37 MARCH-APRIL2015TEXTILE TIMESTEXTILE TIMESMARCH-APRIL2015 381 MARCH-APRIL2015TEXTILE TIMESPrem MalikOurorganisedindustryseemstoberunningintoincreasing stress because of a combination of market trendsand government measures. The steep decline in exports ofcottonyarntoChinahascreatedoversupplyandpricedecline in the domestic market. While market trends cannotbe altered through policy interventions, restoring Chapter 3benefits on cotton yarn exports and providing MEIS benefitsto all yarn and fabrics in markets where there is scope forincreasingexportoftheseproductsaremeasuresthatgovernment can take to help the industry to tide over thecurrent situation. Timely disbursement of TUFS benefits wouldalso help, since the organised industry has huge backlogson this account.In CITI's efforts to sort out some of the long pendingmatters relating to TUFS, we could get a decision taken inthe last meeting of the Inter Ministerial Steering Committeechaired by Textiles Minister that professional agencies wouldbe appointed to verify the actual amount required for clearingthe blackout cases and left out cases so that taking a proposalto the Cabinet seeking funds for clearing these cases couldbe considered. But these agencies have not been appointedeven months after the decision had been taken and lack offunding seems to be the issue. In fact, TUFS is practically ata standstill at present since the total funds provided in thisyear'sCentralBudgetcanonlycoverthebacklogoflastyear. The delay in disbursements has been eating into theworking capital of the industry and there does not seem tobe any early end to this problem. For regular reimbursementsduring the current year against existing liabilities, additionalallocationshavetobesoughtintheMonsoonSessionofParliamentandforfreshinvestmentstherearenofunds.This is the situation after taking up these issues repeatedlyat various levels including the Finance Minister and the PrimeMinister. Textile industry's ability to play its legitimate roleundertheMakeinIndiaprogrammeandgenerateemploymentinruralIndiaisamongthecasualtiesofnotfundingTUFSproperly.SeveralTextileParksbeingestablished with substantial government funding will also failtoattractinvestmentsifTUFSassistancecontinuestobeunavailable.IwouldrequestallindustrybodiestocometogetherandjoinusintheeffortstosortouttheseriousTUFS issues with government.InCITI,wehavebeenmakingconcertedeffortstodiversify our textiles industry to MMF products which havevast untapped potential both in domestic and global markets.One of the major impediments is the duty burden on MMFs.ChairmansWordT TT TTEXTI LE EXTI LE EXTI LE EXTI LE EXTI LET TT TTI MES I MES I MES I MES I MESForyearswehavebeenunsuccessfullyrepresentingtogovernmenttoremoveorreducetheseduties.ThesteepAnti Dumping Duties applicable on import of viscose staplefibresfromChinaandIndonesiaaredueforreviewanddomestic fibre manufacturers seem to be demanding theircontinuationandevenextensiontofilaments.Wehaverepresented to the Designated Authority with data to showthat we have a healthy industry producing viscose fibres andthere is no case for any ADDs. I hope our request would beheard this time.IhadwrittentotheWashingtonbasedInternationalCotton Advisory Committee (ICAC) offering to host its AnnualPlenary Meeting of 2015 in India and requested Governmentof India to send a formal invitation to ICAC, which is an intergovernmental organisation of cotton producing countries. TheMinistry formally invited ICAC and it has agreed to hold theevent in India this year. The event is being hosted by Ministryof Textiles, Government of India and the arrangements arebeing made by a Committee which includes Chairman CITI.WehavehadseveralmeetingsofthisCommitteeduringrecentmonthsandithasbeendecidedthatthePlenaryMeeting will be held in Hotel JW Marriott, near the MumbaiAirport in the second week of December 2015. Efforts arebeingmadetogetparticipationfromallcottonproducingand consuming countries as speakers and delegates. For theentire cotton sector of India, including the textile industry,this will be a great opportunity to interact with major playersfrom all over the world.WehavenowreceivedformalconfirmationthatInternational Textile Manufacturers' Federation (ITMF), Zurichhave accepted CITI's offer to host the ITMF Annual Conferenceof 2016 in India. The dates and venue have to be decided induecourse.Normally,ITMFholdsitsAnnualConferencesaroundSeptember-October.WehadhosteditsAnnualConferences three times in the past and the last one was inNewDelhiinOctober2002.Nextyear'sConferencewillprovide an opportunity for our industry to interact with worldleadersinthetextilessector.CITIwillkeeptheindustryinformedofthedetailsoftheeventfromtimetotime.Iwould request for full cooperation and active participation ofall the organisations and units in the textiles industry andrelated sectors in the ITMF Annual Conference.TEXTILE TIMESTEXTILE TIMESMARCH-APRIL2015 2Contents3 MARCH-APRIL2015TEXTILE TIMESD. K. NairAmong textile producing countries of the world, there aresome which draw their strength majorly from the garmentssegment.Bangladesh,Vietnam,CambodiaandSriLankabelong to this genre as of now, though there are serious effortsgoing on at least in the first two for establishing the wholevalue chain from yarn onwards. Then there are several Latin/South American and African industries that depend mainly onduty-freeaccessforgarmentsintheUSmarket.Thesecountries have practically no investment in the upstream valuechain and the conditions attached to duty-free access in theUS market would themselves tend to keep them that way.But when it comes to integrated textile industries like thosein China, India, Pakistan and Turkey, the sector is inherentlyas competitive and efficient as its fabrics industry is. 'Inherently'is the operational word here. The success of Pakistan in madeupsandChinainthewholevaluechaincomesfromtheinherently efficient fabrics industries they have been able toestablish - especially organized weaving capacities with widewidth looms and modern and viable knitting capacities. India,on the other hand, has managed to establish a large, modernand growing spinning industry and fairly large capacities inthe garments and home textiles segments, without a fabricindustry that is inherently strong. That is why our spinningsector is over dependent on yarn exports and profitability inthesegmentisdecidedbyimportordersfromChinamorethan anything else. In home textiles, we focus more on towels,kitchen linen, table linen and mats and less on high volumeproducts like bed linen because of the infirmities in the fabricssegment.In fact, only those companies that have been ableto establish in house wide width weaving have grown big inproduction of bed linen in India.Aweakfabricsindustryoperatinginthedecentralizedsectoranddependingonmanualproductionorobsoletetechnologyisforcedtodependongovernmentdolesorconcessions for survival. It hampers demand for yarn as wellaspropersupplyforgarmentsandhometextiles.Italsohampersdevelopmentofaproperfabricsindustryintheorganized sector. The share of organized sector in the country'sfabric production has gradually come down from over 70% atIndependence to around 5% now and government doles tothe decentralized sector that produces cheap fabrics in smalllots is part of the reasons for this. Our garment industry gotestablished from the 1970s onwards - during the license andcontrol raj - when it did not have access to fabrics from globalsources. Therefore, the small lots available from the handloomCompetitiveFabricsHavetoDriveTextileGrowthandpowerloomsegmentswasthemajorsourceforthemand the garment industry developed with its focus on casualwear and low end fashion garments where such fabrics couldplay an effective role. It is only after the turn of the millenniumthat our garment industry has got into organized productionsignificantly,basedonmillfabricssourcedbothfromthedomestic and global markets. But this segment of the garmentindustry even now continues to be small and consequentlymore than half of the fabrics produced in our organized millsis still either sold as fabrics directly to domestic consumers orexported to garment makers in other countries.Handloom fabrics are rarely used in export production ofgarments these days because there is very limited demandfor such garments. The obsession of policy makers with thehandloomsegmenthasbeenamajordampenerondevelopment of India's textiles industry. Its rich heritage, thelivelihood issues of weavers and other social aspects relatingto the handloom segment surely need proper attention. But,it is equally important to see that handlooms are not soughtto be sustained at the cost of the competitiveness of the wholetextile sector. The damages that Hank Yarn Obligation causesto the spinning industry and Handloom Reservation Act causesto the power loom sector are hugely larger than the protection,if any, that these provide to handloom weavers.The way our textile machinery industry has grown hasalso played a role in keeping our fabrics segment weak. Wedo not produce weaving or knitting machines of contemporarytechnology and the production of modern processing machinesisminuscule.Givenitsfinancialposition,thereareonlyalimitednumberofunitsinourpowerloomsectorthatcanafford to buy modern looms from Europe or Japan. Thus mostpower loom units are driven to using second hand looms orChineselooms.Hugeeffortsandinvestmentsarerequiredfor producing world class machinery for the fabrics industryand incentivising domestic manufacturers as well as attractingcollaboration from global players needs to be in focus.Until our fabrics production is restored to the organizedsector and it becomes inherently competitive, the rest of thevalue chain will continue to face a tough challenge in achievingthe desired growth.editorialT TT TTEXTI LE EXTI LE EXTI LE EXTI LE EXTI LE T TT TTI MES I MES I MES I MES I MESTEXTILE TIMESMARCH-APRIL2015 4TEXTILE TIMESSalient Features of theForeign Trade Policy 2015-2020Salient feature of the Foreign TradePolicy2015-2020relatingtotextilesector are given below:FocusMarketScheme,FocusProduct Scheme, Market Linked FocusProduct Scheme and a couple of otherschemes have been amalgamated intoone single scheme called MerchandiseExportsfromIndiaScheme(MEIS).Thereisalsoasimilarschemeforservices exports called Service Exportfrom India Scheme (SEIS). In the caseof MEIS importing countries have beendividedintothreegroups.GroupAcovers 30 developed countries -EU 28,USA and Canada.f eat ur eForeign Trade Policy 2015-20Disappointing for Textile SectorGroup B has a total of 139 countrieswhich include China, Japan, Turkey andVi etnam,amongmajortexti l esimporting countries. Group C has a totalof70countrieswhichincludeSouthAsianandsomeSouthEastAsiancountries among others.The rates of reward available underMEIShavebeenindicatedseparatelyfor countries in Group A, Group B andGroup C. Some broad observations areas follows:Cottonyarnisnotincludedforreward under MEIS.ManmadeFibreYarnandWovenand Knitted Fabrics of all fibres generallyhave 2% reward in Group A countriesand Japan. This would mean that theseproducts would not be eligible for anyTheforeign TradePolicy(FTP)2015-20incorporatingprovisionsrelatingtoexportandimportofgoodsandservices, came