Cotlook A Index - Cents/lb (Change from previous day)

03-06-2019 79.10 (-1.25)

05-06-2018 99.60

05-06-2017 86.70

New York Cotton Futures (Cents/lb) As on 05.06.2019 (Change from

previous day)

July 2019 68.94 (-0.03)

Oct 2019 68.21 (-0.36)

Dec 2019 67.16 (-0.81)

05th June

2019

Goyal to hold discussions for trade promotion

IGST credit accrued in FY18 won't lapse even if not availed

in that fiscal: Finance Ministry

India Projected To Become World’s 5th Largest Economy:

IHS Forecast

Finance ministry in 'quarantine' from Monday as Budget-

making exercise begins

Cotton and Yarn Futures

ZCE - Daily Data (Change from previous day)

MCX (Change from previous day)

June 2019 22000 (+40)

Cotton 13650 (0) July 2019 22140 (+70)

Yarn 21035 (-165) Aug 2019 22180 (+190)

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2 CITI-NEWS LETTER

-------------------------------------------------------------------------------------- Goyal to hold discussions for trade promotion

IGST credit accrued in FY18 won't lapse even if not availed in that fiscal:

Finance Ministry

India Projected To Become World’s 5th Largest Economy: IHS Forecast

Finance ministry in 'quarantine' from Monday as Budget-making exercise

begins

One startup recognised every hour in May: DPIIT secretary

Cotton Advisory Board may follow farm min and cut 2018-19 crop view

Industry seeks tax cuts, reforms in land, labour laws

Foreign policy challenges

India, SA ask WTO to review moratorium on e-commerce customs duties

Apparel imports go up as exports continue to shrink

Why India is not retaliating against the US

SIMA for early release of pending TUFS subsidies worth Rs 9,000 crore

India to oppose multilateral rules in e-commerce at G-20 meet in Japan

-------------------------------------------------------------------------------

China garment factories may shift to Bangladesh

Zambia eyeing big investments from India

Ikea pursuing alternative fibers in product development

Bangladesh: Up in the clouds

Trutzschler to present new digital solutions at ITMA

----------------------------------------------------------------------

NATIONAL

---------------------

GLOBAL

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3 CITI-NEWS LETTER

NATIONAL:

Goyal to hold discussions for trade promotion

(Source: The Hindu Business Line, June 04, 2019)

Commerce and Industry Minister Piyush Goyal will brainstorm on issues such as export

promotion, monitoring of infrastructure projects, import substitution, increasing

logistics efficiency and leveraging the government e-market place at a joint meeting of

the Board of Trade and the Council of Trade Development and Promotion in New Delhi

on June 6.

“Discussions will be held on various issues relating to promotion of exports and

domestic manufacturing and reduction in imports. Issues related to improvement in

logistics, agricultural export will also be discussed,” according to an official release.

Secretaries of the Departments of Commerce, Revenue, Shipping, Road Transport and

Highways, Civil Aviation, Promotion of Industry and Internal Trade, Agriculture,

Information Technology and Textiles will participate in the high-level joint meeting

along with representatives of export promotion councils and representatives of industry.

The Board of Trade includes top corporates including Anand Mahindra from the

Mahindra Group, Pawan Munjal from Hero Motocorp, Ramesh Chandra from Unitech,

Kiran Mazumdar Shaw from Biocon, K Satish Reddy from Dr Reddy’s, Habil

Khorakiwala from Wockhardt, Shiv Nadar from HCL and Sanjay Kirloskar from

Kirloskar Brothers.

The Board advises the Commerce and Industry Ministry on policy measures related to

the Foreign Trade Policy in order to achieve the objectives of boosting India’s trade.

The Council for Trade Development and Promotion provides for dialogue with

States/UTs on measures for providing an international trade enabling environment.

Home

IGST credit accrued in FY18 won't lapse even if not availed in that fiscal:

Finance Ministry

(Source: Economic Times, June 04, 2019)

The Finance Ministry Tuesday assured trade and industry that input tax credit accrued

on import of goods by paying GST in 2017-18 will not lapse even if the taxpayer has not

claimed credit in the same financial year. Addressing concerns raised by trade and

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4 CITI-NEWS LETTER

industry regarding filing of annual returns for the first year (2017-18) of Goods and

Services Tax (GST) roll out, the ministry also advised taxpayers to file the correct data

about tax payment and other details as reported in monthly sales returns in annual

return GSTR-9 by omitting the auto populated data. The ministry said that many

taxpayers have raised concern that annual return form GSTR9 does not allow a taxpayer

to report details of IGST paid on imports made in 2017-18 but credit for the same was

availed in 2018-19. "Due to this, there are apprehensions that credit which was availed

between April 2018 to March 2019 but not reported in the annual return may lapse. For

this particular entry, taxpayers are advised to fill in their entire credit availed on import

of goods from July 2017 to March 2019 in Table 6(E) of Form GSTR-9 itself," it added.

Issuing the clarification, the ministry further said many taxpayers have reported a

mismatch between auto-populated data and the actual entry in their books of accounts

or returns. "It may be noted that auto-population is a functionality provided to

taxpayers for facilitation purposes, taxpayers shall report the data as per their books of

account or returns filed during the financial year," the ministry said. AMRG &

Associates Partner Rajat Mohan said, "Government has said that autopopulation

functionality of annual return forms is only for the purposes of taxpayers facilitation,

thereby taxpayers need to compute and check all the records before filing of such forms.

Government has also clarified that IGST paid at the time of import of goods in financial

year 2017-2018 but availed in the returns of April 2018 to March 2019 would not lapse".

Goods and Services Tax (GST), which subsumed over a dozen local levies, was rolled out

on July 1, 2017. The annual return GSTR-9 for the first year of GST implementation is to

be filed by taxpayers by June 30, 2019. The ministry had on December 31, 2018, notified

the annual returns forms GSTR-9, GSTR-9A and GSTR-9C. GSTR-9 is the annual return

form for normal taxpayers, GSTR-9A is for composition taxpayers, while GSTR-9C is a

reconciliation statement. "All the taxpayers are requested to file their Annual Return

(FORM GSTR-9) at the earliest to avoid last minute rush," the ministry added.

Home

India Projected To Become World’s 5th Largest Economy: IHS Forecast

(Source: Emit Post, June 04, 2019)

By the year 2025 India may become the world’s fifth largest economy. It would over that

of the United Kingdom. In the Asia-Pacific region the country will stand tall at the

second position, surpassing Japan too.

