INTERNATIONAL
The Government has recently some taken initiatives in order to boost employment generation in Textiles & Retail Sector.These are-
This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.
SOURCE: The Business Standard
Bihar chief minister Nitish Kumar has assured all help to those investing in the textile and apparel industry in the state. A group of representatives from the textile and garment industry led by Apparel Export Promotion Council (AEPC) vice president HKL Maggu met Kumar recently and discussed the prospects of investment in the sector. Maggu gave a presentation before Kumar on the prospects of setting up textile industries in Bihar, an official statement said. Those who met Kumar included Harish Ahuja, chairman of Shahi Export Pvt Ltd, and Birendra Uppal, managing director of Richa and Company. They expressed keenness to invest in textile trade in Bihar, for which Kumar assured all help.
SOURCE: Fibre2fashion
India exported 101.8 million kg of spun yarns worth US$283 million or INR1, 881 crore in June 2016 at an average realisation of US$2.78 per kg. This was significantly lower compared to same month a year ago. Export volume was down 12% YoY and value declined 17% in US$ terms. The drop also reflects the lean season for global textile industry in this part of the year. The Indian yarn industry is confronted with excess supply, after yarn exports dropped sharply last year. With India's export prices rocketing now, shipments of cotton yarn were down due to limited demand. Also, demand from China continued to shift to low cost suppliers, particularly Vietnam where many spinning mills are owned by Chinese investors. A sharp drop in shipments was seen to China which was partially offset by a new surge in sales to Bangladesh and Vietnam. However, China continued to be the top importer of India yarn, followed by Bangladesh. Egypt, the third largest importer of spun yarns, saw volume rising 7 per cent while value inched up 0.3 per cent. These top three importers together accounted for around 47 per cent of all spun yarns exported from India in June.
Cotton yarn export was at 82 million kg in June to 74 countries worth US$226.8 million (INR1,491 crore). The average unit price realization was US$2.78 a kg, up US cents 7 from previous month but down US cents 24 from the same month a year ago. Iran, Turkey, Thailand, Tunisia and Croatia were among the fastest growing markets for cotton yarn, and accounted for 5.5 per cent of total cotton yarn export value. Nine new destinations were added for cotton yarn export, of which, Australia, Mozambique, Chile and Bulgaria were the major ones.
Cotton fibre export was at 26.5 million kg or 155,954 bales (of 170 kg each) in June which declined 26% YoY and was valued at US$42.4 million, down 25%. Bangladesh and Vietnam were the largest importers of cotton with combined volumes at 124,657 bales amongst the 12 countries that imported cotton from India. Vietnam notched the second top position in cotton import from India. In June, cotton export to Vietnam was about 22 thousand bales as against 7 thousand bales in June 2015. This jump suggests that Vietnam imports cotton from India, value adds it into yarn and exports to China, at a lower cost compared to Indian yarns.
The Fiber and Yarn Exports – India report is based on data collated from 26 major ports (Air, Sea & ICDs) of 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. These ports account for 85% of cotton yarn and 60% of non-cotton yarn (excluding sewing threads) exported from India.
SOURCE: Yarns&Fibers
Notwithstanding the Union Ministry of Textile’s direction to the Cotton Corporation of India (CCI) to offload its stock only to micro, small, medium scale to (MSME) units in the wake of rising cotton prices, the rates of the commodity are not likely to fall sharply till the arrival of new crop in October. "The recent government directive to CCI to sell its entire cotton stock to micro, small, medium scale spinning units will help contain the price rise of cotton. However, Ind-Ra believes that cotton prices will not see any steep decrease, till the arrival of the next cotton crop," Mumbai-based financial institution India Ratings (Ind-Ra) said in a report. Cotton prices have shot up by over 35% since May 2016. The fall in domestic production has spiked cotton prices, which are likely to remain at a high level of Rs 120-127/kg till the cotton season ending September. The rise in prices is expected to squeeze profits of ginners and spinners by over 15% in the current fiscal. There may not be any sharp fall since prices already factor in the release of stock from inventory, Ind-Ra said. Cotton prices are expected to be under pressure on likely fall in acreage. "Fear of losses from pest attacks and due to the lack of alternatives to biotech cotton hybrids, acreage (of cotton) is likely to decline. This may push up cotton prices further, however increasing demand for manmade fibre, will contain the price rise," Ind-Ra noted.