into force with effect from the date of notification issued on 1.4.2015 and shall remain in force up to31st march, 2020, unless otherwise specified. All export and imports made up to the date of notification shall,accordingly, be governed by the relevant FTP, unless otherwise specified.Hon'ble Minister of State for Commerce & Industry Mrs. Nirmala Sitharaman on April 1st, 2015 announced theForeign Trade Policy 2015-20 in New Delhi. In her address, Hon'ble Minister said that the new five year ForeignTrade Policy provides a framework for increasing exports of goods and services as well as generation of employmentand increasing value addition in the country, in keeping with the "Make in India" vision of our Hon'ble PrimeMinister. The focus of government is to support both the manufacturing and services sectors, with a special emphasison improving 'ease of doing business'.There are various forces shaping India and its equation with the rest of the world. These challenges also presentopportunities for government, trade and industry. Government and industry must work in tandem to deal withboth. She further said, she is confident that the five year Foreign Trade Policy would enable India to respond to thechallenges of the external trade environment and take India to the next level in international trade.rewardunderMEISi nChi na,Bangladesh,Turkey,Vietnam,SouthKorea etc. which are the major marketsfor these products.In the case of garments 2% rewardhasbeenprovidedformostoftheproductsforGroupAcountriesandJapan.Madeupsbyandlargehave2%reward in Group A countries and Japan.For a couple of specified products, 5%has been provided in all the three groupsof countries.Handl oomproductshave5%reward in the countries in all the threegroups in the case of fabrics and madeups, but not in the case of garments.Jute products by and large have 5%reward in countries in all the three groups.5 MARCH-APRIL2015TEXTILE TIMESCotton SocksAdvt.TEXTILE TIMESMARCH-APRIL2015 6addressanyoftheindustry'smajori ssues.Theencouragementandfacilitiesrequiredforthissectorforincreasing exports are sadly missing inthe FTP.FTP disappointing for Textile:CITIA press release issued by CITI onits reaction to the FTP has the followingpoints:The new Foreign Trade Policy hasnot provided any additional benefits tothetextilessector,thoughmeasuresannounced for improving ease of doingbusinessandsimplifiedprocedureswould be beneficial to the textile sector,among others. In a statement here, Mr.PremMalik,Chairman,ConfederationofIndianTextileIndustry(CITI)welcomedtheannouncementoftheMinisterthatthepolicywillhavecontinuity during the 5 year period andonlyamidtermreviewwillbemade.But he noted that some benefits for thetextilesectorhavebeenremovedorscaled down.Whi l eamal gamati ngFocusSchemesandtheotherChapter3schemesintoMerchandiseExportsfrom India Scheme (MEIS), Cotton Yarnhas been completely ignored. Chapter3benefitsoncottonyarnhadearlierbeen withdrawn when cotton yarn wasbroughtunderRestrictedList.Afterwi thdrawi ngtherequi rementofregistrationofexportcontracts,thisproduct had been brought under FreeList,butChapter3benefitswerenotrestoredundertheearlierFTP.Thisanomaly has not been corrected underthe new policy either.ManmadeFibreYarnaswellasWoven and Knitted Fabrics have beenprovided 2% reward in the EU, the USA,CanadaandJapan.Thiswouldmeanthat these products would not be eligibleforanyrewardunderMEISinChina,Bangl adesh,Sri Lanka,Turkey,Vietnam,SouthKoreaetc.whicharethemajordestinationsfortheseproducts. In the case of made ups andgarmentsalso,only2%rewardhasbeen provided for the same countries.Manmadefibresusedtogetbenefitsunder Focus Schemes, but do not haveany under MEIS.Thanki ngtheCommerceandIndustry Minister for continuing EPCGschemeandreducingtheexportobligationmarginallyfordomesticallyprocuredcapitalgoodsunderthescheme, Mr. Malik stated that this is awelcome step both for the textile andmachinery industries.The Foreign Trade Policy Statementtal ksaboutprovi di ngi nterestsubventiononidentifiedsectorsforaperiod of 3 years. The sectors have notbeenindicatedandnodefinitiveannouncementofthesubventionhasbeen made. "I hope textiles will find aplace when the announcement comes"said Mr. Prem Malik.Theseanomalieswillhavetoberectified immediately to ensure that ourexportswhicharealreadyfacingstiffcompetition do not get impaired further,denying us the growth opportunities inthe global market. A representation hasalso been sent by CITI Chairman to theHon'ble Prime Minister and concernedMinistries as well, requesting for certainurgent measures to ensure growth ofTextile sector and its exports.The Merchandise Exports from IndiaScheme (MEIS) announced as part ofthe FTP is annexed herewith:-Annex:I. MerchandiseExportsfromIndiaScheme(i) MerchandiseExportsfromIndiaSchemehasreplaced5differentschemesofearlierFTP(FocusProductScheme,MarketLinkedFocusProductScheme,FocusMarketScheme,Agri .InfrastructureIncentiveScrip,VKGUY) for rewarding merchandiseexportswhi chhadvaryi ngconditions (sector specific or actualuser only) attached to their use.EPCG scheme continues with somechanges. Imports under the scheme willnot have exemption from anti dumpingdutiesorsafeguardduties.Exportobligationcontinuestobe6timesofduties foregone in 6 years, plus averageexport performance of the past. But ifcapi tal goodsaresourcedfromdomesticproducersagainstEPCGauthorisation, the export obligation willbe 75%, as against 90% earlier.Statushol dershavebeenregrouped.InsteadofExportHouse,Trading House etc., these will now becalled one star to five star Export Hosesand their status will be decided on thebasisoftheirexportperformanceinDollar terms as under:One Star -USD 3 millionTwo Star -USD 25 millionThree Star -USD 100 millionFour Star -USD 500 millionFive Star -USD 2000 millionThe Foreign Trade Policy Statementsaysthataprogrammeforprovidinginterest subvention on identified sectorsfor a period of 3 years has been workedout and budget allocation in 2015-16 hasbeen made available. The sectors havenotbeenindicatedandtherehasnotbeen any announcement as such of thissubvention - probably because that hasto be done by RBI/Finance Ministry. Inany case, it appears that only MSMEsmaybecoveredbythiswhentheannouncement comes.Textile and Clothing is the largestempl oymentprovi deri nthemanufacturingsectorofthecountrywhosecontributiontothecountry'sgrowth has been well recognised by thegovernment' sEconomi cSurvey.However the Foreign Trade Policy aimedto double the country's exports to US$900billionby2020fromthelevelofUS$ 465.9 billion in 2013-14 has onlyreducedexportfacilitationforthissector.Theindustryplayershaveexpressedtheirdisappointmentoverthe FTP announcements as it does notf eat ur e7 MARCH-APRIL2015TEXTILE TIMES(ii) Now all these schemes have beenmergedintoasinglescheme,namelyMerchandiseExportfromIndiaScheme(MEIS)andtherewould be no conditionality attachedtothescripsissuedunderthescheme. Notified goods exported tonotified markets would be rewardedon realised FOB value of exports.A. Country Groups:CategoryA:TraditionalMarkets(30) - European Union (28), USA,Canada.CategoryB:Emerging&FocusMarkets(139),Africa(55),LatinAmericaandMexico(45),CIScountries(12),TurkeyandWestAsi ancountri es(13),ASEANcountries (10), Japan, South Korea,China, Taiwan,Category C: Other Markets (70).B. Products supported under MEISLevel of Support:Higher rewards have been grantedforthefol l owi ngcategoryofproducts: Agricultural and Village industryproducts,presentlycoveredunder VKGUY. Val ueaddedandpackagedproducts. Eco-friendly and green productsthat create wealth out of wastefrom agricultural and other wasteproducts that generate additionalincomeforthefarmers,whileimproving the environment. LabourintensiveProductswithlarge employment potential andProductswithlargenumberofproducers and /or exporters. Industrial Products from potentialwinning sectors. Hi-tech products with high exportearning potential.C. MarketsSupported MostAgri cul tural productssupported across the Globe. IndustrialandotherproductssupportedinTraditionaland/orEmerging markets only.D. Highpotentialproductsnotsupportedearlier:Support to 852 Tariff lines that fitin the product criteria but not providedsupport in the earlier FTP. Includes linesfrom Fruits, Vegetables, Dairy products,Oilsmeals,Ayush&HerbalProducts,Paper, Paper Board Products.E. Globalsupporthasbeengrantedtothefollowingcategory: Fruits, Flowers, vegetables TeaCoffee,Spices Cerealspreparation,shellac,Essential oils Processedfoods, Eco-Friendlyproductsthataddvalue to waste Marine Products Handloom,Coir,Jute,productsandTechnicalTextiles,CarpetsHandmade.OtherTextileandReadymade garments have beensupportedforEuropeanUnion,USA, Canada and Japan. Handicraft, Sports Goods Furniture, Wood ArticlesF. Supporttomajormarketshavebeengiventothefollowingproductcategories Pharmaceuti cal s,Herbal s,Surgicals Industrial Machinery, IC Engine,Machi netool s,Parts,AutoComponents/Parts Hand Tools, Pumps of All Types Automobiles,Twowheelers,Bicycles, Ships, Planes Chemicals, Plastics Rubber, Ceramic and Glass Leathergarments,saddleryitems, footwear Steel furniture, Prefabs, Lighters Wood , Paper, Stationary iron,steel,andbasemetals,productsG. Other sectors supported underMEIS 352 Defence related Product withexportofUS$17.7Bconsistingof Core Products (20), Dual Useproducts (60) ,General Purposeproducts (272). 283 Pharmaceutical products ofBulk Drugs & Drug Intermediates,DrugFormulationsBiologicals,Herbal, Surgicals, and Vaccines. 96 lines of Environment relatedGoods, Machinery, Equipment's. 49lineswheremandatoryBISstandards are prescribed. 7 lines of Technical Textiles.H. Participationinglobalvaluechain of the items falling underthescheme: 1725 lines of Intermediate Goods- These goods become inputs inthemanufacturingofothercountriesandwillstrengthenbackward manufacturing linkageswhi chi svi tal forIndi a' sparticipationinGlobalValueChains. 1109linesofCapitalGoodssector-willalsostrengthenManufacturing Base in India. 1730linesofConsumerGoodssector- We hope a quantum jumpinexportfromthissectorwithstrengtheningofMakeinIndiaBrand in near future.I. Technologybasedanalysis: 572lines-LowskillTechnology-intensive manufacturing. 1010 lines-Medium skill Technology-intensive manufacturing. 1309 lines-High Skill Technology-intensive manufacturing.f eat ur eTEXTILE TIMESMARCH-APRIL2015 8TITAS participation Advt.9 MARCH-APRIL2015TEXTILE TIMESTEXTILE TIMESMARCH-APRIL2015 10J. WomenCentricProductssupported under MEIS(a) Women workers constitute 52% ofplantation workers-203 lines of TeaCoffee,Spices,Cashew.(b) 69%oftheaggregatefemaleemployment is concentrated in thefollowing sectors:(i)Manufactureofotherfoodproducts-JellyConfectionery,f eat ur etomatoketchup,cookedstuffed pasta, pawa, mudi andthe like, gingerbread , papad,pastries and cakes.(i i )Manufactureofweari ngapparel -396l i nesofReadymadeGarments(c) Sectorsthathaveasignificantproportionoffemaleemployment(more than 25%):(i) Agri cul tural andani malhusbandryserviceactivities,exceptveterinaryactivities-263linesofbasicAgricultureproducts.(ii) Manufacture of footwear - 28Footwear and Leather products.(iii) ConsumerElectronicsandElectronic Components, watchesand clocks - 483 lines. 