The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 21 SEPT, 2020

 NATIONAL

INTERNATIONAL

Samarth Scheme

The Ministry of Textiles is implementing the Samarth-Scheme for Capacity Building in Textiles Sector, a placement oriented programme targeting skill development of 10 lakh youth in the entire value chain of textiles, excluding Spinning & Weaving in the organized Sector. Some of the advanced features of SAMARTH scheme include Training of Trainers (ToT), Aadhar Enabled Biometric Attendance System (AEBAS), CCTV recording of training programme, dedicated call centre with helpline number, mobile app based Management Information System (MIS) and on-line monitoring of the training process. Under Samarth, 18 State Governments have been allocated a training target of 3.6 lakh beneficiaries for conducting training programme in traditional and organized sectors. The States have entered into MoU with Ministry on 14.08.2019. Sectoral Organizations of Ministry (DC-Handlooms, DC-Handicrafts, CSB & National Jute Board have been allocated a training target of 43,000 beneficiaries for skilling/up-skilling in traditional sectors. Further, Ministry initiated the process of empanelling industry/industry associations for undertaking industry oriented entry level skilling programmes in the organized sectors. A total of 76 industries have been empanelled under Entry level skilling and allocated a training target of 1.36 lakh beneficiaries. Also, 44 industries for upskilling programme have been empanelled and allocated training target of 30,000 beneficiaries. With a view to improve the participation of MSME in the skilling programme, a separate RFP was floated to empanel industry associations working with MSME sector textile industries. Physical verification of training centres proposed 11 industry associations applied under this category has been commenced. At present, 23 empanelled implementing partners have commenced the training programme under the scheme in 11 States.

(Rs. In crores)

Financial Year

Fund Allocation

Fund Utilization

2017-18

100

100

2018-19

42

16.99

2019-20

102.1

72.06

2020-21(as on date)

150

11.37*

Total

394.1

200.42

 

 

*Training programme affected during COVID-19 pandemic due to local lockdown conditions in most States This information was given in a written reply by the Union Minister of Textiles Smt. Smriti Zubin Irani in Lok Sabha today.

Source: PIB

Back to top

Market Linked Focus Products Scheme

The Market Linked Focus Products Scheme (MLFPS) was being implemented under the provisions of the Foreign Trade Policy 2009-14, as extended till 31.03.2015. The Scheme is no longer in operation for exports from 01.04.2015, as the new FTP 2015-20 is launched on 01.04.2015 with new scheme in the name of Merchandise Export from India Scheme (MEIS).In order to bail out the textile sector from the severe consequences of COVID-19, Ministry of Textiles has conducted a Symposium with Textile Export Promotion Councils and other industry stakeholders for finalizing a list of potential textile and apparel export products against which exports can be enhanced. The list of potential export products were shared with the Indian Missions abroad for identification of potential buyers in the respective countries. Further, to make the textile sector competitive by rebating all taxes/levies in international market, the Government has decided to continue the RoSCTL (Rebate of State and Central Taxes and Levies) scheme until such time the RoSCTL scheme is merged with Remission of Duties and Taxes on Exported Product (RoDTEP) Scheme. For this purpose, the Government has approved adhoc allocation of funds of Rs.7398 crore for FY 2020-21 for issuance of duty credit scrips under RoSCTL Scheme. Further, in order to boost exports in MMF sector, Government has removed anti-dumping duty on PTA, a key raw material for the manufacture of MMF fibre and yarn. To mitigate the effect of the COVID-19 pandemic on trade, this Ministry has taken up the various trade facilitation related issues raised by the industry stakeholders from time to time with the concerned Ministries for early redressal.

Details of textile products exported to US and European countries during the last three years, year and product-wise are as under:

(I) Textile products exported to US:

 (In USD mn)

 

2017-18

2018-19

2019-20

Readymade Garment

3864.3

4165.66

4227.3

Cotton Textiles

2090.39

2289.11

2254.72

Man-made textiles

537.48

599.93

550.21

Wool & Woolen textiles

7.63

6.84

7.77

Silk Products

13.79

20.2

26.65

Carpets

733.24

808.01

774.76

Jute Products

70.6

70.41

74.8

Total Textile & Clothing

7317.43

7960.16

7916.21

 

Source: DGCIS 

(II) Textile products exported to European Countries:

(In USD mn)

 

2017-18

2018-19

2019-20

Readymade Garment

6444.21

6225.43

5710.68

Cotton Textiles

1582.29

1440.17

1339.95

Man-made textiles

1510.58

1500.26

1336.71

Wool & Woolen textiles

86.99

100.27

81.83

Silk Products

19.31

19.82

15.65

Carpets

413.77

384.95

340.06

Jute Products

89.86

92.52

101.76

Total Textile & Clothing

10147

9763.42

8926.64

 

Source: DGCIS 

 

This information was given in a written reply by the Union Minister of Textiles Smt. Smriti Zubin Irani in Lok Sabha today.

