socio-economic empowerment of farmers, to institutionalize programme planning and implementation mechanism, to forge effective linkages and synergy amongst various stake-holders, to support HRD interventions, to promote pervasive and innovative use of electronic / print media, inter-personal communication and ICT tools, etc.
(v) Sub-Mission on Seeds and Planting Material (SMSP) with a total central share of Rs.920.6 crore.
SMSP aims to increase production of certified / quality seed, to increase SRR, to upgrade the quality of farm saved seeds, to strengthen the seed multiplication chain, to promote new technologies and methodologies in seed production, processing, testing etc., to strengthen and modernizing infrastructure for seed production, storage, certification and quality etc.
(vi) Sub-Mission on Agricultural Mechanisation (SMAM) with a total central share of Rs.3250 crore. SMAM aims to increase the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low, to promote 'Custom Hiring Centres' to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership, to create hubs for hi-tech and high value farm equipment, to create awareness among stakeholders through demonstration and capacity building activities, and to ensure performance testing and certification at designated testing centers located all over the country.
(vii) Sub Mission on Plant Protection and Plan Quarantine (SMPPQ) with a total central share of Rs.1022.67 crore. SMPPQ aims to minimize loss to quality and yield of agricultural crops from the ravages of insect pests, diseases, weeds, nematodes, rodents, etc. and to shield our agricultural bio-security from the incursions and spread of alien species, to facilitate exports of Indian agricultural commodities to global markets, and to promote good agricultural practices, particularly with respect to plant protection strategies and strategies.
(viii) Integrated Scheme on Agriculture Census, Economics and Statistics (ISACES) with a total central share of Rs. 730.58 crore. It aims to undertake the agriculture census, study of the cost of cultivation of principal crops, to undertake research studies on agro-economic problems of the country, to fund conferences/workshops and seminars involving eminent economists, agricultural scientists, experts and to bring out papers to conduct short term studies, to improve agricultural statistics methodology and to create a hierarchical information system on crop condition and crop production from sowing to harvest.
(ix) Integrated Scheme on Agricultural Cooperation (ISAC) with a total central share of Rs. 1902.636 crore. It aims to provide financial assistance for improving the economic conditions of cooperatives, remove regional imbalances and to speed up - cooperative development in agricultural marketing, processing, storage, computerization and weaker section programmes to help cotton growers fetch remunerative price for their produce through value addition besides ensuring supply of quality yarn at reasonable rates to the decentralized weavers.
(x) Integrated Scheme on Agricultural Marketing (ISAM) with a total central share of 3863.93 crore. ISAM aims to develop agricultural marketing infrastructure to promote innovative and latest technologies and competitive alternatives in agriculture marketing infrastructure to provide infrastructure facilities for grading, standardization and quality certification of agricultural produce to establish a nationwide marketing information network to integrate markets through a common online market platform to facilitate pan-India trade in agricultural commodities, etc.
(xi) National e-Governance Plan (NeGP-A) with a total central share of 211.06 crore aims to bring farmer centricity & service orientation to the programmes to enhance reach & impact of extension services to improve access of farmers to information &services throughout crop-cycle to build upon, enhance & integrate the existing ICT initiatives of Centre and States and to enhance efficiency & effectiveness of programs through making available timely and relevant information to the farmers for increasing their agriculture productivity.
The Schemes/Missions focus on creating/strengthening of infrastructure of production, reducing production cost and marketing of agriculture and allied produce. These schemes / missions have been under implementation for varying duration during past few years. All these schemes/missions were appraised and approved independently as separate scheme/mission. In 2017-18, it has been decided to club all these schemes / missions under one umbrella scheme 'Green Revolution - Krishonnati Yojana'.
Source: Business Standard
The next phase of this market based trading system must learn lessons from the PAT Cycle 1 and design better policies The Perform, Achieve and Trade (PAT) Scheme is a programme launched by the Bureau of Energy Efficiency (BEE) to reduce energy consumption and promote enhanced energy efficiency among specific energy intensive industries in the country. In the first cycle of this scheme from 2011-14, 478 energy-intensive units from eight large industrial sectors, namely thermal power plants, fertilisers, cement, aluminium, pulp and paper, iron and steel, textiles, and chlor-alkali were given specific energy reduction targets to be achieved. Those that overachieved the targets were awarded Energy Saving Certificates or ESCerts, each equal to 1 metric tonne of oil (MTOe). Those unable to meet their assigned targets were required to purchase ESCerts (from the overachievers) through a centralised online trading mechanism hosted by the Indian Energy Exchange (IEX). Cumulatively, this was meant to achieve an energy savings of 6.68 MTOE by the end of 2014-15.
Performance assessment
India has committed to a 20-25 per cent emission intensity reduction target as compared to 2005 levels in its Nationally Determined Contributions (NDC) as per the Paris Agreement. According to the BEE, PAT Cycle 1 has achieved more than 30 per cent of this targeted energy saving, along with an almost 2 per cent reduction in emissions. This involved a cumulative investment of ₹24,517 crore in energy efficient technology by the industries included in PAT Cycle 1. A total of 38,50,000 ESCerts were awarded to 306 facilities for overachieving their targets, and 110 facilities were directed to purchase 14,50,000 ESCerts for not achieving their targets. With Cycle 1 being completed, this is an opportune moment to evaluate the experience of the scheme, so that future versions of PAT benefit from the learnings of PAT Cycle 1.
