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Union minister Arun Jaitley today suggested a uniform set of policies for the agriculture sector across the country so that farmers benefit the most and their income doubles.
The agriculture sector is an area that bothers both the Centre and the states with both the governments making policies for the sector, Jaitley said while addressing the 37th foundation day of farm-focused lender Nabard through a video link, and added the same approach that helped roll out GST can be adopted in the case of farm policies as well.
“If there is any area in the economy where we can give an example to the world and to ourselves of co-operative federalism, it’s the agriculture sector. It can benefit the people more than what GST has done,” said Jaitley.
He also said GST is the first example of the Centre and the states coming together to run a new tax regime on the basis of federal structure.
If the states and the Centre support each other on the basis of this federal model, the farm sector will reap the maximum benefits, which Jaitley said will uplift the farmers and help in achieving the target of increasing their income by two times.
He pointed out that states which focused on the agriculture sector by increasing farmers income have been re-elected and those who neglected the priorities of this sector, have paid the price.
Earlier, after addressing the Nabard celebrations, junior finance minister SP Shukla said the government has finalised eight names for the post of managing directors and chief executive officers of state-run banks, but did not say when the announcements will be made public.
Earlier this month, the Banks Board Bureau (BBB) recommended names of 14 senior officials for these posts for various public sector banks.
It has also suggested appointing State Bank of India’s chief financial officer Anshula Kant as a managing director of the nation’s largest lender.
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Hyderabad: The Telangana government has fast-tracked efforts to stamp out the bollworm pest which has been ravaging cotton crops in Telangana. Principal Secretary Agriculture, Parthasarathi has stressed upon this aspect while addressing district collectors here today.
The senior bureaucrat pointed out that cotton crop was going to be cultivated over about 18 lakh hectares this Kharif season. He observed that BT variety of cotton was most affected by this pest in central and south Indian states. This has been a recurring pattern over the past three years, he said.
The Telangana government has intensified efforts to tackle this menace which is proving to be a serious threat to cotton crops in Maharashtra, AP and Telangana, he said. He also advised officials of the agriculture department to create awareness among farmers with regard to the bollworm pest.
The export of caustic soda to India has remained suspended for the last three months after New Delhi ruled the chemical will not be allowed to enter the country without the certification from its standards authority.
Three local companies have been exporting the chemical, used mainly in textile, water treatment, pharmaceuticals and food processing industries, to India and other South Asian counties for the last several years.
The exports to India came to a halt on April 3 when the country’s Ministry of Chemicals and Fertilizers ordered that caustic soda should conform to the standards set by the Bureau of Indian Standard (BIS).
The chemical should bear the standard mark under a licence from the BIS, said the order.
“Our shipment to India has remained halted since then and we had to slash production,” said Md Manirul Islam, deputy general manager for sales and marketing of Tasnim Chemical Complex Ltd, a concern of Meghna Group of Industries.
“Our production is now on the brink of suspension because of the build-up of stocks.”
Tasnim Chemical Complex had orders for shipping 4,000 tonnes of the chemical worth $27.60 lakh. The company had also received $5.11 lakh in advance payment but it had to return the money to importers since it could not export the product.
“We have the certification from the Bangladesh Standards and Testing Institution (BSTI) and we had been exporting using the certification,” said Islam.
Tasnim Chemical Complex produces 330 tonnes of caustic soda every year to cater domestic consumers.
Bangladesh consumes 1.60 lakh tonnes of caustic soda annually against the production of 1.90 lakh tonnes. The textile industry is the main consumer of the chemical.
Caustic soda is exported mainly to India, Pakistan, Sri Lanka and Nepal, with India accounting for half of the export earnings from the chemical.
“Our exports to India were rising gradually and we took an initiative to ramp up our production capacity in line with the export growth,” said Mohammad Akramuzzaman, chief financial officer of Samuda Chemical Complex Ltd, a concern of Chittagong-based TK Group. Samuda Chemical Complex had to cancel an order for shipping 500 tonnes of caustic soda from Indian buyers. Both Tasnim and Samuda have applied to the BIS seeking the licence for standard mark for their caustic soda. “We are hopeful to get the licence from the BIS,” said Islam, citing that a team is expected to visit Tasnim factory on July 24.
