Daily Textile Industry News & Updates | Latest Market Trends | 05 Dec 2024

Daily Textile Industry News & Updates | Latest Market Trends | 05 Dec 2024

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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