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The Rs 6,000-crore special package announced in 2016 for the textiles and apparel sector generated extra investment of around Rs 2,500 crore and additional employment of around 1 lakh in the first twelve months of its rollout, a report said today.
The findings of the survey conducted by the Apparel Export Promotion Council (AEPC) also suggested that Remission of State Levies (RoSL) had a positive impact on the garment industry. After the implementation of the RoSL in September, 2016, India’s readymade garment (RMG) exports increased by 2.7 per cent in value terms and grown by 6.4 per cent in volume terms,”AEPC said.
“The Special Package for textiles has not only boosted exports but has also helped in increasing the investments,” it added. “RoSL has been a well thought out scheme, which had a positive impact on the garment industry. There is direct correlation between release of RoSL to exporters vis-a-vis increase of India’s RMG exports.
Though demonetisation and Goods and Services Tax (GST) roll out has temporarily slowed down the industry, the positive impact of RoSL is expected to bring results in 2018-19, as the industry settles down, post GST roll out,” HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) said.
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The rupee sank below 67-mark against the US dollar on Monday, prompting economists to forecast its fall to 70 within this calendar year.
They are expecting the rupee to tumble to the 70 level if crude prices continued to climb up and India’s trade balance with the US deteriorated further.
D K Srivastava, chief policy advisor, EY India told DNA Money that he sees rupee stabilising at 70 in a quarter or so, with US pressure on India’s trade and crude likely to soar more.
“I would presume it (rupee) would stabilise around 70 (against the US dollar). It would take a little while for it to reach that mark – at least a quarter or so. This would be due to US pressure on both India and China. China is facing a trade deficit in this quarter with US while India’s trade balance with US is also deteriorating,” he said.
Richa Gupta, senior director and senior economist, Deloitte India, did not expect the rupee to hover around 70-mark for long.
According to her, the Indian currency is likely to be in the range of 65-68 in the current year.
“We don’t expect it to stay at 70, even if it goes there. There will be a correction, and then it (rupee) will come down again. It will probably remain in the range of 65-68. It may go down to 70 because the crude is rising and the dollar is strengthening. It may go down to 70 but that rate will hurt imports and therefore there might be a correction. This is our expectation,” she said.
The rupee plunged to a 15-month low on Monday at 67.14 against the US dollar, down over 27 paise from its previous close of 66.87 per US dollar. It slipped to that level on rising global crude oil prices and a stronger dollar.
Several polls on the trend of Indian rupee have revealed that it is likely to breach the 70-mark this year. Deutsche Bank, DBS Bank, Bank of America, Yes Bank, IFA Global and Edelweiss Financial Services reportedly predicted the local currency to hit the 70-mark or fall beyond it.
EY’s Srivastava said India’s relatively low inflation, in general, had till now kept rupee from falling more sharply than it did.
He also believes that if India’s growth further picked up and investment increased then the rupee could appreciate on its own. Srivastava said there were already signs of a robust growth visible in the service sector.
“If India’s growth picks up and investment flows improve, rupee could rise on its own otherwise it would require (central bank) intervention. Growth is robust. Services sector is picking up. There are clear signs through PMI. One has to see whether this can be sustained,” he said.
He also said that improving private investment, not external but internal, could check the fall in rupee to 70 and below.
Deloitte’s Gupta sees a weaker rupee putting a stress on the fiscal deficit target for the current fiscal but she said it would depend on the revenue collection.
According to her, more than fiscal deficit, it would be the current account deficit (CAD) that would be strained due to a depreciated rupee.
She too felt that revival in economic growth would stop the free fall of rupee to some extent.
Gupta said any call by the RBI to intervene would be taken only after studying its impact on the bond market, yields and inflation.
Srivastava was of the view that rupee could be allowed depreciate to more extend; “Right now, the rupee was appreciating out of turn. So, I don’t see the need for invention for some more time. To some more extend, the rupee can be allowed to depreciate”.
