The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 29 SEPTEMBER, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-09-28

Item

Price

Unit

Fluctuation

Date

PSF

1010.46

USD/Ton

-0.30%

9/28/2016

VSF

2544.14

USD/Ton

0.41%

9/28/2016

ASF

1888.99

USD/Ton

0%

9/28/2016

Polyester POY

1079.42

USD/Ton

5.88%

9/28/2016

Nylon FDY

2428.70

USD/Ton

0%

9/28/2016

40D Spandex

4422.64

USD/Ton

0%

9/28/2016

Nylon DTY

1289.31

USD/Ton

0%

9/28/2016

Viscose Long Filament

2233.81

USD/Ton

-0.67%

9/28/2016

Polyester DTY

2053.90

USD/Ton

0%

9/28/2016

Nylon POY

1236.84

USD/Ton

0%

9/28/2016

Acrylic Top 3D

2623.60

USD/Ton

0%

9/28/2016

Polyester FDY

5639.99

USD/Ton

0.27%

9/28/2016

30S Spun Rayon Yarn

3103.34

USD/Ton

0%

9/28/2016

32S Polyester Yarn

1679.10

USD/Ton

0%

9/28/2016

45S T/C Yarn

2608.61

USD/Ton

0%

9/28/2016

45S Polyester Yarn

3238.27

USD/Ton

0%

9/28/2016

T/C Yarn 65/35 32S

2368.74

USD/Ton

0%

9/28/2016

40S Rayon Yarn

1844.02

USD/Ton

0%

9/28/2016

T/R Yarn 65/35 32S

2248.80

USD/Ton

0%

9/28/2016

10S Denim Fabric

1.37

USD/Meter

0%

9/28/2016

32S Twill Fabric

0.84

USD/Meter

0%

9/28/2016

40S Combed Poplin

1.19

USD/Meter

0%

9/28/2016

30S Rayon Fabric

0.70

USD/Meter

0%

9/28/2016

45S T/C Fabric

0.67

USD/Meter

0%

9/28/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14992 USD dtd. 28/09/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Clothing Manufacturers Association of India (CMAI) inks MoU with Chinese textile trade body CCCT

Indian apex clothing association, the Clothing Manufacturers Association of India (CMAI) has inked a memorandum of understanding (MoU) with the China Chamber of Commerce for Import and Export of Textiles (CCCT) to cooperate in the apparel sector. The cooperation will explore new business opportunities and exchange trade and data for mutual benefit. Speaking on the sidelines of the World Fashion Convention, CMAI president Rahul Mehta told a news agency, "CMAI has inked a MoU with CCCT to extend cooperation to each other for new business opportunities and exchange of trade and data related cooperation for mutual benefit.” According to Mehta, China has begun to reduce focus on its labour intensive sectors like the textile and apparel industry, which offers a big potential to India and fill up the space vacated by China. The cooperation is expected to benefit both China and India as while organising trade shows, both trade bodies will try to bring in new companies as well as visitors to the fair.

SOURCE: Fibre2fashion

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Higher insurance cover for handloom weavers in the works

The textiles ministry proposes to increase the level of insurance cover for handloom weavers, a sector that’s on the government radar for job creation, more than three-fold in some cases. The Mahatma Gandhi Bunkar Bima Yojana provides insurance to handloom weavers in the case of natural and accidental death and total and partial disability. The ministry has proposed increasing the cover for accidental death to Rs 4 lakh from Rs 1.5 lakh. In case of natural death, benefit may be raised to Rs 2 lakh from Rs 60,000 now. “We are working to increase the insurance cover for weavers in the handloom sector…it will encourage more weavers to get covered in the insurance net,” said an official from the textile ministry. The government released Rs 16.67 crore under the scheme in 2015-16 compared with Rs 16.39 crore in 2014-15, when 5.74 lakh weavers were enrolled. The benefit is restricted to two children of the member.

The textile sector is the country’s second-largest employer. “It is a good move to increase protection for weavers as this is the only scheme in which the benefits directly get accrued to them,” said textile expert DK Nair. The government’s effort to enhance insurance for handloom weavers is a good plan. The reform measures should include assistance for improved products, quality control, better marketing, and access to markets to enable the weavers maximise the gain from the renewed interest leading to a growing market for handloom. It will improve weavers’ incomes and quality of life.

