|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1012.20 |
USD/Ton |
0% |
5/26/2016 |
|
VSF |
2045.74 |
USD/Ton |
0.15% |
5/26/2016 |
|
ASF |
1920.74 |
USD/Ton |
0% |
5/26/2016 |
|
Polyester POY |
979.43 |
USD/Ton |
-0.39% |
5/26/2016 |
|
Nylon FDY |
2225.62 |
USD/Ton |
0% |
5/26/2016 |
|
40D Spandex |
4375.03 |
USD/Ton |
0% |
5/26/2016 |
|
Nylon DTY |
2065.56 |
USD/Ton |
0% |
5/26/2016 |
|
Viscose Long Filament |
2096.05 |
USD/Ton |
0% |
5/26/2016 |
|
Polyester DTY |
1105.19 |
USD/Ton |
0% |
5/26/2016 |
|
Nylon POY |
2461.91 |
USD/Ton |
-0.31% |
5/26/2016 |
|
Acrylic Top 3D |
5684.49 |
USD/Ton |
0% |
5/26/2016 |
|
Polyester FDY |
1242.39 |
USD/Ton |
-0.61% |
5/26/2016 |
|
30S Spun Rayon Yarn |
2774.41 |
USD/Ton |
0% |
5/26/2016 |
|
32S Polyester Yarn |
1684.46 |
USD/Ton |
-0.27% |
5/26/2016 |
|
45S T/C Yarn |
2439.04 |
USD/Ton |
0% |
5/26/2016 |
|
45S Polyester Yarn |
2926.85 |
USD/Ton |
0% |
5/26/2016 |
|
T/C Yarn 65/35 32S |
2225.62 |
USD/Ton |
0% |
5/26/2016 |
|
40S Rayon Yarn |
1814.04 |
USD/Ton |
-0.83% |
5/26/2016 |
|
T/R Yarn 65/35 32S |
2134.16 |
USD/Ton |
0% |
5/26/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
5/26/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
5/26/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
5/26/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
5/26/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
5/26/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15244 USD dtd. 26/05/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
While the indefinite strike called by the textile goods transporters continued for the fourth consecutive day on Thursday, Surat Municipal Corporation (SMC) has offered to allot government plots between Sahara Darwaja and Saroli for shifting the textile godowns. A meeting in this connection was held between SMC deputy commissioner Jivan Patel and representatives of Surat Textile Good Transport Association (STGTA) and Federation of Surat Textile Traders' Association (FOSTTA) at SUDA Bhavan on Thursday. Jivan Patel is learnt to have shared the details of the open plots owned by the government at Kumbharia, Saroli, Vedchha, Niyol and Antroli. Sources said most of the transporters have agreed to shift the godowns, provided the SMC allots them the government plots. FOSTTA president Manoj Agarwal said, "A discussion was held between the deputy commissioner of SMC and the trade representatives. The transporters have agreed to shift their godowns at the government land between Sahara Darwaja and Saroli. For this, we are meeting the municipal commissioner on Friday." STGTA vice-president Narendra Bhadra said, "The strike is still continuing, but the SMC allowed the godowns to open for two hours. During this time, most of the traders took their parcels out. But, the big problem is storing the huge quantity of parcels. Thus, we are keenly looking at Friday's meeting to finalize the government plots for shifting our godowns."
SOURCE: The Times of India
Spun yarn exports in April 2016 jumped 12 per cent in volume terms and were up 1.7 per cent in value terms. Spun yarn (all kinds) shipments were at 112.2 million kg worth US$299 million or INR1, 971 crore, implying per unit realisation of US$2.66 per kg. In April 2016, 82 countries imported spun yarn from India, with China accounting for 27.5 per cent of the total value with imports declining 7.1 per cent in terms of volume YoY and plunging 17 per cent in value YoY. Bangladesh, the second largest importer of spun yarns, accounted for around 19.2 per cent of all spun yarn exported from India. Export to Bangladesh rose 49.5 per cent in volumes and 33.2 per cent higher in value. Egypt was the third largest importer of spun yarns, which saw volume rising 10.7 per cent while value declined 4.6 per cent. These three top importers together accounted for around 52 per cent of all spun yarns exported from India in April.
