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NEWS BRIEFS

Punjab Apparel & Tex- merce and Mr DPS Kharbanda, IAS, gaps. The takeaways of the Conclave
Director of Industries and Commerce would be used for fashioning an ap-
tile Conclave 2018 held and other top officials were also propriate strategy and way-forward in
present on the occasion. terms of Policy provisions by the State
in Ludhiana Government.
While addressing the industrialists,
Minister for Industries and Commerce the minister said that the new indus- The Minister stated that ever since
Punjab Mr Sunder Sham Arora said trial policy will emphasise mainly on the Congress came to power in
that very soon, Punjab would have the small and medium industry and would Punjab, different industrialists have
best industrial policy amongst all be ready in next 8-10 days time. He invested more than Rs 9300 crore in
states of the country. He said that the exhorted the entrepreneurs to come the state. He said that no industrial-
Punjab government is committed for forward and invest in the textile sec- ists are shifting their base to other
the welfare of industrialists and that tor and promised that all facilitation states now and this could be known
is why, it is being prepared in consul- and incentives will be given to them from the fact that 55 industrial units
tation with all stakeholders. by the state government as per the that had closed down in Mandi
new Industrial Policy. He mentioned Gobindgarh few years back, are now
Government of Punjab in partnership that the Department would conduct a operational. Besides, the state gov-
with Confederation of Indian Industry number of such conclaves of all im- ernment has also given employment
(CII) as institutional partner, Northern portant sectors of the industry, iden- to 1.61 lakh unemployed youth under
India Institute of Fashion Technology tified in the Policy. its Ghar Ghar Rozgar scheme.
(NIIFT) Mohali as academic partner
and Wazir Advisors as knowledge He also announced that the next Con- The minister urged the industrialists
partner hosted the Punjab Apparel & clave on the Logistics Sector would to follow all the set norms and as-
Textiles Conclave at Hotel Park Plaza, be held on August 3, 2018 at sured that they would not be harassed
in Ludhiana on July 13. Mr Sundar Ludhiana. The Minister said that the unnecessarily by officials from any
Sham Arora was the chief guest on objective of this Conclave was to un- government department if they have
the occasion, while MLAs Mr. Rakesh derstand the dynamics of the Textile fulfilled them. He stated that the VAT
Pandey, Mr Surinder Kumar Dawar Value chain from Fibre to Apparel so refund would be issued to all parties
and Mr. Sanjeev Talwar were the as to identify the gaps in the value by December 2018.
guests of honour. Mr RK Verma, IAS, chain which would initiate necessary
Principal Secretary Industries & Com- government interventions to fill these On the occasion, Mr Arora announced

State Level Punjab Apparel and Textiles Conclave was held in hotel Park Plaza Ludhiana. Mr Sunder Sham
Arora (4th from left) Industries and Commerce Minister Punjab is presiding over the conclave as the Chief
Guest.

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Punjab is among the largest
producers of cotton &
blended yarn as well as mill-
made fabrics in India. Abun-
dance of raw material,
trained labor, enabling infra-
structure, cluster develop-
ment and an established in-
dustrial ecosystem ensure an
ideal environment for textile
sector in Punjab
that a new focal point would be com-
ing up in Ludhiana soon as the de-
partment is already looking for land,
besides a private Textile Park is also Mr Sunder Sham Arora speaking at the Punjab Apparel and Textiles Con-
coming up in Ludhiana. He also an- clave
nounced that once cleared by the the occasion included Mr Rajinder Gupta, Chairman Trident Group, Mr D.L
cabinet, the medium units with high Sharma, Director, Vardhaman Textiles Ltd, Mr. Prashant Agarwal Joint Man-
load would also get electricity at Rs 5 aging Director Wazir Advisors, Mr Iqbal Ahmed, Deputy Director, Textiles,
per unit. Office of Textile Commissioner, Amritsar, Smt. Mridula Jain, Chairperson, Shawl
Club of India & Managing Director, Shingora Textiles Ltd, GMDIC Mr Mahesh
The Minister said that for boosting Khanna, besides several others.
investment in the state, a single win-
dow system has been set up at the The one-day Conclave organised by the state government proved to be ben-
Deputy Commissioner Offices, where eficial for boosting investment in Punjab. During this conclave, MoU’s worth
approval for investment of up to Rs Rs 455.34 crore were signed between the state government and 9 prominent
10 crore would be granted in a hassle industries.
free and transparent manner.
These industries included Vin Gon India Pvt Ltd (Rs 150 crore), Fateh Alloys
While interacting with industrialists Pvt Ltd (Rs 110.84 crore), First Reliable Industries (Rs 50 crore), Aribha
from Ludhiana as well as other parts Knitwears (Rs 50 crore), Rotaxa Auto India Pvt Ltd (Rs 39.5 crore), Fateh
of the state, Mr Sunder Sham Arora Alloys Pvt Ltd (Rs 25 crore), Mount Meru Industries (Rs 10 crore), Ferro Sona
stated that the Punjab government Garments Pvt Ltd (Rs 10 crore) and United International (Rs 10 crore). These
has a positive approach towards in- industries are associated with technical textile, composite hosiery, spinning
dustries and that is why, our industry garments manufacturing, fabric knitting, apparel manufacturing, spinning,
is now flourishing day by day. On the knitting, fabrics, readymade garments, auto parts, CA stove and pipe manu-
occasion, even the industrialists as- facturing etc.
sured the minister of all possible sup-
port and said that they would keep on DiloGroup's India Sales & Service Office
investing in the state.
Opened in Gurugram Near New Delhi
The conclave was divided into four
sessions, namely “Creating Eco Sys- The management of DiloGroup has announced the establishment of Dilo In-
tem for Making Punjab’s Textile Indus- dia Private Limited in the city of Gurugram near New Delhi. This new Dilo
try Competitive”, “Brand Building & office is a continuation of efforts to provide direct, close contact and service
Multi Channel Approach to Retail”, to Indian customers.
“Making Punjab Ready for Technical "Dilo has been active on the Indian market for more than 30 years. Now our
Textiles” and “Making Punjab Ready own sales and service office has been opened in the city of Gurugram near
for Technical Textiles”. The Minister New Delhi to have an even closer contact to the Indian customers and to
also released a report on the Apparel provide optimum after-sales-service", the company said in its press release.
and Textile Industry prepared by Wazir
Advisors. Mr. Yogesh Garg heads Dilo India Private Ltd. as Managing Director. He is a
well-known expert on Dilo equipment and in the field of nonwovens. He will be
Prominent among those present on supported from Germany by DiloGroup's Sales Director Dr. Gunnar Hemmer

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nowovens machinery sales, service and spare parts.

