NEWS BRIEFS
Punjab Apparel & Tex-
tile Conclave 2018 held
in Ludhiana
Minister for Industries and Commerce
Punjab Mr Sunder Sham Arora said
that very soon, Punjab would have the
best industrial policy amongst all
states of the country. He said that the
Punjab government is committed for
the welfare of industrialists and that
is why, it is being prepared in consul-
tation with all stakeholders.
Government of Punjab in partnership
with Confederation of Indian Industry
(CII) as institutional partner, Northern
India Institute of Fashion Technology
(NIIFT) Mohali as academic partner
and Wazir Advisors as knowledge
partner hosted the Punjab Apparel &
Textiles Conclave at Hotel Park Plaza,
in Ludhiana on July 13. Mr Sundar
Sham Arora was the chief guest on
the occasion, while MLAs Mr. Rakesh
Pandey, Mr Surinder Kumar Dawar
and Mr. Sanjeev Talwar were the
guests of honour. Mr RK Verma, IAS,
Principal Secretary Industries & Com-
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.
merce and Mr DPS Kharbanda, IAS,
Director of Industries and Commerce
and other top officials were also
present on the occasion.
While addressing the industrialists,
the minister said that the new indus-
trial policy will emphasise mainly on
small and medium industry and would
be ready in next 8-10 days time. He
exhorted the entrepreneurs to come
forward and invest in the textile sec-
tor and promised that all facilitation
and incentives will be given to them
by the state government as per the
new Industrial Policy. He mentioned
that the Department would conduct a
number of such conclaves of all im-
portant sectors of the industry, iden-
tified in the Policy.
He also announced that the next Con-
clave on the Logistics Sector would
be held on August 3, 2018 at
Ludhiana. The Minister said that the
objective of this Conclave was to un-
derstand the dynamics of the Textile
Value chain from Fibre to Apparel so
as to identify the gaps in the value
chain which would initiate necessary
government interventions to fill these
NCM-AUGUST 2018
79
gaps. The takeaways of the Conclave
would be used for fashioning an ap-
propriate strategy and way-forward in
terms of Policy provisions by the State
Government.
The Minister stated that ever since
the Congress came to power in
Punjab, different industrialists have
invested more than Rs 9300 crore in
the state. He said that no industrial-
ists are shifting their base to other
states now and this could be known
from the fact that 55 industrial units
that had closed down in Mandi
Gobindgarh few years back, are now
operational. Besides, the state gov-
ernment has also given employment
to 1.61 lakh unemployed youth under
its Ghar Ghar Rozgar scheme.
The minister urged the industrialists
to follow all the set norms and as-
sured that they would not be harassed
unnecessarily by officials from any
government department if they have
fulfilled them. He stated that the VAT
refund would be issued to all parties
by December 2018.
On the occasion, Mr Arora announced