SOURCE: The Economic Times

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Denim industry faces investment drought

The Rs 30,000 crore Indian denim industry is likely to face a shortage of fresh investment in the next five years with around 30 per cent of capacity remaining idle for years. Over the last five years, India’s denim makers have more than doubled capacity to 1.3 billion meters a year because of an abundance of cotton and subdued fibre prices. But lack of technological innovation among Indian manufacturers and the entry of international brands have forced almost a third of the country’s denim capacity to idle. “With 42 mills in operation against 25 five years ago, India’s denim capacity has more than doubled to 1.3 billion meters. Of this, 30 per cent remains unutilised,” said Subir Mukherjee, business head, denim, Bhaskar Industries, one of India’s largest denim manufacturers.

THE STRUGGLE

  • Rs 30,000-cr Indian denim industry is growing at 15% per annum
  • 30% capacity unutilised due to lack of technology innovation
  • Denim producers to focus on increase in capacity utilisation, number of mills doubled to  42 in five years
  • Estimated production at 1.3 billion meters

Apart from serving the domestic demand for jeans, India’s manufacturers used to export denim to garment factories in Bangladesh. Now, denim factories have been set up in Bangladesh to meet local demand. “We see enormous potential of growth in branded jeans,” said Rahul Mehta, president of the Clothing Manufacturers’ Association of India. Experts estimate 8 per cent annual growth in denim sales and 15 per cent in jeans over the next five years. “Indians buy two or three pairs of jeans in a year against seven pairs in the US,” said Deval Shah, business head, Diesel & GAS. “Indians should create their own brands as they understand Indian consumers better. Foreign brands are luxury ones limited to metro cities. India is gradually moving towards branding from labeling earlier. But, the average Indian business will have to shift to brand building for long-term profits in apparel,” said Mehta. Anurag Asthana, vice-president, product development and sourcing, Myntra Designs, said, “We are receiving the most traction in the value segment. The denim business will grow both online and offline.”

SOURCE: The Business Standard

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Texprocil members exhibiting at Yarn Fabric & Accessories Trade Show (YFA) 2016 eligible for 15 % subsidy

The organizers of the Yarn, Fabric & Accessories (YFA) 2016 trade show, have joined hands with Texprocil, the apex body for Indian cotton textiles exporters to offer a 15% subsidy to Texprocil members who want to exhibit at YFA 2016. YFA 2016 will be held from November 23-26, 2016 at NSIC exhibition centre, Okhla, New Delhi, India. This subsidy to Texprocil members will be over and above the 60-90% subsidy offered by National Small Industries Corporation (NSIC) to YFA 2016 exhibitors. NSIC, a government of India undertaking offers the subsidy under various categories of its Marketing Assistance Scheme. With just under two months to go, YFA 2016 has attracted over 130 companies from India and abroad, which also includes a Chinese Pavilion, as against 100 exhibitors in the 2015 edition. A special highlight of YFA 2016 is the Denim Zone, which will see top 20 Indian denim fabric makers exhibiting their denim innovations. YFA 2016 aims to redefine the way fibres, yarns, fabrics and apparel accessories are sourced and bring renowned suppliers from the these four segments closer to buyers and also offer buyers a one-stop place to source all their requirements.

SOURCE: Yarns&Fibers

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Maharashtra might beat Gujarat in cotton production

In Maharashtra, cotton ginners are expecting a good season ahead, though cotton arrivals are likely to be delayed by a fortnight because of incessant rains in the Marathwada region. Inspite of heavy rains in the Marathwada region, the crop should not be affected and perhaps for the first time, and Maharashtra may overtake Gujarat in terms of production at about 1 crore bales. Usually, Maharashtra produces around 60-70 lakh bales and around 20 lakh bales are sold to Gujarat. But this time, there could be a bumper production because of the good rains.

Incessant rains in the last 10 days have brought relief to the water-stressed Marathwada region, which has been suffering from drought for the past four years. According to estimates by other cotton bodies, Gujarat is expected maintain production of 88 lakh bales in 2016-17. Maharashtra’s cotton crop is expected to improve from 78 lakh bales in 2015-16 to 87 lakh bales in the current crop year. Jain maintains that Gujarat may produce some 80-85 lakh bales because of delay in monsoons in the state while the crop has been good in Maharashtra and there have been no incidences of pest attacks so far.

