Taking another step towards making Bengal self-sufficient in producing fabric, the Mamata Banerjee government has taken the move to set up two more integrated textile parks. The parks would come up at Kalyani and Raiganj. This comes after the state government's success in ensuring a smooth progress in setting up of the integrated textile parks at Ashoknagar and Banipur of Habra in North 24-Parganas. With the setting up of two more integrated textile parks at Kalyani and Raiganj, the state is going to get four such parks that are meant exclusively for production and processing units of fabrics. The state MSME Chandranath Sinha said it is another step that has been taken following the direction of Chief Minister Mamata Banerjee to make the state self-sufficient in producing fabric. Units of power looms, spinning mills, wet processing (dying) and garmenting industries would come up at the integrated textile parks that are being developed by the West Bengal Small Industries Development Corporation Limited's (WBSIDCL). It would develop the common basic infrastructure including road, water and power supply arrangements of the two parks and it would immensely benefit the entrepreneurs. Plots would be allotted to investors on a long-term basis for setting up of power-loom and other textile related units. The site visit of prospective investors is also taking place in both the textile parks. "There is a lot of enthusiasm about setting up of these two parks as a good number of investors have shown interest to set up their units at the parks," said a senior state government officer. The integrated textile parks would come up on plots of around 33.57 acres and around 42.81 acres of land at Raiganj and Kalyani respectively. The place where the textile park is coming up at Raiganj is well connected to State Highway 10A and National Highway 34. Most importantly, it is also situated close to Raiganj Railway Station. Similarly, the one at Kalyani is connected toNH-34 connector - Rina Road - and situated close to the Kalyani Shilpanchal Railway Station. The move comes when the state government has taken a move to produce the adequate quantity of fabric for suiting and shirting in Bengal.
Source: Millennium Post
Indian textile minister Piyush Goyal recently urged Indian industry leaders to set ambitious targets as the economy is poised for a sustained spell of rapid growth. Addressing the 5th meeting of the Confederation of Indian Industry (CII) national council in New Delhi, he said there is huge scope to expand labour-intensive plastics, footwear and textiles industries. Goyal is also in charge of commerce and industry, consumer affairs, and food & public distribution portfolios. He encouraged the industry to have a greater risk appetite, invest in labour-intensive industries that may be less profitable at the beginning, but generate lakhs of jobs, and promote tribal handicraft products as part of corporate social responsibility activities. Stressing that the country is going through a sharp and strong revival, the minister said rising economic indicators indicate India is shaping up for a growth decade, according to an official release.
Source: Fibre 2 Fashion
Anxiety among garment and textile sector businessmen is increasing by the day, as January 1, 2022—the date when GST on some of their raw materials and products will be hiked to 12% from 5% —is drawing near. Business associations have written a letter to Union finance minister Nirmala Sitharaman, urging her to defer the implementation of the new rates of GST. Harish Kairpal, president of Ludhiana MSME association, said, “The GST council has decided to hike the tax to 12% on woven fabrics of silk or silk waste, woven fabrics of wool or of animal hair, woven fabrics of cotton, woven fabrics of flax, several types of textile garments, all types of woven and knitted fabrics and knitted garments. As of now, 5% GST is applicable on all these items, but from January 1, 2022, the GST will be hiked by 7%. It will be a huge burden on the textile and garment industry. It will become impossible for micro, small and medium enterprises to do business. Therefore, we have sent a letter to Union finance minister Nirmala Sitharaman requesting her intervention in the matter and deferment of this decision by at least one year.” According to Narinder Mittal, general secretary of Ludhiana Business Forums, “If the GST on textile and garment products and raw materials is hiked from 5% to 12%, it will not only make the garment costlier, but will also lead to another problem for us as we will have to infuse more capital in our business. In the present circumstances, when there is huge fund shortage and recession as well, this decision of increasing GST can prove fatal for small industries.”
