Hours after the Supreme Court rejected the pleas of Amazon and Flipkart against a CCI probe, Union minister Piyush Goyal on Monday asked the traders' community to "prepare themselves" and present all their complaints against big online retailers before the regulator to get "justice". The commerce and industry minister also said that large companies, which were spending crores on lawyers to ensure that nothing happens on retailers' complaints, have failed. The apex court has refused to entertain the pleas of Amazon and Flipkart, challenging an order permitting the CCI to carry out a preliminary investigation into the alleged violation of the competition law. Goyal, who has been vocal in supporting domestic traders, assured full support to the trader community from the government and asked traders to bring violations in the laws to the notice of the government. He urged the traders to prepare themselves and "whatever complaints you have, present all those in front of CCI so that justice can be done". The Supreme Court has rejected the pleas of large e-commerce companies, which were running from "your complaints in CCI," he said while addressing traders' fraternity on the occasion of National traders' day. On Monday, the Supreme Court refused to entertain pleas of Amazon and Flipkart, saying that challenging the enquiry is like wanting a notice before the registration of an FIR under the criminal law and asked the e-commerce giants to submit themselves to the CCI probe. On January 13, 2020, fair trade regulator CCI ordered a probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms, following which both the companies had moved the high court seeking quashing of the probe order. According to Goyal, if businesses want to do ecommerce in India, they need to take domestic retailers along. The government is working towards simplifying legal metrology and creating a singlewindow online system to stop harassment of traders, he said, and urged the traders to boost 'Swarojgar, Swadeshi and Sugam Vyapar'.
Source: Times of India
It said that new records have been hit in container freight spot rates of all carriers and further rise is expected this month. Increasing freights would push the overall cost of domestic goods in the international markets, which would make it less competitive and hurt the country's merchandise exports, Trade Promotion Council ofIndia (TPCI) said on Tuesday. It said that new records have been hit in container freight spot rates of all carriers and further rise is expected this month. "The industry is worried that if this situation persists, there can be a 5 per cent to 8 per cent increase in the cost of goods from India. This will have an impact on exports too due to equipment shortages or shipments will be postponed due to very high ocean rates. Demand for Indian products will slow down due to high cost," the council said in a statement. Quoting Sandip Patel of SLT Food Inc, and a US based TPCI member, it said that during pre-COVID, cost out of India to North America was on average USD 1,800 per 20 feet container, which has now touched a high of USD 6,000 per 20 feet container. "Comparing this to previous months, container trading data reveals that during the first trimester of 2021, the average prices for 20 feet containers across Europe rose 57 per cent. A surge in demand along with unexpected high volumes and pandemic-related restrictions were the main difficulties that lead to this problem," he said. Patel added that the problem started when global economies started entering lockdown during the first half of 2020, while China was recovering from it. "The entire world bought medical protective equipment from China, but once those containers arrived and were unloaded in the US or European ports, and due to the lockdowns that those countries were experiencing, there was not “Meaning, containers ended up stacking empty in places they were not needed, and they did not make it back to places they were supposed to," he said. Shrikant Devhitka, Export Sales Director at Savion Ceramic (Q-BO) too said that the ocean freight cost also kept on increasing after opening of the market from NSE 0.87 % in Gujarat to US, which was between USD 2,000 and USD 2,200 six month ago and today it has gone up to USD 10,000 to USD 11,000. "Our orders are getting diverted to Turkey and Spain as they are closer destinations to the export market," Devhitka said.
Source: Economic Times
Recently, the government of India removed the anti-dumping duty (ADD) on Viscose Staple Fibre (VSF). The ADD on VSF (up to $0.512 per kg) was enforced by the finance ministry in August 2016, for a period of five years and was a whopping $162 per MT before. Cross section of the industry were asked to share views on whether this move will boost the MMF sector. The government of India has been formulating several measures to maximise and expedite India’s role and progress in the global manufacturing and services supply chain. “We want India to create world-class products that are globally competitive," declared Prime Minister Narendra Modi at the recently-held 'Local Goes Global – Make in India for the World' virtual meet with various stakeholders from the trade & commerce sector. “At present, our exports comprise about 20 per cent of the Gross Domestic Product (GDP). Considering the size of our economy and the base of our manufacturing and service industry, the sector has the potential to grow a lot," he expressed confidence. In this regard, a recent decision by the government has instilled confidence among textile manufacturers in the country. The Union government has decided to eradicate the AntiDumping Duty (ADD) on Viscose Staple Fibre (VSF), a man-made cellulosic fibre that is biodegradable. Extracted and synthesised from wood pulp and cotton pulp, VSF is a versatile and easily bendable fibre used in apparel, home textiles, home furnishings, dress materials, woven and knitwear. The anti-dumping duty on VSF (up to $0.512 per kg) was enforced by the finance ministry in August 2016, for a period of five years.