“Cotton arrivals have begun in small quantities to the tune of 200-400 quintals, which is very less. Usually the season begins from October 1. However because of the rains, there could be a delay of 15-20 days for the new arrivals to begin,” he said. However, this time around prices are ruling high at R5,500 per quintal and farmers can look forward to getting good prices, he said. In 2014 and 2015, farmers had to sell at minimum support price (MSP), fixed at R4,100. Jain’s association which has been working to getting better rates for Maharashtra cotton farmers plans to hold a meeting October 14 and 15, where discussions have been on cotton trade and where they have plans of displaying cotton samples of the region to potential buyers in Bangladesh, Pakistan and Vietnam. According to Jain, members of the association had also visited China a few years ago as part of this effort to study the requirement for cotton. Jain said a team visited Chinese buyers, traders, ginners, warehouses and provided samples of their cotton, which was tested by Chinese experts. This was followed by a visit to the Jalgaon region by Chinese traders and ginners and visits to farms. China has been the biggest importer of cotton from India until now. This time we are expecting good rates, he said.

Meanwhile, the Cotton Association of India (CAI) has retained the August estimate for the cotton crop for the 2016-17 season at 336 lakh bales, which is at the same level as that of the last month. The projected balance sheet drawn by the CAI estimated total cotton supply for the crop season 2016-17 at 398 lakh bales, while the domestic consumption is estimated at 309 lakh bales, thus leaving an available surplus of 89 lakh bales, CAI said in a statement.

SOURCE: Yarns&Fibers

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CCEA approves Project Saksham for CBEC to integrate IT system with GST Network

To help with the roll out of the goods and services tax (GST), the Cabinet Committee on Economic Affairs on Wednesday approved a new indirect tax network for systems integration of the Central Board of Excise and Customs (CBEC). Known as Project Saksham , it has total project cost of Rs. 2,256 crore which will be incurred over a period of seven years. “It will help in implementation of GST, extension of the Indian Customs Single Window Interface for Facilitating Trade and other taxpayer-friendly initiatives under Digital India and ease of doing business,” said an official release. Under the project, the CBEC’s existing IT systems will be integrated with the GST Network. This is required for processing of registration, payment and returns data sent by GSTN systems to CBEC, as well as act as a front-end for other modules like audit, appeal, investigation. The exercise is also expected to help the indirect tax department cater to the larger number of taxpayers when GST rolls out from April 1, 2017.

According to official estimates, the number of taxpayers under various indirect tax laws administered by CBEC is about 36 lakh at present, and will nearly double to 65 lakh after the introduction of GST. “CBEC’s current IT system was set up in 2008. It cannot cater to the increased load under GST without an immediate upgrade of its IT Infrastructure,” said the release. The CBEC now also plans to introduce mobile services for taxpayers and departmental users to increase the outreach of its services.

SOURCE: The Hindu Business Line

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Jaitley hopes India’s competitiveness ranking will rise after GST rollout

In a reference to global rating agencies, Finance Minister Arun Jaitley on Wednesday welcomed India’s improved rankings in a global competitiveness survey and expressed hope that it would be noted by everyone. “Rating agencies follow their own procedures. We hope everyone takes note of this (report),” he told reporters. His comments come after India jumped 16 places to the 39th spot in the Global Competitiveness Index 2016-17 and had noted that India has the highest growth amongst all G-20 countries. However, earlier this month global rating agency Moody’s had raised concerns over the health of India’s banking sector and “tangible” reforms and said a rating upgrade would be possible only after 12 to 24 months. The Finance Minister noted that measures taken by the government over the last two years have borne fruit. “Since Day One, we have taken a series of steps for structural reforms. In the last two years, we have moved up by 32 positions,” he said, expressing hope that India’s ranking on the index would improve further with the roll out of the Goods and Services Tax from next April. “The report indicates that the implementation of GST from April 1, 2017 will be taken into consideration,” he said, adding that efforts to improve Information and Communication Technology through the Digital India campaign will also help improve India’s ratings on the index.