India's share in China’s yarn market has dropped from 32.6% to 22.9% in the meantime whereas Pakistan's share plunged from 27.3% to 19.6%. This structural shift means that Indian and Pakistani spinners cannot rely any more on the Chinese yarn market, although they could keep a large share for specific products. The other reason for lower import from neighbours accentuates China's heavy investment into Vietnam to benefit from lower labor costs and the development of the domestic textile and apparel production in this country. As a result, Vietnam has become the leading origin of the China's yarn import market, with its share surging from 17.9% to 29.9% in a single year. Thus, the future appears bleak for Indian yarns, in line with surging exports of Vietnamese yarns to China, reflecting a relocation of the Chinese industry. For Pakistan, it has suffered from a sharp fall of domestic cotton and yarn production in the current season, being forced to import large quantities from India. As a result, export to Pakistan rose 72.4 per cent in volumes and 34.3 per cent higher in value.
The FIBRE AND YARN EXPORTS - INDIA report is based on data collated from 27 major ports (Air, Sea & ICDs) in India, namely Ahmedabad Air, Ahmedabad ICD, Ankleshwar, Bombay Air, Calcutta Sea, Cochin Sea, Delhi Air, Delhi TKD ICD, Hyderabad ICD, JNPT, Kattupalli, Krishnapatanam, Ludhiana ICD, Madras Air, Madras Sea, Mandideep, Marripalam ICD, Mundra, Nagpur, Petrapole Road, Pipavab , Pithampur ICD, Tondiarpet ICD ,Tuticorin ICD ,Tuticorin Sea and Vizag Sea. All spun yarns covered in this report are of Cotton, Viscose, Polyester, Polyester/Cotton and Polyester/Viscose; and filament yarns of polyester, nylon, polypropylene and viscose.
SOURCE: Yarns&Fibers
Textile manufacturer Arvind Ltd’s e-commerce division Arvind Internet has launched NNNow.com, its first omni channel fashion strategy that will integrate its physical stores, online platform and warehouses, expects to garner 10-15 percent of its business from online sales in the next three to four years, said Kulin Lalbhai, executive director of the company. Currently their brand revenue is Rs 3,000 crore and they expect this revenue to grow to $1 billion (Rs 6,700 crore at the current exchange rate) by 2020 The brands business is growing 20 per cent CAGR. The company also expects to integrate all its 1,200 offline stores across its 35 brands by the middle of this fiscal. They are integrating 100-150 stores every month and by the middle of this fiscal their entire offline stores will be digitized and live. The company will follow a top-down model while integrating stores, covering the top 15 cities first. NNNow.Com will integrate online and in-store shopping with same-day hyper-local delivery, store pick-ups for online orders, same-day hassle free returns at stores and India-wide inventory access to customers, the company said. Besides its own brands, NNNow.Com has entered into third-party tie-ups with 15-20 other brands to sell their products on their portal. Arvind is home to a host of giant international fashion and beauty brands like Gap, Calvin Klein, Gant, Nautica, Aeropostale, US Polo, The Children's Place and Sephora, among others. Arvind owns or has rights for 35 brands such as Lee, Arrow, Wrangler, US Polo and others. Arvind is India’s largest integrated textile player and one of the oldest, most respected groups in the Textile Business in India. The company is also one of the largest producers of denim fabrics and supplier to a large number of fashion brands in the world.
SOURCE: Yarns&Fibers
India has written to 47 countries to nullify the existing bilateral investment agreements and ink fresh treaties that will make it mandatory for foreign investors to exhaust local judicial remedies before seeking arbitration. The Narendra Modi-led NDA government has prepared a model draft which will serve as the template for all investment agreements in the future and also for reworking the current ones. "We have written to 47 countries... Treaties that have completed 10 years will be allowed to be lapsed so that a new text can be negotiated," a government official told ET. Some of the countries that India has written to are European nations with whom treaties were signed earlier. Treaties that have been signed recently such as one with the United Arab Emirates will continue with the existing text and be revised later, the official said. The Bilateral Investment Promotion Agreements (BIPA) seek to promote investment flows between two nations by assuring fair and equitable treatment on post-establishment basis through reciprocal provisions such as national treatment, most favoured nation treatment and mechanism for dispute resolution. The government amended the text after being dragged into international arbitration by as many as 17 companies or individuals including Deutsche Telekom of Germany , Vodafone International Holdings BV , Sistema of Russia , Children's Investment Fund and TCI Cyprus Holdings . India even lost an international arbitration case involving White Industries of Australia. The Union cabinet had approved the revised model text for the Bilateral Investment Treaty in December. The revised model BIT will be used not just for the renegotiation of existing BITs and negotiation of future BITs but also investment chapters in Comprehensive Economic Cooperation Agreements, Comprehensive Economic Partnership Agreements and Free Trade Agreements. The model BIPA prepared by India excludes matters such as government procurement, taxation, subsidies, compulsory licenses and national security from the scope of agreement. Although taxation matters were never covered by investment treaties the government decided to incorporate a specific provision after Vodafone served an arbitration notice challenging the retrospective amendment to income tax law to tax its buyout of Hutchison Essar's telecom operations in 2007.