11 MARCH-APRIL2015TEXTILE TIMESExportsfromthetextilesector,consisting of textile fibers, yarns, made-ups, garments, jut and jute products,coir, handicrafts, carpets and handloomproducts,reachedtoUSD38513.35million during April-March 2015 whichwas around USD 38467.01 million duringthe same period of previous FY. In termsofIndianrupeeIndia'sT&CexportsweretothetuneRs.235553.53cr.duringApril-March2015whichwasaround Rs. 233366.41 cr. over the sameperiod of previous year. In USD and inINRtermsT&Cexportswentupby0.1% in and 0.9% respectively in April-March2015overthesameperiodofprevious year. When we look at month-on-month growth of India's T&C exportsto world it is noteworthy that during thefirst three months of FY 2014-15 exportshadpickedupveryfastandinthesubsequentmonthsitstartedslidingdown and reached to the lower level of1%inUSDtermsand2%inrupeeterms in March. 2015. Though, globaleconomicupheavalwasnotinthefavour of Indian T&C exports, the delayinFTPannouncementandindifferentatti tudeofgovt.towardsT&Cmanufacturingsectorcomparedtoother sectors have largely contributedintheslowingdownofT&CexportsgrowthinthelastfivemonthsofFY2014-15.Despi tetheprevai l i ngunfavourabl eeconomi cpol i cyenvironment for textile manufacturingincountryanduncertaindemandinglobalmarket,India'sT&Csectorexports have grown higher than the allcommodity exports growth during April-March2015.ItisalsopertinenttomentionthatamongsttheprincipleTrade Performance ofIndian Textile and Clothing SectorAn Update (April-March 2014-15)textileexportcommoditiesaround16commodities registered positive growthand growth rate of all 16 commoditieswas significantly higher than the India'sall commodity exports growth during theentire period of April-March 2015.Exports PerformanceA.ExportsofTextileFibres:Exports of textile fibres have declinedverysharplyduringApril-March2015over the same period of previous yearand reached to USD 2469.8 mn. whichwasUSD4251.1mn.inApril-March2014. Exports of this textile group hadgonedownby-41.9%inApril-March2015comparedtosameperiodofpreviousyear.Highestdeclinewasregistered by raw wool (-80%) followedby raw cotton (-47.8%) and man-madefibre(-7.7%).Shareoftextilefibresexportsintotaltextileandclothingexports of India to world had also gonedown significantly in April-March 2015.Textilefibresexportsaccountedfor11.05% share in India's T&C exports inApril-March2014toworldwhichwasdeclined to 6.41% in April-March 2015.B. Exports of Textile Products,i.e.ofYarns,fabricsandmade-ups:Exportsoftexti l eproductscontributedaround40.13%shareinT&C exports of country to world in April-March 2015 which was 40.41% duringthesameperiodofpreviousyearregisteringamarginaldecline.TextileproductsexportsreachedtoUSD15454.16 in April-March 2015 which wasUSD 15544.29 mn. in April-March 2014slightlylowerthanthepreviousyear.Commodities falling under this categoryof exports had registered mixed growthtrendasproductslikecottonyarn(-13.5%), other textile yarn, fabrics andmade-ups (-5.4%) and silk yarn, fabricandmade-ups(-12.5%)registerednegativegrowthduringApril-March2015comparedtopreviousyearandcommodities like woollen yarn, fabricsandmade-ups(58.9%)followedbycotton fabrics and made ups (7.8%) andmanmadeyarnfabricsandmadeups(1.8%) have registered positive growthinApril-March2015comparedtoprevious year.C.ExportsofReadymadeGarmentsRMGexportscontributedaround38.97%shareinIndia'sT&Cexports during April-March 2014 whichwas increased to 43.71% for the periodofApril-March2015.India'sRMGexportsweretothetuneofUSD14989.91 mn. in April-March 2014 whichreached to the level of USD 16832.48mn. in April-March 2015 with a growthof 12.3% for the same period. Amongstall kind of garment exports from Indiaothertextilegarments(34.2%)haveregistered highest growth followed bysilk garments (28.8%), man-made fibregarments(26.9%),MMFgarments(8.1%)andcottongarments(1.9%).Despitehavingstrongrawmaterialpresence and availability of high qualitycotton India's export growth of cottonbasegarmentshassloweddowndrasticallycomparedtoothertypeofgarments, though India has performedvery well in other textile garments whichare basically blend fabric garments.D. Exports of Coir, handicraftsand Carpets: This subsector of India'sf oc usAtulK.Mishra,Economist,ConfederationofIndianTextileIndustryTEXTILE TIMESMARCH-APRIL2015 12PIS particiaption Advt.13 MARCH-APRIL2015TEXTILE TIMESECGCAdvt.TEXTILE TIMESMARCH-APRIL2015 14T&C exports sector contributed around7.85%shareinIndia'sT&Cexportsbasket to world during April-March 2015whichwas7.56%inpreviousyear.Exports of coir, handicraft and carpetswere to the tune of USD 3021.90 mn.during April-March 2015 which was USD2907.60 mn. last year. Exports of thiscategory of item have gone up by 3.9%inApril-March2015overthesameperiod of previous year.E.ExportsofJuteandJuteProducts:Exportsofjuteandjuteproductstogethercontributedaround0.95%inoverallexportsoftextilesector.Therehadbeendeclineintheexportsofallsub-sectorsofthiscategory except for jute yarn, and floorcovering of jute. Exports of this categoryhavedeclinedby-8.9%duringApril-March2015overthesameperiodofpreviousyearandreachedtoUSD364.79 mn. in April-March 2015.F.ExportsofHandloomProducts:Exportsofhandl oomproducts contribute around 0.96% sharein exports of textile sector. Exports ofthis category of items have decreasedfromUSD373.01mn.inApril-March2014 to USD 370.22 mn. in April-March2015. A decline of 0.97% was registeredby this sub-sector of textile during April-March2015overthesameperiodofpreviousyear.Thisisthemostlaborintensive sector and its most activitiesare underpinning to rural economy ofIndia. Under the current FTP (2015-20)therehavebeenimmensesupportprovided to bring in turnaround in thissectorthroughhighdutycreditscripunderMerchandiseExportIncentiveScheme(MEIS)andcoveragetoallmarketsofworldcomparedtoothersub-sectors of textile export.Imports PerformanceTextile imports, consisting of textilefibres, yarns, made-ups, garments, juteandjuteproducts,coir,handicrafts,carpets and handloom products, wereUSD6030.8mn.duringApril-March2015whichwasUSD5253.71mn.duringthesameperiodofpreviousyear. Import of T&C in India from worldhave gone up by 14.79% including alltextile items in April-March 2015 whencomparedtothesameperiodofprevious year in USD terms .A.ImportsofTextileFibres:India's textile fibres imports have goneup by 18.81% during April-March 2015comparedtosameperiodofpreviousyearandstoodaroundUSD1427.26mn.Textilefibresimportsconstitutedaround 23.67% share in the all textilecommodityofimportsofIndiaduringApril-March 2015, which was 22.86% inthepreviousyear.Amongstallsub-sectors of textile fibres imports all hadgoneupduringtheApril-March2015over the same period of previous yearexcept raw silk (-11.11%) and highestimport growth was registered by Rawcotton (28.95%) followed by Man-madestaplefibres(23.91%),Rawwool(7.20%) and Raw silk inclusive of waste(5.47%).B. Imports of Textile Productsi.e.ofYarns,fabricsandmade-ups:India'stextileproductsimportshave gone up by 11.86% during April-March 2015 compared to same periodofpreviousyearandreachedtothelevelofUSD3245.19mn.Textileproductscontributedaround53.81%share in India's T&C imports from worldduringApril-March2015whichwas55.22% in last year. There have beenpositivegrowthinalltextileproductsimports in April-March 2015 except forproductslikecottonyarn(-23.86%),cotton fabrics, made ups etc. (-0.65%)and natural silk yarn, fabrics and made-ups (-21.24%). Amongst the productswhichhaveregisteredpositiveimportgrowth,highestimportgrowthwasregistered by other textile yarn, fabricsandmadeupsarticles(20.70%)followedbywoollenyarn,fabricsandmade-ups(15.54%)andman-madeyarn, fabrics and made-ups (13.63%).C.ImportsofReadymadeGarments: India's import of RMG hasalso gone up by 20.77% during April-March 2015 compared to same periodofpreviousyearandreachedtoUSD523.8 mn. Imports of RMG contributedaround8.69%shareinIndia'stextileimportfromworldduringApril-March2015 which was around 8.26% last year.Import of all commodities of RMG hasalso registered positive import growthduringthesameperiodhowever,highestimportgrowthwasregisteredby RMG of man-made fibres (38.62%)followed by RMG of other textile material(31.89%), RMG of silk (18.38%), RMGofcottoninclusiveofallaccessories(8.68%) and RMG of wool (5.73%).D. Imports of Coir, handicraftsand Carpets: Import of coir, handicraftand carpets together stood around USD640.22 mn. in April-March 2015 whichwas USD 543.11 mn. last year. In April-March 2015 import of this category oftextile had gone up by 17.88% over thesameperiodofpreviousyear.Thiscategoryoftextileitemsconstitutedaround10.62%shareintotalT&Cimport of India from world during April-March2015whichwas10.34%lastyear.E.ImportsofJuteandJuteProducts: Jute and jute import has alsogone up during April-March 2015 andreachedtoUSD184.17mn.withanincreaseof18.26%comparedtoprevious year. Jute products constitutedaround3.05%shareinIndia'sT&Cimports from world which is marginallyhigher than the previous year.F.ImportsofhandloomProducts: Amongst the principle textileimportcategoriesofIndiahandloomimportcategoryregisterednegativedecline both in value and share termsinIndia'stotaltextileimportsfromworld.IndiaimportedworthofUSD10.16mn.handloomproductsfromworldinApril-March2015whichwas46.04% lower than the previous year.Import of handloom products accountedfor 0.17% share in India's T&C importfrom world.f oc us15 MARCH-APRIL2015TEXTILE TIMESSource: Ministry of Commerce, GOI, Trade Data Analysis, May 2015USDMillion Rs.CroreS. Commodity %shareint&cNo. Exports exportsofcountry ExportsApr- April- % April- April- April- April- %March March growth March March March March gro-2014 2015(P) 2014 2015(P) 2014 2015(p) wth1 Manmadestaplefibre 597.79 551.6 -7.7 1.55 1.43 3,622.66 3,374.77 -6.82 Cottonrawincld.Waste 3,637.53 1,900.19 -47.8 9.46 4.93 22,337.84 11,642.64 -47.93 Silk,raw 0.04 0.11 175.0 0.00 0.00 0.27 0.69 155.64 Silkwaste 16.25 17.86 9.9 0.04 0.05 99.3 109.12 9.94 Wool,raw 0.2 0.04 -80.0 0.00 0.00 1.19 0.24 -79.8Exportsoffibres 4251.81 2469.8 -41.9 11.05 6.41 26061.26 15127.46 -42.05 Cottonyarn 4,550.26 3,937.57 -13.5 11.83 10.22 27,617.48 24,104.13 -12.76 Cottonfabrics,madeupsetc. 5,118.47 5,515.39 7.8 13.31 14.32 31,045.83 33,722.62 8.67 Othertxtlyrn,fbricmdupartcl 422.09 399.46 -5.4 1.10 1.04 2,562.80 2,443.16 -4.78 Natrlsilkyarn,fabrics,madeup 142.93 125.02 -12.5 0.37 0.32 865.53 763.24 -11.89 Manmadeyarn,fabrics,madeups 5,183.47 5,274.79 1.8 13.48 13.70 31,395.09 32,253.09 2.710 Wollenyarn,fabrics,madeupsetc 127.07 201.93 58.9 0.33 0.52 768.53 1,234.61 60.6Exportsoftextiles 15,544.29 15,454.16 -0.6 40.41 40.13 94,255.26 94,520.85 0.311 RMGCottoninclAccessories 9,106.39 9,281.28 1.9 23.67 24.10 55,092.95 56,753.38 3.012 RMGSilk 236.54 304.77 28.8 0.61 0.79 1,434.04 1,862.36 29.913 RMGManmadeFibres 3,148.83 3,994.43 26.9 8.19 10.37 19,045.91 24,431.49 28.314 RMGwool 307.47 311.53 1.3 0.80 0.81 1,871.11 1,901.76 1.615 RMGofotherTextleMaterial 2,190.68 2,940.47 34.2 5.69 7.63 13,273.49 17,988.95 35.5Exportsofgarments 14,989.91 16,832.48 12.3 38.97 43.71 90,717.50 1,02,937.94 13.516 Coir,HandicraftsandCarpets 2,907.60 3,021.90 3.9 7.56 7.85 17,653.73 18,474.67 4.717 JuteandJuteProducts 400.39 364.79 -8.9 1.04 0.95 2,428.44 2,228.76 -8.218 HandloomProducts 373.01 370.22 -0.7 0.97 0.96 2,250.22 2,263.85 0.6Total Textiles 38,467.01 38,513.35 0.1 100.00 100.00 2,33,366.41 2,35,553.53 0.9India's Textile and Clothing Exports, April-March 2015f oc usTEXTILE TIMESMARCH-APRIL2015 16Premium Textile ComponentAdvt.17 MARCH-APRIL2015TEXTILE TIMESSource: Ministry of Commerce, GOI, Trade Data Analysis, May 2015USDMillion Rs.CroreS. Commodity %shareint&cNo. Imports Importofcountry ImportsApr- Apr- % Apr- Apr- Apr- Apr- %march march growth March March March March gro-2014 2015(P) 2014 2015(P) 2014 2015(p) wth1 ManmadeStapleFibre 328.29 406.78 23.91 6.25 6.75 1,985.02 2,484.01 25.142 CottonRawIncld.Waste 394.47 508.66 28.95 7.51 8.43 2,375.78 3,101.08 30.533 Silk,Raw 148.51 158.93 7.02 2.83 2.64 896.44 970.82 8.304 SilkWaste 4.77 4.24 -11.11 0.09 0.07 28.96 25.91 -10.534 Wool,Raw 325.22 348.65 7.20 6.19 5.78 1,961.72 2,125.74 8.36ImportOfFibres 1201.26 1427.26 18.81 22.86 23.67 7247.92 8707.56 20.145 CottonYarn 54.28 41.33 -23.86 1.03 0.69 327.83 252.51 -22.986 CottonFabrics,MadeupsEtc. 