Source: Times of India
Ministry of MSME is implementing following schemes to give impetus to ‘Make in India’ in MSME sector. These schemes focus on the promotion of locally produced goods in the country through empowering micro and small scale enterprises and traditional artisans: i. Prime Minister’s Employment Generation Programme (PMEGP) is a major creditlinked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector. The scheme focuses on producing goods using local talents, raw materials and machinery for domestic consumption and exports. ii. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) to organize traditional industries and artisans into clusters to make their products competitive and provide the artisans with sustainable employment. iii. Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) to create Common Facility Centres, Infrastructure Development and Flatted Factory Complexes by organizing 20 or more industries of similar value chain into clusters. iv. Gramodyog Vikas Yojana (GVY) which has components such as Honey Mission and Kumbhar Sashktikaran Programme (KSP) promotes beekeepers and rural potters respectively by providing them with bee boxes, electric wheels, toolkits, training, etc. The scheme encourages production of quality products using local traditional knowledge. v. Khadi Vikas Yojana: provides assistance to Khadi Institutions for development of Khadi and generation of employment opportunities in the country through marketing assistance, Interest subsidy, infrastructural support, capacity building, modernization of sales outlets, etc. vi. Besides, to promote ‘Vocal for Local’, Khadi and Village Industries Commission (KVIC) has started making of Khadi Prakritik Paint using local material and knowledge. It has also launched a new e-commerce platform www.ekhadiindia.com for marketing of locally produced goods. Third party evaluation for impact assessment of above schemes is done from time to time. Key findings of the evaluation report indicate that the schemes have been able to (i) provide sustainable employment to more than 5 lakh persons each year, particularly in the rural area, (ii) increase production capacity, income and employment in micro and small enterprises through cluster programme and (iii) provide assistance to rural and poor artisans in traditional industries through formation of collectives. Ministry is implementing International Cooperation (IC) scheme to enhance the competency of MSMEs, capture new markets for their products, and explore new technologies for improving manufacturing capacity, etc. The scheme supports MSMEs by way of participation in international events for exploring export opportunities, access to international business networks, technology upgradation/modernization, improved competitiveness, awareness of better manufacturing practices etc. This information was given by Union Minister for MSME Shri Narayan Rane in a written reply in Rajya Sabha today.
Source: PIB
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 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. 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 49.4% respectively. This information was given by Union Minister for MSME Shri Narayan Rane in a written reply in Rajya Sabha today.
Source: PIB
Irked over the Central Pollution Control Board (CPCB) directions to run industries for eight hours daily five days a week, the Panipat Dyers’ Association has decided to keep the units shut till the orders are revoked. In view of the rising air pollution in Delhi and NCR region, the CPCB has banned use of diesel generator sets in all 14 NCR districts and directed all industries to keep units shut on Saturdays and Sundays. The Panipat textile industry relies heavily on dyeing units. Nearly 500 registered dyeing units are operational. Of these, 75 have only PNG and LPG connections. Bheem Rana, president, Panipat Dyers’ Association, said air quality index (AQI) of Panipat was 89 (moderate) on Monday, while it was in the “hazardous” or “very unhealthy” category at several places in Delhi. He said, “The boilers take over two hours to heat up. We are left with only six hours to work. No job can be completed in such short time. We are being unfairly penalised.” Rana said the Panipat industry had been reeling under losses due to the pandemic for nearly two years. “We are in the peak season and exporters have good orders. If not allowed to operate at full capacity, the production will decline to 60%,” he rued. He asked how could the Panipat industry be held responsible for poor air quality in the national capital? “We appeal to the CPCB to withdraw the restrictions,” Rana said. Poor air quality in Delhi, NCR districts • The CPCB has told Panipat units to operate for 8 hours daily, five days/week • Dyeing unit owners fear they may lose orders as production set to decline • Can’t be blamed for poor air quality in Delhi, they say
