The central government has decided to extend the relief in custom duty and agriculture cess given to textile importers on import duty till 31 October. It must be noted that the earlier exemption given on 13 April this year was supposed to last till 30 September. Commenting on the topic, Zee Business's Tarun Sharma said that Textile importers were looking to capitalize on this as Cotton prices are already at 6-month low. Secondly, the government's decision to extend the relief by extending the date for the exemption in custom duty and agriculture cess on import will help their business. This will help in import as the international prices are also down, said Sharma. Finally, he also added that this will also allow the textile importers to import cheap cotton and store it until the season in India begins.
Source: zeebiz
Russia's envoy Denis Alipov underlined the strength of bilateral ties with India, saying the positive dynamics of trade between the two countries will continue despite sanctions against Moscow. Russia's envoy Denis Alipov on Tuesday underlined the strength of bilateral ties with India, saying the positive dynamics of trade between the two countries will continue despite the West's sanctions against Moscow. In an interview with Sputnik News India, Alipov said there were certain difficulties with trade after the start of the Ukraine conflict but added that both countries have successfully overcome most of these barriers. He said sanctions will certainly throw up challenges but the cooperation will continue based on common interests.
"Unfortunately, in the first months after the launch of the special military operation in Ukraine there were certain difficulties with supplying Russian goods to India and vice versa. However, today we have successfully overcome most of these barriers. We are confident that Indian exports to Russia (including science-intensive ones) will gain momentum in the near future," he said. The envoy noted that the goals outlined in December 2021 at the annual bilateral summit in New Delhi are fully consistent with the enormous potential of the bilateral relations. "The India-Russia partnership operates on all sorts of levels. We are expanding cooperation in communications, diamond processing, forestry, healthcare and pharmaceuticals, tourism, railroads, metallurgy, civil aviation, shipbuilding and oil refining. Our military and military-technical cooperation is being strengthened," he said. The Russian ambassador said the dynamics of bilateral trade speak for themselves. "According to India's statistics, from January to April 2022, it amounted to USD 6.4 billion. This is almost twice as much as for the same period last year. If we maintain these volumes throughout the year, we will have a turnover of more than USD 19 billion by the end of 2022. To put this in context, let me remind you that in the previous year we had an absolute record of USD 13.6 billion." Alipov said that Russia sees good prospects for Indian pharmaceutical products, leather and textiles, agricultural goods, components for machinery and equipment, telecommunications equipment, organic chemistry products. "We expect growth in mutual turnover of services in such sectors as tourism, finance and insurance, telecommunications and information technology, transport and construction. We have great hopes for the implementation of the International North-South Transport Corridor (INSTC) project," he said. Since the start of the Russia-Ukraine war in February, the US and EU along with other partner countries have imposed several packages of sanctions against Russia, including targeted restrictive measures, economic sanctions and diplomatic measures. The aim of the economic sanctions is to impose severe consequences on Russia for its actions and to effectively thwart Russian operations in Ukraine and cripple its economy. Alipov said the withdrawal of many western companies from the Russian market opens up many new opportunities for Indian businesses. "The Russian business community is very serious about strengthening ties with India. Russia invites Indian companies in the aviation and metallurgical industries, in the wood-processing chain, and firms producing consumer goods for business cooperation," the envoy said. "Our main task today is to adjust our trade and economic relations to the new realities, to synchronize the payment systems of the two countries, giving priority to the increased use of national currencies," he added.
Source: Business Standard
The government has extended the import duty exemption for cotton to October 31. In a notification dated July 4, the Ministry of Finance, said the government has amended its notification dated April 13 and the import duty exemption that was given for cotton till September 30 has been extended to October 31. The notification evoked mixed response from the textile industry. Industry sources said the trade and industry had contracted 17 lakh- 18 lakh bales of cotton till now from other countries so far this season. With container shortage, only about 15 lakh bales or lower would reach India by September. The remaining bales would land only later and hence, it was essential to have the duty exemption extended till the end of October. The mills needed quality cotton till mid-November and only after that, arrival of new season domestic cotton would pick up. However, one of the textile mill owners said domestic cotton was available at ₹85,000 a candy now while imported cotton cost ₹ 1.1 lakh per candy. So, mills that had already booked overseas cotton, would now get it at relatively higher prices. Besides, yarn demand was low. A cotton trade source said that if the notification had been issued last month, more cotton would have been contracted and it would have eased the cotton situation in the country much earlier.
