5th - Confederation of Indian Textile Industry - CITI · An MSME study by the RBI Monetary Policy Department notes that the share of credit extended to MSMEs in overall bank credit

Cotlook A Index - Cents/lb (Change from previous day)

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New York Cotton Futures (Cents/lb) As on 04.09.2018 (Change from

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5th SEPTEMBER

2018

India’s apparel exports likely to remain subdued in near term

Apparel exports to see modest growth in near term: Report

Continued Fall In Rupee Leads To Rate Hike Fears

GST Council seeks ways to ensure MSMEs pay taxes every month

UAE's textile printing industry's tech migration could help them command $2.66bln market: IEC

Turkmenistan expects 1,050,000 tons cotton production

Uzbekistan intends to stop export of cotton fiber by 2025

Cotton and Yarn Futures ZCE - Daily Data

(Change from previous day)

MCX (Change from previous day) Oct 2018 22720 (-50)

Cotton 15825 (+45) Nov 2018 22440 (0)

Yarn 26940 (+235) Dec 2018 22480 (+10)

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Ease GST costs for small businesses

GST authorities get their act together to plug gaps

India’s apparel exports likely to remain subdued in near term

Apparel exports to see modest growth in near term: Report

Continued Fall In Rupee Leads To Rate Hike Fears

Finance ministry notifies annual tax return forms for businesses registered under GST

GST Council seeks ways to ensure MSMEs pay taxes every month

High wool prices to squeeze margins of winter fabric makers

Farmers climb cell tower to protest

Officials turn desperados

For textile dyeing units, extracting groundwater 750 times cheaper than treating wastewater

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Vietnam’s cotton imports surpass $2 billion from Jan-Aug

Cotton prices to trade sideways to lower: Angel Commodities

UAE's textile printing industry's tech migration could help them command $2.66bln market: IEC

Turkmenistan expects 1,050,000 tons cotton production

Uzbekistan intends to stop export of cotton fiber by 2025

Pakistan : 'Approved varieties of cotton seed provided to growers'

Woolmark Unveils ‘Live and Breathe’ Performance Fiber Campaign

EUR 3 million raised for fashion-tech company

Bracker to show latest textile applications at ITMA Asia

Three events to showcase latest garment, textiles technology

ITMA Asia + CITME 2018 Exhibitor Preview: Suessen

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NATIONAL

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GLOBAL

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NATIONAL:

Ease GST costs for small businesses

(Source: The Economic Times, September 0, 2018)

The goods and services tax (GST) rate has been lowered on many products from 28%, but the operating costs for small businesses are still onerous. This must change. SMEs that supply products such as auto parts to large buyers are forced to borrow money at usurious rates to pay GST upfront, at 28%. Payment delays by their customers block the working capital of SMEs and hurt their businesses. So, large companies get the benefit of extended suppliers’ credit that SMEs do not. There is no reason why the GST Council cannot institute a system wherein large buyers of inputs can deduct GST at source, when they purchase their inputs from SMEs, even as the supplier and buyer file returns indicating the tax incidence and collection. This will spare small suppliers from having to borrow to pay GST. Large buyers can claim credit for the taxes payable by their suppliers and collected and paid by the buyers themselves.

Small suppliers are obliged to remit tax that they levy on large buyers in the following month itself, whereas large buyers make payments only after three months or more. Unlike large companies, small suppliers do not have easy access to cheap bank credit. An MSME study by the RBI Monetary Policy Department notes that the share of credit extended to MSMEs in overall bank credit fell steadily to around 14% by end-March 2018 from about 17% in 2007, partly due to overlending to large corporates (now stressed) in the second half of 2000s. So, SMEs rely on informal channels, paying high rates of interest. This can be overcome through a mechanism akin to reverse charge, meant to track small firms outside the GST net. The registration and filing of returns should be made compulsory for all small suppliers. This will create audit trails and curb tax evasion. The case to lower GST on auto-parts too is compelling. DISCLAIMER : Views expressed above are the author's own.

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GST authorities get their act together to plug gaps (Source: Vinod Mahanta, The Economic Times, September 05, 2018)

Given that both state and central GST departments are now getting a grip over the new system, loopholes are being plugged aggressively. A slew of recent circulars by the central and some state GST authorities, along with notices being shot off questioning previously undetected discrepancies in returns, suggests that both central and state GST departments are getting their act together and patching up holes in intelligence sharing and on-ground action. At a recent meeting of a ‘Working Group on Intelligence Apparatus’, the finance secretary noted that there was sporadic and selective information sharing among all investigative agencies and the Central Economic Intelligence Bureau. He directed the agencies to share intelligence real time. In a recent circular, Andhra Pradesh’s chief commissioner of state tax empowered state case officers to take action if they detect tax evasion based on intelligence inputs, even in companies that fall under central tax administration. Given that both state and central GST departments are now getting a grip over the new system, loopholes are being plugged aggressively. Already, with the requirement of reporting GST-related procurements in income tax returns (which while now has been deferred till March), there seems to be a clear intention at the government’s end of reconciliation between disclosures made in income tax and GST returns. “With the requirement of reconciliation between company financials and GST returns in the GST annual return (the final return for which forms are still to be released), there seems to be harbouring of some data analytics in the government’s agenda,” said Abhishek Jain, partner, EY.

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Experts said while there is nothing in writing, there is a general apprehension in the industry of data mining and analytics on amounts reported under transfer pricing provisions and the GST law. The government is already matching the GST paid on imports (under customs) and that disclosed in GST returns. Businesses found to have discrepancies between the two are getting notices. The revenue department is also matching whether sales in relation to imports are duly accounted for or not. Increasingly, data is being shared across revenue departments. “The endeavour of the government is clearly to remove and address the problems which were faced in the transitional phase to the GST regime,” said Abhishek A Rastogi, partner at Khaitan & Co. “With the finance minister (Arun Jaitley, after medical treatment) back to action, many such circulars and notifications filling the gaps would be released to address such problems. The view on budgetary support should be closely watched as well.

