"It is a continuing scheme and a review of the rates is on" said an official, adding that there is proposal to lower the incentive rates. Commerce secretary BVR Subrahmanyam said that the scheme has been approved by the Cabinet and will be notified soon. The government is relooking at the subsidy it offers exporters to meet their need for cheap funds, and an announcement to that effect is likely in the upcoming Foreign Trade Policy. Talks are on between the commerce & industry ministry and the finance ministry to arrive at new interest subsidy rates under the Interest Equalisation Scheme that lapsed on September 30, 2021 but was granted an additional budget of Rs 1,251 crore in FY22 and provided Rs 2621.5 crore for FY23. Earlier, the subsidy rates ranged between 3% and 5%. "It is a continuing scheme and a review of the rates is on" said an official, adding that there is proposal to lower the incentive rates. Commerce secretary BVR Subrahmanyam said that the scheme has been approved by the Cabinet and will be notified soon. "The scheme exists and has been modified," he said at a conference. The commerce & industry ministry is working on the Foreign Trade Policy for 2021-26, and is likely to be announced next month. Introduced on April 1, 2015 for five years in the Foreign Trade Policy 2015-20, the Interest Equalisation Scheme is a key support programme for medium, small and micro exporters. Exporters of 416 identified products are also eligible for the benefit. Home State Governments to send their proposals for PM MITRA Parks Scheme by 15th March,2022 (Source: Press Information Bureau, February 02, 2022) The PM MITRA Parks Scheme shall be implemented on pan-India basis and is intended for holistic development of the Textile sector. Selection of the location of PM MITRA parks will be on the basis of challenge method, once the proposal is received from interested State Governments. The State Governments have been requested to send their proposals with relevant documents by 15.03.2022. The Government has approved Production Linked Incentive (PLI) Scheme for Textiles with a budgetary outlay of ₹10,683 crore for promotion of Man-Made Fibre(MMF) Apparel, MMF Fabrics and products of Technical Textiles. Benefits of PLI will be available to eligible companies in PM MITRA parks also. However the Competitive Incentive Support (CIS) under PM MITRA Parks Scheme will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for Textile Scheme. Application for registration under PLI scheme is being received on the online portal of PLI scheme which was initially opened from 1st January 2022 to 31st January 2022 has now extended upto 14.02.2022. This information was given by the Minister of State for Textiles Smt. DarshanaJardosh in a written reply in the Lok Sabha today.
Source: Economic Times
The Union Textile Ministry has drafted a new Technology Upgradation Fund Scheme, which will replace the existing Amended Technology Upgradation Fund Scheme (ATUFS). “We have formulated a new scheme. We want to bring in an element of incentivising the machinery manufacturers too,” Textiles Secretary Upendra Prasad Singh said on Wednesday. The technology upgradation fund schemes have so far supported the textile industry. The ATUFS did not include the spinning sector. The new scheme will include the spinning sector and the machinery manufacturers. The Union Budget proposes ₹ 650 crore allocation for ATUFS for 2022-23. Approval for the new scheme is expected by March and that will come with fresh allocation of funds. Apart from the total allocation of ₹12,382.14 crore in the Budget for the textile sector, the industry will see another ₹11,000 crore benefit through the Rebate of State and Central Taxes and Levies scheme and Remission of Duties and Taxes on Exported Products scheme. A scheme for integrated development of the silk sector —Silk Samagra II, which was approved recently, is another scheme with substantial budget allocation (₹875 crore) for next fiscal. The Production Linked Incentive Scheme has received 69 applications so far and the last date for submission of application is Feburary 14. With the government extending concessional tax of 15% for new manufacturing units that start production before the end of March 2024, the scheme is likely to see more investments. Textile and clothing exports for 2021-2022 will cross $40 billion as against the target of $44 billion. Though apparel exports are an area of concern, there is overall growth in exports, Mr. Singh said.