Source: The Hindu
• Textile sector flashes signals of global demand slowdown Indian textile producers are witnessing initial signs of a demand slowdown as high energy and food prices have weakened demand for products such as curtains and bedspreads in the top export markets of the US and Europe, textiles secretary Upendra Prasad Singh said. “It’s a fact that inventory levels are high at the moment. Due to high inflation in the US, demand has slowed, especially for home textile products as it is more price-sensitive than apparel and garments," Singh said in an interview. The latest readings of manufacturing and services activity indicate that the economic outlook is darkening in the US and Europe. High energy costs because of the war in Ukraine, supply-chain disruptions because of pandemic-related lockdowns in China, surging commodities prices, and rising interest rates are increasing the risk of recession. Japan’s Nomura said the US and EU could enter recession in the next 12 months as there are increasing signs of the world economy entering a “synchronized growth slowdown", and that countries can no longer rely on a rebound in exports for growth. India’s exports, too, have begun moderating on a sequential basis after touching a record high in FY22. Meanwhile, a sharp surge in oil and gold imports has pushed the nation’s trade deficit to a record in June. “Demand is not as robust as it used to be a year back, but opportunities are coming up as well. Several countries are adopting the China-plus-one strategy. Sri Lanka has also been vacating space in the sector. The free-trade agreements (FTAs) with the United Arab Emirates and Australia will also push up export growth," he added. Sachchidanand Shukla, chief economist, Mahindra Group, said cotton prices are set to weaken amid slackening demand and global recessionary fears. He added that a better crop outlook could also drive cotton prices lower. Textiles secretary Singh said the government would soon launch the second round of production-linked incentives (PLI) in textiles to boost production of apparel and garments as they got limited benefits in the first round. Textile export growth is crucial as India’s share of ready-made garments has dropped from 6% in FY10 to 4.2% in FY21 as Bangladesh and Vietnam grabbed market share. India’s share of cotton yarn, fabrics and handloom products inched up from 3% in FY10 to 3.9% in FY16 and then fell to 3.4% in FY21, Morgan Stanley said in a note. “Growth in apparel and garments has not happened as it should have. We have been stagnant in this sector for quite some time. Therefore, ₹4,500 crore would be allocated in the second PLI. We have been facing tough competition from Bangladesh and Vietnam because they have FTAs with European countries. A boost to apparel and garments is especially beneficial for women workers as this sector employs a large number of women. Besides, we have also proposed lowering the investment threshold this time to bring in more investments," Singh added. The textile secretary added a weakening rupee and easing cotton prices would help increase India’s competitiveness. Textile makers had been asking for a ban on cotton exports, but easing cotton prices meant that government intervention is no longer required. According to Apparel Export Promotion Council chairman Narendra Goenka, textile export growth volume may drop 10% this year due to softening demand.
Source: Live Mint
• Registration of manufacturing companies has jumped to its highest-ever levels in the last seven years, the report also added, that the share of manufacturing companies in total registrations neared its highest level in the past decade. The production-linked incentives (PLI) scheme which is expected to boost the manufacturing sector has the potential to 4% to GDP per annum in terms of incremental revenues. The scheme which is aimed to offering nearly ₹2.4 lakh crore incentives in key business areas over the next five years, has seen maximum response from the electronics, auto components, and pharma sectors, according to Emkay Investment Managers. According to the Emkay Global research report cited by PTI, stated that manufacturing companies are adding capacities due to robust returns and this is evident from the number of new manufacturing companies registered. Registration of manufacturing companies has jumped to its highest-ever levels in the last seven years, the report also added, that the share of manufacturing companies in total registrations neared its highest level in the past decade. Further, as per the report, the number of environmental clearances sought and granted also stood at its highest ever in FY22 - which was 10x of FY15. As per the report, in the past domestic manufacturing took a beating due to demonetisation, badly rolled out GST, and the Covid-19 pandemic which led to nationwide lockdown dampening consumer demand. Thereby, manufacturing companies have been reporting dismal RoCEs (return on capital employed) till FY18. However, ROCEs have now improved to about 20% in FY22 boosted by tighter working capital cycles, while the cash return on capital employed came in highest in the financial year. Also, the report said that the difference between cash ROCE and comparable investment is one of the highest and the attractiveness of cash returns coupled with better capacity utilization has put manufacturers on the front foot. Vikaas M Sachdeva, the CEO of Emkay Investment Managers, which is a subsidiary of Emkay Global said that another enabling factor is rupee depreciation against the Chinese yuan, making India more competitive on the manufacturing front, and the key beneficiaries of these developments are auto and auto components, textiles, chemicals, and capital goods. In the Union Budget 2022-23, Finance Minister Nirmala Sitharaman said that PLI Schemes have the potential to create an additional production of ₹30 lakh crore.
