HEPC - Handloom Export Promotion Council

MAY 2015
IN THIS ISSUE
1. Chairman's column
2. Policy
-Excerpts of interview of Shri.Pravir Kumar,
Director General, Directorate General of
Foreign Trade (DGFT)
-Interactive Session on Goods & Services Tax (GST)
3. Focus
USA
4. Trends
Showcase of Tantu 2015
5. News bits
6. Article
- Handloom Cluster of Chanderi, Madhya Pradesh
- Converting Digital Image / Paper Painted Design
to Fabric
7. Export Data Analysis
8. List of importers of Handloom products
9. Calendar of Events
Chairman
: Gagan Rai
Vice Chairman : R. Rajendiran
Editor
: R. Anand, Executive Director
Editorial team
: N.C.K. Sreelegha
S. Gurusaranaraj
P. Rangasamy
M. Anandabalaji
Chairman's column
Dear Members,
I am happy to inform that Council has revamped its website and Shri.Alok Kumar IAS,
Development Commissioner for Handlooms will be officially launching the revamped
website on June 3, 2015 at New Delhi.
The website has been revamped with special focus on design, content, visual appeal and level
of user-friendliness to the visitor. For the Buyer, the website explains the various USPs of
Handloom products and aids in decision-making. For the Member Exporter, new features
will be added in the coming months to enable them to see first-hand their complete details and also modify details
like e-mail, phone, etc. at their end besides remitting payment for renewing their membership and fair participation
at real time. All these efforts have been undertaken only to cut down transaction time of Exporters and serve them
promptly. I request you all to visit the website regularly and pass on your suggestions.
I would like to point out that the Government of India has decided not to make any change in the Reservation
Order issued under the 1985 Act, thereby protecting the interests of handloom weavers. Ministry of Textiles has
issued a press release to this effect in order to dispel apprehension in the minds of stakeholders that Government
is amending the provisions under the Handlooms (Reservation of Articles for Production) Act, 1985 paving way
for granting advantage to power looms.
At this instance, I would like to point out that Government has fixed US$ 421 million as target for Handloom
sector during 2015-16. I request your cooperation to surpass the target.
Warm regards,
Gagan Rai,
Chairman
2
Policy
Excerpts from the interview of
Shri.Pravir Kumar, Director General,
Directorate General of Foreign
Trade (DGFT), Ministr y of
Commerce & Industry, Government
of India on the new Foreign Trade
Policy 2015-2020 published in “The
Dollar Business” May 2015:
Ques: What stands out most distinctively about MEIS is the fact
that it is a simplified combination of a few Chapter 3 schemes that
offered unique duty credit scrips with varying conditions that existed
in the earlier policy? Is it just as they say, “a simplified combination
of schemes”?
DGFT: Most importantly, we have removed all the
confusion and overlapping that existed in the previous
Foreign Trade Policy. For example, in the previous FTP,
there were common products under Focus Product
Scheme (FPS) and Vishesh Krishi and Gram Udyog Yojana
(VKGUY). So there was a lot of overlapping. But the
most fundamental change that has occurred in the new
FTP is the change in usability of the scrips. Earlier, scrips
were not usable across-the-board. For example, in the case
of Agri-Infrastructure Incentive scrip, actual user
condition existed and it was to be user for a very narrow list
of items. Similarly, there were scrips which were
transferable. Like SHIS. The scheme has ended but the
scrips continue. In the earlier version of SHIS, the scrips
were subject to actual user condition with transferability
permitted only amongst status holders. So it was again not
freely transferable. What was happening was that in terms
of revenues, if it was a Rs.100 scrip issued by the
government, the government would definitely lose Rs.100.
But the exporter who has actually worked hard and
contributed to the exports and forex earnings of the
country, he would only get a part, discounted value of the
scrips given. Because if he has little use of the scrip, and
sells it in the market, then he will not get the full value. Now,
it is fully transferable and usable against customs duty,
excise duty, as well as service tax. So the scrips can be used
against any of the three. Earlier people used to
complainingly question that if they didn't have any import
requirement, what were they supposed to do with the
scrips? So if a particular exporter has exported and earned
a reward, and he has no import requirement then how does
he use it. Now he can use it for excise duty and service tax
payment. And if nothing, he can simply transfer and
encash it. So the reward would fully go to the exporter.
Moreover, now, not only the scrips are transferable, the
goods procured using the scrips are also transferable.
Earlier that was also a constraint.
We have cases like that and there are litigations going on in
some cases regarding companies that desired to transfer
goods after two years. The products imported were no
longer usable after some time for some reason or the other
either there was change in corporate strategy or some other
factor like re-engineering or change in assembly line, etc. So
they wanted to dispose of the imported product. Earlier, the
condition was that if goods were procured using a particular
scrip, they couldn't be sold off to others, and so necessary
permissions were to be sought. Now the goods procured
using scrips are fully transferable. Apart from the
simplification or the so-called merger of schemes, an
alteration like this one is a fundamental change. Yes,
simplification has obviously been introduced. Now we have
one scheme for merchandise exports and another for
services. But, the scrips that are earned now are usable against
customs duty, excise duty and service tax. And these duties
and tax debited under duty credit scrip would be eligible for
CENVAT Credit or Duty Drawback. If we want to reward
our exporters for their good work, for earning dollars and
precious foreign exchange for the country and help them in
overcoming infrastructural bottlenecks-because the very
objective of these schemes is to compensate somehow for
the infrastructural deficiencies and lack of delivery
mechanism in our country we need the rewards to be real.
Ques: Are we talking about a step of improvement over what
existed in the form of Chapter 3 incentives in the previous FTP?
DGFT: I'd say it's a vast improvement. Post the FTP
release, I have attended conferences organized by two big
industry bodies, and this was the point in the new FTP
that was appreciated the most. That we've made lives of
exporters simpler, that they don't have to run around
now, and that the rewards will truly travel across to
persons who have earned them.
Ques: Traditional markets like USA, Canada, EU nations that
were more often than not excluded from sops offered under Chapter 3
incentive schemes previously, have now been generously treated under
the new FTP, actually, in many cases more generously than even
countries under Group B & C. Why this sudden move towards
developed countries? And is this move more because our external
merchandise trade isn't growing as fast as desired?
3
Policy
DGFT: I can say this with great confidence that the
thought that went behind the policy this time was
extremely logical and scientific. We tried to go about the
making of the policy and the various appendices in a very
systematic manner, with some carefully conducted, broad
analysis. Earlier, the list of countries and even products
finalized were randomly chosen, based on views
expressed by exporters. One exporter would request that
“I am exporting to these three countries kindly add these
countries to the list”. Another would appeal, “I am
exporting this item, kindly add my item”. The process
then wasn't uniform - so new products and countries
would keep on getting added over time and in annual
supplements. During the framing of the new policy and
deciding upon the lists, we agreed on certain broad
principles - in the case of both lists of countries and
products. In the case of list of countries, the committee
which was set up, took into account various factors. We
have limited resources, so we we'd like to get the
maximum bang for the buck. We have limited funds and
naturally we'd like to use them in a judicious manner, so as
to maximize our export growth. For us, traditional
markets are as important. If we suddenly stop worrying
about these markets, then even if we have gains in
emerging markets, our decline in exports to traditional
markets may more than offset the positive gains in new
markets. The reason being that traditional markets work
on a much higher base. So consider that on one hand, we
gain a very high 20% on a base of Rs.20 from an emerging
market in Africa, and we lose a lower 5% on a base of
Rs.100 from a developed market in US or Europe. On a
net basis, we end up losing Re.1. We cannot afford to
overlook the significance of traditional, developed
markets because all said and done, these markets are the
ones that can boast of high purchasing power. That
answers the first part of your question.
It is also important that we don't put all our eggs in one
basket. We have to pay attention to new, emerging and
fast-growth markets also.
This ensures a good
geographical diversification of our risks.
If the
Eurozone runs into trouble, it would be a bad idea to rely
completely on markets in EU. So there is a conscious
effort to give due importance to emerging markets like
Africa, West Asia, Latin America, CIS countries, ASEAN
countries, etc. That's where Group B come into picture.
Group B comprises three categories - emerging markets
like Africa and Latin America, FTA countries because we
4
would like our exporters to take full advantage of FTAs,
and high trade deficit countries like China. So group B is
the most favoured. So in some cases you will find exports
to Group A and C nations being given a 0% incentive,
while those to Group B being given 2%. Group C
consists of other markets that account for less than 10%
of our total exports - like Australia, New Zealand,
Switzerland, Scandinavian countries and island countries.
We are focusing mainly on both traditional and emerging
markets, with some science behind the choice of nations
included in the two Groups.
Ques: SEIS is another popular, ambitious and promising
announcement of this policy. But despite moves like change of
classification of eligible service exporters from “Indian Service
Providers” to “service Providers…located in India” and the change
in nature of scrips to “freely transferable” being considered positive,
there is an opinion that the unplanned, excessively abundant supply
of credit scrips that result from SEIS will lead to (a) incentivisation
of imports, and (b) loss of customs revenues. What's your view?
DGFT: Any scrip issued - be it under MEIS or SEIS - is
revenue forgone by the government. And the same
applies to any other scheme prevalent in the past. One
way or the other, the name of the scheme may change, but
the fact is that the government is foregoing its revenue for
facilitating and boosting exports so that the nation's
Current Account Deficit (CAD) position is improved
upon. So in order to earn previous foreign exchange for
the country, the government is foregoing revenues. And
definitely we have limitations. Based on the total kitty of
sacrifice that the government is willing to make, we backcalculate. If you noticed, in SEIS, we have stated in the
very first note that the scheme will be reviewed after six
months. Because we would like to see the trend that
prevails - which includes the list of sectors that benefit
the most from SEIS- before we expand the list or contain
it, or increase or reduce the benefits, or take any further
call on the scheme. We are cautious about SEIS
particularly because as compared to it, in MEIS exact
information of all exports taking place (consignmentwise), is available through Electronic Data Interchange
(EDI) database. We therefore have a strong statistical
base for that measurement. But in the case of SEIS, out
database isn't that strong. That is why we are cautious
about SEIS and in the notification itself, we have said that
the scheme is subject to review after October 1, 2015. We
want to watch the trend so that the revenue loss does not
shoot beyond a certain manageable level. We are in touch
Policy
with RBI because the reward will be given to only IEC
holders. For MEIS, merchandise export data is with The
Directorate General of Commercial Intelligence and
Statistics (DGCI&S), so that we can access any time. But
services export data is with RVI. We are in touch with
RBI for real time access of services exports information.
So even if the claims are filed under SEIS a year later,
we will get to know the trend of outflow under SEIS,
sector-wise.
To conclude, revenue foregone is a given fact, but that is a
conscious decision on the part of the government for the
welfare of exporters. This is also in tune with what I said
earlier - that we have to ensure that revenue forgone is
utilized in the most effective and efficient manner for
achieving the overall objective of India's foreign trade.
Ques: Manufacturers who are status holders (3-star and above) are
empowered by the new policy to self-certify the origin of their
manufactured goods. But can the exporters be assured that our trading
partners under PTAs, FTAs will agree to this? Are adequate steps
being taken to alter the preferential Rules of Origin accordingly?
DGFT: In fact all Status Holders who are manufacturers
are eligible but the implementation of this provision will be
a part of our negotiations with FTA partners. When the
FTAs are being negotiated, it will be on a reciprocal basis.
It's an ongoing process and we have not yet given details of
the same in the Appendix to FTP. We have only, made an
enabling mechanism and provision in the new FTP;
remember, it's a five year long policy. For new and existing
FTAs, the clause has to be built into the agreements.
Ques: Which is the single most popular change that has been
introduced with this policy?
DGFT: The new FTP is a composite document with
several features. So each and every component has its
own importance, and each of them try to take into
account our nation's priorities. We are facilitating Make
in India, Skill India, exports from India, capital goods
industry in the country, etc.- so all these are elements of
the new policy. And most importantly, we are facilitating
trade by simplifying trade procedures.
Ques: So when do we see the 24x7 Customs clearance system that
the FTP outlines becoming reality?
DGFT: That's an ongoing process. There are
infrastructural, manpower, legal and technical constraint.
The customs department is looking into the issue so that
at least at the major air and sea ports, this facility is made
available. But then again, customs is only one
department. You may need something from plant
quarantine, food safety (FSSAI), etc., so as part of
improving ease of doing business, the work to achieve
24x7 customs clearance facility is going on. How to
simplify rules? Is it possible for the customs officials to
only take samples? Is it possible to clear the goods
subject to some bond? All these questions are being dealt
with side-by-side. It's an ongoing process and the
customs is also working on a single window clearance
process. So once the single window clearance is fully
implemented, which could take another one to two years
because that' huge task and will definitely take time, we
would have achieved much on the ease of doing business.
We are a developing country and we do have a lot of
constraints. We are focusing on the big issues first.
Ques: How influential were representations from various industry
groups in the making of the new policy?
DGFT: I must thank the industry associations and
councils for their detailed suggestions. The DGFT had
detailed consultations with trade representatives, regional
and industry trade bodies. Based on all suggestions
received from trade bodies, we compiled a list of about
100 suggestions and placed them before our counterpart
the Department of Revenue (DoR). I am glad that on
almost 85-90 percent of those issues, we were able to
convince them.
Ques: Reduction of EO to 4.5 times in the case of domestic
procurement of inputs in the case of EPCG scheme provides the
desired impetus to Make in India. This is a good move to promote
Make in India. Can the industry expect similar moves in the future?
DGFT: I am hoping the EO reduction move will help the
domestic capital goods industry. It was a deliberate move
on our part to push forward Make in India. It's a conscious
effort to encourage EPCG license holders to procure from
domestic sources. About similar moves being thought of
for the future, we can never say that nothing new or similar
will be announced and that everything has been done. We
are still getting suggestions and look forward to making
progressive changes in future for the benefit of India's
foreign trade. We are currently working on e-initiatives
also, and very soon, we plan to have a paperless
environment, which should naturally lead to minimum
corruption and quick action on the part of governmental
agencies to facilitate foreign trade.
Courtesy: The Dollar Business
Photo Courtesy: DGFT
5
Policy
Interactive Session on Goods and Services Tax (GST)
An Interactive Session on Goods and Services Tax (GST)
was organized by FIEO at Chennai on 18th May, 2015:
Mr. S K Goel, Former Chairman, CBEC in his key
note address highlighted following features of GST:
! GST is an indirect tax that will lead to the abolition of
all other taxes such as octroi, central sales tax, state-level
sales tax, excise duty, service tax, and value-added tax
(VAT). Both the state and the central governments will
impose GST on almost all goods and services
produced in India or imported into the country.
! The GST structure would follow the destination
principle. Accordingly, imports would be subject to
GST, while exports would be zero-rated. In the case
of inter-State transactions within India, the State tax
would apply in the State of destination as opposed to
that of origin.
! It will simplify India's tax structure, broaden the tax
base, and create a common market across states. This
will lead to increased compliance and increase India's
tax-to-gross domestic product ratio.
! After implementation of GST there may not be
advantages for any specific state based on tax rate be
for manufacturing or procurement of raw materials.
The will increase the enhancement of manufacturing
efficiency and distribution efficiency.
! The GST structure would follow the destination
principle. Accordingly, imports would be subject to
GST, while exports would be zero-rated.
6
!
!
!
!
!
GST is levied at all points in the supply chain with
credit allowed for any tax paid on inputs acquired for
use in making the supply. It would apply to both
goods and services in a comprehensive manner with
exemptions restricted to a minimum.
In keeping with the federal structure of India, it is
proposed that GST be levied concurrently by the
Centre (CGST) and the States (SGST). It is expected
that the base and other essential design features
would be common between CGST and SGST, across
SGSTs for the individual States. Both CGST and
SGST would be levied on the basis of the destination
principle. Thus, exports would be zero-rated, and
imports would attract the tax in the same manner as
domestic goods and services. Inter-State supplies
within India would attract an Integrated GST
(aggregate of CGST and the SGST of the
Destination State).
In addition to the IGST, in respect of supply of goods,
an additional tax of up to 1% has been proposed to be
levied by the Centre. The revenue from this tax is to be
assigned to the origin states. This tax is proposed to be
levied for initial two years or such longer period as
recommended by the GST Council.
It is expected that the Tax rate will be of the range
between 21 to 22%
Issue to timely refund of Tax will be addressed in
GST as it is internet based and can capture
information up to Invoice level.
Policy
Mr. G Ravindra Nath, Commissioner of Service Tax
highlighted various advantages of GST implementation
and said that it is based on self-assessment. Good GST
system will be with lesser exemptions, single rate and
timely refund mechanism. He suggested that Customs,
Income Tax and GST department should work together
with a unique identification number so that the Tax
system will become efficient.
Following were the major points raised during
interaction:
! Regarding IGST payable in final product for export
it is suggested that export can be made without
payment of taxes or option can be taken by making
payment / utilize the credit available and claim
refund.
! Each stage of sale tax needs to be paid on value
addition.
! There are huge number of VAT refund claims
pending with many state Governments. GST should
guarantee refund within 15 days and all eligible
refunds should be settled before shifting to GST.
!
!
!
!
Presently there are many difficulties in getting C
Form for interstate transactions. Whether it will
continue in GST also.
IGST needs to be paid on sale in this case and the
other party can take credit. As all are required to
register under GST unlike presently, there should not
be any problem.
Presently cotton yarn is exempted and synthetic yarn
is subject to 12% excise duty. What will be the
situation in GST when one makes polyester Cotton
Fabric? It is suggested that this product may be put
under lower rate of GST.
GST will try to be broad based and hence item wise
differential duty is not possible. However it is
informed that the GST council is working for having
solution and suggested the manufacturers to submit
their suggestion to FIEO for taking it up.
(Based on report obtained from FIEO).
Focus
USA
According to The World Factbook, GDP of USA is
$17.42 trillion and GDP per capita is $54,800. In 2014,
however, US GDP ran second to China's, when
compared on a Purchasing Power Parity basis; the US lost
the top spot, where it had stood for more than a century.
Trade and Economic:
Bilateral trade between India and the US reached US$
63.7 billion in 2013, registering a growth of about 1.7%
over the previous year. Indian exports accounted for US$
41.8 billion; whereas, US exports stood at US$ 21.9
billion. During Prime Minister's visit to the U.S. in
September 2014, the two sides set a target to increase
bilateral trade in goods & services to $500 billion.
Total textile export to the US during 2012-13 was
Rs.2,45,870 crore, which increased to Rs.2,96,935 crore
during 2013-14 and Rs.3,17,743 crore during 2014-15.
Export of Handloom products to the US was 0.54% of
total textile export during 2012-13 and decreased to
0.24% and 0.20% during 2013-14 and 2014-15
respectively.
Export of handloom products to the US was Rs.1225
crore (US$ 236 million) during 2011-12, which increased
to Rs.1344 crore (US$ 249 million) during 2012-13
registering growth of 10%. Export reached Rs.713 crore
(US$ 119 million) during 2013-14 registering negative
trend of 47% as compared to previous year. Export
further decreased to Rs.659 crore (US$ 110 million)
during 2014-15 registering negative trend of 8% as
compared to previous year. The US has always been the
leading importer of handloom products since 2009.
7
Focus
Earlier, Council participated on an exploratory basis in
Hometextiles Sourcing / Apparel Sourcing Expo, New
York, USA during 2012-13 to assess the importance of
the fair. Later, Council under National Handloom
Development Programme of O/o Development
Commissioner for Handlooms, Ministry of Textiles,
Government in India participated with 10 Member
Exporters in this fair during 2013-14 and 2014-15.
During 2014-15, participation in this fair resulted in
business generation of Rs.3.75 crore.
Council is repeating participation with 10 members in the New York Sourcing Expo to be held
from July 21-23, 2015 at New York.
Trends
SHOWCASE OF TANTU 2015
The Textile Design course at NIFT is designed to
produce dynamic design professionals who embrace
newer challenges, opportunities and technologies to
produce creative and responsible solutions in the field
of Textile Design. The four year programme prepares
students for domestic and International Home Fashion
and Apparel Industry. During the four year programme,
student learning is based on integration of design
concept with market requirements covering the entire
gamut of idea, design and product development. The
students are trained on weaving, printing, surface
ornamentation and digital design and are exposed to
Textile Design Studio setups, industrial units and craft
cluster areas around the country. A strong foundation
of eighteen weeks industry linked programme at the
end of the fourth year, prepares student for developing
market viable collections for domestic and International
market.
Textile Design professionals provide value to multiple
areas for the ever changing fashion business as Textile
8
Designers, colorists, trend analysts and stylists in design
studios, textile mills, export houses, fashion designers
studios, buying houses and Craft Sector.
This year 29 students graduated from the textile
design department from which 19 students designed
for the Indian exporter house and have developed a
range of coordinated home collections.
The 29 graduating students of the Department of Textile
design showcasing their graduation project that was
conceived in the industry in the form of a thematic
display presentation was held at NIFT, Chennai Campus
on 22-05-2015. Mr. Harmander Singh IAS, Principal
Secretary to Government of Tamil Nadu, Handlooms,
Handicrafts, Textiles & Khadi Dept inaugurated the
event.
TANTU 2015 gave each creative mind a platform to
present his/her collection. It is a final manifestation of
the student's aesthetic sensibilities, technical strengths
and dreams.
Trends
Graduation Project Guidelines :
The Graduation Project is an 18 weeks industry based
project, commencing during the month of November up
to March every year. In this period, students of textile
design develop collections of fabrics for apparel or home
fashion, on the specific brief given by the sponsoring
company.
The project demonstrates the application of various
academics inputs and its adaptation in real life industry
situation. The objectives of the project are:
! To gain comprehensive knowledge of processes
involved in designing and developing a collection in
the industry.
! Integrate application of classroom learning into a real
life market driven project.
! To gain maturity and confidence in understanding
mainstream commerce and constraints of the
industry while developing the collections.
Develop articulation and presentation skills.
Costing for the product category is integral part of
Graduation Project, to understand the consumer/
market segment better.
Minimum of two design collections (one collection to
have 8-10 designs each) is to be developed in the form of
actual prototypes by the end of the project. The exact
quantum of the collection and the product range may
vary according to the area of work i.e. Weave
development, Print development, Surface ornamentation
or combinations of one or more techniques.
!
!
(Exporters interested in providing platform to
students for industry linked programme and in turn
getting benefit of their design may give their details to
HEPC).
Source: NIFT, Chennai
9
News bits
a. No change in items Reserved for Production by
Handlooms
Myth: The Government of India is going to amend the
provisions under the Handlooms (Reservation of
Articles for Production) Act, 1985, in order to give
advantages to power looms.
Reality: Some requests were received for review of
items reserved for production by handlooms.
After a due examination of the matter, the Government
of India has decided not to make any change in the
Reservation Order issued under the 1985 Act, thereby
protecting the interests of handloom weavers.
On receipt of the requests, the matter was referred to a
committee under the chairmanship of Development
Commissioner (Handlooms). The committee was formed
with the mandate of looking into all relevant issues on the
subject and giving its considered views, without hurting the
interests of handloom weavers. Two meetings of the
committee were held - on 20.3.2015 and 10.4.2015.
The Ministry of Textiles came to the aforementioned
decision of maintaining status quo, after examining the
views of the committee as well as those of State
Governments.
Source : www.ministryoftextiles.gov.in
b. Foundation stones laid for Seven Handloom
Common Facility Centres in Varanasi
Foundation stones of seven Handloom Common
Facility Centres in Varanasi were laid on 13/05/2015 by
H. E. Governor Uttar Pradesh Shri Ram Naik, in the
presence of Minister of State for Textiles (I/C), Shri
Santosh Kumar Gangwar.
10
These Centres will provide infrastructural and other kinds
of support to groups of handloom weavers at block level.
Such facilities will include:
1. A go-down for storage of raw material and finished
products
2. An office with internet connectivity, for providing
benefits of IT-based interventions including benefits
of financial inclusion under Pradhan Mantri Jan Dhan
Yojana, to each handloom weaver
3. A room (with toilets), for accommodation of
designers/bulk buyers from urban areas who may like
to stay in the production area for a day or two
4. Required facilities for training in design, dyeing and
weaving in the form of common shed
5. Equipments, water supply, effluent treatment and bulk
processing facilities needed in the pre-loom sector
Source : www.ministryoftextiles.gov.in
c. Revival of handloom sector
A discussion on revival of handloom, with particular focus
on increasing earning of handloom weavers, was held at 6
PM on 17th May, 2015; all main stakeholders from
Government, industry and civil society participated. The
meeting was organized by the Office of Development
Commissioner (Handlooms), Ministry of Textiles, at India
International Centre, New Delhi. A booklet titled
“Increasing earning of the handloom weaver brothers and
sisters” (written by Dr. S. K. Panda and released by the
Uttar Pradesh Governor, in Varanasi on 13th May, 2015)
was distributed during the session. This was followed by a
panel discussion on the subject. The panel discussed the
need to excite the younger generation about handlooms,
the diversity of marketing opportunities available to
promote handlooms, the need for innovations in design
and weaving processes and the need for customer
education.
Source : www.ministryoftextiles.gov.in
d. Launch of revamped website of the Council
Handloom Export Promotion Council has revamped its
website-www.hepcindia.com. The revamped website is
being launched by Shri.Alok Kumar IAS, Development
Commissioner for Handlooms, Ministry of Textiles,
Government of India at 3.30 pm on Wednesday, June 3,
2015 at New Delhi.
Article
Handloom Cluster of Chanderi, Madhya Pradesh
Anu Sharma, Assistant Professor, Dept of Textile Design, National Institute of Fashion Technology,
New Delhi
The handloom industry of India is widely spread in
different parts of the country. This article focuses on
one such cluster of handloom industry called as
Chanderi. The fabric woven in this cluster is named on
the place of origin as Chanderi fabric. This article travels
through the history of Chanderi cluster and its present
status to mark the evolution of Chanderi fabric and its
cluster.
Demographics and social profile of Chanderi
Chanderi is a town of historical importance in
Ashoknagar District, Madhya Pradesh, India. It is
surrounded by hills, lakes and forests. This place is famous
for its Chanderi handloom fabric, which has also been
awarded Geographical Indicator under IPR laws by
Government of India. To fulfill the demand of fabric, this
place has a huge handloom cluster with Traders, Master
Weavers, Weavers, Warpers, Designers, Dyers and Yarn
Suppliers working together.
The total estimated population of Chanderi is approximately
30,000 with three main communities in handloom cluster i.e.
of Muslim, Hindus and Jains. In Chanderi most of the people
are practicing occupation other than agriculture, out of which
handloom weaving is one of the major profession for almost
60% of the population. As Professor Sharma states in his
socioeconomic study of the town, “Chanderi is an excellent
example of a pre-industrial city with a high degree of "protoindustrialisation”. (Sharma K.L., 1999, Chanderi 1990-1995,
Publication de l'Institut de Civilisation Indienne, Fascicule 68,
Diffusion de Boccard, Paris)
Chanderi cluster comprises 3,659 looms in working
condition and 18,000 people are directly or indirectly
dependent on handloom industry for their living. Around
1,145 working looms are in the Cooperative sector and
2,514 working looms are out of Cooperative sector with
annual production of Rs. 15 crore.
Features of Chanderi fabric
Chanderi fabric has evolved over the last few centuries as a
centre of fineness for weaving gold embellished fabrics
like saris, stoles and dress materials for elite class and
designers. Chanderi fabric is very strong in construction
and is fast in colors. Chanderi has been initially producing
three kinds of fabric:
1. Pure silk - where the warp as well as the weft is woven
in 13/15 denier silk.
2. Chanderi cotton - where the warp and weft are 100s or
120s cotton. The Chanderi muslins have been known to
be superior to Dacca muslins because of the softness
and feel; this was traditionally achieved through the use
of koli kanda a local wild onion that was used for sizing.
Today this quality has been discontinued.
3. Silk cotton - the weavers deftly combine 13/15-denier
warp with 100s/120s cotton in the weft.
The figured effects are produced with the help of an extra
weft design, which is a special feature of Chanderi.
Initially zari was used for creating the figured motifs.
History of Chanderi fabrics
The history of Chanderi fabrics can be traced back to
1890 when there was a great setback to the handloom
industry of India. The hand spun yarns were replaced
by mill spun yarns, which lead to a major change in the
handloom industry leaving the hand spinners with
fewer jobs. In the early 19th century, Chanderi fabric
got the patronage of the royal family of Scindia, which
set up training centers for interventions as a result of
which gold thread motifs came into existence in the
main body of the cotton muslin sari for the first time.
In mid 19th century silk yarn procured from
Karnataka was introduced in Chanderi and thus first
silk saris came into existence. After independence in
1950s Indian government realized the dying craft of
handloom industry and therefore introduced many
new schemes and policies related to training for the
development of these handloom clusters. One such
revolution was introduction of jacquard and dobby
looms for Chanderi cluster in place of traditional pit
looms with throw shuttle. This increased the
productivity of the fabric and so the wages of the
weavers and along with other stakeholders involved in
11
Article
the cluster. A major change came in 1970s when a new
intervention was executed with silk warp and cotton
weft. The fabric so produced had qualities of both silk
and cotton which lead to discontinue weaving of pure
cotton or silk fabrics.
Products of Chanderi
The products of Chanderi originally had Gold thread as
the medium of figured motifs and the categories ranged
from Saris for the elite and the royal families of Indore
and Gwalior, to 'Safas' or long-scarf for weddings
and Cotton 'Pagris' (turbans) that were adorned by the
royalty themselves. However in the current scenario
Chanderi fabric has now ventured its design and quality
from apparel to home fashions. The fabrics are being
used world widely in creating apparels like Indian wear,
indo western wear and western wears along with
12
cushions, curtains and table linens for Indian and
western homes.
Marketing Channels of Chanderi Products
The marketing channels of the Chanderi cluster shows
the role of co-operative societies, master weavers and
traders in the whole marketing circle of Chanderi
products. Chanderi cluster is one such cluster, which has
enjoyed support from royal families as well as Madhya
Pradesh government organizations, however still there
is a huge need for weavers to be aware about various
marketing channels and ways of selling their products.
With increasing demand this fabric has a tough
competition with other handloom fabrics and therefore
strong marketing promotion can give it its due respect in
national and international market.
Article
Converting Digital Image / Paper Painted Design to Fabric
A.Mathivanan, Junior lecturer (Tex), IIHT, Salem
The overseas market requires different patterns, colour
combinations, construction of fabrics, materials, etc. to
suit different seasons. Same fabric patterns of one season
may also be preferred in different construction, material
and colour combination for another season by the same
importer or by another importing country. The buyer
either sends paper print outs of CAD (Computer Aided
Designs) or old sample swatches with instruction for
change in construction, colour combos, materials etc. for
development of desk loom sample.
The desk loom sample developed by the manufacturer should
exactly match with the pattern of CAD paper print out or
sample swatch sent by the buyer in size with necessary change
in construction, colour, etc. if any. So the task of matching the
pattern lies with the manufacturers with all limitation and
hurdles in production techniques adopted in that area. The
manufacturers in turn rely on the designer who read the
pattern in terms of ends and picks from the paper print or
swatch, for which, the designer should have fair knowledge
about the construction of the fabric shrinkage after washing
or finishing, production limitation, etc.
The buyer expects the washed sample with permissible
shrinkage to match with the paper print out or swatch with
+5% allowances. The constructional particulars of some
of the popular varieties of fabrics manufactured for
export garment are given in the Table I which will help to
finalize the threads in the pattern. Please note that the
following illustrations and calculations are meant for
garment fabric items, however, the same calculation
methodology (excepting the construction) may more or
less be applicable for other varieties of fabrics as well.
It may be noted from the Table-I that the shrinkage in weft
way is less in case of plain and more in case of twill &
other dobby designs such as honey comb, huck-a-back,
diamond, diaper, etc., or combination of these weaves will
have similar effect like twills. The increase in ends/inch of
fabric may also be noted as it is the basic language for
reading the pattern. The behavior can be summarized as
shown in table - A.
The method of pattern reading is explained by taking a
check design shown in fig. An inch scale graduated in 32
divisions per inch is taken and the measurement of each
colour in divisions of 1/32 of an inch, is recorded for
one full repeat as given at column (i) Table II.
Then the constructional details of the fabric particularly
ends/inch after washing is taken and divided by 32 to get
no. of ends, in washed fabric, for 1/32 on an inch i.e. in
other words the washed fabric will have ends/” ends in
32
1/32 of an inch.
Now let us finalize the pattern for a
2/40th x 20th
Ends 60 x 56 picks 44” - 45”width
Twill checks cotton fabric.
1/32 of an inch will have 60/32 = 1.875 ends.
Multiply the divisions recorded in the first column with
the value calculated above (1.875) and record the product
in the second column.
nd
Before rounding off the ends recorded in the 2 column
total no.of ends per one repeat of the pattern in calculated
Table - A
Ends/inch (Reed)
Weave
Increase in ends/inch
after washing.
48 and above
Plain
4-8
48 and above
Twill & Other Weaves
6-8
36-48
Plain
4-6
36-48
Twill & Other Weaves
6-8
Below 36
Plain
2-4
Below 36
Twill
4
13
Article
by multiplying total no.of divisions per repeat x 1.875 i.e.
Weavers' Card
50 x 1.875 = 94.
Count of Warp : 2/40s cotton Reed on loom : 52s 2/dent
Reed width 49.0 + 0.5”
Finally the figures in the column (2) are rounded-off to the Count of Weft : 20s cotton
selvedge (4/dent)
nearest even number. When the pattern has fine line stripes, it
Picks / inch: 56
can be rounded-off to the nearest number irrespective of
No. of repeats of pattern:
whether it is odd number or even number. While rounding- Total no. of ends: 2600
off the ends care should be taken to see that the pattern is not The following are a few tips for efficient reading of the
affected and the total no.of ends per repeat of pattern is not pattern.
exceeded. Completed pattern is given at column (3) the total a. Start reading the pattern from a colour where it is
ends +5% of which tally with the total ends per pattern.
bigger than other colours
Weft pattern is also completed as given in Table-III by b. Preferably, start reading the pattern from a light colour.
taking the PPI in the washed cloth i.e. 56 in the cloth. c. When a particular colour is too big (about 3-4”) it can
The increase in picks/inch in washed fabric is negligible
be suitably divided into two halves and added to the
and so it is not taken into consideration. While
beginning and end.
completing the column (3), the figures are rounded-off
d. When the patterns are too big say 3 to 4 full patterns
to only even number as the decentralized power loom
per width, it should be positioned in such a way (2-3”
industry is equipped with changing shuttle boxes at one
from selvedge) that the full repeats are not disturbed
side of the loom only. Finally the pattern is completed
during pattern cutting for Garment making.
with the following details for the weavers' card.
TABLE I
Variety
Ct. of
Warp
Ct. of
Weft
Weave Reed
Picks ends/” Ends/' Reed
on loom /inch before
After
width
washing washing in
inches
i) Plain
Check
2/40s
Cotton
2/40s
Cotton
or 20s
cotton
Plain
52
56
54
58
49.5”
47.5
44-/45”
ii) Twill 2/40s
check
Cotton
2/40s
cotton
or 20s
cotton
2/2
Twill
52
56
56
60
49.5
47
44-45
iii) 2/17 2/17NF
twill
cotton
check
20s
cotton
Twill
36
40
38
42
49.5
47.5
44-45
iv) 2/60 2/60s
Plain
check
30s
cotton
or 40s
cotton
Plain
60
64
62-64
66-68
49.5
47.5
44-45
v) Seer
Sucker
30s
Plain
cotton
or
40s
cotton
60
64
62-64
66-68
49.5
47.5
44-45
14
2/60s
cotton
2/40s
cotton
(sucker)
Cloth
width
in inches
before
washing
Cloth
width
in inches
after
washing
Article
TABLE II
(Warp Pattern)
Size of the repeat (warp) :
Total No of Threads
:
50 divisions
50 x 1.875 = 93.75 or 94
Colour
Division
No. of Threads
Rounded Off
Olive
2
x 1.875
3.75
4
White
3
x 1.875
5.625
6
Pink
10 x 1.875
18.75
18
White
3
x 1.875
5.625
6
Olive
2
x 1.875
3.75
4
White
14 x 1.875
26.25
26
Yellow
2
x 1.875
3.75
4
White
14 x 1.875
26.25
26
Total
50
94
TABLE III
(Weft Pattern) Total No. of Picks = 50 x 1.75 = 87.5 or 88
Size of the repeat (warp) :
50 divisions
Total no.of Threads
56
32 = 1.75
:
50 X 1.75 = 87.5 or 88
Colour
Division
No. of threads
Rounded off
Olive
2
x 1.75
3.5
4
White
3
x 1.75
5.25
6
Pink
10 x 1.75
17.5
18
White
3
x 1.75
5.25
6
Olive
2
x 1.75
3.5
4
White
14 x 1.75
24.5
24
Yellow
2
x 1.75
3.5
4
White
Total
14 x 1.75
50
24.5
24
90
15
Article
In order to maintain the appearance of the Pattern and to suit single side drop box loom the pattern is adjusted on 90
pick. i.e. (88=2)
If a Pattern has to be re-written from an existing sample of fabric for another count and construction, the existing fabric
has to be treated as paper design and the same procedure as explained above may be followed for witting the pattern.
Export Data Analysis
Export of handlooms - an analysis
Export of handloom products for the FY 2014-15 was Rs.2246 crore / US$ 374 million as against Rs.2233 crore / US$
372 million during the FY 2013-14 thereby registering growth of 0.60%. Export which recorded Rs.2233 crore / US$
372 million during FY 2013-14 had declined when compared to FY 2012-13 when it was Rs. 2812 crore / US$ 521
million. The overall trend witnessed during the fiscal years 2012-13, 2013-14 and 2014-15 is decline of 21% during
2013-14 and increase of 0.60% during 2014-15.
Table: Export of handloom products for the year 2014-15 vis-a-vis 2013-14
2013-14
S.No.
Cate
gory
2
3
16
50079010
Fabrics
1
HS Code
Products
Units
2014-15
Qty
Value
INR
Crore
Qty
Value
INR
Crore
%
growth
in
2014-15
Other Woven Fabrics Of
Handloom
SQM
90463
4.22
90555
4.87
15.41
52084121
Sarees Of Handloom
SQM 145937
3.12
11975
0.19
-93.98
52084921
Real Madras Handkerchiefs
Of Handloom
SQM 347764
9.12
241009
5.36
-41.25
Export Data Analysis
2013-14
S.No.
Cate
gory HS Code
Products
Units
2014-15
Value
INR
Crore
Qty
Qty
%
Value growth
in
INR
2014-15
Crore
52085920 Sarees Of Handloom
SQM
32495
0.39
18927
0.34
-12.27
5
52091111 Dhoti,Handloom
SQM
126868
1.57
48020
0.90
-42.58
6
52091112 Saree,Handloom
SQM
50563
1.38
79765
1.77
28.19
7
52091113 Casement,Handloom
SQM
-
-
400
0.01
-
52091114 Sheeting (Takia, Leopard
Cloth and Other than
Furnishing ), Handloom
SQM
44
0.001
9529
9
52091119 Other Fabrics,Handloom
SQM 3556458
33.88
9334306
73.58
117.20
10
52095111 Lungis Of Handloom
SQM
783869
5.96
1440105
11.48
92.41
11
58021950 Terry Towelling and smlr
Terry Fabrics, Handloom
SQM
-
-
150
0.01
-
Sub-Total
5134461
59.63
11274741
98.59
65.32
57024230 Carpets, Rugs And Mats
Of Handloom
SQM 3102287 163.75
2445190 125.69
-23.24
57050024 Cotton Durries Of
Handloom (Including
Chindi Durries, Cotton
Chenille Duries, Rag Rug
Durrie Printed Durries,
Druggets)
SQM 9875566 240.39
8981563 205.02
-14.71
57050042 Mats And Mattings
Including Bath Mats,
Where Cotton Predominates
By Weight, Of Handloom,
Cotton Rugs Of Handloom SQM 28103453 544.47 29898763 583.84
7.23
8
Fabrics
4
12
15
16
Clothing
Accessories
14
Floor Coverings
13
Sub-Total
Madeups
18
41325516 914.55
-3.59
62141030 Scarves Of Silk, Handloom
NOS 2597571
54.58
3216469
68.03
24.62
62160020 Gloves , Mitters And Mitts
Of Handloom
PRS 1701572
12.13
1603048
14.06
15.95
4299143
66.71
4819517
82.09
23.05
63022110 Other Bed Linen, Printed:
Of Cotton, Handloom
KGS 2185568
87.53
2230579
96.63
10.39
63025110 Other Table Linen: Of
Cotton, Handloom
KGS 1810467
58.51
1176406
39.26
-32.90
Sub-Total
17
41081306 948.61
0.10 17560.53
17
Export Data Analysis
2013-14
S.No.