IHS Markit report reveals India’s economy under Prime Minister Narendra Modi and

with Bharatiya Janata Party’s victory in the recent Lok Sabha elections looks positive.

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5 CITI-NEWS LETTER

The forecast of Indian GDP could be at an average of 7 per cent per year over 2019/2013

period.

The report added further, “India is forecast to become the world’s fifth largest economy

in 2019, reaching a total GDP size exceeding USD 3 trillion, and overtaking its former

colonial ruler, the United Kingdom. By 2025, Indian GDP is also forecast to surpass

Japan, which will make India the second-largest economy in the Asia-Pacific region.”

It is learned India will also contribute to the global growth momentum and to play key

role in the economic growth of the Asia-Pacific region.

Home

Finance ministry in 'quarantine' from Monday as Budget-making exercise

begins

(Source: Economic Times, June 04, 2019)

As Modi 2.0 government gets down to prepare its first Budget, North Block, which

houses the Finance Ministry, will be in 'quarantine' from Monday until the presentation

of the Budget on July 5. The Ministry will be out of bounds for visitors and media as it

gets down to prepare the Budget for 2019-20 fiscal year. Before the country went to

polls, an interim Budget authorising government expenditure for a limited period was

presented on February 1. With a government in place now, a full year budget will be

presented by the new Finance Minister Nirmala Sitharaman, as the domestic economy

suffered its worst slowdown in five years. Her Budget team comprises Minister of State

for Finance Anurag Singh Thakur, and Chief Economic Advisor Krishnamurthy

Subramanian. The official team is led by Finance Secretary Subhash Chandra Garg,

Expenditure Secretary Girish Chandra Murmu, Revenue Secretary Ajay Bhushan

Pandey, DIPAM Secretary Atanu Chakraborty, and Financial Services Secretary Rajiv

Kumar.

To keep the whole Budget a secret exercise, North Block will be guarded like gold in Fort

Knox and electronic sweeping devices are being installed and private e-mail facilities to

Knox and electronic sweeping devices are being installed and private e mail facilities to

most computers in the ministry are blocked.

During the 'quarantine' period, all the entry and exit points of the ministry will be

guarded by security personnel while the Intelligence Bureau (IB) personnel, assisted by

Delhi police, will keep a close watch on the movements of those entering the rooms of

the officials involved in the Budget-making process. In her budget, the 59-year-old JNU

alumnus, Sitharaman will have to address slowing economy, financial sector troubles

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6 CITI-NEWS LETTER

like rising NPAs and liquidity crisis in NBFCs, job creation, private investments, exports

revival, agrarian crisis and raise public investment without compromising on fiscal

prudence. The first session of the newly elected 17th Lok Sabha will be held from June

17 to July 26. The Economic Survey for 2019-20 will be tabled on July 4 followed by the

presentation of the budget on the next day.

Home

One startup recognised every hour in May: DPIIT secretary

(Source: Economic Times, June 04, 2019)

Abhishek further said that 1,87,004 jobs have been reported by 16,105 DPIIT-recognised

startups or more than 11 direct jobs per startup.

The government recognised more than one startup per hour in May, taking the total

number of recognised startups to 18,861 since the beginning of the Startup India

initiative in 2016. “In May 2019 only, 814 startups have received recognition. This is

more than 1 startup every hour!,” Department for Promotion of Industry and Internal

Trade (DPIIT) secretary Ramesh Abhishek said in a series of tweets on Tuesday.

Recognition of startups is only a formal acknowledgement of their inclusion in the

startup system and doesn’t make them eligible for any tax breaks. They need to comply

with a series of criteria including proof to the government of cutting edge technology

and turnover conditions. “These entities are spread across 513 districts of 29 States and

6 UTs,” he said in the tweet. Abhishek further said that 1,87,004 jobs have been

reported by 16,105 DPIIT-recognised startups or more than 11 direct jobs per startup.

“With each direct job leading to 3X indirect jobs, total jobs created by these startups are

estimated at more than 5.6 lakh,” he tweeted.

There were around 16,000 government-recognised startups in February. Startup India

is the flagship initiative of the government, launched in January 2016, which intends to

build a strong ecosystem for the growth of start-up businesses to drive sustainable

economic growth and generate employment opportunities and provides tax and other

incentives to eligible startups. Further, the secretary informed that Small Industries

Development Bank of India (SIDBI) has committed Rs 2,570 crore from Fund of Funds

to 45 venture funds, catalysing investments of more than Rs 25,000 crore. “244 start-

ups have received funding of Rs 1,561 crore,” he said. Abhishek further tweeted: “1,862

start-ups have registered, receiving 7,697 orders worth Rs 275 crore till April.” The

portal was launched in August 2016 for online purchase of goods and services by all the

central government ministries and departments. Start-ups can now get government

orders on GeM Startup Runway, while getting exemption from prior turnover, prior

experience and earnest money deposits. On the patents front, he said 1,496 enterprises

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7 CITI-NEWS LETTER

have received 80% rebate in patent filing fees, while 2,761 have got 50% rebate in

trademark filing fees. “389 avail expedited examination. 103 patents are granted. The

fastest patent was granted in 81 days,” Abhishek said in another tweet.

Home

Cotton Advisory Board may follow farm min and cut 2018-19 crop view

(Source: Cogenics, June 04, 2019)

After the industry and farm ministry, it's now the turn of the Cotton Advisory Board to

cut the cotton production estimate for 2018-19 (Oct-Sep).

An official with the Cotton Association of India said the board may announce a

reasonable cut in crop estimate in the next meeting likely later this month.

In November, the board had estimated the cotton crop at 36.1 mln bales.

Late Monday, the farm ministry, in its third advance estimate for 2018-19, revised

cotton production estimate to 27.6 mln bales (1 bale = 170 kg) from 30.1 mln bales at the

beginning of the season. This has reinforced the industry view that the output must have

fallen by around 10% from previous year.

Severe drought in top growing states such as Gujarat, Maharashtra,

Telangana, Karnataka and Andhra Pradesh has hurt cotton plantations in the current

crop year that started on Oct 1. Based on feedback from farmers and industry members,

leading industry representative body, the Cotton Association of India, has made seven

consecutive cuts in its monthly crop estimates from over 35.0 mln bales at the start of

the season to 31.5 mln bales in May.

