08 January 2022, Mumbai:

The clothing industry's concerns over escalating cotton and cotton yarn prices, as well as representations waiting for government action, are growing. As a result, on the 17th and 18th of January, the Tirupur clothing sector will go on strike.

Dr. Rikhab C. Jain, Chairman of TT Limited and a member of many industry groups, has once again addressed the problem and issued a letter to all hosiery and garment associations, including the AEPC.

"The problem of increasing cotton and cotton yarn prices remains unaddressed, despite representations to the Prime Minister, Textile Minister, Textile Secretary, and other relevant agencies."

Even yesterday, the Textile Ministry issued a warning to certain sector stakeholders as well as speculators, but speculators reacted quickly, and the MCX rose by 500 points or more in less than a minute.

"They have not responded appropriately to warnings, and speculators have concluded that, if any, government action would not have a big influence on them," Dr. Rikhab said in a statement.

He stated unequivocally that speculators, dealers, and cotton merchants have gained a fortune. According to the MCX analysis, the whole textile chain gained greatly during FY 2020-21.

This is a false assertion. Yes, the textile chain up to the spinning component has made super-super profits that they could never have imagined even a century ago. It is obvious from the above statement that spinners, cotton dealers, cotton ginning firms, and maybe farmers and speculators have profited from the fabric, powerloom, handloom, garment, and home textile segments.

They've put the entire textile chain, from fabric forward, on a rocky ride that has to be stopped right away. Speculators' actions must be curtailed immediately by prohibiting cotton trade access in any manner, both legally and informally.

He demanded that it be stopped right away by banning commodities trading on the MCX. Such infringing speculators must be dealt with harshly.

"I think this will aid in the resolution of the situation by the government's rigorous restriction of cotton trading on the MCX and NCEX, as well as swift action," he added. Other important trade associations, including CITI, SIMA, and TEA, have already spoken out against cotton trading on the MCX and NCEX.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

07 January 2022, Mumbai:

In a dark warning, a Maharashtra government-appointed panel has warned that any move by the Centre to slash or withdraw import duty on cotton could benefit Pakistan-China and prove detrimental to the Indian agro-economy by spurring farmland suicides.

The Vasantrao Naik Sheti Swavalamban Mission (VNSSM) President Kishore Tiwari has sent a memorandum to Prime Minister Narendra Modi on the issue, requesting that before taking any decision to revoke import duty on cotton, the plight of the Indian cotton farmers should be borne in mind.

DAIJIWORLD (The news article has not been edited by DFU Publications staff)

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

07 January 2022, Mumbai:

The predominantly cotton based Indian textile industry revived on a fast track after the second wave of COVID pandemic taking advantage of the various relief measures, various pro-active policy initiatives taken by the Government and spurt in demand both from the domestic and international market.

But unfortunately, the skyrocketing cotton price has stalled the potential growth of the textile value chain and is causing uncertainties under the current market scenario. The Cotton price that prevailed at Rs.37,000/- per candy of 355 kgs during September 2020, increased to Rs.60,000/- during October 2021. During November 2021, the price varied between Rs.64,500/- and Rs.67,000/-.

The cotton price reached its peak level of Rs.70,000/- per candy on 31st December 2021.

The price of Gujarat Sankar-6 cotton is now ruling at Rs.10,062/- per quintal as against the Minimum Support Price (MSP) of Rs 5,975/- per quintal.

During the last two cotton seasons, the Cotton Corporation of India (CCI) had procured around two crore bales under Minimum Support Price. As the kapas price is ruling much higher than the MSP during the current season, CCI was not able to procure any cotton in this season.

The Indian cotton price has been fluctuating in tantamount with the international cotton price (New York Index and Cotlook A Index) till February 2021. Consequent to the levy of 5% BCD, 5% AIDC and 10% Social Welfare Cess on both amounting to 11% import duty on cotton in the Union Budget 2021-22, the Indian cotton price started ruling higher than the international price for the first time, making the exports uncompetitive resulting in hardships for the exporters in fulfilling the export commitments and taking further orders.

In a Press Release issued here today, Mr. T.Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI), has appealed to the Hon’ble Prime Minister to remove the import duty levied on Cotton immediately and help the highly labour and export intensive textile industry to gain global competitiveness and prevent the industry from crisis.

Mr. Rajkumar reiterated the continuous plea made by the textile industry since February 2021 on removing the import duty on cotton, as the same had never affected the farmers as the industry had been predominantly importing speciality cotton including Extra Long Staple cotton, contamination-free cotton and sustainable cotton as the same are not produced in our country to fulfil the requirements of the nominated business customers on a long-term basis.

As the kapas price is ruling highest in history, the farmers are not bringing the cotton to the market resulting in short supply and surge in kapas price. Mr. Rajkumar has stated that though the price increase is greatly benefitting the cotton farmers, the industry is not able to pass on the hike to the end customers as the domestic cotton price has exceeded the international price.

CITI Chairman said that the highly capital-intensive spinning sector, though had been retaining the same yarn price for some time hoping for a reduction in cotton prices during peak arrival season, had to increase the yarn price gradually, as the good quality cotton has surpassed Rs.73,000/- per candy of 355 kgs.

Mr Rajkumar has stated that the spinning mills would have normally built three to four months of cotton stock by the end of December, but the steep increase in price has made the mills maintain less than one month of inventory.

CITI Chairman has stated that the increased rainfall during cotton plucking time has seriously affected the cotton quality causing an acute shortage of good quality cotton for the Indian exporters. He has said that the Rd value, the cotton brightness indicator is around 65 as against over 70 during the earlier seasons.

