Soon, aggressive textile policy for upliftment of cotton industry

SURAT: Chief minister Narendra Modiannounced that the state government is in the process of formulating an aggressive textile policy for the upliftment of the cotton textile industry and taking the ‘made in Gujarat’ brand to the foreign shores. 

Modi said the government is working on five ‘F’- farm, fibre, fabric, fashion and foreign. 

“We are the leading cotton producing state in the country. Now we want to transform the state’s cotton industry as a leader in yarn manufacturing, cloth manufacturing, readymade garment manufacturing and later we will reach out to the world market with our products,” he said. 

“Why there is a need to export our cotton? All the cotton produced will pass from different stages of manufacturing in the state itself and then we will capture the world market. We want the world buyers to flock to Gujarat in search of readymade garments,” he added. 

Interestingly, Modi himself had hit out at the UPA government for banning cotton exports recently. 

Modi’s announcement has not gone down well with the textile entrepreneurs, weavers and industrialists in the city. Reason: Surat is the country’s biggest man-made fibre industry and it is facing a tough competition from the cotton yarn and cotton garments in the domestic as well as international markets. 

“The aggressive policy for textile as announced by the CM is only for the cotton sector. Surat is a man-made fibre hub and there is nothing for us to welcome the announcement,” said a leading textile entrepreneur 

He added, “The formulation of the new textile policy for cotton by the state government would put the city’s man-made fibre hub at risk. Many industrialists, weavers and entrepreneurs may turn to cotton-based textile production instead of using polyester yarn.”


Panel to look at environmental impact of textile units in Raj

Jodhpur, Apr 7 (PTI) Worried over the impact of printing and cloth dying units on the environment in the state, Textiles Minister Anand Sharma today announced to set up a high level committee to look into the damages caused by those units. The committee, which will be headed by the Textiles Secretary, will work out an economically viable solutions to solve the problem. It would also have state government officials, including from the Departments of Forest and Environment. “Notification for the formation of this committee will be issued in a week and a team of technical expert will visit the affected areas soon thereafter and suggest us the techno-economic solutions on the lines of one in Trichur city to offset the environmental destruction,” Sharma, who is also the Minster for Commerce and Industry, said. Three districts – Jodhpur, Barmer and Pali – put together, have over 2,000 textile units engaged in printing and dying of the cloth. These have emerged as a major threat to the environment and ecology of their respective region in absence of a full proof effluent disposal plan and adequate Common Effluent Treatment Plants (CETP).

‘Response to textile policy good’ – M’shtra state official

“The response is very good but implementation of the new textile policy will naturally take some time”, said a top official of the Maharashtra Textiles Ministry. 

“The policy is just announced. It will take time for the projects to get finalized”, informed Mr Sunil Porwal, Principal Secretary in the Textiles Ministry of state of Maharashtra. 

Mr Porwal was responding to queries from fibre2fashion, regarding the response to the recently announced new textile policy announced by Maharashtra. 

The Maharashtra government had recently announced a new textile policy, which aims to attract Rs 400 billion in investment and generate 1.1 million new jobs over the next five years. 

Mr Porwal added, “It requires time to get projects approved from banks and since the industry is not going through a good time, banks are reluctant to give loans”. 

The other main objective of the policy was to set up a farm to industry cotton value-chain, in order to rejuvenate the cotton regions in the state. 

The new policy envisages setting up of textile units in the cotton growing regions of Vidarbha, Marathawada and northern Maharashtra. 


Textiles key sector in India’s new manufacturing policy

The Indian textile sector has been identified as a key-labour intensive industry in the National Manufacturing Policy. The new manufacturing policy came in to effect three months back and was being debated and discussed since the last 18 months. 

The National Manufacturing Policy envisages precisely a 14 percent annual growth rate in the overall production sector for the next 10 years. Alongside it also envisions, generating 100 million manufacturing jobs in the same period.

“The textile industry is a labour-intensive industry which the policy has recognized as a focus area, Mr. Ajay Shankar, Member Secretary of the National Manufacturing Competitiveness Council (NMCC) told fibre2fashion.

