- The latest U.S. Department of Agriculture (USDA) cotton estimates for 2017/18 project global cotton ending stocks to rise 3 percent from the previous season’s 5-year low to 92.4 million bales. With world production expected to exceed consumption, global stocks are forecast to increase 2.8 million bales by season’s end, as higher stocks outside of China in 2017/18 more than offset China’s anticipated decrease.
- Domestic Outlook
- 2017 U.S. Cotton Production Estimate Lowered in October
- According to USDA’s October Crop Production report, 2017 U.S. cotton production is estimated at 21.1 million bales, 3 percent below last month’s forecast but still 4 million bales above the 2016 crop. Both harvested area and yield were reduced this month, lowering the U.S. production estimate by 640,000 bales.
- The U.S. upland cotton crop is forecast at 20.4 million bales, well above last season and one of the largest upland crops on record. During the previous 20 years, the October estimate has been below final production 11 times and above it 8 times; the October forecast equaled final production in 1 year.
- Past differences between the October estimate and final production indicate that chances are two out of three that the 2017 U.S. upland cotton crop will range between 19.4 million and 21.4 million bales.
- Upland cotton production is forecast to increase in each of the Cotton Belt regions this season. In the Southwest, the 2017 upland crop is forecast at nearly 10.2 million bales, 1.4 million bales above last season as the largest harvested area since 1981 is projected to more than offset a slight decrease in yield.
- Southwest abandonment is expected to reach 15 percent, nearly double the rate in 2016 but below the 5-year average of 25 percent. The Southwest yield is estimated at 757 pounds per harvested acre in 2017, compared with last season’s 764 pounds.
- In the Southeast, 2017 cotton production is projected at 4.8 million bales, 1 million bales above each of the last two seasons as planted area rebounded to match the 5year average of 2.5 million acres.
- Meanwhile, the region’s yield is estimated at 928 pounds per harvested acre, which is above 2016 and the 5-year average, despite losses associated with the remnants of Hurricane Irma, which passed through the Southeast in September.
- In the Delta, the cotton crop is forecast at 4.4 million bales, the largest since 2011 as area expanded to a 5-year high and yield is projected near the record set in 2014. Cotton area harvested in 2017 is estimated at 1.9 million acres, 500,000 above the 5-year average. The yield is also expected to improve, reaching 1,112 pounds per harvested acre, the second-highest on record.
- In the West, the upland cotton crop is forecast at 953,000 bales in 2017, up from last season and the highest in 5 years. Additional area this season more than offset a decrease in yield, which is forecast at 1,510 pounds per harvested acre and near the 5-year average.
- The extra-long staple (ELS) cotton crop—grown mainly in the West—is forecast at 727,000 bales in 2017, the highest since 2012; ELS area is at its highest since 2011, while the yield of 1,441 pounds per harvested acre is similar to the average over the last 4 seasons.
- Total 2017 U.S. cotton harvested area is estimated at 11.4 million acres, compared with 9.5 million acres last season. The national yield is projected at 889 pounds per harvested acre, slightly below the record set in 2012. For current production estimates by State.
Vertically integrated textile company Arvind Ltd on Tuesday signed a MoU with the Gujarat government to set up a Rs 300 cr mega apparel facility in the state. The facility in Dahegam will produce over 24 mn garments once it is fully operational.
Following a recent announcement by the Government of Gujarat with regards to the Garments & Apparel Policy 2017, Arvind Limited, one of India’s largest textile to retail conglomerates, headquartered in Ahmedabad, signed a memorandum of understanding with the Government of Gujarat (GOG) to establish a mega apparel factory. The 300-crore project in Dahegam will produce over 24 million garments once it is fully operational.
The MOU was signed by Gujarat Chief Minister Vijay Rupani and Arvind Ltd’s EDs Kulin Lalbhai and Punit Lalbhai. “The Gujarat apparel policy will have a far-reaching impact on helping the state forward integrate into apparel manufacturing and develop vertical solutions for global brands. This progressive policy from the Gujarat government will go a long way in making Gujarat a hub for the end-to-end textile and apparel value chain,” said Punit Lalbhai.