Source: The Hindu Business Line
Through her Budget proposals on Tuesday, finance minister Nirmala Sitharaman continued to support the struggling MSME sector. There were several proposals for these entrepreneurs who have been hit severely by the Covid-led pandemic. Sankar Chakraborti, ChairmanSMERA Ratings & CEO- Acuité Group decoded the most important Budget proposals for the MSME sector and the few misses which could have made the going a bit easier for these companies. What are the three most important budgetary provisions that will impact SMEs in 2022? The key provision in Union Budget 2022 is to extend the Emergency Credit Line Guarantee Scheme (ECLGS) by another year up to March 2023 and enhance the size of the aggregate guarantee to Rs 5 lakh crore with the additional Rs 50,000 crore earmarked exclusively for the hospitality segment. This is a step in the right direction to alleviate the residual stress in the MSME sector. The Budget proposal to revamp the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) would entail infusion of funds from the government. This is expected to facilitate an additional credit delivery of Rs 2 lakh crore for the MSME sector and expand employment opportunities. To encourage the indigenous manufacture of certain products in the MSME sector, the government has opted for duty rationalization. The duty exemption on specific tools and implements in the agricultural sector is being withdrawn to encourage domestic players. The custom duty exemption on steel scrap has been extended by another year to support small-scale, secondary steel producers. Further, duty exemptions have been provided on items which may be needed by MSMEs that are engaged in exports of handicrafts, textiles and leather garments, leather footwear and other goods. Which are the sectors that will gain most from the budget and which ones will be hurt most? SMEs in the contact intensive services such as hotels and tourism will benefit from the Budget as they will be eligible for additional credit under the extended ECLGS scheme. This will help them to ramp up their business after the tapering of the threat from the pandemic. Also, those engaged in the exports of handicrafts, leather goods and textiles will gain as duty exemption has been given on some of the accessory raw materials. On the other hand, we foresee a moderate increase in interest rates in fiscal 2023 with banks likely to raise their MCLR, which will start impacting the corporate sector and MSMEs in particular. Any big opportunity that the budget missed in terms of encouraging investment in SMEs? It is estimated that there were 40 SME IPOs between September 2020 and September 2021 on BSE and NSE’s platforms for SMEs. In comparison, there were 51 main board IPOs during the same period. SME entrepreneurs need long term funds to build and make their businesses resilient and this is where mobilisation of equity from retail or HNI investors become important. The government should endeavour to develop a facilitating environment where SMEs are incentivised to raise funds from public equity platforms. With or without the budget in picture, do you think the markets will reward the investors in 2022 the way it did in the last three years? It is difficult to predict the trajectory of the capital markets. However, what is clear at this stage that the acceleration in monetary policy normalization in the developed economies will make capital flows volatile in the developing economies like India. With the increase in yields on safer asset classes like the US treasury bonds, the risks of outflows in FPIs have already increased significantly. Further, there is a significant pipeline of IPOs for the Indian equity markets. Additionally, the profitability margins in most businesses may get normalised due to higher raw material and operating costs including that of manpower despite healthy revenue growth. These developments may translate to uncertain returns for equity in the current calendar year particularly for small cap companies.
Source: Times of India
The minister said that the government is working to negotiate free trade agreements or comprehensive economic partnership so that Indian exporters too get similar price advantage benefits. India is on track to achieve the $400-billion export target in the current fiscal and is negotiating trade agreements with countries like the UAE, the EU and Canada, Commerce and Industry Minister Piyush Goyal said on Wednesday. In a reply during Question Hour in the Lok Sabha, he said the prices of most of the commodities, including petroleum products, are prevailing high and because of this there is a stress on all sectors. However, international prices of finished products have commensurately increased and hence the exports of these products have not faced detriments. "For 10th month in a row, April 2021 to January 2022, India has posted over $30 billion of exports. It is a record, we have already crossed $334 billion of exports which is more than the highest ever that India has done in full 12 months period.. We are well on track to achieve $400 billion of exports," Goyal said. The minister said that the government is working to negotiate free trade agreements (FTA) or comprehensive economic partnership so that Indian exporters too get similar price advantage benefits. "We have launched FTA negotiations with the UAE, Australia, the United Kingdom, the EU, Canada. We are also in dialogue with GCC countries -- the bloc of six countries in the Middle East-- who have shown keen interest in FTA with India and we hope to launch the negotiation in the near future," Goyal said. With regard to support to small and medium industries, the minister said Rs 4.50 lakh crore government-guaranteed loans were given to 1.30 crore MSMEs during the Covid pandemic. "Government is committed to increasing manufacturing and see India as manufacturing hub," Goyal added.