‘Negate ADD, promote growth’
The smorgasbord of ADD on Man-Made Fibres/Filaments (MMF) has been an Achilles’ heel to the Indian textile industry for long. It included levies on Purified Terephthalic Acid (PTA), Acrylic fibre (AF) and VSF. Early last year, the Indian government offered some respite to Indian garment manufacturers by abolishing the ADD levied on imports of PTA – a crucial raw material that goes into polyester fabrics. The ADD on AF imported from Thailand was also removed subsequently, followed by a recommendation for zero duty on Dralon from the European Union. This proved to be a much-needed relief for the domestic textile industry, as the previous duty charged was a whopping $162 per MT. It’s pertinent to note that numerous textile industry bodies, such as the AEPC, the National Committee on Textiles and Clothing, the Confederation of Indian Textile Industry (CITI), the Clothing Manufacturers Association of India (CMAI), the Indian Spinners’ Association and the Powerloom Development Export Promotion Council, had submitted a joint representation to the Prime Minister this January. The representation sought the removal of the anti-dumping duties on VSF, redressal of VSF spun yarn availability and price issues to prevent job losses across the VSF textile value chain.
Vital boost to MMF segment
Several industry stalwarts are of the view that the Directorate General of Trade Remedies (DGTR) nudging the government to scrap the ADD on VSF will help boost the MMF segment in the country as well as push exports of apparel. “The removal of protectionist tariffs on VSF will align domestic VSF prices with global prices, making the entire Indian VSF textile value chain globally competitive. It will boost production and exports,” A Sakthivel, chairman, Apparel Export Promotion Council (AEPC) had welcomed the government move recently. For better context, MMF surpassed cotton as the dominant fibre since the mid-1990s, when it overtook cotton volumes and has continued to grow faster thereafter as compared to all other fibres. “In 2018, the global fibre production was 110 million tonnes, in which the share of MMF is around 72 per cent – of which synthetic filament is around 50 million tonnes (45 per cent), synthetic staple is 22 million tonnes (20 per cent), cellulosic fibre 7 million tonnes (7 per cent) of the global fibre production in 2018. The domestic fibre consumption ratio in India at present is 40:60 between man-made fibres and natural fibres, which is almost opposite to the global fibre consumption trends," according to the AEPC. The AEPC is also willing to focus on research & development regarding the production of MMF fabrics matching international standards and has requested the government to provide it an aid of ₹25 crore. “The (recent) decision will help the MMF segment, which both the industry and government have identified as the sunrise sector, for increasing the share of India in global apparel trade. With quality fabric at the right price in place, it will finally give wings to the proposed Production Linked Incentive (PLI) scheme for the MMF segment,” Sakthivel had remarked. The scrapping of anti-dumping duty is a welcome move, and it is definitely an effort towards uplifting the sector as a whole, asserts Naresh Jain of Siddhachal Textile, adding, "However, with the pandemic scenario, freight charges have increased in both India and China. Thus, the industry feels this would not make a big difference for the domestic market and also will not have any big impact on local VSF yarn prices. We, however, need to wait and keep an eye on the fluctuating yarn prices to arrive at a conclusion." He further states that we can't afford to be short-sighted with any reforms, as every positive move will transform and take the textile sector to become one of the most promising sectors in this country.
Restoring parity
An industry veteran, Rahul Mehta, president and trustee of the CMAI, quips that it was surprising that the Indian government had been allowing – and even encouraging – the import of duty-free finished garments from Bangladesh, even as it levied duty on raw materials used in the Indian textile industry. "The government has taken the right decision to promote the MMF segment under its PLI Scheme. We have been in favour of no import duties and anti-dumping duties on raw materials, as they make our garments' production more expensive.” CMAI is one of the oldest and most inclusive textile associations in the country. Tiruppur Exporters’ Association (TEA) president, Raja M Shanmugham echoes a similar view, adding that the government has restored parity in prices when compared to the other international textile markets like Bangladesh, with this move. “This is a much expected step by our government, which should help us achieve price equality in the international markets. Until quite recently, only a few monopolies were playing a dominant role in India owing to the price disparity. But the removal of ADD will help the trade to grow in the export as well as domestic segments.
Source: Fibre2Fashion
As per the information received from Central Statistics Office, Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively.The MSME sector is an important sector of the Indian economy. As per the information received from Central Statistics Office, Ministry of Statistics & PI, share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively. The share of the MSME manufacturing in All India manufacturing gross value output during the year 2018-19 and 2019-20 were 36.9% and 36.9% respectively. Further, as per the information received from Directorate General of Commercial Intelligence and Statistics, the share of export of specified MSME related products to All India exports during 2019- 20 and 2020-21 was 49.8% and 49.5% respectively. As per 73rd Round of NSS Report on Unincorporated Non-Agricultural Enterprises' (July 2015- June 2016) conducted by Ministry of Statistics & PI, estimated number of workers in MSME sector was 11.10 crore. Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro enterprises during the year 2020-21 and 2021-22 (as on 01.07.2021) are 5.95 lakh and 1.19 lakh respectively. This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Rajya Sabha today.
