Textile Sphere News Roundup - 5 Dec 2024
1. Punjab Textile Traders
Urge Finance Minister to Oppose GST Hike on Garments
The Punjab Textile Merchant
Association has appealed to Finance Minister Harpal Singh Cheema to oppose
proposed GST hikes on garments during the upcoming GST Council meeting.
The association highlighted
concerns over increasing the GST rate from 12% to 18% on garments priced
between ₹1,500-₹10,000 and imposing 28% GST on high-end garments. They argued
that these hikes could severely impact small and medium enterprises (SMEs),
reduce affordability for middle-income consumers, and shrink the premium garment
market, potentially causing job losses and business closures.
The GST Council’s decision
is awaited with concern from the industry.
2. Andhra Cabinet Approves
Policies to Boost IT, Textiles, and Tourism
The Andhra Pradesh Cabinet,
led by CM Chandrababu Naidu, has approved multiple policies, including IT &
Global Competitive Centres Policy 4.0, AP Textile Policy 2024-29, and AP
Tourism Policy.
Key textile initiatives
include setting up five parks under the PPP model, targeting ₹10,000 crore in
investments, and creating two lakh jobs over five years. Meanwhile, Amaravati's
stalled infrastructure works, with an estimated cost of ₹11,471 crore, will
resume with new tenders.
The Maritime Policy aims to
establish AP as a port-centric economy, boosting the shipbuilding sector.
3. Cotton Losing Share in
India's Fibre Market
Cotton’s dominance in
India’s fibre consumption is declining, mirroring global trends. Synthetic and
cellulosic fibres are gaining ground due to increased production and demand,
according to traders and USDA reports.
4. Fivefold Decline in
Cotton Arrivals in Punjab Amid Reduced Cultivation
Punjab’s cotton arrivals
have plummeted to less than a fifth of last year’s figures, with only 1.23 lakh
quintals reaching markets by November 30, compared to over 5 lakh quintals in
2023.
Persistent pest attacks
since 2021 and reduced rainfall have led to the lowest cotton acreage in
decades. However, private buyers are purchasing cotton above MSP, offering hope
to farmers. Experts urge improved pest management and farm care to revive this
vital crop in Punjab’s semi-arid regions.
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