Early days
BEE was understandably keen to seek greater buy-in from industries in the early days of PAT, and would be expected to ratchet up the targets and add more sectors in future versions. PAT Cycle 1 had to establish data collection protocols and baselines, in addition to setting targets. Once this was done, industries had to compile their annual data. At the end of Cycle 1, during the monitoring and verification stage, anomalies in the data were addressed. Examples of anomalies included changes in power mix, fuel mix, market demand and unforeseen shutdown. This resulted in changes in baselines and targets due to the normalisation carried out to overcome errors for a few industries. This could be one more reason for overflow of ESCerts in the market; the other one being the low targets established during Cycle 1. For PAT Cycle 2, even if targets are more stringent, allowing the ESCerts earned in Cycle 1 to be utilised would inject inefficiencies in the system. And if the targets aren’t ratcheted up, we could see more over-achieving of targets, and a failure of this market-based trading mechanism.
ESCert’s trading effectiveness
When trading began, more than 30,00,000 ESCerts were available against a demand for 14,50,000 ESCerts by the companies. At the outset, it was assumed that each ESCert would cost around ₹10,000, as 1 MTOe is the average price of coal, oil, gas and one unit of electricity for the industrial sector. However, when trading started in September 2017, the opening price of 1 ESCert was ₹1,200, almost 10 times lower than expected As more industries registered on the trading site, the number of ESCerts available for purchase steadily increased. The low demand ensured that the price gradually declined. By November 2017, the price was as low as ₹200.
Investment profile
The industries that achieved their target invested ₹24,517 crore in energy-efficient technology. In comparison, companies that didn’t achieve their targets spent a mere ₹100 crore as compensation for non-compliance. The absence of a floor value attached to the trading of ESCerts, allowed some energy-intensive industries to continue to deprioritise investing in energy efficiency. Cumulatively, those who didn’t achieve their targets were able to continue to delay investments in energy efficiency, and those who achieved their targets failed to gain supplementary finance. This situation needs to be fixed in PAT Cycle 2. Secondly, it was stated that facilities that didn’t achieve their targets would be liable to pay an additional penalty of ₹10,00,000 if they failed to purchase ESCerts. In the case of continued failure to meet targets, further penalties would be levied. However, there is no clarity on enforcement or timelines for defaulters to make these applicable.
More transparency
Thirdly, bringing more transparency and clarity in the trading mechanism and regulations will build confidence amongst industries, and control liquidity interactions and balance in the system. India could learn from similar efforts in other countries including, Italy’s 2017 rules for white certificate trading to control effective obtainment of energy savings; liability for the implementation of energy efficiency interventions, stricter rules to calculate the baseline energy and associated energy savings. This is expected to maintain the liquidity and stability of the white certificate in market. In conclusion, while PAT Cycle 1 was a good start, one expects to see Cycle 2 benefit from the lessons and experience of Cycle 1, while also lessons from similar efforts in other countries attempting to enhance their energy efficiency, and to design future policies in an effective and efficient manner.
Source : The Hindu Businessline
Manufacturing sector activity improved marginally in April, driven by rise in new business orders amid favourable demand conditions, amid easing inflationary pressures, says a monthly survey. The Nikkei India Manufacturing Purchasing Managers Index (PMI), rose from 51.0 in March to 51.6 in April, indicating faster improvement in the health of the country’s manufacturing economy than in the prior month. Inflationary pressures moderated for the second month in a row, with the softest increases for input costs and output charges reported since September 2017 and July 2017, respectively, the survey said. Meanwhile, expectations of interest rate cuts have been mounting on the Reserve Bank of India (RBI) in the wake of declining retail inflation and the need to fuel growth momentum. In its first bi-monthly monetary policy for 2018-19 last month, the RBI had left the repo rate unchanged at 6%. The MPC maintained the status quo for the fourth consecutive time since August last year. This is the ninth consecutive month that the manufacturing PMI remained above the 50-point-mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. “The Indian manufacturing economy started the quarter on a slightly stronger footing as growth picked up from March’s five-month low, buoyed by stronger demand conditions,” said Aashna Dodhia, Economist at IHS Markit and author of the report. Ms. Dodhia further noted that “consumer goods was again the bright spot, with output growth being the fastest among all the three market groups. Meanwhile, investment goods was the weakest performing category as both production and new orders declined during April”. Greater production requirements stimulated job-creation and encouraged companies to engage in input buying. The survey noted that business sentiment was at the strongest level since the implementation of the goods and services tax (GST) in July 2017. “Optimism reflected expectations that new business and demand conditions will improve over the coming 12 months, according to panellists,” it added.