Source: PIB
The Government of India has taken various measures to strengthen the MSME sector under Aatmanirbhar Bharat Abhiyan (ABA), which includes Rs.3 Lakh crore CollateralFree Automatic Loans for businesses, Rs. 20,000 crore subordinate debt for stressed MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, no global tenders for procurement upto Rs. 200 crores along with revision of definition of MSME, etc. Further, as on 02.07.2021, an amount of Rs. 2.73 lakh crore have been sanctioned under Emergency Credit Line Guarantee Scheme (ECLGS) in the country, including Tamil Nadu, of which an amount of Rs. 2.14 lakh crore has been disbursed. All proposals that are eligible under the relevant guidelines for a collateral free loan are generally accepted. However, Ministry of Micro, Small and Medium Enterprises (MSME) sometimes receives complaint regarding denial of collateral free loan by the banks. As there is a prescribed procedure for obtaining a collateral free loan, such complaints received in the Ministry of MSME, are accordingly forwarded to concerned bank for consideration as per the rule/procedure. This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Rajya Sabha today.
Source: PIB
One of the focus points of Tuesday’s meeting was ‘emerging issues in state finances: analysis of state budgets 2021-22’. The other was creating a National Data and Analytics Platform (NDAP), which will host all key socioeconomic data at one place, removing a bottleneck in accessing data for research. Prodded by Prime Minister Narendra Modi to widen the ambit of consultations before firming up policy recommendations, Niti Aayog on Tuesday held parleys with around 60 think tanks from across the country — the third in seven months. One of the focus points of Tuesday’s meeting was ‘emerging issues in state finances: analysis of state budgets 2021-22’. The other was creating a National Data and Analytics Platform (NDAP), which will host all key socioeconomic data at one place, removing a bottleneck in accessing data for research. The deliberations in the Niti Aayog were attended, among others, by economists from the National Institute of Public Finance and Policy, National Council of Applied Economic Research, Indian Council for Research on International Economic Relations, TISS, Centre for Policy Research and various institutes of Indian Council of Social Science Research. “The idea is to actively engage as many think tanks as possible in national policy formulation,” a senior Niti Aayog official said. While the meeting in February attended by around 20 think tanks focused on the state of the economy, the second meeting with 50 think tanks in May was about getting inputs for Covid-19 response. Earlier, Niti Aayog’s consultations with think tanks were not at such a scale. NDAP, which is slated for public launch in early 2022, will be a user-centric web platform that aims to enable effective use of Indian government data.
Source: Financial Express
India’s merchandise exports in Apr-July 2021-22 were $130.53 billion, an increase of 73.51% over $75.22 billion in Apr-July 2020-21 and an increase of 21.82% over$107.15 billion in Apr-July 2019-20, according to Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India. For this fiscal the growth is broad-based and has been led by Engineering Goods, Petroleum Products, Gems & Jewellery, Textiles and Garments and Organic & Inorganic Chemicals. Over the years, the biggest contribution has been of the petroleum products, Mr Ghosh said . In FY97 their % share in overall exports was around 1.5% and this increased to around 21% in FY13 and FY14. However, their share declined to 9% in FY21 as crude oil prices collapsed before recovering to 14% in current fiscal with the domino impact of jump in crude prices. Thus, the impact of international crude oil prices has always been a big factor in the way India’s crude oil exports. As the world slowly moves towards cleaner sources of fuel, India needs to chart a plan to gradually bring its share down. This can only be possible if other manufactured exports improve, he said. "If we look at the compositional shift, then over the last 25 years, the top 20 HS-2 categories accounted for around 74%-80% of the total exports, thus showing that overall the export basket composition has remained fairly stable over the years. Certain agri based and labour intensive products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices, carpets and footwear have exited the export list," Mr Ghosh said. Meanwhile, certain items like Aluminium and articles thereof and Ships, Boats and floating structures exports have grown rapidly and are now part of the top exports. There are certain other products which have shown rapid growth but their share in overall exports is still very low as they started from a very low base. These include items like fur skins and artificial fur, arms and ammunition, furniture, aircraft and space craft and zinc and its articles, he said. Mr Ghosh said the other major manufactured products which started with a good base, like chemicals and pharmaceuticals, electrical and mechanical machinery and appliances, vehicles, articles of iron and steel, plastics have all grown fairly steadily and increased their share in the overall exports. However, there is no big segment which has shown such growth as petroleum sector had done in the past. In a bid to make exports more competitive, India has recently launched Production Led Incentive scheme for sectors such as electronics, pharmaceuticals, food products, white goods, cells, etc, he said. The sectors are well-chosen as they display a lot of potential. However, there are a few more sectors which also display potential which include ships and boats, aircrafts and ceramics and focus on these can yield good results, Mr Ghosh said. However, it has to be kept in mind that primary engine of growth for India remains domestic consumption and unless that improves it is difficult for India to achieve sustained growth. For the 18 year period ended FY21, the weighted contribution of exports was 28%, while that of consumption was 69%! For the 5 year period ended FY08, the weighted contribution of exports was 39% and that of consumption was 63%, implying that both exports and domestic consumption propelled India’s growth. In contrast, for the 7 year period ended FY21, the weighted contribution of exports was 7%, while that of consumption was 71%, including the years where contribution of exports were negative and domestic consumption held center stage. Clearly, we also need to jump start domestic consumption, even as export growth shows a definitive uptick, MR Ghosh added.