Observing that increase in prices will impact small textile players the most, the report said ginners and spinners are most likely to be affected. However, some organised spinning units with interchangeability from cotton to blended yarn will be able to adapt. "Profitability of pure cotton ginners and spinners will be lower by at least 15 %, on account of their inability to pass on this steep increase in cotton prices to their customers due to decreasing cotton demand and increased competitiveness of manmade fibre," it said. However, players who have stocked up cotton at lower prices in March-April 2016 are better placed. Further, fabric manufacturers are likely to be affected the least, on account of their better interchangeable use of looms, it added.
SOURCE: Fibre2fashion
The government has identified 26 rail-road connectivity projects under its ambitious Sagarmala programme worth Rs 29,500 crore. Of this, two projects have already been completed while 16 have been awarded to the Railways for construction, Minister of State for Shipping P Radhakrishnan said in a written reply to the Rajya Sabha. Twenty-six port-rail connectivity projects have been identified in the National Perspective Plan, April 2016, under Sagarmala at a total estimated cost of Rs 29,500 crore. Twenty-two rail connectivity projects have also been identified by Indian Port Rail Corporation (IPRCL) for execution. Out of the 22 projects taken up by IPRCL, four have been awarded for implementation by IPRCL, the minister said. In a separate query, Radhakrishnan said the government has a target of awarding 33 projects during the current fiscal with an investment of Rs 13,123 crore. “Similarly, 29 projects are targetted for completion during 2016-17. Enhancement of capacity at major ports is a continuous process,” he added. The government is regularly monitoring the port projects to increase the capacity of the ports and also to bring them to international standards, he said. This is being done through construction and modernisation of berths, installation of state-of-the-art equipment and mechanisation of cargo-handling system at ports, including the dredging projects, to accommodate large vessels at major ports, he added.
SOURCE: The Financial Express
India has proposed to renegotiate all its bilateral investment pacts and to replace them with new treaties, Parliament was informed today. “Yes. India proposes to renegotiate all those bilateral investment pacts whose initial validity has expired and to replace them with new Bilateral Investment Treaties (BITs),” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. She said that out of the total 83 treaties signed by India so far, 58 are being terminated. The notices have been sent to the respective governments through the diplomatic channel, she added. The new Indian Model Bilateral Investment Treaty text is aimed at providing appropriate protection to foreign investors in India and domestic investors in the foreign country, in the light of relevant international precedents and practices while maintaining a balance between the investor’s rights and the government obligations, she said. Sitharaman also said that technical discussions with the US side have been continuing on the basis of the revised treaty text. “USA has expressed its desire to sign a treaty similar to the FTA signed with Japan and Korea,” she said. However, the minister said that Japan and Korea FTAs were signed based on earlier model BIT text of India which has since been revised and all discussions now also being done on the basis of the new BIT text. Replying to a separate question, she said India and Sri Lanka are in the process of finalising the broad framework for the proposed Economic and Technology Cooperation Agreement through mutual discussions.
SOURCE: The Financial Express
Many Indian brands have been hit by Chinese fakes including Natraj, Raymond, JK Files and Tools, Fevicol, Onida Godrej, Boroplus, Dabur and some popular Indian incense stick brands, the government said. The Indian embassy has raised complaints of these companies with the relevant government agencies in China, government informed parliament on Monday. "The Chinese side has acted upon a few cases by allowing the Indian companies to register with the Trademark Office of the State Administration for Industry and Commerce of China," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to Lok Sabha on Monday. However, the onus of trademark registration and protection in China lies on the aggrieved enterprise. As per the extant rules in China, individual enterprise have to file a case in the relevant forum by hiring a law firm on reported instances of trademark & copyright infringements.