Source: PIB

Back to top

Huge potential to increase exports of manmade fibre garments: AEPC

 There is a huge potential in the country to increase exports of man-made fibre garments and the industry needs to work with the government to push these shipments, the Apparel Export Promotion Council said on Friday. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that "when we started exploring how to increase exports, we found that the export of man-made fibre garments is only 10 per cent of our total exports". It is hardly USD 1.6 billion whereas the world trade is about USD 200 billion, he added.  "We have a lot of fibre and yarn but we are not able to make the best fabric out of India. So, to increase our share in the global MMF (manmade fibre) garments business we have initiated a dialogue with Synthetic and Rayon Textiles Export Promotion Council (SRTEPC)," he said in a statement. He added that AEPC will host a series of webinars on how to increase the export of MMF garments. Ronak Rughani, Chairman, SRTEPC, said that while cotton was the primary fibre for universal usage, MMF has surpassed cotton as the dominant fibre since the mid-1990s and has continued to grow faster thereafter as compared to all other fibres. "The domestic fibre consumption ratio in India at present is 40:60 between manmade fibres and natural fibres, which is almost opposite to the global fibre

Source: Outlook India

Back to top

1,100 indigenous PPE kit makers developed by govt till date: Smriti Irani

From zero manufacturers in March this year, as many as 1,100 indigenous manufacturers of PPE kits have been developed by the government till date and most of them are from the MSME sector. In a written reply to the Lok Sabha, Textiles Minister Smriti Irani said, the capacity and production of PPE coveralls for COVID-19 touched a peak of 5 lakh per day in mid-May 2020. As on September 13, a total of 1.42 crore PPE kits have been supplied to HLL Lifecare Ltd, the procurement arm of Ministry of Health and Family Welfare, for the use of health professionals in government hospitals. Similarly, domestic manufacturers of N-95 masks were encouraged during the lockdown period and as a result, a total of 2.46 crore N-95 masks have been supplied to HLL Lifecare Ltd as on 13th September. In a separate reply, the Minister said that from 28th July to 24th August, the exports of PPE coveralls were allowed under quantity restriction limited to 50 lakh per month.

Source: All India Radio

Back to top

Lok Sabha passes bill to amend Factoring Regulation Act to support MSMEs

Lok Sabha on Sunday passed a bill to amend the Factoring Regulation Act that seeks to help micro, small and medium enterprises by providing additional avenues for getting credit facility. The Factoring Regulation (Amendment) Bill, which was introduced on September 14, was passed by voice vote after a brief discussion.The Factoring Regulation Act, 2011 was enacted to provide for regulating the assignment of receivables to factors, registration of factors carrying on factoring business and the rights and obligations of parties to the contract for assignment of receivables. Minister of State for Finance Anurag Thakur said it would greatly help the financial system. "The amendments are expected to help micro, small and medium enterprises significantly by providing added avenues for getting credit facility, especially through Trade Receivables Discounting System."Increase in the availability of working capital may lead to growth in the business of the micro, small and medium enterprises sector and also boost employment in the country," according to Statement of Objects and Reasons of the bill.

Source: Business Standard

Back to top

States that don't choose one of Centre's borrowing options may not get GST dues till June 2022

NEW DELHI: Any state that does not choose one of the borrowing options offered by the Centre to compensate for the revenue loss on account of goods and services tax (GST) transition may have to wait till June 2022 to get compensation, a senior government official has said. As many as 21 states have backed the first option, entailing Rs 97,000 crore borrowing, more than the requisite number needed to pass a resolution in the GST Council if it is put to vote. This is bound to put pressure on the Opposition-ruled states, which have rejected both the options. “If the other states do not submit their options before the due GST Council meet, they will have to wait till June 2022 to get their compensation dues subject to the condition that the GST Council extends the cess collection period beyond 2022,” an official said. The Centre had offered two borrowing options to the states at a specially convened Council meeting on August 27. In the first option, the borrowing amount is equivalent to revenue loss estimated on account of GST transition that can be borrowed from a special central bank facility. Principal and interest in the first option is to be serviced by the compensation cess. In the second option, states will have to borrow Rs 2.35 lakh crore, entailing revenue loss due to GST transition as also Covid-19 induced slowdown, from the market, facilitated by the Centre and RBI. However, the states would have to bear the interest burden. Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura, Uttarakhand and Uttar Pradesh have opted for borrowing Rs 97,000 crore, the official said. Manipur, which had earlier chosen the second option of borrowing Rs 2.35 lakh crore, changed its preference to the first option. Opposition-led states of Jharkhand, Kerala, Maharashtra, Delhi, Punjab, Rajasthan, Tamil Nadu, Telangana, and West Bengal have rejected both options, and have sought the Prime Minister’s intervention.  Over Rs 1.5 lakh crore as GST compensation is pending to wardsstates for the period April-July, 2020, as the cess collected in the current financial year was insufficient to pay the dues.
 