Illegal variety of seeds pose threat to crop biodiversity and is also a health hazard
The Field Inspection and Scientific Evaluation Committee (FISEC) constituted by the Department of Biotechnology to investigate the cultivation of unapproved hybrid cotton variety with herbicide-tolerant trait has decided to recommend its eradication, considering its adverse impact on crop biodiversity in the long run.
After collecting samples of the illegal variety of cotton seed, the committee has concluded that it is prevalent in all cotton-growing States in the country and the only viable solution is identifying and destroying the seed at producer, processor, seller and cultivator level, where it is found through field inspection. The high-level meeting was held at New Delhi on Thursday.
The high-level committee is headed by K. Veluthambi and comprises about a dozen officials from Indian Agricultural Research Institute (IARI), Department of Biotechnology (DBT), Central Institute for Cotton Research (CICR), Ministry of Environment, Forests and Climate Change (MoEF&CC), Telangana State Seed and Organic Certification Authority (TSSOCA).
Official sources stated that directions are expected to be issued to States over the next few days. The committee was understood to have expressed its serious concern not only over the threat to biodiversity of cotton and other crops due to proliferation of the herbicide-tolerant gene due to pollination, but also over the emergence of super weeds with excessive use of glyphosate.
Along with raids on seed producers, dealers and retailers to find the illegal cotton seed, Telangana Government has already issued guidelines against the use of glyphosate, a systemic herbicide and crop desiccant – a hygroscopic substance used as a drying agent used to kill weeds, especially annual broad-leaf weeds and grasses that compete with crops.
Asked about the likely impact of HT cotton on biodiversity in the country, Director of TSSOCA K. Keshavulu explained that “herbicide-resistant gene could spread through pollen into the biodiversity system, leading to transformation of weeds into super weeds on a large-scale”. It would not only threaten the growth and yields of all crops in future but would also increase cultivation costs besides causing health hazards to human being and animals.
Officials of the Agriculture Department stated that the task force teams comprising police and agriculture officers had so far seized over 10 tonnes of spurious cotton seed that also includes HT cotton seed during the raids on seed dealers.
Srinagar: At 17, when Imtiyaz Ahmad dropped out of school to learn the skill of weaving Pashmina from his father he was told that weaving earns more money than other jobs.
Now 33, Imtiyaz has been facing a constant struggle in running his household.
“My father had always referred to the times of 1980’s when the pay for making one shawl was rupees 1200. He also said that those in service of government did not earn as much as a weaver did. It is a beautiful skill and I never expected its loss of worth,” he said, reminiscing the olden days.
Craftsmanship in the valley is a blend of historical skill set making every handmade piece unique and famous all over the globe. Hand-woven Pashmina shawl is one such creation. However, in the recent years, the handloom sector has seen a drastic decline in the market affecting the weavers in all ways possible.
The invention of power loom has wiped out most of the handloom’s existence in Jammu and Kashmir, and may soon eradicate it. In a distressing tone, Imtiyaz mentioned the impact of machines on the labourers’ daily life.
“Dealers and manufacturers now prefer machines over humans mainly for their profit. A labourer at the power loom sector receives about rupees 50 for every shawl, while the dealer sells it for the price of a hand-woven pashmina shawl. They do not prefer us solely because of the wage they’d have to pay us as quantity matters more to them than quality. It takes three days to complete one shawl, and the wage we receive is rupees 600 with no increase what-so-ever. Also, whenever I ask for an increase in wage they either say they haven’t sold the shawls yet, or blame it on GST or speak of moving to machines.”
His brother, Khurshid Ahmad, who is also into the same stream, lamented on the implementation of GST in the valley. “After GST came into force here, life has become more difficult. GST hasn’t changed for the manufacturers, dealers, and wholesalers though since they apply GST and get the money while selling them but they tell us that GST has been applied and cannot increase our wage,” Khurshid said.
Nevertheless, the production of power loomed pashminas lack the richness and purity. The public is lured into buying it for its cheaper price, and shine. He believes that the handloom sector will cease to exist in a few years.
The livelihoods of these labourers face constant challenges.