On November 15 the official inauguration along with a


symposium to highlight machine and technology features
and innovations is scheduled.
DiloGroup comprises four companies namely DiloTemafa
(Fibre Opening and Blending solutions) DiloSpinnbau (Card-
and Mr. Hjalmar Schwab as Area Sales Manager for India ing Technology), DiloMachines (Cross Lapping and Nee-
and South-East Asia. dling Machines) and DiloSystems which provide complete
lines for the various nonwoven applications and also project
According to the Indian tradition, the office was blessed installation services.
in a prayer ceremony.
Dilo’s range of technology offerings include perfect open-
The nonwovens industry worldwide has enjoyed great
ing and blending solutions, universal and high capacity
success and high growth rates. DiloGroup as a leading
carding machines including random card technology and
supplier in this field has grown similarly in recent years
large card working widths exceeding 5m with high web
and is known for highly productive high quality equipment
speeds up to 400 m/min at the winder of e. g. water en-
in nonwovens production and needling lines.
tanglement lines. In addition, high speed crosslappers as
The Dilo office in India is an expression of the high regard well as universal and high capacity needle looms DI-LOOM
for the growing potential in the nonwovens industry of In- are part of the range.
dia and will be the first point of contact of customers for
Dilo has contributed many innovative solutions to the
nonwovens industry and has become a major supplier of
the production lines for nonwovens and technical textiles
used in the fields of automobiles, filtration, geotextiles,
synthetic leather, roofing material, domestic and indus-
trial wipes, hygiene products, agricultural products, natu-
ral fibre felts for upholstery and bedding applications.

Bangladesh hopes to benefit from


India's doubling import duty on tex-
tile products
Recently, India doubled the import duty on more than 300
textile products to 20% aimed at curbing the rising im-
ports from China. Earlier, an increase on other products
including fibre and apparels was announced last month.
The hike is intended to provide relief to the domestic tex-
tile industry, which has been complaining about flooding

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of the Indian market by cheap imports products will find their way to India from these countries.
from China. According to the data
available, India's total textile imports Bangladesh’s export earnings from the apparel sector registered an 8.76%
jumped by 16 percent to a record $7 growth reaching $30.61 billion in FY18. The apparel industry, employer of 40
billion in the fiscal year to March 2018. million workers, mostly rural women, contributed 83.49% to Bangladesh’s
Of this, about $3 billion were from total exports of $36.66 billion to date.
China. According to Export Promotion Bureau (EPB) data released, Bangladesh’s
Rising imports from China have export earnings from the RMG sector stood at $30.61billion, posting 8.76%
caused India to face trade deficit with growth in the last fiscal year. The figure is 1.51% higher than the target of
China in textile products to a record $30.16 million for FY18. In FY17, Bangladesh’s export earnings registered a
high $1.54 billion in 2017/18. India 0.2% growth to $28.15 billion, the lowest in the last one and a half decade.
used to be a net exporter of textile Of the total amount, Knitwear products earned $15.18 billion, which is 10.40%
products to China until recently. higher than the $13.76 in the same period a year ago. Woven products earned
By increasing the import duty to 20 $15.42 billion, up by 7.18%, compared to $14.39 billion a year ago.
per cent, India hopes to decrease the On the other hand, India's textile and garment exports could rise 8 percent to
imports of textile products from $7 bil- $40 billion in 2018/19 due to a weak rupee and as the government is expected
lion to $6 billion in 2018/19. It is hoped to introduce incentives to boost overseas sales.
that China may not retaliate to the
Indian duty hikes as it still enjoys a
comfortable trade surplus with India. Indian Textile Trade Delegation visits
Bangladesh hopes to profit from Bangladesh
India's textile import tax hike
At the behest of Ministry of Commerce & Industry; Ministry of Textiles, Gov-
It is worth noting that India's imports ernment of India and Bangladesh Garment Manufactures & Exporters Asso-
of textile products from Bangladesh, ciation (BGMEA), the Cotton Textiles Export Promotion Council (Texprocil)
Vietnam and Cambodia have been ris- organised the visit of a Indian Trade Delegation led by Mr. Ujwal Lahoti, Chair-
ing in the last few years. This is mainly man, Texprocil to Dhaka, Bangladesh for meetings on 21st and 22nd July
because imports from these countries 2018. The Delegation consisted of 25 members representing 12 companies-
are not subjected to any duty in view mainly exporters of yarn and fabric.
of the fact that India has signed the
The objective of the delegation was to hold B2B meetings with leading Mem-
free trade agreements (FTA) with
bers of BGMEA & BKMEA who are interested to source imported fabrics and
these countries. Hence, the 20 per-
yarn for their consumption in manufacturing garments for export. Opportuni-
cent hike in duty will not be applicable
ties for supply of dyes and chemicals from India were also highlighted.
to products sourced from these coun-
tries due to the FTA. During their visit, the delegation interacted with leading garment manufactur-
ers both knitwear and woven in Bangladesh. The Bangladesh market offers
India’s decision to double tax on im- vast scope for increasing India’s market share in fabrics, yarns and even
port of textile products to curb im- home furnishings, provided consistent marketing efforts are undertaken on a
ports from China will benefit the continuous basis.
Bangladesh apparel industry "It’s a
good news for our apparel industry. It Meeting with BGMEA
will enable us to export more prod- At the B2B meeting, Bangladesh Garment Manufacturers and Exporters As-
ucts to India,” Bangladesh Garment sociation (BGMEA) President Mr. Siddiqur Rahman and Md. Nasir, Vice Presi-
Manufacturers and Exporters Asso- dent of BGMEA (Finance) participated actively along with a large number of
ciation Senior Vice-President Faruque leading Bangladeshi apparel exporters. In his welcome address, President of
Hassan, is reported to have said. BGMEA mentioned that there is scope to increase bilateral trade in Textile &
Clothing by another US$ 1 billion in a short span of time, if quality related
Industry observers say that in the last
issues and dispute settlement issues are addressed more efficiently.
few months Chinese fibre has been
shipped to Bangladesh and processed Mr. Ujwal Lahoti, Chairman Texprocil & Ms.Tseten Nordon Cargyal, Second
and exported to India with zero duty. Secretary and Head of Chancery of the Indian High Commission to Bangladesh
This makes it important for India to highlighted the opportunity for two way business in T&C trade between the
strictly monitor the Rules of Origin for two countries and need for enhancing the cooperation between BGMEA and
textile products while importing from Texprocil for mutual benefit in souring and supplying of textile and apparel
the FTA countries. Otherwise Chinese products.

