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The State Government of Tamil Nadu (India) is likely to announce its new textile policy soon. This was indicated by K. Phanindra Reddy, Principal Secretary (Textiles, Handlooms, Handicrafts and Khadi), who was recently in Tirupur, the knitwear hub of India, to inaugurate the ‘Textile Research Conclave’.
The event was organised by Tirupur Exporters Association (TEA), Indian Texpreneurs Federation (ITF) and NIFT-TEA Knitwear Institute.
The Principal Secretary also informed that an all-inclusive roadmap on the textile research activities will be a key part of the new textile policy.
A series of programmes is being organised in the state to promote technical textiles production. A workshop on technical textiles to motivate young entrepreneurs is also under consideration, informed Reddy while speaking at the textile event. In August last year, Tamil Nadu Chief Minister EK Palaniswami also announced that the Government would formulate a new integrated textile policy for the state, however, nothing has surfaced so far. The textile industry in Tamil Nadu is the forerunner in industrial development and provides massive employment to the people of the state. According to Department of Handloom and Textile’s website, Tamil Nadu is home to 893 mills out of the total 2,049 large and medium textile mills in India.
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E-commerce behemoth Amazon India and FICCI-CMSME (Confederation of Micro, Small and Medium Enterprises) held a workshop for textile and apparel exporters in Tirupur on February 7, 2018.
The workshop aimed to impart awareness to the participants, especially the MSMEs, on the opportunity presented by the global markets in the B2C segment and to provide them with an e-commerce gateway to tap it.
“Tirupur being a knitwear hub, we had mainly targeted this segment and the initiative was specific to B2C products. FICCI had structured the programme so as to create awareness across the entire value chain of e-commerce,” FICCI-CMSME Treasurer and FICCI Director Hemant Seth told Apparel Resources.
The workshop was attended by around 130 participants and the response was overwhelming, informed Seth, adding that even as Amazon is the sole partner as a platform, they had other associates as well to touch upon other segments which are part of the value chain like finance, cataloguing, etc.
Notably, the initiative is a part of Amazon’s recent collaboration with FICCI-CMSME whereby it will carry out varied training events and workshops pan India to educate exporters and manufacturers on B2C exports via e-commerce route and enable them to reach global consumers through via Amazon’s Global Selling Program.
About Amazon’s Global Selling Program, Abhijit Kamra, Head – Global Selling at Amazon India, apprised that it was launched in India in 2015 with an aim to help Indian businesses take their ‘Made in India’ products to millions of active customers across the globe through 10 global Amazon marketplaces.
A large number of apparel and other textile manufacturers in Tirupur have benefited from the programme and several of them have gone on to build brands on global marketplaces in product categories such as T-shirts, as per him.
Speaking on the workshop in Tirupur, Kamra underscored, “Considering that there are thousands of exporters in Tirupur, we see massive potential for these small and medium scale enterprises to scale up their export business through B2C e-commerce channel across knitwear product categories like T-shirts, dresses other consumer textile products.”
For all exports made with effect from July 1, 2017 for which higher rate of drawback is claimed, exporters have to submit the self-declaration in the format given in CBEC Circular no.32/2017-Cus dated
We are merchant exporters. We exported certain goods without GST payment under letter of undertaking. Some of these were purchased on payment of excise during pre-GST era and some after July 1, 2017 on payment of GST. On export of these goods we have claimed duty drawback at higher composite rates for exports made between July 1, 2017 and September 30, 2017. We have not claimed refund of unutilised input tax credit. Is that OK?As per CBEC Circular no. 22/2017-Cus dated June 30, 2017, the conditions imposed for claiming composite rates aim to ensure that exporters do not claim composite AIRs of duty drawback and simultaneously avail input tax credit of Central Goods and Services Tax (CGST), or Integrated Goods and Services Tax (IGST) on export goods, or on inputs and input services used in the manufacture of export goods, or claim refund of IGST paid on export goods. Further, an exporter claiming composite rate shall also be barred from carrying forward Cenvat credit on the export goods or on inputs or input services used in manufacture of export goods in terms of the CGST Act, 2017. For all exports made with effect from July 1, 2017 for which higher rate of drawback is claimed, exporters have to submit the self-declaration in the format given in CBEC Circular no.32/2017-Cus dated July 27, 2017.We refer to notification 3/2018-Central Tax dated January 23, 2018, which amends the GST Rules, 2017. The amended Rule 96(10) says that the persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit (besides other notifications) of notification No. 79/2017-Customs dated October 13, 2017.