Source: Economic Times

Back to top

Steps to Promote Export during Pandemic

Since March 2020, during COVID-19 pandemic, regular meetings were held with the Export Promotion Councils (EPCs), Chambers of Commerce and Industry, Industry bodies and Associations to discuss issues and problems faced by the exporters and ways to promote exports during the pandemic. The issues raised by them were taken up with the concerned Ministries/Departments for an early redressal. Government has taken the following key steps to boost exports:

  1. The validity of Foreign Trade Policy (2015-20) extended by one year i.e. upto 31-3- 2021 and relaxations granted and time lines extended due to COVID-19. Extension of export obligation period in respect of Advance Authorizations and Export Promotion Capital Goods (EPCG) authorizations under Foreign Trade Policy (FTP), extension of Letter of Permissions (LoP) / Letter of Intents (LoI) of Export Oriented Units, various relaxations to SEZ units as a measure to make them functional and to ease compliances and simplification and liberalization of procedures of trade remedial investigations.
  2. Interest Equalization Scheme on pre and post shipment rupee export credit has been extended by one year i.e. upto 31-3-2021.
  3. Line Ministries have notified various sectoral incentive packages, such as Production Linked Incentive Scheme (PLI) by Ministry of Electronics and Information Technology (MeitY) and PLI Scheme by Department of Pharma for Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
  4. Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase the Free Trade Agreements utilization by exporters.
  5. A comprehensive “Agriculture Export Policy” is under implementation to provide an impetus to agricultural exports related to agriculture, horticulture, animal husbandry, fisheries and food processing sectors.
  6. Promoting and diversifying services exports by pursuing specific action plans for the 12 Champion Services Sectors.
  7. Promoting districts as export hubs by identifying products with export potential in the District, addressing bottlenecks for exporting these products, supporting local exporters/manufacturers to scale and generate employment in the District.
  8. Strengthening eco-system for adoption / implementation of mandatory technical standards for goods, services and skilling.
  9. Energising Indian missions abroad towards promoting our Trade, Tourism, Technology and Investment goals.
  10. Package announced to support domestic industry, including through various banking and financial sector relief measures, especially for Micro, Small & Medium Enterprises (MSMEs), which constitute a major share in exports. This information was given by the Union Minister of Commerce and Industry, Shri Piyush Goyal, in a written reply in the Rajya Sabha today.

Source: PIB

Back to top

Bill seeking to amend FCRA introduced in LS

A Bill that seeks to amend the Foreign Contribution (Regulation) Act (FCRA), under which providing the Aadhaar numbers of the office-bearers of any NGO will be mandatory for registration and public servants will be barred from receiving funds from abroad, was introduced in the Lok Sabha on Sunday. The Foreign Contribution Regulation (Amendment) Bill 2020, introduced in the Lok Sabha by Minister of State for Home Nityanand Rai, also proposes to enable the Centre to allow an NGO or association to surrender its FCRA certificate. 