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Mr. Siddiqur Rahman, President, BGMEA (4th from Left) and Mr Ujwal Lahoti, Chairman, Texprocil, (5th from
Left) leading discussions at the B2B meetings.
A large number of garment exporters
participated at the B2B meeting and
interacted with the Indian delegates
and showed keen interest in sourcing
cotton, yarn and grey fabrics for dye-
ing and printing.

Ms. Tseten Nordon Cargyal said, In-


dia-Bangladesh relationship has
grown exceptionally in the past few
years. Bangladesh’s garments export
to India has increased. Half of India’s
export to Bangladesh comprises of
raw materials and machinery used by
Bangladeshi industries, specially the
garment industries, she said adding
that, this meeting will create more
scopes of business interaction be-
tween the two countries.
Interactive meet between members of Bangladesh Garment Manufactur-
Meeting with BKMEA ers & Exporters Association BGMEA & members of Texprocil delegation
on 21st July 2018
B2B meeting was also organised with
Bangladesh Knitwear Manufacturers * At present 60% of their require- there is a big opportunity for India
Association (BKMEA) on 22nd July ment of yarn is met from domes- to supply more dyes and chemi-
2018 at their boardroom. Some of the tic sources. However, considering cals for use by the textile industry
leading importers of cotton and cot- the ongoing expansion in knitting, in Bangladesh.
ton yarn participated in the program weaving and garmenting capacity
to interact with the Indian delegation. in Bangladesh, 60% of the require- Some of the members of BKMEA,
Mr A.K.M. Salim Osman, MP, Presi- ment of yarn is likely to be im- who are also major importers of cot-
dent of BKMEA, in his welcome ad- ported in coming years. ton, yarn, dyes & chemicals attended
dress, emphasised the following key the B2B meeting with the Indian del-
* Bangladeshi apparel companies egation and showed keen interest to
points:
are developing their own brands increase their sourcing from India. Mr
* Consistent quality and steady and are keen to explore Indian A.K.M. Salim Osman, MP, President
prices of cotton & yarn from India market. of BKMEA also expressed keen in-
are important to maintain quality * Dyes & Chemical prices from terest in leading a composite delega-
standards and commitments to China (their main source of sup- tion (for both supplying & sourcing) to
their importers of apparel. ply) has gone up substantially and India in September 2018.

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Meeting with Deputy High Commis-
sioner of India
Dr. Adarash Swaika, Deputy High
Commissioner of India to Bangladesh
suggested that Texprocil should take
the initiative in promoting home fur-
nishing products also as the spend-
ing capacity among the common
household is increasing substantially.
He also mentioned that it is important
that such B2B meetings should be
held atleast twice a year in
Bangladesh to make any headway in
increasing market share in value
added fabrics and home textiles.
Market potential
Bangladesh is an important trading Shri Ujwal Lahoti, Chairman, Texprocil, (2nd from Left) called upon Dr.
partner for India, particularly in tex- Adarash Swaika, Deputy High Commissioner of India to Bangladesh (Cen-
tiles, owing to proximity, short lead tre), to discuss ways and means in increasing India’s market share in
time and cultural affinity between the value added fabrics and home textiles.
two countries. An analysis of the trade
plier of Yarns to Bangladesh, there is to get payments/remittance with
data shows that the total export of
a long way to go in increasing market minimum delay.
Apparel from Bangladesh is much
share in supply of fabrics for which
higher than that of India. In the year * Even though there is an increase
there remains good potential.
2017-18 Bangladesh imported US$ in spinning capacity in
6,098 million worth of fabrics (of all Price and nominated business are the Bangladesh, there is also a rapid
fibres), of which import of cotton fab- two decisive factors with regard to and simultaneous increase in
rics was valued at US$ 3,751 million. source of fabrics supply. To this, there garmenting, weaving and process-
Of the total import of cotton fabrics, is the important need to create aware- ing capacity.
import from India is only US$ 445 ness about the fabric supply capabil- * Owing to ongoing US – China trade
million (12 per cent) there by offering ity of Indian textile companies among relationship, it is expected that Chi-
a vast scope for increasing India’s the apparel manufacturers in nese investment will flow into
market share. Bangladesh. Bangladesh in a big way in the near
In order to meet the requirement of future. Already there are reports of
Observations
supply from up-stream industry, there Chinese companies shifting up
is a gap in domestic manufacturing in * Apparel manufacturers in large processing capacities to
Bangladesh owing to higher invest- Bangladesh are moving from Bangladesh, owing to stringent pol-
ment in apparel manufacturing than ‘forced compliance’ to ‘voluntary lution norms.
in the upstream value chain, although compliance’ factories in order to * Thus, looking ahead, in the com-
large scale investments are taking obtain orders from major brands ing year, demand for fabric for con-
place in recent years in weaving, pro- around the world. Hence, they version into garments in
cessing, and home textiles. need consistent quality of raw ma- Bangladesh is expected to in-
Whereas it is the reverse in the In- terial and long term commitment crease sharply and it is important
dian textile & clothing production value on consistent prices of cotton yarn for the Council to redouble its mar-
chain as we have higher capacity in and fabrics. keting efforts.
raw material and intermediary produc-
* Even though various incentive
tion than domestic requirement. Hence Changes in coastal shipping pact
schemes are available for apparel
demand – supply situation in the In- with Bangladesh to push transship-
exporters, most of the times pay-
dian textile value chain perfectly suits, ment
ment for Indian suppliers of yarn
with demand supply gap in
and fabrics are delayed by 6 Container shipping lines and port op-
Bangladesh, thereby making India a
months to one year. It is important erators are seeking a change in the
preferred source of suppliers.
to work through local agent or bilateral coastal shipping agreement
Even though, India is the major sup- have an own office (in Bangladesh) signed between India and Bangladesh

