The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 29 NOV, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-11-28

Item

Price

Unit

Fluctuation

Date

PSF

1065.02

RMB/Ton

0%

11/28/2016

VSF

2200.81

RMB/Ton

0%

11/28/2016

ASF

1848.45

RMB/Ton

0%

11/28/2016

Polyester POY

1119.18

RMB/Ton

0%

11/28/2016

Nylon FDY

2527.18

RMB/Ton

0%

11/28/2016

40D Spandex

4260.10

RMB/Ton

0%

11/28/2016

Polyester DTY

5444.26

RMB/Ton

0%

11/28/2016

Nylon POY

1328.57

RMB/Ton

0%

11/28/2016

Acrylic Top 3D

2353.88

RMB/Ton

0%

11/28/2016

Polyester FDY

2021.74

RMB/Ton

0%

11/28/2016

Nylon DTY

1386.34

RMB/Ton

0%

11/28/2016

Viscose Long Filament

2671.59

RMB/Ton

0%

11/28/2016

30S Spun Rayon Yarn

2844.88

RMB/Ton

0%

11/28/2016

32S Polyester Yarn

1704.04

RMB/Ton

0%

11/28/2016

45S T/C Yarn

2541.62

RMB/Ton

0%

11/28/2016

40S Rayon Yarn

2989.29

RMB/Ton

0%

11/28/2016

T/R Yarn 65/35 32S

2223.91

RMB/Ton

0%

11/28/2016

45S Polyester Yarn

1834.01

RMB/Ton

0%

11/28/2016

T/C Yarn 65/35 32S

2195.03

RMB/Ton

0%

11/28/2016

10S Denim Fabric

1.33

RMB/Meter

0%

11/28/2016

32S Twill Fabric

0.82

RMB/Meter

0%

11/28/2016

40S Combed Poplin

1.15

RMB/Meter

0%

11/28/2016

30S Rayon Fabric

0.65

RMB/Meter

0%

11/28/2016

45S T/C Fabric

0.63

RMB/Meter

0%

11/28/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14441 USD dtd. 28/11/2016)

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

 

Textiles ministry proposes 2 schemes for powerloom sector

The ministry of textiles has proposed two new schemes – New Powerloom Credit Yojana and Solar Energy Scheme – to the government of India, said Union textiles minister Smriti Irani. These schemes are currently being examined by the government and have been introduced to help powerlooms to operate at their optimal capacities and avoid stoppages. Factors such as reduction in the purchase of fabrics and increased input costs have resulted in partial stoppage of powerlooms in a few clusters across India. Powerlooms in certain states like Gujarat and Maharashtra are operating at sub-optimal capacities. Thus, the textiles ministry is considering these schemes, Irani said in a written reply in the Lok Sabha.

The government has already introduced multiple schemes to accelerate the development of the powerloom sector. These include in-situ upgradation scheme for plain powerlooms, Group Workshed Scheme to help in the construction of worksheds, Group Insurance Scheme for social security, Integrated Skill Development Scheme (ISDS) for skill upgradation and Integrated Scheme for Powerloom Sector Development (ISPSD) for extending support in the form of buyer seller meet, yarn banks and setting up of common facility centres. Additionally, the government had earlier approved a special package for the apparel sector of Rs 6,000 crore, which includes special incentives for employment generation, relaxation under Section 80JJAA of Income Tax Act and enhanced duty drawback covering state levies among other things.

SOURCE: Fibre2fashion

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India ITME to promote 'Make in India' textile engineering

The 10th edition of India International Textile Machinery Exhibition (India ITME 2016) will promote 'Make in India' in textile engineering to foreign business visitors. The textile engineering exhibition is one of the most awaited business events for textile industry members and will also propagate government schemes and incentives for the textile industry. With presence of 1,050 exhibitors from 38 countries, spread over 17 chapters and 11 exhibiting halls, the exhibition will see 24 product launches, organisers said. This once in 4 year mega event, will take place from December 3-8, 2016 in Mumbai. The six-day textile engineering exhibition will have a strong presence and participation from the Central and state governments. Gujarat and Karnataka—two key states having strong presence in textile industry—are participating in the event as state partners.

India is not only a strong market but is also explored as a hub for training and skill development by many neighbouring countries in the field of textile & textile engineering. Foreign and domestic business visitors, academicians, research scholars, government officials from neighbouring regions such as Philippines, Myanmar, Bangladesh, Sri Lanka, Iran, Turkey, Brazil, Indonesia, Poland, Malaysia, Kenya, Ethiopia, and Egypt will be visiting India ITME and looking at India as an opportunity for business and investment.