Source: Tribune India
Company to receive consolidated amount of ₹596 crore from divestment process Textiles-to-chemicals major, GHCL Limited, on Monday announced divestment of its home-textiles business to lndo Count Industries Limited for a consolidated amount of ₹596 crore. The development comes after the company’s Board of Directors approved the divestment of home-textiles business along with the identified assets of US-based wholly owned subsidiary, Grace Home Fashions LLC (GHF). The decision on divestment of textiles division comes on the heels of GHCL's ongoing process of demerger of textiles business into GHCL Textiles Limited. The company has been in the segment for past 15 years but it has not been a strategic fit for the company's growth. Of the ₹596 crore consolidated transaction, the home-textiles business will be transferred for a consideration of ₹539 crore, including ₹340 crore as fixed consideration and ₹199 crore towards net realisable current assets to be paid by lndo Count to GHCL. Also, the GHF will transfer identified assets to lndo Count Global Inc., USA, a US-subsidiary of lndo Count, for an agreed consideration of ₹37 crore. Additionally, the company expects to realise ₹20 crore on its own account. GHCL's home-textiles undertaking had a total income of ₹454.98 crore for FY21, with networth of ₹384.44 crore. lndo Count Industries is a listed entity having interests in the manufacturing of hometextiles, including bed sheets, pillow covers, and comforters. The company has revenue from operations at ₹2,514.74 crore, with Profit Before Tax at ₹352.58 crore. "This is a significant step towards achieving a formidable leadership position in the hometextile bedding business ‘globally’. The new enhanced capacity will fuel growth for Indo Count to efficiently scale and serve a wider spectrum of customers and markets thereby increasing its global market share," Anil Kumar Jain, the company’s executive chairman, said.
New demerger plans Meanwhile, GHCL’s Board of Directors have approved modifications to the ongoing scheme of demerger of the entire textile business. It has proposed a withdrawal of the current scheme of demerger for NCLT approval, and proposed a demerger of the remaining textiles business, the spinning division, to GHCL Textiles Limited. This will have mirror shareholding as that of GHCL Limited, it said. "GHCL plans to utilise the cash flow from slump sale of HT Business to focus on its core business, i.e., chemical and spinning business," said RS Jalan, Managing Director, GHCL. The company expects to complete the slump-sale of HT business by the end of March 2022 subject to regulatory, shareholders and other approvals. Transaction Square LLP and Anagram Partner LLP have acted as the transaction advisors and legal advisors to this transaction respectively.
Source: The Hindu Businessline
Soren inaugurates 4 pvt textile units; hands over job letters to 2,000 Efforts are on to revive the pandemic-hit economy of the state and create jobs by bringing investments here, Jharkhand Chief Minister Hemant Soren said on Monday while inaugurating four textile units. He also distributed appointment letters to some 2,000 persons who got employment in the industrial units related to textile. "For almost one and a half years, the activities in our state including the country and the world have come to a standstill... It was the priority of the state government that as soon as the lockdown is over, a better framework should be made in relation to how to connect more and more people with employment," Soren said. He inaugurated four textile units - Kishore Exports, The West Band, Shree Ganpati Creation and Valencia Apparel, based in Ormanjhi (Kulhi). Of the 2,000 people who got employment in total 9 textile industry units including the four inaugurated on Monday, 95 per cent hail from Jharkhand and 80 per cent are women, a statement from the state government said. It said the government will ensure that 10,000 people get employment in textile sector in the coming six months. Soren said there is no dearth of talented youth and women in the state and the government is committed to provide a dignified life to them. He said it is the policy of the state government to ensure that 75 per cent of the manpower in various industrial institutions working in Jharkhand should be from the state. The CM said the state government is moving ahead with a better action plan for women empowerment. Women who received appointment letters also include those who were working in states like Tamil Nadu, Andhra Pradesh and Kerala before the lockdown, the statement said, adding that the state government had assured them of employment in their villages or districts. Soren said that under the better textile policy, in the coming six months, 10,000 people working in the textile sector will get employment and all preparations have been made for it.