509.42 506.1 -0.65 9.70 8.39 3,085.43 3,094.69 0.307 OthTxtlYrn,FbricMdupArtcl 614.17 741.32 20.70 11.69 12.29 3,722.69 4,533.07 21.778 NatrlSilkYarn,Fabrics,Madeup 65.67 51.72 -21.24 1.25 0.86 397.06 315.47 -20.559 ManmadeYarn,Fabrics,Madeups 1,659.69 1,885.84 13.63 31.59 31.27 10,029.19 11,523.92 14.9010 WollenYarn,Fabrics,Madeupsetc 52.11 60.21 15.54 0.99 1.00 315.51 367.35 16.43Imports of Textiles 2901.06 3245.19 11.86 55.22 53.81 17549.88 19834.5 13.0211 RMGCottonInclAccessories 217.52 236.4 8.68 4.14 3.92 1,321.77 1,446.75 9.4612 RMGSilk 5.17 6.12 18.38 0.10 0.10 31.11 37.48 20.4813 RMGManmadeFibres 102.81 142.52 38.62 1.96 2.36 630.27 872.16 38.3814 RMGWool 15.19 16.06 5.73 0.29 0.27 92.83 98.19 5.7715 RMGofOtherTextleMaterial 93.03 122.7 31.89 1.77 2.03 567.44 751.64 32.46ImportsofGarments 433.72 523.8 20.77 8.26 8.69 2643.42 3206.22 21.2916 Coirs,HandicraftsAndCarpets 543.11 640.22 17.88 10.34 10.62 3289.16 3922.21 19.2517 JuteAndJuteProducts 155.73 184.17 18.26 2.96 3.05 926.72 1123.37 21.2218 HandloomProducts 18.83 10.16 -46.04 0.36 0.17 114.13 62.09 -45.60Total Textile Imports 5253.71 6030.8 14.79 100.00 100.00 31771.23 36855.95 16.00Total 450199.78 447521.79 -0.59 1.2 1.3 2715433.90 2733935.40 0.68India's Textile and Clothing Imports, April-March 2015f oc usTEXTILE TIMESMARCH-APRIL2015 18QuickEstimatesofIIPforTextileandClothingSector(T&C)TheQuickEstimatesofIndexofIndustrialProduction(IIP)forthemonthofMarch2015havebeenreleased by the Central Statistics Office(CSO) of the Ministry of Statistics andProgramImplementation(MOSPI)on12th May 2015.In terms of industries, thirteen (13)outofthetwentytwo(22)industrygroups (as per 2- digit NIC-2004) in themanufacturing sector have shown positivegrowth during the month of March 2015ascomparedtothecorrespondingmonth of the previous yearAmongstthemanufacturingtwoindustry groups of T&C i.e. textile andwearingapparelarepartofIIPdata;bothhaveregisteredincreaseintheindex at lower growth rates in FY 2014-15 compared to previous FY.In March2015T&CsectorIIPhasregisteredpositive growth and growth rates wererelatively higher than the previous year.FollowingthepreviousyeartrendIIPgrowth of wearing apparel was higherthan the textiles both for FY 2014-14as well as for March 2015. In the monthof March 2015 IIP of Wearing apparelswere up by 9%, IIP of textiles were upby 6.8% and combined IIP of T&C wasupby7.6%.CumulativechangeforApril-March2014-15forwearingapparel,textilesandT&Cwas5.4%,2.7% and 2.3% respectively over theApril-March 2013-14. Some observation from data:Wearing ApparelApparelsectorsproductionhadseenveryunpredi ctabl etrendthroughout the FY 2014-15 as indicatedbelow in the table 2 where month wisechangesoverthepreviousyearareindicated. IIP of wearing apparel in theFY 2014-15 started with negative growthbutinthesecondmonthoffiscalitpicked up then it slide again and keptdeclining until August 2015. Productionof wearing apparel rebounded back onlyin Sept. 2015 and then IIP of wearingTable 1: T&Cin Index of Industrial Production (IIP):Growth rates (%, Y-o-Y)Sector Fiscal Year Monthly2013-14 2014-15 Mar-14 Mar-15Textiles 4.4 2.7 2.8 6.8Wearing Apparel 19.5 5.4 6.4 9T&CSector 9.1 2.3 4.1 7.6Source: Estimates from CSO dataapparel kept moving up and reached to record high of 62% in Feb. 2015. In March2015 IIP moved up by 9% continuing the path of positive trend of last fiscal.inthe FY 2014-15 out of 12 months 8 months wearing apparel registered positivegrowth trends. In the FY 2014-15 IIP of wearing apparel was 5.4% higher thanthe previous year though this growth was lower than the last fiscal.TextilesCSO data captures the production data of yarn, fabrics, made-ups and othertextiles excluding apparel, to make textiles production index. The change in indicesof March 2015 over same period of previous year had shown a positive growth of6.8 per cent. Month wise textiles production changes were positive for ten monthsof twelve months of FY 2014-15. Textiles registered a positive growth of 2.3 percent during April-March 2014-15 over the same period of last fiscal. In The lastquarter of the FY 2014-14 textile's production have gone up compare to the samequarter of last year; however, the pace of production of textiles has gone downwhen we compare the growth in last quarter of year 2014 (Jan-March 2014).Overall T&C IndustryConsidering the one-third weight of apparel and two thirds weight of textilesproducts excluding apparel for estimating the overall production index for T&C asper CSO norm, this industry has grown by a rate of 2.3 per cent in productionsduring FY 2014-15 over last FY. In the month of March 2015 T&C combined indexhavemovedupby7.6%overthesamemonthoflastyear.Duringtheentireperiod of FY 2014-15 there were eight months out of 12 months when combinedIIP for T&C was positive.Table 2: Monthly Trend in T&C Production GrowthTextiles Wearing T&C Textiles Wearing T&CApparel Sector Apparel SectorApr'2013 5.2 86.8 29.9 Apr'2014 6 -22.4 -6.3May'2013 2.1 16.4 6.4 May'2014 7.2 9.9 8.1Jun'2013 3.4 33.2 11.6 Jun'2014 2.1 -5.9 -0.6Jul'2013 1 46.6 12.9 Jul'2014 2.9 -7.4 -0.6Aug'2013 6.3 25.8 11.7 Aug'2014 -1.7 -9.4 -4.2Sep'2013 2.8 27.7 10.5 Sep'2014 1.7 2.4 2Oct'2013 3.7 4.5 4 Oct'2014 -3.5 9.6 0.3Nov'2013 7.3 14.7 9.4 Nov'2014 4.5 28 11.4Dec'2013 5.1 19.7 9.9 Dec'2014 0.5 17.1 6.4Jan'2014 6 14.2 9 Jan'2015 2 1.3 1.8Feb'2014 7.2 -30.7 -7.2 Feb'2015 5.1 62 21.3Mar'2014 2.8 6.4 4.1 March'2015 6.8 9.0 7.6Apr-Mar14 4.4 19.5 9.1 Apr-Mar14 2.7 5.4 2.3Source: Estimates from CSO data, May, 2015f oc us19 MARCH-APRIL2015TEXTILE TIMESNational NEWS ...news in briefCITI brings out the 4thedition of"The IndianTextiles Directory"Price: Cost of hard copy Rs.1500/- (US$100) inclusive of postal charges. Cost of Directory on CD Rs.1500/-(US$100)inclusiveofpostalcharges. Bundled cost- hard copy and CD:Rs.2000/-(US$110)inclusiveofpostal chargesFor copies of the Directory, pleasesend a Cheque/Demand Draft in favourof'ConfederationofIndianTextileIndustry',payableatNewDelhi,indicating preference for a printed hardcopy or CD or both.Further details can be had from Mr.S. Raswant, CITI, Mobile: 9811016731,Email:sraswant@citiindia.com,Web.:www.citiindia.com.The 4th edition of CITI's "The IndianTextilesDirectory"hasjustbeenreleased.TheDi rectoryi stheonl ycomprehensiveandreliabledatabaseon Indian suppliers of the textile valuechain and the textile machinery industry.The edition covers profiles of morethan 5200 units in Spinning, Weaving,Processing, Home Textiles, Garmentingaswel l asGarmentandTexti l eMachinery. Details of entries it containsare:Segment UnitsSpinning 688Weaving 730Composite 60Made-ups 729Garments 2007Textile Machinery 816Garment Machinery 140Textile & Apparel Park 44Total 5214COIMBATORE:Theentrepreneursof the Tamil Nadu textile industries haverequestedMinisterofState,RoadTransport,HighwaysandShipping,tohelpsolvetheburningissuesinthetextile sector here, on Sunday.ThemembersalsopresentedamemorandumtoMi ni sterPonRadhakrishnanandMuralidharRao,NationalGeneralSecretaryoftheBharathiyaJanathaParty(BJP),atameeting held in the city on Sunday.The members demanded the UnionGovernmenttoproviderelaxationofcabotagelaws,accesstoman-madefibres at international prices, and alsoinstall mega solar power projects at thespinning mills.Minister Urged to SolveTextile Industry Woes(Source:TheIndianExpress,May25,2015)Regardingman-madefibre,theydemandedthattheUnionrationalisesthedutystructureofpolyesterandviscosefibretoenableIndiantextileindustryaccessman-madefibreatinternational prices, so that the industrycould tap the vast opportunities in theglobal MMF apparel market.Hank Yarn ObligationThepresentregulationsmandatethat 40 percent of the total output oftextile spinning industry has to be hankyarn. This rule was imposed with a goodintentionofprovidingmanufacturingrawmaterialsforhandloomweavers.But due to the Technology UpgradationFund scheme (TUF) and other initiativesby the government, they have movedtoeitherpowerloomsorautolooms,and there is hardly any demand for hankyarn.Persisting with this old rule will onlyleadtohugecorruption.Thisschemehastobedispensed.Thepercentageofobligationmaybereducedtoarealistic figure around 10 percent.Cabotage LawsThespinningindustriescansave`250 per bale which cumulatively willwork out to an overall saving of `175crore per annum for the entire industry,ifcabotagelawsarerelaxed,andforei gnvessel sarepermi ttedtooperate cargo inside India.TheTamilNaduspinningindustryis the largest consumer of cotton in thecountry, and annually around 7 millionbales of cotton is being transported fromGujarat to Tamil Nadu mainly over roadand through domestic vessels.Solar PowerThe State-owned National ThermalPower Corporation (NTPC) could tie upTEXTILE TIMESMARCH-APRIL2015 20nat i onal newsgoesful l -ci rcl eandreturnstotheearth.Formoreinformation,visitwww.cottonusa.in.About Cotton Council InternationalCottonCouncilInternationalinconjunctionwiththeNationalCottonCouncil works to promote U.S. cottonexports through COTTON USA in morethan 50 countries globally. With officesin Washington, Memphis, London, HongKong,Seoul andShanghai ,anddedicated representatives in numerousother countries, CCI plays the lead roleineducatingandstrengtheningthemarket for U.S. cotton and U.S. cottonproducts around the world. Since 1989,over 50,000 product lines and 3 billionproducts have proudly carried the nameCOTTONUSA.Thattranslatesintoabout 100 million bales of cotton.Neha Dhingra: +91-9811211335Niyati Sharma: +91-9810804260Cotton CouncilInternational LaunchesCotton USA In IndiaNEW DELHI (May 14, 2015) - CottonCouncil International (CCI) is all set tolaunch its 25-year old flagship brand,COTTONUSAinIndia.COTTONUSApromotesU.S.cottonfi berandmanufactured cotton products in morethan 50 countries globally.TheCOTTONUSAtrademarkpromises to deliver: purity, quality, andresponsibility. In a competitive market,peopleneedareasontochooseoneproduct over others. COTTONUSAstrivesforabsolutepurity, with no contamination. Fortheconsumerthatmeansthataproduct with the tag COTTON USAisclean,non-irritating,andsafe.For the manufacturer, it saves timeandmoney,andhelpscreateasuperior product. COTTONUSAassuresquality.Cotton