Source: Business Line
Mumbai : The rupee today ended virtually steady at 66.66 against the US dollar as currency traders avoided taking any positions ahead of the much awaited FOMC policy decision and US jobs report. The Indian currency managed to stay within a pretty small range with little in the way of catalysts. It moved between 66.6350 and 66.78 during the day. Overall, forex market sentiment remained bearish and displayed some signs of exhaustion after the rupee's recent spell of impending volatility on hardening concerns over capital outflows as well as macro headwinds due to rising crude prices. "Reopening after a long weekend, the Indian rupee traded flat against US dollar, ahead of FOMC interest rate decision, but is likely to closely track RBI's move to allow FPI's invest in treasury bills, and its impact on bonds...Meanwhile, expectations of a rate hike has kept US dollar firm against its peers, ahead of FOMC announcement," Anand James, Chief Market Strategist at Geojit Financial Services, said. Indian money markets were closed on April 30 and May 1 on account of Buddha Purnima and Maharashtra Day, respectively. The Indian unit had crashed to a fresh 14-month low last week. It depreciated by a staggering 2.27 per cent in April in which foreign investors and funds pulled out more than Rs 15,500 crore from the Indian capital markets. In the meantime, the Reserve Bank of India last week announced a slew of measures to raise exposure of foreign portfolio investors in government securities and also permitted FPIs to invest in treasury bills issued by the central government, a move could bolster the domestic bond market and softening yields. The 10-year benchmark yield fell sharply to 7.73 per cent from 7.77 per cent last weekend. Globally, the dollar held near a four-month high against a basket of major currencies, buoyed by the outlook for a strong US economy and rising yields amid signs of a slowdown elsewhere, especially in Europe. On the global energy front, crude regained some lost gound from its overnight sharp plunge driven by concerns that the US may reimpose sanctions on major exporter Iran, although soaring US supplies capped gains. Oil prices tumbled on Tuesday after American Petroleum Institute (API) reported a large build of 3.427 million barrels of US crude oil inventories for the week ending April 27. Brent crude, an international benchmark, was trading lower at USD 73.03 a barrel in early Asian trade. It topped USD 75 a barrel last Tuesday for the first time since November 2014. In the meantime, after scaling life-time high, the country's foreign exchange reserves fell by a whopping USD 2.499 billion to USD 423.582 billion in the week to April 20, the Reserve Bank of India (RBI) said. After an extended weekend, the rupee resumed lower at 66.75 from last Friday's close of 66.66 at the inter-bank foreign exchange (forex) market largely weighed down by strong dollar overseas tone. Moving sideways in a very narrow range between 66.6350 and 66.78, the local unit finally settled unchanged at 66.66 against the US currency. The RBI, meanwhile, fixed the reference rate for the dollar at 66.6636 and for the euro at 80.0097. Meanwhile, domestic equity markets ended on a mixed note in choppy trade due to some profit-taking at higher levels despite a strong start, as the benchmark index edged higher by 16.06 points to close at 35,176.42k, while the Nifty lost 21.30 points to 10,718.05. Asian stocks were mostly lower Wednesday as investors looked with some caution to the US Federal Reserve's monetary policy call. The dollar index, which measures the greenback's value against a basket of six major currencies, was down at 92.20. However, in the cross currency trade, the rupee maintained its uptrend against the pound sterling to end at 90.90 from 91.82 and hardened against the euro to finish at 79.97 as compared to 80.54. The home unit also strengthened against the Japanese yen to close at 60.70 per 100 yens from 60.98 earlier. Elsewhere, the pound sterling staged a rebound from four-month lows against the greenback following the release of better-than-expected UK construction PMI data amid BOE rate hike expectations and Brexit concerns. The euro, however, traded little changed against the US dollar unfazed by the slowing Eurozone economy which expanded by 2.5 per cent Y-o-Y in the first quarter of 2018, a slight moderation from the prior quarter of 2.7 per cent even as the unemployment rate remained at the lowest level since December 2008 at 8.5 per cent. In forward market today, premium for dollar firmed higher due to sustained paying pressure from corporates. The benchmark six-month forward premium payable in September moved up to 105.50-107.50 paise from 104-106 paise and the far-forward February 2019 contract also edged up to 235.50-237.50 paise from 233-235 paise previously.
Source: Times of India
The proposed model is a fusion between the recommendation by Infosys Chairman Nandan Nilekani and the ‘provisional credit model’ suggested by government officers. A buyer will get input tax credit based on the seller's uploading of invoices, including missing ones. This would be irrespective of whether seller has actually paid the tax. “The Council will discuss (this). It is expected to get acceptance,” said an official. In the provisional credit model, the buyer would provisionally get input tax credit once he uploaded the missing invoices. This was to get reversed in three months if the seller had not uploaded the invoices and paid the tax. “In the hybrid model, there will be no linkage to seller making the payment. A buyer will get credit as soon as a seller uploads the invoice. The buyer will not be denied any credit if the tax is not paid by the seller,” said the official. Another officer said this could be a big positive for business as a whole. “How can a buyer control the seller paying taxes?” “It would be unfair to business if non-payment of GST by the seller results in the buyer having to reverse credit already taken after paying the tax to the seller. Consequently, any model that does not require any reversal of bonafide credits would be welcome,” said M S Mani, partner at consultants Deloitte India. In non-payment of taxes, the authorities will follow it up with the seller, based on the liability generated from the invoice upload. If the seller does not have money to pay or cannot be located, then the authorities would catch the buyer, the official said. To make things easier, invoice uploads will be allowed on a daily basis, instead of on a monthly basis through the existing GSTR-1 form. GST Network, information technology backbone for the indirect tax, has sought sufficient time to implement the approved return filing model. Hence, the current system of GSTR-3B (summarised return) and GSTR-1 (outward supply) will continue for the time being beyond June 30.