SOURCE: The Economic Times
The Union and state finance ministers would on Tuesday debate scrapping the proposed one per cent tax on inter-state movement of goods proposed in the Constitution amendment Bill on goods and service tax. The Centre has been pushing hard to build a consensus on the legislation so that it can finally be passed in the ongoing monsoon session of Parliament. Finance Minister Arun Jaitley and the empowered committee of state finance ministers might also thrash out a vexed issue over distribution of adjudicating powers between the Centre and state indirect tax departments. "The removal of the one per cent additional tax on inter-state trading may come up for discussion at the empowered committee meeting. With that the GST structure will improve considerably, as although it is there only for two years, there will be some amount of cascading effect," said a government official. Jaitley will chair the meeting with the state finance ministers on Tuesday, after which the Constitutional amendment Bill on GST may come up for a discussion in the Rajya Sabha.
The Constitution amendment Bill, as passed by the Lok Sabha in May 2014, sought to impose additional levy of up to one per cent over and above GST to help the manufacturing states such as Gujarat, Tamil Nadu and Maharashtra, since the GST is destination-based. However, this sparked fears that the levy would lead to a cascading, tax on tax, since it would not be a part of the GST chain. To balance the grievances of manufacturing states and assuage fears, a select panel of the Rajya Sabha had suggested limiting the one per cent tax over GST to only those inter-state exchanges of goods for which there was a monetary consideration. This means that only inter-state trading of goods would draw this tax and not company-to-company transfer. States charge central sales tax on sales made outside their territory, which will not be available under the GST regime. The Congress, in its dissent note to the select committee report, wanted to eliminate the one per cent tax altogether since it, the Opposition party claimed, "distorts the market". In a way, it is an overture by the National Democratic Alliance, the ruling coalition, to the Congress, after the former showed its reluctance to accept the latter's demand of incorporating a cap on the GST rate in the Constitution amendment Bill.
Minister of State for Finance Arjun Ram Meghwal on Monday said, "A consensus is likely to be reached on at least two of the three demands put forth by main Opposition party, the Congress, indicating that an agreement was possible on scrapping of one per cent additional tax besides the dispute resolution mechanism. "Many states, including Bihar, West Bengal, Uttar Pradesh and Odisha, feel that once GST is passed, it would be good for the country. We are trying to build a consensus. We are trying to get the GST Bill passed in the monsoon session of Parliament." The select committee wanted the exact definition of interstate supply of goods, which would attract up to one per cent tax, be made at the time of framing GST laws. "The committee feels that the provision of one per cent additional tax in its present form is likely to lead to cascading of taxes. Therefore, the committee strongly recommends that in the concerned GST law, an explanation should be given that for the purpose of Clause 18, the word 'supply' would mean all forms of supply made for a consideration," the committee had said. The Clause 18 of the Constitution amendment Bill deals with the one per cent tax. However, experts are of the opinion that the select committee's panel would not entirely address the issue of cascading. It should be noted that the Constitution Amendment Bill is an enabling mechanism to allow the Centre and states to impose GST. After the Bill is passed, the new indirect tax regime would need another central law as well as state laws on GST. It is in these laws that the committee wanted this explanation to be incorporated.
