Textile Industry Current Affairs
Cabinet Committee on Economic Affairs (CCEA) has approved to expand the scope of mandatory packaging norms under Jute Packaging Material (JPM) Act, 1987. It has approved that 100% of the food grains and 20% of sugar shall be mandatorily packed in diversified jute bags. Initially 10% of indents of jute bags for packing foodgrains will be placed through reverse auction on GEM portal. This will gradually help to usher in a regime of price discovery.
Impact of this decision
It will give a fillip to development of jute sector and impetus to the diversification of the jute industry. It will increase quality and productivity of raw jute and also boost and sustaining demand for jute product. It will benefit farmers and workers located in Eastern and North Eastern regions of country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.
Jute is one of the important natural fibers after cotton in terms of cultivation and usage. Its cultivation is dependent on climate, season, and soil. Almost 85% of world’s jute cultivation is concentrated in the Ganges Delta. India is largest producer or cultivator of jute in the world (around 60%) followed by Bangladesh and China. Top jute producing states are West Bengal, Bihar, Assam and Odisha.
This sector in India is predominantly dependent on Government which purchases jute products more than Rs. 6,500 crore every year. Government has been making concerted efforts for the development of jute sector considering that nearly 3.7 lakh workers and approximately 40 lakh farmers are dependent for their livelihood on jute sectors.
Government is also making concerted efforts for development of jute sector. It is increasing quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product. The intensive Government support is to sustain core demand for jute sector and to support livelihood of workers and farmers dependent on sector.
Tags: CCEA • Economy • Economy of Bangladesh • Economy of West Bengal • Jute • Jute Corporation of India • Jute Industry • Jute Packaging • Jute Packaging Material (JPM) Act • Jute Sector • Jute trade • National • Pakistan Jute Mills Association • Textile Industry • West Bengal
Government has doubled import duties on 328 textile products to 20% from existing rate of 10% under Section 159 of the Customs Act, 1962. Earlier in July 2018, Government had doubled import duty on over 50 textile products — including jackets, suits and carpets to 20%.
The increase in duties will give edge to domestic manufacturers as imported products are currently cheaper. It will curb soaring imports from China and focus more on local value addition in labour-intensive sector. This move will also help to promote ‘Make in India’ as imports of these goods had surged drastically in last one year especially post GST. It will increase in manufacturing activity in various segments of the entire value chain of textile sector, which will help to create jobs in sector, which employs about 10.5 crore people.
The move comes amid mounting concerns that trade war between world’s biggest economies United States and China will further aggravate dumping of cheaper products from China to Indian markets. As such, India’s textile imports jumped by 16% to record $7 billion in last fiscal, with China accounting for over 40% of purchases. Moreover, 28% hike in cotton prices by Government recently to ensure at least 50% premium to farmers over costs is expected to raise basic raw material costs for domestic manufacturers and could hurt our export competitiveness across value chains in the textile and garment sector.