Now, the notification 79/2017 amends many notifications applicable to several types of advance authorisations and even EPCG authorisations. Does it mean that if a supplier has taken the benefit of any of the notifications mentioned in notification 79/2017, the exporter cannot pay IGST on his export goods and claim refund?Yes. The essence of the part of GST Rules amendment that you refer to is that as an exporter, if you procure goods from a supplier who takes the benefit of advance authorisation or EPCG authorisation as provided in notification 79/2017, you must export under LUT. There is more in that amendment. If the supplier claims refund of GST paid on deemed export supplies made to you or if he happens to be an EOU who takes the benefit of notification 78/2017-Cus dated October 13, 2017, then also you cannot export on payment of IGST under a refund claim. Also, a merchant exporter who procures export goods at 0.1 per cent GST must export under LUT. There is lots of confusion in the trade on account of this amendment to the said GST Rules made with retrospective effect from October 23, 2017. The status of exports already made on payment of IGST is not known. If you have received refund of it, you may be asked to surrender the same with interest.
Trading activity picked up on renewed buying from some needy spinners on Monday. However, overall sentiment remained subdued. A weak US dollar against major foreign currencies is being reckoned as the main reason behind the decline in international cotton markets. The US Department for Agriculture has forecasted lower cotton production for India and higher for China. However, the worrisome fact is that the USDA is estimating lower world cotton consumption and less cotton exports from the US, which is likely to result in higher end stocks of cotton.
Locally, sluggish demand for cotton yarn impacted cotton prices adversely as spinners were reluctant to go for ‘long’ position. Ginners are also worried about unsold cotton stocks, brokers added. These factors mostly worked against market sentiment the world over where most of the markets closed easy, brokers added.
Falling cotton prices also pushed down phutti (seed cotton) prices, which were quoted in the range of Rs2,400-3,100 for Punjab quality and Rs2,500-3,200 for Sindh variety per 40kg. The Karachi Cotton Association (KCA) spot rates were firm at week-end level at Rs7,000 per maund. The following deals were reported to have been fianalised on ready counter: 200 bales, Mirpur Mathelo, at Rs7,250; 400 bales, Daharki, at Rs7,100; 400 bales, Khanpur Maher, at Rs7,100; 6,900 bales, Haroonabad, at Rs5,300 to Rs6,850; 1,176 bales, Hasilpur, at Rs6,800; 1,000 bales, Faqeerwali, at Rs6,400 to Rs6,450; 800 bales, Yazman, at Rs6,150; 600 bales, Marrot, at Rs6,100; and 200 bales, Chichawatni, at Rs5,300.
The latest full-year data on US apparel import trends for 2017 suggests China will remain the dominant sourcing region for some time to come. An analysis of the figures by just-style shows the average unit price of China’s apparel exports to the US has dropped steadily over the last seven years – with a decline of 4.8% in the last year alone.
The fall in prices comes despite claims US buyers are seeking alternative sources for clothing amid concerns China is losing its competitiveness. Indeed, a further look at the import numbers shows China’s share of US apparel import volumes currently stands at 41.9%, little changed from the 41.53% it held in 2016, and marginally lower than the share of 41.98% it held in 2010.
But Vietnam’s garment sector has benefited, too, with its share of the US market in volume terms having risen from 11.52% in 2015 to 13.28% in 2017. There’s no “golden ticket” when it comes to building a balanced sourcing strategy, especially when faced with the need for faster speed-to-market and customer demands for ‘buy now/wear now’, according to Angela Gaskell, head of sourcing and compliance manager at UK-based plus-size fashion retailer N Brown Group.
But understanding your customer, identifying the right strategy for your company, building trust and working in partnership with your suppliers are all steps in the right direction.
UK value retailer Primark has published its global supplier list just weeks after being criticised for not publicly disclosing the factories that produce its clothes. The company sources from 1,071 factories in 31 countries.
A new US$1.5bn Algerian joint venture for Turkish denim giant Taypa is being described as the largest clothing and textile manufacturing facility in the Europe and Eastern Mediterranean basin – and is due to start production this year. While Spanish clothing giant Inditex has opened a buying office in Pakistan in a move that could double its imports from the country. A group of public and private stakeholders in the European textile, clothing, leather and footwear industries has also joined forces to create an EU-wide strategy to boost skills and attract new workers to the sector. And Latin American apparel makers and retailers are eyeing blockchain technologies and delving into Industry 4.0 manufacturing to tackle rising contraband, slash red tape and bolster sales.
International cotton prices are continuing to move upward, with the Cotlook A index during January averaging 91 cents per pound. This compares with a 2017/18 season to date average of 82.4 cents per pound.
The falling value of the US dollar is partly to blame for the rising price of cotton, due to higher demand for US cotton priced in depreciating dollars. Amid the NAFTA negotiations and ongoing uncertainty as Donald Trump went to Davos, Robert Antoshak, managing director at Olah Inc, took a look at possible ramifications for the textile and clothing sector. And after a wave of sell-offs on global stock markets early last week, we asked whether there is cause for concern? The answer is yes – but there is also a need for some perspective and there is no reason to believe that a global economic recession is imminent or inevitable. Meanwhile in other news, Lululemon Athletica’s CEO has left suddenly amid allegations of misconduct; a British firm is investing US$100m in a textile and garment facility in Ethiopia; and House of Fraser has had credit insurance withdrawn on some of its suppliers.