States are demanding that they should get sole administrative powers to carry out assessment, scrutiny and passing of orders for entities and traders up to an annual turnover of Rs 1.5 crore and beyond that both states and the Centre should have these powers. In response to that, the GST committee, set up by the Central Board of Excise and Customs (CBEC), proposed two options in its report to iron out the administrative differences under the unified indirect tax regime. The CBEC committee, headed by member Ram Tirath, recommended doing away with the threshold altogether. Or alternatively, it has said that if states get exclusive control over up to Rs 1.5 crore, the Centre should get exclusive control over above that limit. "The Centre is of view that there should be no administrative threshold at all. Although if the states are keen on exclusive control for up to Rs 1.5 crore, then the Centre should have exclusive administrative control over all cases falling above the threshold. The finance minister will take a final call on that matter," said a senior government official, who did not wish to be quoted. States, including Gujarat, Maharashtra, West Bengal, Tamil Nadu and Karnataka, are pressing for authority over tax assessments and adjudication for entities with an annual turnover of up to Rs 1.5 crore. According to states, this will help small businesses from being harassed by dual control. The CBEC also suggested a "cross-power" model, which means if there was no threshold, the Centre could initiate action and carry out scrutiny in case it detects a state GST case and adjudicate, and vice-versa. According to the mechanism, the states can also initiate action on detecting a Centre GST (CGST) case, and inform the Centre. So, states will be authorised to initiate action in CGST case while the Centre will be authorised for SGST cases as well.
SOURCE: The Business Standard
An Indian business delegation is expected to visit the North African country, Morocco next week to boost further trade exchanges between the two countries and explore the possibilities of partnership projects in various sectors such as textile, infrastructure, energy, information technology, construction, agriculture, chemicals and fertilizers, mining, and automotive. This visit comes one month after Morocco and India set up a joint trade and industry chamber to give a new impetus to cooperation between the two countries. The chamber was launched during the visit paid to Morocco by vice-President of India Mohammad Hamid Ansari, in presence of the Head of the Moroccan Government Abdelillah Benkirane and businessmen from the two countries. Benkirane recalling the longstanding and strong ties existing between the two countries sharing common development goals and views regarding several international issues said that Morocco is committed to developing its relations with India in all fields. While, the India’s vice-President had stressed the importance of the newly created trade chamber set to enhance cooperation and partnership between Moroccan and Indian businessmen. He also hailed trade growth between Morocco and India during the past years, stressing the huge potential of the two countries’ economies, banking on common history.
Exports from the North African country to India includes metallic ores and metal scrap, semi-finished products and inorganic chemicals, while its imports from India include cotton yarn, synthetic fiber, transport equipment, pharmaceuticals, agricultural implements, chemicals, spices and manufactured metals. Morocco is one of the world’s top producers and exporters of fertilizers thanks to its phosphates and India is one of the major markets for Moroccan phosphate and its derivatives. India, one of the most populous countries in the world, needs fertilizers to boost agriculture output.
SOURCE: Yarns&Fibers
The trade between India and Pakistan reached at USD 339.43 million during the first two months of 2016-17 fiscal year, Parliament was informed today. Exports during April-May stood at USD 278.75 million and imports were aggregated at USD 60.68 million. Commerce and Industry Minister Nirmala Sitharaman said that in the meeting between Prime Ministers of India and Pakistan on May 27, 2014, India stated that the two countries could move immediately towards full trade normalisation on the basis of the September 2012 roadmap. “No bilateral trade meeting between India and Pakistan has taken place since then and there is no progress on the agreed roadmap,” Sitharaman said in a written reply to the Lok Sabha. In September 2012, it was agreed that Pakistan would immediately remove all trade restrictions through Wagha/Attari border, transition fully to MFN (non-discriminatory) status to India by December 2012. Pakistan, however, did not adhere to the timelines. Replying to a separate question, she said India and the US have held consultations in May under the aegis of WTO’s dispute settlement mechanism on the higher visa fee issue. “India took up the matter in the dispute settlement body of the WTO with respect to two measures by the US – measures relating to fees for L1 and H1B non-immigrant visas; measures relating to numerical commitment for H1B visas,” she said.