“I’ve tried applying for jobs numerous times, and I’m are still trying. Any job like a delivery boy’s job too would do. I’m skilled in weaving and I don’t have much knowledge in any other field. My brother and I don’t want to pursue weaving anymore. I have two kids and I need to be able to finance their studies. Most of the weavers of pashmina I’ve known left this occupation and joined other jobs to get paid more than before. Some get paid the same amount but they at least don’t have to put so much effort to earn the same. They also get 3-4 days off monthly but for us; we have no holiday at all. Even if we fall sick we have no other choice but to work or we wouldn’t earn the little we do. We are fed up of this work now; any other job seems to be better for us to feed our family,” said Imtiyaz.
The wage is not paid on time. In the case of Imtiyaz, he hasn’t received his wages for five months now.
Work is not the only issue a weaver battles at present; the personal lives of the young and unmarried handloom labourers are predominantly affected. Imtiyaz and Khurshid disclosed the struggles they faced to find a partner.
“No man was willing to give his daughter’s hand in marriage because they feel we don’t earn enough to support the family,” Imtiyaz stated.
New Delhi: All traditional skills need to be formally recognized under Skill Development and proper training needs to be imparted in these work-of-art translating into the further economic growth of the State and its people said Skill Development & Entrepreneurship and Petroleum & Natural Gas Minister Shri Dharmendra Pradhan.Addressing the inaugural session, of the ‘Odisha Skill Conclave’ Shri Pradhan expressed, “Odisha has abundant natural resources and a large coastline. The state has emerged as the most preferred destination for overseas investors, owing to its natural wealth which includes production of one fifth of India’s coal, a quarter of its iron ore, a third of its bauxite reserves and most of the chromite. It has a rich heritage and culture, and is known for its handicraft, handloom and temples. “Skill development is a national dialogue and there have been isolated efforts to promote skill development in the State thus far; but it is our endeavour now to join the dots and have a concrete, comprehensive and collective effort with respect to skill development,” he further added.
In line with the Prime Minister’s vision of “SabkaSaathSabkaVikas”, the Ministry of Skill Development & Entrepreneurship organized Odisha Skill Conclaveat Jatni near Bhubaneswar to define a roadmap to develop Odisha as a skill development & entrepreneurship hub of India. The two-day event has gathered more than 100 experts, industry veterans, academicians and professionals from skill ecosystem to deliberate on challenges and opportunities for skill development in the state.
The galaxy of experts from national/international organizations like NALCO, Indian Oil, Reliance, ACC, Aditya Birla, InternationalLabor Organization among others assembled at the Conclave to discuss the local complexities of the State, weaving the discussion and integrating them into the national skill ecosystem. The sessions on day one, highlighted the key challenges and opportunities that exist in the State, identification of cluster/areas with high demand for skills based on investments, credit off-take and mapping geographical areas of economic activities.
The event gave all participating dignitaries a comprehensive picture of the socio-economic background of the State with respect to its population demographics, proportion of youth, education averages, labour force participation and labour mobility. There are 631 ITIs today in Odisha with a seating capacity of 1, 67,753 and utilization of 54.96%. Approx. 80,000 have been trained under MSDE’s flagship program Pradhan MantriKaushalVikasYojana (PMKVY) 2016-20, which has translated into placement for nearly 50% candidates. Over 1 million people from Odisha have migrated to other parts of the country in search of jobs. Nearly, half of Odisha’s population, is in age groups below 25 years. Only 6% labour force has diplomas, certificates or a graduate-and-above degrees. Odisha’s incremental skill gap for 2011-2026 is expected to be around 4 million. Odisha’s estimated labour demand for 2018-19 is highest in sectors like chemicals, transport, logistics, retail trading, power and healthcare.
The discussions also established that the social aspect should be accounted for while planning skill development programs. The tribal community accounts for nearly 30% of Odisha’s population, the women population and their participation in economic growth, and traditional skill sets in the State all need to be considered for preparing the action plan for Odisha. It was also discussed that there is a need for synergy between those who regulate the laws on specific skills and those who train so that there is a concrete outcome to all training endeavours. Job roles for driver training and tourism guides can secure license from the government.
