The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 17 NOVEMBER, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-11-16

Item

Price

Unit

Fluctuation

Date

PSF

1057.44

USD/Ton

-0.88%

11/16/2015

VSF

2274.91

USD/Ton

-0.07%

11/16/2015

ASF

2035.65

USD/Ton

0%

11/16/2015

Polyester POY

1010.37

USD/Ton

-0.77%

11/16/2015

Nylon FDY

2471.02

USD/Ton

0%

11/16/2015

40D Spandex

5255.82

USD/Ton

0%

11/16/2015

Nylon DTY

5848.86

USD/Ton

0%

11/16/2015

Viscose Long Filament

1259.04

USD/Ton

-0.62%

11/16/2015

Polyester DTY

2290.59

USD/Ton

-0.34%

11/16/2015

Nylon POY

2212.15

USD/Ton

0%

11/16/2015

Acrylic Top 3D

1066.85

USD/Ton

-0.73%

11/16/2015

Polyester FDY

2729.89

USD/Ton

0%

11/16/2015

30S Spun Rayon Yarn

2839.71

USD/Ton

0%

11/16/2015

32S Polyester Yarn

1694.41

USD/Ton

-0.92%

11/16/2015

45S T/C Yarn

2682.82

USD/Ton

0%

11/16/2015

45S Polyester Yarn

3012.29

USD/Ton

0%

11/16/2015

T/C Yarn 65/35 32S

2588.69

USD/Ton

0%

11/16/2015

40S Rayon Yarn

1882.68

USD/Ton

-0.83%

11/16/2015

T/R Yarn 65/35 32S

2306.28

USD/Ton

0%

11/16/2015

10S Denim Fabric

1.10

USD/Meter

0%

11/16/2015

32S Twill Fabric

0.93

USD/Meter

0%

11/16/2015

40S Combed Poplin

1.00

USD/Meter

-0.78%

11/16/2015

30S Rayon Fabric

0.75

USD/Meter

0%

11/16/2015

45S T/C Fabric

0.75

USD/Meter

0%

11/16/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15665 USD dtd.16/11/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Government notifies revised all industry rates of Duty Drawback and other Duty Drawback related changes effective from 23rd November, 2015

The Central Government has notified the Schedule of revised All Industry Rates of Duty Drawback effective from 23rd November, 2015.  These revised rates are based on average incidence of Customs and Central Excise Duties and Service Tax related with the manufacture of export goods and involve substantial total drawback for exporters. Apart from the rate changes, many new items have been included to better differentiate export products with higher duty incidence and also to address classification issues. A provision has been made to pay provisional drawback to exporters soon after export in case of certain exports made under claim for brand rate of duty drawback. To expeditiously address exporters’ concerns, if any, arising from the new Schedule of Rates, feedback from Export Promotion Councils shall be taken into account by an Expert Committee that shall make further recommendations in January 2016 to the Government.

SOURCE: PIB

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Submission of shipping bills not necessary under MEIS scheme

Under the Merchandise Exports from India Scheme (MEIS), are we required to submit copies of shipping bills, e-BRC, proof of landing, etc., for registration of the duty credit scrip with the Customs?

Public Notice no. 58/2015-16 dated August 10, 2015 issued by the Customs at JNPT, Nhava Sheva deals with registration of duty credits issued under the MEIS scheme. It does not mention anything about submission of such documents for registration of the MEIS duty credit scrips.

We have submitted our application for fixation of brand rate to our Central Excise authorities. They have rejected the application on the grounds that our application is time-barred. Do we have any recourse?

As per Rule 6 of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, you must submit your application for fixation of brand rate within three months from the relevant date (usually the date of export). If you are late, you can pay a fee of Rs 1,000 or 1% of the FOB value of exports, whichever is less, and seek an extension of a further three months. You can ask the Commissioner to grant further time of six months by paying a fee of Rs 2,000 or 2% of the FOB value of exports, whichever is less. Please refer to the proviso to the said Rule 6.

As traders, can we obtain advance authorisation and import the goods free of duty and re-sell them in the domestic markets?

No. Advance authorisation is available to manufacturers or merchant exporters tied to supporting manufacturers. The imported goods are subject to ‘Actual User’ condition. They cannot be sold in the domestic market. They must be used in factory of the manufacturer or supporting manufacturer.

Where can we find instructions for maintaining Central Excise records in electronic form?