SOURCE: The Financial Express
Commercial operations at the Chabahar port are expected to start in the 18-24 months, which will provide India increased connectivity to Russia and North Baltic countries, among others, Parliament was informed today. “Overall, it is expected that it will take 18-24 months for commercial operations to commence at Chabahar Port,” Minister of State for Shipping P Radhakrishnan said in a written reply in the Rajya Sabha. In May, India signed a milestone agreement with Iran to invest USD 500 million to develop the strategic Chabahar Port in Southern Iran, which will give India access to Afghanistan and Europe bypassing Pakistan. On access through Chabahar port, the minister said: “India will get access to Eastern Transit Corridor to eastern part of Iran, Afghanistan (landlocked), CIS countries like Turkmenistan, Uzbekistan, etc and alternative to North South Corridor (access to Russia and North Baltic countries).” The West Coast of India with ports like Kandla (550 Nautical Miles) and Mumbai/JNPT (786 Nautical Miles) will get the maximum benefit, he added. On funds that India will provide to Iran, Radhakrishnan said: “Making credit of USD 150 million available for development of phase 1 of the port, within 4 months of receiving their application through Central Bank of Iran. Equipping both terminals with equipment worth USD 85 million within 18 months above funding.”
SOURCE: The Financial Express
Australian High Commissioner Harinder Sidhu today pitched for boosting economic cooperation with India as she indentified numerous sectors like dairy, sports, scientific research, foodgrains and education where the two countries can work together. With bilateral trade between the two nations pegged at 20 billion Australian dollars in 2015, India is Australia’s ninth largest trading partner and fifth largest export market, said Sidhu, whose family is originally from Punjab. “Even as these figures are very large, there is a lot of scope for doing more on developing economic relationship,” Sidhu told reporters.
She said Australia’s trade with China is ten times than the size of trade it has with India. “One of my objectives is to find ways to grow economic relationship between two countries (Australia and India) not just in size but also in diversity,” she said. Offering to help India’s agriculture sector, Sidhu said Australian expertise in dairy sector can help raise the milk output and reduce foodgrain wastage in Punjab. Australia was also closely working with India in the field of scientific research and technology besides the smart cities project, she said.
The Australian Institute of Sports has partnered with Punjab Institute of Sports for improvement of athletes’ performance which will involve bringing coaches and experts for excellence in the field. Sidhu said Australia has placed India at the forefront of its international relationships and both are working together more closely than ever on security cooperation. “We concluded civil nuclear cooperation agreement last year that was very a big step forward. Australia is very much supporting India’s bid for entering nuclear supplier group,” said Sidhu.
The envoy also emphasized on partnership between the two countries in the field of education. She said Australia has rolled out a three-year multiple-entry visa system for India from July on pilot basis. “This will help parents who travel to Australia to spend time with their children and they do not have to apply for visa every time they go,” she said. She said in the last 10 years, India born population in Australia has grown by three times in 10 years. “Many Indians are going for study in Australia. In 2014, there were 46,000 students, in 2015 the figure was 53,000, and this year, it can reach 60,000,” she said. To a question on migration, Sidhu said, “Australia has a global migration programme which we have been doing for four decades. We have set number of people which we take. Migration programme is a global programme.” Sindhu said Australia’s migration system was very robust and it encourages only genuine applicants.
SOURCE: The Financial Express
The rupee on Monday ended lower by 27 paise to more than 2—week low of 67.35 against the American currency on month-end dollar demand from importers in spite of sharp rise in the domestic equity market. Good foreign capital inflows failed to restrict the rupee’s fall against the dollar, a forex dealer said. The rupee opened lower at 67.19 as against the last Friday’s closing level of 67.08 at the Interbank Foreign Exchange market and dropped further to 67.36 before ending at more than 2—week low at 67.35 per dollar. The rupee had last ended at 67.37 on July 8, 2016. The domestic unit hovered in a range of 67.36 and 67.16 per dollar during the day. The dollar index was trading down by 0.04 per cent in the late afternoon trade.
Meanwhile, the RBI fixed the reference rate for the dollar at 67.2430 and euro at 73.7992. In cross—currency trades, the rupee dropped against the pound sterling to close at 88.41 from 87.90 previously and fell against the the euro to settle at 73.97 compared to 73.91 previously. The domestic currency also dropped against the Japanese yen to 63.38 per 100 yens from 63.22. “Despite of strong cues from domestic equity market, we observed the rupee depreciating against dollar. Nifty traded with positive bias in Monday’s trading session and gained 95 points to give a close at 8,636 levels. Thus to end the session, the rupee depreciated by 27 paise and closed at 67.35/USD. Trading range for the spot USD/INR pair will be 67 to 67.50/USD.”