Source: Economic Times
The Budget for FY ’23 – presented by NirmalaSitharaman, Finance Minister, India – is a growth-oriented one with its focus revolving on heavy investment in infrastructure…This is believed to create opportunities for more investments in export sector and generate employment, while simplifying the procedures for the industries. Undoubtedly, the Budget – presented by Nirmala Sitharaman, Finance Minister, India – is a growth-oriented one with its focus revolving on heavy investment in infrastructure…This is believed to create opportunities for more investments in export sector and generate employment, while simplifying the procedures for the industries. Especially, the capital expenditure of the Central Government will be to the tune of Rs. 10.68 lakh crore for 2022-23 which is 4.1 per cent of the GDP and will help accelerate overall growth of the economy through investments amid disruptions due to intermittent lockdowns. Now coming to textile and apparel industry, it can be derived from the budget speech that there is something for nearly every stakeholder of the textile value chain though some of the main demands of the industry such as the removal of 11 per cent import duty on cotton have not been addressed! Specific announcement for the textile and apparel industry… One of the biggest support to the apparel exporters in this Budget is the Guarantee cover under Export Credit Linked Guarantee Scheme (ECLGS) to be expanded by Rs. 50,000 crore to total cover of Rs. 5 lakh crore Credit Line till March 2023. This will be beneficial for the MSMEs. Apparel exporters are seemingly delighted due to the reinstating of duty-free facility for importing embellishments like trimming, zipper, fasteners, buttons, lining material and packaging and this is expected to be a big boost for them. Notably, this was one of main demands the industry has been asking the Government to pay attention to since long. The combination of specific and ad-valorem rate is being replaced by ad-valorem rates only and the rate for the items placed under tariff items of 6101, 6102 or 6103 (import of Men or Boys / Women or Girls Overcoats, Cloaks, Wind-Cheaters, Wind–Jackets and Women Jacket, Ensamples etc.,) has been increased from 10 per cent to 20 per cent and this will protect the domestic apparel business. The extension of the benefit of 15 per cent tax for the newly incorporated manufacturing units by one more year to March 2024 will be instrumental in bringing in fresh investments. This would specifically help in bringing new investment in the new units under PLI scheme for MMF garments, MMF fabrics and technical textiles. Skilling programmes and partnership with the industry will be reoriented to promote continuous skilling avenues, sustainability and employability. The National Skill Qualification Framework (NSQF) will be aligned with dynamic industry needs. Digital Ecosystem for Skilling and Livelihood – the DESH-Stack e-portal – will be launched. This aims to empower citizens to skill, reskill or upskill through online training. The plan to enact a new Special Economic Zones (SEZ) Act will be helpful in creating employment, increasing exports and investments. Whilst exact details are not yet available but it should also assist the apparel sector since several units in the SEZs are from the apparel industry. The Sovereign Green bonds for mobilising resources for green infrastructure will add value in reducing the carbon intensity of the economy.