Source: Live Mint
The dollar stood tall on Wednesday, holding at a 20-year peak against the euro and multi-month highs against other major peers as higher gas prices and political uncertainty renewed recession fears and sent investors scrambling to the safe-haven currency.
The euro was at $1.0262, only a fraction above its overnight low of $1.0236, its weakest since late 2002.Sterling was also trading down slightly at $1.1965 just off its 18-month intraday low hit overnight, and the Aussie dollar was under pressure at $0.6816."There's no investment case to be long euro right here, right now. No one's buying euros other than just as a trade," said Chris Weston, head of research at Melbourne-based brokerage Pepperstone. He pointed to a 100% rally in European gas prices in the last 16 days which he said had left the European Central Bank with a brutal juggling act. “You’ve got high inflation which they need to raise rates towards but you've got a trade deficit in Germany now, and falling growth. It's not even a matter of recession, it's a question of how deep that recession gets and how prolonged," he said.Traders told Reuters of a major dollar order in early London trading that sparked a chain reaction and sped the euro's drop as it broke through its 2017 low. The euro's tumble, allied with declines in commodity currencies due to lower oil prices, left the dollar index at 106.46, just off its own overnight 20-year peak. The euro's drop against the pound was much more muted however, slipping just 0.2% on Tuesday, as sterling was hit by fresh political turmoil. Prime Minister Boris Johnson's premiership tottered on the brink after the resignations of two senior UK cabinet ministers - finance minister Rishi Sunak and health secretary Sajid Javid - over his leadership. In contrast the recently-under-fire Japanese yen gained a little support from some safety bids, with the dollar dropping 0.2% to 135.5 yen. "So far the yen is the currency of choice as it sucks in the obligatory safe-haven flows," said Matt Simpson, a senior market analyst at City Index. "Yet momentum remains low relative to moves overnight, suggesting traders are erring on the side of caution without venturing into panic mode - on hopes that the dire data from Europe doesn't lead to contagion," he added. Bitcoin managed to sit out the turmoil, still hovering around the $20,000 level from which it has been unable to break significantly in either direction for the past month.
Source: Business Standard
Haryana Deputy Chief Minister Dushyant Chautala said that the state government will soon implement the 'Haryana Aatmanirbhar Textile Policy 2022-25' in the state. While this will help in giving wings to the textile industry in the state, MSMEs will also get a boost. The Deputy CM, who also holds the charge of Industries and Commerce Department, said today that the state government is coming up with 'Haryana Aatmanirbhar Textile Policy 2022-25' to promote textiles. He said that it is our endeavour that more and more youth of the state should join MSMEs so that they themselves become employable and are able to provide employment to other youths also. Chautala said that in the last few years, investors are coming forward to set up industries in the state, as the government has taken several major steps to improve the industrial environment, due to which the Prime Minister Narendra Modi has also recognized Haryana for the remarkable work being done in the field of MSME. In this field, where the state has got the third position at the national level, Haryana has also been ranked in the top achievers category in the fifth edition of 'State Ease of Doing Business' released by the Ministry of Commerce and Industry, which is a matter of pride for any state. He said that Haryana Government's commitment to provide a conducive ecosystem to the industries has resulted in Haryana getting excellent ranking in Ease of Doing Business, Ease of Logistics and Export Readiness. Apart from this, the state has been ranked first in Export Readiness Index (Land Closed Category)-2021 and second in 'Logistics is Across Different Status Survey'-2021.
Source: Millennium Post
The Moroccan government may impose anti-dumping duty (ADD) on carpets imported from China, Egypt and Jordan, as the ministry of industry and trade has recommended imposition of ADD on carpets and floorings. At the end of an anti-dumping investigation, the ministry has suggested highest duty rate 144 per cent on carpets imported from China. The ministry had initiated an anti-dumping investigation concerning imports of carpets and other mechanically produced textile floor covering originating in China, Egypt or Jordan. “At the end of the final determination, the ministry, on a definitive basis, considers that the conditions applicable to an anti-dumping measure are met and, it will submit to the opinion of the Import Surveillance Commission the recommendation to apply antidumping duty,” the ministry said in a notification last month. Moroccan authorities have recommended anti-dumping duty of 144 per cent on carpets originating from China, and 35.33 per cent on supplies from Egypt and Jordan. However, no ADD has been recommended on Arab weavers and some other categories of carpets originating from Jordan. Morocco imported floorings, including carpets, worth $80.407 million in 2021. Its total home textiles imports were valued at $260.957 million during the year, according to Fibre2Fashion’s market insight tool TexPro. China was the second largest supplier for Morocco with 17.17 per cent share of its total home textiles import. Egypt and Jordan were minor suppliers of home textiles with share of 6.97 per cent and 2.46 per cent, respectively.