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$ 42.43 per barrel (bbl) on 25.07.2016. This was lower than the price of US$ 42.69 per bbl on previous publishing day of 22.07.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2853.33 per bbl on 25.07.2016 as compared to Rs. 2866.08 per bbl on 22.07.2016. Rupee closed weaker at Rs. 67.24 per US$ on 25.07.2016 as against Rs. 67.14 per US$ on 22.07.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 25, 2016 (Previous trading day i.e. 22.07.2016) |
Pricing Fortnight for 16.07.2016 (June 29, 2016 to July 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
42.43 (42.69) |
45.17 |
|
(Rs/bbl |
2853.33 (2866.08) |
3043.55 |
|
|
Exchange Rate |
(Rs/$) |
67.24 (67.14) |
67.38 |
SOURCE: PIB
China's ministry of commerce (MOFCOM) has announced imposition of anti-dumping duties on acrylic fibres originating in Japan, South Korea and Turkey with effect from July 14, 2016. The anti-dumping duties would be levied on tariff numbers 55013000, 55033000 and 55063000. The rates to be levied on Japanese producers are: Japan Exlan Co – 16.1 per cent, Mitsubishi Rayon Co – 15.8 per cent, Toray Industries – 16.0 per cent, and other Japanese producers – 16.1 per cent. For acrylic fibre from Korean producer Taekwang Industrial Co, the duty would be 4.1 per cent, while it would be 16.1 per cent for other Korean producers. For Turkish producer Aksa Akrilik Kimya Sanayii A.S., anti-dumping duty on acrylic fibre would be 8.2 per cent, whereas it would be 16.1 per cent for other Turkish producers. In response to an application filed by the Chinese acrylic fibres industry, MOFCOM had initiated anti-dumping investigation on imported acrylic fibres originating in Japan, South Korea and Turkey on July 14, 2015. Subsequently, on July 13 this year, MOFCOM published its final ruling which said that dumping existed in imported acrylic fibres originating in Japan, South Korea and Turkey, and it substantively damaged the domestic industry.
SOURCE: Fibre2fashion
At a time when international customers are due to place orders for the forthcoming Christmas season, readymade garment exporters in Pakistan are finding themselves in a tight spot as they fear that shortage of cotton yarn in the country resulting in high input costs will render them uncompetitive in the global market. The apparel industry is facing severe shortage of cotton yarn due to which the local garment industry is not “capable of entertaining international buyers due to the price factor,” media reports quoting Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) chief coordinator Ijaz Khokhar said. Kohkar also alleged that the shortage of yarn was “artificial” and that had been created by the spinning as well as ginning industry, which were holding stock in the hope of further hike in rates. “... Mills are reluctant to quote us (prices) despite the fact that we are ready to purchase yarn at prevailing high market prices. Spinning mills are holding stocks on the speculation that prices will go further up amidst high additional regulatory duty on import of cotton yarn,” he said.
