With textile facing saturation Option is diversification into MMFs

Much has been said and written about the dire need to make our textiles and clothing (T and C) sector globally competitive in the manmade fibre (MMF) segment. This is because our presence in the MMF-based garment segment is very limited, notwithstanding the enormous scope. Moreover, the usage of synthetic fibre is more than that of cotton which is the prevailing practice worldwide. The ratio is 60:40, whereas in India it is 43:57. The government recognises this stark reality, but has not initiated appropriate action in this regard. The 2017-18 budgets have provided no duty reliefs for MMFs. That...

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Export outlook for garments Sri Lanka, Vietnam pose competition

Even as the textiles and clothing T and C sector is struggling to come out of the effects of the Goods and Services Tax (GST) comes certain alarming developments that may seriously impact the sector. This is bound to change the outlook for T and C exports, particularly garments during the current fiscal (2017- 18). Already, the sector has been hit by Britain’s exit from the European Union (EU) a few months ago and slow global demand. Of immediate concern is the GSP plus benefit accorded to Sri Lanka by the EU facilitating duty – free entry of certain...

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GST on textiles, clothing job work MMF – Problem areas

The Central Government’s decision on GST in respect of the textiles and clothing sector (T and C) is on expected lines. By and large, the industry’s pleas for a lower rate of GST have been accepted. Not with standing this, two problem areas have been flagged off for the government’s consideration one is job work and second is GST on manmade fibres (MMF) and yarn. What is encouraging is the statement of Union Finance Minister Arun Jaitley that he is giving three months’ time to see the operation of GST, after which he would examine various demands raised by...

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Bring TMC back to double farmer’s income

Is the Central Government bringing back the technology mission on cotton (TMC) in a revised format to step up output, acreage and yield? There is a felt need as the earlier TMC had expired and a new one is called for so as to greatly benefit farmers and the textile industry, which squarely depends on home grown cotton. What is more, around 25 mn farmers and another 20 mn people in cotton trading, ginning and pressing rely on cotton cultivation. In addition, cotton is the engine of growth for the textile sector, which provides jobs to 105 mn people...

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2017-18 Budget proposals to benefit garments most

The textiles and clothing (T&C) Industry had not set much store in the Budget for 2017-18 with the Goods and Services Act (GST) about to be implemented from July 1 next. But it turned out that there are proposals in the Budget that seek to confer benefits on the garment sector making its operations economically viable. One of these is the reduction in the corporate taxes to 25 per cent for small companies with a turnover of Rs. 50 cr. This provision will cover a large number of garment units since the industry is mostly in the Small and...

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