Home India’s apparel exports likely to remain subdued in near term (Source: Sutanuka Ghosal, Economic Times, September 04, 2018)

India’s apparel exports have generally exhibited an unencouraging trend. India’s apparel exports are likely to remain subdued in the near term, even as the worst appears to be over, according to an Icra note released on Tuesday. With the base effect setting in, ICRA expects India’s apparel exports to grow at a modest pace of 1%-2% Y-o-Y for the rest of FY2019, vis-a-vis a sharp de-growth of 14% Y-o-Y in first four months of FY2019. As this would still mean a 4% Y-o-Y decline in the country’s apparel exports in FY2019, it is expected to be the fourth consecutive weak year for India’s apparel exports, following the 4% de-growth in FY2018 and modest growth rates of 1% and 3% in FY2016 and FY2017 respectively. India’s apparel exports have exhibited an unencouraging trend, with a marginal de-growth of 1% in FY2018 as well as in the period April -July of FY2019, even after adjusting for apparel exports to the UAE, which have declined inexplicably and sharply over the past one year.

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Commenting on the subdued industry trend, Mr. Jayanta Roy, Senior Vice-President and Group Head, ICRA, says, “With several internal as well as external headwinds, the past year turned out to be rather challenging for India’s apparel exporters. Transition to the new taxation regime, besides posing liquidity challenges for the industry, added to uncertainties because of alternating stances on export incentives during the year. Further, a stronger rupee heightened the challenges in the international market by affecting competitiveness of players in an intensely competitive international apparel market.” ICRA note says that country’s apparel sector’s performance is worrying as it is contrary to the global trends. The global apparel trade is back on the growth trajectory with an estimated growth of 4%-5% year-on-year (Y-o-Y) in H1 CY2018 and 2% in CY2017 in US dollar terms. The positive trend in the global apparel market is being led by the strong recovery in apparel imports by the European Union (EU), which accounts for two-fifth of the global apparel trade (including the trade within EU). With faster GST refunds, improved clarity on the rate of export incentives and the sharp rupee depreciation witnessed over the past few months, most of the industry’s concerns stand addressed to a large extent. Having said that, the industry is now facing mounting concerns on the continuance of export subsidy schemes in India, after being challenged by the US at the World Trade Organisation (WTO), which seems to be constraining the growth momentum of India’s apparel export sector. “Going forward, steps taken by the Government to address these concerns, will remain crucial for apparel exporters to capitalise on the revived global apparel trade as well as the continuing loss of market share by China, which opens up a lucrative opportunity for key players such as India, Vietnam and Bangladesh,” adds Roy. ICRA notes that Bangladesh and Vietnam have been the key gainers from China’s loss of share of export market over the past couple of years. Vietnam is maintaining a healthy growth in its stronghold market of the US, with its position likely to strengthen further if the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement are successfully consummated. Meanwhile, Bangladesh continues to gain share in Europe, even as concerns on withdrawal of its duty-free access to the EU market have surfaced, given the improvement in its economic indicators.

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Apparel exports to see modest growth in near term: Report The exports have seen a sharp de-growth of 14 percent year-on-year in the first four months of this financial year, rating agency Icra said in its report. (Source: PTI, moneycontrol.com, September 05, 2018)

The country's apparel exports are likely to remain subdued in the near term, growing at a modest pace of 1-2 percent for the rest of FY19, due to factors such as transition to the new taxation regime and liquidity challenges for the apparel industry, a report said. The exports have seen a sharp de-growth of 14 percent year-on-year in the first four months of this financial year, rating agency Icra said in its report. As this would still mean a 4 percent annual decline in the country's apparel exports in FY19, it is expected to be the fourth consecutive weak year for exports, following the 4 percent de-growth in FY18 and modest growth rates of 1 percent and 3 percent in FY16 and FY17, respectively, it said. The country's apparel exports saw an unencouraging trend, with a marginal de-growth of 1 percent in FY18 as well as 4 month of FY19, even after adjusting for apparel exports to the UAE, which have declined inexplicably and sharply over the past one year, according to Icra. "With several internal as well as external headwinds, the past year turned out to be rather challenging for India's apparel exporters. Transition to the new taxation regime, besides posing liquidity challenges for the industry, added to uncertainties because of alternating stances on export incentives during the year," said Jayanta Roy, senior vice-president and group head, Icra. Further a stronger rupee heightened the challenges in the international market by affecting competitiveness of players in an intensely competitive international apparel market, he added. According to Icra, the country's apparel sector's performance is worrying as it is contrary to the global trends. The global apparel trade is back on the growth trajectory with an estimated growth of 4-5 percent in the first half of CY2018 (calendar year) and 2 percent in CY2017 in US dollar terms.

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The positive trend in the global apparel market is being led by the strong recovery in apparel imports by the European Union (EU), which accounts for two-fifth of the global apparel trade, it added. "Going forward, steps taken by the government to address these concerns, will remain crucial for apparel exporters to capitalise on the revived global apparel trade as well as the continuing loss of market share by China, which opens up a lucrative opportunity for key players such as India, Vietnam and Bangladesh," said Roy.

Home Continued Fall In Rupee Leads To Rate Hike Fears (Source: Vishwanath Nair, Bloomberg Quint, September 04, 2018) The Indian rupee fell further on Tuesday and took bond prices down with it, as investors worried about the inflationary impact of a weaker currency. The rupee closed at a record low of Rs 71.57 against the dollar, down 0.5 percent compared to Monday’s close. The rupee has fallen 2 percent in the last five days alone. This is, however, not out of line with peer currencies like the Indonesian rupiah, which has also seen a 2 percent depreciation. The rupee fall, which was first seen as a healthy correction, is now leading to a fear of higher interest rates. Reflecting that concern, the 10-year benchmark bond yield rose to a four year high of 8.042 percent on Tuesday afternoon compared with Monday’s close of 7.999 percent. Bond yields and bond prices move inversely. The risk of imported inflation is keeping bond investors edgy, said Tushar Arora, senior economist at HDFC Bank Ltd. “We have a year-end call on the 10-year bond yield around 8.1-8.2 percent, and I think the trend seems to be moving in that direction,” he added. India’s Monetary Policy Committee has hiked rates twice this year to 6.5 percent. Most economists were expecting a pause after the two consecutive rate hikes. However, with the currency continuing to weaken, some see the risk of another rate hike rising.