Kulin Lalbhai said: “We plan to commence commercial production in the 4th quarter of 2018 and we plan to create 10,000 jobs, a majority of which will be women. We are excited to support the Gujarat Apparel policy whose aim is to create 1,00,000 jobs in Gujarat. We are confident that with such a conducive policy Gujarat will emerge as a major destination for garmenting.”
Sutlej Textiles and Industries Ltd (STIL) has announced the acquisition of design, sales and distribution business and brand of American Silk Mills (ASM) LLC based at Plains, Pennsylvania. The acquisition of American boutique designer and distributor of residential and contract furnishing textiles will add strength to Sutlej’s home textiles portfolio.
- However, ASM will continue to design, develop and market its products under the brand name of American Silk Mills thus furthering its legacy as a leader in this field for over 120 years.
- Founded in 1896, ASM is amongst the oldest and most established American textile brands which designs, weaves and distributes innovative textiles for the residential, contract, transportation, and specialty markets. These products include innovative indoor/outdoor performance fabrics, fine jacquard textiles, multiple grades and styles of velvets, the highest quality silks, and Sensuede, an eco-friendly synthetic suede noted for its durability, cleanability and long-lasting comfort.
- ASM offers strategic fit on its strength of original designs based on American sensibilities, innate understanding of customer markets and a unique product portfolio that include dobby, jacquards, velvets, suedes using variety of fibers like rayon, linen, cotton, polyester, silk and acrylic.
- “American Silk Mills offers great synergy to access the American home textiles market using a sound platform of design and development combined with Sutlej’s scale and economics of production in India,” said SK Khandelia, president, STIL, in a press release.
- “We are excited to partner with Sutlej Textiles,” said Cynthia Douthit, president of American Silk. “Increased investments in our infrastructure, inventory positions, technology and creative capital will position us to continue as a design leader, allow us to service our customers more efficiently and create and source enduringly beautiful textiles.” (RKS)
- New Delhi, Oct 18: Rajya Sabha MP Sharad Yadav on Wednesday said people were feeling 'completely depressed' and 'alienated' this festive season, reflecting the economic situation following demonetisation and GST.
- He claimed that people were also feeling unsafe due to the activism of 'communal forces' in the name of 'gau raksha', 'ghar vapsi' and love jihad over the last three years. 'On the occasion of festive season, especially Diwali, it is for the first time in independent India people are completely depressed, and feeling unsecured and alienated.
- It is a reflection on the economic situation of the country which has been adversely affected after demonetisation and later GST,' he said in a statement. There is a lull in markets, Yadav added. Traders and small businessmen were unhappy as their business was down, said the former JD(U) chief, who parted ways with the party following differences with Bihar Chief Minister Nitish Kumar.
- While farmers were crying for remunerative prices for their produce, consumers were also facing the bite of price rise in the country, Yadav said. The Modi government, he said, was not passing on benefits of a fall in global fertilizer prices to farmers.
- For consumers, the prices of most services have gone up as they are now taxed at 18 per cent from the earlier 15 per cent. The government was not concerned with the grievances of the masses, Yadav said in the statement.
- According to him, the government should not be too concerned with fiscal deficit. 'Heavens will not fall if the fiscal deficit increases, but at least our people should feel comfortable in their own country,' he said, asking the government to take measures to help people.
- The festive season is on but unlike before, Sushil Aggarwal, owner of Ghaziabad, Uttar Pradesh-based Avon Modplast, a moulded plastic furniture manufacturing company has yet to see a jump in sales. Orders from rural and semi-urban parts of North India remain subdued. Capacity utilisation is hardly 40 per cent. "Consumers are confused, and sentiments are down", complains Aggarwal.
- Animesh Saxena, who runs Neetee Clothing, an apparel export unit in Gurugram, Haryana says the supply chain in the apparel and textile sector is in trouble with the introduction of the Goods and Services Tax (GST) regime. "Unless urgent measures are taken, a revival of textile exports seems very difficult," he warns.