"The association has been expressing its opinion from the beginning of the season that

production was slated to fall sharply. In many areas of Saurashtra (in Gujarat), and

Marathwada (in Maharashtra) farmers could yield only two pickings instead of normal

five due to shortage of water. Government estimates only confirmed our view," a

prominent cotton trader, who is also an office bearer of the Cotton Association of India,

said.

The Cotton Advisory Board, however, was reluctant to make any statement on

production estimates so far. In fact, the board, which is the representative body of

government agencies, growers, industry and trade working under the textiles ministry,

has not held any meeting since its first one at the start of the season in November.

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8 CITI-NEWS LETTER

In May, while releasing the World Agricultural Supply and Demand Estimates, even the

US Department of Agriculture had to make a drastic cut in India's crop estimates

following the Cotton Association of India's strong objections. USDA has pruned India's

output for 2018-19 to 25.5 mln bales of 480 pounds each, that equals 32.7 mln bales of

170 kg each. Until April, USDA had estimated India's output around 27.0 mln bales of

480 pounds or 34.62 mln 170-kg bales.

The lower output is also reflected in 40% decline in exports and 100% rise in imports as

estimated by the Cotton Association of India and other trade officials. India's exports for

the current year are estimated to fall to 4.6 mln bales from 6.9 mln bales, while imports

may shoot up to 3.1 mln bales, compared with 1.5 mln bales a year ago, the association

has said.

Home

Industry seeks tax cuts, reforms in land, labour laws

(Source: Economic Times, June 04, 2019)

Highlighting the need for creating land banks, Kirloskar said the private sector continues

to face difficulty in getting land for manufacturing units.

Top industry executives on Monday pitched for tax cuts and reforms in land acquisition

and labour laws to put the country on a double-digit growth trajectory. “It is critical to

continue with the same pace of reforms,” said Vikram Kirloskar NSE 0.83 % , president

of industry body Confederation of Indian Industry (CII), adding that with the kind of

mandate the Narendra Modi-led NDA government has received from the people for its

second term, “We wish the government will undertake reforms in the areas of land,

labour and capital”. Highlighting the need for creating land banks, Kirloskar said the

private sector continues to face difficulty in getting land for manufacturing units.

Kirloskar said reform in labour policy is sorely needed. He said while industry is not

looking for freedom to “hire and fire” at will, the government should look at encouraging

states to have fixed term employment contracts with higher wages. The CII has

suggested imposing no personal tax for incomes up to Rs 5 lakh and a corporate tax rate

of 25% sans any exemptions. “There is a need to stimulate all four tenets of the

economy, namely consumption, investments, government expenditure, especially on

capital expenditure, and a boost to exports” said Kirloskar, adding that the government

could generate funds for infrastructure NSE -0.65 % investments by monetising unused

government assets. Kirloskar, who is chairman of Kirloskar Systems Ltd, said, “With a

landslide electoral victory and new council of ministers in place, we expect the

government to engage strongly with industry to ideate and implement impactful policy

solutions for double-digit growth.” Besides, the government needs to bring in direct

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9 CITI-NEWS LETTER

taxes code (DTC) and the last leg of reforms in goods and services NSE -1.71 % tax

(GST). Strong action to spur consumption, investments and exports will take the GDP

growth rate much higher and this is the right time for India to think big and envision

GDP growth rate of 10% to greatly improve development outcomes, he said.

Home

Foreign policy challenges

(Source: The Hindu Business Line, June 04, 2019)

India will need to reshape its foreign policy to deal with changing global dynamics

Prime Minister Narendra Modi’s massive electoral mandate should add to India’s

muscle as he strides onto the world stage in his second term. But the world’s a bad-

tempered place these days and his — and India’s — diplomatic outreaches face a new set

of challenges. India’s going to have to tread a cautious path between the US and China,

complicated by the capricious Donald Trump who’s trying to create ‘a my-way-or-the-

highway’ unipolar world in which the US rules supreme. With economic growth

slackening and unemployment at a 45-year peak, Modi will have to start emphasising

trade and business and be India’s top salesman. Already, India’s in the bad books of the

US and as of June 5, Washington’s ending India’s preferential trade status over tariffs

on US goods like Harley-Davidson motorcycles (a tiny fraction of US exports to India

but one on which Trump appears fixated) and price caps on medical devices, of which

US is an important supplier. Besides that, the US is unhappy about our e-commerce rule

changes and India’s bid to build its own hi-tech national champions that could curb

space for companies like Google, Microsoft and Facebook. At another level, the US has

also scrapped India’s dispensation to buy Iranian oil and its Iran blockade means the

fate of Chabahar port is now uncertain. The fact ex-foreign secretary S Jaishankar’s been

parachuted in as external affairs minister suggests India aims to use his experience to

mend fences and draw closer to the US. But he’ll have to share the stage with NSA Ajit

Doval who’s got cabinet rank and can be expected to lead on ties with Pakistan and even

China. On a different front, with Russia too, relations are frayed though we’re still

buying their arms. But those arms purchases have riled the US and Moscow is worried

the US will put intense pressure on India to buy American arms.

The first indication of how Modi’s viewing the future came at his grand inauguration for

which Bimstec leaders were invited in a not-so-subtle signal that India has abandoned

the almost-defunct SAARC and, particularly, Pakistan. One of Modi’s early forays will be

to next month’s Bishkek Shanghai Cooperation Organisation meeting and everyone will

be watching attentively to see if Modi and Pakistan Prime Minister Imran Khan meet or

ignore each other. Khan caused a stir before the election when he said there’d be a better

chance of peace with the BJP in government.

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10 CITI-NEWS LETTER

Extreme caution, though, will likely surround any Pakistan moves by Modi. One of his

greatest initial fiascos was his dramatic detour to Lahore. Since then, we’ve have gone to

the other extreme with Balakot. Nonetheless, Pakistan is in a deep financial hole and

could come under pressure from the international community to lower its aggressive

anti-India posture in exchange for aid. The Chinese, too, know peace is vital for their

China-Pakistan Economic Cooperation (CPEC) mega-project. So if that opportunity

presents itself, Modi must move boldly to seize it.

Home

India, SA ask WTO to review moratorium on e-commerce customs duties

(Source: Business Standard, June 04, 2019)

In a joint communication submitted to the WTO on Tuesday, both the countries have

stated that the "General Council needs to revisit" all the issues on the e-commerce

moratorium

India and South Africa have asked the World Trade Organization (WTO) to revisit the

issues related with moratorium on customs duties on e-commerce trade, which is

expiring in December this year.