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The rupee has depreciated nearly 10 percent since March, owing to rising crude oil prices and the fear of a widening current account deficit. It is the worst performing currency in the Asian region so far this year. What has added to the weakness is the perception that the RBI is intervening less to support the currency. A series of comments from government officials, suggesting that a weaker currency is beneficial for the economy have also led to a change in expectations in the currency. Many now expect the rupee to trade in a band closer to 70-72 against the U.S. dollar. R Sivakumar, head of fixed income at Axis Mutual Fund, said that over the last few weeks, the market has witnessed the RBI allowing the rupee to depreciate beyond what some would consider normal. “If the RBI has changed its stance with respect to the rupee’s value, then that is bad news for the bond market,” Sivakumar said. To be sure, should the RBI choose to intervene and curb the fall in the rupee, it has a number of tools at its disposal. Forex reserves, at above $400 billion, are still adequate to cover more than nine months of imports. The RBI could also consider hiking interest rates to defend the currency - an option used by economies like Indonesia, said Arora of HDFC Bank. Sivakumar pointed out that while the rate defence has not helped in supporting the rupee in the past, higher rates may be needed purely from an inflation standpoint if the currency continues to depreciate. In extreme circumstances, the RBI and the government could look at options like schemes to draw in foreign currency deposits or open a special window to sell dollars directly to oil companies. “Having said that, this is a very tricky situation for the central bank. On one end, if they intervene, it brings rupee liquidity in to the market and at the same time they have to maintain liquidity at the neutral level, being an inflation targeting bank,” Arora said.

Home Finance ministry notifies annual tax return forms for businesses registered under GST (Source: News Services Division, All India Radio, September 05, 2018)

File PicFinance ministry has notified annual tax return forms for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during 2017-18 fiscal have to be provided in a consolidated manner.

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The ministry has notified annual return form for normal taxpayers (GSTR-9) and for composition taxpayers (GSTR-9A). The last date for filing the annual return forms is 31st of December. With the notification, government has accepted the long pending demand of industry and has notified annual return form for normal taxpayers (GSTR 9) and annual return form for composition taxpayers (GSTR 9A) in which detailed information has to be provided by businesses.

Home GST Council seeks ways to ensure MSMEs pay taxes every month MSMEs may be asked to give details of monthly sales data to check with income tax payments, say officials (Source: Remya Nair and Gireesh Chandra Prasad, Livemint, September 05, 2018)

The law committee of the GST Council considering options to ensure timely tax payments by MSMEs New Delhi: Tax authorities are considering ways, including the levy of interest on tax dues, to ensure that micro, small and medium enterprises (MSME) pay taxes every month, two officials aware of the matter said. Nearly 93% of taxpayers with annual sales up to ₹5 crore ne ed to file only quarterly returns, according to a recent decision of the Goods and Servie Tax Council (GST Council). The government is trying to prevent any cash flow problems for the exchequer from this politically crucial segment, the people cited above said on condition of anonymity. “The law committee of the GST Council is examining how to ensure that taxpayers pay tax every month. The monthly tax payment has to approximate a third of the quarterly tax payments. If the variation is beyond a percentage, the taxpayer may be asked to pay interest on that part,” said one of the two officials.

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Such safeguards are being introduced to address concerns of states over any potential revenue leakages from easing of compliance burden on firms. “MSMEs may also be asked to give a break-up of monthly sales data to check if the monthly tax payments made are commensurate to sales,” said the second official. The central government is keen to give relief to the MSME sector, which suffered from the November 2016 demonetisation and the July 2017 GST rollout. Small businesses and traders are also politically relevant as they form a key support base for political parties, including the ruling Bharatiya Janata Party. According to data available with the MSME ministry, there are more than 63 million MSMEs engaged in manufacturing, services and trade, more than half of which are in rural areas. These enterprises account for about 110 million jobs and contribute about 29% of the country’s economic output, the ministry said, citing the National Sample Survey 73rd round conducted during 2015-16. The role of SMEs in employment creation makes it a priority for the government to make it easier for them to do business and comply with regulations. Besides quarterly filing of tax returns, the GST Council is also exploring the option of providing partial tax relief to MSMEs from GST. This may be done through a refund mechanism for a certain percentage of the tax payment. The GST Council, in its previous meeting in August, had decided to set up a panel to look into issues faced by MSMEs and come up with suggestions before the next GST Council meeting on 28-29 September in New Delhi.

Home High wool prices to squeeze margins of winter fabric makers (Source: Parshant Krar, The Economic Times, September 05, 2018)

India produces about 2.2 million metres of worsted fabric every month

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CHANDIGARH: Makers of worsted fabric in India are set to face a squeeze in their margins this year as global wool prices have reached a new high due to a slump in production in Australia and rising demand from China. Australia is leading producer of wool while China is the largest buyer. “Drought in Australia has impacted the livestock and also production of wool,” said Prashant Jain, head, sales and marketing, at Indoworth India, a worsted fabric maker owned by Lohia Group. International wool prices have increased by up to 180% in the last two years, but Indian worsted fabric makers are unable to pass it on to consumers. “The wool prices have jumped, but Indian consumers are not ready to pay for the price rise and thus manufacturers are using more manmade fibre,” Jain said. Leading makers of winter garments, such as Raymonds, Reid and Tailor, Indoworth India, Jayashsree Textiles (Aditya Birla Group), OCM and Reliance IndustriesNSE 1.04 %, are now increasingly moving to polyester viscose from polyester wool, to lessen the impact of high wool prices on their margins, industry insiders said. “There is a sharp gap in demand and supply of wool due to adverse climatic conditions in Australia and it has caused a major rise in wool prices in the last couple of years,” said Pawan Sharma, head of export and import at Oswal Wollen Mills, a Nahar Group firm. China buys almost 78% of wool exported from Australia, which produces about 23% of wool in the world. India and Italy are other major buyers of wool from Australia, as well as New Zealand and South Africa, which account for 10% of international wool market. Wool is categorised in terms of fibre diameter of between 14.5 microns to 32 microns, and prices are higher for lower micron wool. Sharma said the price has increased by 70% for category of wool used by knitwear industry. Piara Lal Seth, president of Shawl Club Amritsar, said the price rise is more than Rs 600 per kilogram for wool used in shawl industry. He said the fall in rupee valuation would buttress export, but domestic market will be affected by increase in wool price. “Also Chinese goods are being circumvented through Bangladesh in order to evade anti-dumping duty.” Lal said high cost of power and interest rates are hurtling local industry and it is losing to global competition. Also shawl imports from Bangladesh is on the rise. Shawl manufacturing is categorised as a cottage industry. Heavily depended on outsourcing to households and smaller units, the shawl industry employs over one lakh families. India produces about 2.2 million metres of worsted fabric every month.