India being one of the emerging economies, the demand for textile machinery is growing. The growth of industry is based on increasing demand of textile and apparel market in India. The textile sector is one of the largest contributors to India's exports accounting for approximately 11 per cent of total exports.  India's overall textile exports during FY 2015-2016 stood at $40 billion and the industry is expected to reach $223 billion by 2021.

SOURCE: Fibre2fashion

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FDI inflow in Indian T&C sector up 16%

Make in India ‘Textile & Apparel Sector’ – Achievement Report of Department of Industrial Policy and Promotion (DIPP) and Ministry of Textiles (MoT), Government of India by KMPG states that FDI equity inflow in the Indian textile and apparel sector surged 16 per cent in FY 2015-16 over FY 2013-14. Major investments (by foreign collaborators and Indian companies) in the sector during April 2014 to March 2016 are also mentioned in the report which include investment worth US $ 51.94 million in Fashion India Private Limited by E-Land Asia Holdings Pte Limited; US $ 37.58 million in Procter & Gamble Home Products Ltd. by Procter & Gamble Home Products Ltd.

The report also underlines that share of textile and apparel in total exports increased to 15 per cent in FY 2015-16 from 13 per cent in 2013-14. Growth was majorly seen in export of readymade garments, wool & woollen textiles, silk, carpets, coir and coir products, and handicrafts. Textile and apparel exports are estimated to reach US $ 62 billion by 2021 from the current US $ 38 billion in 2016, as per the report.

Talking about the Integrated Skill Development Scheme (ISDS), it says that from 2014-15 to 2016-17 (till September) the Ministry has trained a total of 536,683 youth; out of them 393,363 (73 per cent) have been successfully placed. On the other hand under Prime Minister Kuashal Vikas Yojana, Apparel Made-Ups and Home Furnishing SSC (AMHSSC) trained 79,245 people in 2015-16 but placed only 5,116 (6.45 per cent), while Textile & Handloom Sector Skill Council trained 29,212 people, out of which 20,665 (70.74 per cent) were placed.

SOURCE: The CCF Group

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Demonetisation: Apparel sales down 30-40% on liquidity hit but improvement expected

The $100-billion Indian textile and apparel industry has lost 30-40% of business since the surprise announcement of demonetisation of high value currency notes on November 8. Apparel sale in domestic markets had stopped in the initial days and recovered gradually. Consumers continue to face liquidity tightness, resulting in deferring of purchase. Hence, further recovery might take some time. As the wedding season is on, this would affect the revenue and profit of manufacturers, as apparel purchase is seasonal or occasional. "The effect on denim sales is even worse. While exports are not affected, the decline in domestic retail sales would definitely hit sales and profit," said R K Dalmia, chairman, The Cotton Textiles Export Promotion Council.

Market participants believe output needs to be curtailed to control supply and avoid long-period discounting and stock clearing sales. Sameep Kasbekar, an analyst with Emkay Global Financial Services, said in a note on Aditya Birla Fashion & Retail: "Due to demonetisation of Rs 500 and Rs 1,000 currency notes, there has been a sharp dip in cash (45% of overall) sales and slowdown in overall retail consumption. The company expects such headwinds to persist for at least a quarter more." The apparel sector, however, has hailed the overall demonetisation scheme as good for the long term, on expectations of transparency in the entire value chain. Many handloom, powerloom and cottage fabric manufacturers continue to operate largely in cash. Any business with retail connections generates unbilled amounts; in garments, a large section of retailers at the bottom of the pyramid deals largely in cash, without generating bills. Demonetisation is expected to curb all unbilled sales. "The disruption is obvious. Initially, sales were down completely. With the availability of new currency notes, sales have improved to around 60%. We expect to gain till 85% in some time. Recovery of the remaining 15% would take some time, depending upon liquidity management of the Reserve Bank of India," said Naishadh Parikh, Chairman, Confederation of Indian Textile Industry. He expects some announcement shortly of new measures by the government to enhance liquidity into the system.