Source: Business Standard

Back to top

Tax Bill to expand faceless assessment scheme, provide relief to taxpayers

The Lok Sabha has passed a taxation Bill aimed at expanding the faceless assessment scheme and to provide compliance-related relief to taxpayers. The legislation includes extension of deadlines for return filing and linking of PAN and Aadhaar. The Bill was passed by a voice vote after stiff opposition on issues pertaining to tax treatment and transparency of PM Cares Fund and the GST compensation issue. The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, will replace the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 promulgated in March under which time limits for statutory compliances under goods and services tax, and income tax act were extended in the wake of the Covid-19 pandemic. The legislation provides tax exemption for contributions made to PM-CARES Fund, which was set up in March. Besides, it makes faceless assessment applicable to at least 8 processes under the IT Act, including assessment, collection and recovery of tax, appeals, revisions, gathering of information, etc. With the amendment, transfer pricing assessments and litigation, and dispute resolution panel have been brought under the faceless scheme. Finance Minister Nirmala Sitharaman said that faceless assessments and appeals will bring in tax transparency and bring an end to tax terrorism using technology. “We’re bringing in tax transparency through law because it is extremely important for the country,” she said. The sunset clause for claiming a tax holiday for already approved special economic zones units has been extended by another year to March 31, 2021.The amendments also bring relief to foreign investors as surcharge levied on the dividend income of foreign portfolio investors (FPIs) that use a trust structure has been capped at 15%. Besides, tax exemption will be provided on the income of category III Alternate Investment Funds in the International Financial Services Centre from masala bonds, derivatives or overseas investments from April 1, 2020. Sitharaman said that the amendments have been introduced to further strengthen the IFSC and it should not be viewed negatively. A lower rate of interest and exemption from penalty or prosecution has been provided in case of delayed payments of Equalisation Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) besides advance tax, TDS and TCS. The Act was amended to also extend the payment date under the Direct Tax Vivad se Vishwas Act, 2020 without additional amount to 31st December, 2020. Sitharaman added that amendments under the Central GST Act were also limited to extending deadlines for compliance, tax payments and filing, and had no bearing on the compensation payments to states.“The compliances under Central GST have been extended as well, therefore an amendment was needed, which has been done after GST Council’s recommendation,” she said, adding that the retrospective effect of the Act was limited to a period starting from March 20 - when the Council gave its approval– since the notification was issued in April. Let me clarify, this provision will not affect compensation payment to states in any way,” she added. Trinamool Congress leader Mahua Moitra launched an attack on the PM Cares Fund and Centre’s stand on GST compensation to states. While PM Cares fund provides 100 per cent tax exemption, contributions to state chief minister relief funds do not enjoy that, resulting in unfair treatment of identical contributions to the two funds, pointed out Moitra. “This is against public interest, against public policy, completely disincentivises corporate contributions which the state governments otherwise would have got,” said the TMC MP. On the GST compensation, Moitra said that the Centre cannot run away from its responsibility and must cover up Rs 2.35 trillion by borrowing. “I ask myself in such a situation: is incompetence post majeure (an event or effect that can be neither anticipated, nor controlled)? Is criminal negligence post majeure?”
 

Source: Business Standard

Back to top

Government garners Rs 9,538 crore from direct tax dispute resolution scheme so far
 

New Delhi: The government has collected Rs 9,538 crore revenue from the Direct Tax Vivad Se Vishwas scheme, Parliament was informed on Sunday. Minister of State for Finance Anurag Singh Thakur said as many as 35,074 declarations have been filed under the Direct Tax Vivad Se Vishwas scheme till September 8, 2020.
"The revenue generated till date through the (Direct Tax Vivad Se Vishwas) Act is Rs 9,538 crore. This figure does not include the payments made by the taxpayers who are yet to file their declarations under the scheme," Thakur said in a written reply in the Rajya Sabha.  Finance Minister Nirmala Sitharaman had proposed the direct tax dispute resolution scheme, which provides opportunity to taxpayers to pay outstanding taxes and get waiver of interest and penalty, in her Union Budget speech on February 1. In March, Parliament passed the Direct Tax Vivad Se Vishwas Act. The dispute resolution scheme is valid till December 31, 2020. Under the scheme, taxpayers willing to settle disputes shall be allowed a complete waiver of interest and penalty if they pay the entire amount of tax in dispute by December 31, 2020.  As many as 4.83 lakh direct tax cases involving Rs 9.32 lakh crore in disputed taxes are locked in various appellate forums. The amount is equivalent to 82 per cent of the government's direct tax revenue in FY2018-19.
 