straight off the plant is notalways as pretty as it looks in thepictures. It's not "ready-to-wear."The quality of COTTON USA is parexcellenceasitisfinishedwithinventivetechniquestokeepitsnatural qualities intact. COTTONUSAiscommittedtoresponsibilityandever-greatersustainability.COTTONUSAisrenewable,recyclableandbiodegradable, so it can be returnedto the earth from which it came.TheIndiantextileindustryisprimarilycottonfocused,withcottonaccounting for nearly 54% of total fibreconsumptionin2014.However,theindustryhasinherentchallengeslikecottonpricefluctuation,inconsistentquality of indigenous cotton and over-dependence on monsoons. In order tomeetthedemand,therei sarequirement of high quality cotton in thecountry."TheIndiantextileandapparelmarket is now more than US$100 billionandgrowingatahealthyrate,andithas potential to double its export sharefrom present 5% to 10% in next 10 year.We see a huge potential in this marketand hence bring the best quality cottontotheIndianconsumers."saidDavidB. Collins, Cotton Council InternationalSeniorAdvisor"Consumersarewellawareandconscious about what they are wearingandarelookingbeyondjusttheendproduct;theywantsuperiorqualityfabric assurance. U.S. cotton is seen bymany as the best in the world, so whenthispremiercottoniscombinedwithprestigiousproductdevelopers,theresult is truly top-of-the line, the bestof the best," said Renu Aggarwal, IndiaRepresentativeforCottonCouncilInternational.She further added, "Premiumisationis a well established term in India andishappeningacrosscategories.Thetextile industry is also catching up byusing premium quality - raw material,fabrics&innovationtomakequalityproducts in the country."The brand logo design embodies theidea that cotton is on a global journey.It's the story of a single fiber, born inthe USA, from seed, sun, and soil-not arefinery-that travels around the world,touched at each step by those who care,both in crafting and wearing. In the end,thisfiberthatwasbornintheearth,with the spinning units and install roottopsolarplantsandenterintopowerpurchaseagreementswi ththerespective mills as long-term contracts.If implemented, the mill will benefit withcontinuous power supply during the day,while NTPC will have assured buyers ofenergy on a long-term basis."Thereisanopportunitytoanextent of 1,000 MW for installing rooftop plants in spinning industries, whichwill be helpful for both, the stakeholdersand the government," the associationmembers pointed out. Thesouthwestmonsoonseasonrains(JunetoSeptember),whichaccount for over 70 per cent of India'sannualrainfall,areprojectedtobebelow normal for a second straight year.The Indian Meteorological Department(IMD) believes the current weak El NinoconditionsprevailingoverthePacificOcean are likely to continue during theFall in demand, not lessrainfall, bigger worryfor cotton growers(Source:mydigitalfc.com,May24,2015)Lesser imports by China may cutshipments from India by 41%this year21 MARCH-APRIL2015TEXTILE TIMESBishnu Export advt.TEXTILE TIMESMARCH-APRIL2015 22southwestmonsoonseason,therebyleading to a sub-normal rainfall in thecountry.However, unlike other agriculturalcrops, less rainfall is not really bad newsfor cotton. A below-average monsoonmaynothurtitsoutput,ascottonismore resilient than most rain-dependentcrops. In fact, experts point out that apoor monsoon normally tends to benefitcotton, as it is a desert crop.What is, however, worrying is thatChina, the world's biggest cotton buyer,has been cutting down its cotton importconsiderably. According to governmentestimates,lessercottonimportsbyChinamayeventuallyleadtoashighas 41 per cent drop in shipments fromIndia this year. As a result, Indian cottonexport is expected to fall to a six-yearlow.Estimatesofthecottonadvisoryboardshowthatcottonexportwillprobably drop to seven million bales inthe12monthsendingSeptember30from11.79millionbalesinthesamecorresponding period a year earlier, thel owestsi nce2008-2009.CottonshipmentsfromIndiahavebeenrecordedataroundfivemillionbalesthis season.The fall in demand from China mayalso cause a drop in cotton acreages,expertspointedout.Globallytoofarmersareexpectedtocutdowncotton planting by about seven per centthis year, leading to a nine per cent dropin total output to 23.9 million tonnes inthe 12 months starting August 1, thelatestinternationalcottonadvisorycommitteereportsaid.However,thegood news for India is that cotton priceshavestartedbouncingbackrecentlyand, therefore, there are hopes that thereductioninplantingareamaynotexceed 10 per cent.Farmers' groups feel that the cottonarea may not shrink during the 2015-16season,aslandconditioninghasbegun in many of the cotton producingstates.CottonfuturesontheMultinat i onal newsCommodity Exchange of India (MCXI)had earlier declined nearly 32 per centfrom a record high in 2013.Thedomestictextileindustryisprimarilycottonbased,withthecropaccounting for nearly 54 per cent of thetotalfibreconsumptionin2014.However,thei ndustryi sfaci ngchallengeslikepricefluctuationandinconsistentqualityofindigenouscotton.Thedemandcanbemetonlythroughproductionofhigh-qualitycotton inside the country. Further, thedomestic textile and apparel market isnow worth more than $100 billion andis still growing at a healthy rate. It hasapotentialtodoubletheshareofexports from the present five per centto 10 per cent in the next 10 years. Sothe need of the hour is to produce goodqualitycottonatgloballycompetitiveprice. KBShi vakumarstaresdespondently at his mounds of white silkcocoonsatthegovernment-runRamanagaram mar ket. The auctioneerhas sealed his fate: the produce will sellfor only Rs 165 per kg. "The same lot,twotothreeweeksago,wouldhavefetched me at least Rs 300 per kg," saysShivakumar,aschooldropoutfromavillage in Maddur, Ramanagaram, whopridedhimselfasasuccessfulsilkfarmer. Till a month ago, at least. TodayShivakumar,whohasbeeninthebusinesssince1972,isworriedanduncertain."Thispricefallisunprecedented.When I started out, cocoons fetched Rs15perkg.Imadehugeprofitsthen.Today,breedingcocoonsitselfcostsRs 200 per kg. If I sell at Rs 165 perkg, how will I pay my loans and survive?Thiswilldriveussericulturiststosuicide," he says.Silk city loses lustre(Source:TheTimesofIndia,May25,2015)Shivakumarisn'texaggerating.Sui ci deshavei nfactbeguni nRamanagaram,India'sSilkCitythathouses the largest silk cocoon marketinAsia.OnMay8thisyear,28-year-ol dGaneshandhi smotherLakshmammakilledthemselvesbyjumpingintoanearbylake.Theduohad invested Rs 15,000 in breeding thesilkworms and cocoons. But the producefetched them a mere Rs 6,000 in themarket. Similar stories emanate fromthe region. And for the past few weeks,angrysericulturistshavebeenlayingsiege to the Bengaluru-Mysuru highwayand halting traffic, hoping that the Uniongovernment will pay heed.AttherootoftheproblemistheCentre's slashing of the import duty onraw silk from 15 per cent to 10 per cent.Thishascausedanovernight30percent crash in prices of silk cocoon, thatis already seeing a glut.At the Ramanagaram market, thegovernmentofficialsareworriedtoo.The sericulture department is staring atahugeinfluxofsilkcocoonsintothemarket and further crash in prices. E TVenkatesh,deputydirectoratthemarket, says, "We are seeing a surgeofsilkcocoonsdailyandarerunningout of space," he says.Karnataka produces half of India'srawsilkandhasover10lakhpeopleassociated with the sericulture sector.The state government is understandablyconcerned,wi thchi efmi ni sterSiddaramaiahsendingletterstotheUniontextilesministryrequestingtoreverse the import duty cut and sendingdelegations to New Delhi.Heavy-dutypoliticsArun Jaitley says the move to cuti mportdutyi si ntunewi ththegovernment'sMakeinIndiapolicy.Whilethefinanceministermaybealluding to the weaver community andtextileindustry,especiallyinPMNarendraModi ' sconsti tuencyofVaranasi,silkfarmersinKarnatakaloudlywonderwhythepolicydoesn't23 MARCH-APRIL2015TEXTILE TIMESprotecttheirinterestsaswell.CPuttuswamy,secretaryfortheKarnatakaStateFarmersAssociation,saystheVaranasiweavers'lobbyhasmuch to do with the cutting of importduties on Chinese silk.In 2011 too, when the import dutywas cut by a whopping 25%, farmersinKarnatakahadblamedthenorthIndi anl obbyofsi l ktradersandweavers.EnterthedragonChinesesilkyarnispreferredbypowerloomsastheyarnissmootherand easier to handle than thicker andfragileIndiansilk.Tilladecadeago,Chinesesilkhad40%oftheshareinthe market when much of the weavingwasonhandlooms.Theadventofpowerl oomshasreversedthedominance. According to Habibullah, thegeneral secretary of Karnataka ReelersAssociation,merchantsarereadytopayanextraRs900toRs1,000forbetterqualityChinesesilk.Withbulkbuyers like Tamil Nadu too switching topowerlooms,Karnatakaisstaringatlower demand. Silk farmers must moveto profitable crops(Source:TheTimesofIndia,May25,2015)Silk farming goes back more thanathousandyearsinIndia.Karnatakaaccountsforover60percentofmulberry-basedsilkwormcocoonproduction. The farmers who rear silkwormsandproducecocoonsareinasymbiotic relationship with the reelersand twisters who make the yarn fromcocoonsandsellittoweaversandprinterswhomakethesarislaterpassed on to wholesalers and reach theshops.Theindustryisakintotheintricatewarpandweftofthefamedsilk saris, with miillions employed fromfarm to shop floor.Farmersgenerallybearthebruntofmisfortunes-thevicissitudesofweather, declining crops and failure dueto disease, shortage of water due to lowwater tables in traditional silk cocoon-producing areas of Kolar, Siddlaghatta,Kunigal,Devanahalli,Ramanagaram,Chikkaballapur, Kanakapura, Bengaluruand Mysuru. Add to that lack of powerforirrigationandfinally,thedumpingof silk yarn from China.Theproblembeganmanyyearsago, when import restrictions on yarnalongwithothermaterials,begantoease with the reforms set in motion bythe PV Narasimha Rao government. Itbenefited other sectors but not farmers.The issue is complex and has no easysolutions.On the one hand, with India joiningGATTandincreasinglybecomingpartof the global trade, India wants exportbarriers to be dismantled to enable ittoexport.ThishasalreadyenabledIndiatobecomeabigexporterofengi neeri nggoods,software,ITservices,automobileparts,leathergoods and textiles - both cotton and silk,amongotherthings.Itisatwo-waystreet.Ontheotherhand,textileexporterslobbyforlowerdutiestoimportsilkyarntobeabletobecompetitive in their exports.Butthebiggestbane?ImportedyarnfromChinaismixedbyreelerswith the local Kunigal and Mysuru raceofsilkworm.Thecross-breedyarnproducesdomesti csi l kforKanjeevaram, Benares, Dharmavaramandotherfabrics.Thishashitlocalfarmershardreducingdemandfordomesticsilkcocoonsandcrashingprices. There is a case for imports. Ifimporttariffscomedown,thelocali ndustrywhi chhasal waysbeenprotected,wi l l becomeeffi ci entbenefiting consumers with quality goodsatcompetitiveprices,insteadofsuffering low quality shabby domesticgoods.TheAmbassadorcarscometomind. India finds itself in a cleft stick -itcan'targueforlowertariffsforitsexports while creating entry barriers fori mports.Whatarethepossi bl esolutions?One,silkfarmershavetoimprove their productivity and qualityto be able to compete with the Chinese.