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to permit transshipment of
Bangladesh cargo from Indian ports. Amended Technology Upgradation Fund Scheme
The India-Bangladesh coastal shipping (ATUFS) Revised
agreement covers only origin-destina-
The Ministry of textiles, Government of India, has notified the Amended
tion cargo between the two
Technology Upgradation Fund Scheme (ATUFS) vide Resolution dated Au-
neighbouring countries.
gust 2, 2018. The said Resolution has laid down the operational and finan-
“We have started discussions with cial guidelines for the implementation of the ATUFS for the period from
authorities in Bangladesh to allow 13.1.2016 to 31.3.2022.
transshipment of their cargo from In- The Highlights of the revised ATUFS are as follows:
dian ports,” Capt Deepak Tiwari,
1. Those applicants who had applied for UID under RRTUFS before
Chairman of the Container Shipping
12.01.2016 but the UIDs could not be issued to them for non-availabil-
Lines Association (CSLA), said.
ity of funds, will be given one-time opportunity to apply for subsidy
“Chittagong port in Bangladesh is
under ATUFS. Textile Commissioner will issue a communication in this
heavily congested; so why not take
regard.
advantage of that,” he said.
2. Limited Liability Partnership Firms registered under LLP Act, 2008 will
For this, the Shipping Ministry will be eligible for the benefit of capital subsidy under ATUFS.
have to separately pursue an amend-
3. Cooperative Banks will also be the lending agency under the scheme.
ment to the pact. Garment cargo from
Bangladesh is currently sent to the 4. Specification of technology for the machinery for all the eligible seg-
UK via the transshipment hubs of ments would be prescribed annually in advance by the TAMC effective
Colombo or Singapore. from 1st April of the year.
5. Textile Commissioner will constitute a Technical Committee which will
It was reported that recently, India de-
assist the TAMC to prepare an indicative list of manufacturers of ma-
nied request from a major UK-based
chinery. This Committee will meet on monthly basis to update the list
retailer to transship its garment cargo
of machineries and manufacturers. This list will be suggestive and not
from Bangladesh through Chennai as
exhaustive or complete. Industry will be at liberty to purchase machin-
this was not allowed in the coastal
ery of their own choice conforming to the specified technology param-
shipping agreement.
eters subject to inclusion in the indicative list of manufacturers by the
According to Vinita Venkatesh, direc- TAMC.
tor, Krishnapatnam Port Container Ter- 6. Accessories, attachments, sample machines and spares procured from
minal Pvt Ltd., there is a case for re- other manufacturers enlisted in the indicative list will also be eligible
visiting the bilateral coastal shipping for subsidy up to a value of 20 per cent of basic cost of machinery.
agreement signed between India and
7. Unique Identification Number (UID) has been defined as provisional
Bangladesh to include transshipment
approval for estimated Capital Investment Subsidy based on the ten-
cargo as well.
tative estimates of specified machineries for technology upgradation.
To facilitate transshipment, Chennai 8. The revised ATUFS also has a clause that except in case of merger,
Customs has issued a notice stating acquisition, amalgamation or takeover of the entity, the plant and ma-
that coastal vessels will now get Im- chinery purchased with subsidy under TUFS shall not be disposed of
port General Manifest (IGM)/Export before 10 years of the date of purchase without prior approval of the
General Manifest (EGM) rotation num- Textile Commissioner.
ber for transshipment containers.
9. Advance payment up to the limit of his own share in the machine cost
Chennai Customs has also given
can be made by the applicant prior to the date of sanction of the term
green signal to sea-air transshipment
loan.
of cargo from Chennai to West Asia
based on a proposal from Orient Ship- 10. For ATUFS, purchase date shall be date when full and final payment is
ping Line. Besides, the Chennai Cus- made by the entity for machinery. In addition to the ATUFS benefits,
toms is evaluating the possibility of textile units would be permitted to avail benefits of the state
allowing transloading (re-stuffing into government’s schemes.
new containers) of Bangladesh gar- Grievance Redress Mechanism:
ment cargo for an exporter who wants
to transship the cargo to UK via i-TUFS has a grievance redress module. Grievances arising due to imple-
Chennai instead of Singapore, accord- mentation of the scheme will be redressed by Textile Commissioner in 30
ing to the media reports. days.

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India’s Widening Trade refund of accumulated Input Tax
Credit (ITC) at Fabric stage due to in-
Deficit with China – A verted duty structure is a big relief to
the textile sector.
Cause Concern for the
Indian Textile Sector – He futher stated that the rates cut on
Chenille fabrics and other fabrics un-
CITI Chairman der heading 5801 and Handoom dari
to 5% from 12% is a big win for the
In a press release dated August 3,
textile manufacturers who were reel-
2018, Mr. Sanjay Jain, Chairman, Con-
ing under immense pressure. It would
federation of Indian Textile Industry
further boost employment in the
(CITI) highlighted that the India’s huge
powerloom sector, as about 40,000
trade deficit with China is a matter of
textile workers have lost their jobs in
great concern. India’s trade deficit with
last one year and would prevent fur-
China has increased from US$ 51.1
ther job losses.
bn. in 2016-17 to US$ 62.9 bn in 2017-
Mr. Sanjay K Jain
18. India’s bilateral trade with China
Chairman of CITI & MD of T.T. Ltd. Mr. Jain also pointed out that allowing
was US$ 89.6 bn. in 2017-18.
quarterly filing of return for the small
cotton textiles industry are very thin,
taxpayers having turnover below 5
India exported US$ 1,362 mn. worth in single digit only. Therefore, the in-
crore as an optional facility will ease
of textile and apparel products to dustry is very sensitive to even small
out pressure on small businessmen/
China in 2017-18 while India’s textile changes. Hence, Mr. Jain said that if
merchants and is expected to give big
and apparel imports from China stood level playing field is given to India like
relief to about 93% of the over 10 mil-
at US$ 2,905 mn., indicating a trade its competitors, it can double its ex-
lion registered GST payers, from the
deficit of US$ 1,543 mn. It is perti- ports plus help in reducing trade defi-
complex procedures of filing monthly
nent to mention that during 2010-11 cit with China. CITI requests the Gov-
returns. He also praised the decision
to 2013-14, India was a net exporter ernment to push negotiations with
of levying GST on reverse charge
of textile and apparel products to China to give duty free access to In-
mechanism on receipt of supplies
China. However, after that India’s trade dian cotton textiles.
from unregistered suppliers should be
deficit with China is constantly in-
CITI Hails Refund of Accumulated applicable to only specified goods in
creasing.
ITC at Fabric Stage case of certain notified classes of
registered persons, on the recommen-
Mr. Jain stated that amongst the very
The GST Council held its 28th Meet- dations of the GST Council.
few items in which India is more com-
ing at New Delhi on July 21 and took
petitive than China is cotton based
a number of decisions that will give a Mr. Jain informed that CITI has been
textiles viz. yarn, fabric and made-ups.
major boost to the Indian economy. representing to the Government on all
However, our competing countries
the major issues concerning Textile
such as Vietnam, Indonesia, Pakistan
Mr. Sanjay K. Jain, Chairman, CITI, and Clothing Industry and also under-
and Cambodia enjoy duty free access
welcomed the decesion of refund of lined the fact that the Government has
to Chinese market while Indian prod-
accumulated credit on account of in- been very receptive while dealing with
ucts carry 3.5%, 10% and 14% duty
verted duty structure to fabric manu- the issues. He further pointed out that
on yarn, fabric and made-ups, respec-
facturers. He stated that it was the reducing GST rates on man-made fi-
tively.
need of the hour as fabric sector is bres and yarn is a long pending in-
Mr. Jain also pointed out that India was already facing a lot of difficulties while dustry demand apart from other GST
a market leader in cotton yarn but lost competing with its counterparts in in- pending issues and hoped, it would
almost 50% of its market to Vietnam ternational market. CITI has been con- further ease out pressure on the MMF
over last 3 years, creating excess sistently requesting to the government sector. The decisions taken in
capacity in the system. India’s cotton to give relief to the fabric segment as yesterday’s meeting are welcome
yarn exports to China has decreased for the overall growth of the textile steps and would help the entire manu-
by 53% from 2013 to 2017 while sector, fabric sector plays an impor- facturing and service sectors not only
Vietnam’s exports of cotton yarn to tant role and it also generates a size- to cover the lost ground but would also
China has increased by approximately able employment opportunities – 40 empower the Indian economy to un-
88% during the same period. jobs on 1 crore invesment – which is leash its true potential and achieve
more than any segment of the textile the target set out for the textile and
Moreover, the profit margins in the value chain. Hence, decision to allow clothing sector.

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CITI CDRA Initiative to
Train Farmers On Best
Practices to be Fol-
lowed While Cultivat-
ing Extra Long Staple
Cotton
CITI Cotton Development & Research
Association (CITI CDRA) - an exten-
sion arm of the Confederation of In-
dian Textile Industry (CITI) which un-
dertakes cotton development and re-
search activities - on June 26th, 2018
started work in Madhya Pradesh.
Four different spacing treatments of High Density Trials to determine
CITI CDRA inaugurated an initiative
best arrangement for achieving highest yield. CITI-CDRA officials under-
for cotton collaboration in the state of
take a major initiative to encourage cotton farmers to go for the cultiva-
Madhya Pradesh, starting from the
tion of more rewarding and profitable Extra Long Staple Cotton. Farm-
Ratlam district followed by another
ers are being trained for the best practices to be followed for the same.
inaugural event held on 5th July 2018
at Jhabua district (M.P) for training
cotton farmers on package of prac-
tices while cultivating Extra Long
Staple (ELS) cotton.

The event was attended by State


Government officials, from Agriculture
Department of districts of Ratlam,
Jhabua and Dhar, besides, Senior
Scientists from Krishi Vigyan Kendra’s
from these districts and representa-
tives of cotton traders, ginning and
pressing factories. The farmers were
given information regarding the mis-
sion and objective of the initiative.

Success stories of initiatives under-


taken in Rajasthan and Maharashtra
were also shared with the farmers.
Representatives from local Ginning
and Processing facilities assured the
farmers of improvement of their facili-
ties, which will result in increasing the
value of the cotton.

The farmers were also informed about


Pest and Diseases of Cotton and their
Management and were encouraged to
grow ELS varieties of Cotton and BT
Hybrids of Cotton. Representatives of
cotton traders assured farmers of a
fair deal while purchasing quality
kapas of ELS cotton.