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
coming up in Ludhiana. He also an-
nounced that once cleared by the
cabinet, the medium units with high
load would also get electricity at Rs 5
per unit.
The Minister said that for boosting
investment in the state, a single win-
dow system has been set up at the
Deputy Commissioner Offices, where
approval for investment of up to Rs
10 crore would be granted in a hassle
free and transparent manner.
While interacting with industrialists
from Ludhiana as well as other parts
of the state, Mr Sunder Sham Arora
stated that the Punjab government
has a positive approach towards in-
dustries and that is why, our industry
is now flourishing day by day. On the
occasion, even the industrialists as-
sured the minister of all possible sup-
port and said that they would keep on
investing in the state.
The conclave was divided into four
sessions, namely “Creating Eco Sys-
tem for Making Punjab’s Textile Indus-
try Competitive”, “Brand Building &
Multi Channel Approach to Retail”,
“Making Punjab Ready for Technical
Textiles” and “Making Punjab Ready
for Technical Textiles”. The Minister
also released a report on the Apparel
and Textile Industry prepared by Wazir
Advisors.
Prominent among those present on
NEWS BRIEFS
Mr Sunder Sham Arora speaking at the Punjab Apparel and Textiles Con-
clave
the occasion included Mr Rajinder Gupta, Chairman Trident Group, Mr D.L
Sharma, Director, Vardhaman Textiles Ltd, Mr. Prashant Agarwal Joint Man-
aging Director Wazir Advisors, Mr Iqbal Ahmed, Deputy Director, Textiles,
Office of Textile Commissioner, Amritsar, Smt. Mridula Jain, Chairperson, Shawl
Club of India & Managing Director, Shingora Textiles Ltd, GMDIC Mr Mahesh
Khanna, besides several others.
The one-day Conclave organised by the state government proved to be ben-
eficial for boosting investment in Punjab. During this conclave, MoU’s worth
Rs 455.34 crore were signed between the state government and 9 prominent
industries.
These industries included Vin Gon India Pvt Ltd (Rs 150 crore), Fateh Alloys
Pvt Ltd (Rs 110.84 crore), First Reliable Industries (Rs 50 crore), Aribha
Knitwears (Rs 50 crore), Rotaxa Auto India Pvt Ltd (Rs 39.5 crore), Fateh
Alloys Pvt Ltd (Rs 25 crore), Mount Meru Industries (Rs 10 crore), Ferro Sona
Garments Pvt Ltd (Rs 10 crore) and United International (Rs 10 crore). These
industries are associated with technical textile, composite hosiery, spinning
garments manufacturing, fabric knitting, apparel manufacturing, spinning,
knitting, fabrics, readymade garments, auto parts, CA stove and pipe manu-
facturing etc.
DiloGroup's India Sales & Service Office
Opened in Gurugram Near New Delhi
The management of DiloGroup has announced the establishment of Dilo In-
dia Private Limited in the city of Gurugram near New Delhi. This new Dilo
office is a continuation of efforts to provide direct, close contact and service
to Indian customers.
"Dilo has been active on the Indian market for more than 30 years. Now our
own sales and service office has been opened in the city of Gurugram near
New Delhi to have an even closer contact to the Indian customers and to
provide optimum after-sales-service", the company said in its press release.
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
supported from Germany by DiloGroup's Sales Director Dr. Gunnar Hemmer
NCM-AUGUST 2018
80
 NEWS BRIEFS
and Mr. Hjalmar Schwab as Area Sales Manager for India
and South-East Asia.
According to the Indian tradition, the office was blessed
in a prayer ceremony.
The nonwovens industry worldwide has enjoyed great
success and high growth rates. DiloGroup as a leading
supplier in this field has grown similarly in recent years
and is known for highly productive high quality equipment
in nonwovens production and needling lines.
The Dilo office in India is an expression of the high regard
for the growing potential in the nonwovens industry of In-
dia and will be the first point of contact of customers for
NCM-AUGUST 2018
81
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-
ing Technology), DiloMachines (Cross Lapping and Nee-
dling Machines) and DiloSystems which provide complete
lines for the various nonwoven applications and also project
installation services.
Dilo’s range of technology offerings include perfect open-
ing and blending solutions, universal and high capacity
carding machines including random card technology and
large card working widths exceeding 5m with high web
speeds up to 400 m/min at the winder of e. g. water en-
tanglement lines. In addition, high speed crosslappers as
well as universal and high capacity needle looms DI-LOOM
are part of the range.
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