However, a further improvement in India’s ratings on the Ease of Doing Business report may have to wait until next year as reforms including the passage of the Insolvency and Bankruptcy Code and the Constitution Amendment Bill for GST were undertaken after its cut-off date. India currently ranks 130 out of 189 countries on the Ease of Doing Business ranking and Prime Minister Narendra Modi wants the country to move into the top 50.

SOURCE: The Hindu Business Line

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India, Iran, Afghanistan keen on expediting pact on Chabahar: Nitin Gadkari

India, Iran and Afghanistan are keen on expediting the tripartite transit agreement on Chabahar port which will open a new gateway for their development and connectivity, Union Minister Nitin Gadkari said today. “We are keen on expanding scope of cooperation to cover development of entire Chabahar Port…This port is going to open a new gateway not only for the development of India but at the same time development of Afghanistan and Iran. This is a win win situation,” Shipping, Road Transport and Highways Minister Gadkari told PTI. He was speaking after holding a meeting with delegations from Iran and Afghanistan. The delegation from Iran was led by its Minister of Roads and Urban Development Abbas Akhoundi, while the Afghan team was led by the country’s Minister of Transport and Civil Aviation Mohamadullah Batash. Gadkari said India is committed to developing the Chabahar port in Iran and the work would commence soon after the completion of the tender process.

The meeting was held barely a fortnight after Prime Minister Narendra Modi and visiting Afghan President Ashraf Ghani, during their talks here, had stressed that expediting the trilateral pact would augment connectivity among the three nations. Gadkari added, “We will try to complete the project within the time schedule. We are also finding out what are the new things for which we will have opportunity for development and investment. The Iranian Minister has given lots of innovative suggestions regarding the development of business. “We are in the process and our Prime Minister is very keen on the project…The distance between Kandla to Chabahar is less than the distance between Delhi to Mumbai. So there are lots of opportunities. Gas and petroleum products in Iran are available. We will get the market of Afghanistan also and the material from Afghanistan to Chabahar will be accessible to India.” He said the problems in the project have been sorted out and the nations are looking on building up on this friendship and creating more business opportunities. A “milestone” pact on the strategic Chabahar port in southern Iran, which will give India access to Afghanistan and Europe bypassing Pakistan, was inked by India and Iran in May this year after detailed discussions between Modi and Iranian President Hassan Rouhani.

Besides the bilateral pact to develop the Chabahar port, for which India will invest USD 500 million, a trilateral Agreement on Transport and Transit Corridor was also signed by India, Afghanistan and Iran, which Prime Minister Modi has said could “alter the course of the history of the region”. Gadkari and the visiting Ministers today reviewed the latest situation on contract between Iran and India on the project, as well as procurement of equipment and financing. They also stressed on the need for expanding scope of cooperation to cover development of entire Chabahar port, projects for funding by EXIM Bank of India and reviewing participation of India in the Chabahar-Zahedan rail construction project. During the meeting, it also came up that “the road transit from Chabahar to Zahedan and Milak is very limited at present and it needs to be augmented, apart from building the rail link.” Chabahar port, located in the Sistan-Balochistan province on the energy-rich Persian Gulf nation’s southern coast, lies outside the Persian Gulf and is easily accessed from India’s western coast, bypassing Pakistan. “The bilateral agreement to develop the Chabahar port and related infrastructure and availability of about USD 500 million from India for this purpose is an important milestone,” Modi had earlier said in a joint media interaction with Rouhani.

SOURCE: The Financial Express

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BRICS agree on social security pacts for labour migration

The BRICS nations today agreed to explore and pursue bilateral social security agreements, which will encourage migration of labour among the five emerging economies of the world. “We have decided to pursue bilateral social security agreements among the BRICS members and this process will start,” Labour Minister Bandaru Dattatreya told reporters at the BRICS Labour and Employment Ministerial Meet here. On the timeframe of these agreements, a senior government official said: “These agreements can take up to two years for finalisation as there would be talks between all the members regarding the proposals.” At present, there are no bilateral social security pacts between BRICS nations (Brazil, Russia, India, China, and South Africa). Such agreements help employees regrading adjustment of their social security benefits such as pensions and medical insurance when they are working abroad. At present, India has such social security agreements with 16 countries, including France, Germany, Switzerland, Canada and Australia.

