- The Nigerian Textile Manufacturing Association (MTMA) lobbied for a ban on export of cotton from the country. MTMA’s Acting Director-General, Hamman Kwajaffa, points out such restriction was required as locally produced cottons are just enough for manufacturers of textile materials in the country. Kwajaffa spoke at a public hearing organised by the Abubakar Moriki led House of Representatives committee on industry considering a Bill for an Act to establish the national cotton, textile and garment (CTG) development council and standardization in CTG value chain and ways to achieving CTG self sufficiency in Nigeria.
- Kwajaffa described the move to establish the CTG development council as a step in the right direction since it would create a suitable environment for the economy to grow. Stakeholders in the garment industry have welcomed the plan to establish CTG, as it would boost cotton production in the country.
- Decrying the reliance on imported fabrics by Nigerians, she said it was unfortunate that Nigeria is yet to reap the benefits derivable from the African Growth Opportunities Act (AGOA) due to the reverses suffered by the textile and garment sector of the economy over the years.
- A new scheme for selling cotton to textile enterprises will appear in Uzbekistan starting from next year.
- The corresponding decree was signed by Uzbek President Shavkat Mirziyoyev, podrobno.uz reported.
- “Starting with the harvest of raw cotton in 2018, as an experiment, the system of ordering and advancing the production of raw cotton directly from farms and other agricultural producers by domestic textile enterprises will be introduced,” the presidential decree said.
- Over the years, enterprises purchased raw materials from the monopoly supplier Uzpahtasanoatexport.
- According to the new order, textile enterprises will finance the basic costs of farming to grow raw cotton by advancing at least 60 percent of the contract’s value.
- All delivered raw cotton should be used only for further deep processing and production of finished competitive products, the document noted.
- The price for raw cotton purchased by enterprises will be established on a contractual basis based on an analysis of actual costs and profitability of farms.
- At the same time, it should not be lower than the cost of cotton purchased for state needs. Therefore, the president instructed the government to establish government procurement prices for the “white gold” harvest of 2018 until January 15, 2018.
- Enterprises of the textile industry sell cotton seeds to fat-and-oil enterprises, additional products -- to other consumers through exchange trades. This year Uzbekistan collected more than 2.9 million tons of raw cotton.
- President of Uzbekistan Shavkat Mirziyoyev also signed a decree on liquidation of the Uzbekengilsanoat joint-stock company.
- Thus, the head of state supported the proposal of the textile industry enterprises, the shareholders of the Uzbekengilsanoat JSC and a number of other departments on the establishment of the Uztekstilprom Association. At the same time Uzbekengilsanoat JSC, which combined state regulatory and economic functions, is liquidated.
- As indicated in the document, the current system of management of the industry does not meet the current trends in the development of the textile industry and is not capable of supporting producers.
- Uzbekengilsanoat includes 436 enterprises, which makes up only 6 percent of their total number. The activities of this society basically comes down to collecting statistics, holding various meetings, organizing exhibitions. Its organizational form also does not correspond to the legal status of the joint-stock company.
- The experience of foreign countries has shown that one of the most effective forms of development of the textile industry is the creation of clusters. This model implies the organization of a single production cycle, which includes the cultivation of raw cotton, primary processing, further processing at cotton ginning enterprises and the production of final textile products with high added value.
- Proceeding from this, the special Working Commission was entrusted to develop a draft Concept of development of cotton-textile clusters for the medium-term perspective, taking into account the results of the organization of similar clusters in the Bukhara and Navoi regions.
- Along with this decree, measures to support textile industry enterprises, including the provision of privileges for customs payments are envisaged.
- The Pakistan Textile Exporters Association (PTEA) has lauded the government’s initiatives to reverse the negative growth in exports as the country’s shipments recorded over 7% growth in October 2017.
- “Immediate availability of regionally competitive energy prices, release of pending refunds and a fast-track implementation of the export growth package will further boost the growth in exports,” it said.
- Contrary to perception, foreigners find Pakistan safe
- PTEA Chairman Shaiq Jawed appreciated efforts of the government to arrest the persistent decline in exports, but at the same time underlined the need for further reforms by removing impediments in the way of export growth.
- Expressing satisfaction over 7.12% rise in textile exports in October and 7.72% increase in July-October, he said the growth could be increased further by addressing the remaining challenges.
- High cost of production was a major stumbling block as the cost of energy inputs had reached an alarming stage, making the country’s products uncompetitive in the international market, he added.
- Comparing gas prices with regional peers, he said gas tariff in Bangladesh was $3 per million British thermal units (mmbtu), $4.2 in Vietnam and $4.5 in India whereas in Pakistan gas was available at $7.6 per mmbtu and re-gasified liquefied natural gas at $11 per mmbtu.
- A stitch in time on the subway line is becoming profitable for a New York City man.