Source: Apparel Resources
It has also taken care of our liquidity requirements by extending ECLGS. Most of the apparel exporters are in the MSME category and many are still struggling with the impact of disruptions caused by COVID-19 pandemic. Trimmings and embellishments like fasteners, inlay cards, linings and interlinings, laces, etc., that are used for branding and are nominated by the buyers were allowed duty-free earlier. The resumption of the facility will help apparel exporters make their products more internationally competitive. This is a big relief for small exporters,” shared Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC). “For ATUFs, the allocated amount in the Budget is Rs. 650 crore as like last year and the increased allocation is needed to clear the pending claims, and as the new scheme Textiles Technology Development Scheme is replacing ATUFs with Capital Subsidy of 25 per cent, against 15 per cent in ATUFs, the requirement of amount is more. I laud for the announcement on popularisation of One Station One Product concept and in due course of time, the transportation of domestic garments from Tirupur will increase through Rail transportation to reach the various destinations,” commented Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA) “The extension of the ECLG Scheme for MSMEs for one more year should also help the apparel industry. However, it is unfortunate that the enhanced outlay for the scheme is restricted only for the hospitality industry – as the retail industry was as badly impacted in the pandemic hospitality. Even under the current wave, retail continues to be impacted with lockdowns, partial closures, limited working hours, etc.,” Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) “The budget allocation for the textile sector stated for the year FY ’23 stands at about Rs.12,382.14 crore which is about 8.1 per cent higher than the revised budget allocation of FY ’22 which stood at about Rs.11,449.32 crore. The Government has allocated about Rs.133.83 crore for ‘Textile Cluster Development Scheme’; hence the total budget allocation for ‘Research and Capacity Building’ for textiles has increased by 73.4 per cent to reach about Rs.478.83 crore in FY ’23 as compared to the revised budget allocation of Rs.276.10 crore in FY ’22,” T. Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) “It is a future-centric budget. E-passports with chips are a good introduction, besides security may reduce renewing time for exporters like us. We hope this also extends to technology enhancement and the introduction of AI in textile mills and Made-ups space. We were very hopeful about the Government helping bring down cotton prices. That we didn’t see yet,” Vanduta Khurana, MD, Daks India Industries and CII Textiles Committee “It is heartening to note that the country is expected to grow at 9.27 per cent in the coming year, a phenomenal achievement for any country in the post-Covid period. Considering the phenomenal growth of the industry and achieving the vision of doubling the textile business size in the next five years, it is essential for the Government to allocate necessary funds and announce Technology Mission on Cotton 2.0 on a war footing. ,” Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) “The initiation of Ease of Doing Business 2.0 with industry stakeholders consultation is a much-needed one to improve our ranking. Similarly extension of one year period for tax incentives for new manufacturing units will motivate industries regarding new Capex. Using technology for crop assessment if attempted for cotton in a top priority, it will be helpful for the industry to get good market intelligence,” informed Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), Coimbatore “PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach, driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure will pull forward the economy in unison,” Rakesh Kumar, DG, Export Promotion Council for Handicraft (EPCH) “The budget puts immense thrust in manufacturing and capital expenditure which should enable the economy to grow and achieve its target of being a US $ 5 trillion economy by 2025. The positive initiative taken towards green power and the allocation of Rs. 19,500 crore for manufacturing of additional solar panels to meet the requirement of solar power in multiple sectors is noteworthy,”averred Dr. S N Modani, CEO & MD, Sangam India Ltd. “The Finance Minister presented a positive and growth-oriented budget which was overall on expected lines. No major tinkering has been done and major impetus has been given to the start-ups and reduction in taxation on digital assets is also a step in the right direction. The budget has tried to encompass all segments of the society with a focus on rural housing, MSP direct payments and Rs.2 trillion outlay for MSME,” mentioned Nivedan Churiwal, MD, BSL Ltd. “The Government has reposed its faith in taxpayers, entrepreneurs, investors, enabling it to build an open, digital and inclusive India with a 25-year vision. As there has been no reduction/relief on the personal taxation side, however, the good part is that we did not see levy of any additional tax.,” Vinod Kumar Gupta, MD – Dollar Industries Limited “We welcome the Government’s decision of implementing the initiatives under the GatiShakti scheme which will help in enhancing logistical connectivity across the country through multimodal logistics parks which will help in the movement of goods more efficiently,” stated Prashant Agarwal, MD, BRFL Textiles, adding, “Special Economic Zones such as large textiles clusters, will play a significant role in the growth of the Indian textile industry, especially for exports.” “Removal of exemptions on customs levy on certain chemicals and textiles that can be manufactured in India and provision of concessional duties on raw material that are used in manufacturing of intermediate products will boost the objective of Make in India and Atmanirbhar Bharat,” Rahul Tikoo, MD, India Sub Continent, Huntsman International (India)