Source: Economic Times

Back to top

Effects of Covid-19 Pandemic on Textile Sector

The global pandemic of Covid-19 has affected the existing modus operandi of various textile sectors by posting restriction of social gathering, migration of laborers as well as affecting all the stakeholders right from farmers to traders/exporters in the value chain of textile sector and at the same time it has opened new window of opportunities which were previously less explored. The government has conducted a study viz. ‘Impact of Covid-19 pandemic on Indian silk industry’ to ascertain the crisis caused to the sector. It has been observed that there was a production decline and monetary loss at every stage of the value chain. The industry has faced various problems like loss in production, crash in cocoon and raw silk prices, transportation problem, non-availability of skilled workers, problems in selling raw silk and silk products, working capital and cash flow problems, non-availability of raw materials, reduction in demand for silk fabric, cancellation of export/import orders besides export and import restrictions. Since, textile sector being highly unorganized sector therefore, the government has not made any formal assessment with regard to the losses incurred by the sector. To withstand in COVID 19 pandemic, the Government of India has announced a special economic package viz. AatmaNirbhar Bharat Abhiyaan for boosting economy of the country and making India self-reliant. Relief and credit support measures have been announced for various sectors including MSMEs.The weavers & artisans/karigars can avail benefits of these relief and credit support measures to revive their businesses which have suffered due to lock down necessitated by Covid-19 pandemic. Taking a step towards realizing “Atmanirbhar Bharat”, Handloom Export Promotion Council has endeavoured to virtually connect the Handloom Weavers and exporters from different corners of the country with the International Market. With more than 200 participants from different regions of the country showcasing their products with unique designs and skills, THE INDIAN TEXTILE SOURCING FAIR was organised on 7, 10 and 11th August. The show has already attracted considerable attention of the International Buyers. In order to support the handloom and handicraft sectors and to enable wider market for handloom weavers/artisans/producers, steps have been taken to on-board weavers/artisans on Government e-Market place (GeM) to enable them to sell their products directly to various Government departments and organizations. A social media campaign #Vocal 4 handmade was launched on the 6th National Handloom Day by the Government, in partnership with all stakeholders, to promote the handloom legacy of India and to ensure people’s support for the weaving community. The Chief Ministers of all States and UTs have been requested to instruct their State Handloom Corporations/Co-operatives/Agencies to make purchases of the finished inventory available with the handloom weavers/artisans so as to put some ready cash in the hands of the weavers to enable them meet their household needs. To deal with the pandemic crisis, the Government endeavours to provide online marketing opportunities to our weavers and handloom producers. Chaupals/e-Chaupals have been organised in weavers concentrated areas by the Weavers’ Service Centres (WSCs) across the country to create awareness amongst the handloom weavers about the schemes of Government of India and to facilitate them. Further, to promote e-marketing of handloom products, a policy frame work has been designed under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products. Government is implementing various policy initiatives and schemes for supporting the development of textile industry. These schemes and initiatives which promote technology upgradation, creation of infrastructure, skill development and sectoral development in the textile sector, create a conducive environment and provide enabling conditions for textile manufacturing in the country. Thus, government of India only facilitates the textile industry for development and modernization by providing subsidy on investments made under various Schemes. Funds are released to achieve the desired objectives under various schemes on year to year basis. The textile agencies/organisations in the States involved in textile activities are the beneficiary agencies of above schemes. Proposals of eligible beneficiary agencies duly recommended by the State Directorate of textiles are considered for financial assistance as per the guidelines of the schemes. This information was given in a written reply by the Union Minister of Textiles, Smt. Smriti Zubin Irani in Lok Sabha today.

Source: PIB

Back to top

COVID-19 provides opportunity to India, Japan to further strengthen ties: Report

NEW DELHI: The COVID- 19 pandemic has provided a unique opportunity to both India and Japan to further strengthen economic ties by enhancing cooperation in areas like software development, modern technology, infrastructure and manufacturing, according to a report. The report, prepared by Shardul Amarchand Mangaldas and FICCI, also said that Japan has always treated India as a preferred partner in terms of economics, trade and commerce.  " COVID- 19 pandemic has provided great opportunities for the two nations and its businesses to join hands and forge a new alliance in terms of harvesting the fruits of demographic dividend that India provides, and push India towards becoming a major global manufacturing hub amidst the changing economic atmosphere," it said. The Japanese business community is upbeat about its investments and ventures in India, it said adding Japan continues to be the fourth largest investor in India. It suggested that policy reforms are required in India to bring in greater synergies and reap the benefits of the de-risking activities being undertaken by Japanese companies to move their supply chains out of China to countries like India, Vietnam, Thailand, Indonesia, Malaysia and Myanmar.  Shardul S Shroff, Executive Chairman and National Practice Head - Insolvency and Bankruptcy, Shardul Amarchand Mangaldas & Co, said, "We need to look at the pandemic as an opportunity to bring India and Japan's economic relationship closer”. He said that the Indian economy holds the potential to bounce back quickly on the back of a slew of fiscal and economic measures undertaken by the government such as reduction in corporate tax rates, further reforms in the GST regime, revamping labour laws, taking measures to ensure ease of doing business, to attract foreign investment.  "While the Indian government has taken plethora of measures and policy decisions to make India an investor friendly destination for the Japanese business community, a lot more needs to be done to meet the new challenges posed by the pandemic and to harvest the investor sentiments looking for safe investment destinations," he added.  Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas & Co said that the technological and economic prowess of Japan coupled with India's strengths in manufacturing, skilled workforce and its large domestic markets will further strengthen the relationship between India and Japan. The report recommended certain steps such as simplification of the form to incorporate a new company and appoint directors, ensuring easy customs clearance procedures, and immediate refunds of GST credit related to exports.

