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Surat: After selling one lakh conventional powerlooms in scrap due to adverse impact of Goods and Services Tax (GST) and demonetization in the country’s largest man-made fabric (MMF) hub of Surat, weavers are now beginning to invest in electronic jacquard weaving machines in the hunt for profits. Most of the powerloom weavers in Sachin GIDC and Hojiwala industrial estate in Sachin who either had scrapped mechanical jacquard and powerloom machines or sold them in the market are now shifting to manufacturing on the highly advanced electronic jacquard machines. Over 250 powerloom weavers have applied for subsidy under Technology Upgradation Fund (TUF) scheme for electronic jacquard machines with an estimated investment to the tune of Rs2,000 crore in the next two years.
At present, 1 lakh mechanical jacquard machines manufacture about 25 lakh metres of cloth per day and 9,000 electronic jacquard weaving machines over 1.5 lakh metres of cloth per day. Sachin Weavers Association president Mahendra Ramoliya said, “Electronic jacquard weaving machines are imported from China and Germany and there are indigenous manufacturers as well. When it comes to cost factor, electronic jacquard weaving machines are low cost and give maximum profit. Electronic jacquard weaving machines can manufacture a variety of fabrics ranging from garment, hosiery, sari, dress material, bed sheet and specialized fabric for footwear too.” Ramoliya added, “When one worker can operate four mechanical jacquards, a single worker can operate eight electronic jacquards weaving machines. Also, manufacturing cost is lower by Re1 to Rs1.5 per metre compared to mechanical jacquard.” Raju Patel, a powerloom weaver in Sachin, who has ordered 20 electronic jacquard weaving machines, said, “After GST and demonetization, the condition of weaving sector has deteriorated. We want electronically advanced machines for quality, quantity and to reduce cost.
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Surat: The powerloom weavers have strongly demanded that the central government immediately implement the anti-profiteering committee against the yarn spinners who have increased the prices despite the government lowering the GST from 18% to 12%. Weavers stated that the yarn spinners have formed a cartel and that they are increasing prices every fortnight by Rs 2 to Rs 3 per kg.
Industrialists in the powerloom sector stated that the front and second-line spinners have gone on a spree to increasing prices, which is the main raw material for the weavers. The price hike has come even as there is subdued demand of the polyester fabric across the country and the exports are dwindling.
In January, the spinners had increased the yarn prices by almost Rs 50 per kg in nylon filament yarn and Rs 20 in other categories, giving a tough time to the powerloom weavers.
Talking to TOI, president of Pandesara Weavers Cooperative Society Limited, Ashish Gujarati said, “The GST on yarn has been reduced from 18% to 12%. Instead of passing on the benefit of the rate reduction to the weavers, the spinners are continuously increasing yarn prices every fortnight by Rs 2-3 per kg. The price hike is going on since GST was implemented on July 1” Gujarati added, “We have decided to file a complaint against the yarn spinners before the standing committee of the GST under the anti-profiteering rules.” President of Sachin Weavers Association, Mahendra Ramoliya said, “Yarn is a basic raw material and the increase in prices has severely impacted the powerloom sector. Even though we are investing in modernized machines, but the cost of raw material is bringing down our net profit margins.”
The e-way (electronic way) bill system under GST (Goods and Services Tax) for inter-state movement of goods rolled out on Sunday, the government confirmed. For intra-state movement of goods, the new system would be launched in two weeks’ time, Finance Secretary Hasmukh Adhia announced on Wednesday. According to an IANS report, the e-way bill applies to inter-state transportation of goods worth over Rs. 50,000 through road, railways, airways and vessels. For the smaller value consignments, no e-way bill is mandated.
5 things to know about e-way bill system under GST:
1. According to the report, a single e-way bill applies even in cases of a break in journey to destination and where more than one transporter is involved in the transportation of goods under this system. In such a scenario, Transporter A will assign the said e-way bill to Transporter B, who will fill the details of his vehicle and move the goods.
2. The validity period of e-way bill starts only after the e-way bill details are updated by the transporter for the first time, said Finance Ministry.
3. In case of movement of goods on account of job-work, the registered job worker can also generate e-way bill, Finance Ministry added.
4. In view of the difficulties faced by the traders in generating the e-way bill due to initial technical glitches in the GST Network, it was earlier decided by the GST Council to extend the trial phase for generation of e-way bills, both for inter-state and intra-state movement of goods.
5. In its meeting last month, a group of ministers headed by Bihar Deputy Chief Minister Sushil Modi recommended April 1 as the date for compulsory implementation of the system for inter-state goods movement.
The move will ensure accountability and cost reduction
Stakeholders in logistics sector have hailed the rolling out of e-way bill system by the GST Council, saying that it would help reduce the logistics cost.