(Even after freight, handling, insuranceand various duties though reduced, theChineseyarnisstillcheaperandbetter).Butimprovementseemsunlikelyastheagriculturesectorisneglected and beset with lack of ruralinfrastructureespeciallypower,risinglabourandotherinputs.Two,thegovernment,mustdeviseprudentsubsidymechanismtobailoutsilkfarmers.Butagai ndel i verymechanisms are full of corruption andseepages.Thisispartofthelargerissue of India's agriculture.Even though agriculture's share inGDPissliding,thenumberofpeopleemployed in agriculture (now at around60%)hasnot,condemningalargepopulation to poverty. The silk farmers,inparticular,mustmovetootherprofitable crops and trades as they havein many developed countries over theyears. Education is the answer. Muktsar mechanizescotton sowing to beatlabour woes(Source:TheTimesofIndia,May25,2015)Muktsar: To overcome the growingshortageofhumanlabourforsowingandpickingcotton,aneffortisbeingmadeinMuktsardistricttogoforcomplete mechanization of the process.The district agriculture officials have tiedup with three multinational companies(MNCs) for sowing the fibre crop usingmachinesinMuktsar,whichispartofPunjab's cotton belt.To start with, the agriculture officialshaveselected10villagesofLambi,nat i onal newsTEXTILE TIMESMARCH-APRIL2015 24Inside FashionAdvt.25 MARCH-APRIL2015TEXTILE TIMESTextile MagazineAdvt.TEXTILE TIMESMARCH-APRIL2015 26GidderbahaandMaloutblocksofthedistrictwheresowingofcottonover1,000acresisbeingdoneusingapneumati cpl anter.Compani esMonsanto,JohnDeereandBayerareproviding the machines for sowing andlaterpickingcotton,besidesthetechnical knowhow for operating these.Agricultureofficialsclaimthatfarmerswouldgetmoreyieldfromcottonsownusingpneumaticplanterandwouldovercomethebigproblemoflabourasthemachineswouldalsopickthebolls(flowers)onmaturity.Earlier, only sowing of cotton was beingdoneusingmachines,butpneumaticplanter will allow mechanical picking ofthe crop for the first time.MuktsarchiefagricultureofficerBeantSinghsaid,"Cottonsownwithpneumatic planter doesn't get damageddespiterainslashingandfarmerswillget 20-30% more yield. The machinesare capable of picking cotton in one acrein about one and a half hours. Farmerswill have to pay only Rs 400 per acrewhereas they have to spend Rs 3,000per acre for manual picking."BeantSinghsaidthattoensurebetter results from the latest technique,agriculture officials and representativesof the companies would keep providingtechnical knowhow to farmers. "Heightof the cotton plants will not be allowedtogrowmorethanfourfeetandtoensureitfoursprayswillbedoneforwhich chemicals will be provided by thecompanies."Cotton grower Harmesh Singh said,"Ihavesowncottonoverfiveacresusing a pneumatic planter and hope tosave money that I used to spend earlieronmanuallabour."AnotherfarmerMohinder Singh has sown cotton overseven acres through the new technique.' Isi tforwel fareofMNCsorfarmers?'Concerned over the development,labourerorganizationPunjabKhetMazdoorUnionsecretaryLachhmanSingh Sewewala said, "It seems that thegovernmentismoreconcernedaboutthe MNCs than farmers. The agriculturedepartment seems to provide a windfallfor the big companies to get a footholdand making farmers dependent on theseand work as their designs." nat i onal newsIndia has proposed to Bangladeshthat the South Asian neighbours jointlybuildaregionalexport-drivensupplychain,whichwouldallowthemtocompete better with China's Pearl ValleyDelta that remains the world's leadingmanufacturing hub for exports.ModiTheplanincludesIndiasettingupitsfi rstspeci aleconomic zoneinBangladeshandwilllikelybeformalisedwhenPri meM i n i s t e rNarendra Moditravel stoDhaka early next month, senior officialshave said."IhavealreadyspokentotheexportprocessingzoneregulatorsinBangladesh, and we are looking forwardtothei deaoftheIndi anSEZ,"BangladeshstateforeignministerShahriar Alam said here yesterday.But building the proposed regionalsupplychainwillnotbeeasy,theofficialsconceded,becauseinkeysectors, including apparel, the nationscontinue to compete."Therewillbesomecompetition,thatisnaturalinbusiness,"foreignsecretarySubrahmanyamJaishankartold The Telegraph on the margins of aconventi ononIndi a-Bangl adeshrelations organised by the Bangladeshhigh commission and a think tank, theExport gauntlet to China- India moots joint supply chainby setting up SEZ in Bangla(Source:TheTelegraph,May25,2015)India Foundation, here. "But we believethere is far more scope for cooperationin trying to jointly build a supply chainbeneficial to both of us."Publicly,Modi's"MakeinIndia"slogan has focused on high-end, heavy-investmentprojects,includinginthedefence sector, nuclear technology andheavymachi nery.Buttherei srecognition within the government thatChi nadi dnotemergeasamanufacturing hub depending on high-quality, skill-intensive products, but bydeveloping an elaborate supply chain.Thissupplychain,combinedwithcheapl abourandfavourabl eregulations, made China's Pearl ValleyDelta in Guangdong the world's exportengine,supplyingeverythingfromgarments to electronics items to brandsas diverse as Walmart and Apple.Bangladesh Prime Minister, SheikhHasinaBangladesh,over the past fewyears,hastriedtobuilditsownexport -dri vensuppl ychai n.From 2006, whenitstoodbehindIndiaandsixthgloballyamongexportersofapparel,Bangladeshhasnowracedtosecondspot - behind only China. The garmentindustry employs more than four millionpeople in Bangladesh, and contributesthebulkofthecountry'sexportedmerchandise."It is something we feel good about,even though Bangladesh has overtakenus," national security adviser Ajit Dovalsaid yesterday.Inrecentyears,Bangladeshhasalso emerged as a key exporter of autocomponents, a sector where India hastraditionally held an edge.India is already unwittingly a partyto Bangladesh's supply chain - much oftherawmateriallikecottonusedtoproducegarmentsinBangladeshissourced from India, Alam said.27 MARCH-APRIL2015TEXTILE TIMESnat i onal newsNIFT Celebrates RedLetter Day(Source:TheNewIndianExpress,May25,2015)But a regional supply chain networkwouldallowIndiaandBangladeshtojointly bargain for better prices at a timewageratesinChinatoohaverisensharply, in a manner the European Unionhas partly achieved, Doval argued."Whyshouldwebesellingsocheaply?"Dovalsaid."Whycan'twejointly,asaregion,manufactureandexport together to seek better prices?" CHENNAI:AllofThiruvalluvarauditorium was buzzing with energy andexcitementovertheweekend.ItwastheRedLetterDayoftheNationalInstituteofFashionTechnologyonFriday, and 175 students passed out thisyear.FromOriental,Goth,Bohemianspirit,fringebags,Cinderellaglassshoes, femme fatale, this day witnessedsome marvelous and interesting designsshowcased by students."We could only showcase a few ofourstudents'collectionsasthetimedidn't permit beyond that," said a proudAnitha Mabel Manohar, director of theinstitute. Apart from the fashion show,thedirectoralsospokeabouttheirassociation with the Khadi and VillageIndustry Commission (KVIC) this year,where the students will be working withhandloom weavers across the State fortwoweeksandwillbelearningandteaching them embroidery, stitching andways to make handloom saleable."Itisimpossibletodoawaywithhandloom," she said. "Replacing it withpowerloomisnotgoingtobeofanyhelp. Everyone must learn and enhanceour traditional methods. We have beenasking more and more students to goonlyforhandloomandkhadi.Itisirreplaceable," stressed Anitha.Speaking of handloom, the studentsof fashion design also showcased theirhandwoven crafts. For instance, a fewof their designs were inspired from theculture of Jharkhand and Awadh. "It isa great platform to learn and moderniseyour ancient clothing without having itlose its charm. There is still a lot moreto learn and do," said Gaurav Kumar, astudentwhowontheawardfor'BestOutgoing Student' at NIFT Chennai.''We have also focussed on makinguseofrecycledclothes,likedenims,"said Anitha pointing out to the recycleddenimcollectionshowcasedbyastudent."Tilldatewehavesent974studentstotheapparelanddesignindustry. I hope the number increaseswith each passing year," she added. Apparel exportersdemand interest subsidy(Source:TecoyaTrend,May22,2015)Apparel exporters' body AEPC hasdemandedinterestsubsidyschemeamong other things to boost exports.ApparelExportPromotionCouncilofIndia (AEPC) Chairman Virender Uppalsaid exports grew by 9.24 per cent inApril this year but it was 13.4 per centin April 2014.He said free trade agreement withEuropean Union and Canada would helpinmitigating"thedutydisadvantagesuffered by India vis-a-vis our competitorslikeBangladesh,Cambodia,Vietnam,Pakistan etc. in the major markets".He also asked the government toannouncethe3percentinterestsubvention scheme with effective fromApril last year to "partially mitigate highcostoflending,whichishoveringaround 11-12 per cent as compared to4.6 per cent in competing countries".He also suggested for extension ofduty benefits to major markets like theUS,EU,Canada,Mexico,Australia,Switzerland and Russia.Fori mprovi ngeaseofdoi ngbusiness, the actual implementation of24x7 clearances of import and exportattheportsshouldbeensuredbycustomsauthorities,hesaidinastatement.In 2014-15, garment exports grewby 12.2 per cent to USD 16.83 billion. Silk exporters eyeMadhya Pradesh forraw material supplyWith China gradually pullingout of international market,exporters have to explorehome-made silk(Source:BusinessStandard,23May15)PrimeMinisterNarendraModi'srecent China trip doesn't seem to havegained much for India's silk exportersastheIndianSilkExportsPromotionCouncilislookingforlocaloptionstoprocure raw material. Exporters want totap the potential as China, India's maincompetitor in silk business, is graduallypulling out of the international market.Exporters want to establish their positioninthevacuumwhichislikelytobecreated after China's losing interest.Council chairman T V Maruthi todayledatwelve-memberdelegationofexporterstothesmallsilk-farmers'village ofMalakhedi (80 Km Southwestof Bhopal) to explore whether the solegovernment-run silk yarn making centrehere can cater to exporters' needs."AsChinahasswitchedovertoothersectorslikeinfrastructureetc.,after ruling the international silk marketforyears,Indiaislookingfornewoptions to procure raw material for silkexporters. There is a wide gap in IndiaTEXTILE TIMESMARCH-APRIL2015 28Wazir Advt.29 MARCH-APRIL2015TEXTILE TIMESinrawmaterialdemand-supply;40percent of the raw material demand ofIndiansilkmanufacturersismetbyChina," said Maruthi."TheCentrehasnoimmediatemechanism to develop capacity to caterto what the Indian Silk Export PromotionCounci l demands,"sai dRakeshShrivastava,generalmanagerofthecentre. For the first time, the Councilinitiated a dialogue with local farmersat the centre.Not only short supply of raw materialbutescalatingprice,risingdollarandrecentincreaseinimportdutyonsilkhave also put a pressure on exporters."TheGovernmenthasincreasedimport duty from 5% to 15% recentlyandaddedanotherdampenertotheexports. It looks simple in number, butit has gone up 300 times," he said. "Onthe other hand, prices of silk prices havegone up three times in three years."Hoshangabadrevenuedivisionproduces 64 metric tonnes of silk peryear against 243 metric tonne. A smallshowroom located at the Malakhedi silkreeling centre posts a sale of Rs