Under such agreements, Indian employees working abroad have the choice to not remit contribution in the country they are working. They are also eligible to get the benefit of totalisation period for deciding the eligibility for pension, may get pension in the country they choose to live. Besides the employers are saved from making double social security contributions for the same set of employees. Retirement fund body EPFO has been authorised to issue the Certificate of Coverage to the employees posted to the countries which have inked such agreements with India.

SOURCE: The Financial Express

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SAARC Summit set to be postponed

In the first concrete fallout of the increasing tensions between India and Pakistan in the wake of the September 18, Uri terror attack, the 19th Saarc Summit, scheduled to be hosted in Islamabad in November, is all set to be postponed. Nepal, the current chair of the South Asian Association for Regional Cooperation (Saarc), is mulling recommending either a change in venue to salvage the summit or a postponement of the summit after four of the eight member states — India, Afghanistan, Bhutan and Bangladesh —decided to pull out.

TENSION ESCALATES

  • India, Afghanistan, Bhutan and Bangladesh decided to pull out of the event
  • The SAARC Charter states that the conference is postponed should any member state decline to participate
  • Nepal, the current chair of SAARC, is mulling recommending either a change in venue or a postponement of the summit
  • According to a report by Pakistan's Geo TV, Pakistan said that the SAARC secretariat has not yet said anything officially about postponement of the conference

An official announcement to confirm the postponement is likely in the days to come. The Saarc Charter states that the conference will be postponed should any member state decline to participate. According to a report by Pakistan’s Geo TV, Sartaj Aziz, the advisor on foreign affairs to the Pakistan prime minister, said that the Saarc secretariat has not yet informed officially about postponement of the conference. He, however, said chances are that Saarc Summit will be postponed.  Aziz, according to the report, said that whenever the conference takes place, it will be held in Pakistan. He said it was not the first time India is not attending the regional summit and that it had earlier also caused the summit to be postponed four times.

The summit was scheduled for November 9 and 10. The cancelling of the Summit comes in the wake of bitter relations between India and Pakistan, which are likely to further nosedive if India decides to scrap its 20-year-old unilateral decision of granting the ‘Most Favoured Nation’ status to its neighbour. Prime Minister Narendra Modi is set to chair a meeting on Thursday to discuss the same. On Tuesday, India, Bangladesh, Afghanistan and Bhutan conveyed to Nepal their inability to attend the Summit in Islamabad in “prevailing circumstances.” While India’s Ministry of External Affairs made public its intent to boycott the Islamabad Summit on Tuesday, the other three member states confirmed on Wednesday that they will not participate in the Summit.

Apart from Pakistan, the remaining three member states – the Maldives, Sri Lanka and Nepal – haven’t taken any decision to not attend the Summit. The Saarc held its first Summit meeting in Dhaka in 1985. There have been instances in the past of the Summit being postponed or its venue shifted, but its unprecedented for as many four members to have pulled out. In their communications to the Saarc chair, the four who have pulled out didn’t refer to Pakistan by name but said the growing interference in their internal affairs by one country has created an environment which is not conducive to the successful hosting of the 19th SAARC Summit in Islamabad. In New Delhi, government sources pointed that the Saarc Charter mandates member states to not interfere in the internal affairs of other members. Article 1 of the Saarc Charter demands from member states to respect principles of sovereign equality, territorial integrity, national independence, non-use of force and non-interference in the internal affairs of other states and peaceful settlement of all disputes.

In its communication, Bangladesh said: “the growing interference in the internal affairs of Bangladesh by one country has created an environment which is not conducive to the successful hosting of the 19th Saarc Summit in Islamabad.” Dhaka said it believes regional cooperation can “only go forward in a more congenial atmosphere.” Bhutan blamed the “recent escalation of terrorism in the region” to have “seriously compromised the environment” for the holding of the summit. It said that it shared the concerns of some of the member countries on the deterioration of regional peace and security due to terrorism. Afghanistan said: “Due to increased level of violence and fighting as a result of terrorism imposed on Afghanistan”, the President Ashraf Ghani “with his responsibilities as the Commander-in-Chief will be fully engaged, and will not able to attend the Summit.” In Washington, the US asked India and Pakistan to resolve their differences through diplomacy and not through violence. On New Delhi’s decision to not attend the Saarc Summit, the White House spokesperson said: "It would benefit the region. We want to see de-escalation in the political discourse between the two countries and greater communication and coordination between them." The spokesperson said the US is not going to give a prescription to the two South Asian neighbours on how to deescalate, but that it was in their mutual interest to put aside tensions and establish more normal channels of communication.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 43.85 per bbl on 27.09.2016