“India’s private sector has become extremely exploitative, they need to come out of this mind-set which has linkage to the depressed wage across industries and our focus should be on increasing employability and thus reward them appropriately for their contribution. We also need sensitive good quality counselling for the youth and their parents.” said Shri SubrotoBagchi, Chairman, Odisha Skill Development Authority, one of the experts at the conclave.
On this occasion, Shri Pradhan also released a study report on Skill Development & Employability on tribal in Odisha, Chhattisgarh and Jharkhand. The study has been conducted by Functional Vocational Training and Research Society (FVTRS) Bangalore in association with Centre for Youth Skill Development (CYSD), Bhubaneshwar.
‘The day any of these brands decides to manufacture in Sri Lanka or Bangladesh is the day they sign their own death warrants’
An iconic international clothing brand whose co-founder has been a staunch critic of so-called manufacturing “sweatshops” has been sourcing T-shirts from Bangladesh despite advertising that the garments were made in New Zealand.
An investigation by The Spinoff website found that the labels used on WORLD clothing were misleading, and that a second label attached to the inside seam of their t-shirts read, “Made in Bangladesh”. This is despite the co-founder of the proudly New Zealand brand, the designer Dame Denise L’Estrange-Corbet, being a vocal critic of fashion houses who manufacture their products in less developed countries.
The Spinoff reported on Monday that WORLD’s stores in Auckland were stocked with their latest collection, including t-shirts adorned with sequins, and sweatshirts and sweatpants selling for NZ $199 (Tk20,000). The WORLD tag attached to every item read “fabrique en nouvelle-zelande” (Made in New Zealand), but the care instruction labels on the inside of the garments told a different story.
They said the T-shirts are sourced from AS Colour and made in Bangladesh, while the sweatshirts and sweatpants are also purchased from AS Colour but were made in China.
When The Spinoff visited a WORLD they found a sample T-shirt that did have the “Made in Bangladesh” tag on the collar which was identical to AS Colour tags, right down to the reference number which, when put into the US government’s Federal Trade Commission database for textile and clothing manufacturers and importers, linked directly to AS Colour. A spokesperson for AS Colour confirmed WORLD buys clothing wholesale through its online store. “I don’t think it really matters where a blank garment comes from,” the AS Colour spokesperson said. “You get them from manufacturers all around the world. It’s no different from any other surf brand or skate brand.”
The Spinoff reports that WORLD is not just “any other surf brand”, however. In 2015, it became the first fashion label to be endorsed by the United Nations, after developing a logo for the UN’s Sustainable Development Goals. The logo has since been printed and sold on AS Colour t-shirts in WORLD stores, online, and in the gift shop at UN headquarters.
When approached by The Spinoff, L’Estrange-Corbet confirmed WORLD has been selling AS Colour t-shirts made in Bangladesh for “approximately seven years”, adding that the t-shirts “represent 1% of our annual garment production”.
The Spinoff found that at least 12 of the 133 garments being sold via the WORLD website, including the four UN logo t-shirts, were manufactured overseas.
L’Estrange-Corbet said WORLD once made their t-shirts in New Zealand but the factories they used had closed down. “We were unable to manufacture the garments here as there are specialist machinery required,” she wrote. “It was not a decision we took lightly.”
She pointed to AS Colour’s ethical credentials. “Child Labour Free (CLF) strongly supports and endorses AS Colour who are diligently working towards ethical sustainability in the area of supply chain transparency, ethical sourcing/supply and of course, the child labour free certification process.”
L’Estrange-Corbet’s supposed commitment to ethical commerce led her to recently criticize retail behemoths Zara and H&M. She said: “(They) all share the same manufacturing bases, Sri Lanka, India, Bangladesh, Ethiopia, Cambodia, and whilst some of the factories may pay above their countries [sic] legal minimum wage, anyone with a single brain cell can work out, that this is slave labour”.