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Farmers climb cell tower to protest (Source: The Hans India, September 05, 2018)

Farmers climb cell tower to protest Mothkur (Yadadri- Bhongir):

Cheated by seed sellers, five farmers of Dattappa Gudem of Mothkur mandal in the district climbed a cell tower located at Padmashali Nagar in Mothkur and threatened to commit suicide on Tuesday. They demanded stern action against the middleman who sold spurious cotton seeds and compensation to them.

According to the sources, farmers Narmalla Uppalaiah, Vallapu Venkanna, Boddu Laxminarsu, Nalla Sathaiah, Boddu Yadaiah climbed the cell tower with pesticide bottles. Tension prevailed at the venue for six hours. On getting information, farmers of Dattappagudem under the leadership of MPTC Elugu Parvathamma and Yadaiah rushed to the spot and staged protest in favour of farmers who had climbed the cell tower. Farmers were not convinced even after conversation and assurance of justice by Tahsildar Jyothi, CI Srinivas and other officials. Even they could not accept the assurance of action against the responsible persons by the District Collector during the phone conversation with Collector Anitha Ramachandran and MPTC. Farmers on cell tower said as many as 200 farmers cultivated cotton crop on 150 acres land. The seeds were supplied by the village farmers coordinator E Sathaiah and farmer M Kottappa turned out to be spurious. They further informed that each farmer who sowed the purchased spurious seeds lost between Rs 1 lakh and 1.5 lakh. Officials including local police, DCP, Agriculture officials and Collector did not responded to address their issue; moreover they received mockery from few officials, they said. They asserted that they would not get down from the cell tower till all the victim farmers get justice and compensation. Local Congress, CPI, BJP, TDP, YSRCP leaders expressed their solidarity to the protesting farmers. On direction of superiors, Choutuppal ACP Ramesh reached the spot and had discussions with protestors. They get down after ACP’s assurance of filing cases against middlemen, who cheated them and compensation to lost cotton crops.

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Later speaking to the media, ACP Ramesh informed that police filed cases against the village farmer coordinator Elugu Sathaiah and Madasu kotaiah on the charges selling spurious cotton seeds to farmers of Dattappagudem.

Home Officials turn desperados (Source: Adepu Mahender, The Hans India, September 04, 2018)

M Ramesh in his powerloom unit after officials damaged yarn in Sircilla on Tuesday Sircilla:

Racing against time to achieve the target production of Bathukamma saris, the desperate officials of the Handlooms and Textiles Department showed their anger at the small-scale powerloom units by damaging the yarn on the machines that were engaged in the manufacturing of shirting cloth.

The State government has placed Rs 280-crore order to produce 90 lakh saris totalling to 6 crore meters before the October 6, however, it js learnt that powerlooms in Sircilla so far have achieved only half their target. It may be recalled here that the government drew flak from Opposition parties for importing saris from Surat in Maharashtra after failing to achieve required sari production in Sircilla. Against this backdrop, the officials who went to the units owned by M Ramesh and D Ashok damaged the yarn set on machines on Tuesday. The unit owners said that yarn worth around Rs 1 lakh was damaged. Condemning the attack on powerlooms, Pantham Ravi, Powerloom Workers Union district secretary, said that this is nothing but the highhandedness of the officials. The officials do not know that these powerlooms are not ideal for looming Bathukamma saris. Moreover, there are some workers who cannot identify colour properly, so they chose to produce other variety cloth. On the other hand, the officials contend that though the government was giving a good wage for Bathukamma saris, some units are opting to produce other cloth that does not give them a handy wage. Speaking to The Hans India, the Assistant Director of Handlooms and Textiles V Ashok Rao said: “So far we have achieved the production of 50 lakh Bathukamma saris and we are confident of reaching the target by October 6.” When asked about using pressurising

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tactics, he said that they had done so to compel the unit owners to produce Bathukamma saris instead of other cloth that don’t give them a fair wage. Although there are 30,000 powerlooms in Sircilla, it’s learnt that only 20,000-odd are fit for looming Bathukamma saris which this year have a specification of zari border. The production started with just about 500 powerlooms in June and later the number went up to 18,000. Adding more problems to this was shortage of workers. As a result, the production took a dent, it’s learnt. Although wages for Bathukamma saris is more, some units continue to produce their regular order - polyester cloth. It may be mentioned here that government pays Rs 8.50 per meter to Asamis (unit managements) and of which Rs 4.25 goes to worker. “It has its own reasons. There are quite a few workers who cannot identify colours as it needs a lot of concentration. This apart, not all those who migrated to other places in search of livelihood have returned to their native places. As a result, there was a shortage of workers,” Asami Association president Konda Prathap said. He said that only units that have more than 20 powerlooms are able to make hay of the government’s benefits.

Home For textile dyeing units, extracting groundwater 750 times cheaper than treating wastewater Textile dyeing units would rather extract groundwater than treat wastewater due to the costs involved but a lack of monitoring and financial assitance from the government is making things worse (Source: Sugandha Arora Sardana, Sanjeev Kumar Kanchan

, Down to Earth, September 04, 2018)