You may refer to Part III of Chapter 6 of the CBEC’s Central Excise Manual of Supplementary Instructions for electronic maintenance of records and preparation of returns and documents.

We are a 100% EOU. The audit department has now raised an objection regarding payment of basic custom duty by using our Cenvat Credit on sales to domestic tariff area (DTA) in February 2009. Can we take a plea that we have destroyed the records because as per Para 2.1 (vi) of Chapter 6 of the CBEC’s Central Excise Manual, we are required to preserve the records  only for a period of five years immediately after the financial year to which such records pertain?

Yes. You can also say that what the EOU pays on DTA sales is excise duty and not customs duty. You may refer to the judgment in the case of Vikram Ispat [2000 (120) ELT 0800 (Tri-LB)], wherein it is held that the nature of the duty levied on goods from a 100% EOU is excise duty and nothing else, whereas for determining the quantum of duty the measure adopted is duty leviable under the Customs Act as held by the Supreme Court in many cases.

SOURCE: The Business Standard

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Extend interest subsidy benefit to exporters: Assocham to Govt

Industry body Assocham today asked the government to provide interest subsidy benefit to select sectors in order to boost the country's exports. The main reasons for decline in exports are high cost of credit, appreciation of rupee against euro and steep fall in crude oil prices, besides global demand slowdown, it said in a statement. It also said that India's export competitiveness has been eroded due to steady real appreciation of rupee. Interest rate subvention scheme for same select sectors need to be announced at the earliest to boost exports, it said. "Presently, micro, medium and small enterprises sector gets loans at 12-13 per cent. After subvention, this would come down to 9-10 per cent. However, India's competitors get it at around 5 per cent," the chamber said.

Besides MSME, other sectors where the interest subsidy benefits could be extended include leather, handicrafts, engineering and textiles. Further, it said that given the current scenario, it could be difficult to achieve the export target of USD 900 billion by 2019-20. Transaction costs are also high for exporters which need to be looked at, Assocham said. "Cumbersome paperwork, delays caused by regulatory agencies and other bureaucratic red tape hinder trading processes, causing unnecessary delays and costs to traders," it added.

SOURCE: The Economic Times

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Exports fall for 11th straight month, down 17.53% in October

India’s merchandise exports fell for the eleventh consecutive month in October. Exports contracted 17.53 per cent to $21.35 billion in October, against $25.89 billion in October 2014, according to data released by the commerce ministry on Monday. As against this, during the 2008-09 global financial meltdown the decline was for nine months in a row.This has prompted the government to announce export-incentive measures for the second time in a fortnight. After coming out with a revamped Merchandise Exports from India Scheme last month, the finance ministry on Monday raised the duty drawback rates — reimbursement of duties paid on imports used for exports — particularly for engineering products.While exports of high-value petroleum products declined 55 per cent in October, engineering products by 6.3 per cent, and gems & jewellery by 7.56 per cent, only 21 items posted contraction in outbound shipments against 24 in September. Also, the decline in exports decelerated from the 20 per cent fall in August and September each.As dollar receipts dwindled, what was a bit comfortable for India was that imports, too, dropped by 21.15 per cent to $31.12 billion in October against the year-ago period, when it was $39.46 billion.

Exports fall for 11th straight month, down 17.53% in October This meant that trade deficit narrowed to $9.77 billion in October against $10.48 billion in September. This was the first time the deficit came down to a single digit in the current financial year till October.Imports of oil, a fifth of total inbound shipments, were down 42 per cent at $76.8 billion in October against $44.5 billion in the year-ago period. Non-oil imports fell 9.9 per cent at $24.3 billion against $26.9 billion. This is often taken as a proxy to domestic demand in the economy.Non-oil non-gold imports are now considered a true indicator of such demand. In line with overarching trends, gold imports, too, fell 59.55 per cent in October to $1.70 billion, down from $4.20 billion in October 2014. This was despite the festival of Diwali falling in November this year against October last year. As such, non-oil non-gold imports declined 8.5 per cent at $22.6 billion in October against 5.2 per cent contraction at $23.7 billion in September. This also showed economic recovery will take time.For the first eight months of the current financial year, exports declined 17.6 per cent at $154.29 billion. With only four months to go for this financial year to be over, touching the $300-mark would a remote possibility, feared the Federation of Indian Export Organisations president S C Ralhan. Even at $300 billion, exports would contract three per cent in 2015-16 compared to $310 billion in 2014-15.For the April-October period, India’s cumulative imports were at $23.20 billion. This was a 15.17 per cent drop from $27.35 billion, which was the cumulative figure for the same period last year.As a result, trade deficit narrowed to $77.76 billion, cumulatively, for months leading up to October. The corresponding figure for the previous year was $86.26 billion.