The chemical producers also applied to the commerce ministry of Bangladesh for taking an initiative so that Indian authorities give clearance to locally made caustic soda and hydrogen peroxide based on certification from the BSTI.
Bangladesh’s chemical exports increased 40 percent to $28.17 million in 2017-18 from $20.01 million a year ago, according to the Export Promotion Bureau. Caustic soda exports rose nearly four times to $4.67 million.
Job workers in Bengal have got relief from generating e-way bills on the intra-state movement of goods.
State finance minister Amit Mitra on Thursday said the government has agreed to an industry demand and, through a notification, allowed the exemption that will benefit small businesses and job workers across the product chain.
The e-way bill is a documentary evidence containing details such as the name of a consigner and a consignee, their GST numbers, the description and value of goods in the consignment as well as transport details. The transporters need to carry them along with invoices during the movement of goods.
The generation of e-way bill under the West Bengal Goods and Service Tax Rules, 2017 for an intra-state movement of goods is exempted where such goods are being sent to a job worker for a job work…or from one job worker to another job worker or are being returned to the principal after such job work, and where transportation is not final delivery of finished goods,” the notification, which came into effect on Thursday, said.
The notification was issued after consultation with the chief commissioner of central tax, Calcutta zone.
“This will help the textile industry in a major way,” Mitra said on the sidelines of a garment expo in the city.
The minister added the state government already extended the threshold for e-way bills.
A notification issued last month says e-way bills in respect of the movement of goods originating and terminating within the state shall be required where the consignment value exceeds Rs 1 lakh.
“If any good is transported within the state, e-way bill is required. If goods worth more than Rs 50,000 is carried, you need e-way bill. We have extended it to Rs 1 lakh,” said Mitra.
He told the garment industry representatives at the expo that he would take up an industry demand to raise the GST threshold to above Rs 20 lakh at a GST Council meeting once the new tax regime stabilises.
The West Bengal government on Thursday increased, up to Rs 1 lakh, the threshold limit for the electronic-way or e-way bill in case of movement of goods within the state from existing limit of up to Rs 50,000.
The generation of e-way bill for an intra-state movement of goods was also exempted where such goods were being sent to job workers, said state Finance Minister Amit Mitra.
“The e-way bill in respect of movement of goods originating and terminating within the state (intra-state movement but without passing through any other state) would be required where the consignment value exceeds Rs 1 lakh. Such limit was up to Rs 50,000. In this regard, a notification was issued today (Thursday),” he said.
Usually, e-way bill would be required when the value of taxable consignment, along with the tax value, is more than Rs 50,000. The Central government had launched the e-way bill system from April 1 for moving goods worth over Rs 50,000 from one state to another and the same for intra or within the state movement was rolled out from April 15 in a phased manner.
Quoting the notification, Mitra also said: “Generation of e-way bill for an intra state movement of goods is exempted where such goods are being sent to a job worker for job work or are being sent from one job worker to another or are being returned to the principal after such job work and where such transportation is not for final delivery of the finished goods.”
Addressing a programme of Bengal Readymade Garments Manufacturers and Traders Welfare Association, he said a nine lakh sq ft textile hub was being set up at Nangi in South 24 Parganas for facilitating garments’ manufacturers and traders and a common facility centre would also be set up.
According to him, about 25,000-30,000 artisans and entrepreneurs including organised and unorganised have been working in the Metiabruz, a hub of garments and apparel manufacturing in the state and generating over 5 lakh jobs.
“In Metiabruz, 90 per cent small entrepreneurs and artisans are unorganised. We want to bring them in an organised set up so that they can fetch better margin and manufacture more exportable products. The common facility centre will house design, laboratory and other facilities so that manufacturers can avail that,” Mitra added.