However, some have expressed apprehensions that with the removal of check-posts for the intra-State transport, the e-way bill will not help much, while are saying that it will reduce the logistics cost substantially due to prevention of avoidable detentions of cargo-laden trucks.
The e-way bill system is being rolled out in Andhra Pradesh, Telangana, Gujarat, Kerala and Uttar Pradesh.
Efficient movement
Embassy of Industrial Parks CEO Anshul Singhal told The Hindu that the rolling out of e-way bills would ensure accountability and easier verification , thereby aiding legal organised players. The digitisation of documentation is intended to make inter-State movement of goods more efficient.
“Generation of an e-way bill will reduce the paper documentation and check-time at inter-State checkpoints. Rules for the e-way bill compliance have been detailed by government and can be done online. RFID verification, customised features offer by logistic companies for generation of e-way bills can help drivers move up the learning curve fast,” he said.
Regional language
Adoption of regional languages by applications will also aid drivers to follow the process inm hassle-free manner. Creating and cancelling e-way bills through SMSes will also aid adoption. As a result, logistics cost which is 14% of total value of goods at present is expected to reduce to 10 to 12% over time.
Global standards are at 8 to 10% and this move brings us closer to that. Distance covered by trucks will increase from 225-250 km/day to 300-325 km/day,” Mr. Singhal pointed out.
Resolution of any teething issue with e-way bills in market will move towards a large organised warehouse format from smaller distributed warehouses.
The companies will move from a tax efficiency strategy to warehouse efficiency strategy, the expectation is that market will be served better by large warehousing and logistics hubs.
Digital documentation
Sravan Shipping Services MD G. Sambasiva Rao said the introduction of e-way bill system was a welcome decision.
“Already, the stakeholders are well-versed with the digital documentation. The GST Council should also look into the problems encountered in implementation of the rolling out of e-way bills,” he said.
Cotton
The price of good quality cotton will gain gradually as the arrivals dwindle. Benchmark variety Shankar 6 (S 6) is at Rs 41,445 per candy (356 kg) in Rajkot. Prices could gain to around Rs 42,000 per candy. However, a runaway rally is unlikely. Good quality imports will limit the upside in prices as overall availability of cotton in the country remains sufficient to meet the moderately growing demand.
India will be the new partner country for Ambiente, Europe’s mega exposition of living, dining and gifting items, next year. India takes over the baton from the Netherlands, which was the partner country at the Frankfurt Messe this year. Incidentally, India is the second Asian country after Japan to partner with the Ambiente.
“With its population of over 1.3 billion, India has an incomparable diversity, a rich culture and also a tradition of art and craft. It’s also among our absolute top countries in terms of exhibitors. I’m confident that its presentation will be a real highlight at Ambiente 2019,” Detlef Braun, member of the Executive Board of Messe Frankfurt, said while making the announcement.
The partner country globe was handed over at a ceremony at the Frankfurt Messe, in honour of the Netherlands. Pratibha Parkar, Consul-General of India in Frankfurt, accepted the partner country globe from the Ambassador of the Kingdom of the Netherlands, Wepke Kingma.
“India’s participation at Ambiente 2019 will add to the vibrancy and diversity of the fair and familiarise global manufacturers, retailers and brands with the robust entrepreneurship in Indian textiles, apparel and consumer products industry and will open up opportunities for sourcing and investment in India,” Ajay Tamta, Union Minister of State for Textiles, said. “India is looking forward to this collaboration that will help develop long-term sustainable partnerships of Indian industry with the value chain in Germany and other countries.”
This was the eighth time that the partner country globe was handed to another country at Ambiente: After Denmark, France, Japan, the United States, Italy, the UK and the Netherlands, India will thus be at the focus of visitors to the forthcoming Ambiente. The presentation of a partner country is one of the most popular shows at Ambiente, alongside the Trend Show and draws large audiences. Visitors and exhibitors can already look forward to exciting stimuli as well as a new perspective on present-day Indian design.
The next Ambiente will be held on 8-12 February 2019 while the Indian edition will take place on 27-29sss June in New Delhi, hosting over 150 companies from countries like India, Indonesia, Switzerland and Thailand, showcasing trendsetting designs in the interior décor as well as the famed Interior Lifestyle Awards for aspiring Indian designers
Prime Minister Narendra Modi heads to Britain after a two-day stop in Sweden, beginning Monday.
In the UK, he will attend the Commonwealth Heads of Government Meeting (CHOGM). That apart, he is to meet his counterpart there, Theresa May, for talks on completing a potential trade deal, in the backdrop of Britain’s membership of the European Union (EU) expected to end next March (‘Brexit’), two years from the day it formally filed a notice to quit. There is no withdrawal treaty yet and the possibility of a legal limbo awaits all British businesses. There are Indian multinational companies also worrying about losing the common market of the EU when Britain leaves the bloc. Modi’s three-day visit to Britain in November, 2015 had seen both governments agreeing on Rs 900 billion in commercial deals. And, talks on more cooperation in civil and military technology transfer, and nuclear research.