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- Sunil Harzai, of Noida-based Sidharth Exports, an established leather products manufacturer believes discriminative tax policies are turning the sector non-competitive. His sales are down 35 per cent and capacity utilisation 40 per cent.
- It was the macro-level impact of problems highlighted by the likes of Aggarwal, Saxena and Harzai - among the millions operating Small & Medium Enterprises or SMEs across the country - that was high on the agenda of the re-constituted Prime Minister's Economic Advisory Council (EAC) on 11 October and the 22nd meeting of the GST Council on October 6.
- With first quarter GDP growth figures at 5.7 per cent - the slowest in three years - fixing the economy was top priority for the government. The focus areas of the EAC, chaired by Niti Aayog member Bibek Debroy, include economic growth, job creation, informal sector, patterns of consumption and production, among others. It is focusing on critical interventions to accelerate economic growth and employment over the next few months, with greater social and financial inclusion, based on rigorous analysis.
- The GST Council meet focused on the problems of small units. Finance minister Arun Jaitley did not disappoint. The GST council eased the compliance burden on small and medium businesses and exporters through fewer tax filings, reduced rates on 27 items, talked about introducing an e-wallet system by April 1 for faster input credit, and deferring some provisions.
- THE WISE FIVE: The EAC acknowledges the slowdown and is working on recommendations to fix it
- Jaitley was not just trying to fix problems faced by small businesses alone. He had a much bigger problem to fix - a slowing economy at a time when the global economy was showing some signs of growth.
- Earlier, on September 28, Jaitley got central public sector undertakings (PSUs) to commit an additional Rs 25,000 crore capital expenditure plan, over and above the Rs 3.85 lakh crore budgeted in 2017/18, to bolster economic growth. The task before the entire government and political leadership today is to fix the economic health of the economy and do that quickly.
- A Business Today survey indicates (see Rock Bottom) sentiments of the business community were never so low. It confirms observations made by the Reserve Bank of India's (RBI) industrial outlook survey which said there is waning optimism during July-September 2017 about demand conditions across parameters, especially on capacity utilisation, profit margins and employment.
- Many analysts, think tanks and research bodies have reduced India's growth outlook for the year. The Economic Survey forecasts GDP growth to at the lower emd of the 6.75 - 7.5 per cent band. The World Bank revised India estimates from 7.2 to 7 per cent; the RBI believes it will be 6.7 per cent and Morgan Stanley revised its forecast to 6.4 per cent from 7.6 per cent. Almost every rating agency and equity advisory firm tracking the Indian economy has made a downward correction of the country's 2017/18 growth projections. The most optimistic estimates now peg annual GDP growth to a tad below 7 per cent this fiscal.
- Economic growth has fallen sharply because GST has created a scare among people, SUSHIL AGGARWAL Avon Modplast (Photo: Shekhar Ghosh)
- WHAT IS WRONG?
- All major engines of economic growth - private investment, private consumption, exports, agriculture and even government expenditure - have either failed to pick up momentum or slowed down. In urban areas, construction and real estate - one of the biggest employment generators - has stalled. In rural areas, the 4.1 per cent agriculture and allied sectors growth in 2016/17 did not result in comparable improvement in farmer incomes.
- India's economic worries didn't begin today. PM Modi inherited a shaky economy that he couldn't mend in the last three years. Though economic growth looked up briefly for a year after he took charge, the slowdown started even before demonetisation happened.
- Even when Modi took charge in 2014, private investment, consumption and exports, were registering weak or negative growth. Private investment never picked up as there was excess capacity and many were laden with debt. The government's attempt to clean up the banking system by introducing bankruptcy laws only aggravated the short term crisis. Further, demand for products or rate of private consumption was very low resulting in idle capacities. Part of the rural slowdown had to do with tepid growth in agricultural income. Bad monsoon and low prices crippled the rural economy.