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Inauguration of the ELS (Extra Long Staple) Cotton Project of CITI-CDRA in Ratlam, Madhya Pradesh
Mr. Sanjay Jain, Chairman, Confed- latest production, plant protection and quality, the performance of these cot-
eration of Indian Textile Industry (CITI) nutrient management technologies. tons was found to be encouraging and
stated that CITI undertakes cotton the production was increased. Mr. Jain
development and extension activities Mr. Jain highlighted that the initiatives is hopeful that such initiatives would
through its extension arm – CITI Cot- resulted in increase of cotton produc- help in increasing the yield of ELS
ton Development & Research Asso- tion in lower Rajasthan (project area) cotton and create awareness among
ciation (CITI CDRA). Since its incep- from 1.91 lakh bales in 2007-08 to the farmers regarding growing these
tion in 1970, it has been involved in around 13 lakh bales in 2017-18, an varieties. Thus, will impact the over-
various initiatives in different parts of increase of 581% and in overall all production of ELS cotton in the
India for improvement in yield and pro- Rajasthan, it increased from 9 lakh state and the country.
duction of cotton, creating awareness bales to 22 lakh bales for the same
among the cotton growers from the period, showing an increase of 144%. CITI-CDRA has similar Cotton Col-
project areas about the latest produc- The cotton yield in Rajasthan in- laboration Projects being implemented
tion, plant protection and nutrient creased 79% from 415 kgs of lint per in Maharashtra where the cotton grow-
management technologies and equip- hectare in 2007-08 to 744 kgs of lint ers were given information regarding
ping the farmers with technological per hectare in 2017-18. For the same sustainable growing of cotton, impor-
awareness for sustaining cotton pro- time period, average yield in project tance of preventing contamination,
duction and improving the economic areas was 863 lint/ha as compared to better use of fertilizers and modern
status. state average of 398 lint/ha. farming methods like high density
planting and drip irrigation.
Mr. P.D. Patodia, Convener of CITI- Thus, local textile mills dependence
CDRA pointed out that CITI-CDRA on other states for cotton requirement Mr. Patodia also mentioned, to pro-
has made strides in cotton develop- reduced from 80% to 20%, giving im- mote better farming techniques, CITI-
ment in Rajasthan through its initia- petus to Rajasthan textile sector and CDRA organizes Kisan Melas for cot-
tives in the State. It is set to com- also led to local farmer’s income in- ton growers. The cotton growers with
plete a decade (2008-09 to 2017-18) creasing substantially. the maximum yield are felicitated and
of its Collaborative cotton develop- awarded at Kisan Melas. Furthermore,
ment activities in rain dependent ma- Mr. Patodia also mentioned that as a the Kisan Melas are a platform for
jor cotton growing districts of Lower part of initiatives in Rajasthan, CITI- senior scientists in the field to com-
Rajasthan. CITI along with State Ag- CDRA in collaboration with Bayer municate with farmers and inform
riculture Department, Bayer Crop Sci- Crop Science, has embarked upon the them about the latest innovations
ence and regional Textile Mills Asso- project for promoting ELS cotton in made in the industry.
ciations conducted a Cotton Collabo- Banswara district for the last two
ration Initiative in rain dependent dis- years. Mr. Jain believes that such initiatives
tricts. The mission was to improve will help in improving the overall scene
cotton production and upliftment of A wide variety of ELS seeds were of cotton production in India. How-
cotton farmers. It conducted Front-line tested in various villages of Banswara ever, this is just a drop in the ocean,
Demonstrations for farmers in their district of Rajasthan and Ratlam dis- to make a big change, he urges, the
farms for the spread and adoption of trict of Madhya Pradesh. In terms of Government of India to conduct simi-

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NCM-AUGUST 2018
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NEWS BRIEFS
lar projects and invest extensively for The business model of a sericulture farmer works something like this.
research in development of cotton
seeds with better yield and productiv- The farmers usually buy silkworms from villages. For 100 eggs, Rs
ity. Industry is hopeful of TMC II be- 1,900 is paid, with each egg consisting of 600 silkworms of seven
ing started very soon to provide fur- days’ growth, which are stored in the sheds inside the farm. Construc-
ther impetus to cotton farming. tion of a shed costs Rs 1 lakh. The farmers feed the worms with mul-
berry leaves for 15 days, after which they are rested for three days.
Further, Mr. Jain emphasized to build After 18 days, the worms weave cocoons around them which are then
a Direct Subsidy based on remunera- supplied to reelers. They eliminate the worms through a heat process,
tion per hectare of land to cotton grow- preserve the silk threads and supply the same to weavers for making
ers rather than a market linked MSP saris.
system which distorts the normal
market flow and impacts quality, com- On an acre of land, 4,500 to 5,000 plants can be raised, from which 1
petitiveness and growth of the entire lakh cocoons weighing 100 kilograms could be harvested. Farmers
value chain which employs more than can make a profit in the Rs 10,000- Rs 45,000 range every 65 days. In
10 crore people (large percentage be- course of time, as the mulberries crop, the main feed for the silk worms
ing rural women). develops, the profit is likely to rise as high as Rs 75,000. The price of
cocoon is determined based on the amount of silk content in co-
coons.
Crash in Cocoon Prices
Rearing silkworms can be an economically viable enterprise as the
Crush Sericulture perennial crop can be grown four to five times a year. However, the
Farmers withdrawal of subsidy and other incentives provided by the govern-
ment have put farmers in trouble amid fluctuation in price and rising
According to media reports from input costs.
Mysuru, Karnataka, the slump in price
of cocoons — both crossbreed and from the villages in Kolar and low Rs 280 and Rs 50 for bivoltine
bivoltine hybrid — has left farmers in Ramanagara districts. According to cocoon if its price fell below Rs 350.
the sericulture-intensive Mysuru, farmers there, the cross breed (CB) The farmers, however, are demand-
Mandya, Ramanagaram and adjoining cocoon, which was selling at Rs 400 ing that the support price be hiked at
areas high and dry. The Hindu, in its per kg till April, is finding no takers least by Rs 60 and Rs 100 for CB and
July 15th post has reported the story even at Rs 210 per kg. The prices of bivoltine cocoons, respectively. Their
of a sericulture farmer from bivoltine too has dipped from Rs 600 demand is based on the fact that the
Ramanagaram, Mr. Ravi K. who used to Rs 320 per kg over a couple of cost of production has gone up since
to sell his superior quality bivoltine months. the Basavaraju committee decided on
hybrid cocoons for Rs. 550 a kg till the support price in 2015. They feel
According to TOI's July 18 post,
about two months ago. But now his that the new support price should be
Karnataka Sericulture minister Sa Ra
new crop of cocoons is fetching him in accordance with the changed mar-
Mahesh attributed the crisis to over
barely Rs. 320 a kg at the market in ket dynamics.
production in the current season. He
Ramanagaram. The decline in prices said while the Ramanagar market
has been attributed to poor demand The minister claims that even if the
used to receive 10,000 tonnes of co-
for raw silk. An official in the Sericul- support price is hiked by Rs 10, it’ll
coon a day, the daily inflow touched
ture Department has been quoted result in an extra burden of Rs 60 crore
17,000 tonnes in the first week of July.
saying: “About 35% of the reelers are on the government exchequer. "While
“The government has taken note of
staying away from the cocoon mar- the government is ready to compen-
the problem. The chief minister has
ket as the demand for silk from weav- sate the farmers in concurrence with
asked us to come up with a quick
ers has come down drastically. Since the Basavaraju committee report but
solution and we’re working on it,”
April, the price of raw silk has dropped farmers are asking for a little more.
Mahesh was quoted as saying.
from between Rs. 3,800 and Rs. 4,000 Since the CM is sympathetic, we’ll
to between Rs. 2,000 and Rs. 2,600 a The government is under pressure to take a call after considering the finan-
kg.” decide about the compensation to the cial implications,” the minister is
distressed farmers as per some re- quoted as saying. He also said: “We’ll
The crash in cocoon prices has taken vised norms. As per the 2015 formula, also write to the Centre to hike the
heavy toll on sericulture farmers in recommended by H Basavaraju Tech- custom duty on imported silk from
Karnataka who are under tremendous nical Committee, there is a provision 10% to 15% so that the locally pro-
stress due to their bank loans. Sev- for a support price of Rs 30 per kg for duced silk can compete with the pro-
eral suicides have also been reported CB cocoons if its price crashed be- duce imported from China.”

