04 January 2022, Mumbai:

As per the Preliminary Data for December 2021, India’s merchandise export in December 2021 was USD 37.29 billion, the highest ever monthly achievement, which shows an increase of 37.0% over USD 27.22 billion in December 2020 and an increase of 37.55% over USD 27.11 billion in December 2019.

Piyush Goyal, Union Minister for Commerce and Industry, Textiles, Consumer Affairs, Food & Public Distribution called it a historic achievement and attributed it to the leadership of Prime Minister Shri Narendra Modi. He also congratulated all the EPCs, exporters and Indian Embassy officials all across the globe for contributing to this historic achievement.

India’s merchandise export in April-December 2021 was USD 299.74 billion, an increase of 48.85% over USD 201.37 billion in April-December 2020 and an increase of 25.80% over USD 238.27 billion in April-December 2019.

India’s merchandise import in December 2021 was USD 59.27 billion, an increase of 38.06% over USD 42.93 billion in December 2020 and an increase of 49.7% over USD 39.59 billion in December 2019.

India’s merchandise import in April-December 2021 was USD 443.71 billion, an increase of 69.27% over USD 262.13 billion in April-December 2020 and an increase of 21.84% over USD 364.18 billion in April-December 2019.

The trade deficit in December 2021 was USD 21.99 billion, while it was 143.97 billion USD during April-December 2021.

PIB 

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

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04 January 2021, Mumbai:

Despite objections from a number of business groups, the government continues to believe that increasing the Goods and Service Tax rate on footwear will reverse the inverted duty structure and result in lower consumer pricing.

According to unidentified government sources, the new GST rates on footwear would serve to expedite commerce and encourage ease of doing business, as well as result in lower footwear prices for Indian customers.

Different GST rates for different prices of footwear generated the inverted duty structure, with 5% GST on footwear priced below Rs 1,000 ($13.41) and 12% GST on footwear priced beyond Rs 1,000. The inversion of duty was caused by the fact that numerous raw materials used to create footwear are subject to 18 percent GST.

According to government officials, "the inversion in tax structure obliged the producers and suppliers to file refunds of accrued input tax credit." "The compliance load and expenditures have grown as a result of this."

The government had intended to raise the GST on a number of types of clothes and textiles to 12% on January 1, but deferred the decision, with the exception of footwear, due to strikes and protests by a number of industry groups. According to reports, the rate hike would be enforced for these groups after the 2018 Congress elections.

"The Council has decided to revisit the entire issue of GST rates in the textile sector and has referred it to the Group of Ministers for detailed examination," according to the sources.

"After detailed discussions on the representations received from the textile sector and the state government of Gujarat, the Council has decided to revisit the entire issue of GST rates in the textile sector and has referred it to the Group of Ministers for detailed examination."

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04 January 2022, Mumbai:

Pioneer Embroideries Limited (PEL), a leading manufacturer of Specialty Polyester Filament Yarn (SPFY), is on track with its expansion plans. 

The SPFY business accounts for about 90% of the company's sales, with revenues of around Rs. 127.40 crore in the first half of the current fiscal year. Embroideries, torchon/bobbin laces, raschel laces, and other clothing accessories are among the company's products. 

The business said in a filing that it had already placed a substantial equipment order with a German manufacturer of quality textile extrusion equipment, together with advance payments, to ensure delivery by Q3FY23. The equipment was mostly funded by a German bank.

Construction on the site adjacent to the company's existing production factory in Kala Amb (Himachal Pradesh) is well underway, with the foundation work done. The company has spent over Rs.7.50 crore on capital expenditure to date, which is currently paid through internal accruals and is in the process of negotiating financial closure with its lenders. 

PEL intends to expand its position in newer categories such as home textiles and technical textiles, and will predominantly manufacture POY (Partially Oriented Yarn) and DTY (Draw Textured Yarn)-based specialty textile goods as a result of this expansion. 

These non-apparel items are in high demand in both the domestic and foreign markets.

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In spite of rising cotton prices, cotton yarn prices of major varieties remained stable in Mumbai and Tiruppur markets amid poor demand from downstream industry. Though spinners were quoting yarn prices at higher levels, sluggish demand did not support any hike in prices.

Upstream businesses are also feeling the pinch of weaker demand for garments.

In the Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,820-1,944 per 5 kg and ₹1,620-1,680 per 5 kg respectively. 80 count carded cotton yarn of weft variety was quoted at ₹1,850-1,880 per 5kg, while 46 count carded cotton yarn of weft variety was sold at ₹1,600-1,640 per 5 kg. 

“Prices remained unchanged as demand remained weak. Spinners were quoting higher prices as cotton prices went up in the last two weeks, but they were unable to raise the prices due to poor demand from fabrics,” a Mumbai-based broker told Fibre2Fashion.

Ahmedabad-based veteran businessman Ramesh Chhabaria explained the stress in the entire value chain caused by higher cotton prices. “Finished fabric buyers are not willing to pay higher prices despite price rise in grey fabric. 