Source: Apparel Resources
Operational guidelines for the Production Linked Incentive (PLI) Scheme for Textiles were issued on 28th December 2021. The approved outlay of the scheme isRs. 10,683 crore.Empowered Group of Secretaries (EGoS), as constituted and Notified vide gazette No. P 36017/144/2020-Investment & Promotion dated 10.06.2020 issued by the DPIIT will monitor the implementation of the scheme. The composition of the EGoS for monitoring of PLI for Textiles will be as under: Cabinet Secretary, Chairperson i. CEO, NITI Aayog, Member ii. Secretary, Department for Promotion of Industry and Internal Trade, Member Convenor iii. Secretary, Department of Commerce, Member iv. Secretary, Department of Revenue, Member v. Secretary, Department of Economic Affairs, Member vi. Secretary, Ministry of Textiles The EGoS chaired by the Cabinet Secretary will monitor the progress of this PLI scheme; undertake periodic review of the outgo under the Scheme; ensure uniformity with other PLIs and take appropriate action to ensure that the expenditure is within the prescribed outlay. EGoS is also empowered to make any changes in the modalities of the scheme, and address any issue related to genuine hardship that may arise during the course of implementation, within the overall financial outlay of Rs 10,683 crore.The scheme shall be valid upto 2029-30. The gestation period of the scheme is two years i.e. FY: 2022-23 to FY: 2023-2024. This information was given by the Minister of state for Textiles Smt. DarshanaJardosh in a written reply in the Lok Sabha today.
Source: PIB
Steps announced in the Budget such as extension of the ECLGS scheme, a new law for special economic zones and setting up of 100 cargo terminals will help in boosting economic growth and exports Steps announced in the Budget such as extension of the ECLGS scheme, a new law for special economic zones and setting up of 100 cargo terminals will help in boosting economic growth and exports from the country, according to exporters and industry. Vikramjit Sahney, Chair BRICS Agri Business Council, said that the announcement to promote oilseed production would help boost the domestic industry as India is currently importing 60 per cent of its oilseed requirements. The special fund proposed through NABARD to finance agri startups and rural enterprises for farm produce value chain would also promote industrial growth in the country, Sahney said. "The fertilizer subsidy allocation is 32 per cent incremental than the last year's allocation. However, it is less than the revised estimate of 2022 and hoped that the government will cover the same in supplementary grants depending upon the international prices of fertilizer inputs," he said. Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for 2022-23 with an additional outlay of Rs 50,000 crore and allocation of an additional credit provision of Rs 2 lakh crore under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE ) to meet the requirement of MSMEs would provide huge support to the industry. "The ECLGS Scheme has benefited the MSME during the peak Covid time and its extension will further infuse life in the businesses, when recovery is on the card," said Dr Sakthivel. The CGTMSE will help provide collateral-free lending and infusion of liquidity," Sakthivel said. He added that the replacement of the SEZ Act with a new legislation will make special economic zones an engine of economic growth and employment creation besides exports. The Trade Promotion Council of India (TPCI) said that the focus of Union Budget 2022- 23 on reforming the rural economy, digitalisation and modernisation is progressive and forward looking. "Reforming the SEZs has been long pending and we are happy that the government has engaged state participation to make it inclusive and cluster-based for reviving the units," it said in a statement. The increasing thrust on PM Gati Shakti and production linked incentive scheme, the economy will keep continuing its journey on a sustained growth path, the council said. Leading exporter of Mumbai and founder chairman of Technocraft Industries India Sharad Kumar Saraf said that the budget is growth oriented as there are no new taxes or surcharges imposed. "A lot of stress is laid on employment generation and infrastructure development. Support is also given to MSMEs by providing additional loan facilities. The budget will certainly boost the economy by spurring growth," Saraf said. Global trade information provider Connect2India Founder and CEO Pawan Gupta said that the proposal to simplify the customs rate and tariff structure for sectors like chemicals, textiles and metals would provide more insights and clarity on the landed cost of these products and would allow companies to make informed decision regarding global trade for the affected products. "The textile and handloom industry exports would get a further boost by providing exemptions on items such as embellishment, trimming, fasteners, buttons, zipper and lining material," he said.