of the Indian market by cheap imports
from China. According to the data
available, India's total textile imports
jumped by 16 percent to a record $7
billion in the fiscal year to March 2018.
Of this, about $3 billion were from
China.
Rising imports from China have
caused India to face trade deficit with
China in textile products to a record
high $1.54 billion in 2017/18. India
used to be a net exporter of textile
products to China until recently.
By increasing the import duty to 20
per cent, India hopes to decrease the
imports of textile products from $7 bil-
lion to $6 billion in 2018/19. It is hoped
that China may not retaliate to the
Indian duty hikes as it still enjoys a
comfortable trade surplus with India.
Bangladesh hopes to profit from
India's textile import tax hike
It is worth noting that India's imports
of textile products from Bangladesh,
Vietnam and Cambodia have been ris-
ing in the last few years. This is mainly
because imports from these countries
are not subjected to any duty in view
of the fact that India has signed the
free trade agreements (FTA) with
these countries. Hence, the 20 per-
cent hike in duty will not be applicable
to products sourced from these coun-
tries due to the FTA.
India’s decision to double tax on im-
port of textile products to curb im-
ports from China will benefit the
Bangladesh apparel industry "It’s a
good news for our apparel industry. It
will enable us to export more prod-
ucts to India,” Bangladesh Garment
Manufacturers and Exporters Asso-
ciation Senior Vice-President Faruque
Hassan, is reported to have said.
Industry observers say that in the last
few months Chinese fibre has been
shipped to Bangladesh and processed
and exported to India with zero duty.
This makes it important for India to
strictly monitor the Rules of Origin for
textile products while importing from
the FTA countries. Otherwise Chinese
NEWS BRIEFS
products will find their way to India from these countries.
Bangladesh’s export earnings from the apparel sector registered an 8.76%
growth reaching $30.61 billion in FY18. The apparel industry, employer of 40
million workers, mostly rural women, contributed 83.49% to Bangladesh’s
total exports of $36.66 billion to date.
According to Export Promotion Bureau (EPB) data released, Bangladesh’s
export earnings from the RMG sector stood at $30.61billion, posting 8.76%
growth in the last fiscal year. The figure is 1.51% higher than the target of
$30.16 million for FY18. In FY17, Bangladesh’s export earnings registered a
0.2% growth to $28.15 billion, the lowest in the last one and a half decade.
Of the total amount, Knitwear products earned $15.18 billion, which is 10.40%
higher than the $13.76 in the same period a year ago. Woven products earned
$15.42 billion, up by 7.18%, compared to $14.39 billion a year ago.
On the other hand, India's textile and garment exports could rise 8 percent to
$40 billion in 2018/19 due to a weak rupee and as the government is expected
to introduce incentives to boost overseas sales.
Indian Textile Trade Delegation visits
Bangladesh
At the behest of Ministry of Commerce & Industry; Ministry of Textiles, Gov-
ernment of India and Bangladesh Garment Manufactures & Exporters Asso-
ciation (BGMEA), the Cotton Textiles Export Promotion Council (Texprocil)
organised the visit of a Indian Trade Delegation led by Mr. Ujwal Lahoti, Chair-
man, Texprocil to Dhaka, Bangladesh for meetings on 21st and 22nd July
2018. The Delegation consisted of 25 members representing 12 companies-
mainly exporters of yarn and fabric.
The objective of the delegation was to hold B2B meetings with leading Mem-
bers of BGMEA & BKMEA who are interested to source imported fabrics and
yarn for their consumption in manufacturing garments for export. Opportuni-
ties for supply of dyes and chemicals from India were also highlighted.
During their visit, the delegation interacted with leading garment manufactur-
ers both knitwear and woven in Bangladesh. The Bangladesh market offers
vast scope for increasing India’s market share in fabrics, yarns and even
home furnishings, provided consistent marketing efforts are undertaken on a
continuous basis.
Meeting with BGMEA
At the B2B meeting, Bangladesh Garment Manufacturers and Exporters As-
sociation (BGMEA) President Mr. Siddiqur Rahman and Md. Nasir, Vice Presi-
dent of BGMEA (Finance) participated actively along with a large number of
leading Bangladeshi apparel exporters. In his welcome address, President of
BGMEA mentioned that there is scope to increase bilateral trade in Textile &
Clothing by another US$ 1 billion in a short span of time, if quality related
issues and dispute settlement issues are addressed more efficiently.
Mr. Ujwal Lahoti, Chairman Texprocil & Ms.Tseten Nordon Cargyal, Second
Secretary and Head of Chancery of the Indian High Commission to Bangladesh
highlighted the opportunity for two way business in T&C trade between the
two countries and need for enhancing the cooperation between BGMEA and
Texprocil for mutual benefit in souring and supplying of textile and apparel
products.
NCM-AUGUST 2018
82
 NEWS BRIEFS

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.

NCM-AUGUST 2018
83

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
partner for India, particularly in tex-
tiles, owing to proximity, short lead
time and cultural affinity between the
two countries. An analysis of the trade
data shows that the total export of
Apparel from Bangladesh is much
higher than that of India. In the year
2017-18 Bangladesh imported US$
6,098 million worth of fabrics (of all
fibres), of which import of cotton fab-
rics was valued at US$ 3,751 million.
Of the total import of cotton fabrics,
import from India is only US$ 445
million (12 per cent) there by offering
a vast scope for increasing India’s
market share.
In order to meet the requirement of
supply from up-stream industry, there
is a gap in domestic manufacturing in
Bangladesh owing to higher invest-
ment in apparel manufacturing than
in the upstream value chain, although
large scale investments are taking
place in recent years in weaving, pro-
cessing, and home textiles.
Whereas it is the reverse in the In-
dian textile & clothing production value
chain as we have higher capacity in
raw material and intermediary produc-
tion than domestic requirement. Hence
demand – supply situation in the In-
dian textile value chain perfectly suits,
with demand supply gap in
Bangladesh, thereby making India a
preferred source of suppliers.
Even though, India is the major sup-
NEWS BRIEFS
Shri Ujwal Lahoti, Chairman, Texprocil, (2nd from Left) called upon Dr.
Adarash Swaika, Deputy High Commissioner of India to Bangladesh (Cen-
tre), to discuss ways and means in increasing India’s market share in
value added fabrics and home textiles.
plier of Yarns to Bangladesh, there is
a long way to go in increasing market
share in supply of fabrics for which
there remains good potential.
Price and nominated business are the
two decisive factors with regard to
source of fabrics supply. To this, there
is the important need to create aware-
ness about the fabric supply capabil-
ity of Indian textile companies among
the apparel manufacturers in
Bangladesh.
Observations
* Apparel manufacturers in
Bangladesh are moving from
‘forced compliance’ to ‘voluntary
compliance’ factories in order to
obtain orders from major brands
around the world. Hence, they
need consistent quality of raw ma-
terial and long term commitment
on consistent prices of cotton yarn
and fabrics.
* Even though various incentive
schemes are available for apparel
exporters, most of the times pay-
ment for Indian suppliers of yarn
and fabrics are delayed by 6
months to one year. It is important
to work through local agent or
have an own office (in Bangladesh)
NCM-AUGUST 2018
84
to get payments/remittance with
minimum delay.
* Even though there is an increase
in spinning capacity in
Bangladesh, there is also a rapid
and simultaneous increase in
garmenting, weaving and process-
ing capacity.
* Owing to ongoing US – China trade
relationship, it is expected that Chi-
nese investment will flow into
Bangladesh in a big way in the near
future. Already there are reports of
Chinese companies shifting up
large processing capacities to
Bangladesh, owing to stringent pol-
lution norms.
* Thus, looking ahead, in the com-
ing year, demand for fabric for con-
version into garments in
Bangladesh is expected to in-
crease sharply and it is important
for the Council to redouble its mar-
keting efforts.
Changes in coastal shipping pact
with Bangladesh to push transship-
ment
Container shipping lines and port op-
erators are seeking a change in the
bilateral coastal shipping agreement
signed between India and Bangladesh

to permit transshipment of
Bangladesh cargo from Indian ports.
The India-Bangladesh coastal shipping
agreement covers only origin-destina-
tion cargo between the two
neighbouring countries.
“We have started discussions with
authorities in Bangladesh to allow
transshipment of their cargo from In-
dian ports,” Capt Deepak Tiwari,
Chairman of the Container Shipping
Lines Association (CSLA), said.
“Chittagong port in Bangladesh is
heavily congested; so why not take
advantage of that,” he said.
For this, the Shipping Ministry will
have to separately pursue an amend-
ment to the pact. Garment cargo from
Bangladesh is currently sent to the
UK via the transshipment hubs of
Colombo or Singapore.
It was reported that recently, India de-
nied request from a major UK-based
retailer to transship its garment cargo
from Bangladesh through Chennai as
this was not allowed in the coastal
shipping agreement.
According to Vinita Venkatesh, direc-
tor, Krishnapatnam Port Container Ter-
minal Pvt Ltd., there is a case for re-
visiting the bilateral coastal shipping
agreement signed between India and
Bangladesh to include transshipment
cargo as well.
To facilitate transshipment, Chennai
Customs has issued a notice stating
that coastal vessels will now get Im-
port General Manifest (IGM)/Export
General Manifest (EGM) rotation num-
ber for transshipment containers.
Chennai Customs has also given
green signal to sea-air transshipment
of cargo from Chennai to West Asia
based on a proposal from Orient Ship-
ping Line. Besides, the Chennai Cus-
toms is evaluating the possibility of
allowing transloading (re-stuffing into
new containers) of Bangladesh gar-
ment cargo for an exporter who wants
to transship the cargo to UK via
Chennai instead of Singapore, accord-
ing to the media reports.
NEWS BRIEFS
Amended Technology Upgradation Fund Scheme
(ATUFS) Revised
The Ministry of textiles, Government of India, has notified the Amended
Technology Upgradation Fund Scheme (ATUFS) vide Resolution dated Au-
gust 2, 2018. The said Resolution has laid down the operational and finan-
cial guidelines for the implementation of the ATUFS for the period from
13.1.2016 to 31.3.2022.
The Highlights of the revised ATUFS are as follows:
1. Those applicants who had applied for UID under RRTUFS before
12.01.2016 but the UIDs could not be issued to them for non-availabil-
ity of funds, will be given one-time opportunity to apply for subsidy
under ATUFS. Textile Commissioner will issue a communication in this
regard.
2. Limited Liability Partnership Firms registered under LLP Act, 2008 will
be eligible for the benefit of capital subsidy under ATUFS.
3. Cooperative Banks will also be the lending agency under the scheme.
4. Specification of technology for the machinery for all the eligible seg-
ments would be prescribed annually in advance by the TAMC effective
from 1st April of the year.
5. Textile Commissioner will constitute a Technical Committee which will
assist the TAMC to prepare an indicative list of manufacturers of ma-
chinery. This Committee will meet on monthly basis to update the list
of machineries and manufacturers. This list will be suggestive and not
exhaustive or complete. Industry will be at liberty to purchase machin-
ery of their own choice conforming to the specified technology param-
eters subject to inclusion in the indicative list of manufacturers by the
TAMC.
6. Accessories, attachments, sample machines and spares procured from
other manufacturers enlisted in the indicative list will also be eligible
for subsidy up to a value of 20 per cent of basic cost of machinery.
7. Unique Identification Number (UID) has been defined as provisional
approval for estimated Capital Investment Subsidy based on the ten-
tative estimates of specified machineries for technology upgradation.
8. The revised ATUFS also has a clause that except in case of merger,
acquisition, amalgamation or takeover of the entity, the plant and ma-
chinery purchased with subsidy under TUFS shall not be disposed of
before 10 years of the date of purchase without prior approval of the
Textile Commissioner.
9. Advance payment up to the limit of his own share in the machine cost
can be made by the applicant prior to the date of sanction of the term
loan.
10. For ATUFS, purchase date shall be date when full and final payment is
made by the entity for machinery. In addition to the ATUFS benefits,
textile units would be permitted to avail benefits of the state
government’s schemes.
Grievance Redress Mechanism:
i-TUFS has a grievance redress module. Grievances arising due to imple-
mentation of the scheme will be redressed by Textile Commissioner in 30
days.
NCM-AUGUST 2018
85

India’s Widening Trade
Deficit with China – A
Cause Concern for the
Indian Textile Sector –
CITI Chairman
In a press release dated August 3,
2018, Mr. Sanjay Jain, Chairman, Con-
federation of Indian Textile Industry
(CITI) highlighted that the India’s huge
trade deficit with China is a matter of
great concern. India’s trade deficit with
China has increased from US$ 51.1
bn. in 2016-17 to US$ 62.9 bn in 2017-
18. India’s bilateral trade with China
was US$ 89.6 bn. in 2017-18.
India exported US$ 1,362 mn. worth
of textile and apparel products to
China in 2017-18 while India’s textile
and apparel imports from China stood
at US$ 2,905 mn., indicating a trade
deficit of US$ 1,543 mn. It is perti-
nent to mention that during 2010-11
to 2013-14, India was a net exporter
of textile and apparel products to
China. However, after that India’s trade
deficit with China is constantly in-
creasing.
Mr. Jain stated that amongst the very
few items in which India is more com-
petitive than China is cotton based
textiles viz. yarn, fabric and made-ups.
However, our competing countries
such as Vietnam, Indonesia, Pakistan
and Cambodia enjoy duty free access
to Chinese market while Indian prod-
ucts carry 3.5%, 10% and 14% duty
on yarn, fabric and made-ups, respec-
tively.
Mr. Jain also pointed out that India was
a market leader in cotton yarn but lost
almost 50% of its market to Vietnam
over last 3 years, creating excess
capacity in the system. India’s cotton
yarn exports to China has decreased
by 53% from 2013 to 2017 while
Vietnam’s exports of cotton yarn to
China has increased by approximately
88% during the same period.
Moreover, the profit margins in the
NEWS BRIEFS
Mr. Sanjay K Jain
Chairman of CITI & MD of T.T. Ltd.
cotton textiles industry are very thin,
in single digit only. Therefore, the in-
dustry is very sensitive to even small
changes. Hence, Mr. Jain said that if
level playing field is given to India like
its competitors, it can double its ex-
ports plus help in reducing trade defi-
cit with China. CITI requests the Gov-
ernment to push negotiations with
China to give duty free access to In-
dian cotton textiles.
CITI Hails Refund of Accumulated
ITC at Fabric Stage
The GST Council held its 28th Meet-
ing at New Delhi on July 21 and took
a number of decisions that will give a
major boost to the Indian economy.
Mr. Sanjay K. Jain, Chairman, CITI,
welcomed the decesion of refund of
accumulated credit on account of in-
verted duty structure to fabric manu-
facturers. He stated that it was the
need of the hour as fabric sector is
already facing a lot of difficulties while
competing with its counterparts in in-
ternational market. CITI has been con-
sistently requesting to the government
to give relief to the fabric segment as
for the overall growth of the textile
sector, fabric sector plays an impor-
tant role and it also generates a size-
able employment opportunities – 40
jobs on 1 crore invesment – which is
more than any segment of the textile
value chain. Hence, decision to allow
NCM-AUGUST 2018
86
refund of accumulated Input Tax
Credit (ITC) at Fabric stage due to in-
verted duty structure is a big relief to
the textile sector.
He futher stated that the rates cut on
Chenille fabrics and other fabrics un-
der heading 5801 and Handoom dari
to 5% from 12% is a big win for the
textile manufacturers who were reel-
ing under immense pressure. It would
further boost employment in the
powerloom sector, as about 40,000
textile workers have lost their jobs in
last one year and would prevent fur-
ther job losses.
Mr. Jain also pointed out that allowing
quarterly filing of return for the small
taxpayers having turnover below 5
crore as an optional facility will ease
out pressure on small businessmen/
merchants and is expected to give big
relief to about 93% of the over 10 mil-
lion registered GST payers, from the
complex procedures of filing monthly
returns. He also praised the decision
of levying GST on reverse charge
mechanism on receipt of supplies
from unregistered suppliers should be
applicable to only specified goods in
case of certain notified classes of
registered persons, on the recommen-
dations of the GST Council.
Mr. Jain informed that CITI has been
representing to the Government on all
the major issues concerning Textile
and Clothing Industry and also under-
lined the fact that the Government has
been very receptive while dealing with
the issues. He further pointed out that
reducing GST rates on man-made fi-
bres and yarn is a long pending in-
dustry demand apart from other GST
pending issues and hoped, it would
further ease out pressure on the MMF
sector. The decisions taken in
yesterday’s meeting are welcome
steps and would help the entire manu-
facturing and service sectors not only
to cover the lost ground but would also
empower the Indian economy to un-
leash its true potential and achieve
the target set out for the textile and
clothing sector.
 NEWS BRIEFS
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.

NCM-AUGUST 2018
87

Inauguration of the ELS (Extra Long Staple) Cotton Project of CITI-CDRA in Ratlam, Madhya Pradesh
Mr. Sanjay Jain, Chairman, Confed-
eration of Indian Textile Industry (CITI)
stated that CITI undertakes cotton
development and extension activities
through its extension arm – CITI Cot-
ton Development & Research Asso-
ciation (CITI CDRA). Since its incep-
tion in 1970, it has been involved in
various initiatives in different parts of
India for improvement in yield and pro-
duction of cotton, creating awareness
among the cotton growers from the
project areas about the latest produc-
tion, plant protection and nutrient
management technologies and equip-
ping the farmers with technological
awareness for sustaining cotton pro-
duction and improving the economic
status.
Mr. P.D. Patodia, Convener of CITI-
CDRA pointed out that CITI-CDRA
has made strides in cotton develop-
ment in Rajasthan through its initia-
tives in the State. It is set to com-
plete a decade (2008-09 to 2017-18)
of its Collaborative cotton develop-
ment activities in rain dependent ma-
jor cotton growing districts of Lower
Rajasthan. CITI along with State Ag-
riculture Department, Bayer Crop Sci-
ence and regional Textile Mills Asso-
ciations conducted a Cotton Collabo-
ration Initiative in rain dependent dis-
tricts. The mission was to improve
cotton production and upliftment of
cotton farmers. It conducted Front-line
Demonstrations for farmers in their
farms for the spread and adoption of
NEWS BRIEFS
latest production, plant protection and
nutrient management technologies.
Mr. Jain highlighted that the initiatives
resulted in increase of cotton produc-
tion in lower Rajasthan (project area)
from 1.91 lakh bales in 2007-08 to
around 13 lakh bales in 2017-18, an
increase of 581% and in overall
Rajasthan, it increased from 9 lakh
bales to 22 lakh bales for the same
period, showing an increase of 144%.
The cotton yield in Rajasthan in-
creased 79% from 415 kgs of lint per
hectare in 2007-08 to 744 kgs of lint
per hectare in 2017-18. For the same
time period, average yield in project
areas was 863 lint/ha as compared to
state average of 398 lint/ha.
Thus, local textile mills dependence
on other states for cotton requirement
reduced from 80% to 20%, giving im-
petus to Rajasthan textile sector and
also led to local farmer’s income in-
creasing substantially.
Mr. Patodia also mentioned that as a
part of initiatives in Rajasthan, CITI-
CDRA in collaboration with Bayer
Crop Science, has embarked upon the
project for promoting ELS cotton in
Banswara district for the last two
years.
A wide variety of ELS seeds were
tested in various villages of Banswara
district of Rajasthan and Ratlam dis-
trict of Madhya Pradesh. In terms of
NCM-AUGUST 2018
88
quality, the performance of these cot-
tons was found to be encouraging and
the production was increased. Mr. Jain
is hopeful that such initiatives would
help in increasing the yield of ELS
cotton and create awareness among
the farmers regarding growing these
varieties. Thus, will impact the over-
all production of ELS cotton in the
state and the country.
CITI-CDRA has similar Cotton Col-
laboration Projects being implemented
in Maharashtra where the cotton grow-
ers were given information regarding
sustainable growing of cotton, impor-
tance of preventing contamination,
better use of fertilizers and modern
farming methods like high density
planting and drip irrigation.
Mr. Patodia also mentioned, to pro-
mote better farming techniques, CITI-
CDRA organizes Kisan Melas for cot-
ton growers. The cotton growers with
the maximum yield are felicitated and
awarded at Kisan Melas. Furthermore,
the Kisan Melas are a platform for
senior scientists in the field to com-
municate with farmers and inform
them about the latest innovations
made in the industry.
Mr. Jain believes that such initiatives
will help in improving the overall scene
of cotton production in India. How-
ever, this is just a drop in the ocean,
to make a big change, he urges, the
Government of India to conduct simi-
 NEWS BRIEFS

