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TEXPROCIL E-Newsletter Vol.5 Issue No.1 Dated 25Th January 2021

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TEXPROCIL E-Newsletter Vol.5 Issue No.1 Dated 25Th January 2021 Member Copy Complimentary Indian Cottons, Global Reach ! A Fortnightly Publication of THE COTTON TEXTILES EXPORT PROMOTION COUNCIL OF INDIA Volume V. Issue No. 1 January 25, 2021 COVER Market report on INSIDE THIS ISSUE STORY textile trade in USA CONTENT PAGE NO. USA is the single CHAIRMAN’S MESSAGE 1 largest importer of Textile & Clothing COVER STORY 3 (T&C) in the world. Market Report on Textile Trade T&C manufacturing in USA is an important component of the POLICY TALKS 5 U.S. economy and Implementation of RoDTEP are found in Scheme every region of the country. TRADE FACILITATION 6 FAQs on “Communication between Recipient and Supplier Taxpayers" under GST CHAIRMAN’S WELCOME TO TEXPROCIL YARN UPDATE 7 MESSAGE Indian Cottons, Global Reach ! FABRICS UPDATE 8 Dear Friends, attention at the commencement of HOME TEXTILES UPDATE 9 The New Year the year. Regular delivery and rising TRADE DATA 11 2021 marks prices of raw material coupled with the transition non-availability of containers for TEXPROCIL Analysis of Textiles from a year shipments threatened to derails the & Clothing for December 2020 full of massive momentum of around 10% in cotton turmoil where textile export during the period June- DESIGN CORNER 13 the whole world December 2020. Cotton Inc.'s Denim Forecast was overturned in ways no one could In order to address the issue of supply- Highlights Color, Fabrics & have imagined nor predicted. We demand mismatch, the Council along Finishings did witnesses the stark hardships with leading associations and CITI, faced by our textile manufacturers jointly requested all stakeholders to TRADE NOTIFICATION 15 and exporters. At the same time, we not resort to panic buying and stagger should not fail to compliment the Membership Satisfaction Survey purchases to match immediate entrepreneurs who looked at the Membership Subscription requirements. Renewal F. Y. 2020 - 2021 challenges of 2020 and refocused their businesses to support new norms. Export Development Agenda Their success means a lot not merely As the New Year commenced the for the textile sector but for humanity Council stepped up its efforts to An ISO 9001: 2015 Certified Company as a whole as it grapples with issues of engage with various segments of it’s ‘lives and livelihoods’. membership by holding a Webinar Supply-Demand Mismatch on policies & procedures and online While 2021 brought in new hopes meetings of the various product and opportunities, production, prices subcommittees viz. Yarn, Fabric and and supplies became a focus of early Madeups at the Council. www.texprocil.org PAGE 2. TEXPROCIL E-NEWSLETTER, JANUARY 25, 2021 CHAIRMAN’S MESSAGE Continued from Page 1 ¾ TEXPROCIL Webinar The meeting also took note of All those present made a realistic The exporters continue to represent restrictions imposed by the USA on assessment of recent developments to the Council regarding the various Xinjiang cotton which offer various that continue to impact the global opportunities and threats to Indian trade in T&C including the US-China refunds of GST on Exports. Also many manufacturers and exporters. Overall it trade standoff, BREXIT, RTAs by India’s difficulties faced by them in getting was felt that the improved competitive competing nations, etc. The meeting Exporters” since the last many months situation with consolidation in the also reviewed Duty free access granted andexporters their have IGST been / classifiedDrawback as claims“Risky sector should not be misconstrued to by the EU for Made ups to certain remain suspended. Besides, DGFT be everlasting. Towards this end, the countries which creates disadvantage have made several amendments in the meeting also discussed strategies to for Indian products. Foreign Trade Policy since March 2020. sustain growth in the near future. On the home textiles front, players Government has also approved a new ¾ Fabric Subcommittee Meeting continued to witness a steady recovery scheme called as RODTEP. It was in this The Fabric Sub-Committee Meeting was over October-November 2020, led by context that TEXPROCIL conducted a held on 7th January, 2021 through Video high hygiene and wellness consumption Webinar on GST Refunds on Exports, Conferencing under the Chairmanship across the US and EU territories. All Risky Category Exporters & Latest of Shri Nikunj Bagdia, owner of Ken those present felt that in order to Amendments in the Foreign Trade Enterprises Pvt. Ltd. from Ichalkaranji, sustain growth in the sector instead Policy / EDPMS” on December 23, 2020. Kolhapur. The Subcommittee noted of relying heavily on the traditional markets there is a need to research on The webinar provided guidance to the present export trend in cotton fabrics new export markets for madeups. exporters on various aspects related and major markets. It was pointed that to exports and also sought suggestions the ‘Work from Home’ trend has led Friends, the membership of the to fall in consumption of uniform and Subcommittees is open for all members. by them in their day to day interactions We request our members to register from the exporters on difficulty faced pandemic led concerns for safety and for the Subcommittee of their interest Customs, Shipping Lines and the hygieneoffice wear has fabrics.led to Atsurge the insame demand time and contribute to the discussion GSTwith Commissionerates.the Regional offices The ofwebinar DGFT, and knowledge sharing activities of was very well attended by over 200 fabrics. Member discussed the scope for the Council. We propose to convene participants. The presentation was also increasingfor special suchtreatment value addedand finishes fabrics in meetings of these Subcommittees every circulated by the Council vide E-Serve the country’s export basket of products. two months so that various issues of No. 259 dated December 29, 2020. concern can be deliberated. Members are encouraged to go through The meeting also took a note of trends in the presentation and contact the cotton yarn prices and implications for Way forward cotton fabric supplies and exports. The Friends, the far-reaching impacts on the trade related issues. Subcommittee also invited suggestions of novel coronavirus have severely Council for clarification and guidance on overcoming organic cotton issues impacted cotton textiles sector and has ¾ Yarn Subcommittee Meeting in fabric export. Going further, the had a disastrous effect on every link in The Yarn Subcommittee meeting was Members present discussed strategies the cotton and textile value chain. The held in a virtual mode on 24th December to be adopted in increasing export to global pandemic has become a point of 2020 under the Chairmanship of some of the important markets. Shri Ashwin Chandran, Chairman ¾ Madeups Subcommittee Meeting for business survival this year would of Southern India Mills’ Association beinflection high. Good making fortune it evident is what that happens the bar The Madeups Subcommittee Meeting (SIMA). The meeting noted the supply – when opportunity meets with planning. was held on a virtual platform on 8th demand situation of Cotton in India and To ensure the tide turns in our favour January 2021 under the Chairmanship other countries along with discussing the time seems to be right to not only the present trend in raw cotton prices of Shri K. K. Lalpuria, Executive Director plan for success but rigorously work and implication on cotton yarn prices. and CEO of Indo Count Industries Ltd. towards the success of the plans !! Recent developments point to the rising During the meeting, the Subcommittee concerns about the liquidity crunch evaluated the situation arising out of Manoj Kumar Patodia being faced by several small and mid- COVID-19 in leading export markets for Chairman players. Madeups. :: TEXPROCIL :: JOIN US... NOW! & avail of our Membership Benefits To know more, please write to us on email: [email protected] www.texprocil.org TEXPROCIL E-NEWSLETTER, JANUARY 25, 2021 PAGE 3. Market report on textile trade in USA COVER STORY By N. Ravindranathan, Director, TEXPROCIL With a population of 316 million people, USA is the single largest importer of Textile & Clothing (T&C) in the world. In the year 2019- 20, USA imported US$ 112 Billion worth of T&C products and also exported US$ 26 Billion worth of T&C, which clearly indicates that T&C manufacturing continues to be an active sector. T&C manufacturing is an important component of the U.S. economy and are found in every region of the country. Key facts - T&C manufacturing sector in the USA : ¾ The U.S. textile industry supplies more than 8,000 different textile ¾ Provides employment to over 585,000 workers. products to the U.S. military, mostly made of synthetic textiles. ¾ Excluding raw cotton and wool, two thirds of U.S. ¾ Textile research and development is an important activity, with the U.S. textile complex developing next generation textile materials such textile supply chain exports sent to free trade as conductive fabric with anti-static properties, electronic textiles partners in 2019. The entire U.S. textile supply chain exported to more than 200 countries, with lifesaving body armour, and fabrics that adapt to the climate to make 24 countries importing $100 million or more. thethat wearer can monitor warmer heart or cooler. rate and other vital signs, antimicrobial fibers, ¾ The U.S. textile industry invested over $18 billion in new plants and equipment from 2009 to 2018, including recycling facilities to convert textile and other waste to new textile uses. E-NEWSLETTER ¾ U.S. textile mills have increased labor productivity by 69% since 2000. Edited & Published by: ¾ In 2019, hourly and nonsupervisory textile mill workers on an average Dr. Siddhartha Rajagopal earned more than twice as much as apparel store workers ($722 per Editorial Team N. Ravindranathan, Export of T&C from USA Rajesh Satam, A. Ravindrakumar, week vs. $314) and received healthcare and retirement benefits. Shailesh Martis, Sanjay Rane, Rakesh Chinthal For the period Jan-Nov 2020, USA exported US$ 20.82 billion worth of T& C products, of which export of Textiles was valued at US$ 17.11 billion.
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