Source: Uni India
India’s merchandise exports in Apr-July 2021-22 were $130.53 billion, an increase of 73.51% over $75.22 billion in Apr-July 2020-21 and an increase of 21.82% over$107.15 billion in Apr-July 2019-20, according to Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India. For this fiscal the growth is broad-based and has been led by Engineering Goods, Petroleum Products, Gems & Jewellery, Textiles and Garments and Organic & Inorganic Chemicals. Over the years, the biggest contribution has been of the petroleum products, Mr Ghosh said . In FY97 their % share in overall exports was around 1.5% and this increased to around 21% in FY13 and FY14. However, their share declined to 9% in FY21 as crude oil prices collapsed before recovering to 14% in current fiscal with the domino impact of jump in crude prices. Thus, the impact of international crude oil prices has always been a big factor in the way India’s crude oil exports. As the world slowly moves towards cleaner sources of fuel, India needs to chart a plan to gradually bring its share down. This can only be possible if other manufactured exports improve, he said. "If we look at the compositional shift, then over the last 25 years, the top 20 HS-2 categories accounted for around 74%-80% of the total exports, thus showing that overall the export basket composition has remained fairly stable over the years. Certain agri based and labour intensive products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices, carpets and footwear have exited the export list," Mr Ghosh said. Meanwhile, certain items like Aluminium and articles thereof and Ships, Boats and floating structures exports have grown rapidly and are now part of the top exports. There are certain other products which have shown rapid growth but their share in overall exports is still very low as they started from a very low base. These include items like fur skins and artificial fur, arms and ammunition, furniture, aircraft and space craft and zinc and its articles, he said. Mr Ghosh said the other major manufactured products which started with a good base, like chemicals and pharmaceuticals, electrical and mechanical machinery and appliances, vehicles, articles of iron and steel, plastics have all grown fairly steadily and increased their share in the overall exports. However, there is no big segment which has shown such growth as petroleum sector had done in the past. In a bid to make exports more competitive, India has recently launched Production Led Incentive scheme for sectors such as electronics, pharmaceuticals, food products, white goods, cells, etc, he said. The sectors are well-chosen as they display a lot of potential. However, there are a few more sectors which also display potential which include ships and boats, aircrafts and ceramics and focus on these can yield good results, Mr Ghosh said. However, it has to be kept in mind that primary engine of growth for India remains domestic consumption and unless that improves it is difficult for India to achieve sustained growth. For the 18 year period ended FY21, the weighted contribution of exports was 28%, while that of consumption was 69%! For the 5 year period ended FY08, the weighted contribution of exports was 39% and that of consumption was 63%, implying that both exports and domestic consumption propelled India’s growth. In contrast, for the 7 year period ended FY21, the weighted contribution of exports was 7%, while that of consumption was 71%, including the years where contribution of exports were negative and domestic consumption held center stage. Clearly, we also need to jump start domestic consumption, even as export growth shows a definitive uptick, MR Ghosh added.
Source: Uni India
The top export destinations were the US, UAE and Saudi Arabia while the highest rise in imports was seen from the UAE, China and Nigeria. Outbound shipments of engineering goods increased 63.2% and petroleum products grew 145.3%. Gems and jewellery exports witnessed a growth of 121% whereas iron ore, oil meals, oil seeds saw the steepest decline in exports Led by engineering goods, gems and jewellery, and petroleum products, India’s exports rose 50.45% to $7.41 billion during August 1-7. Imports in the week rose 70% to $10.45 billion, leaving a trade deficit of $3 billion, tentative data released on Tuesday by the commerce and industry ministry showed. The top export destinations were the US, UAE and Saudi Arabia while the highest rise in imports was seen from the UAE, China and Nigeria. Outbound shipments of engineering goods increased 63.2% and petroleum products grew 145.3%. Gems and jewellery exports witnessed a growth of 121% whereas iron ore, oil meals, oil seeds saw the steepest decline in exports. In the first four months of FY22, merchandise exports were $130.56 billion, which is 32.64% of the $400 billion target set by the government for this fiscal and up 73.8% over the corresponding period last year. Imports of oil in the first week of August rose 141% to $1.8 billion while those of electronic goods were up 31% to $308 million. However, gold imports declined 12.48% to $100 million.