SOURCE: The Business Standard

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Revised provisions for procurement from MSEs

Government of India has introduced a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which is notified under MSMED Act 2006.  Under the Policy every Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum of 20 per cent of their total annual value of goods or services from Micro and Small Enterprises.

Under the provision 6 of the Policy it is mentioned that: (1) In tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than aMicro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply up to 20 per cent of total tender value. (2) In case of more than one such Micro and Small Enterprises, the supply shall be shared proportionately (to tendered quantity). The phrase “up to” is substituted with “at least”.

The revised Provision 6 of the Policy should be read as: - (1) In tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than aMicro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply at least 20 per cent of total tendered value. (2) In case of more than one such Micro and Small Enterprises, the supply shall be shared proportionately (to tendered quantity).

SOURCE: PIB

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Indian apparel should be competitive for $6 billion Australian market: Manika Jain

Indian garments have to be more competitive in terms of quality and pricing to tap the $6-billion Australian market dominated by China, Consul General of India here said. Inaugurating the India Pavilion at the International Sourcing Expo Australia 2015, Manika Jain said the Chinese garment industry has a huge presence in the Australian market. "Indian garments have to be more competitive in terms of quality and pricing compared to Chinese ones," she said. For this, Indian exporters should do value addition to their products and focus on branding, thus creating a niche for their items in the Australian market, Jain said.

According to Apparel Export Promotion Council ( AEPC) officials, of the total about $6 billion Australian garment imports, India's share is merely about 3 per cent while China enjoys a major chunk of it. More than 65 Indian exhibitors, who have participated in the three-day long fair, are showcasing a wide variety of garment, accessories, home furnishings, leather goods, sportswear and other products. "This time the exhibitors have improved the quality of their products compared to the last time. I am sure that Indian companies which have participated in the fair so far have gained considerable and valuable insights into the Australian market," Jain said, noting that the Indian products showcased here are in sync with Australian fashion and taste. The number of buyers are expected to be more this year. "Over 3,000 buyers have registered this time compared to 2,600 last year. In the last few years, Australian interest in the Indian products has phenomenally grown," Federation of Indian Export Organisations (Fieo) Director General Ajay Sahai said.

Exporters want to explore new markets like Australia, amidst the demand slowdown in the European market. Fieo Director Ashish Jain said, "Exhibitors are really upbeat about this market as they see good opportunities for expanding their business here." Fieo, which has participated in the exhibition for the second time, is an apex body of all Indian export promotion organisations.

SOURCE: The Economic Times

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India for non-discriminatory global trading system

Seeking a transparent and non-discriminatory global trading system, Prime Minister Narendra Modi today said all elements of the WTO's Bali pact should be fully implemented.In his intervention at the G-20 working lunch on 'Trade and Energy', Modi said the global trade slowdown was a major concern and prospects for rise in trade momentum remain bleak.Stating that efforts to accelerate global economic growth will help trade, he said a transparent, equitable, non-discriminatory and rule-based global trading system is essential for the world economy."It is absolutely vital that the Doha Development Round achieves its goals. All elements of the Bali package should be implemented fully. We look forward to a successful outcome at the Nairobi Meeting in December," he said.

The World Trade Organisation's (WTO) 10th ministerial meeting is scheduled from December 15 to 18 at Nairobi in Kenya.In the last meeting at Bali in Indonesia, the WTO members agreed on the trade facilitation pact and foodgrain stockpile for food security purposes.As regards regional trade agreements, Modi said, such pacts "should not lead to fragmentation of the global trading system and should support a more liberalised multi-lateral trade regime."He also said that increasing the role of small and medium enterprises in the global value chain will help expand global employment.Balanced and sustained global economic growth also needs increase in labour mobility and skill portability, the Prime Minister added.On energy sector, Modi said, the grouping of world's biggest economies (G-20) should increase research and development in clean and renewable energy and reduce cost to make it affordable and accessible for all.