According to him, bank lending to MSMEs in the last year was Rs 44,000 crore, exceeding the target of Rs 38,000 crore in the state. “This year, the target has been set at Rs 50,000 crore,” he added.
The National Council of Textile Organization (NCTO) applauds the Trump administration for its continued effort to resolve longstanding trade inequities with China, noting the 10 July announcement proposing US$ 200 billion in Chinese goods for an added 10% tariff.
The latest US action follows China’s retaliation against US imports after the United States placed Section 301 tariffs on Chinese goods in response to that country’s unfair trade practices related to the forced transfer of American technology and intellectual property.
NCTO also called on the Trump administration to include finished textile and apparel products on any future lists of imports from China to be made subject to Section 301 tariffs. “The Trump administration is right to confront China’s unfair trade practices. Section 301 tariffs show the world that countries who cheat the United States on trade will be held accountable,” said Auggie Tantillo, NCTO President and CEO.
That said, NCTO says it will be thoroughly vetting the new retaliation list. “With the inclusion of virtually all fibre, yarn and fabric tariff lines, NCTO’s response will be on a line-by-line basis, with support or opposition to individual lines dependent on the how the competitiveness of the US textile industry is impacted,” continued Tantillo.
“NCTO is convinced that the Trump administration’s Section 301 tariffs would be far more effective if Chinese apparel and sewn non-apparel end products were included in the 301 list because that would benefit the entire U.S. textile and apparel supply chain,” said Tantillo, as he referred to NCTO’s China 301 public comments filed on 11 May and noted that no apparel and sewn non-apparel end products were included on the US government’s latest proposed tariff list.
“If properly targeted, Section 301 tariffs would not only address the underlying illegal activity on the part of China, but also help reshore American jobs and boost U.S. exports to the NAFTA and CAFTA regions. That’s why NCTO will continue to engage the Trump administration on ways to maximize the benefit of Section 301 tariffs to American industry and workers,” concluded Tantillo.
BEIJING (Reuters) – China National Textile and Apparel Council said on Friday it was deeply concerned about the escalating trade friction between the United States and China.
The council also said it resolutely opposes additional U.S. tariffs on China’s textile and textile equipment exports, according to a statement on its website. Washington last week imposed 25 percent tariffs on $34 billion of Chinese imports, drawing rapid retaliatory duties by Beijing on the same amount of U.S. exports to China.
Zanu-PF House of Assembly candidate for Zaka Central constituency Cde Davison Svuure has implored private firms to set up a ginnery in the district that is now one of the major cotton producers in Masvingo province.
Cde Svuure said the ginnery will also create employment for hundreds of youths in the district while also stimulating economic growth.
Addressing thousands of Zanu-PF supporters during a campaign rally here recently, Cde Svuure said Zaka has potential to be a cotton producing hub owing to rising output of the crop.
He said it was ideal for cotton processing companies to set up shop close to the source of raw materials with Zaka now a major player in the cotton industry in southern Masvingo.
“Under the new dispensation, which is spearheaded by President Mnangagwa, we do not expect to have a situation where cotton farmers travel long distances to sell their product and again we do not want our farmers to remain underdeveloped while they are producing the white gold.
“We are going to engage cotton companies like Cottco and others to come and establish processing plants in our region so that we create employment. Zaka cotton farmers should benefit from their crop and not just enrich others,” he said.
Cde Svuure said youths would get jobs if cotton processing plants were opened in the district.
“We do not want to see a situation where our youths rely on politicians to buy beer and drinks for them. They should be able to sustain themselves.”
He urged Zaka farmers to rally behind President Mnangagwa whom he said has a vision of creating a prosperous Zimbabwe.
“Let us all vote for President Mnangagwa on July 30. His vision of seeing an economically transformed Zimbabwe is unquestionable and one does not need spectacles to see that.
“The Presidential Inputs Support Scheme together with the Command Agriculture programme shows that President Mnangagwa is committed to deliver a prosperous nation where citizens are freed from the shackles of poverty,” said Cde Svuure
Six weeks into the South-West monsoon season, the kharif 2018 area coverage does not inspire any confidence.
