MESSAGE FROM THE CHAIRMAN
It is pleasure to note that markets have started after a long period of covid pandemic which turmoiled the business community. The prevailing scenario shows some signs of improvement in exports. Exports of Manmade yarn, fabrics and made-ups accounted to US$ 1770.77 million during April – July 2021 witnessing a growth of 126.5% as compared to the same period of the previous year. However, compared to the pre-covid period between April-July 2019, exports witnessed a growth of 13.93% during April – July 2021. According to the Ministry of Commerce and Industry, export targets for the MMF textiles falling under the purview of SRTEPC is US$ 6.12 billion for 2021-22. During July 2021 as per the latest provisional data released by the DGCI&S, exports of Manmade fibre Textiles has shown growth by 59% as compared to July 2020.
In a maiden initiative, the Hon’ble Prime Minister Shri. Narendra Modi interacted with stakeholders of the trade & commerce sector and Heads of Indian Missions abroad through video conference on 6th August 2021. The Hon’ble Commerce and Industry Minister, Shri. Piyush Goyal and Hon’ble External Affairs Minister, Dr. Subrahmanyam Jaishankar were also present during the interaction. Besides the members of the Export Promotion Councils, the virtual meeting was also attended by Secretaries of various departments, state government officials, and Chambers of Commerce. Under the mentorship of Shri Dhiraj Shah, Chairman, SRTEPC participated in the virtual meeting with Hon’ble Prime Minister from two viz., Mumbai and Surat, Gujarat. At the which was at Ambassador hotel, was presided over by Shri Bhadresh , Vice-Chairman at Surat, of SRTEPC was at Le Meridian Hotel and it was presided over by Shri. Dhiraj Shah, Chairman, SRTEPC. While addressing the virtual meeting with the industry stakeholders, heads of Indian Missions and others, the Hon’ble Prime Minister informed that this is the time for Azadi ka Amrit Mahotsav. Along with celebrating the 75th festival of independence, this is an opportunity to build a clear vision and roadmap for future India and Export Ambitions for which all the stakeholders play a major role. The SRTEPC Chairman, Shri. Dhiraj Shah, welcomed the Hon’ble Prime Minister Shri. Narendra Modi on behalf of the manmade textile fraternity and congratulated for the initiative to interact with the textile stake holders including the MMF textile fraternity and he also briefed about the current growth in export scenario compared to pre-covid level.
Hon’ble Minister of Textiles, Hon’ble Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, Shri. Piyush Goyal convened a meeting with EPCs, Commodity Boards and Authorities on 19.8.2021 (Thursday) at Hotel Trident in Mumbai to discuss the measures to enhance and increase the exports. Commerce Secretary, Shri. B.V.R Subrahmanyam, DGFT, Shri. Amit Yadav were also present during the Meeting. Shri. Bhadresh , Vice-Chairman, SRTEPC, Shri. S. , Executive Director and Shri K. Baruah, Joint Director participated in the Meeting. The meeting was held in Hybrid mode wherein President/Chairman/ED/DG of EPCs who were invited to participate in the meeting physically and other EPCs/CBs/Authorities who are based outside Mumbai joined the meeting through Video Conference. Vice-Chairman, Shri. Bhadresh informed the Minister about the current export scenario and prevailing challenges in the MMF textiles segment among other submissions.
SRTEPC felicitated Smt. Darshana V. , Minister of State for Textiles and Railways in her constituency, Surat on her taking over charge of the Ministries. Shri. Dhiraj R. Shah, Chairman, SRTEPC gave stock of the industry and requested the Minister to provide guidance and handholding support to the MMF textiles segment. He also appealed for her support in the growth of Indian MMF textiles segment.
As regards the PLI Scheme, I interacted with Shri. Upendra Prasad Singh, Secretary Textiles during a Virtual Meeting and informed him about the resounding appreciation of the Scheme among the Stakeholders which is really going to boost the production and exports of MMF Garments, MMF Fabrics and Technical Textiles. thanked him for consideration of the fabrics segment in the PLI Scheme. Various submissions of our member-exporters were put forward for consideration. Some leading member-exporters such as Reliance Industries Ltd., Syntex, Century Enka, Prafful Overseas Pvt. Ltd., Welspun Group among others have shown interest in investment under the PLI Scheme. Requested for an appeal for consideration on all the said issues.
The Council organized a Webinar on opportunities in post pandemic Covid - 19 and latest GST issues on 30th July 2021 and deliberated on two currently important topics, viz., Emerging trends and opportunities in MMF textiles post pandemic Covid - 19 and Responding to the Departmental Audits and Notices relating to refund claims viz., DBK, Excise, GST/IGST, Issues arising out of latest decisions & changes etc. The Webinar was quite enlightening for our to understand the latest market scenario and emerging areas of opportunity and as well, clarify their doubts on GST/IGST, refunds, latest notifications, etc.