SOURCE: The Business Standard

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Indo Rama confident to register profits next quarter

Indo Rama Synthetics Limited (IRSL), known as India's largest polyester manufacturer, which has a plant at Butibori industrial estate, the first investment in that area and employs a workforce of 3,000 at the Butibori plant has been in the red for last three years, posted losses in the quarter ending September too. The company has reported a net loss of Rs43.90 crore as against Rs16.02 crore in the same period the previous year. The revenue was down toRs 632.21 as compared to Rs730.86 crore in the corresponding period due to falling prices of crude apart from sluggish demand for its products and dumping by China.

Currently, the company's plants, including that in Butibori, are being operated at 60% capacity. Efforts will be taken to jack up utilization to 80% of the installed capacity in the next quarter, said chairman OP Lohia. The company could successfully manage to operate without job cuts so far. But no new jobs could be created due to the slump.Chairman OP Lohia said that the company is finally confident of turning around in the next quarter. Though the industry needs some support from the government, the company hopes to register profits on its own. When it was pointed out that falling crude prices should benefit a polyester-maker, since it is raw material for the industry, Lohia said that volatile rates have led to inventory losses. The rates have gone much lower than the level at which Indo Rama had sourced its supplies, affecting its pricing calculations. However, with crude rates stabilizing, at $40 a barrel, it is expected that the inventory losses will be reigned in. The company has stepped up its production, which can be seen in the terms of volumes going up. Though turnover in money terms is down, the physical production has been at 80,693 tonnes as against 73,492 tonnes in the same period last year. The capacity for draw texturized yarn (DTY), a high value added product, has also been expanded during the quarter, said Lohia.

The increased domestic availability of PTA, a raw material, will also help change the tide. However, dumping can be a major concern for smaller units, though on the brighter side there have been reports of Chinese units also facing losses due to low international demand. As there is no export incentive, which can otherwise make Indian industries competitive. The government needs to support the industry by reducing the excise duty to zero for polyester fibre in lines with natural fibre. The government should also impose an import duty to counter Chinese dumping.

SOURCE: Yarns&Fibers

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Brazil keen to further strengthen trade ties with India

Brazil today called for expanding a trade pact with India by adding more products such as frozen chicken (whole) and processed soyabean in the tariff agreement and also stressed on technology transfer and investment in agriculture research. Brazil is also keen to export ethanol and milk products to India and boost shipments of edible oils. India and MERCOSUR, comprising Brazil, Argentina, Uruguay and Paraguay, already has a preferential trade pact. "We would like to expand tariff agreement," said Katia Abreu, the Brazilian Minister of Agriculture, Livestock and Food Supply. She said that existing agreement is "timid" in field of agriculture and there is a need to expand the base from the current about 450 products to 2,500 products.

India-MERCOSUR preferential trade agreement (PTA) came into effect from June 1, 2009. The major sectors covered in the offer list under the PTA include meat, chemicals, leather goods, iron and steel products, machinery items and electrical machinery. India and Brazil have a bilateral trade of USD 11.36 billion. "We can bring frozen chicken (whole) to India. We face difficulty in chicken," Abreu said at a FICCI conference. Speaking on the sidelines, the minister stressed on easing the rules for trade apart from improving the trade agreement. "We would like to expand our relations well beyond the area of just tariff. Most important is to improve and better rules," Abreu said. Brazil has been emphasising with all the countries to harmonise and make rules easier, she said.

On trade agreement, Abreu said: "We currently have about 450 products included in the tariff agreement. We would like to see this figure grow to 2,500". She said that Brazil is interested in exporting ethanol and milk products, which have great demand in India and boost exports of edible oils as well. "Either the two countries could allow the other international players to lead the trade for them or India and Brazil could remove the intermediaries and develop an independent commercial relationship," Abreu said.

SOURCE: The Economic Times

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India promises all help to Thai investors

India today wooed Thai investors, encouraging them to look at it "afresh" and promising all the help they need to set up businesses in the country which is focused on growth, development and trade. The new government's vision for the southeast region is 'Act East' and this is backed with the mantra 'Red tape' to 'Red carpet', promising investors all the help they may require to set up businesses in India, said Amitabh Kant, Secretary Department of Industrial policy and promotion. "The future for Thai companies is not Thailand but India," Kant, the brain behind the popular Incredible India tag line, told a crowded gathering of businessmen and Thai government officials here at a Roadshow on 'Make in India'.