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$ 43.85 per barrel (bbl) on 27.09.2016. This was higher than the price of US$ 43.74 per bbl on previous publishing day of 26.09.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 2914.25 per bbl on 27.09.2016 as compared to Rs. 2918.14 per bbl on 26.09.2016. Rupee closed stronger at Rs. 66.46 per US$ on 27.09.2016 as against Rs. 66.71 per US$ on 26.09.2016. The table below gives details in this regard:

Particulars

Unit

Price on September 27, 2016 (Previous trading day i.e. 26.09.2016)

Pricing Fortnight for 16.09.2016

(Aug 30, 2016 to Sep 13, 2016)

Crude Oil (Indian Basket)

($/bbl)

43.85             (43.74)

45.03

(Rs/bbl

2914.25        (2918.14)

3005.30

Exchange Rate

(Rs/$)

66.46              (66.71)

66.74

 

SOURCE: PIB

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China eyes steady, green growth of textile industry

China aims to achieve average annual output growth of 6-7 percent in its textile industry for the 2016-2020 period and for the industry to become more environmentally friendly, according to a development plan released Wednesday. Exports will constitute a stable share of the global textile market during the five-year period, but they will be of better quality, said the plan released by the Ministry of Industry and Information Technology (MIIT). The MIIT also set an 18-percent reduction target for the industry's energy intensity and a 10-percent drop in pollutant emission between 2016 and 2020. The industry will become greener and smarter, with cleaner technology and more customized products, according to the plan. China's textile producers saw industrial output expand 7 percent in 2015, outpacing 6.1-percent growth for the whole industrial sector, official data show.

SOURCE: The China Daily

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Sales tax irks Pakistan’s value-added textile industry

Textile industry leaders have confronted the Sindh Revenue Board (SRB) over the levy of sales tax on the supply chain of value-added textile sector. They argued that supply chain is not a service but a manufacturing activity which falls under the ambit of federal taxes. Towel Manufacturers’ Association of Pakistan (TMA) chairman Farreukh Maqbool approached chairman SRB and strongly argued that the supply chain of value added textile sector starts from sowing and plucking of cotton from fields for converting into finished cotton yarn and different made-ups. He further said that all these activities fall under the preview of federal government as they undergo different manufacturing processes and activities starting from ginning, spinning, weaving, sizing, dyeing, stitching of garments or home textiles etc. “These are manufacturing activities which could be carried out by an individual, small scale industries or under one roof of a large manufacturing facility of a composite unit and in no way could be termed as a ‘service industry’ to be taxed by provinces,” he maintained.

Pakistan Bedwear Exporters Association chairman Shabir Ahmed said even by definition the word “manufactured” in the business directory is to make goods with tools and/or machines by effecting chemical, mechanical or physical transformation of materials, substance or component or simulating material process usually or repeatedly by large scale with division of labour. In support of his argument, Mr Ahmed quoted Section 2 (16) (a) of the Sales Tax Act 1990 which states: “Any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article of product or is so changed, transformed or reshaped that it becomes capable of being out to use differently or distinctly and includes any process, incidental or ancillary to the completion of the manufacture product.”

SOURCE: The Dawn

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Pakistan - Textile Mill to shut down due to unfavorable market conditions

Due to unfavourable market conditions and continuous losses, another textile unit was shut down in Pakistan. Sajjad Textile Mills Limited, has announced its closure while 110 textiles mills have already closed their operations mainly due to increasing cost of doing business. The company stated in a filing with the stock exchange that the board of directors of the company in its latest meeting had decided to suspend the manufacturing operations of the Company with immediate effect. Sajjad Textile Mills reasoned that the company is going to close its manufacturing operations due to persistent unfavorable market conditions and continuous losses being sustained by the company. The company is a spinning company and was engaged in producing high quality combed and carded yarn. 'In order to settle certain outstanding liabilities, the Directors proposed and approved to dispose off the machinery of the company in accordance with the prescribed procedure'. The company further informed its shareholders. It is important to mention here that the Sajjad Textile Mils limited, in a bid to deal with unfavorable business environment had installed new machinery last year in Card, Drawing and Ring Departments.