Source: Economic Times
Rajya Sabha returns Bill to Lok Sabha amid Opposition protests he Finance Ministry on Monday said a Bill to end retrospective taxes imposed on indirect transfer of Indian assets will encourage companies to invest in India and help the country become a $5-trillion economy. The Rajya Sabha on Monday returned the Taxation Laws (Amendment) Bill, 2021 to the Lok Sabha after main opposition parties staged a walkout. Following this, only the President's assent is required to make it a law. “(The Bill) will spur companies that are on the cusp of deciding their investments into investing in India. (It) will provide impetus to the country’s goal of becoming a $5-trillion economy,” Finance Minister Nirmala Sitharaman’s office tweeted. The office said the legislation will instil confidence on the Indian economy among foreign and domestic investors. “It (will) avoid unnecessary litigation and save time and costs of the government,” the ministry said on the microblogging site. The Bill will boost the policy of the government to have a predictable tax regime. Replying to the debate in the Upper House, Sitharaman said, “This (Bill) is appealing enough and will put an end to this ghost which we have been carrying all this while since 2012… I seek support of the House to make India look very clear, transparent and fair taxation land.” The Congress, the TMC, the DMK walked out of the House before the Bill was taken up for discussion. The minister also told the House that the Bill provides for no payment of interest on refund made under this and the parties seeking relief would not pursue further appeals or litigation in these cases. The Bill proposes to amend the Income Tax Act, 1961 so as to provide that no tax demand would be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012, the date on which the Finance Bill, 2012, received the President’s assent.
Source: Business Standard
Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FOB value for granting duty drawback, the CBIC says. Q. For our exports we are paid through inward remittances, where foreign banks deduct their charges of euro 20-50 many times. We received notice from the Customs asking us to refund the drawback received by us in 2014- 15 alleging non-realisation of export proceeds. When we submitted all bank realisation certificates to them, they prepared a list of 17 invoices where we have a shortfall in realisation of euro 35-50 due to foreign bank charges. Are we liable to pay this pro-rata drawback back to the government with 18 per cent interest? CBIC Circular no.33/2019-Cus dated September 19, 2019 clarifies that duty drawback may be permitted on FOB value without deducting foreign bank charges. It also says that since agency commission up to the limit of 12.5 per cent of the FOB value has been allowed, such deduction on account of foreign bank charges is allowed within this overall limit of 12.5 per cent of FOB value. From the average rates of agency commission and foreign bank charges in respect of export shipments, it is seen that these deductions fall within the aforesaid overall limit of 12.5 per cent of FOB value allowed by the Board. Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FOB value for granting duty drawback, the CBIC says.
Q. Eight years back, we imported certain equipment. We recently sent it back to the foreign supplier for repair and refurbishment under EDF waiver. However, the design and model have undergone changes due to technological advancement. Now we would like to bring in the latest version. A huge amount has to be paid through a new purchase order, which cannot be shown as repair cost. How can we comply with the EDF waiver condition? The import of the latest version of the equipment must be treated as fresh imports and not as re-import against the EDF waiver condition. For closure of the EDF waiver, you may approach the Reserve Bank of India through your bankers, explaining why you cannot or do not want to re-import the equipment sent abroad for repairs.
Q. We are an EOU. The Tuticorin Customs are not allowing us to export our goods on payment of IGST under refund claim. We have written to them explaining that we import our inputs under the notification 52/2003-Cus dated March 31, 2003, and that we pay IGST and avail only the exemption from BCD and that the Customs at other ports are allowing our exports on payment of IGST under refund claim. However, the Tuticorin Customs are not responding to our letter despite reminders. Please advise. I suggest you represent to the higher authorities at Tuticorin Customs and explain with evidence that all your imports of inputs are on payment of IGST and that on all your domestic procurement, refund of IGST has not been availed under notification 48/2017- CT dated October 18, 2017, and that this is not a case of export through a merchant exporter.
Source: Business Standard
Arvind Limited, textile to technology conglomerate and the largest manufacturer of denims in India, has collaborated with Textile Genesis, a block-chain enabled digital transparency platform for apparel supply chain. The collaboration will address the emerging need for transparency across the Denim supply chain, backed by a credible traceability mechanism. The Textile Genesis’ platform will provide complete traceability of upstream (cotton and other inputs) being used by Arvind to the customers. This technology works closely with a network of key sustainable fibre suppliers and textile chain partners helping create a sustainable ecosystem for major brands and retailers, the two companies said in a joint media release. Talking about the new initiative Aamir Akhtar, CEO, lifestyle fabrics – Denim, Arvind Limited said, “At Arvind Denim, it is our constant endeavour to bring the latest in design and innovation to our key partners/customers backed with a promise of sustainability. This is yet another step in that direction. We are elated to embrace this new technology which will prove impactful in coming times.” “Sustainability and traceability are really two sides of the same coin, and great to see Arvind taking a lead on both fronts. Our supply chain traceability platform will create end-to-end traceability for Arvind’s innovative and sustainable products across the entire supply chain using Fibercoins traceability technology,” said Amit Gautam, CEO & founder of TextileGenesis. Arvind Denim’s wide range of sustainable offerings like single-origin non-conflict cotton Renaissance range of recycled cotton, polyester and other man-made fibres; natural indigo etc, will be available with full track and trace. The digital Fibercoins technology from Textile Genesis, allows brand and retailers full value chain traceability and visibility along with ESG (environmental, social and governance) credentials of the supply chain partners from fibre-origin to retail.