Assuring the investors that "huge amount of energy is unfolding in India", Kant said, "If you want anything...any sector to be opened up tell us. Anything we can do for Thai investors please tell us." Kant, who is also Chairman of the Delhi-Mumbai Industrial Corridor Corporation, acknowledged that Thailand had a sound manufacturing sector and India could learn a lot from it. He also said that Indian companies should look at coming to Thailand. "Invest in Thailand to become a key driver in southeast region," he said, referring to using Thailand as a springboard to do trade with other countries in the region. He talked at length about the new initiatives by the NDA government, saying that over the years doing business in India had become very complex but the new government had "made it easy to do business and invest in India". Kant also talked about the upcoming smart cities project and the new corridors, saying "India is passing through a window of demographic transformation which rarely happen. There is technology, mobile technology everywhere. India's population will keep getting younger till 2040." He gave examples of Technology driven through frugal engineering, eliciting cheers from the audience. The meet was also attended by Achaka Sriboonruang, Minister of Industry of Thailand, Suvit Maesincee, Deputy Minister of Commerce, Noppadon Theppitak, Deputy Permanent Secretary of the Ministry of Foreign Affairs, business delegation from India and top Thai government officials.

India's Ambassador to Thailand Harsh Vardhan Shringla said that both the countries had concluded an operational Early Harvest Scheme from 2004, covering 83 lines, under the bilateral Free Trade agreement. Since then, bilateral trade had expanded by more than 4 times touching USD 9 billion in 2014-15, he said.

SOURCE: The Economic Times

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Japanese economy returns to recession

The Japanese economy deteriorated more severely than expected in the third quarter, government data released on Monday showed, extending a downturn into a second consecutive three-month period and putting the country in technical recession. Worsening business confidence appeared to be behind the decline. Companies reduced investment in the quarter and drew down on their inventories rather than increase production, a sign that they may be bracing for tougher times ahead. In a preliminary estimate, the Cabinet Office said gross domestic product shrank at an annualized rate of 0.8 per cent. Economists surveyed by news agencies had expected a contraction of between 0.2 and 0.3 per cent, on average.

SPIRALLING DOWN

The downturn went into a second consecutive three-month period

Cabinet Office said gross domestic product shrank at an annualized rate of 0.8 per cent

Economists surveyed by news agencies had expected a contraction of between 0.2 and 0.3 per cent, on average

A darkening outlook for global growth has put Japanese businesses on the defensive. One concern is China, where growth in Asia's largest economy is slowing, in some sectors markedly, meaning there is less demand for industrial equipment, construction machinery and other capital goods, much of which has been supplied by producers in Japan The Japanese stock market opened lower after the economic report. In late-morning trading, the Nikkei 225 average was down about one per cent.

Japan grows more slowly than other countries at the best of times, largely because its work force is shrinking, so even small setbacks can easily send it into reverse. The latest recession was its fifth since the global financial crisis of 2008, though by some measures, including unemployment, the picture looks less dire. The recession could embolden critics of Prime Minister Shinzo Abe's economic policies, however. Abe gained office three years ago on a pledge to put Japan on a new and more robust growth path. So far, his "Abenomics" programme, centered on aggressive stimulus by the central bank, has lifted the stock market, lowered the yen's exchange rate - a boon for multinational companies like Toyota that earn a lot of revenue outside Japan - and helped curb persistent consumer-price deflation. But it has struggled to approach its ambitious goals for lifting incomes, spending and investment. Sadayuki Sakakibara, chairman of the Japan Business Federation, or Keidanren, the country's most influential corporate lobby group, called for further official measures to support the economy. Abe's government is working on a possible new spending package, according to Japanese media reports, which is expected to be worth about 3.5 trillion yen, or $29 billion. "Two straight quarters of decline needs to be taken seriously," Sakakibara told reporters. "The biggest issue is policies to lift growth. We need some kind of stimulus measures."

The economics minister, Akira Amari, described the latest downturn as a temporary dip that belied broadly improving fundamentals. "Weakness is apparent in some areas, but corporate profits are at record highs and the employment and wage environment is improving," he said in a statement after the economic report's release. "The gentle recovery in the economy is continuing." The fall in output in the third quarter followed a similar decline in the second, which the government now estimates at 0.7 per cent. Since Abe took office at the end of 2012, the economy has experienced six quarters of growth and five quarters of decline. The latest bout of weakness could add to pressure on the central bank to expand its stimulus efforts, which involve injecting trillions of yen into financial markets each month by buying up government debt. The idea is to keep borrowing costs low and encourage households and businesses to spend. The bank chose to keep its monetary policy unchanged at its last meeting on Oct. 30, defying the predictions of some private-sector economists who had been expecting new measures, such as an increase in the pace of its bond buying.