He added, “We have a vision for its growth to take off the way we want it to take off so, we need to work together to address the short term problems which the industry is facing”.

“To ensure the growth rate is achieved under the circumstances, we need to first work out what is possible and then target those growth rates”, he revealed.

Providing details about the new policy, he said, “The National Manufacturing Policy aims strictly at success in manufacturing. It aims at precisely 14% growth rate for the next 10 years and create 100 million jobs in manufacturing sector. 

“The policy constitutes a very comprehensive strategy and there are certain points which need to be addressed. One element which is very important is the skill mission so that there are enough people with employable skills, so that the availability of skilled manpower is ahead of the jobs in terms of demand rather than being behind them. With this view the skill mission has been launched. 

“Another key element is that we must have industrial land available readily at feasible prices. This we will ensure in partnership with the state governments. The policy also envisages the creation of the National Industrial Manufacturing Zones which will be spread around an area of about 5,000 hectares. 

“It will be developed as Industrial Manufacturing Zones and then there will be an entire ecosystem for manufacturing in these areas which is large enough and has world class infrastructure”, he concluded by informing. 

Highlights in Union Budget 2012-13 for textile industry

A. For Modernisation of Mill
1. Financial package of Rs 3,884 crore for waiver of loans for handloom weavers and their cooperative societies.
2. Textile mills planning modernisation will benefit from customs duty exemption (five per cent earlier) on automatic shuttleless looms. The import duty on second hand automatic looms will also come down to 9.33% from the present 14.33%.

B. Branded Garment
1. The excise duty on branded garment has been increased from 10% to 12%, the abatement of 55% from the maximum retail price (MRP) has also been raised to 70%. This would bring down the incidence of duty as a percentage of MRP from 4.5% to 3.6%.

C. Custom Duty
1. Customs duty exemption of shuttleless looms from 5% to 0%.
2. Full exemption from basic duty is being accorded to automatic silk reeling and processing machinery as well as its parts.
3. Exemptions and the existing concessional rate of basic customs duty of 5% only to new textile machinery. Also, second-hand machinery would now attract basic duty of 7.5%.
4. The basic customs duty on wool waste and wool tops would be reduced to 5% from 15% and wool tops from 15% to 5%.
5. Basic Customs duty on Aramid thread/ Yarn/ fabric for manufacture of Bullet proof helmets for Defence and Police personnel is being reduced from 10% to Nil with Nil CVD and Nil SAD.
6. Basic customs duty on Titanium dioxide classified under CTH 2823 00 10 is being reduced from 10% to 7.5%.
7. Basic customs duty on Sintered natural uranium dioxide/ Sintered uranium dioxide pellets (U-235) classified under CTH 2844 20 00 for use in the production of nuclear power is being reduced from 7.5% to Nil.
8. Basic customs duty on Super Absorbent Polymer (SAP) classified under 3906 90 90 imported for use in the manufacture of Adult Diapers is being reduced from 7.5% to 5% alongwith Nil SAD on actual user basis.
9. The benefit of existing exemption from Customs duty on Road Construction equipment is being extended to projects awarded by Metropolitan Development Authority also.
10. Full exemption from basic customs duty is being provided to shuttle less looms, parts/components of shuttle less looms by actual users for manufacture, specified silk machinery viz. Automatic reeling silk reeling and processing machinery and their accessories including cocoon assorting machines, cocoon peeling machines, vacuum permeation machine, cocoon cooking machine, reeled silk humidifier, bale press and raw silk testing equipment.[S. No. 406 of notification No. 12/2012-Customs dated 17.03.2012 refers]. The existing concessional duty rate extended to specified textile machinery is being restricted only to new textile machinery. (The concessional rate is 5%. For used machines, the duty will be 7.5%).

D. Excise Duty & Service Tax
1. Standard rate of excise duty raised from 10% to 12%.
2. Service tax rates raised from 10% to 12%.

E. The government also plans to set up a powerloom mega cluster in Ichalkaranji, Maharashtra, with a budget allocation of Rs 70 crore. Ichalkaranji is the only place in India which produces yarn of all counts.