In an editorial L’Estrange-Corbet wrote for Apparel magazine last year on manufacturing, meanwhile, she talked about how global fast fashion giants had hollowed out artisanal manufacturing worldwide. She lamented what had happened to production in New Zealand, and about the way global luxury brands retained their value by dictating where their products are made. “The day any of these brands decides to manufacture in Sri Lanka or Bangladesh is the day they sign their own death warrants,” she wrote, “and are no longer considered luxury or even desirable.”
New Zealand’s largest textiles supplier is shutting its fashion division – which some local designers say will leave a huge hole in the industry.
The news follows the announcement earlier this year that another company, Cooper Watkinson Textiles, was quitting the industry.
Paul Blomfield, an advocate for the NZ fashion industry, said the loss of textile factories across New Zealand would degrade the variety and choice for local designers’ final products.
“[Local textile suppliers] were great at sourcing small volumes of interesting prints and that would give New Zealand makers the opportunity to make something a bit more exciting,” Mr Blomfield said.
However, the shutdown of local suppliers appears to be another symptom, rather than the cause, of the pressures on the fashion industry, former Pumpkin Patch designer Carly Tolley said.
“I think it’s bigger than New Zealand because Charles Parsons has closed in Australia, their fashion division, so what I think has happened is that New Zealand was just a flow-on from Australia,” Ms Tolley said. “Australia was struggling and we are feeling those effects – the Australian market is probably suffering more than us.”
Local designers relied heavily on the New Zealand-made angle to sell their products as it gave them their own signature, Ms Tolley said.
Several high-profile local fashion labels have closed down recently – women’s label Andrea Moore, menswear brand Meccano and shoe store Minnie Cooper. New Zealand label Maaike’s designer Abby van Shreven spoke to Nine to Noon about the struggles designers faced as they were confronted with a shrinking supply of unique textiles that were locally sourced. “Everyone is trying to be different and when you take away the biggest fabric supplier, does it all start to look the same even more so?” she said.
Ms van Shreven said buying fabric from Charles Parsons was the perfect fit for their needs, in terms of fabric and budget, but now they were having to rethink how to process their textiles.
“For us, we already do our own custom fabrics and we get that printed in China because we can’t find anyone to do it here in New Zealand that can digitally print, and there’s been a few other designers that we’ve shared that contact with,” she said. Mr Blomfield encouraged New Zealanders to buy more locally-produced fashion items instead of switching to online products or buying from mainstream Australian-owned brands to aid the survival of the industry.
‘Industrial climate is poor in State’
Members of the Micro, Small and Medium Enterprises (MSME) across Tamil Nadu have expressed concerns about the deteriorating condition of the sector and are worried that if the government does not prescribe the right measures many units would shift to neighbouring States.
In his letter to Chief Minister Edappadi K. Palaniswami on Saturday, K.V. Kanakambaram, president of The Industrial Estate Manufacturers Association, said: “We are facing a grave situation where many investments which were supposed to come to Tamil Nadu have moved to other States.”
He added that these States were offering special incentives and packages to set up industries there. He requested the government to figure out how to promote large industries, because without big firms the MSME sector would die.
Another industrialist at Ambattur said that many small-scale firms were purchasing land in States like Andhra Pradesh, Telangana and Kerala. “Real estate cost is high in Tamil Nadu when compared to neighbouring States. Infrastructure is becoming a major concern too,” he added.
Experts tracking the sector said that there was no data on the number of units moving out but the trend was quite evident now.
Implementation issues
C.K. Mohan, general secretary, Tamil Nadu Small and Tiny Industries Association (Tanstia), said Tamil Nadu had a good policy in place for this sector but implementation was a concern. “The State government has been doing a lot of work but it is time they think of competitors who are luring companies from here.”
According to Tanstia president C. Babu, the biggest challenge for this sector is that banks are very reluctant to give loans, and the entrepreneurs have to depend on private financiers.
“They eventually end up closing their units due to financial issues,” he said.