As of July 6, we can see slippages in planted area for important crops including rice, pulses, coarse cereals, oilseeds and cotton, according to the Agriculture Ministry data.
So far, a third of normal area under pulses, coarse grains and oilseeds has already been planted; and more will be covered in the coming days. As for cotton, close to 50 per cent has been covered.
Meanwhile, the announcement of a sharp hike in minimum support price (MSP) for various kharif crops made on July 4 denies growers (who have completed planting) the opportunity to evaluate crop options. In other words, higher MSP is unlikely to serve its intended purpose for many growers.
The progress of monsoon is also less than satisfactory with a 7 per cent deficit as of July 4; and 11 out of the 36 meteorological sub-divisions face deficit rainfall. This covers Gujarat, Uttar Pradesh, Odisha and East Madhya Pradesh. The trickling news that September may witness below normal precipitation because of creeping El Nino conditions is a risk that cannot be taken lightly.
While it would be premature to jump to any conclusion about the eventual harvest size, the progress of planting so far and distribution of rainfall sends out a clear signal that production may fall short of the tentative target for each of the major crops this season. For coarse grains, pulses and oilseeds the targets are 34.3, 8.9 and 25.5 million tonnes respectively, while for cotton it is 35.5 million bales (of 170 kg).
The market must brace for a 10 per cent setback in pulses harvest and 6-8 per cent in cotton. In pulses, the situation is not an alarming one because the official agencies are said to be carrying about 3.5 million tonnes of various pulses including 2.6 mt of chickpea (chana). These stocks will at some stage — indeed sooner rather than later — have to enter the market as otherwise the cost of carrying them (warehouse rent, interest, quality deterioration) would make them uncompetitive.
Cotton exports to bloom
Cotton is likely to turn out to be a contentious commodity because of the huge export opportunity. Cotton prices, already firm, are likely to rise further. China is emerging as a big buyer of Indian cotton following the worsening trade friction and tariff war between the US and China.
India has a great opportunity, after a gap of three years, to maximise cotton export. However, it may not be smooth sailing. If experience is any guide, the domestic user industry is sure to lobby for restrictions on cotton export. If the government buckled, it would be an ill-advised move and patently anti-farmer.
Vegoil imports may rise
Among oilseeds, soyabean is sure to be a saving grace. Given that prices have been ruling well above the MSP, growers are encouraged to allot more area for soya. The crop will help advance protein availability, but its contribution to the vegetable oil pool will be limited given the low oil content. In other words, our dependence on imported edible oils may worsen further in 2018-19 season.
The emerging scenario for the upcoming kharif harvest is becoming increasingly clear and one of some concern. Farm-gate prices, especially of crops such as pulses, are likely to rule below MSP, forcing the government to continue to undertake procurement. Together with continuing high crude oil prices in the global market and sharply depreciating rupee, higher MSP for various crops may heighten inflation expectations.
The author is a policy commentator and global agri-business specialist. Views are personal.
Minister for Handlooms and Textiles O.S. Manian reviewed the implementation of the new handloom support programme with handloom weavers and representatives of handloom associations at the Collectorate here on Tuesday.
At present, there are 3.19 lakh handloom weavers involved in weaving in the State.
About 1,139 handloom weavers cooperative society are there under which 2.44 lakh handlooms are functioning.
Profit
As many as 1,053 cotton handloom weavers’ cooperative societies and 86 silk handloom weavers’ cooperative societies are functioning in the State and 959 weavers’ cooperative societies are functioning in profit.
In 2017-18, about 790.35 lakh metre handloom clothes worth Rs. 695.50 crore were produced and materials were sold for Rs. 852.93 crore.
At a meeting held at the Collectorate, the Minister reviewed the implementation of the programme in the districts of Erode, Coimbatore, Tirupur, Salem, Namakkal and Karur and also sought the opinion from the stakeholders.