Source: Business Standard
The January 2022 exports of USD 34.06 billion with a growth of 23.69 per cent has been commended by the Federation of Indian Export Organisations (FIEO), but the exporters' body has urged the government for more sops for the export sector. FIEO President A Sakthivel urged the govenment to soon announce extension of the interest equalisation scheme and allow transfer of MEIS, increase the validity of scrips to 24 months, extend RoDTEP to EOUs, SEZ and Advance Authorisation and expand usages of RoDTEP and RoSCTL scrips. “Although the government has announced a slew of measures to support exports, these extension and changes are important and need of the hour,” added Sakthivel. The top sectors, which performed well during the month were Engineering Goods, Petroleum Products, Gems & Jewellery, Organic & Inorganic Chemicals, Cotton Yarn/Fabrics/Made-ups, Handloom Products etc., RMG of all Textiles, Electronic Goods, Plastic & Linoleum and Rice. Out of these, many of them were labour-intensive sectors contributing majorly to the exports basket, which itself is a good sign, further helping job creation in the country, said FIEO ChIef. “However, imports clocking USD 52.01 billion during the month with a growth of 23.74 per cent, is a point of concern and should be analysed,” suggested Sakthivel. He recognised the efforts made by the government to help the export community and thanked Prime Minister Modi, Finance Minister, Commerce & Industry and Textiles Minister for showing confidence and trust on the exporters during these challenging times.
Source: KNN India
Reliance Industries Limited (RIL) has submitted a revised resolution plan to National Company Law Tribunal (NCLT), Ahmedabad, to acquire the debt-ridden Sintex Industries Ltd for an offer of Rs 2,700 crore to Rs 2,800 crore to the financial creditors, said sources aware of the development. The Mukesh Ambani-led RIL has reportedly entered into a partnership with Assets Care & Reconstruction Enterprise (ACRE) for the bid to acquire Sintex, said sources. The RIL offer includes payment to financial creditors and equity infusion for working capital requirements, said sources. In a BSE filing on Wednesday, Sintex Industries said the interim resolution professional has received revised resolution plans from all four prospective resolution applicants. Sintex Industries, which was promoted by Amit Patel and family, specialises in the premium fashion industry. It provides fabric to global clients such as Armani, Hugo Boss, Diesel and Burberry. Other bidders include Welspun Group' Easygo Textiles, GHCL, and Himatsingka Ventures, according to sources. "Revised Resolution Plans received from all four PRAs shall be evaluated by the Interim Resolution Professional and then shall be placed before the Committee of Creditors, for its further consideration," Sintex said in its stock exchange filing. The option of a Swiss challenge auction or an inter-se bidding was considered by the lenders recently, said sources. Sintex was founded in the 1930s as Bharat Vijay Mills, a composite textile mill in Kalol, Gujarat Lenders to Sintex got 16 EOIs Sintex was later rebranded as Sintex Industries. It deals in textiles and yarns, and has presence across major Asian, European, US and African markets. In 2017, Sintex demerged its plastic business into Sintex Plastics Technology to focus on its yarn business. In April 2021, NCLT, Ahmedabad admitted an insolvency process plea filed by Invesco Asset Management (India). Earlier, lenders to Sintex Industries had got 16 expressions of interest (EoIs), including bids from foreign fund CarVal Investors and Varde Capital-backed Aditya Birla Asset Reconstruction Company.
Source: Times of India
The new committee of the Bangladesh Cotton Association (BCA) led by president Muhammad Ayub called on foreign secretary Masud Bin Momen recently and urged for greater access to the international market and stronger price stability. Momen asked the association to explore ways to manage future challenges as Bangladesh moves into the middle-income country domain. Both sides expressed their desire to work together for exploring new markets and to strengthen supply chain solutions for the garment and textile sector, according to Bangla media reports.