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89

lar projects and invest extensively for
research in development of cotton
seeds with better yield and productiv-
ity. Industry is hopeful of TMC II be-
ing started very soon to provide fur-
ther impetus to cotton farming.
Further, Mr. Jain emphasized to build
a Direct Subsidy based on remunera-
tion per hectare of land to cotton grow-
ers rather than a market linked MSP
system which distorts the normal
market flow and impacts quality, com-
petitiveness and growth of the entire
value chain which employs more than
10 crore people (large percentage be-
ing rural women).
Crash in Cocoon Prices
Crush Sericulture
Farmers
According to media reports from
Mysuru, Karnataka, the slump in price
of cocoons — both crossbreed and
bivoltine hybrid — has left farmers in
the sericulture-intensive Mysuru,
Mandya, Ramanagaram and adjoining
areas high and dry. The Hindu, in its
July 15th post has reported the story
of a sericulture farmer from
Ramanagaram, Mr. Ravi K. who used
to sell his superior quality bivoltine
hybrid cocoons for Rs. 550 a kg till
about two months ago. But now his
new crop of cocoons is fetching him
barely Rs. 320 a kg at the market in
Ramanagaram. The decline in prices
has been attributed to poor demand
for raw silk. An official in the Sericul-
ture Department has been quoted
saying: “About 35% of the reelers are
staying away from the cocoon mar-
ket as the demand for silk from weav-
ers has come down drastically. Since
April, the price of raw silk has dropped
from between Rs. 3,800 and Rs. 4,000
to between Rs. 2,000 and Rs. 2,600 a
kg.”
The crash in cocoon prices has taken
heavy toll on sericulture farmers in
Karnataka who are under tremendous
stress due to their bank loans. Sev-
eral suicides have also been reported
NEWS BRIEFS
The business model of a sericulture farmer works something like this.
The farmers usually buy silkworms from villages. For 100 eggs, Rs
1,900 is paid, with each egg consisting of 600 silkworms of seven
days’ growth, which are stored in the sheds inside the farm. Construc-
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.
After 18 days, the worms weave cocoons around them which are then
supplied to reelers. They eliminate the worms through a heat process,
preserve the silk threads and supply the same to weavers for making
saris.
On an acre of land, 4,500 to 5,000 plants can be raised, from which 1
lakh cocoons weighing 100 kilograms could be harvested. Farmers
can make a profit in the Rs 10,000- Rs 45,000 range every 65 days. In
course of time, as the mulberries crop, the main feed for the silk worms
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.
Rearing silkworms can be an economically viable enterprise as the
perennial crop can be grown four to five times a year. However, the
withdrawal of subsidy and other incentives provided by the govern-
ment have put farmers in trouble amid fluctuation in price and rising
input costs.
from the villages in Kolar and low Rs 280 and Rs 50 for bivoltine
Ramanagara districts. According to cocoon if its price fell below Rs 350.
farmers there, the cross breed (CB) The farmers, however, are demand-
cocoon, which was selling at Rs 400 ing that the support price be hiked at
per kg till April, is finding no takers least by Rs 60 and Rs 100 for CB and
even at Rs 210 per kg. The prices of bivoltine cocoons, respectively. Their
bivoltine too has dipped from Rs 600 demand is based on the fact that the
to Rs 320 per kg over a couple of cost of production has gone up since
months. the Basavaraju committee decided on
the support price in 2015. They feel
According to TOI's July 18 post,
that the new support price should be
Karnataka Sericulture minister Sa Ra
in accordance with the changed mar-
Mahesh attributed the crisis to over
ket dynamics.
production in the current season. He
said while the Ramanagar market
The minister claims that even if the
used to receive 10,000 tonnes of co-
support price is hiked by Rs 10, it’ll
coon a day, the daily inflow touched
result in an extra burden of Rs 60 crore
17,000 tonnes in the first week of July.
on the government exchequer. "While
“The government has taken note of
the government is ready to compen-
the problem. The chief minister has
sate the farmers in concurrence with
asked us to come up with a quick
the Basavaraju committee report but
solution and we’re working on it,”
farmers are asking for a little more.
Mahesh was quoted as saying.
Since the CM is sympathetic, we’ll
The government is under pressure to take a call after considering the finan-
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
vised norms. As per the 2015 formula, also write to the Centre to hike the
recommended by H Basavaraju Tech- custom duty on imported silk from
nical Committee, there is a provision 10% to 15% so that the locally pro-
for a support price of Rs 30 per kg for duced silk can compete with the pro-
CB cocoons if its price crashed be- duce imported from China.”
NCM-AUGUST 2018
90
 NEWS BRIEFS

LG DOCTOR

The difference between stupidity and genius

is that genius has its limits. Albert Einstein

NCM-AUGUST 2018
91
 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.

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

NCM-AUGUST 2018
92
NEWS BRIEFS

NCM-AUGUST 2018
93

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
industries free of charge – recovering
that upfront bulk purchase cost
through the financial returns generated
from energy savings over a 12-18
month period.
EESL’s phase one goal is to replace
120,000 motors with energy efficient
IE3 motors for a wide range of uses
such as pumps, compressors, and
drive systems. Based on the response
of phase one, EESL will ramp up the
NMRP to over 600,000 motors over
the next three years.
ISC will assist EESL in their goal of
scaling up the adoption of efficient
motors – by testing assumptions,
building the business case, educat-
ing manufacturers, and driving de-
mand. With EESL, ISC is replacing
30 motors in diverse small and me-
dium enterprise use cases as a dem-
onstration. These motors will be moni-
tored closely to develop the business
case for replacing inefficient motors,
and EESL has agreed to set aside
thousands of motors targeted to
SMEs on completion of the pilot at
ISC’s request.
The pilot will:
Use rigorous methods to confirm that
motor upgrades actually save money.
If motor upgrades do save money,
determine how much on average could
be saved.
Using that savings data, build a busi-
ness case for motor replacement
(quantum and payback period after
EESL provides an initial investment
in the replacement).
NEWS BRIEFS
India’s manufacturing sector is rapidly growing, and with that growth comes
increased greenhouse gas emissions from a sector that already accounts
for more than a quarter of emissions from the world’s fourth largest emitter.
These smaller factories make up a substantial part of India’s manufactur-
ing sector, but often lack information about energy efficiency technologies.
To significantly speed their adoption, ISC is supporting the demonstration
of proven energy efficiency technologies and training local energy efficiency
providers to provide ongoing services and technical assistance to SMEs at
scale. Drawing on the knowledge and insight gained through practical expe-
rience, ISC and its partners are contributing to the development of Indian
government policies designed to increase resource efficiency in the indus-
trial sector, align with India’s COP21 commitments, and reduce carbon and
other harmful emissions in India.
SRTEPC Opens Regional Office In Ahmedabad
The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) inaugu-
rated its Regional Office in Ahmedabad in the premises of Gujarat Chamber
of Commerce & Industry (GCCI) on 11th July 2018. The opening function was
preceded by a Road Show to promote ‘Source India 2018’ among the leading
textile businesses in Ahmedabad.
Shri Murali Balkrishna, SRTEPC welcomed the audience on behalf of SRTEPC
and Gujarat Chamber of commerce & Industry. He thanked GCCI for their
support and co-operation and especially for providing space in their premises
for Council’s Regional Office in Ahmedabad. He also mentioned that SRTEPC
has started office in Ahmedabad from 1st June 2018 for the promotion of
MMF Textile exports in Ahmedabad and north Gujarat area and to increase its
footprints among the MMF manufacturers and exporters in this region..
Shri Sri Narain Aggarwal, Chairman, SRTEPC; Dr. Jaimin Vasa, President,
GCCI; Shri Anil Rajvanshi, immediate past Chairman, SRTEPC; Shri Hetal
Mehta, President SGCCI; Shri Sanjeev Saran, former Chairman, SRTEPC;
Smt. Mena Kaviya, Chairperson, Textile Committee, GCCI; Shri Dhiraj Shah,
Regional Chairman, SRTEPC and Shri Ambar Patel, Secretary, GCCI were
present at the Function.
In his inaugural address, Dr. Jaimin Vasa, President, GCCI welcomed the
dignitaries, the audience and representatives from media on behalf of GCCI
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
India and the biggest employer after agriculture sector. He stated that India is
strong in both natural fibers-cotton and jute as well as man-made fibers –
polyester and nylon. He further mentioned that India is 4th largest manufac-
turer of synthetic fiber yarn of which Gujarat produces 38% of man-made
filament fabrics and 31% of man-made fiber. He said that Surat is the largest
NCM-AUGUST 2018
94
 NEWS BRIEFS

EMBEE

NCM-AUGUST 2018
95
 NEWS BRIEFS
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.

NCM-AUGUST 2018
96
 NEWS BRIEFS

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