UK uncertainty
India’s trade with Britain will also be affected if volatility hits the British currency, the pound. “Ever since Brexit was announced, the Centre has kept an eye on this; it might affect our export,” a senior official said. If the pound’s value falls, import by Britain would become more expensive and if the nation is unable to transfer that extra cost to consumers, what it buys will fall. British import from India fell for a third straight year till 2016-17. This has consequences for India, as the UK is India’s sixth-largest export destination, with $8.5 billion worth of our goods reaching there in FY17. On the other hand, import from the UK reduced by almost 30 per cent to $3.7 bn that year, giving India a comfortable trade surplus. Total bilateral trade in services is $7.2 billion.
The pound has since risen steadily against the dollar, since a more than 30-year low in June 2016. However, it is yet to recover its earlier position. In the long term, India’s export will be significantly affected, subject to the deals struck after Brexit, say trade watchers. “Indian apparel export will be heavily hurt; these were $1.6 billion in 2016-17, down from $1.8 billion earlier. These represented India’s largest export in value terms. If Britain gets the same treatment (from the EU after leaving) in terms of Free Tariff and Free Movement of Persons, not much will change for India,” said a senior functionary from the Federation of Indian Export Organisations. However, if Britain gets the treatment as applicable to a non-member country, it might lead to a positive impact on India’s export to both there and the EU, he added. As a result, the Free Trade Agreement Delhi is negotiating with the EU is now being done on a different template. The engagement with Brussels had been stuck after 16 rounds of discussion — both sides are yet to bridge gaps on key issues.
Nordic focus
Modi’s five-day visit will, however, start with a two-day stop in Sweden; he attends the India-Nordic Summit. Prime Ministers from all the latter nations — Denmark, Finland, Iceland, Norway and Sweden — will attend. Modi is expected to focus on securing greater trade and investment with Sweden. India-Sweden annual bilateral trade is around $1.8 billion (Rs 117 bn). India’s trade with the Nordic countries totalled around $5.3 billion (Rs 346 billion) in 2016-17.
The UAE-based Business Leaders Forum (BLF) has sought investments of up to Rs 100 billion in Andhra Pradesh with the partnership of the state government to spur growth in avenues such as food park.
The BLF and India Trade & Exhibition Centre m.e. (ITEC) signed two separate Memoranda of Understanding (MoUs) with the Andhra Pradesh Economic Development Board (APEDB).
The MoUs were signed last week in Hyderabad in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu, who has secured investments of over $12.52 billion.
The BLF is a joint initiative by the UAE Ministry of Economy, Indian Embassy in Abu Dhabi and Indian Consulate in Dubai to boost cross-border investment.
“We are looking at a sizeable project that could require investment of up to Rs 100 billion in which the state government would be a possible partner. We are looking at a possible food park, a medical city, large infrastructure project, among other avenues,” Dr Ram Buxani, President, BLF, said.
The ITEC, represented by its Director General Sripriyaa Kumaria, has signed an MoU with the APEDB to provide employment to 1,000 skilled people from Andhra Pradesh in the UAE by engaging with the UAE’s employers and help boost two-way investment between Andhra Pradesh and the UAE.
The BLF recently led a 10-member investment delegation to the Indian state of Andhra Pradesh to explore new investment opportunities in partnership with the state government in key economic sectors, including health, education, manufacturing food services, information technology and infrastructure.
The delegation, mostly comprising NRI investors and businessmen, met Naidu and discussed ways to facilitate investment from the UAE to Andhra Pradesh. The move is part of the annual mega business conference India-UAE Partnership Summit that was launched last year. Its second edition will be held from October 30-31, 2018.
“I am pleased to announce the signing of two important MoUs with Andhra Pradesh government that will form the basis of our future cooperation and continuous engagement to boost investment,” Buxani said.
The signing of MoUs comes weeks after the Andhra Pradesh government signed a $4.62 billion investment agreement with Emirates Airline to develop a large maintenance, repair and overhaul (MRO) facility.
In October 2017, Naidu witnessed the signing of two MoUs with as many UAE business groups which collectively committed to invest $7.5 billion in the state.
Chairman of ITEC, Shri Sudesh Agarwal assured that ITEC would engage with the large investor groups to invest in high-growth investment areas and expressed hope to bring other major states in India under a similar process.
Lulu Group, a retail group based in the UAE, is developing a hotel and a convention centre with a total investment outlay of $400 million in the state. The collective value of these four projects exceeds $12.52 billion.