Source: Economic Times

Back to top

Covid blues: Govt’s liabilities jump 7% in June quarter

The government’s total liabilities rose by a steep 7.1%, or Rs 6.73 lakh crore, in the AprilJune period to over Rs 101.35 lakh crore, against a 0.8% increase in the previous quarter, a finance ministry report said on Friday, reflecting the enormous pressure the Covid-19 pandemic exerted on government finances. As of end-March, the total liabilities, which also include the liabilities under the ‘Public Account’, stood at Rs 94.62 lakh crore. To tide over the deficit caused by a fall in revenue collection during the pandemic, the Centre issued dated securities aggregating to Rs 3,46,000 crore in the June quarter, much higher than the Rs 2,21,000 crore a year before, showed the finance ministry’s quarterly report on debt management. However, the weighted average yield of primary issuances showed a sharp fall to 5.85% in the April-June period, compared with 6.7% in the March quarter. This reflected the impact of several developments, such as a sharp decline in crude oil prices in April, reduction in the repo rate by 40 basis points to 4% by the Monetary Policy Committee on May 22 and surplus liquidity conditions in the market. The weighted average maturity of new issuances of dated securities was lower at 14.61 years in the June quarter, against 16.87 years in the previous three months. Public debt made up for 91.1% of total outstanding liabilities at the end of June. Nearly 28.6% of the outstanding dated securities had a residual maturity of less than 5 years. The ownership pattern indicates a share of 39% for commercial banks and 26.2% for insurance companies at end-June. The Reserve Bank of India conducted one special open market operation involving simultaneous purchase and sale of government securities for Rs 10,000 crore each during the quarter ended June 2020. “The net average liquidity absorption by RBI under Liquidity Adjustment Facility (LAF), including Marginal Standing Facility and Special Liquidity Facility, was Rs 4,51,045 crore during the quarter,” the report said. Central government dated securities continued to account for a major share of total trading volumes in the secondary market with a share of 74% in total outright trading volumes in value terms during the June quarter, the report said.

Source: Financial Express

Back to top

Bareilly to have Textile Park soon: Adityanath

Lucknow, Sep 20 (PTI) Uttar Pradesh Chief Minister Yogi Adityanath on Sunday said Bareilly will soon have a textile park. According to an official statement, the CM said all hurdles in this regard have been removed and the work is likely to commence soon. He said this while reviewing development work of Bareilly division. The division comprises Bareilly, Pilibhit, Badaun and Shahjahanpur districts. Adityanath said all districts of the division have rich social-cultural resoures, which hold great potential for development.  The Smart City project of Bareilly should be executed in an expeditious manner so that it sets an example, he said, directing to speed up road projects. Adityanath told officials that no road project should remain pending, especially in Pilibhit, a border district. There are 14 ongoing projects worth over Rs 50 crore each in the division, of which 10 are in Bareilly, two in Pilibhit, one each in Badaun and Shahjahanpur districts, the statement said. In addition to this, eight road projects of over Rs 50 crore each are in progress in the division, it said. The Bareilly division was praised for effective control of COVID-19. The CM, however, cautioned against lowering the guard and said for the next six months, precaution is a must. 

Source: Outlook

Back to top

Online faculty development programme at SVNIT

The mechanical department of Sardar Vallabhbhai National Institute of Technology (SVNIT) and Manmade Textile Research Association (MANTRA) have jointly organised a five-day online faculty development programme from September 21 to 25. The topic is ‘Green and Sustainability in Textile Industry’ and is sponsored by the All India Council for Technical Education (AICTE). Chairman of AICTE, professor Anil Shasrabudhe, will be chief guest of the event. Other dignitaries from AICTE, professor M P Poonia, vice-chairman and professor Rajive Kumar, member secretary, will also remain present during the inaugural session. The programme is organised under the AICTE Training and Learning (ATAL) Academy initiative. Over 100 participants from different institutes of the country are likely to attend the programme. Various green technologies in the textile industry will be discussed, with a target of making the industry energy efficient.