The price of 40/40/132/72/63" poplin went to ₹106 per metre from ₹92 per metre in just two weeks. First two weeks of January will continue to see sluggish trend, and demand is expected to rise after Makar Sankranti/Pongal (January 14) when summer clothing production will begin.``

In the Tiruppur market also, cotton yarn prices remained steady due to weaker demand. Cotton yarn of 30 count combed was traded in Tiruppur at ₹330-335 per kg, 34 count combed at ₹340-345 per kg, and 40 count combed at ₹360-365 per kg. 

Cotton yarn of 30 count carded was sold at ₹292-295 per kg, 34 count carded at ₹300-310 per kg and 40 count carded at ₹330-335 per kg, according to Fibre2Fashion’s market analysis tool TexPro. 

Currently, buyers are adopting a wait-and-watch policy and demand is expected to pick up after Pongal, which is a very important festival for the entire southern India.

In the cotton trade, domestic markets witnessed an upward price trend due to higher demand from spinning mills. The prices increased by ₹200-500 per candy of 356 kg each in various markets.

Meanwhile, ZCE cotton yarn January 2022 futures traded higher by CNY 5 at CNY 26,960 per ton, and May 2022 traded higher by CNY 225 at CNY 27,505 per MT today. 

ICE cotton futures edged higher on Thursday on strong demand outlook. Cotton contracts for March 2022 closed at 114.34 cents, up 135 points; May 2022 closed at 111.44 cents, up 107 points; December 2022 closed at 92.29 cents, up 64 points.

Fibre2Fashion  (The news article has not been edited by DFU Publications staff)

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Times Bureau 

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

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04 January 2022, Mumbai:

A Textile Park will be built on 20 acres of land in Karkala, Minister for Handlooms, Textiles and Sugar Shankar Basanagouda Patil Munenakoppa said on Friday.

“Government will implement schemes helpful to weavers in the park,” informed the minister after listening to the grievances of weavers from Udupi and Dakshina Kannada districts in the meeting convened at Udupi Weavers Primary Co-operative Society in Udupi on Friday.

He also revealed that the government had submitted a request to the Centre on setting up the ‘mega textile park’ in the state.

He said there was a huge demand for Udupi handloom and sarees. The weavers here have succeeded in meeting only 20% of demand.

He said a textile technical team will be deputed to Udupi to study the problems and challenges faced by the weavers.

The minister emphasised skill development programmes while observing that the youth were totally disillusioned with the art of weaving.

Shankar said the government is providing many incentives to weavers across the state.

He promised to meet the chief minister in order to discuss launching skill development programmes for young weavers. He also emphasised the need to financially empower weavers so that youth find it profitable.

“Weavers will be also considered as farmers and all schemes for farmers, including Vidyanidhi scheme, will be extended to weavers,” he said.

The minister also promised he will help a delegation of weavers to meet the chief minister.

The sector needs to be improved in order to prevent youth from migrating elsewhere, he added.

‘New Ethanol policy’

In order to help sugar factories make Ethanol, the government is planning to implement a new Ethanol policy on Monday, said the minister.

A team of experts have visited Uttar Pradesh, Madhya Pradesh and Maharastra to study how Ethanol can be produced from sugarcane, paddy and jowar.

Those venturing into the production of Ethanol will receive incentives and subsidies. Thus the production of Ethanol will not only generate employment but will also benefit farmers and revive sick sugar industries. Ethanol produced will be purchased by the government and sold to HPC, BPC, he said.

Responding to a query, he said Brahmavar Sugar Factory is a cooperative unit. He will discuss reviving the factory with officials. To another query, he said new initiatives are being taken to bring textile and Khadi together in order to develop both sectors.

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

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31 December 2021, Mumbai:

BSL, formerly Bhilwara Synthetics, has set aside Rs 150 crore for expanding cotton spinning capacity at its facility in Rajasthan, with a revenue target of Rs 700 crore for the fiscal year 2023-24, according to a company spokesman. 

BSL's Managing Director Nivedan Churiwal told PTI that the capital expenditure (capex) will also help enhance sales and profitability.

"We're focusing on revenue, growth, and a healthy bottom line," he said, adding that the company will invest Rs 150 crore to boost cotton spinning capacity at its factory in Bhilwara, Rajasthan. In the fiscal year 2020-21, the company generated about Rs 321 crore in revenue from operations. 

According to Churiwal, it has inked an MoU with the Rajasthan government, which would provide fiscal incentives in the form of interest subsidies.

BSL features verticals for tailoring, furniture, and yarn spinning. According to a corporate spokesman, suiting accounts for roughly 60% of annual income, whereas furnishing is the most successful area of business. 

Exports make for roughly two-thirds of total revenue, with domestic sales accounting for the remainder, according to Churiwal. Due to the COVID-19 epidemic, the corporation had to decrease employees and rationalise costs in the first quarter of the previous fiscal, he added.

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