There are about 800 textile dyeing units on the banks of the Luni river in Rajasthan

that discharge wastewater into the river

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THE WATER in Rajasthan’s Bandi river is strikingly blue in the stretch along the Pali district. But the blue is not natural and the water cannot be used. The colour is due to the presence of effluents discharged from over 500 textile dyeing units on its banks. In May 2018, while hearing a 2012 public interest petition filed by Mahavir Singh Sukarlai of Pali non-profit Kisan Paryavaran Sangharsh Samiti, the National Green Tribunal (NGT) declared the water of the river unfit for irrigation on the basis of an inspection report submitted by the tribunal’s monitoring committee. The report said that the level of total dissolved solids in the groundwater in the area was 9,000 mg/l, when the levels in the surrounding areas were 400-1,600 mg/l, and blamed the textile dyeing units for polluting the groundwater as well as the river. The contamination is taking place despite a 2012 Rajasthan High Court order that bans discharge of treated or untreated water in the Bandi. The problem is not limited to Rajasthan. “There are over 140 textile clusters in India. Of these, dyeing units are concentrated in Tamil Nadu, Rajasthan, Uttar Pradesh, Punjab, Gujarat and Maharashtra, and the problem of river water pollution is equally widespread,” says M Madhu-sudanan, additional director, Central Pollution Control Board. In 2015, the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) proposed a countrywide zero liquid discharge (ZLD) regime for dyeing units that discharge more than 25 kilolitres of wastewater a day and all common effluent treatment plants (CETPS). Under this, all such units and CETPs had to recycle and reuse their wastewater instead of releasing it into rivers. But the draft was never implemented due to opposition from the industry which said that the technology was too expensive. ZLD system uses technologies, such as three-stage reverse osmosis, evaporators and crystallisers that recycle salts and over 95 per cent of water for reuse. “The cost of ZLD wastewater treatment is more than R150/m3, because the process of recovering salts is energy-intensive. In states like Punjab, Haryana and Uttar Pradesh, it is cheaper to just extract groundwater,” says Sajid Hussain, CEO of Chennai-based Tamil Nadu Water Investment Company. In Ludhiana district of Punjab, for instance, groundwater extraction costs just 20 paise/m3.

Though there is no nationwide policy on the implementation of ZLD, the technology is being used in two districts of the country due to court intervention. The Madras High Court in 2006 and the Rajasthan High Court in 2012 banned discharge of treated or untreated effluents in the Noyyal and Luni rivers. As a result, the units in Tiruppur and Barmer districts were forced to adopt ZLD systems. “Residents, especially farmers, had filed numerous petitions over the years due to which the courts intervened in these districts,” says Hussain.

Forced to act

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But in both the districts the units and CETPs kept flouting the order till the courts threatened them with closure. In 2011, the Madras High Court ordered closure of 743 units and CETPs in Tiruppur unless they opted ZLD technologies. After the order, about 450 units set up ZLD system in their 20 CETPs, while about 150 units adopted ZLD technologies in their individual treatment plants. “The units in Tiruppur have strictly followed ZLD in the past seven years and no water is being discharged into the Noyyal river. Moreover, the demand for freshwater has reduced remarkably in the district while the water table has swelled,” says T R Vijaya Kumar, managing director of CBC Fashions (Asia) Pvt Ltd, a textile dyeing company based in Tiruppur. These results are also substantiated by 2030 Water Scarcity Group, a public- private-civil society collaboration, which says that the municipal water demand of the units has reduced by over 0.87 million cubic metres a year since they adopted ZLD. “Similarly, in Barmer, the units have installed ZLD systems in all six CETPs. Since the drive to adopt ZLD started only about six years ago it is too soon to gauge the results,” says Digvijay Singh Jasol, advocate at the Rajasthan High Court, who filed the petition against discharges in the Luni river. NGT too is ensuring that the units follow the rules on discharge by conducting regular inspection. The last inspection was conducted in May.

“A national level policy is required for large-scale implementation of ZLD,” says Madhusudanan. “The primary reason the units are disinclined to opt ZLD is cost. But that can be offset by framing right policies” says Hussain.

Cohesive plan is key

“Currently, the difference in running ZLD units and non-ZLD units is just 15 per cent, which can be further reduced ,” says S Nagarajan, president, Dyers Association of Tiruppur. “Implementation of ZLD across the country would also level the playing field because currently ZLD adds about R4 per garment. If everyone had to use the technology, the cost difference would be negated,” Kumar explains. Moreover, when the

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court made ZLD compulsory in Tiruppur, many units shifted to the neighbouring state of Karnataka, where there was no such order. This would not have happened had ZLD been compulsory across the country. “Currently, there is a lack of monitoring by regulatory authorities, the price of water for industries is quite low in many states and industries are free to exploit groundwater. This needs to change,” says Hussain. “The government should also encourage adoption of cleaner technologies by providing financial assistance and subsidies,” he adds. (This article was first published in the 1-15th September issue of Down To Earth).

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GLOBAL:

Vietnam’s cotton imports surpass $2 billion from Jan-Aug (Source: Viet Nam News, September 04, 2018)

Việt Nam estimates it will buy more than $3 billion worth of cotton this year, up $700-800 million against the previous year. — Photo baodautu,vn HÀ NỘI — Việt Nam spent more than US$2 billion on importing cotton in the first eight months of 2018 – the biggest amount ever spent by the garment and textile sector. Of the total, imports from the US exceeded $1 billion , according to the General Department of Vietnam Customs. The increase in spending on cotton imports was attributed to growth in garment and textile exports, as Việt Nam depends on nearly 100 per cent imported cotton materials. Việt Nam estimates it will buy more than $3 billion worth of cotton this year, up $700-800 million against the previous year. The country has also set a target of earning $34-35 billion from garment and textile exports. Last year, the textile and garment industry gained a year-on-year increase of 10.23 per cent in export value to $31 billion, beating its target set at the beginning of the year of $30 billion. — VNS Read more at http://vietnamnews.vn/economy/465037/vietnams-cotton-imports-surpass-2-billion-from-jan-aug.html#cqXMcwxuY6cjLZZh.99

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Cotton prices to trade sideways to lower: Angel Commodities According to Angel Commodities, MCX Oct Cotton continue to trade lower on Monday to trade at 5 - weeks low on reports of improvement in acreage and lesser pest attacks in Maharashtra and good condition of cotton in main cotton growing states. (Source: moneycontrol.com, September 04, 2018)

Angel Commodities' report on Cotton

MCX Oct Cotton continue to trade lower on Monday to trade at 5 - weeks low on reports of improvement in acreage and lesser pest attacks in Maharashtra and good condition of cotton in main cotton growing states. Cotton acreage till last week was down by 1.9 % on year to 117.7 lakh hac compared to 119.9 lakh ha last year, according to the farm ministry data. Currently cotton futures are traded about 25% higher than last year prices. The USDA’s FAS has projected India's cotton production to decline 1.7% on year to 365 lakh bales (1 ba le = 170 kg) due to delay in monsoon rains and fall in acreage. As per Commerce ministry data, cotton exports in June surged by 27.6% to 5.7 lakh bales as compared to last year. India is likely to export 70 lakh bales of cotton in 2018/19, down 30% from an earlier estimate due to low crops.