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NEWS BRIEFS

LG DOCTOR

The difference between stupidity and genius


is that genius has its limits. Albert Einstein

NCM-AUGUST 2018
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NEWS BRIEFS
Details of the Indian Textiles having Largest International Market
Minister Of State For Textiles, Shri Ajay Tamta, was asked a question in Lok Sabha about the details of the Indian
textiles having large international market; and the rate of growth of sales of these textiles during the last three years.
He gave the following list.

which will result in energy and cost Tamta, in a written reply in the Lok
MoT Launches SAATHI saving up to 10-15% in the first Sabha on August 2, 2018.
Initiative phase.
National Motor Replacement
Ministry of Textiles and Ministry of The IE (international efficiency) effi- Project (NMRP)
Power have joined hands under the ciency classes:
Motor Replacement Pilot Project
initiative SAATHI(Sustainable and IE1 = Standard Efficiency Background
Accelerated Adoption of efficient Tex-
tile technologies to Help Small Indus- IE2 = High Efficiency As part of the CleanTech program, the
tries) in order to sustain and acceler- IE3 = Premium Efficiency US based Institute for Sustainable
ate the adoption of energy efficient Communities (ISC) has partnered with
textile technologies in thepowerloom The use of these efficient equipments an energy efficiency venture arm of
sector and cost savings due to use will result in energy savings and cost India’s Ministry of Power, Energy Ef-
of such technology. savings to the unit owners at no ficiency Services Limited (EESL) to
upfront cost. Powerloom clusters at prepare for launch of its National Mo-
Energy Efficiency Services Limited Ichalkaranji, Bhiwandi, Erode, Surat, tor Replacement Project (NMRP).
(EESL), a Public Sector entityunder Bhilwara and Panipat have been iden-
the administrative control of Ministry tified for pilot study. Motors are a very common technol-
of Power, will replace old inefficient ogy in manufacturing; they contribute
electric motors with energy efficient This information was given by the approximately a quarter of industrial
IE3 (premium efficiency) motors Minister of State of Textiles, Ajay emissions, and Indian experts esti-

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mate that 80% to 85% of India’s cur-
rent industrial motors are the least
efficient IE1 rating. This market satu-
ration presents an opportunity to leap-
frog past the slightly more efficient
IE2 level all the way to the much more
efficient IE3 level, which is currently
the standard in countries such as
China, USA, and the European Union.