In a joint communication submitted to the WTO on Tuesday, both the countries have

stated that the "General Council needs to revisit" all the issues on the e-

commerce moratorium with the "utmost urgency and in its entirety".

According to industry experts, India wants an end to the moratorium and imposition of

import duties to protect domestic industry and revenue.

Since 1998, the moratorium is being extended time and again for two years.

The communication said the potential tariff revenue loss to developing countries is

estimated at $10 billion.

It said the moratorium will negatively impact the efforts of many developing countries,

which are laggards as far as digital industrialisation is concerned, to industrialise

digitally.

It could also undermine existing industries and tariffs play an important role in

protecting infant domestic industries from more established overseas competitors until

they have attained competitiveness and economies of scale.

"Customs duty-free imports of digital products may also hinder the growth of the infant

digital industry in developing countries," the communication said.

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11 CITI-NEWS LETTER

It said that with no customs duties on the imports of software, data and computer aided

design or CAD files, which are the core resource for 3D printing and which will

increasingly be used in almost all manufacturing industries, the dependence of

manufacturing sectors in developing countries from the developed nations will

considerably increase.

This will also negatively impact digital industrialisation, local employment creation and

erode trade competitiveness of small and medium enterprises (SMEs) in developing

countries, it added.

"The objectives included examination afresh of the impact of the moratorium, given that

the realities prevailing in 1998, when WTO members agreed for the first time, to the

temporary moratorium on customs duties on electronic transmissions, have changed

significantly," it said.

It added that digital trade has acquired dimensions that were then unimaginable.

"The impact of the moratorium needs to be understood from the revenue point of view

and, from a development perspective, we need to analyse how the moratorium is

impacting the efforts of developing countries and LDCs (least developed countries) to

industrialise digitally and otherwise," it said.

It said countries also need to understand the ruinous impact of digitisation on SMEs in

developing countries and LDCs.

Home

Apparel imports go up as exports continue to shrink

(Source: Sangetha G, Asian Age, June 04, 2019)

Duty free imports from Bangladesh have been worrying the industry.

Despite being a fairly large player in the apparel trade, India's imports of apparels grew

more than 30 per cent in FY19 while the exports continued to decline. Duty free imports

from Bangladesh have been worrying the industry.

Apparel exports by the country were down 3.42 per cent in FY19. However, as per the

data available for the 11-month period till February 2019, apparel imports were 32 per

cent higher compared to the previous fiscal. Between April and February, the country

imported $1,019 million worth apparels against $773 million in FY18. Once March data

comes in, the imports are likely to further go up.

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12 CITI-NEWS LETTER

"Bangladesh is mainly responsible for the increase in imports. Under the free trade

agreement with Bangladesh, the country has been increasingly exporting to India. More

worrying is the fact that our textile production is coming down while apparel imports

are going up. This is affecting the entire value chain. Bangladesh is buying fabric from

China to make apparels and sending it to India,' said Chandrima Chatterjee, Adviser,

Apparel Export Promotion Council.

Despite being a neighbour, time factor is a main impediment in the fabric trade between

India and Bangladesh. "It takes almost a month for Indian fabric to travel by land from

Surat to Bangladesh apparel units as it gets struck at the border for around 15 days,

waiting for clearance. The Chinese goods, on the other hand, reach faster through the

sea route. We have asked the ministry to do something about this logistics issue," said

Sanjay Jain, Chairman, Confederation of Indian Textile Industry.

Further, Chinese fabric is competitive in terms of cost compared to Indian fabric. In

fiscal 2017-18, garment exports to India more than doubled to $278.68 million and

between July and December 2018 it was up 143 per cent and had already touched $270

million. Bangladesh Commerce ministry had reportedly expressed its confidence to

export $2 billion worth of apparel to India in the next two years on the back of duty-free

access market and rising demand for garment items at competitive prices.

Home

Why India is not retaliating against the US

(Source: Economic Times, June 04, 2019)

The US decision to end the Generalised System of Preferences (GSP) for India from

June 5, has surprisingly, come in for a mild criticism from the Indian government which

described the US President Donald Trump's decision as 'unfortunate'. So why is New

Delhi playing it so cool at the withdrawal of GSP?

The GSP was due to expire next year, in December 2020 — having been in force since

1975. All that Trump's decision does is to end it a year and a half before its deadline.

The bilateral trade between the world's oldest and largest democracies was $65.1 billion

in FY 19 (April-December) and despite it being heavily tilted in India's favour — exports

to US accounted for $38.8 billion while imports from US were $26.3 billion — the

benefits from the GSP status due to savings on import tariffs amounted to just $190

million as only $6 billion worth of Indian exports are duty free.

The GSP was a preferential programme designed to help the "world's poorest countries

to use trade to grow their economies and climb out of poverty" and promotes "economic

development by eliminating duties on thousands of products when imported from one

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13 CITI-NEWS LETTER

of 120 designated beneficiary countries and territories." Indian authorities claim that

the country no longer requires preferential trade treatment that a GSP status grants

since it was no longer an under-developed economy.

Why India isn't ruffled?

For one, India has the option of taking the US’ GSP withdrawal to the WTO — it already

has a precedent when it won against the EU's withdrawal of GSP in 2002 for being

discriminatory against developing countries. Secondly, the US has in the recent past

reinstated GSP after withdrawing it — as it did in Argentina's case last year after certain

criteria were met.

Mutual need

The US is India's second largest trading partner, after China — which also explains why

New Delhi has postponed retaliatory tariffs on $200 million worth of American goods

eight times since last year, in response to US tariffs on Indian steel and aluminum. On

the other hand, several US companies like Amazon, Walmart, Google and Facebook

have invested billions of dollars to expand operations in India — and any major

economic retaliation could put these in jeopardy.

Home

SIMA for early release of pending TUFS subsidies worth Rs 9,000 crore

(Source: Financial Express, June 05, 2019)

Resolving the TUFS issues would bring huge investments across the country thus

creating jobs for millions of people and boost exports.

Southern India Mills’ Association (SIMA), the largest spinning mills association in the

country, has appealed to the new government at the Centre to resolve the pending

issues, including releasing the remaining `9,000-crore subsidies under Technology

Upgradation Fund Scheme (TUFS).

In a statement, P Nataraj, chairman, Sima, said, the flagship programme of the union

ministry of textiles has attracted over `3.75 lakh crore of investments in the textile

industry during the last two decades and created jobs of over 10 million apart from

enabling the Indian textile industry to become globally competitive and increase its

exports by manifolds.