Source: Republic World
India currently has the fourth largest foreign exchange reserves in the world, Minister of State for Finance Pankaj Chaudhary told Lok Sabha on Monday. As on November 19, 2021, he said the forex reserve stood at USD 640.4 billion. India currently has the fourth largest foreign exchange reserves in the world, Minister of State for Finance Pankaj Chaudhary told Lok Sabha on Monday. As on November 19, 2021, he said the forex reserve stood at USD 640.4 billion. Replying to another question, he said the details of the holders of P-Notes/ offshore derivative instruments (ODIs) as well as beneficial owners of holders of ODIs, identified in terms of Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, are reported to Sebi on a monthly basis by ODI issuing foreign portfolio investors (FPIs). Further, ODIs issuing FPIs are required to maintain with them at all times the KYC documents regarding ODI subscribers and make them available to Sebi on demand, he said. In reply to another question, Chaudhary said the total excise duty, including cesses collected from petroleum products, during past seven financial years (2014-15 to 2020- 21) stood at about Rs. 16.7 lakh crore. "The total central excise duty on unbranded petrol was Rs 9.2 per litre in 2013-14, while that on unbranded diesel was Rs 3.46 per litre. At present, the total central excise duty on unbranded petrol is Rs 27.9 per litre and that on unbranded diesel is Rs 21.80 per litre," he said. The excise duty rates on petrol and diesel have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the prevalent fiscal situation, he said.
Source: Economic Times
For the first half of FY22, the absolute real GDP is still lower than in the first half of FY21. Growth remains inequitable; upper income strata are spending, while lower levels of income strata are unable to do so After a stellar Q1FY22 GDP at 20.1% year-on-year, Q2FY22 GDP for India at 8.4% is surely a great number to look at—especially when India emerges as the fastest growing economy in the Covid-19-induced new normal. The markets have been joyous of the fact that, in Q2FY22, the absolute real GDP of Rs 3,573 billion is larger than the absolute real GDP reported for Q2FY20, at Rs 3,561 billion. But for the first half of FY22, the absolute real GDP is still lower than in the first half of FY21. No doubt, gradually and surely, India is managing to crawl out of the Covid-19-related slowdown. But even as the headline remains robust, a recent RBI study highlights that the negative output gap is still significant, implying the economy is yet to fire all cylinders. Importantly, the critical understanding needs to be on whether Covid-19 has inflicted a durable damage to the economy and what could be the measures that need to be employed to mitigate or at least reduce its impact. On one hand, the organised production sector is back on its feet with profits largely in the black. Business confidence surveys conducted by RBI tend to indicate that the mood is relatively buoyant. Conditions for a pick-up in private investments are also clearly in place as most companies chose to deleverage and hence their balance sheets look healthy. Continuing negative real interest rates as well as government’s Production Linked Incentive (PLI) scheme are likely enablers. The gross fixed capital formation (GFCF) as a proportion of GDP at constant prices has risen to 32.0 against the previous quarter’s 31.6. On an absolute basis, real GFCF was reported at Rs 1,142 billion, higher than the Rs 1,126 billion of Q2FY20. But it is largely estimated that most of this capital build-out is due to government expenditure, rather than private expenditure. With capacity utilisation levels continuing to remain low, manufactures (beyond a few sectors) would not be immediately keen to build up more capacity. The crucial element for the economy going forward, therefore, would be to understand how the consumption drivers are shaping up. The private final consumption expenditure (PFCE) remains the most crucial contributor to the economy with its 50%-plus share in GDP. PFCE is yet to recover back to the pre-Covid-19 phase, even as it shows a 9% quarteron-quarter growth in Q2FY22. This is even true for the government final consumption expenditure (GFCE), and this has degrown by 14% quarter-on-quarter in Q2FY22. Cumulatively, PFCE and GFCE in the first half of FY22 continue to be lower than in the first half in FY20. Let’s now focus on another area—generally not an area of focus as economists discuss GDP—i.e. ‘valuables’. We note that this item has jumped by 603% quarter-on-quarter in Q2FY22 and is also up by 183% compared to the same quarter last year. As a proportion of GDP, ‘valuables’ in Q2FY22 was at 3.3% in real terms, up from a meagre 0.5% in the previous quarter. What exactly are these valuables? These are expensive durable goods that do not deteriorate over time and are not used in consumption or even production and are acquired primarily as a store of value. Examples are works of art, precious stones and metals, etc. This indicates that the excess savings that had probably been piled up by the upper strata of the society during Covid-19 is now being spent for these purposes. The above argument clearly indicates that growth remains inequitable; the upper income strata are spending while the lowest levels of income strata are not being able to. With consumption expenditure a function of one’s income, this indicates that incomes have still failed to recover to the pre-Covid-19 era, even as unemployment rate has come down to near pre-Covid-19 phase. Given this stress, the government has continued to provide free foodgrains and the scheme that was to end in November 2021 has now been extended to end-March 2022. The rural sector remains under stress, even as agriculture production has been robust. There continues to be a large gap between employment provided and work demanded under the rural employment guarantee scheme—implying that a large segment of the labour force may not have yet returned to urban jobs and the rural workforce has not been able to find jobs outside of MGNREGA. This is a reason why the government has allocated additional Rs 250 billion for MGNREGA under the 2nd supplementary grant that was tabled in Parliament. Rural wage growth has been poor, especially for non-agricultural jobs. This had increased by 2.7% in August 2021 on a nominal basis, a negative number when inflation is netted out. In conclusion, even as headline growth numbers appear robust, a deep dive into the numbers shows some fault lines. This is very important for policy-making. The government would have to continue to support the economy with its redistributive policies and this may have some implications for its capital spend. Further, with RBI assessing the negative output gap as large, the accommodative monetary policy will also continue, even at the risk of allowing for a slightly higher inflation level in the economy.
Source: Financial Express
Business situation along the global textile value chain is very good, as per a survey by the International Textile Manufacturers Federation (ITMF). On an average across all regions and all segments, the situation has improved significantly since the 10th survey in September. The textile industry is also expecting a further improved business in the future. In the first half of November 2021, the ITMF conducted the 11th ITMF Corona-Survey among more than 330 companies around the world in all segments along the textile value chain. For the fourth time since May, companies were asked the same set of questions about their business situation, expectation, order intake, order backlog, and capacity utilisation rate. The balance between companies with a good and a poor business situation jumped from +10 percentage points (pp) to +28 pp. When it comes to business expectations in six months’ time (May 2022), the balance is +33 pp. This means that significantly more companies are expecting business to be more favorable than less favorable by May 2022. Nevertheless, expectations were slightly higher in the previous surveys, ITMF said in a press release. A look at the different regions has revealed that the business situation improved on an average in most regions except for East Asia. Business expectations are optimistic in all regions. As for the different segments, the gap between the upstream segments – fibre producers, spinners, and textile machinery producers – on the one hand and the downstream segments – weavers/knitters, finishers/printers, and garment producers – on the other hand is narrowing. As far as order intake is concerned the very positive situation (+40 pp) is the source for the above-mentioned very good business situation. Order intake expectations increased again from an already high level to +41 pp, the release added Order backlog has remained almost unchanged since May and is around 2.5 months. By nature, the textile machinery segment has on average a much longer backlog (6 vs. 1.5 months for spinners). The capacity utilisation rate has increased slowly but continuously since May 2021, indicating that the supply chain disruption is still a big - but hopefully diminishing - concern.
Source: Fibre 2 Fashion
Appreciating the export policy of the government, Khyber Pakhtunkhwa Textile Mills Association (KPTMA) Chairman Salim Saifullah Khan on Monday urged the government to revise the discount rate to 6 percent per annum and also provide special tariff of electricity and gas to the export-oriented textile industry. In a statement, he appreciated the policies of the government due to which, he said, the textile exports during the last five months had reached $ 7.834 billion. Salim Saifullah said that the textile exports of the current year had increased by 29 percent as compared to $ 6.052 billion in the corresponding period of last year. He said he was pleased to witness that the textile exports in November 2021 were around $1.747 billion, which is 36 percent higher as compared to $1.286 billion. “The textile exports in the financial year 2021 have increased by 23 percent and crossed over $ 15.4 billion as compared to the preceding year during which textile exports was $ 12.526 billion,” he added. He urged the government to continue with the current policies and if possible revise the discount rate to 6 percent per annum and also provide special tariff of electricity and gas to the export-oriented textile industry which would lead to a further increase in exports thereby minimising the trade deficit and improving the current account deficit. He also urged the government to continue the supply of the gas to the export -oriented sectors and co-opt the energy policies and prices followed in the neighboring countries.
Source: The News
Made in Bangladesh" is a brand which now resonates around the world, thanks to the size and global reach of our RMG industry. But what does it mean to end consumers? How does it resonate with the people who wear the clothing that garment workers toil to produce in our factories? Having had the good fortune to travel a great deal these past two decades, I can say that our country's branding can offer mixed messages. For many Western consumers, it is associated with cheap clothing and a business model which sees Europe, the US and other Western countries outsource low-cost industries to the Global South. "Made in Bangladesh" has also developed some unsavoury connotations since the Rana Plaza collapse. The image of garment workers being crammed into unsafe factories—which no longer holds true for Bangladesh and needs to be stated—is one which has been hard to erase from a marketing and PR standpoint. "Made in Bangladesh," then, offers mixed messages around the world. It does not have the standing of, say, "Made in Germany" or even "Made in England," but, it is a brand on the world stage—for good or bad. How can we improve it, then? Telling people about the provenance and authenticity of the products they purchase is becoming an increasingly powerful marketing tool in a crowded global market. With so many products fighting for audience and market share, and so much social media noise, gaining cut through and creating a memorable impression with one's audience is a huge challenge. I believe there are opportunities for the RMG industry of Bangladesh here. There is a growing interest in where and how products are made among consumers, and it is up to us, as the world's second largest producer of clothing, to respond to these new market dynamics. Technology can play a key role here. In the textile and fashion space, we are increasingly seeing technology being used to track and trace textile fibres and garments from one part of the world to another, with blockchain also being used along the way. These generally see a unique "marker" being applied to textile fibres so that it then becomes possible to identify them along supply chains. Technological solutions like this are increasingly being demanded by our buyers in order to satisfy the requirements around supply chain transparency. This kind of technology is certainly the next big thing in our industry, and it is important that we, as suppliers, understand it and realise how it can be utilised. Taking one recent example from another country: a traceable textile specialist has just announced a partnership with an industrial park developer in Africa to supply fully traceable cotton from Benin. This new pilot programme will enable spinner-to-garment traceability on products, offering huge potential to grow and develop Africa's cotton sector. How we can make this kind of technology work in Bangladesh is something I believe our business and trade leaders need to look into now. I know that, just recently, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made announcements around an increased focus on recycled products. As I have written previously, fashion is already asking supply chains how they can help boost recycled products in their collections, and a number of buyers are working with Bangladesh in this area. Suppliers in Bangladesh need to be looking at how they can forge links with textile recyclers. But perhaps we can combine the two? One of the challenges for garments containing recycled materials is that it is not always possible to be 100 percent sure whether the materials in the garment are what is claimed. It could be recycled content, but there have been stories in the news lately that virgin fibres are being used in their place. This is one area where traceability solutions could come to the fore, and there is no reason why Bangladesh should not help lead the way. Could Bangladeshi apparel makers team up with recycling partners and traceable tech companies to provide fully traceable garments, where it is possible to provide, via a barcode on the end product, the precise content of the clothing? This is the futuristic direction our industry is heading to. Bringing this kind of added value to end clothing products gives a whole new meaning to the term "Made in Bangladesh." It is a brilliant way to help us on our rebranding journey, shifting away from a country which simply produces staple clothing items to one which creates clothing that is made using recycled fibres, is fully traceable and can demonstrate the kind of authentic sustainability values that brands and their end consumers are looking for these days. At present, there are all manners of recycling projects globally seeking business partners. Likewise, in the traceable fibres space, there are small but a growing band of companies offering end-to-end traceability solutions. Our suppliers and, at a broader, more strategic level, our industry leaders and even the government authorities need to be making connections with these companies to see where synergies can be developed. Our buyers also need to be in on these conversations. Our industry is changing—and at a faster rate than one could imagine. If we don't embrace these new technologies, we will be left behind. So, let's get behind them and use them to our advantage, as a way to add value to what we do and freshen up the "Made in Bangladesh" brand, giving it extra dimension and meaning in our increasingly interconnected global market.
Source: The Daily Star
Kristalina Georgieva, managing director of IMF, called on global cooperation to control the Covid-19 pandemic and support the economic recovery Kristalina Georgieva, managing director of the International Monetary Fund (IMF), on Monday called on global cooperation to control the COVID-19 pandemic and support the economic recovery as the new Omicron variant has spread to over 40 countries around the world. "The global economy has continued to recover, but the recovery faces many risks, including the uncertain path of the pandemic amid the arrival of new variants, and the outlook on inflation," Georgieva said in a statement at the conclusion of the sixth "1+6" Roundtable convened virtually by the Chinese authorities. "To address these challenges, urgent policy action is needed to control the pandemic, limit scarring, and transform the global economy," Georgieva said, stressing four areas for global cooperation. First, urgent action is needed to reach the IMF's pandemic proposal to vaccinate 40 per cent in each country by the end of this year and 70 per cent by mid-2022. Second, countries need to cooperate to reduce trade tensions and strengthen the multilateral trading system, which is a key engine for growth and jobs. Third, more ambition is needed to accelerate the transition to net-zero carbon emissions and to support climate adaption efforts, tapping all policy levers available. Finally, many developing economies will need the global community's support in their recovery, as they face shrinking fiscal space and rising debt burdens.
Source: Business Standard
Industry insiders said that Indonesia is not a big market for Bangladesh. So, their safeguard duty will not have much impact The safeguard duty, slapped by Indonesia recently will not have much impact on the apparel export of Bangladesh, industry insiders hope. They also said that Indonesia is not a big market for Bangladesh. So, their safeguard duty will not have much impact. Moreover, it is a competitor of Bangladesh too. However, it is also a promising market for Bangladeshi RMG items. Although Bangladesh exports less here, this will be threatened, they added. Talking to Dhaka Tribune, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that they don't think this will have a big impact on Bangladesh because the market size in Indonesia is very small for Bangladesh. Moreover, it has given the same policy to other exporters, he added. “Indonesia itself is a big garment manufacturer. So, this market has no potential, no chance of expanding in the future. Besides, their currency is very weak, which is why we are not thinking about it,” he added. Shahidullah Azim, vice-president of the BGMEA echoed the president and said that Bangladesh is not worried about the safeguard duty of Indonesia. “Indonesia is not a big market for our apparel items, rather they are our competitors in the global arena,” he added. He also said that Bangladesh exports very little amount of apparel goods there and their new tariffs will not have a substantial impact on the exports of Bangladesh. “However, we will urge the government to take necessary measures to resolve the disputes through diplomatic channels,” he added. Recently, the committee on safeguards of the World Trade Organization (WTO) circulated a notification on the imposition of the safeguard duty for a three-year period by the Indonesian Ministry of Finance. According to the circular, Indonesia has slapped safeguard duty, ranging between $1.33 and $4.34 per piece, on the import of almost all apparel items from Bangladesh and other countries to protect the interests of the local industry of Indonesia. The rate of safeguard duty will go down every year. In the second year, the duty will be between $1.26 and $4.12 per piece while in the third year it will be between $1.20 and $3.91, said the circular. Meanwhile, China, Singapore and Vietnam currently enjoy duty-free access to Indonesia, whereas Bangladesh has been facing a 25% tariff for apparel export. BGMEA Director Mohiuddin Rubel said that Indonesia imposed this safeguard duty despite the fact that they could not prove a causal link between the surge of their apparel imports and domestic market injury. “They made a one sided decision, Bangladesh may win if they go for dispute settlement through WTO,” he added. He also said that Indonesia is also not a significant market for Bangladesh as it exports only around $30 million and the total