SOURCE: The Business Standard

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Syrians’ investments in Egypt concentrate mainly on textile sector

Syrian businessmen group- Egypt is a group of Syrian businessmen in Egypt who decided to continue their business in other countries and form semi-projects and factories that helped them and Syrians there. The number of the Syrian factories in Egypt constitutes about 80 percent of the Syrian factories established abroad, said Khaldoun al-Mowaqaa, head of Syrian businessmen group- Egypt. The Syrian businessmen established projects that also enabled them to help the displaced Syrians, who were forced to leave the country due to crimes and heinous acts perpetrated by the terrorist organizations.According to Al-Mowaqaa, the Syrian industrial factories operating now in Egypt concentrate mainly on the textile sector in addition to some food and trans formative industries.The Syrian industrialists selected Egypt to establish factories and make their industries because it is the biggest on the Arab level and they knew its markets as it was previously a market for their exports which are endowed with good reputation and distinguished position according to the Egyptian consumer.

Egypt’s location near the traditional markets of the Syrian exports, the Gulf States and Africa, according to al-Mawqaa, allowed the Syrian manufacturers to familiarize the markets of the African countries in general and enter them through the Egyptian long- term relations and economic agreement with those countries.Al-Mawqaa pointed out that what makes Egypt the most appropriate place for the Syrian industrialists is the Egyptian people’s nature of which the Syrians are consistent with.The Egyptian consumer becomes nowadays searching for the products that have the following brand “Made by Syrian hands on Egyptian lands”, which means that the Syrian industry maintained its identity even its products are made in Egypt, he clarifiedAccording to AL-Mawqaa, any Syrian manufacturer in Egypt has no more than 5 or 10 percent % of what he has been possessing in Syria, noting that those industrialists left Syrian due to compelling reasons and the alienation has increased their sense of belonging, so what they established in Egypt is a useful investment and would not be closed when they return to their country and it will not be an obstacle in preventing them from return back home.

SOURCE: Yarns&Fibers

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UAE- Pakistan pledges steps to boost textile production

Pakistan's textile industry has suspended its several month long agitation for solid business demands as the government promised help to boost production and exports at reduced prices.The government has accepted three out of the eight demands of the industry. But the industry while welcoming this gesture announced that it will continue to agitate for the acceptance of the rest of the demands. The three accepted demands are:

  • One raising the regulatory customs duty on import of Indian cotton yarn and fabric-coarse cloth from the present five per cent to 25 per cent - but the government raised it only to 10 per cent effective from November 1.
  • Two provision of more and chaper long-term financing to the ginning and spinning sector.
  • Three reduction in long-term financing and export financing (ERF) by one per cent.

"Textile industry is hopeful that the rest of the eight demands will soon be considered favourably and resolved by the government for the viability of the industry and increasing exports off the country" All Pakistan Textile Manufacturers Association (Aptma) the industry leader said in a statement. The industry and business analysts insist that its products ranging from high value fashion garments to common textiles are enjoying a big boom in markets ranging from the UAE to EU but it still has to lower its cost of doing business in order to reduce the sale price of its products in the export markets. The industry has been encouraged by its recent holding fashion shows in the UAE Middle East EU and elsewhere.

Pakistani fashions and designers are vigorously competing in countries across the globe ranging from top fashion designer names from France to India and Japan to China. The credit for bringing the industry back to production followed the latest Pakistan-wide shut down of all textile industrial factories and allied manufacturing and processing units across the country. Prime Minister Nawaz Sharif's pro-business policies and a team of his three negotiators conceded some of the demands. The negotiators included Finance Minister Ishaq Dar Commerce Minister Khurrum Dastgir Khan and Haroon Akhtar Khan Special Assistant to Prime Minister on Revenue. Finance Minister Dar says: "We need more revenues and rapidly enlarge our forex earnings to expand nationwide development work and repay foreign loans. But we have chosen to help the textile industry as it is the biggest labour employer and foreign exchange earner through exports." "The export trajectory will now start moving up - making me and the country happy" said Dastgir Khan as textile industry opened the factories after the one-day nationwide strike. "You know I come in middle of the crossfire because the industry demands a cut down on costs of production and government demands to push exports up" Dastgir said.