The scheme was effective and industry-friendly till 2007 when it was open-ended and

later many complications were brought in the guidelines which got further complicated

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14 CITI-NEWS LETTER

at every stage. This has resulted in a backlog of `9,000 crore of TUF subsidies, severely

affecting the financial conditions of the new investors. This has stalled the potential

growth, job creation and forex earnings opportunities of the nation, he pointed out.

According to him, the textile industry is the single-largest employment provider in the

country, next only to agriculture by employing over 110 million people, especially the

rural women and people below the poverty line, and enables inclusive growth.

Realising the importance of making this sector globally competitive and grabbing the

opportunities emerging in the post-WTO era, the NDA government launched the

Technology Upgradation Fund Scheme (TUFS) during 1999 and later the same

government extended the scheme up to March 31, 2022 by allocating `17,822 crore.

This budget allocation included `12,671 crore for committed liabilities of Modified

Technology Upgradation Fund Scheme (M-TUFS), Revised Technology Upgradation

Fund Scheme (R-TUFS) and `5,151 crore for Amended Technology Upgradation Fund

Scheme (A-TUFS).

Hence, Sima is sincerely appealing to the new government to resolve TUF issues to

boost job creation and exports. Resolving issues in the TUF Scheme and releasing the

pending TUF subsidies to the tune of `9,000 crore on a fast track basis would help the

industry to create jobs for lakhs of people immediately, Nataraj said.

Resolving the TUFS issues would bring huge investments across the country thus

creating jobs for millions of people and boost exports. Special export garment package

and enhanced RoSTCL benefits would yield the desired results only when the TUFS

issues are resolved, he added.

Home

India to oppose multilateral rules in e-commerce at G-20 meet in Japan

(Source: Amiti Sen, The Hindu Business Line, June 05, 2019)

Commerce Minister Piyush Goyal set to face pressure from developed countries

India is likely to oppose attempts by developed countries, including Japan, at the G-20

Ministerial meeting on trade and digital economy at Tsukuba City, Japan, beginning this

weekend, to get a consensus on initiating multilateral rule-making for e-commerce.

Commerce & Industry Minister Piyush Goyal, who will represent India in the meet, is

expected to stick to India’s stance so far of saying no to e-commerce negotiations on

rules, a government official told BusinessLine.

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15 CITI-NEWS LETTER

“The G-20 meeting will be the Minister’s first international engagement after taking

charge of his new portfolio. He is expected to argue that it would be premature to go in

for multilateral rules on e-commerce as the sector was still evolving,” the official said.

Japan, which is one of the countries keen to negotiate on e-commerce rules at the World

Trade Organization (WTO) platform, is likely to push for consensus on the matter

amongst G-20 members using its role as the host country.

G-20 comprises of the EU as a bloc and 19 countries including Argentina, India, Brazil,

France, Germany, Italy, the US, China, Australia, South Africa, Turkey and the UK.

Support from S Africa

Amongst all G-20 members, India has the support of South Africa in its opposition to

rule-making in e-commerce. “We are sure that South Africa’s position on e-commerce

rules is the same as India’s. The two countries are likely to put together a strong

opposition,” the official said.

India and South Africa are also not party to the plurilateral negotiations on e-commerce

launched by over 70 members, including the EU, Switzerland, Australia, China, Korea,

Nigeria, Norway, Russia and Panama, at the WTO.

The Ministerial meeting in Tsukuba, on June 9-10, will be important as it will set the

tone for the meeting of Heads of State at the G-20 meeting in Osaka later this month.

“India has to negate attempts of including e-commerce rule-making in the G-20

declaration to be signed by the Heads of State. If this happens, the pressure on India to

agree to e-commerce negotiations at the WTO will multiply,” the official said.

India has earlier stated at the WTO that multilateral rules and disciplines in e-

commerce would be premature at this stage given the asymmetrical nature of the

existing global e-commerce space. The UNCTAD’s report on Trade and Development,

2018 also warns developing countries on how they could lose out to digital monopolies,

unless they take charge of their trade and investment policies.

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16 CITI-NEWS LETTER

GLOBAL:

China garment factories may shift to Bangladesh

(Source: Asia News Network, June 04, 2019)

Some Chinese garment makers want to set up factories under joint venture in

Bangladesh as they see the country as a competitive destination to relocate plants amid

a raging US-China trade war and rising costs in the world’s second largest economy.

Chinese textile and garment industry owners have invested heavily in neighbouring

Vietnam and Cambodia in the last two decades, but now they are focusing to shift their

factories to Myanmar and Bangladesh.

The reasons for the change in focus include a lack of skilled workforce in the Chinese

textile and garment industry, rising production costs, a shifting industrial base to

industries such as IT and over-investment in Vietnam and Cambodia, where labour

costs are lower.

“Now they are trying to shift the sunset industries to Myanmar and Bangladesh,” said

Faisal Samad, vice-president of the Bangladesh Garment Manufacturers and Exporters

Association.

The sunset industry refers to an industry that has existed for a long time and that is less

successful and making less profit than previously.

Samad met with some entrepreneurs of Hong Kong-based Chinese Manufacturers’

Association during their visit to Dhaka from May 22 to May 26.

The entrepreneurs came to Bangladesh to explore investment opportunities.

“Bangladesh is still a competitive place compared to China, Vietnam and Cambodia for

setting up industries because of lower cost of production, and trade privileges granted in

major markets such as the EU and China,” he said.

“They are interested to set up factories in fabrics, garment, printing and dyeing,” Samad

said.

So far, Bangladesh hasn’t allowed foreign investment in basic apparels, limiting their

presence to high-end and value-added textile and garment items.

A Chinese garment manufacturer, Robert Lok, managing director of Merit Tat

International Ltd, said he was looking for potential business partners in Bangladesh to

make fresh orders for his brand. He was part of the Hong Kong delegation.

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17 CITI-NEWS LETTER

“I have seen a very young and energetic labour force in Bangladesh in the readymade

garment sector. Their skill and the quality of work is really world class,” he told the

Daily Star.

He believes that his business will be viable if he manufactures in Bangladesh to export to

the US and other countries.

“If I manufacture here, the price will be cheaper than in China,” he said, adding that the

Chinese garment industry might be affected by the ongoing trade war.

Lok plans to make fresh orders with potential garment manufacturers in Bangladesh

before deciding to relocate his factory.

“Of course, I will tie up in joint venture with Bangladeshi partners in the future,” the

manufacturer said, adding that some local garment giants have shown interest to team

up with him to set up factories.