Source: Business Standard
NEW DELHI: In what has implications for commercial rental space and businesses in general, the government has said transfer of tenancy rights is a service liable to tax. A finance ministry circular has said such activity against consideration in the form of tenancy premium constitutes a “supply of service”, which is liable to Goods and Services Tax (GST) “Merely because a transaction or a supply involves execution of documents which may require registration and payment of registration fee and and payment of registration fee and stamp duty, would not preclude them from the scope of supply of goods and services and from payment of GST,” it said. The circular has reaffirmed that residential renting is exempted from tax. It said grant of tenancy rights in a residential dwelling for use as residence against tenancy premium or period rent or both, is exempt. “The activity of transfer of ‘tenancy rights’ is squarely covered under the scope of supply and taxable per-se,” it said. Services provided by outgoing tenant by way of surrendering tenancy rights against consideration in form of a portion of tenancy premium is also liable to GST, it has said. The transfer of tenancy rights against tenancy premium, also known as pagadi, is prevalent in states such as Mahrashtra. Under this system, the tenant acquires tenancy rights in the property against payment of tenancy premium. The landlord may be owner of the property but the possession of the same lies with the tenant. The tenant pays periodic rent to the landlord as long as he occupies the property. The tenant also usually has the option to sell the tenancy right of the said property and in such a case has to share a percentage of the proceed with the owner, as laid down in their tenancy agreement. Alternatively, the landlord pays to tenant the prevailing tenancy premium to get the property vacated. “The activity of transfer of tenancy right against consideration in the form of tenancy premium is a supply of service liable to GST,” it said.
Source: The Economic Time
Scaled-up process enables the production of knitted wearable textiles. A different approach has been adopted by researchers at the Institute for Frontier Materials at Geelong Australiabased Deakin University to produce strain sensing smart textiles. A few disadvantages so far regarding wearable textiles are scalability for mass production acceptable cost durability and washability. Research undertaken features continuous production of conductive filaments which can be used to knit functional textiles. This method differs from other ways of developing wearables such as adding/ stitching electronic components or coating functional materials after the fabric is made. The conductive filament knitted fabrics were found to detect strains up to 200% and could be stable up to 500 cycles of stretches. Functional filaments were wet spun from a solution of polyurethane and polyethylenedioxythiophene:polystyrenesulfonate (PEDOT:PSS) and then knitted into different knit structures which acted as sensors. These knits could be worn on the human body such as limbs and were able to provide reliable strain responses. The authors claim that many different applications such as remote sensing of body parts soft robotics are possible. Strain sensing textiles can be worn directly on the body without need of additional items which is due to advances in the conductive fiber spinning stated Dr. Shayan Seyedin lead researcher in the project. The study is appearing in a forthcoming issue of the journal Applied Materials Today.
Source: Tecoya Trend
GANGTOK : The bilateral trade for the year 2018 between the traders of India and China through the Nathu La border started today with traders and government officials from both sides exchanging gifts and greetings. Last year the trade was disrupted following the Doklam standoff. This year the traders are hopeful that there would be no problem an official of the Sikkim government said. Traders from India and the Tibetan Autonomous Region (TAR) said they were optimistic that there would be no problems this year the Sikkim government official said adding that the trade was stopped in July last year. “Last year due to the Doklam standoff trading through Nathu La was possible only for two weeks as a result of which we incurred losses. However we are optimistic this year ” the general secretary of the Indo-China Border Traders’ Welfare Association Tenzing Tsepel said. In 2016-2017 goods worth Rs 3.54 crore were traded via the Sino-Indian border Nathu La an official of the Sikkim Commerce and Industries department said at the border today. The trade between the two countries through Nathu La border located at a height of 14 200 feet was resumed in 2006 44 years after it was closed. The traders’ association also informed that an official meeting was held between the representatives from both sides today including officials of the ITBP and PLA on how to make this year’s trade more efficient and cordial. Issues like currency exchange road connectivity and problems due to inclement weather were discussed at the meeting an official said. While the Indian traders export blankets textile and processed goods among other items to their counterparts in the TAR the import comprises mostly quilts and jackets the official added.