Mr. Babu said: “The trend of firms moving to neighbouring States requires immediate attention. The government should ensure that they bring in more big ticket investments, which will help ancillary units in the MSME space.”
Tamil Nadu has over 17.20 lakh registered Micro, Small and Medium Enterprises (MSME) units.
These units produce various products for sectors, including automobile, electronics, engineering, textiles and chemicals.
From December 2015, this sector has been facing several issues – more than 14,000 units suffered losses during the floods.
The following year, many small units in Tamil Nadu were damaged due to Cyclone Vardah. And more recently demonetisation and GST hampered their businesses.
US-based agro major Monsanto Technology on Friday moved the Supreme Court against a Delhi High Court order dismissing its plea to enforce the patent for its BT cotton seeds in India.
An apex court bench comprising justices Rohinton Fali Nariman and Abhay Manohar Sapre will take up the matter on May 7.
The firm moved the apex court against the April 11 order by which its plea was dismissed by the high court, which had partially allowed the counter-claims of three Indian seed companies that Monsanto does not have a patent for its BT cotton seeds, a genetically modified variant which resist bollworms.
The court had also upheld the decision of a single judge on the issue of trait fee payable to Monsanto by the companies — Nuziveedu Seeds Ltd, Prabhat Agri Biotech Ltd and Pravardhan Seeds Private Ltd — under the sub-licence with them.
The single judge had said that the Indian companies would pay trait fees to Monsanto according to government-set rates.
Monsanto wanted to charge a higher rate of trait fee under the sub-licence given to Indian companies to use its seed technology.
Both sides had challenged the single judge’s order before the division bench.
New Delhi, May 6 (PTI) The country needs to relax labour laws and enhance incentives in order to become the preferred sourcing destination in textiles sector, a report submitted to the government said.
The study, commissioned by the textiles ministry and conducted by the Indian Institute of Foreign Trade, suggested strengthening the eco-system for textile exports, integrating fragmented textile value chain and investing in skill upgradation as measures needed to boost India?s sourcing potential.
“Outdated labour laws within the textile sector hampers India from becoming labour competitive. India is not perceived to be a low cost labour destination,” the report said.
The incentives offered in India are far below that offered in China, thereby making Indian products lose out on being price competitive in the global markets, it further suggested.
The report also called for innovation in terms of new products, new business models and collaborations; digitisation of entire supply chain from product development to delivery and ensuring compliances related to quality and legal issues, so that India is recognised for producing world class products.
“IIFT also believes that key to success is encouraging product as well as market diversification for varied textiles & apparel products and clear positioning of Indian Textiles in International Markets,” it said.
According to the study, the poor state of roads and connectivity around weaver hubs have led to reduced number of personal visits by buyers, leading to greater dependence on buying agents.
Moreover, it said, the high import cost of latest machines deter many small manufacturers from upgrading to the latest technology, thereby contributing to compromises on quality.
“India levies a total tax burden to the tune of 23.5 per cent, which includes basic duty, CVD (countervailing duty) and special CVD on the imports of machines in addition to landing charges and additional cess,” the study noted.
On the other hand, governments in China, Vietnam and Bangladesh promote the investments in modern technology by either government investing themselves or by levying duty of around 1-2 per cent, while in Vietnam it is zero per cent, said the report.
Besides, it observed that India?s carpet sector faces a growing threat of depletion of skills and forward dissemination of knowledge to the next generation.
“Low per day wage rate despite the hard work of hand weaving is making this sector financially unviable to the younger generation,” said the report, suggesting to ensure adequate wages by increasing the designer-weaver-buyer connect.
It also suggested setting up vocational courses in carpet weaving so that the craft and skill of Indian handmade carpets is kept intact.
The report also flagged the key issue of poor knowledge about international quality compliances.
“Regular training and skilling about quality issues related to dyes, colours, etc.., must be imparted so that even the most remote weaver or designer is trained with the mindset of being quality conscious for the products developed locally and globally,” the report suggested.
It said the focus should be on promoting niche areas that cover indigenous artisans, weavers and craftsman as they provide a unique identity to the countrys textile output.