import of Indonesia from the world is around $630 million. “So, this is not a big loss for us in terms of market, but Bangladesh should also send a strong signal against such measures,” he added. According to the Export Promotion Bureau, Bangladesh exported apparel goods and apparel accessories worth $34 million to Indonesia in FY21, which was around $29 million in FY20, $30 million in FY19, $20 million in FY18, and $13.8 million in FY17. This data showed that the export of apparel items to Indonesia experienced a rising trend over the last five years. Moreover, Bangladesh exported the textile items to Indonesia worth around $7 million in FY21 and around $3 million in FY20, said the EPB data. Bangladesh imported over $1.94 billion worth of goods from the Southeast Asian country where the garment items were worth of $187 million, including $133 million of fibres. The safeguard duties are state levies that can be imposed on imported goods in case of an absolute or relative surge in the import of goods detrimental to similar domestic products or which could cause heavy losses to the domestic industry. Indonesian Safeguards Committee (KPPI) introduced the safeguard measures following an investigation on Bangladesh's apparel exports to Indonesia for the 2017-2019 period. The BGMEA and the Bangladesh Trade and Tariff Commission shared their arguments, stance, and observations on the matter last year. A hearing took place in November last year on the matter. Effective from November 12 of last year, Indonesia has, however, excluded the developing-countries from the safeguard duty on headwear and neckwear if their exports contribute less than 3% of the items to Indonesia. However, the World Federation of the Sporting Goods Industry, a Switzerland-based organization, alleged Indonesia saying that it had violated WTO rules to impose the safeguard measures.
Source: Dhaka Tribune
In a written testimony submitted to the US House Ways and Means Trade Subcommittee, National Council of Textile Organisations (NCTO) president and chief executive officer Kim Glas highlighted China’s rise to dominance of global textile and apparel production, its adverse impact on the US textile industry. He sought closure of the Section 321 De Minimis Tariff loophole. He detailed ways to strengthen onshoring and nearshoring of supply chains, and offered recommendations on the critical policies needed to address these illegal trade practices and rectify inequities. The hearing was on supporting US workers, businesses and the environment in the face of unfair Chinese trade practices. “China holds the dubious distinction of being the world’s leading purveyor of illegal trade practices that are designed to unfairly bolster a blatantly export-oriented economy,” Glas said. “These predatory practices take many forms, from macroeconomic policies that grant across-the-board advantages to their manufacturers, to industry specific programs intended to dominate global markets in targeted areas. The US textile industry has been a longstanding victim of China’s predatory export practices,” he was quoted as saying by an NCTO press release. “China’s virtually unlimited and unrealistic pricing power coupled with its subsidies and lack of enforceable labor and environmental standards strips benefits and undermines policy objectives throughout the US free trade and preference programme structure,” he further noted. “A programme of maximum pressure must be developed and fully enforced to reconfigure textile and apparel sourcing patterns that currently place an unhealthy and heavily weighted dependence on China,” he added. He urged the government to enact tax incentives and other targeted critical investments to strengthen Western Hemisphere trade relationships and re-shore manufacturing; step up enforcement of forced labour of Uyghurs and others in the Xinjiang Uyghur Autonomous Region (XUAR); firmly maintain Section 301 penalty duties on China for finished textiles and apparel products; and strengthen buy-American practices for personal protective equipment and other essential products. He also sought immediate passage of the Miscellaneous Tariff Bill (MTB) to help manufacturers with a limited list of critical inputs not made in the US and review or close the mechanism in the MTB renewal that allows for finished products; and block expansion of the generalised system of preferences (GSP) to include textile and apparel products.
Source: Fibre 2 Fashion