SOURCE: The Economic Times
India and Iran are on course to signing a preferential trade agreement ( PTA ) after clinching the Chabahar Port pact, but with a significant departure from the past. Officials said that India is looking at a new template that does not peg import duty at zero even on crude oil , the biggest import from Iran, which enjoys nil rate at present. The proposed plan being thrashed out by the two sides will be linked to trading volumes instead of number of tariff lines, they said. "It is our attempt to have a quick PTA with Iran in which value of trade is the most important criterion. In some way, it is a departure from the reducing tariff lines method," an official privy to the details said, requesting not to be identified. The changes are a result of the caution sounded by the revenue department that has estimated a revenue loss of Rs 77,733 crore if the agreement is signed on the basis of the existing template.
Under the proposed agreement, the two countries will give each other market access to $2-2.5 billion worth of goods. The official said discussions on the agreement were held during Prime Minister Narendra Modi's recent visit to Iran. India's exports to Iran from April 2015 to February 2016 amounted to $2.6 billion while imports were more than double that at $5.6 billion, compared with $4.1 billion and $8.9 billion respectively in the entire 2014-15. India has been exporting automobile components, tools, motors and chemicals to Iran, along with Basmati rice, sugar and other agricultural commodities. Its main import from Iran is oil, which accounts for 70% of the total imports from the country. The official said that the finance ministry is wary of India taking any binding commitment on oil imports and has asked the commerce department to keep a close eye on the impact of the negotiations on oil imports so as to avoid any revenue loss. The government had cut customs duty on crude imports to zero from 5% in June 2011when rates zoomed to over $100 a barrel. This concern has been met, with both India and Iran planning to have moderate tariffs on the products included in the pact instead of reducing duties to zero. "If we were to go by the present architecture of zero duties, it would mean a huge loss to us. We want a PTA based on moderate tariffs so as to not lose revenue and also get market access," the official said.
SOURCE: The Economic Times
Commerce Minister Nirmala Sitharaman today said it is “possible” for the country to reach top 50 in the World Bank’s Doing Business ranking in the next few years. “The fresh ranking will reflect that it is possible for us to reach that position of 50, not immediately, in the next few years,” Sitharaman said in a Facebook interaction on completion of two years of the NDA government. India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from 2014, according to the latest World Bank’s Doing Business report. Asked about reports claiming that Prime Minister Narendra Modi was an “autocratic leader”, Sitharaman described him as a “professional governing leader” and “certainly not an autocrat”.
On the controversy in Jawaharlal Nehru University where some students allegedly raised anti-national slogans, Sitharaman, who is an alumni of the educational institute, said she “felt sad at the developments”. “You are celebrating a cause on a day remembering Afzal Guru who was hanged for attacking Indian Parliament. You want to commemorate the day when the man who attacked our Parliament was hanged?” the Minister said, adding that the JNU students union (JNUSU) should have an introspection session. Sitharaman gave 9 out of 10 to Modi Government’s performance for the first two years, and said that big schemes being launched are keeping ordinary citizens at the core.
SOURCE: The Financial Express
Spelling trouble for India at the on-going negotiations for the Regional Comprehensive Economic Partnership pact, China has demanded that New Delhi eliminate duties on almost all categories of items, including sensitive ones such as steel, electronics and chemicals, despite the initial decision taken by the two countries to keep ambitions low. In its first round of requests made to India, China’s demands have gone much beyond the understanding reached between the two countries on eliminating tariffs on 42.5 per cent of trade items. “We have already held bilateral discussions with China on the sidelines of the last RCEP meeting in Australia asking it to be realistic and bring down its demand. But we have not yet received a positive response,” an official said. New Delhi is worried about China’s aggressive stance as the Indian industry is neither equipped nor willing to face uninhibited competition from its neighbour. “What has made matters worse for India at the RCEP is the fact that most members want tariffs on goods (the agreed number of items) to be reduced to zero within a ten-year time-frame, in line with the ambitious Trans Pacific Partnership agreement between the 12 Pacific Rim countries led by the US,” the official said.