Pleading that it was “over burdened” by more than 11% multiple taxes and utility costs, PMRGEA demanded at least 15% special support to stay viable in the international export market, failing which business would be diverted to rival countries such as Bangladesh, Vietnam and Cambodia, Kokhar cautioned. Seeking a that solid strategy to sustain garment exporters, as the industry was a major forex earner and labour-intensive too, The PRMGEA co-ordinator said at present the exporters were a nervous lot fearing that they would not be able to ensure timely delivery of orders in the wake of “artificial scarcity of raw material. Big exporters who had been bagging considerable amount of orders were likely to be hit hard if local yarn prices remained high, he said calling for immediate withdrawal l of regulatory duty, custom duty and other taxes on import of yarn form all countries. There is no harm to import raw material from anywhere because our cotton yield is also 30% less than the last year with lower prediction for current year, PRMGEA said stressing on the need to be modify the textile policy 2014-19 with strong interaction between the government of other stakeholders. As per PMRGEA data, the apparel sector contributes more than 80% to the total textile exports and employs up to 38% of the total workforce in the country. Compared to this textile exports from Bangladesh had touched $26 billion without even growing a single cotton bale and completely depending on the imported yarn
SOURCE: Fibre2fashion
Vietnam’s garment and textile export value in the first half of this year reached US$12.6 billion, an increase of 4.72 percent over the same period last year, accounting for 41 percent of the sector’s annual target for 2016. But the growth in the industry’s export value was largely attributed to foreign direct investment (FDI) firms, while local firms had difficulties getting new export contracts, especially orders of shirts, trousers and jackets, said the Vietnam Textile and Apparel Association (VITAS). At a conference of Vietnam Textile and Apparel Association (VITAS) late last week in Hànội, experts said that local textile and garment enterprises are at risk of missing their export target for 2016 due to reduced competitive ability and lack of export orders. Trương Văn Cẩm, deputy chairman of VITAS said that Việtnam’s currency policy vis-a-vis the US dollar has remained stable, while competitors in textile and garment products such as India, Bangladesh, ASEAN countries and China, have devalued their currencies, increasing their export competitiveness, said. In addition, interest rates on banking loans are high - between 8 and 10 per cent, making capital more expensive for local enterprises. Other factors impacting the reduced competitive ability are the minimum wage, which has risen an average 26.4 percent per year for local enterprises and 18.1 percent each year for enterprises with foreign investment in the period of 2008-16. The increases in minimum wage also entail increased payments of insurance and union dues, further burdening enterprises, according to VITAS. It warned that the lack of export orders could worsen and many small- and medium-sized firms may have to shut down. Therefore, VITAS predicted the industry might earn only $29 billion from exports this year, down $2 billion from the set target, if the situation does not improve.
To solve those difficulties, VITAS proposed that the Government not increase minimum wage in 2017 and only increase it once every two or three years to create favourable conditions for competition. Other experts at the conference also urged local textile and garment firms to invest in modern technology for the production of yarn and fabric. High-tech machinery could produce higher quality products, especially fabric for export. Few local enterprises have invested in the production of yarn, textile and dying because they have large investments in building production and waste water treatment facilities, said Phí Ngọc Trịnh, deputy general director of Hồ Gươm Garment Company. Local textile and garment enterprises also proposed reducing the frequency and time it takes to check garment materials for customs clearance as a means to increase production and competitiveness.
Many local textile and garment enterprises have also complained about the number of procedures for import and export of textile and garment products. For instance, despite having animal quarantine and origin certificates from exporting countries that are members of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora.) for fox fur, feathers and bear fur for processing export jackets, local garment enterprises are still required to get import licences according to domestic regulations. The procedure takes six to 10 days, according to the VITAS representative.
Local firms also encounter overlapping procedures when importing cotton for production. They must also get an import licence each time they want to buy printers for producing garment products and the head of the enterprise must have a degree in printing. Thanh Phong, representative of Thắng Lợi International Investment and Development Company, said that this was unnecessary because printing was a small part of the textile and garment production process. The Department for Control of Administrative Procedures has collected all the opinions about administrative procedures from textile and garment companies and submitted them to the Prime Minister to seek solutions.
SOURCE: Yarns&Fibers
Global sales of textile floorings are estimated to reach US$ 109.7 billion by the end of 2016, witnessing a year-on-year growth of 4.8% over 2015, according to the latest report by Future Market Insights (FMI), a leading market intelligence and consulting firm. Asia Pacific Excluding Japan (APEJ), is the largest market for textile floorings, according to the data. The market in the region is estimated to be valued at US$ 35.8 billion by the end of 2016. Increasing construction activities and infrastructure development in countries like China, India, ASEAN countries and MEA, is expected to provide an impetus to the demand for textile floorings. In addition, to being the largest market in terms of revenue and volume consumption, APEJ will continue to remain the fastest growing market globally.