- Former “American Idol” contestant Frenchie Davis was riding the train in Brooklyn on Nov. 21 when she spotted a bearded man knitting, The New York Daily News reported. Davis, who acted in the Broadway production of “Rent,” snapped a photo of Louis Boria and posted it to Facebook, noting that “This brotha on the train is my hero today.”
- The photo went viral, and boosted the sales of Boria’s company, Brooklyn Boy Knits, which he formed in 2009. To accommodate the sudden surge in orders, The 42-year-old Brooklyn resident said he was hiring two more knitters and revamping his website.
- “For the first time in 10 years, I have pending orders,” Boria told the Daily News.
- “I’m a fast knitter, but I’ve been telling customers to give me a three- to four-week delivery time.”
- London - As the fashion industry heads towards a future where textile resources are scarce, natural fibers such as cotton, which remains a resource-intensive material, and petroleum-based fibers like acrylic, polyester, nylon, and spandex remain high in demand. But as the production of these fibers continues to cause irreversible damage to our environment, more and more companies are seeking out an alternative, sustainable fibers, and fabrics. In this series, FashionUnited explores the future possibilities offered by sustainable innovations in the textile and fashion industry. In this installment, FashionUnited examines the new, more responsible option to viscose - EcoVero.
- Viscose, which is also known as rayon, has been used to make soft, silky fabrics, luxurious feeling fabrics. Made from purified cellulose, it is produced from specially processed wood pulp and is often compared to silk and cotton. However although the fabric made from this fiber may be beautiful, viscose remains a semi-synthetic, chemical fiber. Often the timber used to for the wooden pulp stems from irrigation-intensive monocultures, which negatively impact the earth. Large amounts of highly toxic chemicals, such as carbon disulfide are used during the production of viscose, which has led to a number of worker poisonings. In addition, shipping the cellulose-based fiber around the globe also increases the level of Co2 emissions, making it a harmful fiber.
- New Delhi:Inward shipments of cotton yarn, man-made yarn and fabric have gone up dramatically post GST from July, textile industry body CITI said on Monday.
- In a statement, the Confederation of Indian Textile Industry (CITI) said it has requested commerce and textile ministries to raise import duty on man-made fibre (MMF) yarn, cotton fabric and MMF fabrics by 15 percent to ring-fence local yarn, fabric and garment producers from the threats of cheaper import, especially from FTA nations such as Bangladesh and Sri Lanka.According to data shared by CITI, the import rose during July, August and October, but September figures were not available.
- India's MMF yarn import hit $14.97 million in July as opposed to $8.92 million in the same month last year.
- Cotton fabric import showed the same trend, up at $12.81 million in July against $8.84 million last year. MMF fabric import stood at $8.27 million compared to USD 6.36 million in July 2016. Similar conditions prevailed in August.
- The overall import of textile yarn fabric and made-up articles stood at USD 153.9 million in October as against $ 137.31 million in the previous year.
- "The government recognising the problem and threat of imports flooding the market has recently increased import duty on MMF Fabric from 10 percent to 20 percent. However, the import duty on MMF yarn and cotton fabric have been kept at the old rates," CITI Chairman Sanjay Kumar Jain said.
- Jain held that the current scenario is impacting domestic yarn and fabric producers and garment manufacturers.
- Trade body Cotton Association of India (CAI) has threatened to go one day protest on December 15, followed by an indefinite strike against Reverse Charge Mechanism if the GST council does not resolve the issue in its meeting scheduled on December 21.
- All members present at the meeting decided that, they would go on one day token protest against RCM on 15th December 2017 and thereafter on an indefinite strike in their respective states by closing shutters from 22nd December 2017 if the issue of RCM was not resolved in the next meeting of the GST Council which is scheduled to be held on 21st December 2017.
- Cotton Association of India (CAI) convened a joint meeting of the upcountry associations of all cotton growing states in Mumbai this week to deliberate on the issue of Reverse Charge Mechanism (RCM) under GST and to chalk out strategy of finding out a solution to this vexatious problem in close coordination with each other.
- CAI has about 70 ginners enrolled as its members and therefore, this meeting was convened to understand the problem of RCM also from the ginners’ perspective. The meeting was chaired by Atul S. Ganatra, President, CAI.
- The plight of the entire cotton sector across the country and the issue of pending refunds to exporters since July 2017 on account of GST were deliberated at the meeting. Ravinder Reddy, President, Telangana Cotton Millers & Traders Welfare Association highlighted the damage caused to the crop and heavy losses suffered by the farmers due to pink bollworm and uncertain rains in Telangana. Reddy added that this matter was engaging the active attention of the state government. Manjeet Singh Chawla, President of Madhyanchal Cotton Ginners & Traders Association pointed out that due to RCM, huge funds of ginners were blocked and since cotton seed buyers and the buyers of cotton bales were not paying GST, this has led to blockage of huge funds of the ginners.