The RCEP has prescribed a deadline of June 1 for all members to give their first round of requests to other members, based on the initial offers made by each, as efforts are on to wrap up the pact this year. “While there are a number of items including agriculture products, pharmaceuticals, auto components, marine products and metals where our industry has aggressive interests in China, we are apprehensive about asking for too much as it may lead to China justifying its own high demands placed before us,” the official added. In the first round of offers, India agreed to eliminate tariffs on 42.5 per cent of items for China, Australia and New Zealand, 65 per cent for Japan and South Korea and 80 per cent for the ASEAN. It is important for India to be a part of the proposed pact to counter bigger blocs like the TPP and also retain its competitiveness in the region. At the next round of RCEP in New Zealand next month, India will try to negotiate for a longer implementation time-frame for goods as well as reiterate its demand for a good deal in services, especially related to free movement of workers.
Trade bloc
The RCEP, being negotiated between 16 countries, including the 10-member ASEAN bloc, seeks to create one of the largest free trade blocs in the world, as the countries together account for 45 per cent of the world population and over $21 trillion of gross domestic product. India’s trade deficit with China has already crossed $52 billion in 2015-16 with its imports increasing 2 per cent to $61.7 billion and exports decreasing 24 per cent to $9 billion. The deficit is rising despite imposition of anti-dumping duties by India on a variety of Chinese products ranging from iron and steel items to telecom equipment.
SOURCE: The Hindu Business Line
India has once again raised its voice over Pakistan not extending it the Most-Favoured Nation (MFN) trade status, even as it warned its neighbour that such a stance was in violation of World Trade Organisation (WTO) norms. “The fact that Pakistan has not extended MFN status to India even after lapse of close to 20 years since India unilaterally did, is not in keeping with the WTO norms,” said Vikas Swarup, spokesperson, Ministry of External Affairs (MEA). India’s tough talk comes a day after Pakistan sought WTO support on the proposed China-Pakistan Economic Corridor (CPEC) during the visit of the global trade body’s Director General Roberto Azevêdo to Islamabad. “CPEC is a two-country initiative, part of which is proposed on the Indian territory under Pakistan’s illegal occupation. Our views in this regard are well-known,” Swarup said, adding that Pakistan should instead focus more on the initiatives taken by the South Asian Association for Regional Cooperation (SAARC). “Pakistan is a SAARC member and as such it is expected to contribute constructively to regional connectivity initiatives, including those that it did not support in the last SAARC Summit,” Swarup said. Pakistan will host the SAARC Summit in November this year.
Reacting to Pakistan’s allegations that India imposes high non-tariff barriers (NTB) on their exports, Swarup said it is they who continue to impose barriers on Indian goods. “As far as we are concerned, there are high NTBs in the region, not on Pakistan but from it. Pakistan does not allow movement of all importable items from India through Wagah. In fact, it allows only 138 items through Wagah. This is the biggest NTB for thousands of Indian tariff lines that have to be routed through Karachi, raising costs, including for consumers in Pakistan,” he added. The initiative to normalise trade ties between the two countries was resumed during the UPA-II regime in 2011. Pakistan had then committed to the 2012 deadline to grant MFN status to India, but it never did. It also did not abide by its promise to allow all goods to be traded though the Attari-Wagah border, and continues to maintain a negative list of over 1,200 goods that are barred from being imported from India.
SOURCE: The Hindu Business Line
Commerce Minister Nirmala Sitharaman today urged Bahrain to enhance its investments in India, highlighting the investment opportunities in the country. In a meeting with the Bahrain’s Minister of Industry, Commerce & Tourism Zayed R Alzayani, Sitharaman “mentioned the high investment opportunities in India and requested Bahrain to enhance its investments”. During the meeting, Alzayani emphasized on the strong bond between both the countries and said that India is a vital partner for Bahrain, a Commerce Ministry statement said. Indo-Bahrain bilateral trade stood at around USD 1.2 billion in 2013-2014 — a jump from merely USD 220 million in 1999-2000.