Muhammad Asim Sajjad, CEO said the disparity between cotton and yarn rates, mainly attributable to unplanned influx of yarn from India, along with increased energy cost compensated the management's efforts in terms of numbers. The Company incurred Rs 193 million losses in nine months of current fiscal by the end of March 2016.

Reportedly, at least 30 per cent textile industry in Punjab has been closed down, as the cost of doing business in the textile sector has skyrocketed and the burden of incidental taxes, provincial cess, system inefficiencies and the punitive withholding tax regime have added fuel to the fire. The All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud has claimed that at least 110 textile mills have closed down their operations in the last one year due to the high cost of doing business, particularly the cost of electricity and gas. 'The high cost of doing business has started hitting textile industry severely, as further closure of operations of the textile mills was reported to the association. "The current situation is fast getting out of control, which is quite evident from the free fall of exports over the last three months," he pointed out.

SOURCE: Yarns&Fibers

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Textile Companies in Indonesia urge more legal certainty

Textile manufacturers in Indonesia request the government to provide more legal certainty in relation to the continuously rising flow of imported textile products. The rising flow is the result of the implementation of the ASEAN Economic Community (AEC) at the start of 2016. Single market and production base has been created by AEC within ASEAN member countries, implying that goods - including textiles and textile products - can flow freely within the region. However, Indonesian textile players say that many textiles that are imported from other ASEAN countries (and thus are free from import tax) actually originate from non-ASEAN countries.

This imports of relatively cheap textile products puts pressure on Indonesia’s domestic textile manufacturing industry, an industry that has already been under pressure due to external and internal factors. Since the launch of the ASEAN China Free Trade Agreement (ACFTA) in January 2010, the Indonesian market has seen a great surge in cheap textile imports from China. Meanwhile, Indonesian textile manufacturers have difficulty to be competitive on a global scale as local gas prices are high, while the industry is highly dependent on imports of raw materials from abroad, which cause high production costs, particularly in times of rupiah depreciation.

Iwan Lukmtinto, President Director of Sri Rejeki Isman, said the AEC – even nine months after the launch – continues to post challenges, in this case challenges related to the legal framework as the origin of imported products is questioned. Many of the textile products that are imported into Indonesia from member ASEAN countries are actually (partly) manufactured in non-ASEAN countries and then transshipped into Indonesia. This means domestic textile manufacturers need to compete not only with Chinese textiles and ASEAN textiles but also with textile producers from outside these regions.

Ernovian Ismy, Secretary General of the Indonesian Textile Association (API), added that it is a breach of the AEC if non-ASEAN members benefit from the free flow of goods within the ASEAN region and therefore authorities should protect the domestic textile industry. Generally, imported goods from other countries are subjected to an import tax of 15 percent (unless a trade agreement has been implemented).

Textile products need to fulfill two requirements in order to be imported under the AEC framework: (1) the cloth needs to be manufactured in the ASEAN member nation and (2) it needs to be sown in that country. However, several ASEAN member nations import the cloth that was manufactured abroad and are only engaged in the sowing process before exporting the produc to Indonesia. This is not in line with the regulations. In 2015 Indonesia imported USD $341.6 million worth of textile products from Thailand, USD $227.4 million from Vietnam, and USD $65.2 million from Singapore. Especially Singapore is a source of transhipments of textile products that are manufactured outside the ASEAN region.

Indonesia is one of the world’s largest textile producers although it lags far behind China, the world’s leading textile manufacturer. Indonesia aims to enhance textile exports, which contributed 1.21 percent of the country’s gross domestic product (GDP) in 2015. There are currently around 3 million Indonesians working in the textile industry and therefore the industry is also an important source of jobs.

SOURCE: Yarns&Fibers

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Zambian Government determined to revamp textile industry

Government says it is determined to revamp the Textile and Garment subsector because of its vast potential to spur economic diversification. Commerce Minister Margaret Mwanakatwe said the sector also offers opportunities for technological innovation and adaption for the engineering sector in the production of handloom equipment.