Cotton futures are expected to trade sideways to lower due to improving acreage and weather conditions in top cotton growing states - Gujarat and Maharashtra. However, reports of pest attack may restrict production prospects may support prices in coming weeks.

Outlook

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UAE's textile printing industry's tech migration could help them command $2.66bln market: IEC Booming furniture industry triggers the industry towards growth (Source: Zawya, September 04, 2018)

Sharif Rahman, CEO, IEC

Press Release

Dubai, UAE: Textile printing industry has come of age and is rapidly growing across the globe and the Middle East region. UAE houses thousands of retail destinations, including several high end furniture brands and these numbers are on the rise. According to Smithers Pira, the UK based market intelligence, testing and consulting firm, this industry is slated to grow to US$2.66 billion by 2021. The key objective of textile printing is to produce fabric with an attractive design and defined pattern. This lucrative market expansion can be attributed to several factors such as the rise in customer demands, faster go-to-market strategy by companies and also the rapid expansion of the healthcare, real-estate, hospitality, education and retail sectors. “We have seen a growth in demand from across various vertical industries and we foresee this growth due to the rapid expansion of retail malls and hospitality industries. Our trade show SGI Dubai witnesses new exhibitors each year and that is a key indicator for us,” stated Sharif Rahman, CEO, International Expo Consults. Currently the Asia Pacific region has the largest market share for textile printing, followed by Europe and North America. Within Asia, China and India alone hold the largest market share for textile printing globally. Asia-Pacific region is expected to witness highest growth and maintain its dominance in the forecasted period. “It is important for the players within the UAE to closely look at their markets and its potential and capitalise on the same by leveraging innovative cutting edge technologies.

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This will further help their own industry and thereby significantly contribute towards the economy. With the fast growing population not only in Middle East but across the globe would further increase the demand and should plan ahead to capitalise on this opportunity. Progress in technology paired with increasing method of printing is driving the global textile printing market,” added Mr. Rahman. SGI Dubai 2019, is one such destination, a unique trade show that actually addresses the needs of the textile printing industry stakeholders and will bring the best players in the industry from across the globe. From among all the other forms of printing digital printing is expected to garner highest growth in the coming years. On the bases of technology the global market for textile printing can be split into direct printing, white/ color discharge and resist printing. Other forms of printing include block printing, roller printing, duplex printing, screen printing, stencil printing, transfer printing, blotch printing, jet spray printing and electrostatic printing. SGI 2018 was a huge success with close to 330 international and regional exhibitors showcasing the latest in UV printing, textile printing, retail, LED and various signage technologies. Thousands of visitors graced the show from across the globe including the Middle East, Africa, Asia and Europe. SGI Dubai is an ideal converging point where visitors and exhibitors can reach out with architects, sign makers, print and production manufacturers, media agencies, real-estate developers, brand and image consultants among others. The event is a well-established business forum, which is recognised globally and constitutes workshops and seminars held by industry experts. It is one of the most eagerly awaited events of the year in the region to cater to the needs of exhibitors and visitors in the signage, outdoor media, screen and digital printing, LED and textile printing industries.

About International Expo-Consults (IEC):

International Expo-Consults (IEC) is an internationally recognized trade show management company with an impressive track record of 25 years of operations in the Middle East and Asia Pacific region. The Exhibition arm of the Dubai-based conglomerate, the Falak Holding; IEC is the organiser of key exhibitions including Sign and Graphics Imaging (SGI Dubai) and the Dubai, Entertainment, Amusement and Leisure (DEAL). Dubai-based conglomerate, Falak Holding has been an industry pioneer for over three decades having diversified business interests including real estate development; retail - sports, fashion, home furnishings; exhibitions, medical diagnostics, trading and many more as part of its portfolio. Falak Holding is also a key stakeholder and investor in the prestigious Dubai Sports City project. Kindly log on to www.signmiddleeast.com for more information on the show.

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Turkmenistan expects 1,050,000 tons cotton production (Source: Fibre2Fashion, September 04, 2018)

The Central Asian country of Turkmenistan is expecting production of 1,050,000 tons of cotton

during the current year, for which harvesting will begin this week. Around 545,000 hectares of land was sown with various finely- and medium-fibres cotton varieties—133, Yoloten-7, Dashoguz-120, Serdar, C-4727, Yoloten-39, Yoloten-49, etc—in spring.

The main cotton growing provinces of Mary, Lebap, Dashoguz and Ahal are projected to produce 313,000 tons, 300,00 tons, 230,00 tons and 207,000 tons of crop. For the current harvesting season, there will be high level of mechanisation compared to previous years. The harvesting process will involve 1,076 harvesters, 2,261 vehicles, 2,162 tractors and 325 trailers, the state news agency of Turkmenistan said. Harvested cotton will be collected at 156 reception points, and will be further processed at 38 cotton ginning plants across the country. Experts from Turkmenstandartlary—a government organisation—will ensure strict quality control of incoming production. Cotton is the main cash crop of Turkmen agriculture and one of the main exports of the country, second only to energy resources. (RKS)

Home Uzbekistan intends to stop export of cotton fiber by 2025 (Source: Azer News, September 04, 2018)

Trend

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Uzbekistan has planned to stop the export of cotton fiber and to ensure its full processing in the domestic market by 2025, RIA Novosti reported referring to Head of the Department of Strategic Forecasting of UzTekstilProm (Uzbek Textile Industry) Association Dilbar Muhamedova. "We have a task to completely stop the export of cotton fiber by 2025 and to ensure its complete processing within the country," Muhamedova said. According to her forecasts, in 2018, the industry will be able to process about 520,000 tons of cotton fiber with the current design capacity of 720,000 tons. In March this year, during a trip to the Jizzakh region, President of Uzbekistan Shavkat Mirziyoyev announced the plans to reduce cotton exports and to increase its processing in the domestic market. Every year, the country produces about 3.5 million tons of raw cotton and 1-1.2 million tons of cotton fiber. About 50 percent of the produced cotton fiber is exported.