Cate
gory HS Code
19
20
21
Products
Units
63026010 Toilet Linen & Kitchen
Linen, Of Terry Towelling
Or Similar Terry Fabrics,
Of Cotton, Handloom
KGS 2603563
63029110 Other Bed Linen, Table
Lenen, Toilet Linen,
Kitchen Linen: Of Cotton,
Handloom
63071030 Floor Cloth & The Like
Of Cotton, Handloom
24
25
26
27
28
29
30
Madeups
23
Qty
75.38
1897841
-13.91
KGS 3310197 107.44
2859723 108.15
0.66
KGS 1112450
1040326
24.42
11022245 353.29
63041940 Bed Sheets And Bed Covers
of Cotton, Handloom
NOS 2725680
63049211 Counterpanes of Handloom NOS
45667
37.39
53.10
9204875 346.33
-1.97
99.51
2505852
87.41
-12.16
0.68
131667
2.39
249.84
75.19 10083596
51.42
-31.61
63049221 Napkins of Handloom
NOS 13482282
63049231 Pillow Cases And Pillow
Slips of Handloom
NOS 6821464 113.41
3121178
66.53
-41.34
63049241 Table Cloth And Table
Covers of Handloom
NOS 4758036 134.04
7392731 216.71
61.68
63049281 Cushion Covers of
Handloom
NOS 12526559 174.50 15061467 236.37
35.45
63049291 Other Furnishing Acricles
of Handloom
NOS 13923153 187.77
63049991 Other Furnishing Articles
of Silk: Handloom
NOS
51858
5.72
48994
3.43
-40.07
63049992 Other Furnishing Articles
of Wool: Handloom
NOS
251362
14.04
126173
9.25
-34.10
54586061 804.86 47724023 804.92
0.01
Sub-Total
Grand Total
18
Value
INR
Crore
%
Value growth
in
INR
2014-15
Crore
64.89
Sub-Total
22
Qty
2014-15
2233.11
9252365 131.41
2246.48
-30.02
0.60
List of importers of Home Furnishings
1. Ideal Home Range Uk Ltd
1 Gloucester Streetpainswick
Gloucestershire Zipcode : Gl6 6qn
United Kingdom
Telephone : 01452 814 330 Fax : 01452 814 331
E-Mail : [email protected]
Website : www.idealhomerange.com
2. J B Textile Ltd
Sbc House, Restmoor Way, Wallington
Surrey Zipcode : Sm6 7ah United Kingdom
Telephone : 44-20-82552020
Fax : 44-20-87334198
E-Mail : [email protected]
Website : www.justinaclaire.com
3.
Indes Wohntextil Gmbh
Sdstr. 49
Gummersbach Zipcode : 51645 Germany
Telephone : 2261-8058-700 Fax : 22-61-8058-600
E-Mail : [email protected]
Website : www.indes.de
4. Kruunukaluste oy
Taninkatu 2
Tampere zipcode : fin-33400 Finland
Telephone : 358-3-31423100
Fax : 358-3-31423111
Website : www.kruunukaluste.fi
5. Kinnasand interieur-textile
Danziger str. 6,
Westerstede Germany
Telephone : 49-44885160 Fax : 49-448851616
Website : www.kinnasand.com
6. Johan Van Den Acker Textilefabriek B.V.
Schoolstraat 18,
Gemert Zipcode : 5421 Kt Netherlands
Telephone : 31-492-361321 Fax : 31-492-366028
E-Mail : [email protected]
Website : www.vandenacker.nl
7. Jm Evensen
P. O. Box 74, Slemdal
Oslo Zipcode : N-0710 Norway
Telephone : 47-23222120 Fax : 47-23222130
E-Mail : [email protected]
Website : www.jmevensen.no
8. Juan Campos S. A.
Av. Elx 40 Bajo
Alcoy Zipcode : 03801 Spain
Telephone : 34-965540544 Fax : 34-965544174
Website : www.juancampos.com
9. Interior Plus Ab
Grev Turegatan 57
Stockholm Zipcode : 114 38 Sweden
Telephone : 46-8-6653118 Fax : 46-8-6653119
E-Mail : [email protected]
Website : www.interiorplus.com
10. Kannwin Ltd
16 Bordesley Street, Digbeth
Birmingham Zipcode : B5 5pl United Kingdom
Telephone : 0121 643 7818 Fax : 0121 643 9462
E-Mail : [email protected]
Website : www.kannwin.com
Disclaimer: Council is not responsible for the credit worthiness of the importers.
19
Calendar of Events
REPEAT EVENTS
S.No Name of the event
Date
1
Hong Kong International Home
20-23rd April 2015
Textiles & Furnishings Fair, Hong Kong
2
Hometextiles Sourcing/ Apparel Sourcing 21-23rd July 2015
Expo, New York, USA
3
26th India Home Furnishing Fair,
22-24th July 2015
Osaka, Japan
4
Intertextile Shanghai Hometextiles,
26-28th August 2015
Shanghai
5
WHO's NEXT, Paris, France
4-7th September 2015
6
7
Remarks
Completed
Hometextile & Fashion
Accessories - Registration Open
Circular issued
- Registration Open
Registration Open
For Fashion Accessories
- Registration Open
Registration Open
4-8th September 2015
31st October 4th November 2015
16-18th November 2015
Registration Open
Registration Open
9
10
Maison & Objet, Paris , France
China Import & Export Fair
(CANTON ), China
Australian International Sourcing Fair,
Melbourne, Australia
Heimtextil, Frankfurt, Germany
Domotex, Hanover, Germany
12-15th January 2016
16-19th January 2016
Registration Open/Circular issued
Registration Open
11
WHO's NEXT, Paris, France
22-25th January 2016
12
6th India International Handwoven Fair,
Chennai, India
9-11th March 2016
For Fashion Accessories
- Registration Open
Registration Open
8
NEW EVENTS
S.No Name of the event
Date
13
Textil House Fair, Sao Paulo, Brazil
13-16th August 2015
14
IHGF, Greater Noida- India
14-18th October 2015
15
Home & Tex , Istanbul, Turkey,
19-22nd November 2015
16
Hongkong Fashion Week, Hong Kong
18-21st January 2016
17
AF L'artigiano de Fiera, Milan , Italy
18
Singapore International Indian
Shopping Festival, Singapore
19
20
B2C EVENTS
5-13th December 2015
24-27th September 2015
STANDALONE SHOW
Standalone Show in LAC
To be finalized
Standalone show in Eastern Europe
To be finalised
Remarks
Registration Open
Registration Open
Registration Open
For Fashion Accessories
- Registration Open
B2C event. More suitable for
Cash & Carry - Registration Open
B2C Event - Registration Open
Registration Open
Registration Open
Fairs listed in Sl. No.1, 3, 9 &12- are already approved. Approval is awaited for all other remaining fairs.
20