This Week

SIMA e-Weekly
March 1 -7, 2015
Press Releases
 Press release captioned “SIMA terms Union Budget as growth oriented, appeals to reconsider
textile industry demands” issued on February 28, 2015
Meetings
 Deputy Chairman of the Association Mr M Senthilkumar, Committee Member Mr Ashwin Chandran
and Secretary General Dr K Selvaraju met the BJP President Mr Amit Shah on his visit to
Coimbatore on March 5, 2015 submitted a memorandum highlighting the issues in TUFS and a
copy of powerpoint presentation giving details on textile industry - current scenario, issues relating
to FTP, etc. Requested him to kindly make a recommendation to the Hon’ble Finance Minister to
allocate Rs 2,000 crores to meet the existing fund requirement in 2015-16 under the Scheme and
also Rs 3,000 crores to meet the pending subsidies under the scheme with effect form April 1,
2007.
Raw Material
 Additional Secretary, Department of Commerce Mr J S Deepak convened a discussion meeting on
January 20, 2015 to discuss cotton related issues. Record of Discussions circulated (Cir.No.52)
 Shipping Corporation of India provides their quotes for carrying containers form Mundra and
PIPAV to Cochin and Tuticorin
Power
 Division Bench of Madras High Court directed TANGEDCO to decide the “Must Run Status” for
wind mills within a period of eight weeks from the date of its order dated February 23, 2015.
 Requested TANGEDCO CMD to exempt power purchase made by dedicated feeder consumers in
calculating cross subsidy surcharge citing that
o
o
purchased power to meet the demand requirement
purchased power at the instruction of concerned SEs to avoid load shedding
 Telangana State Electricity Regulatory Commission has organised public hearing at Warangal
(March 12th)and Hyderabad (March 13th & 14th) to elicit the views of the consumers on the State
DISCOMS proposal on power tariff
Labour
 Ministry of Labour and Employment reduced the administrative charges on PF contribution to 0.85 per
cent from 1.10 per cent with effect from January 1, 2015
 EPFO informed that it is mandatory to submit Form 5A online before March 31, 2015
 Tamil Nadu Wage Dispute before the Industrial Tribunal has been adjourned to March 11, 2015 for
hearing
General
 Road Show on ITMA 2015 in Coimbatore has been scheduled at 7.00 p.m on March 10, 2015 at Taj
Surya, Race Course
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Details requested
 Two copies of “Balance Sheets” for the year 2013-14
 “Count-wise unsold and physical stocks” at the end of Febraury
2015
 “Mid-month ex-mill selling prices of yarns” in Rs/Kg
We solicit your co-operation to update our data bank
Price Behaviour
Variety
ICS-101 (Bengal
Deshi (RG) /
Assam Comilla)
ICS-201
(Bengal Deshi
(SG))
ICS-102 (V-797)
ICS-103
(Jayadhar)
ICS-202 (J-34)
ICS-105(LRA5166)
ICS-105
(H4-Mech 1 - Guj)
ICS-105 (Shankar
– 6 (Guj))
ICS-105 (Bunny /
Brahma)
ICS-107 (DCH 32)
Cotton – Spot* (Rs/Candy)
6.3.2015
27.2.2015
20.2.2015
13.2.2015
6.2.2015
30.1.2015
23.1.2015
15.1.2015
30100
30100
29800
29400
30400
29400
29900
30800
30600
30600
30300
29900
30900
29900
30400
31300
21800
21800
22000
21900
23200
23500
24600
26300
25800
25800
26000
27100
26900
27000
27500
28300
31100
31100
31000
30200
30200
30500
30000
31300
31400
31400
31300
30500
30500
30800
30300
31700
30300
30400
30800
29900
30000
29600
30000
31100
30800
30900
31300
30400
30600
30200
30300
31400
33200
33200
33600
33300
33200
32900
32000
32600
39500
39500
41500
42500
42400
42500
* - Spot rates quoted based on growth & grade standard (i.e: parameter based)
Count
Hank Yarn
20s
30s
40s
60s K
60s C
80s C
Cone Yarn
20s
30s
40s
60s K
60s C
80s C
6.3.2015
Cotton Yarn (Rs/Kg – Taxes Extra)
27.2.2015
20.2.2015
184
206
229
251
324
379
184
206
229
251
324
379
184
206
229
251
324
379
140
155
175
225
260
350
140
155
175
225
260
350
140
155
175
225
260
350
13.2.2015
184
206
229
251
324
379
6.2.2015
184
206
229
251
324
379
30.1.2015
184
206
229
251
324
379
43500
44100
Source: CAI
23.1.2015
184
206
229
251
324
379
140
140
140
140
150
150
150
150
170
170
170
170
225
225
225
225
260
260
260
260
350
350
350
350
Source:* - Mill Source: (Quotes are only indicative)
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News Clippings – Recap
Budget Reactions
Textile industry disappointed - The Hindu -1.3.2015
No sops for textiles but likely to benefit indirectly - (Business Line - 1.3.2015)
Union Budget: Textiles left high and dry - (The Financial Express - 1.3.2015)
Budget 2015-16 evokes mixed reaction from textile industry - (www.fibre2fashion.com)
 Allocation for the Technology Upgradation Fund Scheme had been reduced to Rs.1,520
crore for 2015-16 from Rs.1,864 crore allocated for 2014-15. Payments under the
scheme were pending for the last three quarters and the provision had to be doubled to
disburse the pending amount
 The hike in service tax would have an adverse impact on the textile industry
 Extended the optional Cenvat route for cotton textiles this year too, it had not considered
some of the major demands of the textiles and clothing sector
 The six per cent excise duty on shuttleless looms should be removed
 Overall, the Budget is very positive. Majority of textile industry workers are not so well
paid. Now since the choice of paying towards regular PF and ESI is left to the worker, it
will leave more money on their hands
 A positive aspect of the Budget, as far as the textiles sector is concerned, is that the
optional excise duty structure has been continued
 The industry had requested for a significant reduction in the duty burden on man-made
fibres in order to help this process. However, the duty burden on man-made fibres has
only been hiked further in the current Budget, though marginally
 All Industry Dutydrawback rate should be enhanced immediately after taking into
account the new incidence of service Tax, excise duty and increase of excise duty on
diesel
CCI likely to touch 2009 procurement record of 89 lakh bales,
The Financial Express may exceed
4.3.2015
 This season, CCI is likely to meet or even cross 89 lakh bales, record procurement in 2009.
Till date the CCI had purchased 80 lakh bales and is likely to meet or even cross the record
procurement of 89 lakh bales made in 2009.
 While procurement has been going well, sale operations have not picked up as anticipated
and till date it has sold some 2.5 to 3 lakh bales
Texprocil expects rise in service tax to push up cost
Business Line - 3.3.2015
 According to Economic Survey 2014-15, textiles sector has generated the highest
employment. The sector is among the top seven categories of export products. However,
the Budget has not addressed all the issues faced of the textile industry.
 The increase in service tax by two per cent to 14 per cent would impact the overall cost
Telangana plans textile policy
Cottonyarnmarket.net
 Telangana government is working on a new textile policy that would attract new industries. It
would be in line with the national policy and provide incentives matching with those
announced by states like Maharashtra, Tamil Nadu and Gujarat
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Place draft of GST laws in public domain: Industry tell FinMin
Business Line - 6.3.2015
 Industry proposed to place draft on the Goods and Services Tax (GST) laws in the public
domain.
 It’s concern is that it needs to understand these laws so that introduction of GST don't give
them any surprises
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