SOURCE: The Financial Express
Reserve Bank of India Governor Raghuram Rajan on Thursday warned that a sharp slowdown in China’s economy remains a significant risk for the global economy and the region. Delivering the inaugural address at the SAARC Finance Governor’s symposium in Mumbai on Thursday, Rajan said: “Work at the IMF suggests that a 1-per cent permanent negative shock to China’s GDP, caused by a one-off one-percentage decline in its real GDP growth, will knock off 0.23 percentage points from global growth in the short run.” “The sharp contraction in China’s imports over the past year has already led to spillovers through the trade, confidence, tourism and remittance channels. SAARC nations have not been able to avert its impact. More negative externalities could follow as the Chinese economy adjusts to a more sustainable path,” he added.
Weak domestic demand
He observed that China suffered from weak domestic demand as it shifted from export-led to consumption-led growth after the crisis, in addition to the weak overseas demand. Besides, a number of sectors in China suffered from overcapacity and high leverage, he added. Rajan said fiscal consolidation by containing price rise, using better food management, a new inflation framework and a monetary policy tuned to circumstances were the first defence against the global slowdown. The RBI had also started cleaning up bank balance-sheets to support growth, he said.
Measures taken by the Centre, such as the passage of the Bankruptcy Bill, as well as steps to boost agriculture, deregulate business, allocate spectrum and mines, appoint the top brass at PSU banks, resolve distress in the power sector and expand financial inclusion were steps to increase transparency in India, he said. “We look forward to a strengthening Indian economy as recent structural reforms take hold, and hope that some of this growth will spill over to your economies. In turn, we hope to be benefited as your economies pick up. Together, we can hopefully be an island of relative stability and co-operation in this turbulent world,” Rajan said.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.74 per barrel (bbl) on 25.05.2016. This was higher than the price of US$ 45.72 per bbl on previous publishing day of 24.05.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3152.39 per bbl on 25.05.2016 as compared to Rs. 3095.63 per bbl on 24.05.2016. Rupee closed stronger at Rs 67.45 per US$ on 25.05.2016 as against Rs 67.71 per US$ on 24.05.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 25, 2016 (Previous trading day i.e. 24.05.2016) |
Pricing Fortnight for 16.05.2016 (28 Apr to 11 May, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.74 (45.72) |
43.00 |
|
(Rs/bbl |
3152.39 (3095.63) |
2859.50 |
|
|
Exchange Rate |
(Rs/$) |
67.45 (67.71) |
66.50 |
SOURCE: PIB
India's cotton yarn production grew by 2 per cent to 4,136 million kg in FY2016, which is the slowest pace of growth during the last four years, professional investment information and credit rating agency ICRA has said. In its update on India's spinning sector, it pointed out that earlier, cotton yarn production had grown by 14.6 per cent, 9.6 per cent and 3.2 per cent respectively in FY2013, FY2014 and FY2015. Further, as 3/4th of India's spun yarn production is cotton-based, the growth in total spun yarn production has also emulated this trend with a 3.2 per cent growth in FY2016 as against 11.3 per cent, 9.1 per cent and 3.4 per cent growth in FY2013, FY2014 and FY2015 respectively, which is also the lowest in last four year. The marginally higher growth in total spun yarn production compared to cotton yarn production in FY2016 reflects an increased share of manmade/blended spun yarn aided by enhanced competitiveness of polyester fibre, given the sharper decline in polyester prices compared to cotton prices, the report said. Supported by the aforesaid factor, the growth in production of non-cotton yarn in FY2016 was 6.4 per cent against 3.8 per cent in FY2015.
According to the report, tepid domestic consumption and subsiding exports pose challenge to volume growth. The slow pace of growth in spun yarn production has been driven by factors like tepid domestic consumption and limited growth in exports. ICRA estimates domestic consumption growth for FY2016 to be 1.4 per cent (7.6 per cent in FY2015) for cotton yarn and 3.1 per cent (6.3 per cent in FY 2015) for spun yarn. This is the lowest level of domestic consumption growth since FY2013. The growth in cotton yarn exports has also been slow with exports of 1,302 million kg in FY2016, which reflects 3.7 per cent growth (47.5 per cent and 18.3 per cent growth witnessed in FY2013 and FY2014). In its outlook, ICRA said high dependence on exports to China and resulting sensitivity of India's exports to China's policy on reserve cotton stock has always warranted a cautious outlook on India's yarn exports. Thus, slow growth in domestic consumption and exports will pose a challenge for profitability of spinners if the demand growth remains muted in FY2017.