Source: Tecoya Trend
The Farm to Fashion expo, to be held in the city beginning March 4, will act as a liaison between garment and fabric manufacturers from Gujarat and retail giants likes Walmart, Philip-Van Heusen (PVH Corp), Gini and Jony, Reliance Trendz, Arvind Ltd, and Simba Fashions (Bangladesh), who will be attending it. Sources say, participation of such buyers will open gates for small business in Gujarat and help expand their footprint across the nation and even abroad. "Representatives of Walmart and other major brands have approached us. This will be a huge opportunity for local players to showcase their products to top buyers from across the country and even foreign buyers. We urge them to reap full benefit of the textile exhibition and the various sessions that will be held," said Shailesh Patwari, President, Gujarat Chamber of Commerce and Industry (GCCI). GCCI, along with Maskati Market Kapad Mahajan, is organising the exhibition, which will be on till May 6. Local players believe this will benefit local manufacturers by helping them reach markets where these brands have their footprint. Nitin Prasad, V-P (sourcing ), India, Phillip Von Heusen Navneet Bhagat, M-D of Simba Fashions Yogesh Chaudhary, V-P of Gini and Jony representatives of Arvind Ltd and Reliance Trenz, are some of those who would attend the exhibition. Organisers have invited close to 400 buyers, which include major export houses from Delhi, Bengaluru, Mumbai and other major hubs, along with international buyers from Bangladesh, Vietnam, and Indonesia. In addition to interaction with prospective buyers, the expo will host a series of knowledge sessions. Meena Kaviya, Chairperson, Textile Committee, GCCI, said this will give local businesses an idea of regulatory requirement, technological updates, sustainable business practices, environment regulations, certification aspects, global scenario, government incentives, and other business insights. A white paper depicting the road map for the growth of textile sector will be prepared by sectoral experts. It will be presented to the central government as an input for the upcoming textile policy. The three-day expo aims to strengthen the entire garment production chain, right from cotton growers to garment makers in Gujarat, and to halt the export of low-value textile products and instead, create value added products within Gujarat to help local farmers and small businesses.
Source: Daily news & Analysis
The global market for home décor textiles is expected to record an impressive growth between 2018 and 2027. Growing consumer confidence, capacity expansions, social responsibility and sustainability trends, and a booming e-commerce sector will take revenues from worldwide sales of these textiles to over $ 185,000 million by 2027, according to a new report. Asia-Pacific excluding Japan (APEJ) will continue to dominate the global textiles home décor market, says the report by market intelligence company Transparency Market Research (TMR). Countries in that category like China and India, have remained leading global exporters of home textiles. Manufacturers and exporters of home textiles in India have recorded higher profit margins. The Chinese home textile industry is currently focusing more on garments business. Considering US home textile imports, China will continue to be dominant, with relatively larger number of shipments compared to other APEJ countries, says the report. Bed linen is expected to be the most remunerative product in this market, with an estimated revenue share of over 33 per cent during 2018-2027. Demand for bed linen is likely to grow at a brisk pace, with a steady stream of opportunities expected to emerge in both developed and developing markets. Sensing the lucrativeness of this segment, manufacturers are focusing on consolidating their position, the report says. Prominent manufacturers are also focusing on increasing capacity and setting up new plants. Welspun India opened a new plant in Anjar, Gujarat, recently and forayed into the flooring solutions segment. Bombay Dyeing is focusing on a massive revamp of its home textile business by investing over $ 15 million. However, a key challenge for stakeholders in this segment is the highly fragmented presence of unorganized players. Indoor applications of home décor textiles are expected to account for bulk revenue share of the market. However, revenues from outdoor applications of home décor textiles will increase at a relatively higher compound annual growth rate till 2027, says the report. The key companies underpinning expansion of the global home décor textiles market are Mannington Mills, Inc., Companhia de Tecidos Norte de Minas, Kurlon Enterprise Limited, American Textile Company, Inc., Leggett & Platt, Incorporated, Nitori Holdings Co., Ltd., Williams-Sonoma, Inc., Berkshire Hathaway Inc., Ashley Furniture Industries, Inc., Mohawk Industries, Inc., and Inter Ikea Systems
Source: Fibre2Fashion
BATHINDA: With only a fortnight left for sowing of cotton under ideal conditions, only 9,600 hectares have been covered in Punjab till April 30. Last year the crop was sown in 22,000 hectares till April end. Sowing of cotton is termed ideal till May 15 in the state. The delayed release of canal water is termed as the biggest reason behind late sowing. The canal water reached villages in Fazilka and Muktsar districts on April 29, but that too not at full capacity whereas it had reached the other cotton districts on April 21. The sowing is expected to pick up in the first week of May. Going by the slow pace of sowing, the Punjab agriculture and farmer welfare department has called a meeting of all chief agriculture officers of the districts on May 4 to take stock of the situation. The state has put a target of sowing into 4 lakh hectares whereas as per sources the process is likely to stay at 3.5 lakh hectares. Last year cotton was sown in 3.80 lakh hectares. “Non-availability of canal water till two days ago delayed sowing. We kept on waiting for the canal water and even when it was released, the intensity was low that is posing problems in sowing,” said farmer Kulwinder Singh of Khuian Sarwar in Fazilka. Another farmer Gamdoor Singh of Muktsar said late releasing of canal water delayed cotton sowing. The dry weather will further complicate the issue. Punjab agriculture and farmer welfare department director JS Bains confirmed that late releasing of canal water had posed serious problems for department and farmers. He added, “We are worried as sowing has been done in only 9,600 hectares as compared to 22,000 in previous year. Even now the canal water has not been released at full intensity in some areas in Fazilka and Muktsar, which may further delay the process. The delayed sowing is prone pest attack. The department will hold a meeting in this regard on May 4”. Water resources department superintending engineer at Ferozepur HS Chahal said, “Initially though the plan was to release water from April 7 to 21 but it got delayed due to necessary repairs of distributaries and water was released in various distributaries on April 28 which reached tails in a day.”
