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 1 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) 2 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 3 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 4