Source: Fibre 2 Fashion
Listed textile manufacturers logged a staggering 152 per cent higher profits year-on-year in the October to December period of the current financial year of 2021-22. Analysts reason higher yarn prices, unexpended stocks of cotton, higher exports and devaluation of the local currency against the dollar. Among the 58 listed textile and garment companies, 44 properly disclosed their earnings data for the last two years. The total profits of the 44 companies rose to Tk 250 crore in the second quarter of the financial year while it was Tk 99 crore in the same period of the previous year. "We had a handsome amount of stock of raw material, cotton, so when yarn price rose in the market, our profits soared," said Shah Alam Miah, company secretary of Matin Spinning Mills. In the 2021 calendar year, Bangladesh imported 8.5 million bales of cotton, spending more than $3 billion. One bale equals 480 pounds or 218 kilogrammes (kg). The price of the widely consumed 30 carded yarn had increased to $4.71 per kg in December last year while it was $3.9 per kg a year ago. On average, yarn prices rose around 40 per cent. As exports of the garments sector rose after the pandemic, all the related sectors saw improved growth in their profits, he said. Between July and December, the first six months of the current fiscal year, garment exports grew by 28.02 per cent year-on-year to $19.90 billion. "Meanwhile, our utility costs dropped as we are now generating our own electricity from our generator instead of buying from United Power Generation," he said. In addition, the generator runs on natural gas instead of diesel, so the cost fell, he added. Matin Spinning Mills earned the second highest profits in the second quarter after Square Textiles. Its profits climbed 121 per cent to Tk 27.8 crore in the quarter year-on-year. In the same period, Square Textiles logged a staggering 318 per cent jump in profits to reach Tk 46 crore. Performances of textile companies was very impressive this year, which makes stock investors happy, said Emran Hasan, chief executive officer of Shanta Asset Management. "Due to the higher yarn prices, their profits grew and the price rise was expected so many of them announced expansions earlier," he said. Some Tk 600 crore was invested in the spinning sector to set up 26 new mills last year, according to Bangladesh Textile Mills Association (BTMA) "On the other hand, the dollar appreciated against the taka, which ultimately gave a boost to their profits as most of them are export based companies," he said. The interbank exchange rate hit a record high of Tk 86 per dollar on January 10, according to central bank data. The local currency is trading at more than Tk 90 per USD in the kerb market. With the higher profits, their stock price also advanced during the last few months, Hasan added. Market capitalisation of the textile sector soared 73 per cent to Tk 17,594 crore yesterday compared to that of June 1 of 2021, according to the data of LankaBangla Securities. Among the 44 textile and garment companies, 25 saw higher profits in the last quarter. Five returned to profits from loss and 14 logged lower profits, the data shows. Profits of Evince Textiles soared the most as it rose to Tk 91 lakh in the last quarter, up from Tk 1 lakh in the same period of the previous year. Profits of Mozaffar Hossain Spinning Mills jumped to Tk 7 crore from Tk 30 lakh while profits of Envoy Textiles climbed to Tk 19 crore from Tk 4 crore.
Source: The Daily Star
China sustained its upward momentum in commerce and foreign trade in 2021 amid COVID-19 containment measures, with a stellar performance to achieve stable business operation, according to the ministry of commerce. It has turned the world's secondlargest commodity consumption market, with its total trade volume of goods ranking first globally for five consecutive years. The ministry, in a recent press conference, offered statistics on the country's commerce and foreign trade performance in 2021. Foreign direct investment into the Chinese mainland, in actual use, expanded by 14.9 per cent YoY to a record high of 1.15 trillion yuan in the year. Investment in the Chinese mainland from countries along the Belt and Road soared by 29.4 per cent. China's foreign trade exceeded $6 trillion for the first time in 2021. The total import and export of goods expanded by 21.4 per cent YoY to 39.1 trillion yuan. Exports rose by 21.2 per cent, while imports went up by 21.5 per cent. Last year, China's retail sales of consumer goods rose by 12.5 per cent year on year (YoY) to 44.1 trillion yuan ($6.93 trillion). Consumption re-established itself as the key driver of economic development, accounting for 65.4 per cent of total expenditure, a Chinese government portal reported. The country’s online sales of physical goods expanded by 12 per cent YoY to 10.8 trillion yuan in 2021, accounting for 24.5 per cent of the total retail sales during the period. The country's service trade saw faster upgrades, rising by 14.7 per cent YoY to reach 4.7 trillion yuan in the first 11 months of the year.