Source: Times of India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1399.68 |
USD/Ton |
-0.28% |
5/2/2018 |
|
VSF |
2192.17 |
USD/Ton |
0% |
5/2/2018 |
|
ASF |
2838.78 |
USD/Ton |
0% |
5/2/2018 |
|
Polyester POY |
1461.97 |
USD/Ton |
-0.05% |
5/2/2018 |
|
Nylon FDY |
3422.31 |
USD/Ton |
-0.46% |
5/2/2018 |
|
40D Spandex |
5677.56 |
USD/Ton |
0% |
5/2/2018 |
|
Nylon POY |
3643.10 |
USD/Ton |
-0.43% |
5/2/2018 |
|
Acrylic Top 3D |
5961.44 |
USD/Ton |
0% |
5/2/2018 |
|
Polyester FDY |
1711.15 |
USD/Ton |
0% |
5/2/2018 |
|
Nylon DTY |
3185.74 |
USD/Ton |
-0.49% |
5/2/2018 |
|
Viscose Long Filament |
3028.03 |
USD/Ton |
2.13% |
5/2/2018 |
|
Polyester DTY |
1734.81 |
USD/Ton |
0% |
5/2/2018 |
|
30S Spun Rayon Yarn |
2972.83 |
USD/Ton |
-0.26% |
5/2/2018 |
|
32S Polyester Yarn |
2192.17 |
USD/Ton |
0% |
5/2/2018 |
|
45S T/C Yarn |
3012.26 |
USD/Ton |
0% |
5/2/2018 |
|
40S Rayon Yarn |
2334.11 |
USD/Ton |
0% |
5/2/2018 |
|
T/R Yarn 65/35 32S |
2554.90 |
USD/Ton |
0% |
5/2/2018 |
|
45S Polyester Yarn |
3138.43 |
USD/Ton |
0% |
5/2/2018 |
|
T/C Yarn 65/35 32S |
2696.84 |
USD/Ton |
0% |
5/2/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
5/2/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
5/2/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
5/2/2018 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
5/2/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
5/2/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15771 USD dtd. 2/5//2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The progress achieved in fortifying worker safety in the last five years, after Rana Plaza building collapse, has been unprecedented and serves as a model for other countries to follow, said an Alliance official press release. Five years ago, today, the collapse of the Rana Plaza building claimed the lives of 1,134 men and women, left thousands more injured and changed the Bangladesh garment industry forever. In the aftermath of the disaster, stakeholders from across the industry came together to bring a change in factory safety in Bangladesh. Marking this solemn day, Alliance remembered the men and women who perished at Rana Plaza, and it reaffirmed their commitment to continuing an uncompromising focus on safety.
Alliance looking for credible organization to handover their service
The release said, “Today, millions of men and women who make a living in Bangladesh’s garment industry work in factories that meet international safety standards. They have been trained to protect themselves in case of an emergency. And they have tools to bring immediate attention to safety concerns, including a confidential, 24-hour helpline.” “The Alliance is proud to have played a role in driving these achievements,” it added. The release claimed that with Alliance factory remediation nearing completion, their factories have reached the starting line for safety, not the finish line. Brands, factory owners, and the Bangladesh government now have a shared responsibility to sustain these gains. The release also pointed out that is why the Alliance will join with credible, local partners in the weeks ahead to form a joint entity that will continue to oversee inspections, monitoring, worker training and helpline services over the long term.
Source: Textile Today
France has been very progressive in terms of eliminating product waste. Two years ago, they were the first country to pass a law that prevented grocery stores and supermarkets from throwing away food that neared expiration. Now they’re having a same approach to the textile industry that prohibits throwing away unsold clothes. Back in 2016, France had a problem with an increase in homeless people rummaging through store dumpsters. This led to attempts by store owners to keep them out by adding locks around their garbage. Instead of throwing these items out, the country passed a law requiring these stores to donate them to charity. A similar approach could be given to clothing waste by next year. Prime Minister Edouard Philippe has a goal to create a circular economy in France, and out of the numerous proposals, one of them is to prohibit throwing away any apparel that isn’t sold. Emmaus, a charity founded in Paris that focuses on poverty, have been advocating for an expansion of the food waste law into the clothing industry. “The 2019 deadline allows the government to appraise the situation, calculate the amount of discarded [textiles], review the procedures put in place by companies and the problems involved,” Valerie Fayard, general assistant at Emmaus France, told Novethic, a local sustainable research and transformation company. How big of a problem is it in France? According to the Fashion Network, Europe throws away four million tons of clothing while five million tons is put back into the market on an annual basis. In France alone, they represent 17.5 percent of that waste, and only 22.9 percent of what’s tossed out is recycled. Conversation on clothing waste sparked last February when Nathalie Beauval posted a photo of a French clothing store, Celio, destroying old clothes. She said on Facebook that these should be given to charity instead of being ripped up. Store officials argued that it was company policy to shred them as they were unwearable and they regularly donated older clothing items. The government is looking to add incentives to push these companies toward voluntarily disposing clothes. Along with food waste and textiles, they’re looking to eliminate waste in three other major industries: electronics, furniture, and hotels. Legislation is expected to pass at some point next year. France was the leading country in Europe in limiting food waste according to the 2017 Food Sustainability Index. While grocery store waste represents just 11 percent of total food waste in the country, these early steps in eliminating waste provide a blueprint for others to follow. After all, much of this waste can not only be avoided, but it can be donated to those in need.