Source: Fibre 2 Fashion
There will also be emphasis on the environment in line with the Sustainable Development Goals The country's apparel manufacturers want to reach the $100 billion export mark by 2030 through product diversification, more focus on technical textiles and man-made fibre products, according to their long-term plan. "I think $100 billion worth of exports by 2030 is possible," Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard after revealing the new vision and BGMEA logo on Tuesday. The BGMEA calls its new vision "BGMEA Sustainable Strategic Vision: 2030". In reply to a query on whether the industry is ready to produce technical textiles such as automotive applications, medical textiles, geotextiles, agrotextiles, and protective clothing, Faruque Hassan said the industry is now ready to manufacture high value products. "A number of factories are already in the production of high value items," he noted. "For the first time, we participated in the Technical Textile Fair held in Germany this year. Now it's time to focus on product variations," he added. The BGMEA president underscored the country's growing backward linkage and new investments in the spinning sector. The country's apparel export amounted to around $42 billion in FY2021-22. The BGMEA president acknowledged missing the $50 billion export target by 2021, attributing the failure to a fall in global apparel demand and then the onslaught of the pandemic. "We are hopeful that exports will exceed the $50 billion mark by 2023," he said. Miran Ali, vice president of the BGMEA, presented the keynote regarding the new logo. In the new BGMEA logo, Miran Ali said the nine dots represent legacy, inclusivity, transparency, infrastructure, innovation, circularity, global network, brand and environment. According to the new vision, apparel exporters will reduce greenhouse gas emissions by 30% by 2030 – a target in line with the Sustainable Development Goals (SDGs). The apparel-makers will also use at least 50% of sustainable materials mix and reduce 50% of blue water footprints by 2030. According to the presentation, the sector will reduce energy consumption by 30% and will use at least 20% of renewable energy by 2030. The apparel sector will generate 6 million jobs by 2030 through ensuring 100% institutionalisation of skill development, good health and well-being of employees. Apparel manufacturers will invest $1 b by 2030 on sustainable communities, as noted in the presentation. Faruque Hassan said an extensive action plan will be revealed soon about how the sector intends to achieve its targets. Addressing the programme as chief guest, Jatiya Sangsad Speaker Shireen Sharmin Chowdhury said today's Bangladesh is no longer a "bottomless basket". "Many attempts have been made to turn Bangladesh into a failed state, but in the course of time the country has thwarted the plots and touched the $50 billion export milestone," she added. She also said that the BGMEA is a global organisation, as they operate in tandem with the global environment and this transformation, the announcement of a new vision, is a reflection of its keeping pace with the global environment. "The BGMEA is moving forward with priority on sustainable development. At present, there is political stability in the country, which must be used to move forward," she added. BGMEA former president Abdus Salam Murshedy MP and its current board members were also present on the occasion.
Source: TBS News
The Chinese government plans to support 200 demonstration smart manufacturing factories in a variety of sectors like textiles, apparel, home appliances, consumer electronics, food, and medicine. It also aspires to develop 50 demonstration cities that will help accomplish notable digitalisation progress, product variety, quality, and branding. The smart manufacturing is part of a new roadmap unveiled by China to accelerate the digitalisation of the consumer goods industry in a move to support the assimilation of the digital and real economies. The action plan, which was jointly released by five government departments, including the ministry of industry and information technology, is expected to be achieved by 2025, as per a government press release. It involves ensuring that the proportion of consumer goods companies with digitalised management and operations surpass 80 per cent. The plan outlines 10 tasks for improving product variety and quality and building brands, such as creating ‘internet-plus-consumer products’ that better people’s well-being, endorsing personalised and flexible production to redesign product development and production modes, and expediting the formation of a quality tracking system, according to Chinese media reports. The application and integration of various digital technologies would facilitate consumer goods supply, expand industrial chains, boost the industry’s added value, and enterprises to enhance digital innovation in research and development as well as their core competitiveness, the ministry said.