Source: Fibre2Fashion
"The expansion projects of flooring, advanced textile, and home textile businesses, which were in different stages of progress in FY21 will get completed in FY22," the company's management said in its discussion and analysis in the report. Home textiles major NSE - 7.86 % has earmarked capital expenditure of Rs 600 crore in the ongoing fiscal for completing expansion projects across its three business verticals, according to the company's annual report for 2020-21. The company expects its top line to grow by over 15 per cent in FY22 on the back of expanded capacities and with customer demand remaining buoyant. "The expansion projects of flooring, advanced textile, and home textile businesses, which were in different stages of progress in FY21 will get completed in FY22," the company's management said in its discussion and analysis in the report. It further said, "Capex spend in FY22 to complete these projects is expected to be around Rs 6,000 million." In his address to the company's shareholders, Welspun Group Chairman BK Goenka said Welspun India would undertake capital-light capacity expansion to address growing demand. "To cater to the demand, our plants at Vapi and Anjar operated at peak capacity in FY21. With demand continuing to rise, we are expanding capacity through debottlenecking and rebalancing at both the plants, which will lead to increased capacity for towels, bed linen, rugs, and carpets," Goenka said. He further said, "We have earmarked capex of around Rs 225 crore over FY21 and FY22, and will see the benefits accrue from as early as Q1 FY22." In the home textile segment, the company has an annual capacity of 80,000 MT for bath linen, 90 million metres for bed linen, 10 million square metres for rugs and carpets. Capacity utilisations for these stood at 88 per cent, 77 per cent and 82 per cent respectively in FY21, the annual report said. For advanced textile, the annual capacity for Spunlance was 10,000 MT with capacity utilisation of 92 per cent last fiscal. The same for needle punch was 3,000 MT with capacity utilisation of 34 per cent, while that of wet wipes was at 75 million packs and capacity utilisation of 28 per cent, it added. Welspun India said in the flooring vertical, the expected annual capacity at full capex for soft flooring is 16.3 million square metres and 10.7 million square metres for the hard flooring segment. "On the back of expanded capacities and with customer demand remaining to be buoyant, the top line of the company is expected to grow upwards of 15 per cent in FY22 (with home textile over 10 per cent, flooring over 125 per cent, and advanced textiles over 50 per cent)," the annual report said. Welspun India CEO and Joint MD Dipali Goenka said in her address said the COVID-19 pandemic brought in its wake a lot of disruption and uncertainty that affected every aspect of life. On the outlook, she said, "Our external environment continues to remain uncertain, given the recurrent waves of the pandemic. We understand that acting with resilience and adapting to change are the only way forward."
Source: Economic Times
Apparel and terry towel exporters allege that the spinning millers unfairly and abnormally increased yarn prices amid rising demand The rising price of yarns in the country for several months now has created a chaotic situation for textile millers and apparel exporters. Apparel and terry towel exporters allege that the spinning millers unfairly and abnormally increased yarn prices amid rising demand and soaring cotton prices in the global market. This put the exporters in a sticky situation, they claimed, as yarn prices have repeatedly been going up for the last 7-8 months. However, textile millers denied the allegation and claimed that they are not hiking prices intentionally. The price of cotton is rising in the international market. Moreover, the cost of importing cotton has also increased multiple times due to Covid-19, they said. However, there is no opportunity to increase the price of yarn as per wish in a free market economy, they also said. According to industry insiders, the yarn market experienced the most unstable situation during April-May of this year. Thirty-count yarn, which is being used to manufacture apparel products, is being sold at $4.25-$4.40 per kg, higher from $3 in November last year and $4 in March this year. Md Mizanur Rahman, an AGM of Akij Textiles Mills Limited, said that the price of cotton has gone up in the international market so there is no way but to increase the price of yarn. “The cost of importing cotton from Kazakhstan, China has increased by $4,000-5,000 per container, the cost of import has also increased, and the demand for yarn in the country is also high. So naturally the price of yarn has gone up,” he added. A vice-president of BTMA, requesting anonymity, said that there is no opportunity to control the price of yarn domestically. “Cotton prices have risen by 6%-10% in the last few months, as the cotton production declined due to the pandemic which had an impact on the global market. Its production may decline further in the coming seasons,” he added. He also suggested that they need to find a way to get higher prices from buyers without conflicting with each other over this issue. Fazlee Shamim Ehsan, vice-president of BKMEA, said that the price of cotton has increased by 40-60 cents in the global market in the last two years, but the price of cotton in Bangladesh has increased by more than $2 which is illogical and abnormal. “The price of yarn has risen at a much higher rate than the global market. And there is no basis for saying that the price has gone up as the demand has increased, it is against business ethics and it can’t be a statement of an industrialist,” he added. A senior official of AKH Eco Apparels Ltd, said that the price of yarn in Bangladesh is 50- 70 cents higher per kg than any other South Asian country. But their foreign buyers do not agree with it. “We cannot take purchase orders because of the abnormal rise in yarn price as the buyers do not want to pay higher prices for garments. But we have to take orders at lower prices to retain them,” he added. At the end of 2019, the price of raw cotton in the international market was $0.70 per pound, which is now $1.1. The price of yarn is also the highest in Bangladesh among South Asian countries. The price per kg of 30-count yarn is $4.35 in Bangladesh, which is $3.8 and $3.6 in Pakistan and India respectively, said industry