Senior officials of India and Bangladesh held detailed discussions in Dhaka on ways to boost bilateral trade and investments.The commerce secretary level talks were held on February 7-8.”The two sides held extensive and productive discussions on issues concerning bilateral trade and economic relations, including development and upgradation of infrastructure at border trading points,” the commerce ministry said in a statement.Both sides also deliberated upon expansion of border haats, identification and resolution of non-tariff issues affecting bilateral trade, regional connectivity under BBIN (Bangladesh-Bhutan-India-Nepal ) MVA (motor vehicles agreement) and ease of investment, it said.The ministry said the two countries agreed to explore possibilities to enhance bilateral trade relations and cooperation in fields of export promotion and capacity building.The commerce secretaries also discussed about establishment of an institutional B2B mechanism to provide policy-level inputs on trade and investment.Bilateral trade between the countries increased to USD 7.52 billion in 2016-17 from USD 6.76 billion in the previous fiscal.India’s main exports to Bangladesh include cotton, iron and steel, vehicles and chemicals, while imports are jute and textiles.
The GST Council will most likely come up with simplified Goods and Services (GST) return system before March 31 as it has decided the return filing under the old system of GSTR- 1, 2, 3 and 3B only until March 31.
The GST Council will most likely come up with simplified Goods and Services (GST) return system before March 31 as it has decided the return filing under the old system of GSTR- 1, 2, 3 and 3B only until March 31. According to a report by PTI, the chairman of GST Network (GSTN) will seek suggestions from industry and traders’ bodies on simplification of the returns filing.
According to him, the GST Council is planning to come up with a new system as soon as possible. The entire process of deliberating upon the new and simplified systems by the Group of Ministers (GoM) of the GST Council is likely to get expedited in next two weeks.
Post the implementation of the GST on July 1, traders have been complaining about complex GST return filing system and regular glitches on the GST Network. In November, with an aim to simplify the system to increase compliance, the Council not only extended the deadlines for filing returns but also temporarily removed the filing GSTR-2 and GSTR-3. The deadline for filing GSTR-3B was extended to March 31 and GSTR-1 to 20th of every succeeding month.
However, the council is planning to simplify the process even further. According to Finance Minister and head of GST Council Arun Jaitley, the process of simplification is culminating a particular direction. Earlier, it was reported that the GST Council was going to conduct a meeting via video conferencing to decide on the issue before the Budget 2018, however, it did not take place.
After the 25th meeting, Arun Jaitley gave a sneak-peek into the new process under consideration. He said that under the new system GSTR 3B would be continued along with invoices of supply. He said that supply invoice will automatically reflect the supplies, and hence, the process of filing GSTR-1 and GSTR-2 can be subsumed. However, there are other methods under consideration too by the council.
The first zonal fair of the Apparel Manufacturers of India, held at Hyderabad, has generated more than Rs 75 crore of business. The four-day fair held at Hitex Exhibition Centre saw the participation of over 3,500 visitors from Telangana, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala, who together placed orders worth Rs 75 crore.
Ethos, Geevankee, Era, Final Choice, Torso Shirts, Diya Design Studio, Big Brother, Hansi, Fayon Troupe and Femi Designs were among brands that participated. These brands have been allied with AMI since the last 12 editions and continue to do so. Nikhil Furia, Key Organiser, Apparel Manufacturers of India, in a statement said, “This was the first time we conducted a zonal fair and are overwhelmed with the support we have received.”
The AMI’s aim is to bridge the gap between manufacturers, retailers, agents and suppliers, build a robust community and facilitate trade. They work in sync in the entire value chain. AMI has conducted five fairs in Chennai, six in Kochi and one fair in Hyderabad in the last three years.
The Andhra Pradesh government has issued show-cause notices to two major seed companies — Kaveri Seeds and Nuziveedu Seeds — for illegally selling herbicide tolerant cotton seeds to farmers in Kurnool and Guntur districts.
The Andhra Pradesh government has issued show-cause notices to two major seed companies — Kaveri Seeds and Nuziveedu Seeds — for illegally selling herbicide tolerant cotton seeds to farmers in Kurnool and Guntur districts. In an order issued by the additional director of agriculture (seeds), government of Andhra Pradesh on January 29, both the seed companies were asked to reply within five days to the findings of an expert panel report which held them guilty of selling herbicide tolerant cotton seeds, not approved by the Genetic Engineering Approval Committee (GEAC).