Mr. Rajkumar has stated that cotton arrival during December, January normally would be 2.3 to 2.5 lakh bales per day and the same is ranging only from 1.62 to 1.8 lakhs per day during the current season. CITI Chairman has pointed out that only around 121 lakhs bales had arrived in the market as on 31st December 2021 as against 170 to 200 lakhs bales that normally arrive in the market during the earlier seasons.

Mr. Rajkumar has stated that the arrival of 121 lakhs bales indicates a short supply of cotton for building good quality cotton inventory to meet the export quality requirements as the consumption for three months would be around 85 lakhs bales with around 10 lakh bales for export, around 15 lakhs bales for the work-in-progress of the agriculture market, ginning and transport resulting in lower cotton stock level in all the mills.

He has stated that as the farmers are holding the cotton, the mills have started facing a shortage of good quality cotton. Therefore, CITI Chairman has pleaded with the Hon’ble Prime Minister to remove the import duty levied on cotton as the domestic cotton price has exceeded the international price and the kapas price is ruling around 65% higher than the minimum support price.

CITI (The news article has not been edited by DFU Publications staff)

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

06 January 2022, Mumbai:

INTEREST SUBVENTION SCHEME - 3RD DECEMBER 2021 The Tirupur Exporters Association (TEA) has urged Union finance minister Nirmala Sitharaman to extend the interest subvention scheme for post and pre-shipment export credit.

The Centre offered 5% interest subvention for MSMEs and 3% for non-MSMEs on the loans over the last five to six years. The interest equalisation scheme was up to September and the Centre didn’t extend it.

“While 95% of the readymade garment exporting units are in the MSME sector, interest subvention is essential to sustain in the business at a time when raw material prices, accessories and job working charges have increased significantly,” TEA president Raja M Shanmugam said on Wednesday.

“While the interest rate in banks is around 7-8%, it is much lower in countries like Bangladesh and Myanmar, which are competitors in textile export. Interest subvention created a level-playing field for MSME exporting units.

Competing countries are also enjoying the duty-free status in EU and UK markets unlike India,” Shanmugam said. As there was no announcement on interest subvention after September, banks started collecting full interest, Shanmugam said and sought extension of the scheme with retrospective effect from 1st October for another two years.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

08 January 2022, Mumbai:

Sweden-based fast fashion brand H&M has entered the metaverse space by launching a new virtual store. The metaverse connects artists, athletes, and other digital content creators with their fans in a virtual universe.

Located in Ceek city, the new virtual H&M store allows customers to roam around and buy clothes. However, these garments can only be bought with the Ceek currency and are available for trial in the digital world only, as per a Lifestyle Asia report.

In this world, all the payments will be made through CEEK coin -- a metaverse coin project built on the Ethereum blockchain.

Additionally, one can also buy these clothes from the physical store using Ceek currency. The apparel bought in the metaverse will be worn by digital avatars in the synthetic universe.

Customers would soon also have an option to purchase these clothes from physical stores across the globe soon. With this store, H&M became the first metaverse clothing retail store in the metaverse.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

08 January 2022, Mumbai:

The government recently took some bold steps to address tax and raw material issues in the textile industry. First, it brought the entire textile value chain under GST net and also removed the anti-dumping duties on polyester raw materials, polyester fiber and acrylic fiber.

Further, it introduced the RoDTEP scheme to refund the applicable and embedded taxes apart from extending duty drawback benefits to refund all the taxes and levies and thereby enhance global competitiveness.

Another important decision is the introduction of 5 per cent BCD, 5 per cent AIDC and 10 per cent social welfare cess on both totaling 11 per cent on cotton imports in the Union Budget 2021-22.

However, the industry immediately protested against this and urged the government to roll back its decision as it imports only 5 per cent of the total cotton consumed by the industry.

International volatility leads to spike in domestic prices

In cotton season 2021-22, India’s opening stock stood at 75 lakh bales while estimated crop reached 360 lakhs bales.

Unprecedented volatility inIndia Review duty on cotton imports urges international cotton prices led to the skyrocketing of domestic prices while pent up demand in the post-COVID period led to skyrocketing prices.

The situation was further stimulated by the US sanctions on Xinjian cotton that accounts 10 per cent of the world cotton production. Dominated by large traders, the Indian Commodity Markets MCX and NCDEX also fuelled the market.

Ravi Sam, Chairman, The Southern India Mills’ Association states, the Indian cotton textile industry was at an advantage as cotton prices reduced by around 10 per cent during the cotton season -- from December to March.

Prices of cotton seed surged from the beginning of the season. Price of Gujarat Shankar-6 cotton increased to Rs 8,930 from Rs 6,788 per quintal on October 1, 2021 while prices of good quality kapas increased from Rs 7,575 to Rs 10,760.

Import duty erodes market competitiveness For the first time, Indian cotton price zoomed ahead of in

ternational prices due to the imposition of import duty on cotton which eroded market competitiveness of the exporters.

Price of Indian cotton price increased by Rs 10 to Rs 15 per kg for the last two months and the situation is likely to aggravate. Due to this, exporters have been unable to confirm export orders usually finalized during the December-January period, leading to the diversification of orders to competing nations.

The premium of good quality cotton is 5 to 7 per cent higher than low quality cotton. Due to this, mills have been unable to procure this cotton even for the daily use, posing a huge threat to the entire textile value chain.

Therefore, SIMA urges the government to remove the 11 per cent import duty on cotton and cotton waste and also remove cotton from MCX and NCDEX features.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage