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Chairman Speech APPAREL EXPORT PROMOTION COUNCIL Regd. Office:-A-223, Okhla Industrial Area, Phase-1, New Delhi-110020 CHAIRMAN’S SPEECH CIN NO. U74899DL1978NPL008877 nd Telefax No. 011-40501798, Email:[email protected], Website: www.aepcindia.com Speech by Dr. A. Sakthivel, Chairman, AEPC at 42 AEPC ANNUAL GENERAL MEETING on 14th August, 2021, Through Video Conferencing Chairman’s Speech 42nd AEPC Annual General Meeting Dear Colleagues, Shri Tarun Bajaj, Secretary (Financial Services) Shri Debasish Panda, Special Secretary (Logistics) Department of Commerce Shri Pawan On behalf of the Executive Committee of Apparel Export Promotion Kumar Agarwal, Joint Secretary, Department of Commerce Smt Nidhi Council and on my personal behalf, I take great pleasure in extending a Mani Tripathi and Joint Secretary (Drawback) Shri Nitish K Sinha among very hearty and warm welcome to all of you at this 42nd Annual General few others. Meeting of the Apparel Export Promotion Council. The Notice convening the meeting, the Annual Report for the financial year ended 31st March I also met Hon'ble Chief Minister of Tamil Nadu Shri M K Stalin and 2021, along with Annual Audited Accounts and Auditors' Report have submitted a memorandum, highlighting proposals to accelerate exports been with you, and with your permission, I take them as read. from the state by three folds, from the present $30 billion, in a period of five years. The year gone by was one of the most difficult and challenging one that many of us have faced and it has impacted our lives in unforeseen ways. I welcome the government's decision to continue the Rebate of State The COVID-19 pandemic has cast a shadow of uncertainty and anxiety and Central Taxes and Levies (RoSCTL) Scheme on Apparels and st all over the world. Through these difficult times the relentless effort and Made-Ups till 31 March 2024 at the same rate. I am extremely grateful to determination of all the frontline health and social workers has stood out Hon'ble Prime Minister Shri Narendra Modi, Hon'ble Finance Minister as a beacon of hope for humanity and I would like to convey my sincere Smt Nirmala Sitharaman, and Hon'ble Minister of Textiles, Commerce & st gratitude to them for not only keeping us safe but also helping the Industry Shri Piyush Goyal for extending the RoSCTL scheme till 31 economy move forward. March 2024. This ensures a stable and predictable policy regime and will prove to be fillip for exports of globally competitive Indian apparel. As we started the financial year 2020-21 in the midst of the nationwide lockdown, our first and foremost priority was to ensure the health and Now, I would like to highlight some of the initiatives, well-being of all our employees and workers engaged in the Apparel taken by me, during the year, for the benefit of Apparel Export Industry by setting up work-from-home infrastructure and Export Industry:- ensuring safe sanitized workplaces and vaccinations for the worker & staff engaged in the Apparel Export Industry. 1. Launch of AEPC Virtual Platform. In order to bridge the gap of buyer & seller during these trying times, I Our gratitude to Hon'ble Prime Minister Shri Narendra Modi for ensuring have taken an initiative for development of Virtual Platform of AEPC free vaccines for all – a must for economic recovery as it will help ensure safer workplaces. I also thank our members who contributed more than to organize export promotion activities on the platform. Rs 1.60 crore towards fighting the pandemic in Tamil Nadu. This platform was inaugurated by Shri M. Venkaiah Naidu, Hon'ble st I am happy to share that after taking charge as President of Federation of Vice President of India on 21 January, 2021 in the presence of Madam Indian Export Organisations (FIEO) on 28 June 2021, I met Hon'ble Vice Smriti Zubin Irani, the then Hon'ble Union Minister of Textiles. Total 324 President of India Shri M. Venkaiah Naidu and apprised him about export exporters have uploaded their company profiles and 611 buyers have scenario of the Country. I also met Hon'ble Finance Minister Smt Nirmala visited & registered themselves on the virtual platform. Sitharaman and Hon'ble Minister of Textiles, Commerce & Industry Shri Piyush Goyal and apprised them about concerns related to the apparel 2. Promotion of MMF Garment export sector. I also had the great opportunity to discuss our issues and I have taken up the issue of promotion of MMF garments with the challenges with Commerce Secretary Shri B.V.R Subrahmanyam, Government. The Govt. of India announced an outlay of Rs.10683 Crore Textiles Secretary Shri Upendra Prasad Singh, Niti Aayog CEO Shri towards Production-Linked Incentive (PLI) Scheme to enhance India's Amitabh Kant, Directorate General of Foreign Trade (DGFT) Shri Amit manufacturing capabilities of MMF segment and Technical Textiles. The Yadav, Central Board of Indirect Taxes and Customs (CBIC) Chairman PLI scheme in MMF segment and technical textiles is aimed at making Shri Ajit Kumar, MSME Secretary Shri BB Swain, Revenue Secretary 1 2 Chairman’s Speech 42nd AEPC Annual General Meeting Indian manufacturers globally competitive, attract investment in the Commissioner's Office has been advised to find evidence of cartelization areas of core competency and cutting-edge technology; ensure which is resulting in spikes of cotton yarn prices and hurting the overall efficiencies; create economies of scale; enhance exports and make interest of the industry. Former Hon'ble Textile Minister also cautioned India an integral part of the global supply chain. Mill Associations that Cotton Corporation of India will blacklist for 3 years such mills which are hoarding and inflating the prices. She also To support the government's vision to enhance investment and requested Secretary (Textiles) to immediately take it up with the capacities in MMF segment, we have taken various initiatives i.e MMF Competition Commission of India for taking penal action against such Cell in AEPC has been setup, Compendium on MMF Garments has mills which are hoarding and inflating prices. been prepared and launched by Secretary (Textiles) which will help the apparel manufacturers to understand the profile of MMF garments like I have assured full cooperation for a third party study with regard to the exports, price, sample pictures etc, Resource Centre with a spikes in cotton yarn prices. AEPC has said that the proposed study by comprehensive collection of MMF garments and fabric swatches has Texprocil and Textile Commissioner's Office for conducting a data driven, been created at Apparel House, Gurgaon, letters have been written to statistical study with the aim of including "forensic details" that are fabric suppliers in Vietnam, South Korea and Taiwan for joint venture or causing these spikes will greatly help in understanding the sources of the 100% FDI or technical collaboration for manufacturing and processing of spikes and controlling them. With Ministry's support, such a study can man-made fabrics in India and organized several webinars and B2B set precedents for a data driven management of the supply chain meetings, etc. imbalances. This decision is important to prevent supply chain imbalances and will protect lakhs of livelihoods. Due to the price hike in I am extremely grateful towards Hon'ble Prime Minister of India Shri yarns, lot of powerloom units have been closed and MSMEs have been Narendra Modi, and Hon'ble Minister of Textiles, Commerce & Industry badly impacted. MoT's investigation will help in saving the livelihood of Shri Piyush Goyal for removing Anti- dumping Duty on Viscose Staple lot of workers in the powerloom sector and apparel industry. Apparel fible (VSF). I also appreciate the efforts of the then Minister of Textiles, manufacturers believe that this investigation will help in curbing the Smt Smriti Zubin Irani for initiating thorough investigation in February, steep increase and unpredictability in availability of cotton and yarn, 2021 which will give flip to the MMF Sector. which is hampering the apparel industry's order book planning and overall competitiveness of the entire value chain. 3. Stability in Cotton Yarn Prices India is looking forward to new opportunities coming its way due to new We look forward to a policy to encourage value added exports, so that international developments, like ban on imports of cotton from Chinese the international developments, like ban on imports of cotton from province of Xianjing. In this regard the Council has expressed Chinese province of Xianjing can become an opportunity for India to confidence that Indian apparel exporters can meet the expected increase its value added exports in the textile value chain. increased demand, if the price and availability of inputs like cotton and yarn are stable. In response to the steep hike in prices during the year, 4. Release of old ROSL AEPC had requested the Hon'ble Union Textile Minister for intervention I have taken up the matter with all concerned departments, like CBIC, regarding stabilizing the prices of cotton and cotton yarn, and bringing DGFT, and Ministry of Textiles relating to shipping bills not getting stability in the supply of yarn to domestic manufacturers. It had been reflected in the DGFT portal and exporters are not being able to apply for requested that quantitative restrictions and export duties may be the old ROSL that has been pending for several years. The matter has imposed on exports of raw cotton and cotton yarn. I had several VCs with been resolved partially. stakeholders like CITI, CMAI, PDEXCIL, TEXPROCIL, FIEO, SIMA, NITRA, CCI and raised the concern of increasing yarn prices and 5. AEPC Facilitation for Risky Exporters availability of yarn. It has been discussed that there should not be any AEPC has been constantly following up with DGARM to remove the disruption of any yarn supply and to keep the price stable.
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