Source: Green Matters
The sweaty mechanic tossed aside the used jeans one by one, digging deep through the pile of secondhand clothes that are at the center of another, if little-noticed, Trump administration trade war. The used clothes cast off by Americans and sold in bulk in African nations, a multi-million-dollar business, have been blamed in part for undermining local textile industries. Now Rwanda has taken action, raising tariffs on the clothing in defiance of US pressure. In response, the US says it will suspend duty-free status for clothing manufactured in Rwanda under the trade programme known as African Growth and Opportunity Act. President Donald Trump’s decision has not gone down well in Rwanda, a nation still trying to heal the scars of genocide 24 years ago. Similar US action against neighboring countries could follow as Uganda and Tanzania have pledged to raise tariffs and phase in a ban on used clothing imports by 2019. The action against Rwanda comes just weeks after Trump met Rwandan President Paul Kagame at the World Economic Forum and called him a friend, as the US President sought to calm anger in Africa over his reported vulgar comments about the continent. Kagame currently chairs the African Union, where heads of state just days after the meeting drafted, but decided against issuing, a blistering statement on Trump. The US trade action is finding a mixed response in Africa, with some upset at Trump again, while others defend the secondhand clothing as popular, inexpensive and well-made. The US is a bully for retaliating against Rwanda’s efforts to grow its own textile industry, said Dismas Nkuranga, who deals in secondhand footwear in Rwanda’s capital, Kigali “The main objective for Rwanda is to see more companies in the country produce clothes here,” said Olivier Nduhungirehe, State Minister for Foreign Affairs. “It’s also about giving Rwandans the dignity they deserve, not wearing secondhand clothes already used by other people.” But at the sprawling Owino Market in neighboring Uganda’s capital, Kampala, the trade in used clothing continues to crackle, with some sellers shoving merchandise into the arms of shy potential buyers: a pair of jeans for a fraction of a dollar, a T-shirt for even less. “Affordability is what I want,” said John Ekure, the mechanic who was shopping for jeans. As some African governments worry that the bulk imports of used clothes constitute dumping, others question the ability of local clothing makers to satisfy appetites for quality goods at rock-bottom prices. Rwanda has been supporting Chinese investors to set up textile factories in the hopes that the country eventually can produce affordable products and create 350,000 jobs by 2025. But many in Rwanda who praise the government’s decision to raise tariffs as progressive remain concerned about whether that goal can be reached. In Uganda, where the per capita income is $615, traders and buyers say they hope the government will not move as swiftly as Rwanda in imposing higher tariffs on used clothes.
No capacity
One trader said he had noticed a rise in the number of Rwandans coming to his stall to check out trench coats and jackets, apparently because such goods have become rare back home. “If they are telling us they are going to create many industries making clothes, I can tell you they don’t have the capacity to do that,” Muhammad Kiyingi said of Uganda’s government. “Somebody should tell the government to think carefully.” He predicted that tightening restrictions on imports of used clothing from the US would lead to a spike in imports from places like China and the United Arab Emirates instead. Following Rwanda’s lead would “cause more harm than good,” said Ramathan Ggoobi, an economist at Uganda’s Makerere University.
Source: The Standard
In a bid to catalyse the revival of the textile industry in the country, the Raw Materials and Research Development Council has presented 20 tonnes of improved cotton seeds to farmers nationwide. In an interview with our correspondent in Abuja on Wednesday, the Head of Agriculture and Agro-allied Department, RMRDC, Dr. Gabriel Awolehin, said the 20 tonnes of seeds could cover 716 hectares of cotton farms. In terms of yield, he explained that at a conservative estimate of two tonnes per hectare, the seeds could produce 1,432 tonnes of cotton. Making the presentation through the National Cotton Association of Nigeria, the Director-General, RMRDC, Dr. Hussaini Ibrahim, regretted that the fortunes of the textile industry had nosedived despite its status in the Nigerian manufacturing industry. Putting the present capacity utilisation in the textile manufacturing industry at 30 per cent, Ibrahim pledged that the Federal Government would revive the industry, citing the donation of cotton seeds to farmers at no cost as an evidence of its commitment. He said, “The Nigerian textile industry, which accounted for about 25 per cent of the manufacturing value added in the 1970s to the 1990s, has passed through various phases of growth. It used to be the largest employer of labour in the manufacturing sector after the public sector in the early 1990s. The sector employed about 650,000 people during its glorious period in the 1970s to 1980s. “The decline witnessed within the sector today is attributed to high operating costs resulting from poor energy supply, infrastructure decay and proliferation of the market with cheap and smuggled textiles. “As a result, many companies have shut down, while some have relocated to other countries within the sub-region. The industry today is made up of 25 functional textile companies out of 192 mills in the 1990s. The current capacity utilisation is 30 per cent of installed capacity, allowing for a thriving trade in imported (mostly smuggled) textiles, a lot of which are fake and counterfeited.”