Home Pakistan : 'Approved varieties of cotton seed provided to growers' (Source: Business Recorder, September 04, 2018) LAHORE:

This year cotton crop has been cultivated on 5.7 million acre area and to achieve better production of cotton crop, approved varieties of cotton seed has been provided on 50 percent subsidy basis to core cotton area Multan, Bhawalpur and DG Khan divisions.

This was informed Minister for Agriculture Punjab Malik Nouman Ahmad Langerial during his visit to Agriculture House here on Monday. Syed Zafaryaab Haider Director General Agriculture (Ext) briefed him about other departmental activities. It was further briefed that an amount of 23.518 Million has been spent on this subsidy and 22,347 farmers were benefited from this subsidy scheme. Besides this, spray machinery 14.74 million cost has been provided to the farmers. To save cotton crop against Pink Bollworm attack, Rs.96.2 million spent on PB Ropes that was installed on 54 districts of Punjab on 50 acre blocks. For White fly control, department is spending Rs.39.612 million to provide genetic modified varieties of cotton crop.

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Woolmark Unveils ‘Live and Breathe’ Performance Fiber Campaign "Wool is the original performance fiber," the company noted. (Source: Tracey Greenstein, WWD, September 04, 2018)

Courtesy of the Woolmark Company The Woolmark Co. said today that it has launched its global “Live and Breathe” campaign, which seeks to ignite younger generations’ interest in merino wool’s naturally sustainable qualities, such as breathability, odor control and moisture management. Aimed at the athletic and outdoor wear markets, Live and Breathe intends to posture the material as the “original” performance fiber, the firm said. Its initiative is centered on a film that “tells the story of a synthetic world that has forgotten how to live naturally,” according to Woolmark. Throughout the month of September, its campaign will launch across social and outdoor spaces in New York, San Francisco, London, Tokyo and Shanghai, offering tailored opportunities for influencers and consumers to “wear-test the latest commercially available woolperformance products,” the company explained. The Live and Breathe campaign features brand partners such as 3.1 Phillip Lim, Erin Snow, Siki Im, Smartwool, Hoka One One, Aclima and Gabriela Hearst. The firm said “comfort and breathable” are the most important attributes people look for when buying sportswear, which is the fastest-growing sector of the $1.7 trillion global textile business.” Wool is 100 percent natural, renewable, biodegradable and the most reused, recycled apparel fiber on the planet, according to Woolmark, which describes it as an “active fiber” that reacts to changes in body temperature. It’s true that the material is highly versatile: In warm environments, wool has the ability to feel up to two times cooler to touch than synthetic fibers, due to its innate ability to move heat away from the skin. In addition, “wool can absorb up to 35 percent of its weight before feeling wet and clinging to the skin; a significant benefit in wearing wool versus nylon or polyester gear during physical exercise,” the company noted. The Woolmark Co.’s managing director, Stuart McCullough, said, “The rapid growth in demand for technical textiles has significantly boosted merino wool’s prominence in the sportswear industry due to the fiber’s naturally inherent qualities. Wool, once the fiber

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of choice for athletes worldwide, was challenged by the rise of man-made fibers. A new generation of consumers are now expecting more from their purchases and merino wool’s combined performance properties and eco-credentials are primed to meet these expectations.” McCullough added, “The Woolmark Company’s global campaign reminds consumers of wool’s natural benefits, which cannot be matched by any other fiber. The campaign features a carefully curated selection of some of the most technically advanced and innovative wool and wool-rich garments commercially available on the market today.”

Home EUR 3 million raised for fashion-tech company (Source: Innovations in Textiles, September 04, 2018) Textile Innovation Fund (Netherlands), Social Impact Ventures (Netherlands) and Bestbase Group (China) invest EUR 3 million and their active involvement in Swedish fashion-tech company We aRe SpinDye. We aRe SpinDye has developed a sustainable colouring method for synthetic textiles in the fashion and apparel industry. With the SpinDye-colouring process, water usage is reduced by 75%, the use of chemicals by 90%, energy consumption by 25% and the carbon dioxide emissions footprint is cut by 30 percent compared to traditional dyeing, according to the manufacturer. “We aRe SpinDye is exactly the kind of solution that the industry needs to become more sustainable, as evidenced by their impressive traction with fashion and apparel brands,” said Warner Philips, partner at Social Impact Ventures and Board Chair of the Cradle to Cradle Products Innovations Institute.

The three investors say they are showing their mutual commitment to drive change in the fashion and apparel industry towards a more sustainable and circular production that can be used by all textile companies concerned with resource efficiency. “We aRe SpinDye is a business ready to scale up its proven sustainable method for colouring synthetic textiles. With the quality and dedication of the We aRe SpinDye team and our

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partner investors, we are pleased to be on board, creating the impact that is perfectly in sync with the kind of investments the Textile Innovation Fund is aiming for,” commented TIF fundmanager Susan van Koeveringe. The standardised production process leads the highly analogue industry towards a much-needed digital shift, enabling the colour consistency of the fabrics to be precise and replicable and minimizing the risk of recalls and cancelled orders. Eske Scavenius from Social Impact Ventures, who will be joining SpinDye’s Board of Directors, said: “We are very excited to be investing in We aRe SpinDye. We have been on the lookout for scalable innovations that combine business with impact and accelerate the transition towards a clean and healthy textile industry: We aRe SpinDye fits the bill perfectly, and we look forward to supporting the company’s growth.”

This year We aRe SpinDye got its breakthrough, and brands like Bergans of Norway, Quiksilver, Fjällräven and Odd Molly are using the SpinDye-colouring method. The products are labelled with the SpinDye-sustainability KPIs and logo indicating the fabric is coloured with the SpinDye-colouring method. During fall 2018, We aRe SpinDye will continue to strengthen its position in the fashion- and sports/outdoor industry by exhibiting and be part of activities at tradeshows like Premiere Vision in Paris, Performance Days and ISPO in Munich. “We aRe SpinDye was one of the innovators in the second batch of our Fashion for Good-Plug and Play Accelerator Programme. We believe their method is highly relevant to meet the fashion industry’s demand. It is great to see that this is already tangible and possible now,” said Katrin Ley, Managing Director of Fashion For Good.