M Prabhakar Rao, chairman of Nuziveedu group confirmed receiving the notice from the AP government, but denied the allegation. He said the notices were wrongly issued to his company and he has already responded to the government. There is no proof that the crop, as found by the fact finding team, belongs to Nuziveedu Seeds, he said. The issue of release of herbicide tolerant genetically modified cotton seeds, without mandatory approval from GEAC, for cultivation among farmers was first reported last year, following which both Maharashtra and Andhra Pradesh governments had probed the matter.
As per the show-cause notice, a copy of which is available with Financial Express, “HT cotton (Roundup Ready Flex) contains the genes for Bollgard I (BG I), BG II and the CP4-EPSPS gene (the herbicide tolerant gene) and does not have the Centre’s clearance to be used commercially. Hence the samples which are found HT positive for CP4-EPSPS gene is illegal and unapproved.”
A two member expert panel had visited cotton fields in Guntur and Kurnool districts in October last year and took sample of the crops from the farmers. After the samples were tested positive, taking the feedback from the farmers from where they purchased the seeds from, the state government concluded that the HT crop was grown from Raja variety of Nuziveedu seeds and ATM hybrid, Kaveri 401 and Kaveri 141 of Kaveri Seeds.
The National Seed Association (NSAI), headed by Rao, released a statement saying its “members are not at all involved in Bt HT production or business.” Kalyan Goswami, director general of NSAI, said: “Few unorganised people are doing it with the backing from the HT Bt seed technology supplier who got permission for trial. The Department of Biotechnology has not yet able to provide protocol for Bt sample collection and testing, as a result we are seeing gross error in test outcome. Secondly, cross contamination cannot also be ruled out.” Last year, when the report of HT cotton came out, it was estimated by the industry that farmers had planted about 35 lakh packets of the GM seeds. The government allows only those GM cotton that contain ‘cry1Ac’ and ‘cry2Ab’ genes, isolated from the soil bacterium Bacillus thuringiensis (Bt) and coding for proteins toxic to bollworm insect pests.
A hailstorm and unseasonal rains lashed several parts of Madhya Pradesh and Maharashtra on Sunday. But trade and government sources said an exact assessment of the damage to standing wheat, chana, grapes and cotton crops would only be available in the next few days.In Madhya Pradesh, sources said the hailstorm hit almost 400 villages and could affect the standing wheat, chana and mustard crop. The state government is assessing the impact of the hailstorm, which many said was among the severest in the last few years.Large tracts of farmland were covered with a thick sheet of white after the storm while in some places hail as big as golf balls fell. Chief Minister Shivraj Singh Chouhan, in an address to the farmers, assured them the state government would provide relief to all hailstorm-affected farmers through an adequate compensation package and quick payment of insurance claims.Sehore, Harda and Dewas were among the worst affected districts in the state, sources said.
In Seoni district, around 44 mm of rainfall was recorded on Sunday.Madhya Pradesh is among the largest wheat and chana growing states in the country.According to data from the ministry of agriculture, wheat has been cultivated on 5.3 million hectares of land in the state, 1.1 million hectares less than last year, while chana has been grown 3.6 million hectares, 0.34 million hectares more than last year.Almost 0.5 million hectares of land low unsown in rabi 2018 due to low ground moisture in the state because of drought.The intensity of rain will lessen in the next 24 hours, but there could be a recurrence.“Tomorrow there is forecast of rains in east Madhya Pradesh and Chhattisgarh along with parts of Marathwada in Maharashtra, while in areas that were hit by Sunday’s hailstorm namely the districts of Beed, Jalna, Parbhani in Maharashtra and Sehore, Harda and Dewas in Madhya Pradesh, the intensity will subside for now,” Mahesh Palawat, chief meteorologist at Skymet said.Trade sources said as of now it is too early to say if there is any damage to chana crop till clarity emerges on the extent of the hailstorm and its spread, especially where chana and masoor are grown.But if it is big, then the crop will definitely get affected.“We have received reports of hailstorm affecting standing crops in some parts of Maharashtra and Madhya Pradesh and have called for a report from the state meteorological departments and universities to gauge the extent of damage,” K K Singh, head of India Meteorological Department’s (IMD’s) Agromet advisory services, told Business Standard.A PTI report filed on Sunday said hailstorm over central parts of Maharashtra, Marathwada and parts of Vidarbha had claimed three lives, and the state government had ordered an assessment of the damage caused. According to a state agriculture department official, farm produce like wheat, oranges and grapes were severely damaged in some areas.In case of mustard, a main rabi crop, trade sources said preliminary estimates had not reported any large-scale damage.“Usually, if it rains it is good for mustard. We will have to assess the impact of hailstorm and we will be conducting crop survey on February 25-27, when we will come out with our crop estimates,” said B V Mehta, executive director, Solvent Extractors’ Association (SEA).