Source: Fibre 2 Fashion
Pakistan’s textile exports decreased five percent in January of this fiscal when compared with December, starting to lose the growth momentum, which traders blame on the prevalent gas crisis that has hit the industries. “Further decline will be observed in export of textiles goods when figures of February and March would be out,” noted the textile representing trade body, which squarely blamed the gas crisis for putting the brakes on the growth momentum of the textile exports.
Source: The News
By offering buyers the opportunity to reconnect, Texworld Evolution Paris will reinforce its vocation as a partner for fashion sourcing. The fair will bring together over 200 exhibitors from 16 countries. China, Pakistan, Bangladesh, Uzbekistan, Korea and Taiwan will be widely represented, putting Asia back at the heart of European brands' sourcing. After a two-year absence in its usual form, the crossroads for the fashion industry is back in Paris. From three days, the Paris - Le Bourget Exhibition Centre will host the Texworld Evolution Paris trade fairs: Apparel Sourcing Paris for the sourcing of finished garments, Avantex Paris for innovative and sustainable textiles and products, Leatherworld Paris dedicated to the leather and related materials market, and finally Texworld Paris for the sourcing of fabrics. They will gather in one place the main global offer for fashion brands, from ready-to-wear to luxury, fair organiser Messe Frankfurt said in a press release. Leatherworld will host manufacturers from China, Thailand, Pakistan and Bangladesh. Apparel Sourcing, meanwhile, will bring together a hundred or so exhibitors from a dozen countries. Alongside the Chinese exhibitors who will be able to make the trip, the “Source In China” area, at the entrance to the show, will concentrate some twenty Chinese manufacturers. Agents and experts from Foursource, the digital partner of Messe Frankfurt France, will assist visitors, answer technical questions and ensure the link between visitors and those manufacturers who could not make the trip. In addition to the presence of Pakistani, Bangladeshi and Vietnamese exhibitors, Apparel Sourcing will be welcoming 18 companies in the Uzbek pavilion. This first participation confirms the ambitions of the Central Asian country as a player in international sourcing. Abana, a sourcing platform based in Mauritius which offers sourcing solutions in the African zone, should also not be missed. With exhibitors from around ten countries, Texworld will give textile buyers a muchneeded insight into the international offer. The Turkish and Korean national pavilions will bring together more than 50 companies. The Turkish participation has increased and will feature several national flagships, such as weavers Er-Ez Tekstil, Herboy and Karagözlüler Tekstil, grouped together in the Elite sector, alongside the Dutch quality linen weaver Northern Linen, which has a fine GOTS (Global Organic Textile Standard) certified offer. Taiwanese embroiderers New Heaven and Esperanza will also be exhibiting high quality fabrics, the latter available in small quantities (between 50 and 100m). Avantex will also host a selection of start-ups such as Tekyn (textile production on demand), Fingertip (intelligent e-commerce platform) and Komet Story (ephemeral and connected shopping experience). This re-launch exhibition will be organised in accordance with current health regulations. From now on, badges will be digitised to simplify the visitor's route, reduce the carbon footprint and limit physical interactions. A new mobile application will also be available this year. It will host all the content of the fairs (practical information, trends, etc.) and will allow exhibitors to be found by country and by category in order to optimise the visitor's itinerary and find their way around thanks to the interactive map, the release added. True to its opening mission, the Texworld Evolution Paris will offer visitors perspectives on market developments and on the orientation of demand. The art directors of the show, Louis Gérin and Grégory Lamaud, have imagined, detected and staged the creative directions that will shape the fashion of Spring-Summer 2023. Conferences, round tables, workshops and other events will also punctuate these three days of exchanges. The Agora area will also host discussions on the contribution of new technologies (AI, Blockchain) to a more virtuous fashion industry, as well as the use of food waste as a resource for tomorrow's fashion. The full programme is accessible from the Texworld Evolution Paris mobile application.
Source: Fibre 2 Fashion