insiders. However, some sources from apparel and terry towel sectors have demanded the elimination of some existing barriers to import yarn. They have also urged the government to allow yarn import at duty-free and without a bond licence. They have taken initiative to send letters to the concerned ministries, divisions, and the Competition Commission to approve their demands. Earlier, the apex organizations of apparel exporters, the BGMEA, the BKMEA and the BTTLMEA held a meeting on Sunday. They alleged that textile millers are raising the price of yarn intentionally. Later, BTMA, an association of textile owners, also called a meeting on Monday to state their position on this situation, but canceled the meeting at the last minute due to "unavoidable circumstances." At the same time, BGMEA, BKMEA and BTTLMEA called a joint press conference to highlight the problems created due to soaring yarn prices on Tuesday. But they also postponed their scheduled briefing citing the same reason at the last moment. However, several top apparel and textile manufactures said that it would be counterproductive for both of them if they fail to recover from the chaotic situation caused due to yarn prices. The country's reputation will be tarnished and competing exporter countries will capture the opportunity, they also feared. According to BTMA, domestic spinning mills supply 80% of the yarn of export-oriented knitwear factories when it is 35-40% of woven factories. In 2019, the spinning mills supplied 1 million tons of yarn worth $3.08 billion to exporters which dropped to 569,000 tons last year worth $2.7 billion. Meanwhile, a joint meeting with the BGMEA, BKMEA and BTMA is scheduled to be held on Tuesday (August 10) evening to resolve the issue. Nothing was known about the meeting until the filing of this report.
Source: Dhaka Tribune
The textile recycling industry has mounted a campaign to dispel “myths” and “erroneous information” in media reports warning against used textile exports to Africa. Textile Recycling Association (TRA) director Alan Wheeler said there was growing fear in the industry that people with a misguided concern for sustainability were damaging the reputation of the second-hand clothing market in Africa, and so deterring the public from supporting it. The TRA has joined with its equivalents in the EU, the US and with the Bureau of International Recycling (BIR) to try to counter hostile propaganda. These organisations said: “There is a common misconception that second-hand clothing exported to developing countries partially ends up being discarded right away. “The fact is clothing not sold directly in the market simply gets passed down the supply chain and ends up selling in smaller markets throughout the region…No profitable business will spend money on packing, shipping and distributing a product only to have it end up in a landfill." Wheeler told MRW that, in many cases, second-hand clothes sold in Africa were of a higher quality than new and cheaper ones from China. He said some activists saw mixed bundles of clothing being delivered to Africa and mistakenly assumed some must be waste. In fact, the normal practice there was to grade clothes by quality but in mixed bales so that, for example, a retailer did not buy a bale and find they had only one type of garment. Martin Böschen, president of the BIR textile division, said: “Due to high transport and import costs, it does not make sense for importers to import second-hand textiles which are not suitable for the local market. "Discarding or recycling those textiles in the US or Europe would be cheaper than sending them to Africa. Therefore, the hypothesis that a large fraction of the imported textiles goes directly to landfill is highly questionable.” The Institute of Economic Affairs in Kenya in April released a study that found the used clothing textile industry was crucial to Kenya's economy, with two million people being directly employed and thousands of other jobs created by it in sectors such as transport. It estimated that 91.5% of households in Kenya buy second-hand clothes. The country imported 185,000 tonnes of second-hand clothing in 2019, equivalent to some 8,000 containers. The industry bodies said their campaign would continue by seeking to “set the record straight and strongly encourage the world to consume used clothing and textiles”.
Source: MRW
GOVERNMENT is forging ahead with its drive to create a conducive environment that facilitates the competitiveness of local industries, enhancing production and boosting earnings. She said this was being implemented through policy formulation and strategies that enhance industrial growth at a time the country is looking at achieving an upper middleincome economy by 2030. “My ministry is mandated to facilitate and promote the development of sustainable, innovative, inclusive and globally competitive industrial and commercial enterprises for improved consumer welfare and economic growth,” said the minister. “The Government is able to do so through formulating and implementing policies and strategies for industrial and commercial growth.’’ She cited the National Development Strategy (NDS1) and the Zimbabwe National Industrialisation Policy as some of the initiatives the Government is implementing to achieve inclusive economic growth. Dr Nzenza, however, emphasised the need for inclusive growth, where women also take advantage of technological innovation to enhance their role towards economic development of the country, while their businesses also grow. Their participation in all the various sub-sectors of the local industry could not be overemphasised, she added. “We launched the Zimbabwe National Industrialisation Development Policy, which is premised upon the deliberate decision taken by the Government to open the country for business, modernise, industrialise and promote investment, with the ultimate goal of attaining broad-based economic empowerment, inclusive economic growth and employment creation,” said Dr Nzenza. “We have a highly diversified industrial sector consisting of 94 sub-sectors that include food, drink, and tobacco, clothing and textiles, wood and furniture; leather and footwear among many others and I am honoured to see women occupying spaces in those areas. “It is my deepest desire that we find more women occupying these and more spaces in the industry. Women in business are urged to be innovative and make use of modern technologies to push forward industrialisatization.