- Indian textile exporters are facing difficult times since the past few months which have led to constrained growth as well as pressures on profitability, which has been aggravated by a strong rupee. Exporters have been facing subdued demand trends in the key importing countries as well as intense competitive pressures from nations such as Bangladesh and Vietnam over the past few years. In addition, unfavourable currency movements and high raw material prices in the past six to nine months as well as recent revision in duty drawback rates have only added to their woes. With exports accounting for more than one-third of the Indian textile market, this is a matter of concern, notwithstanding a large domestic market, says a new report from ratings firm ICRA.
- The slowdown in apparels segment has mainly been on account of subdued demand conditions in key textile-consuming regions of United States of America (US) and European Union (EU) which account for a majority of exports from India. This apart, cotton-yarn exports have been under pressure on account of a decline in demand from China, which used to account for more than 40 per cent of total cotton yarn exports from India till last year and accounted for only around 17 per cent of India's cotton yarn exports in the first four months of FY2018. India appears to be the worst-affected nation amongst cotton-yarn suppliers to China, as is evident in a decline in India's share in China's cotton yarn imports to 8 per cent in Q1 FY2018 vis-a-vis 20 per cent and 25 per cent in Q1 FY2017 and Q1 FY2016, respectively.
- The pressures on textile exporters have become more severe with strengthening of Indian Rupee against currencies of key competing nations during the current calendar year, which reduced competitiveness of Indian exporters vis-a-vis their counterparts.
- Jayanta Roy, Senior Vice-President and Group Head, Corporate Sector Ratings, ICRA says, "Notwithstanding the 2 per cent depreciation in the Indian Rupee vis-a-vis the dollar in the month of September 2017, the Indian Rupee sustained its strong performance against currencies of most of the countries competing in the global textile space during much of the current calendar year."
- While the Indian currency has strengthened by around 5 per cent against the dollar in the eight months of calendar year 2017, currencies of other key nations competing in the textile space such as Vietnamese Dong, Bangladeshi Taka as well as Pakistani Rupee depreciated by around 0.5-2 per cent against the dollar during the same period.
- Further, higher input prices (primarily cotton) this year vis-a-vis last year put pressure on the profitability pressures for exporters during H1 FY2018, given the dominance of cotton in textile exports from India. While cotton prices have corrected to an extent from mid-September 2017 onwards which is expected to provide respite during H2 FY2018, recent revision in duty drawback rates is likely to exert some pressure on margins. The Government of India has recently notified revised duty drawback rates under the GST regime which are applicable to exporters with effect from October 2017 onwards. There is a downward revision in duty drawback rates for most product categories in the textile sector under the GST regime, when compared with duty drawback rates for exporters claiming Cenvat under the earlier tax regime.
- "Considering that GST rates for most product categories in textiles are in line with effective tax rates under the earlier tax regime and the extent of benefit from improved input credit chain post GST implementation remains to be seen. The overall impact of GST and the revised duty drawback rates on the sector is uncertain at present." Adds Roy.
- Notwithstanding the pressures being witnessed on profitability, debt levels across the sector are expected to decline with the industry focusing on sweating the existing assets and thereby undertaking limited debt-funded capacity additions. Further, with cotton prices easing out from mid-September 2017 onwards, profitability pressures are likely to subside from Q3 FY2018 onwards. As a result, ICRA expects the financial and credit risk profiles of most textile exporters to remain stable.
- new Delhi. After the commencement of the goods and services tax (GST), prices of sorts have increased in hotels and restaurants. However now can get some relief. According to sources, the levy levied on the restaurant can be 18 per cent to 12 per cent. Explain that this change has been proposed by a group of State Finance Ministers
- Currently, in addition to those under composition scheme, where the burden of compliance is low, tax rate of air-conditioned restaurant is 18%, while 12% on non-AC joints. An official said, "There will be only two slabs but the final decision will be taken by the GST Council."
- Customers remain bullish on buying bullion and silver at bullion shops According to the order, lots of jewelery sold. Women bought different types of necklaces. When someone sleeps, someone bought a silver coin and played the tradition of Dhanteras. Silver Ganesha and Lakshmi, including utensils, were also sold very well. At the same time, there was a fair mela on the city's bike showrooms. This time scooters of all the companies that came in the new look were sold more. With lightness, children, elderly and women can run them.