The seriousness of the textile industry crisis can be gauged from the fact that its exports have been declining during the last three years - down to a level of around 13 billion a year. Still its significance is that it makes a big chunk of the overall total annual exports which have also been stagnating at around 24 billion a year. Besides the big role of earning foreign exchange textile industry is the biggest employer of labour the largest tax-payer and consumer of most of its 12 to 13 million bales of its home grown cotton. The official statistics indicate that the overall Pakistani textile exports in financial year 2014-15 were down 10 per cent as compared to 2013-14. Even in first quarter of 2015-16 - July-September 2016 the exports were down 14 per cent.

As of September the textile exports picture is almost gloomy reaching a total of just 1.093 billion compared to 1.110 billion in August - down 1.52 per cent according to Pakistan Bureau of Statistics (PBS). "Pakistan's annual imports have stayed back at 40 billion level due to cheaper import pries of oil and commodities but we have to be ready to face up and pay for imports rising to 45 billion a year in not too distant a future. We have to earn more forex through larger and high-value added exports to fund that amount of imports" Haroon Akhtar said. Although as far as acceptance or rejection by government of all the remaining demands of the industry is concerned the decision will several more weeks. These include the demand to reduce the electricity and gas tariff cheaper bank credit other incentives to bring down the cost of doing business and banning smuggling-in of foreign textile products. The industry said that the governments of India China Bangladesh Sri Lanka and Vietnam - the principle competitors against Pakistani textile exports - provide all these incentives and facilities. But whatever progress has been made most sub-sectors of the industry seems to be satisfied. Hover some are not. Javed Balwaani Chairman Pakistan Apparel Forum (PAF) for instance is critical of the government for raising customs duty on Indian yarn imports from five to 10 per cent and on Indian and foreign fabrics from 10 to 15 per cent. "The government has not done its homework before raising these duties as it has just obliged the domestic spinner sector which was facing competition from foreign yarn imports as well as the fabric manufacturers." Aptma chairman Tariq Saud said: "The government seems to be showing some flexibility in connection with bringing down the power tariff and taxes. But it has still to meet several of our key demands including a reduction in Rs170 billion additional taxes on the textile sector." All this show that the tensions will continue between the government and the industry to meet the remaining demands but there is all the hope that production and exports will start moving up from this quarter - October-December 2015-16.

SOURCE: The MENA FN

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Pakistan govt accepts 3 demands of textile industry to boost production

The Pakistan government has accepted three out of the eight demands of the textile industry to help boost production and exports at reduced prices. But the Pakistan’s textile industry welcoming this gesture announced that it will continue to agitate for the acceptance of the rest of the demands. The three accepted demands are:

First, raising the regulatory customs duty on import of Indian cotton yarn and fabric-coarse cloth from the present five percent to 25 percent - but the government raised it only to 10 percent, effective from November 1. Second is provision of more and cheaper, long-term financing to the ginning and spinning sector and thirdly, is reduction in long-term financing and export financing (ERF) by one percent. Textile industry is hopeful that the rest of the eight demands will soon be considered favourably, and resolved by the government for the viability of the industry and increasing exports off the country, according to All Pakistan Textile Manufacturers Association (Aptma), the industry leader. The industry and business analysts insist that its products ranging from high value fashion garments to common textiles are enjoying a big boom in markets ranging from the UAE to EU, but it still has to lower its cost of doing business in order to reduce the sale price of its products in the export markets. The industry has been encouraged by its recent holding fashion shows in the UAE, Middle East, EU and elsewhere.

Pakistani fashions and designers are vigorously competing in countries across the globe, ranging from top fashion designer names from France to India and Japan to China. The credit for bringing the industry back to production followed the latest, Pakistan-wide shut down of all textile industrial factories and allied manufacturing and processing units across the country. Prime Minister Nawaz Sharif's pro-business policies and a team of his three negotiators conceded some of the demands. The negotiators included Finance Minister Ishaq Dar, Commerce Minister Khurrum Dastgir Khan and Haroon Akhtar Khan, Special Assistant to Prime Minister on Revenue.