Source : Times of India

Back to top

India amends govt procurement norms reciprocal participation, local content requirements upped

The amendment expanded the scope for local content requirement in public procurement tenders and allowed departments and ministries to mandate higher than minimum 50% and 20% local content stipulated earlier for two separate categories of local suppliers India on Friday amended its public procurement rules to bar those entities of countries from participating in government procurement which do not allow Indian companies to participate in their Government procurement. “As per the Order, entities of countries which do not allow Indian companies to participate in their government procurement for any item, shall not be allowed to participate in government procurement in India for all items related to that nodal ministry/department, except for the list of items published by the ministry/department permitting their participation,” the Department for Promotion of Industry and Internal Trade (DPIIT) said in a statement. The amendment also expanded the scope for local content requirement in public procurement tenders and allowed departments and ministries to mandate higher than minimum 50% and 20% local content stipulated earlier for two separate categories of local suppliers. The department on June 4 amended the Public Procurement Order, 2017 and mandated 50% for Class I and 20% for Class II local content requirement for local suppliers, replacing the earlier practice of awarding the tender to the lowest price bidder called L1, in a move to give greater preference to local suppliers, as part of the overarching Aatmanirbhar Bharat mission. “Specifying foreign certifications/ unreasonable technical specifications/ brands/ models in the bid document is restrictive and discriminatory practice against local suppliers,” DPIIT said. The department added that foreign certification, if required, shall be stipulated only with the approval of secretary of the department concerned. Further, all ministries and departments whose procurement exceeds Rs 1,000 crore per annum would have to notify their procurement projections for the next five years.

Source: Economic Times

Back to top

Global Textile Raw Material Price 20-09-2020

Item

Price

Unit

Fluctuation

Date

PSF

803.54

USD/Ton

0%

20-09-2020

VSF

1314.62

USD/Ton

0%

20-09-2020

ASF

1744.46

USD/Ton

0%

20-09-2020

Polyester    POY

731.16

USD/Ton

0%

20-09-2020

Nylon    FDY

1994.09

USD/Ton

0%

20-09-2020

40D    Spandex

4239.28

USD/Ton

0.70%

20-09-2020

Nylon    POY

2237.81

USD/Ton

0%

20-09-2020

Acrylic    Top 3D

5317.56

USD/Ton

0%

20-09-2020

Polyester    FDY

952.73

USD/Ton

0%

20-09-2020

Nylon    DTY

1861.15

USD/Ton

0%

20-09-2020

Viscose    Long Filament

1920.23

USD/Ton

0%

20-09-2020

Polyester    DTY

901.03

USD/Ton

0%

20-09-2020

30S    Spun Rayon Yarn

1776.95

USD/Ton

0%

20-09-2020

32S    Polyester Yarn

1395.86

USD/Ton

0%

20-09-2020

45S    T/C Yarn

2230.42

USD/Ton

0%

20-09-2020

40S    Rayon Yarn

1565.73

USD/Ton

0%

20-09-2020

T/R    Yarn 65/35 32S

2097.48

USD/Ton

0%

20-09-2020

45S    Polyester Yarn

1935.00

USD/Ton

0%

20-09-2020

T/C    Yarn 65/35 32S

1720.82

USD/Ton

0%

20-09-2020

10S    Denim Fabric

1.16

USD/Meter

0%

20-09-2020

32S    Twill Fabric

0.65

USD/Meter

0%

20-09-2020

40S    Combed Poplin

0.95

USD/Meter

0%

20-09-2020

30S    Rayon Fabric

0.48

USD/Meter

0%

20-09-2020

45S    T/C Fabric

0.66

USD/Meter

0%

20-09-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14771 USD dtd. 20/09/2020). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Pakistan's textile sector back at full capacity