Source: The Punch
Kano state government will take more proactive steps towards actualising the Panisau Free Trade and Dala Inland Dry Port in the state, Governor Dr. Abdullahi Umar Ganduje, has assured. The free zone at Panisau commenced in 1992, while Dala Dry Port at Zawachiki started formally in 2006. Regrettably, both have continued to face completion challenges. Ganduje assured that, while the Panisau free zone will soon be partially privatised, the bottlenecks being faced by Dala would be removed. The governor disclosed this yesterday in Abuja shortly after a meeting with the Managing Director of Ruyi Group, the Chinese textiles and garments industry that bought African Textile Manufacturers Company at Challawa, Kano, Mr. Sun, the Special Assistant to the chairman, Mr. Weidong Wang, top executives of the Bank of Industry, the Special Adviser to the Minister of Industry, Trade and Investments, Mr. Femi Edun and a technical assistant in the office of the Vice President, Mr. Kolawole Omole, at the Bank of Industry headquarters. Represented by the state Commissioner for Commerce, Ahmad Rabi’u, Ganduje said: “Kano will soon have opportunities to establish businesses in the two free zones. Panisau has 264 hectares, Dala has 200 hectares. There are also two other parcels of land for free zones, about 160 hectares at Kanye in Karaye and over 200 hectares in Ungoggo local government areas.” He pointed out that his administration has invited investors and pledged to provide any support required, and demonstrated his commitment through various actions in granting concessions, providing land and joining the projects as public private partnership. “This is the time to invest in Kano as Kano is continuing to earn awards for being the most improved state on ease of doing business. Seeing or meeting the governor whenever required is there for the asking. Kano people are agreed to be the most hospitable people, highly industrious and business oriented,” the governor stressed. On the meeting with the Chinese investor, Ganduje hinted that “itreviewed the BOI intervention and the actualisation of the Ruyi /ATM takeover, the establishment of a Textile and Garment Industrial Park in Kano and one each in the Eastern and Western regions. Varying incentives packages were revealed.” “The Economic Recovery and Growth Plan (ERGP) was extensively discussed. Importantly, the actualisation of the free zones in Kano was discussed extensively,” he added.
Source: Blueprint
The Lake Region Economic block plans to re-introduce large scale cotton growing in the Lake Victoria basin after the Government lifted the ban on biotechnology cotton. Kisumu Governor, Prof Anyang' Nyong'o said negotiations had been opened with multinationals to revive the once top-cash spinner under the block bringing together 14 counties in western Kenya. He said the renewed interest in cotton farming has been informed by the high demand for Kenyan cotton in the US apparel market. Nyong’o said on top of the expected rise in demand for the raw material in the textile industry with the revamping of the Eldoret-based Rivatex, there was a big export demand in the US. “Kenya’s cotton export to the US through AGOA (African Growth and Opportunity Act) is just about Sh4 billion against a total demand of about Sh500 billion,” Nyong’o told those attending Labour Day celebrations in Kisumu on Tuesday. The Act covers more than 6,000 products than can be exported to the US on preferential trade terms. He said in line with the Jubilee Government’s Big Four agenda – manufacturing, health, food security and housing – the Government had embraced the high yielding BT cotton and asked farmers in known cotton growing areas to shift focus to the crop for “good and steady returns.” “We are already in talks with experts and we will soon come to you with the plan on how we can leverage on these opportunities to create jobs and lift ourselves out of poverty,” he said. He said sorghum had already earned market at the newly established Kenya Breweries Limited plant in Kisumu and urged farmers to embrace cotton farming with the same zeal. The once thriving cotton growing and ginneries have been ailing over the last few decades. Most of the region’s ginneries closed down as farmers abandoned the once top-cash spinner. The bloc has entered a partnership with the Lake Basin Development Authority which has been conducting feasibility studies into the viability of cotton farming with plans to help reintroduce it.
Source: Standard media
On 25 April distinguished figures of country’s knit sector gathered on a roundtable discussion at Hotel Regency in the capital sponsored by Divine Group, Auko-Tex Group and Essential Clothing LTD., where Bangladesh Textile Today was the knowledge partner. At the program distinguished figures of the knit industry were present. Speakers shared present challenges of the knit sector they are facing and its way outs led by Engr. Shafiqur Rahman, President of ITET and Managing Director of HAMS Group. Engr. Saiful Islam Khan, Managing Director of Essential Clothing LTD. gave the inauguration holistic presentation. Distinguished-guests-of-knit-sector-attended-the-open-forum-discussion-of-knit-sector Mr. Saiful Islam Khan said, “Our knit sector is not united to face the challenges. Bangladesh is one of the strongest countries in terms of capabilities and competitiveness in the knit sector. We maintain commitment. Our weakness is in product design, do not have any priority, poor infrastructure. We have also productivity challenge.” “We have to diversify our products. Also, we can tap into the untapped market,” he added. Prof. Engr. Mashud Ahmed, Vice-Chancellor of BUTEX, said, “Buyers will always push for less. We have to change our mindset to get more prices from them. Present the data of how many resources we are exhausting, damaging the environment in a diplomatic way.” Engr. Selim Reza, Executive Director of Divine Group, highlighted that “It is a buyer dominating market. We use less than 40% of our efficiency. We need to make a policy level decision where we have to involve the government.” A. S. M. Tareq Amin, Editor and Publisher of Bangladesh Textile Today said, “We cannot present ourselves in a positive way. Today 9.5% of knit sector figures are present here. So, we create influence and we have to utilize that influence.” Md. Shamsuz Zaman, Managing Director of Micro Fibre Group, said, “We have to find out the way from where we can save money.”
Source: Textile Today