Products and applications
According to the report, carpets segment is expected to continue to account for major share in the textile floorings in 2016, to account for 90.7 %, up from 90.5 % in 2015. Demand for tufting technology, which offers lower manufacturing cost, as well as easy installation and ease of use by consumers, is expected to continue to increase over the next ten years. Among material types, synthetic textiles segment is expected to remain dominant, accounting for US$ 93 billion by the end of 2016. On the basis of application, residential segment accounted for the largest share in terms of revenues in 2015 and it is estimated to remain the same in 2016. Residential segment is estimated to account for US$ 69.2 billion in 2016, an increase of 5.1% over 2015.
Growing construction sector
Growing construction industry in the US and Asia Pacific region is estimated to drive the demand for textile floorings in 2016. Revival of residential construction sector in the US and improving infrastructure facilities in developing regions are expected to boost demand for textile floorings. While the EU economy remains shrouded in uncertainty, steady growth of the construction sector in Western Europe is expected to continue creating growth opportunities for textile floorings manufacturers.
Leading players
Mohawk Industries, Shaw Industries Group, Tarkett S.A, Beaulieu International Group, and Interface are the major players in the global textile floorings market, accounting for 12% market revenue share in 2015. Leading players in the market are focusing on increasing acquisitions of regional manufacturers in order to enhance their operations with minimum capital expenditure, thereby strengthening their value chain. The long-term outlook on the global textile floorings market remains positive, with the market value expected to increase at a CAGR of 5.7% during the forecast period.
SOURCE: the Innovation in Textiles
Revenues generated by Mauritius from textile exports to Britain will decline by about 10 percent this year as a result of the British vote to leave the European Union, the country's export association said on Monday. The EU is Mauritius' largest trading partner. The Indian Ocean island nation earns an annual average of 25.55 billion rupees ($722.77 million) from goods shipments to the bloc. Britain remains the largest buyer of Mauritian goods within the EU, accounting for 18 percent of total exports to the bloc. Textiles are Mauritius' top export to the UK, followed by seafood and sugar. "Quantity wise, there will be a drop of 10 percent in our exports to the UK as a consequence of the fall in consumerism level in UK coupled with the depreciation of the pound," the export group said in a report. The Mauritius Exports Association (MEXA) report said 90 percent of all revenues from exports of textile and apparels to the UK comes in pounds while imports are in U.S. dollars. MEXA said exporters' profitability is expected to be "squeezed both in terms of exports and imports; exports revenue being depleted with the depreciation of the pound...and costs being inflated with the appreciation of the U.S. dollar. "Companies are thereby faced with a double whammy." In 2015, textile and apparel exports to Britain amounted to 6.57 billion rupees, according to MEXA data.
SOURCE: The Reuters
The Textile Workers Union of Ghana has blamed its shrinking industry on the imitation of their designs by foreigners. In an interview on Atinka FM’s AM Drive on Monday with Kaakyere Ofori Ayim, Chairman for the Textile Workers Union, Mr. Abraham Koomson mentioned that the textile industry is facing lots of challenges at the moment with the imitation of designs being the serious of all. He added that although the union is not against the importation of textiles, it is important that those foreign companies do not infringe on their right to intellectual property. He mentioned that if this is not curtailed, some textile companies will be forced to close down. According to Koomson, the cost of production in the country is very high and the textile companies employ creative minds at a high cost to generate designs for the fabrics. He said it was disheartening to observe that designs of GTP are imitated by other companies outside the country. He mentioned that those companies use the imitated designs and fabrics for fashion shows depriving the original owners of revenue. He stated that due to some of these issues, GTP had to close down for two weeks for the company to generate some funds for subsequent operations. He added that the textile companies offer employments to a lot of people because they utilize the services of accountants, administrators, marketers, engineers among others and called on the government to pay attention to the textile industry.
SOURCE: The Ghana Web