KARACHI: Textile industry – the single largest export earning sector of Pakistan – has scaled up productions to pre-Covid-19 level of full-capacity, as a significant improvement in containment of the pandemic in the country led the world buyers to partially divert their orders to domestic manufacturers. The much-needed growth in textile production is, however, achieved through a big jump in the import of basic raw materials – cotton and man-made yarn – after the recent heavy rainfall and pest attack damaged notable portion of cotton crops in the fields to a multi-year low. The share of textile in annual export earnings stands at 60%."Textile industry has revived to pre-Covid-19 level, as precautionary measures to safeguard people from the virus and industry-specific economic measures by the government have helped at length to resume production to full capacity," All Pakistan Textile Mills Association (Apmta) former vice-chairman Asif Inam said while talking to The Express Tribune. He elaborated that the full-capacity production is excluding those textile units which closed down during the crisis. They are few in number and are trying to return to work gradually. However, the number of the affected units remained unknown, he said.  Overall, Pakistan's textile industry is operating exceptionally, in a much better position compared to regional competitors as well. There are world buyers who have diverted their orders to Pakistan from China, India and Bangladesh for different reasons including US-China trade war and halt in production in India with worsening of Covid-19 crisis there. The number of export orders may increase in the time to come with recovery from the pandemic in export countries and regions, including the US and Europe. They are fighting against the second wave of the pandemic, while some of them have again imposed lockdowns to deal with the situation at present. Secondly, the industry recovered on a fast pace with the government's support in the shape of rationalising energy price to a regional competitive level, the continued supply of raw material and subsidised financing for the expansion of production and setting up new units."All these were the long pending demands of the industry to become competitive at the regional and international level. We had put such demands in front of several previous governments time and again, but this government has kept its words and delivered to the industry," Inam added. "I hope the government will continue to support the industry…to achieve the next milestone of going on expansion," he said. "The government should extend the deadline for setting up new textile units on subsidised interest rates for one year, as it expires in March 2021.”

“There are many industrialists considering expansion in production with an increase in export orders.”

Cotton production, import

Pakistan has to import five million bales (of 225 kilograms each), which comes equal to estimated local production of eight million bales (of 150 kilograms each) this year, imports are estimated to cost around $1.8 billion. This is a huge task. “We have just started the imports after coming out of the challenging times under Covid-19. But we are compelled to import cotton after local production remained sluggish for another year," he said. Pakistan saw a jump of almost 1,000% in import of cotton in dollar-term at $67.43 million in August compared to $6.30 million in the same month of last year, according to the Pakistan Bureau of Statistics (PBS). The import of cotton surged 255% in the first two months (July-August) of the current fiscal year 2021. Pakistan Cotton Ginners Association (PCGA) former chairman Dr Jassu Mal Leemani said the recent heavy rainfall has damaged 200,000-300,000 bales in Sindh and another 300,000-400,000 bales damaged in Punjab due to pest and whitefly attack in Punjab. Besides, farmers have sown cotton on the lower area this year due to non-availability of quality seeds for the past several years. The cotton production is on a decline since Pakistan achieved record-high production around 15 million bales in 2015-16, he recalled.

Source: Tribune

Back to top

Indonesia: Ministry eyes 0.40-percent growth pharmaceutical, textile industries

The Industry Ministry has targeted a 0.40-percent growth in the chemical, pharmaceutical, and textile industries in 2020 and contributed 4.2 percent to the national economy after gauging the impact of the COVID-19 pandemic. The ministry's Director General of Chemical, Pharmaceutical and Textile Industry, Muhammad Khayam, noted in a statement here on Friday that the ministry had concentrated efforts to propel industrial performance to contribute significantly to the country's economy. "Recently, we have synchronized the industry's performance target set for 2020 with the real on-field conditions amid the COVID-19 pandemic," Khayam remarked. Khayam spoke of the industry having targeted a growth of 0.40 percent in 2020 and 5.3 percent in 2024. In the second quarter of the year, the industry's contribution had reached 4.5 percent, backed by positive growth of the chemical, pharmaceutical, and traditional medicine industry, at 8.65 percent, when the economy contracted 5.32 percent. Khayam elaborated that in the second. US$14.59 billion to the total exports, with investment realization touching Rp32.39 trillion comprising Rp20.06 trillion of foreign investment and Rp12.33 trillion of domestic investment. "Workforce in the sector reached 6.96 million of the total workers in the processing industry at 18.46 million," he stated. The ministry has targeted chemical, pharmaceutical and textile industry exports to reach $34.14 billion in 2020, with realization of investment at Rp84.65 trillion and absorption of 7.37 million workers. "To achieve the target, we have designed five strategic policies of human resource development in industry, development of facilities, industry empowerment, fiscal and non-fiscal facility, and bureaucratic reform," Khayam remarked. Secretary of the Directorate General of Chemical, Pharmaceutical, and Textile Industry Sri Hastuti Nawaningsih highlighted the government’s issuance of some regulations to boost national economic recovery, including application of stringent health protocols while boosting the industry's productivity and utilization. Nawaningsih affirmed that the ministry had reduced imports by 35 percent in 2020 under the government’s endeavors to strengthen the domestic industry. Related news: Ministry commits to strengthening medicine raw material.

Source: Antara News

Back to top