SRTEPC celebrated India’s Handloom heritage under the guidance of our Hon’ble Prime Minister, Shri. Narendra Modi, Hon’ble Minister of Textiles, Shri. Piyush Goyal and Minister of State for Textiles, Smt. Darshana . In the 75th year of Independence Day, PMO, Shri. Narendra Modi urged all of us to buy handloom products and grandeur by associating with My Handloom . On the occasion, Shri. Shah the illustrious “Art of Weaving” - a signature of India’s Handloom heritage and saluted the expert hands, intricate designs, astonishing varieties, timeless tradition under the guidance of Modi Ji, Goyal Ji and Madam. Shri. Shah expressed gratitude towards the weavers of India its Celebration Day.
The Council participated in New York City / Apparel Sourcing New York City / Home Textile Sourcing Fair in USA scheduled from 20th to 22nd July 2021 on digital platform successfully, wherein 12 member-companies of the Council participated in the Fair.
Friends, the much-awaited Rates have finally been notified on 17th August 2021 with suitable guidelines. A WTO Compliant Scheme is going to be a long-lasting Scheme, which will come as a huge relief for exporters and remove uncertainty from the minds of the Trade thereby forging new contracts with the foreign buyers. This Scheme would give a boost to Indian exports, making our products more competitive globally. Scheme aims to refund, currently un-refunded duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product; and such indirect duties/ taxes/ levies in respect of distribution of exported products. The MMF Textile value chain from Chapters 54 – 60 are covered under the while RoSCTL will cover Chapters 61 – 63. In this regard, I express my sincere gratitude to the Prime Minister, the Ministry of Commerce & Industry, Textiles and Finance. I would also like to thank our members for their kind co-operation and support in substantiating the data, as and when required by the Council.
The Council is extremely grateful to the DGFT for further extending the period for IEC till 31st 2021. I once again urge all our members to update their IEC within the prescribed time limit to avoid IEC deactivation.
I would also like to thank the Sahar Air Cargo Complex and JNCH for acting quickly in releasing the pending Duty Drawback claims and IGST refunds of our members. The continuous follow-ups made by our Council’s team in representing unresolved issues with the concerned authority is too appreciated.
The Council continues to draw attention of the government towards the various representations received from our members pointing out the difficulties faced by them on procedural and policy issues. Looking forward to hearing your issues, kindly write to us at email@example.com and firstname.lastname@example.org.
As you are aware, the Government seeks suggestions on Pre-Budget Proposals from the EPCs/ members of Trade every year for inclusion in the Budget. Likewise, this year the Department of Commerce has sought suggestions/inputs on Pre-Budget Proposals 2022-23. The Council has sent a communication to our members in this regard. Members are requested to please co-operate and send your suggestions/inputs in the required format to the Council at email@example.com, firstname.lastname@example.org, email@example.com & by 31st 2021.
We are pleased to inform you that the Council is organizing its Annual Export Award Function in the last week of September 2021(tentative) to recognize and the outstanding performance of its member exporters for the financial years 2019-2020 & 2020-2021.
The Council is organizing participation of its members in Expo in Kiev, Ukraine from 6 to 9 October 2021 under the MAI Scheme with the support of Ministry of Commerce & Industry and Ministry of Textiles, Govt. of India with a participation of 15 member-companies. I request interested members to send their Application Form to the Council.
I request all Members to renew their Membership with the Council to avail all its benefits, if at all it is not renewed.
DHIRAJ RAICHAND SHAH
Friends, hope you all are safe and doing well!
As due to the ongoing Covid pandemic, the exports of textiles has been severely affected and observed a decline in MMF textiles. The estimated exports of Manmade Fibre textiles during April 2020 to March 2021 shows a decline of – 19% as compared to the previous year. There has been fall in exports of all the four segments of MMF textiles, such as fibre -28%, yarn – 15%, fabrics – 18% and made-ups - 23%.
Though the current export scenario is not much encouraging still due to the ongoing second wave of pandemic, it is believed to get normalized in next few months. I would like to convey to our members to not to dishearten themselves due to the current crisis – as textile industry will boom up once it is normalized.
The Council is putting all its efforts to resolve exporters trade related issues with the Ministry. As the exporting community is greatly affected, Commerce Ministry had organized interactive meeting with Shri. Piyush Goyal, Hon’ble Minister of commerce & Industry through video conference.
Shri Amit Yadav, Director General of Foreign Trade welcomed Shri. Piyush Goyal, Hon’ble Minister of Commerce & Industry, Shri. Anup Wadhawan, Commerce Secretary and the delegates of all EPCs.
Commerce Secretary in his opening remarks stated that in spite of initial setback, overall export performance during 2020-21 was reasonably well and thereafter, requested all EPCs to raise their views/points in brief. All EPCs including SRTEPC have presented the issues related to their respective sectors. Immediate Past Chairman, Shri. Ronakk Rughani, Executive Director, Shri. S. Balaraju and myself attended the Webinar.