- Designer Pratima Pandey, who has signed a memorandum of understanding with the Indian government to support weavers of the country, feels that India has a lot of options in textiles and crafts, and wants people to understand that "we are not a fashion country, but a textile one".
- Pratima of the brand Pramaa works with some of the weavers in and around India. She says that as a responsible designer, she understands why it is important to promote weavers and textile, and give them the right platform.
- "We are not a fashion country, we are textile country... a country which celebrates whatever we do so, let that happen. Fancy is great, but this (weaving) is also an art," the designer told IANS on the sidelines of the ongoing Amazon India Fashion Week Spring-Summer 2018 where she showcased her collection titled 'Leela'.
- "There are things that we have to know that we have it. It's just that now we need to go out and tell the world that we already have it so please don't hamper it," she added.
- Her brand specialises in fusion garb with Indian sensibilities, and the emphasis of the label is on the natural fabric and natural dying techniques along with designing for a cause by encouraging craftsmanship and sustainability.
- Talking about her journey in the industry, she said: "When you are a graduate (of NIIFT) then obviously you are looking for something to work on, and I just knew that I have to work with Indian textiles."
- "I started with bhagalpuri silk then went on to chikankari and then regular silk. One season, I had no money so one of my friends came as a blessing in disguise. He said 'Listen, I just shut down my place and I have lot of chanderis with me. I think you will do justice'. I remember him showing to me lots of chanderis that were kept in his car."
- "It was like I had no money to buy textile, but the textile came to me. I think sometimes the fabric finds you. If you pick up something then master it. I think you can become master of something only if you try to reinvent it everytime," she added.
- The designer also feels that Indian people "very strangely" understand the taste of chanderis and other weaves, but they don't know how to find it.
- "And this is when we come in very handy. As a textile, chanderi wasn't very popular when I started off."
- "I just signed an MoU with the government to uplift Indian textiles. I said 'I am an expert in chanderi'. They asked me to go beyond that so, I started using maheshwari," she said.
- Finance Minister Arun Jaiti arrived in Washington on Sunday, said Arun Jaitley, "There is a lot of courage needed for reforms like law, GST, notebooks related to banks' bankruptcy, due to which India is today being praised globally. is. Arun Jaitley said that, for the last 3 years, the whole world economy has declined in the whole world, but India's economy is growing. For this reason, strict measures have been taken for economic reform, due to this it can be possible.
Arun Jaitley further said that all the finance ministers of the Congress-ruled states are supporting GST, but the party is protesting against the opportunity. He said that now the results of Gujarat elections will only tell who the people are supporting. All the people know the consequences of the Uttar Pradesh elections that have been postponed.
Speaking on the relations between India and America, Arun Jaitley said that PM Modi's recent visit to the United States has strengthened the relations between the two countries. Indians who come to America with the H-1B visa or want to get it, are very decent and well-educated. They also contribute to the US economy going forward. If Indians are concerned about H-1B visas, we have informed the American government about it
- Cotton Outlook: Stocks Outside of China Rising in 2017/18
19 Oct 2017
- Arvind Ltd to set up a Rs 300 cr mega apparel facility in Gujarat
19 Oct 2017
- Sutlej Textiles adds American Silk Mills to its portfolio
19 Oct 2017
- Sharad Yadav says people depressed, business down in Diwali
19 Oct 2017
- Why Modi, Jaitley will take time to get Indian economy back on track, restore high GDP growth
20 Oct 2017
- Strong rupee hits textile exporters hard
20 Oct 2017
- GST may be a major shift, the government has given signals
18 Oct 2017
- Gart is afraid of markets in Diwali
18 Oct 2017
- India Not A Fashion, But A Textile Country: Designer Pratima Pandey
18 Oct 2017
- 'Who is with the people on the GST?' Will know after election '
17 Oct 2017