SOURCE: Fibre2fashion
Turkmenistan over the years of independence has seen increase in cotton fiber processing from 3 percent to 51 percent. Also the country’s cotton yarn production has increased 2.4 times from 2000 to 2015 and cotton production 4 times. The country aims to raise foreign investment to bring further expansion in its textile industry for which they intend to create the most favorable conditions for investors and also introduce, new technologies. At present, Turkmenistan has more than 70 enterprises producing cotton yarn, cotton, terry, denim, knitted fabrics and knitwear More than 70 percent of the Turkmenistan's textile products are exported to the US, Europe, Russia, Ukraine, Turkey, China and Baltic countries. From 2000 to 2015, its export of textile products has witnessed 3.2 times raise. The Central Asian country, Turkmenistan is among the top 10 producers of cotton and its high quality, fine-fibre "white gold" is used for local production of jeans wear. Jeans with a "Made in Turkmenistan" label are sold in a variety of Western supermarket chains, including U.S. company WalMart and exported to dozens of countries.
SOURCE: Yarns&Fibers
TUV SUD, global testing, certification, inspection and training provider dedicated to adding tangible economic value to its customers has inked a deal with the HCM City Association of Garment Textile Embroidery and Knitting (AGTEK). The agreement is expected to immensely benefits its members to take their business to the next level and access global markets. A memorandum of understanding (MOU) was signed between the two sides yesterday. The MOU also includes a special promotion for the association’s members, who are mainly small and medium-sized enterprises for whom cost is a concern. According to Sathish Kumar Somuraj, general director of TUV SUD Vietnam, under the MOU, they will co-organize quality and safety workshops and awareness programmes related to the textile and garment industry. The in-house training sessions would aim to provide local manufacturers an updated and more in-depth understanding of stringent international quality and safety standards. Somuraj said that quality and safety control are essential for companies in Việtnam, especially those looking to take their products to international markets. Phạm Xuân Hồng, AGTEK chairman, said that Việtnam has improved its business opportunities by signing free trade agreements with some key global players like the EU, US, Japan, Korea, and ASEAN. These agreements would bring global market access to Vietnamese businesses. The Vietnamese manufacturers have to comply with more stringent quality and safety regulations as international government safety and quality regulations on textile and garment products are changing constantly, especially in today’s free trade business landscape. Moreover, global buyers, especially those in Europe and the US, are increasingly demanding with respect to the kind and quality of products they want.
SOURCE: Yarns&Fibers
Global clothing brands must take responsibility for the millions of workers in Asia who are poorly paid by suppliers and ignored by governments, said a campaigner for higher wages in the region, ahead of an International Labour Organization (ILO) conference. Asia accounts for more than 60 per cent of the world's garment production, with the industry employing more than 15 million people directly, most of them women. Workers deserve a living wage because the minimum wage set by most Asian countries is inadequate to keep them out of poverty, said Anannya Bhattacharjee, a coordinator with the Asia Floor Wage Alliance ( AFWA ), a supply chain lobby group. "The complexity of the supply chains is often used as an excuse for brands having no control over paying a living wage," Bhattacharjee told the Thomson Reuters Foundation. "But brands have so much leverage with governments and suppliers, and they have the power to set prices," she said.
Higher wages in China, the world's largest clothing exporter, are driving brands worldwide to seek cheaper alternatives in countries such as Bangladesh, India, Pakistan and Sri Lanka. Suppliers in these countries are under enormous pressure to reduce costs and produce garments as quickly as possible. Wages in the garment industry are "structurally failing" to meet workers' basic needs, leading to excessive overtime, ill health and workers being forced to live apart from their families, according to the Clean Clothes Campaign, which is a member of AFWA. Activists are calling for a living wage, which an employee earns in a standard working week and is enough to provide for a family's basic needs, including housing, education and healthcare, with some income left for emergencies.