Myself and Shri. Ronakk Rughani, Immediate Past Chairman SRTEPC presented the following points related to exports of MMF Textile during the Meeting and requested to consider the issues favourably:
Double weightage to be given for the smaller exporters while considering merits for status as Star Export Houses.
Extend EPCG Scheme in the new FTP.
Threshold limit of the proposed PLI Scheme be fixed at 20% and include entire MMF textile value chain under the Scheme.
Timely refund the IGST and DBK benefits.
Release the MEIS rewards to the exporters.
Announce the RoDTEP rates and include entire MMF textile value chain under the Scheme.
Extend the Interest Equalisation Scheme till announcement of the new FTP.
Rectify the Inverted Duty Structure existing in the MMF textile Segment.
Bring down the Skyrocketing freight charges.
Resolve undue transit shipment delay.
Conclude the India – EU FTA.
(Also, a separate representation has been put up to MoC&I on these points in detail.)
Considering the high potential for exports of MMFT products to Germany, the Council had a promising Webinar with Consulate General of India Munich, Germany to discuss the possibilities of holding a buyer seller meet between Indian exporters & German buyers. The meeting was attended by the Consul General Mr. Mohit Yadav, Shri. N. Ramakrishnan – Consul (C.I.P) and Ms. Mirella Fuchs (Commercial) from the Consulate General of India and Shri. S. Balaraju, Executive Director and other officers from SRTEPC. The Council also updated the Indian mission about its plans to participate in Heimtextil exhibition to be held in Frankfurt, Germany from 11 to 14 January 2022, which is one of the biggest and most prominent international events for home textiles.
The Council continues to receive grievances from members regarding non-receipt of Drawback claims, IGST refunds and clearance of shipments from the Customs. I am pleased to inform you that many of our member-exporters have received their part payment of IGST claims from the CBIC, and also their pending Duty Drawback claims from Sahar Air Cargo Customs and Jawaharlal Nehru Customs House.
In another case, the Council sent a clarification to the Customs on the genuineness of the GST Paid Certificate issued to our member exporter since their shipments stuck at the Customs. On receipt of the confirmation from the Council, the Customs cleared their shipments. In this connection, I am grateful to the CBIC and Customs for their continued support in resolving the issues of our member-exporters, and also, appreciate the efforts undertaken by our Council’s team in taking up the matters with the authorities rigorously.
I request all Members to renew their Membership with the Council to avail all its benefits, if at all it is not renewed.
Dhiraj Raichand Shah
It is indeed a privilege for me to take over as the Chairman of the Council. I thank each Member of the Committee of Administration of the Council individually for reposing their trust in me.
I appreciate the efforts being undertaken by the Government of India for the safety of the people during the on-going pandemic. However, exporters have been facing challenges due to the closure of their offices like complying with the delivery schedules and other compliances. Subsequent to the lockdown/curfew guidelines as announced on 4th April, 2021, the Council had requested the Government of Maharashtra to allow 25% of the workforce in private offices of Maharashtra and considering exports sector as Essential Services. Thereafter, Export/Import of all commodities has been included in the List of Essential Services as per Order dated 13th April, 2021. In this regard, I would like to extend my sincere thanks to the Government of Maharashtra and also, request to hear the plea of the exporters for allowing private offices to work with 25% of the sanctioned strength.
The Council continues to receive representations from our members on various issues, all such issues are taken up with the Department and are also being suitably addressed. Further, we are grateful to Air Cargo Complex (Sahar) for disbursing the long pending Duty Drawback claims of two of our member–exporters. I thank the Officials of Air Cargo Complex for doing the needful and also, appreciate the concerted efforts undertaken by our Council’s team in rigorously following up with the matter.
Friends, the Council over the years has been striving hard to make its presence visible and its role relevant for the benefit of the Man Made Fibre Textile Industry. Though the pandemic time has been really challenging and testing period for all of us, there is tremendous scope to enhance our exports of MMF Textiles. It would be the endeavour of the Council to face the tough challenges ahead and exploit the emerging opportunities to carve out a greater share in the global MMF textile market and contribute increasingly to the national exports by targeting newer and potential markets in the coming years through Export Promotional Programmes and scale up exports to greater heights. To accomplish this goal, I seek wholehearted co-operation and staunch support from all the Members and particularly the Members of the Committee of Administration. I also request your active and more involved participation in large numbers in Council’s events to make it highly successful. I request all Members to renew their Membership with the Council to avail all the benefits of the Council.
It will be my earnest efforts to put forth the problems of the Members from all sections in every way and voice their concerns on all fronts with the various authorities at the appropriate level for solutions.
I take this opportunity to congratulate Shri. Ronakk Rughani, the outgoing Chairman and recall his unstinting support with deep gratitude. The Council has benefited from his foresighted actions and hard work during his tenure and also seek his active and continued support and association in all our future efforts to take exports of MMF textiles further to newer heights.
I seek suggestions and views from the Members so that the activities of the Council can be further
improved for their benefits.
Dhiraj Raichand Shah