According to Lok, Merit Tat International has offices and owns outlets in New York and

Western Europe.

Lok said there is a huge population in Bangladesh and it is advantageous for the sector

to manage workers.

Moreover, the wage of the workers is lower compared to Vietnam and Cambodia.

Another Hong Kong-based Chinese garment maker, Francis Man Piu Cheng, said he was

impressed with Bangladesh’s garment factories as they have skilled workers and mature

management, which will be helpful to relocate his manufacturing plant to Bangladesh.

“I have already made some investment in the garment sector in Cambodia, but there is a

lack of mature management there. So, I am thinking of establishing a manufacturing

plant in Bangladesh with potential partners.”

Cheng, also the chairman of fashion apparel group Wing Tai Asia, talked to three

garment manufacturers in Bangladesh and his Bangladeshi counterparts have also

shown interest.

He expressed concern, however, about the higher lead time in the garment sector in

Bangladesh.

Most garment manufacturers in China are worried about the ongoing US-China trade

war, he said.

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18 CITI-NEWS LETTER

Zambia eyeing big investments from India

(Source: Aziz Haider, Financial Express, June 05, 2019)

Other than the technical cooperation extended to Zambia for training its defense and

civilian personnel through Indian Technical and Economic Cooperation Program, India

has also deputed armed forces personnel to Zambia to help train the Zambian armed

forces.

Owing to its strategic location in the center of three Free Trade Agreements (FTAs) that

Zambia is a member of – COMESA, SADC and Tripartite FTAs – which eliminates

custom duties and quotas on goods and services in the region, Zambia is eyeing big

investments from Indian companies.

This is something that Judith KK Kan’goma-Kapijampanga, former MP and Minister in

the Zambia Government and present High Commissioner of the Republic of Zambia is

focusing on as part of her role in New Delhi.

Several Indian companies have in recent years invested in Zambia with total

investments standing presently at about USD 3 billion. With more Indian companies

expressing interest to invest in building multi-specialty hospitals, building roads,

railways, metros, air services and setting up satellites for economic use, the High

Commissioner estimates that the amount of investment is expected to have an

additional increase of USD 8.8 billion, so as to reach a total investment of USD 11.8

billion. “This has been due to Zambia’s competitive advantage as one of the best

investment destinations in the world” says the High Commissioner.

Several Indian companies have in recent years found Zambia as safe investment

grounds in Africa. Prasad Seeds, one of India’s major seed provider, has signed an MoU

with Zambia Government for production of seed. Konkola Copper Mines, a subsidiary of

the Vedanta Resources Group have invested USD2.2 billion in Konkola Beep Water

Copper Mining Project, Sulphuric Acid plant and a new smelter.

RJ Corporation, an Indian firm trading as Varun Beverages have invested in the Pepsi

plant while Nava Bharat Singapore Ltd., a subsidiary of Nava Bharat Ventures Ltd., has

purchased 65% equity shares in Mamba Collieries Ltd. Nava Bharat has also embarked

upon a USD 750 million project to develop a coal-fired power plant with a minimum

generating capacity of 270 MW. Tarun Manganese Ltd, one of the group companies of

Dharni Sampada Pvt. Ltd. In India, has invested in manganese mining and plants to

invest another USD 300 mn in construction of a manganese processing plant.

Other success stories include Bharti Airtel, which runs Airtel Zambia and has invested in

network expansion to provide low tariffs and roll out deep in rural areas with an aim to

bridge the digital divide between urban and rural population. Indo-Zambia Bank too is a

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19 CITI-NEWS LETTER

successful JV between three Indian public sector banks viz. Bank of India, Bank of

Baroda and Central Bank of India holding 60% equity and the Zambian government

holding 40%. TataInternational too is greatly entrenched through its vehicle and bicycle

assembly plant, tannery, and hospitality businesses. Tata is also involved in developing

two power projects in the country and Tata Consultancy Engineering (TCE) is providing

consultancy services to ZESCO for the Kariba North Power Plant and Zambia Revenue

Authority for the development of an integrated tax system.

India has played the role of big brother to Zambia in various fields, and this is

something that the High Commissioner doesn’t fail to acknowledge and elaborate upon.

Other than the technical cooperation extended to Zambia for training its defense and

civilian personnel through Indian Technical and Economic Cooperation Program, India

has also deputed armed forces personnel to Zambia to help train the Zambian armed

forces.

In recent years, India has embarked upon a program to support Zambia in the

development of its infrastructure, trade, and commerce. Exim Bank of India is financing

a project aimed at decongestion of Lusaka roads, wherein flyover bridges and dedicated

lanes for public buses will be built, so as to decongest the roads of the Capital. Exim

Bank has also provided USD 5 million credit to Indo-Zambia Bank, to be utilized for

import and export of goods between the two countries. Exim Bank has also provided a

Line of Credit (LoC) of USD 50 million to Government of Zambia for the Itezhi-Tezhi

power project and has a 20% equity, after debt settlement agreement, in Development

Bank of Zambia (DBZ).

The results are forthcoming, resulting in a trade between the two countries reaching

USD 1billion. While Indian imports from Zambia include copper & articles; natural or

cultured pearls; semi-precious stones; imitation jewellery; lead; cotton; raw hides &

skin; whereas India’s exports to Zambia include pharmaceuticals; plastics & articles;

nuclear reactors; boilers; machinery & mechanical appliances and parts; electrical

machinery and parts; sound recorders & reproducers & vehicles. Copper is the major

import that shifts the trade balance in favour of Zambia.

Some other areas of investment Zambia may be looking forward to include

confectionery, tannery, solar energy, and tourism.

Dr. Kenneth Kaunda, the first President of Zambia who served as head of the country

from 1964 for a long period of 27 years, ending 1991, and played a vital role in the

country’s freedom struggle used to acknowledge he took inspiration from Mahatma

Gandhi and the freedom struggle that he built.

“The relationship between Indian and Zambia from the time of Kenneth Kaunda and

even before our Independence got a lot of inspiration from Late Mahatma Gandhi. We

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20 CITI-NEWS LETTER

have built upon what President Kaunda left including whichever Government comes

into place. Zambia has recognized and still recognizes India as a big brother. Out of

about 16-17 million people in Zambia, 10% of that is of Indian origin, who are

contributing to different aspects of Zambia’s economy. That goes to show that our

relationship is evolving and getting better all the time,” tells the High Commissioner.

(The writer is an independent analyst writing on trade and bilateral relations.

Home

Ikea pursuing alternative fibers in product development

(Source: Home Textiles Today, June 04, 2019)

Ikea is working on home textiles made from rice straw and ocean plastic.

Those were among a host of collaborative innovations announced during the retailer’s

annual Democratic Design Days event. Altogether, the latest initiatives are focused

on areas including safety, health, food, art/design, urban living and sustainability. New

ideas range from integrating gaming into to home furnishings to creating robotic

furniture to launching a collection of bedding, bath and kitchen products for disabled

consumers.

In the soft home area, new developments include:

• Forandring, a collection made from rice straw – a harvesting residue that contributes

heavily to air pollution when burned. As part of Ikea’s Better Air Now initiative, the

retailer has joined the Climate and Clean Air Coalition to create a model that will reduce

pollution in India and other crop-burning regions of the world. The first prototypes were

presented during Democratic Design Days and will be sold this fall in select Ikea

markets.

Musselblomma, a collection made of recycled plastic, partly collected by Spanish

fishermen in the Mediterranean Sea. The plastic is aggregated in containers onshore in

ports and cleaned, sorted, mechanically recycled and together with recycled PET bottles

made into yarn and fabric. The products – a bag, two cushion covers and a tablecloth –

are designed by the Spanish designer Inma Bermúdez, with inspiration from the ocean.

They will be available in Italy and Spain this fall. Last October, Ikea became a member

of NextWave, an initiative that engages private companies, scientists and NGOs to

integrate ocean-bound plastic into consumer products in a scalable way.

• TreetoTextile, which launched in 2014, seeks to reduce dependency on cotton and

other fossilized materials by industrializing a new low-cost fiber based on cellulose from

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21 CITI-NEWS LETTER

wood. Although the project is still in the research phase, but the goal is to deploy the

developed new technology and make it accessible for textile suppliers around the world.

A commercial demo plant will be built as an integrated part in one of Stora Enso’s

existing plants and the plan is to start production for Ikea bed linens, curtains and

upholstery fabric in a couple of years. The project is being conducted in collaboration

with H&M and innovator Lars Stigsson.

Ikea also reiterated its intention to replace all virgin polyester in textiles with recycled

poly by 2020. Currently, 50% of Ikea’s poly textiles are made with recycled fiber. The

company is also aiming to eliminate virgin fossil materials from its products by 2030,

replacing them with renewable or recycled materials.

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Bangladesh: Up in the clouds

(Source: Daily Star, June 03, 2019)

Your columnist has just completed a little over a month of being a “female” leader of an

exporters’ association. A number of congratulatory messages have flowed in, the

bouquets have flooded our living room, and then there were the telephone calls and

texts, the social media felicitations… they have all been wonderful. Victory, I assumed,

was going to be a humbling experience. It has, in turn, turned out to be an

overwhelming one. The reference to me being a “female” was a hiccup. I had also earlier

thought that being an exporter was good enough; it now seems that being a female

makes it quite different. Your columnist is apparently the “first” female president of the

said organisation. That label made me think harder. Leading a sector where 80 percent

of workers are women seemed the most natural thing on my part. Yet it isn’t.

It really isn’t, because (1) there are 22 factories that faced closure in the last one month;

(2) export growth has been only 5.70 percent in the last five years, compared to 17.82

percent in the 2003-2013 period; (3) prices have fallen in the USA by 5 percent and in

Europe by 4 percent; (4) wages have gone up by 184 percent in the last five years; (5)

productivity has stayed at 40 percent as a national average; (6) we have extra capacity

and are engaged in unfair competition against one another by accepting any price from

any buyer; (7) the narrative and global perception around our labour issues have

remained negative; and (8) there is an image deficit hovering around the sector in the

form of an unholy halo.

Yet, there are 3.5 million men and women working in this sector, which contributes 82

percent of the economy and pays around Tk 27,500 crores to our workers as salary.

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22 CITI-NEWS LETTER

Thus, at this point of time, a few facts have become necessary for a reality check. Sharing

only a few with you below:

Small is beautiful

Compared to the big factories, the small and medium ones contribute around 40 percent

to the export basket. Times have changed. Small industries are becoming more viable,

especially because consumer tastes have changed and shoppers buy more online.

Smarter, faster, blockchain-enabled Artificial Intelligence is encouraging the world to

shop online.

Current trends predict that 51 percent of Americans prefer online shopping, with e-

commerce growing at 23 percent year-over-year. With that trend almost setting in, the

order quantities are smaller and the huge factories that most of us have constructed

aren’t equipped to handle smaller quantities. Small doesn’t make sense to many of us as

we focus on optimising our efficiency with repetitive production processes. Yet, the

demand for small fashion quantities with more styles and shorter lead time has begun to

surface.

Change in consumer pattern

Consumers today don’t prioritise quantities, and stress more on quality, especially

because in a world of cramped spaces, their closet sizes have shrunk along with their

pockets. Does that mean that people will be buying fewer clothes? Probably. Does that

mean that consumers will look for value-added products? Probably. Thus, the most

logical inference will be that quantities will go down while qualities will soar. In a

probable scenario such as this, we will need smaller, specialised, compliant units to

produce the fashion orders. How will the bigger units react? Will they be able to

accommodate smaller quantities in their humungous capacities? Will they be able to do

multi-products, multi-styles? We will all need to readjust our needle to fit the global

demand. A 100-line factory will then probably need to split its lines up to cater to at

least 30 styles instead of the five styles that it is used to produce.

Subsiding crucial sectors

Current incentives to all sectors have been generous. The government is providing

subsidies up to 20 percent in agriculture, which has, in the last 10 years, reported a

growth of USD 445 million; subsidy has been up to 7-10 percent to shrimp, which has

had only USD 34 million growth; 2-5 percent for frozen fish, which has reported a dip to

USD 58.30 million from USD 80.51 million; 10 percent subsidy to plastic, reporting

growth of USD 46 million; 10 percent to pharmaceuticals with growth of only USD 67

million; 10 percent to ceramics, reporting a growth of USD 21 million; 15 percent to

leather and furniture which reported an increase of USD 962 million. Just an incentive

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23 CITI-NEWS LETTER

of 4 percent to the ready-made garment (RMG) sector for new markets has alone

fetched USD 3.8 billion.