onewcroreannuallyforits"Prakrit"brandfinished products made of silk fabric.But it cannot cater to huge demandofexporters."Wedonothavethevolumes.Alsotheexporterswantconsistency and design besides volume.It would be too tough for us though ourproduction and sale both are growing,"saidSatyanand,Commissionerstatesericulture department.Si l kproducti oni ncountry,according to the council, has gone upfrom 18,370 metric tonne in 2008-2009to 26,480 metric tonne in 2013-14, butis still not sufficient to cater to the $550million silk export industry of India.Otherexportersobservethatresearchanddevelopment,qualityprocessinghouseandbrandbuildingholdthekeyforIndianexporterstoestablishinGlobalmarketthoughitcontinues to be the second largest silkmaterial producer."We have aksed the government tocontributetosupportinresearchanddesign,processinghouseandbrandbuildingtohelpsilkindustryrise.Wehope our demands would met as soonas possible," Atul K Gupta past chairmanof the Council said.The Council delegation observed ifgovernmentsupportsindevelopingcommonfacilitycentersfordesign,research and development for makingsilkfabricinaccordancewiththeinternational market norms, state likeMadhya Pradesh can do wonders."NotonlyMadhyaPradeshentireIndia does not have a quality processinghouseorcommondesignfacility.Ifgovernmentofferssoftloanstothemanufacturers,privateplayerscancome forward set up silk reeling units,"said Bimal Manwandia who is one of theprominent silk exporter in the country.AnotherexporterRakeshShrivastavaofVaranasiwhomainlyexports silk to Russian countries said,"India has art of making silk but doesnot have organized market, which is whywearenotcompeti ngi ntheInternational market."Hoshangabadrevenuedivisions,with its highly fertile soil, has as manyas7000farmerswhoaredirectlyassociatedwiththesilkindustry.Ongovernment'spartitruns14reelingcenters at eight districts in the division.The state has 26,000 farmers who feed32silkreelingcentersatvariouslocations. Meghalya to set upcentre for promotion oftextile sector(Source:TheStatesman,May23,2015)MeghalayaChiefMinisterMukulSangma on Friday laid the foundationstone of an apparel and garment centreto be set up under the North East RegionTextiles Promotion Scheme.Thestategovernmenthasbeenworki ngi ntandemwi ththeGovernment of India to create multipleopportunitiesfortheyouthworkforcewithnumberofinterventionswhichi ncl udevari ousski l l andentrepreneurshi pdevel opmentprogrammes, the chief minister said."The focus of the state governmenthas been to create job spaces for theyouth within the State rather than theusual placement for jobs in other partsof the country," he said.Union Minister of State for TextilesSantoshKumarGangwar,whowaspresent on the occasion, said that therewasaneedtojointlyworktowardsgrowthanddevelopmentstatingthathandloomandhandicraftisessentialeverywhere in the world.ReferringtoNarendraModiwhoafter taking over charge as the PrimeMinisterofIndiahadexpressedhisconcern for the North East, he statedthe importance of working towards thegrowth and development of the regionandalsomentionedthatBangladeshwhich is close to the state is also faringwell in the textile industry in the world.Gangwar also said that with properavailability of land, the Government canwork towards initiating textile industryin the region, adding that is a fruitfuli ndustrythatcanprovi deeasyempl oymentforanyoneandanattractive form of employment for thepeople of Northeast.TheUnionMinisterofStatealsoinformed the gathering that the UnionGovt will be setting up silk industry inthe entire Northeast under Rs.30 crorebudget out of which the Union Govt willpayRs.29.9croreandalsoincreasehandloom clusters in collaboration withNIFTwith72clustersinMeghalayaalone. nat i onal newsTEXTILE TIMESMARCH-APRIL2015 30Global NEWS ...news in briefChinahaspromisedallpossibleforms of support to the Sheikh Hasinagovernmentasi ttri estoturnBangladeshintoamiddleincomenation.TheChineseVicePremierLioYandong met Sheikh Hasina on Sundayduring a visit to Dhaka."The Chinese leader was all praisesforSheikhHasina'sleadershipandBangladesh'seconomicperformanceunder her, specially the country's abilitytomaintainGDPgrowthat6percentplus,"saidtheprimeminister'sPressSecretary A K M Shameem Chowdhuri.HesaidtheChineseVicePremierexpressedthehopethatBangladeshwould become a middle income countryby 2021.China would provide all necessarysupport, Choudhuri quoted Lio Yandongas saying.HesaidtheChinesevicepremierproposedrelocationofChina'slabourintensive industries in Bangladesh whichcould benefit both countries.Lio also extended an invitation toSheikhHasinatovisitChinaattheearliest on behalf of Premier Li Keqiang.Bangladesh and China signed threeChinese support forBangladesh's growth(Source:bdnews24.com,May25,2015)MOUs, two cooperation agreement andoneexchangeofnotesinthefieldofeducation,mediaandtrade.Thesewere signed in presence of the Chinesevice premier and Prime Minister Hasinaat Ganabhaban to improve bilateral tiesbetween the two countries.TheMoUonCooperati oni nEducationbetweentheministriesofeducationofthetwocountrieswassignedbyEducationSecretaryofBangladesh Md Nazrul Islam Khan andChi neseEducati onMi ni sterYuanGuiren.TheMinistryofInformationofBangl adeshandtheStateAdministration of Press, Publication ofChina signed a MoU for cooperation inthe fields of radio, film and television.Information Secretary Martuza Ahmedand Vice Minister of China Tong Gangsigned the MoU.AnotherMoUbetweentheDhakaUniversity and Beijing Foreign StudiesUniversity was signed for cooperationin the areas of exchange of students,faculty,scholarsandadministrativestaff, research collaboration and sharingof academic materials and information.DhakaUniversityViceChancellorProfAAMSArefi nSi ddi queandPresident of BFSU Peng Long signed theMoU.Southeast University of BangladeshandWuhanTextileUniversity,ChinasignedanagreementforCooperationin joint undergraduate programme ontexti l eengi neeri ng.SoutheastUniversity Vice Chancellor Prof AnwarHossain and WTU Chancellor Wei Yiliangsigned the agreement.Theothercooperationagreementwas signed between BGMEA Universityof Fashion and Technology, Bangladeshand Wuhan Textile University, China forjointundergraduateprogrammeonfashiondesign.FounderchairmanofBGMEA University Muzaffar U Siddiqueand WTU Chancellor Wei Yiliang signedthe instrument.Thel oneexchangeofnotesbetweenBangladeshandChinaoncontainer inspection equipment projectwassignedbyERDSeniorSecretaryMohammad Mejbahuddin and ChineseAmbassadortoBangl adeshMaMingqiang. Iran unveils firstgenetically modifiedcotton(Source:PressTV,May24,2015)Iranhasunveiledthefirstsampleofgeneticallymodifiedcotton,whichhasbeenproducedthrough indigenous technology byIranianspecialists.The unveiling took place during theFirstInternationaland9thNationalBiotechnology Congress of Iran, whichwas attended by Minister of AgricultureMahmoud Hojjati.Accordi ngtoPersi anmedi a,Dr. Mostafa Ghane'i, who heads the FirstInternational Biotechnology Congress ofIran,saidthetechnologyfortheproduction of genetically modified cottonhasbeendevelopedbyanIranianbiotechnologyresearchinstituteinIranhasunvei l edthefi rstsampl eofgeneticallymodifiedcottonproducedthroughindigenoustechnology.(Filephoto)31 MARCH-APRIL2015TEXTILE TIMESAlborzProvince,westofthecapital city, Tehran."This technology has beendevelopedinaboutfiveyearsbyIranianresearchersandsuits the country's conditions,"he added.The official noted that thegeneticallymodifiedcottonisconsideredasasolutiontoexistingproblemswiththequalityofcottonproduceinSouth Khorasan Province.Headdedthatbytakingadvantageofthenewtechnology,thecottoncropharvestedacrossprovincialfarms has been increased 5-7times.Explainingonthelegalaspectsoftheissue,Ghane'isaidtakingadvantageofanynew technology in farms wouldneedpermi ssi onfromtheIranianparliament'sBiosafetyCommittee.Henotedthatthecommitteeiscomprisedofrepresentatives from Ministry ofHealth,MinistryofAgricultureJihad,andtheDepartmentofEnvironment.Duri ngthepasttwodecades, Iran has broken newgroundsi nthefi el dofbiotechnologyasaresultofwhich the country is currentlyanexporterofbi otechmedications.The First International and9thNationalBiotechnologyCongressofIranopenedinTehranonMay24andwillcontinue until May 26. The eventis hosted by the BiotechnologySociety of the Islamic Republicof Iran.Morethan20forei gnspecialistsfromJapan,thePhilippines,India,Pakistan,Kuwait and Mongolia are takingpart in the congress. WTO trade ministers tomeet next month in Paristo finalise agenda forNairobi meeting(Source:TheEconomicTimes,May25,2015)Acruci almeetingoftradeministersofkeyWTOmembercountries includingIndiaandtheUSwilltakeplaceinParisnextmonthtodiscussthependingissues of the Doha Round and finalise theagenda for the Nairobi ministerial meetingin December.It will be held on the sidelines of theOrganisationforEconomicCo-operationand Development meeting in Paris on June4or5,saidaseniorofficialattheCommerce Ministry.India has recently expressed concernover slow progress in finalising the agendafor the Nairobi ministerial meeting of WTOmembers to resolve the pending issues ofthe Doha Round.Trade ministers of about 15 countriesincluding India, the US, EU, Australia, Brazil,SouthAfricaandChinaareexpectedtoattend this crucial meeting. WTO DirectorGeneral RobertoAzevedowi l l al soparticipate in the deliberations.India will present its views on bringingback issues related to the long-stalled DohaRoundi ncl udi ngagri cul ture(exportsubsidies,cottonandfisherysubsidies),marketaccessandservices,theofficialsaid.The ministers will finalise the agendafor the Ministerial Conference, which is thehighest decision making body of the WorldTrade Organisation (WTO), scheduled fromDecember 15-18 in Nairobi, Kenya.TheDohaRoundofnegotiationslaunchedin2001haveremainedstalledsince July 2008 due to differences betweenthe rich and the developing nations mainlyover the subsidies given to farmers.As per estimates, successful conclusionof the Doha Round could boost global tradeby up to USD 200 billion a year.Besi desattendi ngtheWTOdeliberations,CommerceandIndustryMinisterNirmalaSitharamanwouldmeetEuropean Union Trade commissioner CeciliaMalmstrom on June 4.Boththeleaderswilldiscusstraderelated matters including the proposed freetrade agreement."EU is expected to talk about resumptionof the Broad- based Trade and InvestmentAgreement (BTIA). India may invite themfor the talks," the official added.In May 2013, India and the 28-nationbloc had failed to bridge differences overcritical differences including data securityand visa liberalisation related matters. Afterthat, no formal round of talks have beenheld.India and the EU are negotiating BTIAthatwillincludetradeingoods,servicesandi nvestmentssi nceJune2007.Commerce between the two sides was USD101.5 billion in 2013-14. Asia : Your clothes arekilling us(Source:CNNMay22,2015).We buy too many clothes, and we paytoo little for them.That's the message of "The True Cost,"anewdocumentaryontheperilsofthefashionindustry,whichisbeingreleasednext week.The film is a sweeping, heartbreakinganddamningsurveyoftheclothingTheTrueCost,anewdocumentary,chroniclestheevilsoftheclothingindustryandasksustostopbuyingsomuchcheapstuffgl obal newsTEXTILE TIMESMARCH-APRIL2015 32economy. It covers