Finance Minister Dar said that they need more revenues and rapidly enlarge their forex earnings to expand nationwide development work and repay foreign loans. But they have chosen to help the textile industry as it is the biggest labour employer and foreign exchange earner through exports. This quarter – October- December 2015-16 hopes that production and exports will start moving up - making the country happy. The seriousness of the textile industry crisis can be gauged from the fact that its exports have been declining during the last three years - down to a level of around $13 billion a year. Still its significance is that it makes a big chunk of the overall total annual exports, which have also been stagnating at around $24 billion a year. Besides the big role of earning foreign exchange, textile industry is the biggest employer of labour, the largest tax-payer and consumer of most of its 12 to 13 million bales of its home grown cotton. The official statistics indicate that the overall Pakistani textile exports in financial year 2014-15 were down 10 per cent as compared to 2013-14. Even in first quarter of 2015-16 - July-September 2016, the exports were down 14 per cent.

As of September the textile exports picture is almost gloomy reaching a total of just $1.093 billion compared to $1.110 billion in August - down 1.52 per cent according to Pakistan Bureau of Statistics (PBS). Although as far as acceptance or rejection by government of all the remaining demands of the industry is concerned, the decision will several more weeks. These include the demand to reduce the electricity and gas tariff, cheaper bank credit, other incentives to bring down the cost of doing business and banning smuggling-in of foreign textile products. The industry said that the governments of India, China, Bangladesh, Sri Lanka and Vietnam - the principle competitors against Pakistani textile exports - provide all these incentives and facilities. But whatever progress has been made, most sub-sectors of the industry seems to be satisfied. Hover some are not. Javed Balwaani, Chairman Pakistan Apparel Forum (PAF), for instance, is critical of the government for raising customs duty on Indian yarn imports from five to 10 percent and on Indian and foreign fabrics from 10 to 15 percent. The government has not done its homework before raising these duties as it has just obliged the domestic spinner sector, which was facing competition from foreign yarn imports as well as the fabric manufacturers. According to Aptma chairman Tariq Saud, the government seems to be showing some flexibility in connection with bringing down the power tariff and taxes. But it has still to meet several of their key demands, including a reduction in Rs170 billion additional taxes on the textile sector.

SOURCE: Yarns&Fibers

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The World Textile Summit (WTS) explores business basis of textile sustainability

The World Textile Summit, a unique one-day event that brings together the world's most influential textile business leaders to debate issues of strategic importance to the global industry, gave more than 150 textile industry leaders a range of expert insights into the business issues that feed into decisions on sustainability in the textile supply chain. Co-located with ITMA 2015 in Milan, the world's most prestigious exhibition of textile manufacturing technology, the Summit had a programme designed to examine how investment in 'clean' manufacturing or the use of sustainably sourced materials can help add value to companies at all levels of the supply chain, WTS said in a press release. It opened with a keynote address by Mary Porter Peschka, Director, Advisory Services, at the International Finance Corporation (IF), a division of the World Bank. Peschka explained how the IFC, which operates as the Bank's commercial arm, assists Small and Medium-sized Enterprises (SMEs) in developing economies, often providing investment finance where other sources are either unavailable or too expensive. It also provides consultancy to industry and governments on measure to improve sustainability. The subject of sustainability aligned with the overarching theme of ITMA 2015, which continues at the Fiera Milano Rho, in Milan until November 19, and the event was structured to assist senior textile decision-makers in formulating strategy. Its elements include the role of sustainability in differentiating brands and companies, business profitability and security, investment decisions, the circular supply chain, customer acquisition and retention and product development

Paula Oliveira, Director, Interbrand, who explained how sustainability can deliver a marketing edge by differentiating brands and companies. Vivek Tandon, co-founder of French private-equity investor Aloe Group, which specialises in sustainable investments and has interests in the fibre sector, gave an investor's perspective. There then followed a session in which three textile industry leaders gave their first-hand accounts of the advantages of investment in 'clean' manufacturing. Maurizio Ribotti, of Canepa SpA (Italy), Roger Yeh, of Everest Textile Co Ltd (Taiwan), and Ajay Sardana, of Aditya Birla Group (India), each briefly described their company's experience and joined an open discussion on the investment case for 'green' technology. The event ended with Burak Tun, Director Sales, Menderes Tekstil (Turkey) and Alan Garosi, Global Marketing Manager, Fulgar (Italy) each presenting a short case study, focusing on their own company's application of environmentally friendly materials, and were joined on the platform by Peter Waeber, of bluesign technologies, for an open discussion on the strategic choices to be made in material selection.

SOURCE: Fibre2fashion

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