Speaking when she officiated at the International Trade Centre regional dissemination workshop on African Cotton Promotion and Value Addition, Tuesday, Ms Mwanakatwe said Government will continue to promote the implementation of policies and programmes that support the growth of the textile and garment sector in Zambia. She said her Ministry is to this effect revising its Commercial, Trade and Industry Policy in order to have a more integrated and coherent policy intervention that support growth and development of Zambia’s trade and industrial sector.

SOURCE: The Lusaka Times

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IMF chief sees lower US growth, calls trade barriers ‘malpractice’

International Monetary Fund Managing Director Christine Lagarde said on Wednesday the institution would lower its 2016 US growth forecast again and called policies that restrict trade “economic malpractice” that would choke off growth. Lagarde, in prepared remarks at Northwestern University ahead of next week’s IMF and World Bank annual meetings, said the US growth forecast would be reduced again because of economic setbacks in the first half. The IMF in July had cut its 2016 US growth forecast to 2.2 percent from 2.4 percent based on weak first quarter growth. The Fund will issue new forecasts next week in an update to its World Economic Outlook. Japan and Europe were seeing sub-par growth, but the picture did not appear to be deteriorating, Lagarde said.

Meanwhile, she said China and India would continue to do relatively better, growing at around 6 percent and more than 7 percent, respectively, while recession-wracked Brazil and Russia were starting to show some signs of improvement. “Adding it all up, the good and the bad, we continue to face the problem of global growth being too low for too long, benefiting too few,” Lagarde said. The former French finance minister strengthened her warnings on the dangers of erecting more trade barriers, calling this “a clear case of economic malpractice” that would deny economic opportunities to many workers, hurt global supply chains and raise costs of many basic goods. “If we were to turn our backs on trade now, we would be choking off a key driver of growth at a point when the global economy is still in need of every good piece of news it can get,” Lagarde said. Governments should pursue instead more and better policies to retrain workers displaced by trade and automation, invest more in education and infrastructure and pursue efficiency reforms to help drive growth in their economies, she said.

SOURCE: The Financial Express

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UK - TBA Textiles plans to invests £700,000 in its Rochdale manufacturing plant

A leading yarn manufacturer, TBA Textiles planning to invest a further £700,000 in new technology and equipment with the support of a £150,000 grant from the N Brown Textiles Growth Programme. This follows a previous investment earlier this year of more than £110,000. The investment marks a return to British roots for the business, which in recent years outsourced part of its production to the Netherlands. TBA Textiles has reaffirmed its commitment to the future of manufacturing in the UK with an investment that sees 16 new jobs and two new apprenticeships created in Greater Manchester, in addition to the 18 jobs associated with an earlier investment this year.

Significant investment

The help and support offered by the N Brown Textiles Growth Programme in the form of a second grant of £150,000 is greatly appreciated, and goes a long way to assist in their plans to invest around £700,000 into their own manufacturing plant in Rochdale over the next two years. “This significant investment, will in turn, secure our position at the forefront of development and manufacture of high performance technical textiles, and, additionally, allows us to invest in our local and wider community in the form of new job opportunities and apprenticeships.”

N Brown Textiles Growth Programme

Set up by the Manchester Growth Company for the Combined Authority in Greater Manchester and the Alliance Project, the N Brown Textiles Growth Programme is delivered by the Business Growth Hub and funded by the Regional Growth Fund. It has supported 56 companies in Greater Manchester, creating and safeguarding 856 jobs. With £5 million of government funding awarded since 2014, Greater Manchester textiles companies have themselves invested more than £28 million. Since the start of the programme in 2014, 237 companies have been supported by the Textiles Growth Programme, creating and safeguarding nearly 3,500 jobs and securing £87 million of private sector investment through £20 million of grant support. “Although early days after the Brexit vote, the textile industry is still showing the confidence to invest which is a healthy indicator that the sector is still growing. This is helped, in part, by government funding, and a strategy to invest in this industry which is so important to Greater Manchester,” said Lorna Fitzsimons, director, N Brown Textiles Growth Programme.

SOURCE: Yarns&Fibers

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