Generous gestures

India has offered 500 crore rupees as Technology Upgradation Fund for the garment

manufacturers, and provided 5 percent extra Duty Drawback amounting to 5500.00

crore rupees. India is bearing 12 percent provident fund of the workers, which was

earlier borne by the factories. India is also providing 3 percent subsidy on bank interests

for five years for exporters with effect from April 1, 2019. On top of that, India also

provides 10-20 percent subsidy on capital machinery and spare parts.

Vietnam offers its exporters zero tax for the first four years, then 50 percent for the next

nine years, and then 10 percent for the next 15. Exporters are also exempted from VAT

and enjoying tax-free access to capital machinery, along with being given special

incentives to garment export, especially when the industrial units host 500-5000

workers. Vietnamese entrepreneurs also receive 50 percent subsidy on production costs

in the trial phase. Vietnam also offers low interest credit facility for entrepreneurs who

invest in green factories and provide funds from Vietnam Environment Protection Fund.

Exporters also enjoy a rent-free privilege for seven years in case of an investment in

readymade garment and textile.

Pakistan gives exporters 4 percent duty drawback and also gives an additional 2 percent

for new markets. Pakistan, under its export refinancing scheme, has also reduced the

rate of interest from 9.4 percent to 7.5 percent while also giving duty-free advantage to

import capital machinery. In case of new machinery, Pakistan is giving 15 percent

subsidy. In case of value-added industries, exporters are receiving loans at 9 percent

interest rate for a 3-10 year period as Long Term Financing Facility. Fast track channels

have been introduced in Pakistan to initiate quick settlement of exporters’ dues.

While I race towards the end of the column, we are close to three hours away from

Tokyo, where Bangladesh prime minister is leading 53 of us in her business delegation.

Beginning from the 1973 visit of Bangabandhu to Japan, and the striking similarities

between the flags of Japan and Bangladesh, we have come a long way. Our annual

export to Japan has crossed USD 1 billion since 2015-16 and we have also recorded a

growth of 11.73 percent during the last fiscal year. Japan, as the seventh largest export

destination, and Bangladesh have bilateral trade crossing the USD 3 billion mark.

Export to Japan has increased 6.5 times between 2008 and 2018. This is a sign of a clear

recovery from the 2016 setback.

Since 2007, apparel export has expanded more than 35 times. But the challenge has

been in the value addition part. In 2018, our 5.6 percent apparel export to Japan

resulted in only 3.9 percent in value in the import market. In general, the number of

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24 CITI-NEWS LETTER

Japanese companies has risen to 280 as of December 2018. A 2018 Jetro survey ranked

Bangladesh as the highest in terms of future expansion plan in the next 1-2 years. In

brief, in order to facilitate trade between Bangladesh and Japan, challenges in active

facilitation measures including infrastructural problems, hurdles in the tax regime,

hiccups in port handling and so on must be addressed.

Well, as they say, opportunities and challenges are like an inseparable duo.

Dr Rubana Huq is the President of BGMEA and the Managing Director of Mohammadi

Group.

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Trutzschler to present new digital solutions at ITMA

(Source: Fibre2Fashion, June 05, 2019)

Trutzschler will show intelligent machine technologies, digital solutions, and

installations for sustainable nonwovens at ITMA 2019, in hall 6, booth B101.

The textile and garment technology expo will be held from June 20-26, 2019, in

Barcelona. Trutzschler makes machines and accessories for spinning preparation,

nonwovens, and man-made fibre industry.

Cost pressure, personnel bottlenecks and fluctuating raw material qualities: These are

some of the most pressing challenges in spinning preparation. At the same time,

spinning preparation is decisive for the yarn’s quality. In order to meet these

requirements, Trutzschler counts on state-of-the-art sensor technology and digital

integration – and opens up a new chapter in carding technology: The new intelligent

card TC 19i automatically and continuously optimises the carding gap whose setting has

a critical influence on quality and performance. With a precision not achievable by

humans, the intelligent card permanently realises even the narrowest carding gap

setting of 3/1000 inch, the company said in a press release.

In addition, new cloud-based digital monitoring and management systems provide yarn

manufacturers with transparency over all processes in the spinning mill. The My Wires

app, for example, provides information on the status of clothings and service intervals

and helps with the planning of reorders. Competent service for re-clothing can be

provided immediately by Trutzschler Card Clothing (TCC).

The latest innovation in the blowroom offers more economy and quality as well: The

Portal Bale Opener BO-P, with widths of 2,900 mm or 3,500 mm, allows significantly

more bales to be placed side by side and processes them in parallel using two opening

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25 CITI-NEWS LETTER

rolls. Thus, it results in significantly better blending and higher productions of up to

3,000 kg/h.

As a complete supplier for spinning preparation, Trutzschler is also breaking new

ground in draw frames, the quality filters in the spinning mill. The autoleveller draw

frame TD 10 automatically adjusts the perfect break draft for optimum sliver quality and

realises significant cost savings due to its compact design and energy-efficient suction

system. Like the TC 19i and the BO-P, the TD 10 provides the operator-friendly T-LED

remote display which visualises important machine and production information in a

simple way.

Trutzschler Nonwovens presents sustainable concepts tailored to individual customer

needs. The focus is on technologies for the production of biodegradable light-weight

webs from renewable raw materials. In addition to proven solutions for carded,

spunlaced nonwovens made of 100 per cent cotton or 100 per cent viscose, Trutzschler

Nonwovens has developed an alternative technology in cooperation with Voith: In a

wet-on-wet process, the web is formed from cellulose-based short fibres suspended in

water and then bonded by means of hydroentanglement. The sustainable, high-quality

wipes and cleaning cloths that result from this process can be completely degraded by

microorganisms in the environment after usage by the consumer.

The man-made fibres division presents the new four-end BCF machine MO40, which is

based on the proven M40 concept. The symmetrical design in combination with the

lamellaless HPc texturing results in maximum yarn and bobbin qualities. As each

spinning position produces four BCF ends simultaneously, the machine achieves high

productivity at moderate speeds, which ensures a stable process.

In addition to the highlights from the spinning, nonwovens and man-made fibres

business units, Trutzschler will present the comprehensive services and high-

performance clothings for cards and roller cards from TCC on 1400 m 2. TCC completes

its portfolio of special flat clothings with the MT 52, which demonstrates outstanding

stability, particularly at high card productions in ring and rotor spinning. In addition,

TCC has developed the new Precisetop flat clothing, which is essential for the intelligent

self-optimisation of the carding gap in the TC 19i. Thanks to the close cooperation

between machine developers and clothing specialists at Trutzschler, customers benefit

from tailor-made and compatible solutions along the entire value chain

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