About $970 million worth of textile products and apparel were exported from Iran in the last fiscal year that ended on March 20, 2018, to register an increase of 15% compared to the year before, the director general of Textile and Clothing Department at the Ministry of Industries, Mining and Trade announced. Afsaneh Mehrabi added that a total of 466 textile manufacturing units were operating in Iran last year with an overall investment of 18 trillion rials ($428.57 million), providing employment for 9,268 people, IRNA reported.
Cheap, Chinese-made nylon burkas are flooding Afghanistan’s north as consumers turn to affordable, mass-produced fabrics.
But in Kabul a small, determined fashion house is fighting to preserve the traditional textiles once integral to Afghan culture.
Launched in 2006, “Zarif”, which means precious in Persian, commissions traditional cotton and silk from artisanal weavers, then employs more than two dozen people – mostly women – to tailor and design the fabrics into handcrafted, embroidered clothing.
However, with cheaper imports saturating the market, they are struggling to keep local traditional methods afloat, says founder Zolaykha Sherzad.
Only decades ago, the textile industry was on a par with Afghanistan’s legendary carpet trade, famed since the days of the old Silk Road.
During its heyday, textiles were more than just fabrics, with their patterns, colours and embroidery illuminating the origins and tribal history of their makers.
“In the past, the fabrics were entirely embroidered, on the walls, the cushions…the wedding dresses,” says Ms Sherzad.
“But now, we are trying hard just to keep them as ornaments on jackets and coats, to maintain the know-how,” she added, adding that the decline in the craft has put large numbers of women out of work who once were able to make a living at home.
With Zarif, she hopes to fill the gap while aiming to preserve Afghanistan’s textile traditions and designing contemporary takes on Afghan fashion staples.
FIGHTING THE MARKET
A visit to the bazaar in northern Mazar-i-Sharif shows the challenge she faces.
There, bundles of striped and padded coats, or “chapans” – popularised in the West by ex-President Hamid Karzai – pile up in stacks at stalls.
“Too bright,” she said, discarding the synthetic fabrics.
For many consumers, however, they have their appeal. The cheaper knock-offs are printed on nylon, rather than silk, closely replicating traditional designs but at a third of the price.
“These cost 800 to 1,200 afghanis (S$15 to S$22), compared to 2,500 (S$47) for a traditional chapan,” explained Mr Abdullah, a merchant.
Now only the rich can afford the handmade silk chapans, often buying them as wedding gifts, while middle-class and working people opt for the synthetic designs.
Markets across Mazar also burst with the polyester burqas Afghan women are forced by tribal culture to don. But even the fabrics used for this ubiquitous garment come increasingly from abroad.
“China, India, Pakistan, everything comes from outside,” Mr Hashem, a dyer and weaver for Zarif, told Agence France-Presse in the courtyard of his mud house on the outskirts of Mazar from where he manages the 10 women who weave for him at home.
“In the old days, I had 10 families working for me, today I have four,” he said while squeezing a skein of freshly dyed cotton.
“Before, 80 per cent of the raw material came from the local market, today 80 per cent comes from abroad,” he added.
WORKING WOMEN
In founding Zarif, Ms Sherzad – an architect by training – wanted above all to promote female employment, banned under Taliban rule from 1996-2001 and still the norm in large swathes of the country.
According to data provided by the World Bank, 19 per cent of Afghan women were employed in 2017 – which excludes the informal agricultural sector.
Despite the economic crisis that has raged since the withdrawal of more than 100,000 NATO troops in late 2014, Zarif still employs 26 employees in its courtyard workshop, located next to a mosque and its blaring call to prayers.
About 60 per cent of the team is female, including the director Nasima along with the production manager Sara. Two embroiderers work full time while an additional 30 are called on at the discretion of the managers.
Since its creation, Zarif has trained more than 85 women – but most of them have given up their jobs after getting married at the request of husbands who are reluctant to accept the presence of other men near their spouses.
“The brake on women’s employment continues to be their husbands” said Ms Sherzad.
ADAPTING TO SURVIVE
To survive, Zarif relies on connections in Paris, where the company is supported by French fashion brand Agnes b, along with a stable of faithful clientele in New York.
And even as she seeks to preserve, she is also forced to adapt, scouring Afghanistan’s antique shops in search of richly crafted garments that can be refashioned into bags or the linings for men’s jackets.
Silk encapsulates the challenge. Homespun silk from the western city of Herat was once used by Afghan producers for turbans. Now it is exported to Iran.
“There’s only one artisan left in Afghanistan that knows the craft,” Ms Sherzad said.
“It’s necessary to train others, but for what? People no longer have the means and young people no longer wear turbans. We have to invent something else that uses silk.”