Source: Fibre 2 Fashion
Portfolio transformation, green business building, green premiums and green operations focused on circularity can help European consumer goods firms shift to circular value pools of over €500 billion of annual revenues by 2030, estimates McKinsey. In the fashion industry, about 63 per cent of emissions reduction potential lies in more efficient, cleaner energy, it says. Another 37 per cent of reductions in the fashion sector require alternative approaches. Extended product life cycles, changes in consumer behavior, circular business models, reduced overproduction, increased use of recycled materials, and other measures in line with circular-economy principles could contribute up to 654 million metric tonnes of fashion industry emissions abatement by 2030, which would close the emissions reduction gap, McKinsey says in one of its insight reports. In addition to the shift in consumer demand, factors such as regulation, technological progress, infrastructure, supply-side activity, and the macroeconomic environment will drive growth in demand for circular consumer goods, it says. Governments in Europe are pushing hard by adopting initiatives like the European Green Deal and Circular Economy Action Plan (CEAP), pledging billions of euros to net-zero enablers over the next ten years. One of CEAP’s key components is a proposal for eco-design focusing on product durability, reusability, upgradability and a ‘right to repair’, as well as recycled content, remanufacturing, and high-quality recycling. The EU Commission’s recently published proposal for sustainable and circular textiles aims to put an end to misleading green claims. Meanwhile, several European nations have started implementing extended producer responsibility. These kinds of initiatives present significant financial carrots to companies seeking to transition to circular business models, says McKinsey. Companies that relax their defensive postures and aim to create strategies that promote sustainability could experience a rise in innovation activity, it notes. This could drive adoption and, in turn, motivate investment. There could also be a greater demand for solutions to support product resale, refurbishment, and recycling, with a particular focus on scalable material collection and take-back programmes, reverse logistics and automated material sorting and processing for recycling, says McKinsey. In general, the proportion of circular consumer goods could rise from today’s 10 per cent to about 25 to 35 per cent by 2030, McKinsey analysis shows. This could result in a €400 billion to €650 billion annual opportunity for European companies. The resale and rental-product segment is expected to see growth in the more modest 5 to 10 per cent range, reflecting the segment’s maturity. However, it will still represent 7 to 10 per cent of the total consumer goods market by the end of the decade, McKinsey says. In the fast moving consumer goods sector, recycled and sustainably produced products are expected to see 15 to 25 per cent annual growth (CAGR) until 2030, leading to an €85 billion to €140 billion opportunity. Recycling in fashion, meanwhile, is likely to see 15 to 30 per cent annual growth, generating €45 billion to €110 billion of annual value, the McKinsey report says. McKinsey analysis indicates that the main driver of the €115-200 billion fashion and luxury market for circular fashion and luxury in 2030 will be an up to ten-fold increase in recycled, sustainably produced products, which will contain a high share of recycled synthetic fibres or alternatives such as recycled natural or man-made cellulose fibres. Leading players will leverage technological advancements such as chemical recycling to boost the availability and quality of recycled fibres. Used products will likely expand twoto threefold, driven by online platforms, with the majority coming from resale models. Digital attackers, incumbent fashion retailers and leading brands will all have opportunities. McKinsey expects growth in the refurbished segment to mainly come from premium and luxury products, where product quality and originality are particularly important to consumers. The €35-45 billion market for circular home and living in 2030 will be driven primarily by sustainably produced furniture using wood certified by the Forest Stewardship Council (FSC) and homeware containing a high share of recycled synthetic fibres or alternatives. The €30-50 billion market for circular sports in 2030 will be driven by recycled, sustainably produced apparel and footwear products. The refurbished, resale and rental segments will see strong growth from sports equipment and accessories. In addition to circular products, circular services will be a significant growth area. Maintenance and repair services, such as fashion mending, will see significant jumps in demand. The insight report was authored by Sebastian Gatzer, a partner in McKinsey’s Cologne office; Daniel Roos, an associate partner in the same office; and Stefan Helmcke, a senior partner in the Vienna office.
Source: Fibre 2 Fashion
Vietnam’s Ho Chi Minh City has sought clearance to a $6-billion international transit terminal in Can Gio district to handle large cargo vessels. The city’s municipal people’s committee recently wrote to Prime Minister Pham Minh Chinh, requesting him to ask the transport ministry to work with it and other agencies to assess the proposal’s advantages and scope. To divert some global container transit activities to Vietnam, sea shipping company MSC/TIL, the Vietnam Maritime Corporation and the Saigon Port have submitted a proposal to develop an international transit terminal in Can Gio, the HCM City administration said. The project is planned to be implemented in seven phases, the first of which is expected to begin in 2024 and turn operational in 2027. The last phase is scheduled to be put into use in 2040. With about 7.2 km of wharves, this project is expected to handle 10-15 million twenty-foot equivalent units (TEUs) of cargo, a news agency reported. Between 2015 and 2020, cargo throughput in seaports of HCM City grew by 7.34 per cent, and the rate is predicted to be 5 per cent between 2021 and 2025.
Source: Fibre 2 Fashion