Source: Chronicle
June in-bound container activity eases from May, 33.7% ahead of June last year Imports at the nation’s largest retail container ports should hit yet another record in August as consumer demand continues to stretch supply chains and retailers shift from the back-to-school season to the peak shipping season for winter holiday merchandise, according to the monthly Global Port Tracker report from the National Retail Federation and Hackett Associates. “Back-to-school supplies have been hit by the same supply chain disruptions and port congestion that have affected other products this year, but retailers are working hard to ensure that school and college goods are where they need to be,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. “Strong consumer demand has outpaced supply chain operations since late last year and could remain a challenge as the holidays approach. “The continuing lack of labor, equipment and capacity has highlighted systemic issues and the need to create a truly 21st-century supply chain to ensure resiliency against the next major disruption. Passage of infrastructure legislation currently pending in Congress is a key step in that direction. We need continued focus by the administration to help address these issues as well.” Continued economic expansion keeps straining the supply chain, added Hackett Associates founder Ben Hackett. “We’re seeing a lack of shipping capacity combined with port congestion as vessels line up to discharge goods from both Asia and Europe,” he continued. “Delays are stretching to landside as port terminals struggle with space shortages, and labor challenges are affecting ports, railroads and trucking companies alike. This part of the recovery is not a pretty sight.” U.S. ports covered by Global Port Tracker handled 2.15 million twenty-foot equivalent units in June, the latest month for which final numbers are available. That was down 7.8% from May but up 33.7% from a year earlier, when many stores were closed because of the pandemic. Port Tracker projects July container traffic at 2.22 million TEUs, which would be up 15.7% from the same month last year. August, the beginning of “peak season,” is forecast at 2.37 million TEUs, which would be up 12.6% year-over-year and top May’s 2.33 million TEUs for the largest number of containers imported during a single month since NRF began tracking imports in 2002. Many retailers are moving up their shipments this year as part of their risk mitigation strategies to ensure that sufficient inventory will be available during the holidays. September is forecast at 2.21 million TEUs, up 4.9% year-over-year; October at 2.15 million TEUs, down 3% for the first year-over-year decline since July 2020; November at 2.07 million TEUs, down 1.5%, and December at 2.02 million TEUs, down 4.1%. The first half of 2021 totaled 12.8 million TEUs, up 35.6% from the same period last year. For the full year, 2021 is on track to total 25.9 million TEUs, up 17.5% over 2020 and a new annual record topping last year’s 22 million. Cargo imports during 2020 were up 1.9% over 2019 despite the pandemic. Global Port Tracker provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast; and Houston on the Gulf Coast.
Source: Home Textiles Today
Bilateral trade between Cambodia and the US remained resilient in the first half of 2021, clocking in at US$3.8402 billion, or a 32.8 per cent surge from the $2.8917 billion booked in the same period last year, despite the profound implications of the Covid-19 pandemic on international trade and the magnitude of uncertainty shocks in every aspect of the economic system. Cambodian exports to the US during the January-June period were valued at $3.6376 billion, climbed 32.4 per cent year-on-year, while imports were to the tune of $202.6 million, rising 40.3 per cent, according US Census Bureau data on Aug 7. The trade surplus widened by around 32 per cent to $3.4350 billion. In June alone, the Kingdom’s exports to the US represented $506.1 million, jumping 30.37 per cent year-on-year, and imports were valued at $28.8 million, soaring 49.2 per cent. Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on August 8 that the first half’s uplifting trade statistics in the face of the ongoing health crisis, especially exports, would be a driving force to attract fresh inward investment into the Kingdom. He stressed how remarkable these figures were, saying that international trade had taken a hit virtually everywhere. The Kingdom’s exports to the US were propped up by solid demand for finished textile products and bicycles, while imports were buoyed by cars, especially after the Cambodian government reduced a number of tariffs from the beginning of March, he maintained. He suggested that the rise in trade volume could also indicate an upgrade in diplomatic relations between Cambodia and the US. Cambodia Chamber of Commerce vice-president Lim Heng said a solid recovery in the US economy had supported a steady uptick in consumer goods across the board, most notably daily necessities such as apparel. International orders from Cambodian will pick up again once the Kingdom is able to gain a comfortable degree of control over new daily Covid-19 cases, he said. “The US is a big market. If we can maintain export growth, it’d contribute a lot to revenue collection for national and social development,” Heng said. Cambodia’s main exports to the US market were garments, travel products, footwear, bicycles and agricultural products, while the bulk of imports comprised automobiles, machinery, electrical appliances and electronics. In 2020, bilateral trade between the two countries was to the tune of $6.9213 billion, expanding 17.89 per cent from $5.8708 billion in 2019. Cambodian exports to the US were to the tune of $6.5777 billion in 2020, growing 22.79 per cent from the $5.3568 billion posted in 2019, while imports clocked in at $343.6 million, sliding by 33.15 per cent from $514 million, according to data from the US Census Bureau.
Source: The Star