Under NMRP, EESL bulk purchases


a large amount of IE3 motors upfront,
and distributes the motors to Indian India’s manufacturing sector is rapidly growing, and with that growth comes
industries free of charge – recovering increased greenhouse gas emissions from a sector that already accounts
that upfront bulk purchase cost for more than a quarter of emissions from the world’s fourth largest emitter.
through the financial returns generated These smaller factories make up a substantial part of India’s manufactur-
from energy savings over a 12-18 ing sector, but often lack information about energy efficiency technologies.
month period. To significantly speed their adoption, ISC is supporting the demonstration
of proven energy efficiency technologies and training local energy efficiency
EESL’s phase one goal is to replace providers to provide ongoing services and technical assistance to SMEs at
120,000 motors with energy efficient scale. Drawing on the knowledge and insight gained through practical expe-
IE3 motors for a wide range of uses rience, ISC and its partners are contributing to the development of Indian
such as pumps, compressors, and government policies designed to increase resource efficiency in the indus-
drive systems. Based on the response trial sector, align with India’s COP21 commitments, and reduce carbon and
of phase one, EESL will ramp up the other harmful emissions in India.
NMRP to over 600,000 motors over
the next three years. SRTEPC Opens Regional Office In Ahmedabad
The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) inaugu-
ISC will assist EESL in their goal of
rated its Regional Office in Ahmedabad in the premises of Gujarat Chamber
scaling up the adoption of efficient
of Commerce & Industry (GCCI) on 11th July 2018. The opening function was
motors – by testing assumptions,
preceded by a Road Show to promote ‘Source India 2018’ among the leading
building the business case, educat-
textile businesses in Ahmedabad.
ing manufacturers, and driving de-
mand. With EESL, ISC is replacing Shri Murali Balkrishna, SRTEPC welcomed the audience on behalf of SRTEPC
30 motors in diverse small and me- and Gujarat Chamber of commerce & Industry. He thanked GCCI for their
dium enterprise use cases as a dem- support and co-operation and especially for providing space in their premises
onstration. These motors will be moni- for Council’s Regional Office in Ahmedabad. He also mentioned that SRTEPC
tored closely to develop the business has started office in Ahmedabad from 1st June 2018 for the promotion of
case for replacing inefficient motors, MMF Textile exports in Ahmedabad and north Gujarat area and to increase its
and EESL has agreed to set aside footprints among the MMF manufacturers and exporters in this region..
thousands of motors targeted to
Shri Sri Narain Aggarwal, Chairman, SRTEPC; Dr. Jaimin Vasa, President,
SMEs on completion of the pilot at
GCCI; Shri Anil Rajvanshi, immediate past Chairman, SRTEPC; Shri Hetal
ISC’s request.
Mehta, President SGCCI; Shri Sanjeev Saran, former Chairman, SRTEPC;
The pilot will: Smt. Mena Kaviya, Chairperson, Textile Committee, GCCI; Shri Dhiraj Shah,
Regional Chairman, SRTEPC and Shri Ambar Patel, Secretary, GCCI were
Use rigorous methods to confirm that present at the Function.
motor upgrades actually save money.
If motor upgrades do save money, In his inaugural address, Dr. Jaimin Vasa, President, GCCI welcomed the
determine how much on average could dignitaries, the audience and representatives from media on behalf of GCCI
be saved. on this momentous occasion of inauguration of SRTEPC’s office at GCCI
premises. He mentioned that Textile industry is one of the oldest industries in
Using that savings data, build a busi- India and the biggest employer after agriculture sector. He stated that India is
ness case for motor replacement strong in both natural fibers-cotton and jute as well as man-made fibers –
(quantum and payback period after polyester and nylon. He further mentioned that India is 4th largest manufac-
EESL provides an initial investment turer of synthetic fiber yarn of which Gujarat produces 38% of man-made
in the replacement). filament fabrics and 31% of man-made fiber. He said that Surat is the largest

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EMBEE

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producer of Man-made fabrics with 40% share and has
daily production of 30 million mtr of raw fabrics. He opined
that with such strength in synthetic fiber sector, SRTEPC
is the only apex organization for promotion of exports of
fiber, yarn, fabrics, made ups, home textiles and techni-
cal textiles and helps its members understand the market
trends, international market exposure, attend buyer seller
meets and avail various incentives. He also remarked that
SRTEPC is having its presence in Gujarat through its Re-
gional Office in Surat. He added that due to heavy invest-
ment in world class manufacturing plants, continuous in-
novation, new product mix and strategic market expan-
sion, Indian man-made fibers are set to take center stage
in global arena. He observed that although the textile In-
dustry contributes 4% in India’s GDP, 7% of India’s In-
dustrial production and 15% of country’s exports and In-
dia being the 2nd largest producer of polyester and vis-
cose in the world. India ranks only 6th in exports of MMF
Shri Sri Narain Aggarwal, Chairman, SRTEPC along
textiles. He also expressed his willingness to support
with Dr. Jaimin Vasa, President, GCCI inaugurating
SRTEPC whole heartedly in its various activities. He
Council’s office in Ahmedabad
briefed about their Exhibition Farm to Fashion which was
organized in May 2018. He also congratulated Council for
organizing Reverse Buyer Seller Meet, “Source India 2018”
and appealed to all the members to spread the word about
this event so that maximum number of people can take
benefit of this exhibition.
Shri. Anil Rajvanshi, Immediate Past Chairman in his Key-
note address thanked Dr. Vasa and GCCI for providing
this opportunity and the space to open a Regional office
of council in their premises. He mentioned that Gujarat is
a hub of man-made textiles. World’s biggest producer of
polyester and viscose are in Gujarat; considering the pres-
ence of industries like Grasim, Reliance and Surat Indus-
Shri Sri Narain Aggarwal, Chairman, SRTEPC speak-
try manufacturing 3 to 4 cr mtr, Gujarat is one of the big-
ing at the Meeting in Ahmedabad
gest centers of MMF textiles. He said that the contribu-
tion of MMF textiles market share is 73% in the world and
India’s share is still less as we are still considered as a
producer of cotton and it is still our basic raw material. He
remarked that MMF textiles is basically a fabric of com-
mon man and it is the only material which could provide
fabrics at the cheaper rate. He added that 60% of the
people prefer to wear polyester clothe and with increasing
per capita income the spending pattern is shifting towards
fashion clothing which is possible by MMF textiles. Con-
sidering these facts, he said that the association of
SRTEPC and GCCI will surely be very beneficial.
Shri. Sri Narain Aggarwal thanked all the dignitaries of A view of the Road Show at Ahmedabad
GCCI and other members. He briefed about SRTEPC and production up to 14% every year. He urged the members
the importance of MMF textiles segment in Indian textile to work hard towards achieving this target, He added that
industry. He mentioned that the current value of textile the Government will definitely support and co-operate the
industry is US$110 to US$120 billion and the Government’s MMF textile industry in achieving this target and there is
vision is to achieve the target of 350 billion USD by 2024- a huge scope to increase the textile business. He further
2025. He further stated that at present exports are to the stated that to enhance exports, buyers are invited to In-
tune of US$40 billion and the Government has set a tar- dia and exporters’ can also visit foreign countries to show-
get of US$150 billion for which there is a need to increase case their products with the help of SRTEPC and GCCI.

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