BASIC HUMAN RIGHT
The ILO defines a living wage as a "basic human right". Yet minimum wages across Asia are well below a level that a person could live on, and are revised by governments too rarely to reflect escalating living costs, campaigners say. "Companies are responsible for the human rights impacts throughout their supply chain, and cannot outsource these to the state or to the suppliers," said Bhattacharjee. "Global brands cannot wait for governments to raise the minimum wage to an acceptable level. They must pay the difference between the minimum wage and the living wage, as most of their profits comes from production in Asia," she said. Garment exports from Asia are worth more than $200 billion annually. Many garment workers in South Asia tend to be landless labourers or lower-caste workers who are particularly vulnerable to discrimination and are often in debt bondage. In Bangladesh and Sri Lanka, the minimum wage is a fifth of the living wage estimated by AFWA, based on purchasing power parity.
Working conditions and wages in South Asia's garment industry have come under greater scrutiny since the Rana Plaza disaster in April 2013 in Bangladesh, in which more than 1,100 workers died. Swedish fashion retailer Hennes & Mauritz last week said it was collaborating with trade unions and governments to improve workers' conditions, after an AFWA study found violations at its suppliers' factories in India and Cambodia. AFWA, along with other campaigners, will lobby the ILO at its conference in Geneva next week to move forward on setting a global standard for supply chains, including for wages. "If you corner workers and you increase the pressure on them, they are going to erupt like a pressure cooker some day," Bhattacharjee said. "That's not good for the country or for business. So it's in everyone's interest to prevent that situation - and it's easy, given how little it will take to fix it," she said.
SOURCE: The Economic Times
The All-Pakistan Textile Mills Association (Punjab Chapter) and the German Ministry for Economic Cooperation (BMZ) signed on Thursday a Declaration of Intent (DoI) for a sustainable textile industry across the value chain. APTMA Punjab Acting Chairman Syed Ali Ahsan and Country Director GIZ Dr Ulrike Reviere signed the DoI on behalf of their respective organisations. A website www.spc.org.pk was also launched to create awareness on Sustainable Production Centre. Speaking on the occasion, Dr Stefan Oswald, Head of Afghanistan/Pakistan in the German Ministry for Economic Cooperation, said GIZ would continue supporting the textile industry of Pakistan. He pointed out the textile industry should also consider the option of using solar energy for heating water in processing industry. Stefan also stressed upon the diversification of SPC and termed it crucial for growth of the textile industry in Pakistan.
SOURCE: The Dawn
Bangladesh is set to export textiles and jute products to Uganda with the two countries having almost finalised a trade deal. Officials said the two countries are set to sign a Memorandum of Understanding (MoU) to share information and technology on trade where Bangladesh will be exporting its textile and jute products to the country, the Daily Monitor newspaper has reported. Mahmood Hudda, the Honorary Consul of Bangladesh in Uganda, said the export of jute products to Uganda is timely as the country moves from plastic packaging to biodegradable materials. “The MoU has been presented to the Ministry of Internal Affairs for vetting of documents to formulate the bilateral trade. We are also looking at the Trade Ministry to look into tax exemption on importation of jute to facilitate the trade on duty free basis,” the newspaper quoted Hudda as saying. On taxing jute products, Uganda's Trade Minister Amelia Kyambadde said it is an issue that will be considered in future since the country has already undergone the budgeting process. Hudda, who led a delegation from Bangladesh for a meeting with Ms Kyambadde, also revealed that Uganda will also be exporting rice to Bangladesh. “This is a long-term strategy because we want to encourage our private sector to extend expertise in Jute and textile production in Uganda to promote development,” he added. Ms Kyambadde said the import of jute products comes at a time when Uganda is phasing out the use of plastic materials for packaging in favour of environment friendly materials. “The trade relationship we are opening up is one way of expanding our potential and exposing people to new technologies and opportunities to do business,” said Ms Kyambadde. She also appealed to the public to utilise the opportunities to research and tap and into the new opportunities such as use of papyrus, bamboo and the various government initiatives for development.
SOURCE: Fibre2fahion
Under the new 12-nation Trans-Pacific Partnership agreement, U.S. apparel imports and exports would only increase slightly under the trade pact, which must be approved by Congress. The U.S. International Trade Commission recently published an independent study of the free-trade accord and found that U.S. apparel imports would inch up 1.4 percent with a $1.9 billion increase by the year 2032 while exports would barely budge, seeing a 0.3 percent rise, or a $10 million increase. The U.S. textile industry would see modest gains too. By 2032, TPP would help U.S. textile imports see a 1.6 percent increase by $869 million while U.S. textile exports would edge up 1.3 percent, or $257 million. The study showed that Vietnam, one of the TPP member countries, would benefit the most from the free-trade pact when it comes to manufacturing and exporting apparel to the United States because tariffs will be eliminated on many items produced there using regional yarns and fabric, a requirement for duty-free status. In 2015, U.S. duties on apparel coming from Vietnam totaled $10.5 billion and the average tariff was set at 17 percent.