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The investments will grow We aRe SpinDye´s commercial reach and the impact of the brand, scale production capabilities and leverage the digital opportunities. “With our three new partners on board we will further fuel the revolution the fashion and apparel industry is going through. The global fashion industry is accountable for massive environmental impact and is one of the least digitalized industries on the globe. We are thrilled to have formed this partnership that will enable us to drive change faster and more effectively,” concluded Micke Magnusson, CEO at We aRe SpinDye. www.spindye.com

Home Bracker to show latest textile applications at ITMA Asia (Source: Fibre2Fashion, September 04, 2018)

Courtesy: Bracker Bräcker is set to show the latest textile applications at ITMA Asia, in hall 1, booth D01. The leading textile machinery exhibition will be held in Shanghai from October 15-19, 2018 at the National Exhibition and Convention Centre in Shanghai, China. Bräckeris a leading manufacturer of key components for ring spinning machines based in Switzerland.

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Bräcker’s products enable spinning mills to increase their production output at an efficient price-performance ratio. The company will demonstrate the ability to generate additional customer value, by utilising its expertise in ring spinning.

The company will display the ONYX travellers at the expo. The surface treatment of the ONYX travellers facilitates a higher efficiency. The improved gliding characteristic allow for an increase of the spindle speed by up to +1000 rpm and prolongs the life of the traveller by up to +50 per cent. Also, the running-in period is considerably reduced, Bräcker said in a press release.

Bräcker will also present the SFB traveller and ORBIT ring at ITMA Asia. The large contact surface between SFB traveller and ORBIT ring allows for increased spindle speeds even with fibres like viscose or with fibres, tending to thermal damage, for example, polyester. Higher traveller speeds of 10-20 per cent are achieved compared to the T-flange ring / C-shaped traveller system. To cover the new demands, the SFB traveller portfolio was substantially expanded in regards of traveller profiles and weights. Bräcker will display the Berkol multigrinder MGL and MGL1. The entire range of top rollers and long cots used in a spinning mill can be processed on only ONE single machine. Any execution of centre guided top roller is ground fully automatically on the Berkol multigrinder. The multigrinder MGL/ MGLQ is a very flexible grinding machine for smaller and medium sized spinning mills with up to 50,000 spindles. Operating the machine is done only from the front side of the machine. The optimal ergonomics of the multigrinder allow for its efficient operation. (GK)

Home Three events to showcase latest garment, textiles technology (Source: The Daily Star, September 05, 2018) Meherun N Islam, president and group managing director of CEMS Global, speaks at a press conference at National Press Club in Dhaka yesterday to announce the commencement of three concurrent exhibitions on textile and garments in the capital's International Convention City Bashundhara from September 12 to 15. CEMS Global. Three concurrent exhibitions in the capital's International Convention City Bashundhara will showcase the latest sophisticated and emerging technologies for textile and garment industries from September 12 to 15. “Around 1,250 companies from 25 countries will take part in the events occupying 1,500 stalls,” said Meherun N Islam, president and group managing director of the fairs organising company, Conference and Exhibition Management Services Ltd (CEMS) Global.

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The events would be the biggest meeting place for manufacturers, buyers, suppliers and consumers while providing exhibitors an interactive platform to generate business, she said while addressing a press conference at the National Press Club yesterday. The doors of the exhibitions will remain open from 10:30am to 7:30pm. Of the events, the 19th Textech Bangladesh Int'l Expo 2018 is scheduled to display machines for textile, apparel and accessory manufacturing; embroidery, circular knitting, digital printing and related services. The 14th Dhaka International Yarn & Fabric Show 2018 is expected to bring international manufacturers of fabric, yarn and special chemicals. Similarly the 33rd Dye+Chem Bangladesh 2018 International Expo is meant to highlight the latest global additions in dyestuff and chemicals focusing on Bangladesh's exports, especially the textile and garment industry. The exhibitions' broadcast partner is Independent TV, radio partner Radio Today, media partners The Daily Star and The Daily Samakal; magazine partners Textile Today, Textile Focus and Apparel View; creative partner Market Edge limited, IT partner Amar Tech, media monitoring partner Ryans Archive Limited and hospitality partner At Earth.

Home ITMA Asia + CITME 2018 Exhibitor Preview: Suessen

(Source: Textile World, September 04, 2018)

SÜSSEN, Germany — September 4, 2018 — Suessen will show the latest applications at ITMA Asia. The exhibition is held in Shanghai from October 15 to 19, 2018 at the National Exhibition and Convention Center. Suessen will welcome interested visitors in hall 1, booth D01. As the leader in compact ring and open-end rotor spinning technology, the company will demonstrate the competence in handling and processing natural and man-made-fibres, focussing on efficiency and profitability in the spinning processes. Suessen is looking forward to discussing the latest developments and their benefits: The new EliTe®: The world’s leading, most utilized and versatile compact spinning system with new innovative components further boosting productivity and yarn quality. For existing installations, Suessen offers upgrade packages to enable the customers to participate in the benefits of the latest developments and innovations. The new EliTe® will be displayed on a Rieter ring spinning machine.

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The EliTwist®Spinning System combines compact spinning and twisting of a plied yarn in one single production step, representing the most economical way to produce two-ply yarns. The HP-GX Top Weighting Arms for short staple, roving and worsted spinning machines are equipped with finely tuned heavy-duty plate springs for frictionless load transmission. The HP-GX 3010 in combination with ACP Quality Package (Active Cradle with PINSpacer NT) reduces IPIs in cotton spinning up to 60% and Uster CV% up to 15%. It is the most suitable arm to replace the existing systems on ring spinning machines, while the given top roller equipment may be reused. Premium Parts: Spinning components, spare parts and modernization packages for rotor spinning machines such as ProFiL®Rotors, ProFiL®Navels, SOLIDRINGs, PS7 TwinDiscs are most precisely manufactured to guarantee homogeneous yarn quality throughout the complete machine in order to ensure flawless textile fabrics. Source: Suessen

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