malformed childrenof pesticide sprayers in India's cottonbelt, gruesome shots of the deadly 2013RanaPl azafactorycol l apsei nBangladesh, Indian rivers frothing withchemicals, and mountains of discardedclothing in Haiti."Ibel i evethesecl othesareproduced by our blood," Shima Akhter,aBangladeshifactoryworker,saysinthe film. "I want the [factory owners]to be aware and look out for us, so thatnomoremotherslosetheirkidslikethat."The film interviews a factory ownerin Bangladesh, who says the constantpressuretoproducecheaplyispartlyresponsible for the unsafe conditions."Is it really ethical to buy a T-shirtfor $5, or a pair of jeans for $20?" asksLiviaFirth,creativedirectoratthesustainablebusinessesconsultancyEco-Age.The movie is filled with disturbingfacts. Here's a few: 250,000Indiancottonfarmershave killed themselves in the last15 years, partly as a result of goingi ntodebttobuygeneti cal l ymodified cotton seeds. Thereare80billionpiecesofclothing purchased worldwide eachyear, up 400% from two decadesago. Americans throw out 82 pounds oftextiles annually. Only10%oftheclothespeopledonate to thrift stores get sold --the rest end up in landfills or floodmarkets in developing countries."I came into this completely blind,"Director Andrew Morgan said at a pressscreening Friday. "I never thought twiceabout a piece of clothing I wore."Morgan said a photo of children --who were close in age to his own kids -- hunting for loved ones near the RanaPlazarubbleiswhatspurredhimtomake the film.Hesaidsystematicchangesareneeded in this and other industries, chiefamongthemcountingthecostsofpollution or unsafe working conditionsthat are not currently factored into theprice of goods.But for now, he urges consumerstooptoffthetreadmillofpurchasingmore and more cheap clothing -- what'sbeingreferredtoas"fastfashion"--and buy fewer, better-made items."Let's back off this endless, constantpurchasingandinvestinclotheswelove," he said.Texti l ewastei naDhaka,Bangl adeshl andf i l l .Some AGOA RenewalSupporters Call forAmendments(Source:VoiceofAmerica,May22,2015)The African Growth and OpportunityAct-atradeprovisionthatallowsthousandsofproductsfromAfricancountries to enter the U.S. tax-free - isdue to expire in September. While theU.S.Senatehasrecentlypassedlegislation to extend the Act for another10 years, it still has to go through theHouse of Representatives. Meanwhile,manysaytheprogramhasonl ybenefitedafewsub-SaharanAfricancountries and needs some revisions.WhenPresidentObamavisitedAfricatwoyearsago,peoplewerevisiblyexcited.ButlocalbusinessownerssuchasSadiyaGueyeofSenegalhopedtheU.S.leaderwouldaddressexportbarriers,which,shethinks,remaintoohighforsmallbusinesseslikeherclothingdesignworkshop that exports to the U.S."In the textile sector, AGOA bringswith it lots of restrictionsm," said Gueye."Since we signed the agreement, peoplearealwaysholdingmeetingsleftandright,butIbelievethatwehavenotbeen able to do anything real."According to Serigne Aliou Diop ofAsepex,theagencyinchargeofpromoti ngSenegal eseexports-includingfisheries,agriculturalandarti sanal products-AGOAhasbenefitted the country."Today after 13 to 14 years of beingeligible, I don't think Senegal has reallybenefited from AGOA," Diop told VOA."Some of it is due to the limited financialcapacities of our companies: the quasi-inexistence of cargo flights to the U.Sandthestrictrulesregardingourproducts."AccordingtotheU.SDepartmentofCommerce,thetopfiveAGOAbeneficiarycountriesareAngola,Nigeria, South Africa, Chad and Gabon.Amongotherleadingbeneficiaries:Lesotho, which has one of the largesttextile industries with about 40 plantsmainly run by Asian businessmen.Whiletheprogramisworkingforcountries like Lesotho, it's not the normfor all eligible countries."Initspeakyear,2008,[theprogram drove] $80 billion," in revenue,saidRickHelfenbein,chairmanoftheAmeri canApparel andFootwearAssociation."However,2014finished[with] $23 billion."Sixty seven percent was energy-related," he added. "Where is the other33 percent? Twenty of the 33 percent isSouth African ... 13 percent of the 33percent in non-energy coming from 35countries.Underutilized,completelyunderutilized."Last year, U.S. imports from sub-SaharanAfri cadecreasedby32percent,accordi ngtotheU.S.Department of Commerce. The reasonwasmostlyduetoa51percentdecreaseinU.S.oilimportsfromtheregion.ButSenatoreOrrinHatch(R-Utah), who heads the Senate Financegl obal news33 MARCH-APRIL2015TEXTILE TIMESCommittee, recently praised the tradeagreement."SinceAGOAwasenactedintheyear2000,tradewithbeneficiarycountrieshasmorethantripled,withU.S. direct investments growing morethan sixfold," he said. "The program hashelped create more than 2 million jobs."Hatch,whohel pedcraftthereauthorizationlanguageforthenewbill,saysthatinordertoimproveonAGOA's past successes, it is importanttoallowbothsub-SaharanAfricaandtheU.S.tobenefitfromexpandedmarket access. Kiian unveils Digistarrange of textile inks(Source:PrintWeek,May22,2015)KiianhaschosenFespaasthelaunchpadofitsnewrangeofdigital inks developed for use withRicohprintheads..Kiian'sMartinSwiftThe Digistar range of water-basedinksforthesoftsignageandtextileprinting industry follows the launch of arange of fluorescent inks - HD-One, HI-Pro and K-One - earlier this year, whichwere intended to capitalise on a trendfor fluorescent sportswear.The new range features the DigistarWR-500water-basedmulti-purposesublimation transfer ink and the DigistarAir, also for sublimation transfer. Air wasdeveloped for printing onto lightweightpapers. Kiian said it was quick drying,with high colour concentration.Digistar Tex-R is Kiian's new water-based pigment inks for direct printingonto a wide range of fabrics.The new inks are compatible withthe Ricoh Gen 5 printhead.Marketing director Martin Swift said:"Itwaswhatthemarketaskedfor.TheseprintheadsarebeingusedinRicoh machines and by other OEMs.""In many cases our customers areproducingforsportswearorfashionbrands.Thewholethingaboutdigitalprint is it lends itself to short runs. Inmanycasesifitsellsverywelltheywant to have another run. If the ink isnot of the same quality, consistency andreliability their products will not look thesame."Followingreportsthatthesoftsignageandtextileindustryhasseendouble-digitgrowth,Swiftsaidthemarketfordigitaltextileprintingwasgrowing but it paid to be cautious."Ihearlotsofnumbersbeingbandiedabout.Yes,themarketisgrowing. I think it's very important tounderstand who your customers are andwhat they need." Australia : Pigmentunveils direct-to-textiledevice(Source:PrintWeek,May22,2015)The firm has two models: the 1.9m-wide RoTx 2190, which prints at up to60sqm/hour, and the 2.6m-wide RoTxAustralianmanufacturerPigmentis making waves at Fespa with itsnewlow-costdirect-to-textileprintingsystem,beingshownforthe first time in Europe.Pigment'sRoTx:"loadsofinterest"2600 with a max print speed of 80sqm/hour.Priceis65,000and82,000respectively,includingfixation.Anoptional pre-treatment machine is alsoavailable.The closed-loop solution is designedandengineeredinAustralia,andmanufacturedinSingaporeusingJapanese parts. The printers use EpsonDX7pri ntheads,arrangedi nastaggeredarray,andworkwi thsublimation, pigment or reactive inks.Targetmarketsareanyfabric,includingsoftsignage,fashion,homefurnishing and sportswear.It has just installed two machinesat a Chinese customer.Stephen Ball, sales executive at thefirm's UK distributor ITE, said: "There'sbeen loads of interest, we're the talk ofthe show." Unraveling TPPs YarnForward Rule Effect onVietnam(Source:TheEstablishmentPost,May22,2015)The Trans-Pacific Partnership (TPP),aUnitedStatesledtradeagreementinvolving twelve countries, is currentlyundernegotiation.AkeypartoftheproposedformatoftheTPPisaruleknown as "yarn forward". In essence,"yarn forward" would require that onlyfabric produced from yarn made by aTPP country would qualify for the tradeagreement's duty-free status.The rule is intended to ensure thatthe trade benefits of the TPP only applyVi etnam' skeygar mentmanuf actur i ngsector could be seriously impacted by theyar nf or war dr ul eof theTr ans- Paci f i cPartnershi p( TPP)gl obal newsTEXTILE TIMESMARCH-APRIL2015 34tosignatorycountriesratherthanoutside players such as China. However,the rule also has significant effects onsignatory countries, such as Vietnam.Upon completion the TPP trade areawill comprise a region with US$28 trillionin economic output, making up around39 per cent of the world's total output.If the TPP is successfully implemented,tariffs will be removed on almost US$2trillion in goods and services exchangedbetween the signatory countries. Thus,Vietnamhasmuchtogainfromtheimplementation of the trade agreement,includingdrasticallyreducedtariffsinsome of the world's largest markets.Vietnam'sreactionYarnforwardcouldhaveseriouseffects for countries such as Vietnam.Thecountryiscurrentlyakeyglobalgarmentmanufacturinglocation,however,i tsfactori esoftenuseChinese-made fabrics in their products,and China is not a part of the TPP. Infact, around 85 per cent of Vietnamesetextileandgarmentcompanieshaveoutsourcingcontractswithforeignpartners.Whatallthismeansisthat,ifVietnamwantstobeeligibleforTPPbenefits such as lower tariffs in the USitwillhavetodevelopitsownlocalfabric industry or constrain itself to onlyimportingfabricfromanotherTPPcountry.Vietnamiscurrentlyworkingtohave the "yarn forward" rule removed,or its implementation delayed, from theTPP. A number of other countries havealso pledged their support to Vietnam.However,otheracti onsthatVietnam has taken show that it may beready to acquiesce to yarn forward, andthe country has so far expressed fairlyconsi stentsupportforthetradeagreement, since it will allow many ofitsotherproductsmarketaccesstosome of the world's biggest economies.Therefore, it seems that the rule will notbe a fatal roadblock to the TPP's finalization.The US Trade Representative (USTR) hasalso stated that the US will not pull backfrom its demand for yarn forward.In a sign that the country has feltwhich way the wind is blowing, a numberofVietnamesecompaniesarealreadystartingup,orexpanding,theirownfiber manufacturing operations in orderto not be left behind when the TPP isfinallyimplemented.KeycompaniesincludetheCenturySyntheticFiberCorporation (CSFC), Thanh Cong JointStock Co (TCM), and the Vietnam Textileand Garment Corporation (Vinatex).Additionally,inafurtherbidtoenhancethecompetitivenessofthecountry's fiber manufacturing industry,Vietnam's Ministry of Industry and Trade(VMIT) has proposed levying a 2 percent import tax on polyester staple fiber(PSF).CurrentlyPSFimportsarenotsubject to tax.The US Argument For Yarn ForwardWhile yarn forward may have somedeleterious impacts upon Vietnam, UStextile makers are keen for the rule tobe implemented. This is because theybelievethattherulewillhelptoconstrain China and Vietnam's entranceinto the US market. In turn, US textilemakersalsobelievethattherulewillmakeVietnammoreattractivetoAmerican textile industry investment.This is not the first time that a "yarnforward" principle has been pushed bytheUnitedStates.DuringtheNorthAmeri canFreeTradeAgreement(NAFTA) negotiations in 1993 the rulewasusedasawaytoprotectUSmarkets. It was also used in the CentralAmeri canFree