- The pace of cotton trades was weak in the Brazilian market at the beginning of the second fortnight of October and, thus, prices oscillated slightly then. Purchasers and sellers showed low interest in trading, for both prompt and long-term deliveries. Therefore, the few trades involved small volume batches. The low supply of quality cotton underpinned prices in the Brazilian market in that period.
- Cotton growers were focused on the accomplishment of contracts and affirmed they would only make cotton available in the spot market after accomplishing these contracts. Thus, the few batches available referred to low quality cotton, not approved by purchasers. Low availability of cotton and international values oscillations, in turn, drove many sellers away from the market in that period.
- Between September 30 and October 31, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, decreased slightly 0.68%, closing at 2.5073 BRL (0.7872 USD) per pound on October 31.
- Trading companies, in turn, were not very active in the domestic market in the second fortnight of the month, attentive to the drops at the New York Stock Exchange (ICE Futures) and to Cotlook A oscillations.
- The Ministry of Commerce and Textile has prepared a summary to highlight the problems and irritants confronted by the textile sector and it will be presented to the National Assembly to pave the way for immediate relief and sustained growth of the critical industry, State Minster for Commerce and Textile Haji Akram Ansari said on Monday.
- Speaking to members of the All Pakistan Textile Processing Mills Association, he emphasised that he was fully aware of the challenges faced by the textile sector and was trying to address them.
- “However, many of these issues are linked with other ministries and in an attempt to solve them, we will arrange meetings of textile sector representatives with senior officials of these ministries,” he said.
- Ansari said he had already brought the delay in release of tax refund claims and abuse of discretionary powers by tax officers to the notice of Special Assistant to the Prime Minister on Revenue Haroon Akhtar Khan, who vowed to resolve the problems on a priority basis. Responding to a question about gas infrastructure development cess (GIDC), he requested the association chairman to nominate two or three representatives for discussion on the levy.
- Association Chairman Khalid Habib Sheikh outlined the problems afflicting the textile processing industry, saying high cost of doing business, GIDC, sales tax on coal import, turnover tax, withholding tax and stuck tax refunds had hurt profits of the sector.
The GST Council today hiked the threshold limit of the composition scheme that allows small businesses to pay taxes at a lower rate without getting any input tax credits.
Businesses with an annual turnover up to Rs 1 crore can now opt for the scheme, Finance Minister Arun Jaitley told reporters. The earlier threshold limit was Rs 75 lakh. About 15.5 lakh companies with a turnover of less than Rs 1 crore have joined, he said.
The increase in threshold would bring in many more small businesses within its ambit and decrease the compliance burden for various businesses that were previously hit by the lower threshold, said Rashmi Deshpande, associate partner at Khaitan & Co. However, to make the scheme really effective it needs to be liberalised by including all service providers and allowing them to provide inter-state supplies, PwC said in a statement.
The attractiveness of this scheme will come down to whether a big manufacturer is willing to buy from a dealer without getting any credit, said Badri Narayan, lawyer and partner with law firm Lakshmikumaran & Sridharan told BloombergQuint.
One of the problem they still face is that the composition scheme is not working as well as it is supposed to. Partly because businesses want input credit on all of the inputs they're making. The minute you're on a composition scheme you do not get any input credit at all. This is one of the reason why many people have not gone into the composition scheme. It looks attractive on paper. Badri Narayan, Partner, Lakshmikumaran & Sridharan
Under the scheme, traders, manufacturers and restaurant owners have to pay a GST rate of 1 percent, 2 percent and 5 percent of their turnover, respectively. Those who opt for this can file returns quarterly, compared to every month earlier.
The GST Council also allowed other taxpayers with a turnover of up to Rs 1.5 crore to file quarterly returns. A Group of Ministers headed by Bihar Finance Minister Sushil Modi will examine and submit recommendations in two weeks.
The GoM will look into:
- Inter-state supply of goods for those who avail the Composition Scheme.
- Sale of exempted goods by traders availing the Composition Scheme.
- Whether input tax credit can be availed if tax is paid at 2 percent.
Read all the highlights of the GST Council's decisions here .
- NIGERIA APPROVES MTMAS BAN ON COTTON EXPORT
23 Jan 2018
- Uzbekistan reforms its cotton, textile industry
16 Dec 2017
- Textile industry demands reforms to further boost exports
12 Dec 2017
- Subway in stitches: NYC man knitting on train is no yarn
08 Dec 2017
- Sustainable Textile Innovations: EcoVero, an alternative to viscose
06 Dec 2017
- Sharp Rise in Imports of MMF Yarn, Cotton Fabric Post GST, Says Textile Body
05 Dec 2017
- Cotton traders to go strike against RCM under GST
01 Dec 2017
- PRICES OSCILLATE SLIGHTLY IN BRAZIL DUE TO REDUCED SUPPLY OF QUALITY COTTON
20 Nov 2017
- NA to discuss textile industry’s challenges
15 Nov 2017
- Threshold For GST Composition Scheme Increased To Rs 1 Crore
06 Oct 2017