SURAT REPORT per kg., while the prices of airtex based nylon yarn rose by Rs 10/kg. Nylon prices have continued soaring in the last four weeks, over a rebound of differenr raw material costs. The currently low level of caprolactam production may boost material costs of polyamide producers, possibly resulting in higher prices in the coming weeks. Polyester yarn prices are also increasing in the local market. In March sale, the spinners has increased POY prices by Rs 1/kg and Rs 3/kg. of PTY. Despite the low demand the prices of various deniers of polyester yarn has risen upto Rs 25/kg. to 50/kg. during last seven months. Industry demands inclusion of high-speed machines under A-TUF Weaving industry associations of the city are demanding more fund allocation and relief under Amended Technology Upgradation Scheme(A-TUF). The association has submitted representation to the office bearers of the textile commissionrate seeking subsidy for 8-24 powerloom machines and inclusion of waterjet, airjet high-speed machine under the scheme. For the promotion of Power Tex India scheme, last week, ahmedabad textile commissionrate has organised a meeting with weaving industry association in Surat. They breif about the yarn bank scheme under Power Tex India with an objective of providing interest free corpus fund to special purpose vehicles or consortiums to enable them to purchase yarn at wholesale rate and give the yarn at a reasonable price to small weavers. The Power Tex India scheme aims to boost common infrastructure and modernisation of the powerloom sector in the country. They briefed about Pradhan Mantri Credit Scheme for powerloom weavers and solar energy scheme for powerlooms. The members of the association coveyed them that the textile industry had been badly affected by demonetisa-
tion, Goods and Services Tax (GST) and e-way bill. The industry is seeking relief from the government. In cluster like Surat, the country’s largest man-made fabric MMF hub, there are around 6 lakh powerloom machines working in decentralized and unorganized sector. For better quality and production high-speed machines are need of the hour. The weaving association has demanded that the waterjet and airjet machines in MMF hub in Surat should be included in the A-TUFS by the Ministry of Textiles. The textile units are waiting for the subsidy amount since long. The Association has appealed to clear the dues (subsidy amount) that need to be paid to the textile units under the scheme. SGCCI seeks refund of GST paid on textile machinery under EPCG scheme The office bearers of Southern Gujarat Chamber of Commerce and Industry (SGCCI) and weaving association of Surat had met the Commercial tax commissioner of the state and requested to consider opening stock credit on the goods held by the weavers and traders pre-GST. They have also demanded refund of the GST paid on the textile machinery purchased under Export Promotion Capital Goods (EPCG) scheme. The industry delegation has highlighted the anomalous situation which has emerged after the implementation of GST. They have requested for free movement of yarn without e-way bill in the state. They informed that refund mechanism of input tax credit on account of IGST has become a matter of serious concern as there is no clarity on the refund process. High rate of IGST without any refund relief has rendered the EPCG scheme unattractive. The commissioner has asked the delegation to prepare a report on the losses incurred by the sector and the list of demands related to Goods and Service Tax (GST) to be submitted to the GST Council.
YARN REPORT
High Domestic Prices Continue To Dent Exports
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otton exports continued to decline in January with shipment of 12.4 lakh bales (170 kg each) as against 14.3 lakh bales exported a year ago in a disrupted market environment. The slowdown this year is largely due to rising prices and slower buying exports to Bangladesh. Thus, the first four months of 2017-18 cotton marketing season, recorded shipment of 33.5 lakh bales as against 35.9 lakh bales in the corresponding months of previous season. The price realization averaged INR 114 a kg or US cents 82.75 per pound in January as against spot Shankar-6 at US cents 82.69 per pound. Global spot benchmark, the Cotlook Index ‘A’ averaged at US cents 91.5 per pound. The current season began with average export prices at US cents 80.8 in October which jumped to US cents 90.68 in November only to moderate at US cents 75.5 in December, but domestic prices rose to US cents 79.4 per pound which made exporters cancel contracts.
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During January, Bangladesh, Pakistan and Vietnam were the largest importers of cotton with combined volumes
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March 2018