Vietnam is the No. 2 provider of clothing to the United States, accounting for 10 percent of all U.S. apparel and textile imports. China is still No. 1 with shipments making up 38 percent of all apparel and textiles imported into the United States. When the free-trade pact goes into effect, additional clothing imports from Vietnam are expected to be moderate because of Vietnam’s inability to meet many of the yarn-forward requirements needed to qualify for duty-free status. Vietnam gets about 88 percent of its yarn and fabric from China, South Korea and Taiwan, which are not TPP members. Although there is some domestic textile production in Vietnam, only about one-quarter of it is considered to be of export quality. Also, Vietnamese-produced yarns and fabrics are more expensive than similar items produced in China. In 2014, Vietnamese yarns were estimated to be 5 percent to 10 percent more expensive than similar yarns manufactured in China while Vietnamese fabric prices were 5 percent to 8 percent more expensive than Chinese fabrics. In 2014, Vietnam’s textile industry consisted of 145 yarn spinners, 401 weaving facilities, 105 knitting mills, 94 dyeing and finishing plants, and seven nonwoven manufacturers. With Vietnam’s immediate inability to produce yarns as required for duty-free entry, manufacturers were concerned that the demand for regionally made yarns would lead to higher prices in the immediate future and make Vietnam less competitive in supplying clothing to the United States. But in the long run, increased domestic yarn and fabric production would shorten lead times and prices, benefiting Vietnam’s apparel exports.
Anticipating yarn-forward rules in the TPP accord, domestic and foreign firms have been investing to improve Vietnam’s fiber and textile capabilities with foreign direct investment in the sector estimated to be in excess of $1 billion. In the overall economy, the report found that U.S. annual real income would see a 0.23 percent rise, or an added $57.3 billion, by 2032 if the trade pact is enacted. Real gross domestic product would creep up 0.15 percent, or $42.7 billion. The TPP is supported by the American Apparel & Footwear Association as well as the National Association of Manufacturers. Many Democrats in Congress oppose it. The 12 countries in the pact are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.
SOURCE: The Apparel News
Ambassador of Uzbekistan to Pakistan Furqat Sidiqov leading a delegation comprising Uzbek diplomats with the agenda to follow up on Prime Minister Nawaz Sharif’s recent visit to Uzbekistan, during a meeting at the Punjab Board of Investment and Trade (PBIT) said that there is immense scope for increasing bilateral trade and instituting joint ventures between the two countries. He said that Uzbekistan is the biggest and fastest growing economy in Central Asia, particularly advanced in agriculture and a major cotton producer with a very well developed indigenous production of cotton related machinery, which is also one of Pakistan’s primary economic sectors. The ambassador proposed that the two countries could look at the establishment of joint production facilities. Significant potential for cooperation also exists in the areas such as fertilizers and the agro-chemical industry. The Uzbek ambassador also expressed his country’s interest in investing in renewable energy projects in Pakistan, especially solar energy. The PBIT Chairman said that Punjab is Pakistan’s agricultural heartland and is open for collaboration with Uzbekistan in exploring joint ventures. He also assured the ambassador that full details of energy-related projects in Punjab would be shared with the Embassy and complete facilitation would be provided by PBIT to Uzbek investors interested in Punjab’s energy sector. The Punjab Board of Investment and Trade agreed to share a list of products that Pakistan wished to export to Uzbekistan. The Uzbek ambassador informed that following Prime Minister Nawaz Sharif’s successful visit to Uzbekistan in November 2015, the Uzbek government had constituted a special working group to increase bilateral trade between Uzbekistan and Pakistan and explore avenues to enhance economic cooperation. The special working group under the leadership of the Uzbek minister for industries would visit Pakistan in July. The high-powered delegation would include a number of other senior Uzbek ministers, as well as private businessmen. PBIT and the Embassy of Uzbekistan agreed to work closely in the period preceding the visit to make it a resounding success and stressed the need to drastically increase the current volume of bilateral trade, which is $40 million.
SOURCE: Yarns&Fibers