F. Setting up of two more mega clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and other for Godda and neighboring districts in Jharkhand in addition to 4 mega handloom clusters already operationalised. He also proposed setting up of three Weavers Service Centres, one each in Mizoram, Nagaland and Jharkhand. The Minister proposed a Rs 500 crore pilot scheme in twelfth plan for promotion and application of Geo-textiles in the North East. A powerloom Mega Cluster will be set up in Ichalkaranji in Maharashtra.

G. Basic customs duty on Hydrophilic Nonwoven, Hydrophobic Nonwoven ( CTH 56031100) imported for use in the manufacture of Adult Diapers is being reduced from 10% to 5%, With 5% CVD and Nil SAD on actual user basis.

H. Project import status is being granted for Green Houses set up for protected cultivation of Horticulture and Floriculture produce – will hurt domestic Agro Textile companies.

I. JV Defence Production will help support the modernisation of textiles used in Defence Production.

J. NHAI and Infrastructure Growth focus in the budget– will help geotextiles usage.

K. SIDBI funding for SME will help in the entrepreneur development programme in Technical Textile.

L. 200% weightage reduction in R and D in house activity.

M. Peak rate of Cenvat has been increased from 10% to 12%.

Indirect Benefits

1. One of the 5 core objectives of the budget is GROWTH IN DOMESTIC DEMAND- offers opportunities for Technical textile sector to push for non budget measures which can help domestic demand.
2. The strong emphasis on Agro growth, Horticulture, and improvement on Food yield offers opportunity for increase usage of Agro textiles.
3. National Skill development mission increase in budget can help the sector to fund its skill shortage issues too.
4. Rural infra development fund – Rs 20,000 Cr and more 8,000 kms of road network to be done.. . Can be used by geotextiles companies.
5. National urban health mission to set up – can be used to increase the usage of Medical Textiles.
6. Govt to fund Rs 5,000 Crores as India Opportunity Venture fund – to help SME companies In Technical Textiles for equity.

Indo InterTex to start on April 19

Peraga Nusantara Jaya Sakti PT and Expostar Global Event Ltd will organize Indo InterTex 2012. 

Indo InterTex 2012 (The 10th Indonesia International Textile and Garment Machinery & Accessories Exhibition), in conjunction with INATEX 2012 (The 10th International Textile, Fibres, Yarns, Fabrics, Garments, Home Textiles, and Textile Accessories Exhibition) will be held on 19-22 April 2012 covering more than 14,000 square meters at Jakarta International Expo, Kemayoran.

Together with the joint support of the Indonesian Textile Association (API), it is believed that “This prime exhibition shall facilitate the best platforms especially for updating the national related TPT players with the latest industry and market developments in Textile and Garment sector.” 

The theme of the event: Innovative Solution towards Global Competition

Official Supporters:
– Department of Industry of The Republic of Indonesia
– Government of west Java Province
– Indonesian Textile Association
– Indonesian Chamber of Commerce and Industry
– Indonesian Exhibition Companies Association

Founded in 1986 PT Peraga Nusantara Jaya Sakti is now one of the leading International Exhibition Organizers in Indonesia.


Indo InterTex


source: Fashion2fiber

Swisstex California becomes bluesign system partner

Swisstex California Inc., an industry leader in dyeing and finishing for knit fabrics since 1996, has announced that it has become a bluesign system partner.

The Los Angeles, California-based company said the partnership with bluesign will enable it to provide a healthier and more successful textile future.

Besides further minimizing its negative impact on the environment, Swisstex is also replacing its existing dyeing machines with new state-of-the-art models as a part of its modernization plan.

Thomas Schrieder, President of Swisstex, said the company did everything possible to reduce its harmful impact on the environment, but still there was a missing link which has now been filled with bluesign certification.

He added that the bluesign system partnership will give Swisstex access to tools that were previously unavailable, and thus help the firm choose the input items that would have the least negative impact on the environment.

The bluesign standard puts a reliable and proactive tool at the disposal of the entire textile production chain from raw material and component suppliers who manufacture yarns and dyes, to textile manufacturers, to retailers and brand companies, to consumers.

It combines all aspects of occupational health, air and water emissions as well as consumer safety in a single standard under the general objective of resource productivity.