SOURCE: The Business Standard

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Textile body seeks Centre's help to ease short term pains

The Indian Texpreneurs Federation (ITF), a body of textile industry in the region, on November 28 sought Centre's assistance to ease the short term problems, in the wake of the ban on high denomination currency notes. In a letter to Union Textile Minister Smrithi Irani, ITF said that the industry was ready to absorb short term pains for the long term definite gains and was confident about strong consumption driven growth in future due to the cleaning up act, which was good for the industry to organise itself towards a efficient business operations. However, the sector was looking for some practical help from the Centre, as due to low spending, consumption was taking a hit and the retailers naturally were reducing the purchases, which was affecting the manufacturing in terms of poor off take of yarn and fabrics form the buyers, ITF Secretary, Prabhu Dhamodharan said. During these lean times, it was natural for the trade to expect more credit from manufacturers like spinning mills, our collections also badly hit and being a peak cotton season, mills need more money in both sides for more credit in yarn sales and more money required to store cotton, he said.

Stating that the mills were placing requests with their respective bankers for enhancement of working capital, ITF requested the Centre to advise banks to consider the requests or grant one time short term working capital requirements. Any reduction in interest rates will also help working capital intensive industry like spinning to ease out some difficulties owing to low volume of business and with more low cost money in the hands of banks, he said adding. "This move is possible and will trigger positive sentiments across the industry." As Merchandise Export from India Scheme (MeIS), can increase the cost competitiveness of our product to help spinning sector to capture more market share in exports, Prabhu said and appealed to the minister to recommend the measures to finance ministry for further action.

SOURCE: The Deccan Chronicle

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Cash crunch hits textile units

Cancellation of legal tender status of Rs 500 and Rs 1,000 has adversely hit the textile and garment industry. Unable to procure raw materials and pay contract workers, several textile units have slashed production by 20 - 30 per cent. Hit hard by the cash crunch, many units in the region have laid off contract workers. According to experts of the total working staff, about 20-30 per cent of the workers involved in non-perennial jobs are on contract. In the series of demonetisation, unorganized or daily wage workers are the most hit as majority of them are migrant workers and do not have bank accounts to receive direct payment through banking channel. Vippy Spinpro's managing director and chairman Madhya Pradesh Textile Mills Association Piyush Mutha said, "Demonetisation has led to severe shortage of funds for regular operations in the textile industry hitting day to day business operations." Industrialists said that scrapping of large currency notes has hit the purchase of raw material, sale of finished goods and other routine factory expenses and small machinery items. Industry participants said that the availability of raw material for textile mills - cotton has reduced as farmers are brining less produce in the market due to cash crunch. They said merchants do not have cash to give to farmers who do not accept cheques.

The association secretary M C Rawat said, "The main worry is how to dispense payment to workers next month. Most of them do not have bank accounts. Textiles is a cash intensive industry where cash is required for running daily activities." Market experts said that sales of garments have also reduced sharply due to cash crunch as customers are avoiding purchase. Maharaja Tukojirao Cloth Market Merchants Association president Hansraj Jain said, "Sales have gone down drastically as purchasing power of consumers have declined. Rotation of money has stopped and businessmen are not in a position to accept new orders." Jain said workers payment is major issues as the withdrawal limit from banks for current accounts are very less.

SOURCE: The Times of India

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TPP scrapping may benefit Indian textiles

United States President-elect Donald Trump has announced that the US will quit Trans-Pacific Partnership (TPP) trade deal on his first day in the White House. This announcement has also revived the hopes of Indian textile and garment industry for doing business with the US. Trump, in a video had said that TPP is a potential disaster for the US.  “We are relieved with Trump’s announcement. If the TPP trade policy is to be ratified, Indian textile and apparel sector will incur huge loss. Withdrawal from the TPP policy will have a positive effect on the Indian business, especially textiles as TTP trade deal followed the rule of ‘yarn forward’. According to this clause, there will be no export of yarn production and all the operations forwards to any of the 12 countries involved in the TPP trade pact,” Kripabar Baruah, deputy director of The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) told Fibre2Fashion. “If the TPP policy is scrapped, it will be a boon for the Indian textile market. Hopefully, more focus will now be on the Regional Comprehensive Economic Partnership deal. However, in terms of exporting to the US market, China is a strong competitor of India. China has the liberty to export multiple product lines to US. With high charges on export of man-made fibres (MMF), it is not possible for us,” said Raja M Shanmugham, president of Tirupur Exporters’ Association (TEA).

However, representatives of the Indian textile industries doubt about the trading relations with the US as Trump is determined to promote America in the production sector, “There is a difference of just around 4 per cent in the production cost of textile between China and US. With time, this difference will reduce. America will become independent in the production sector in due course of time. This will automatically affect our exports to the US,” said Baruah. “There is a significant rise in the export of textiles to the US in the last few years. Earlier, US would import only value-added items such as embroidered and polycotton fabrics, and high-fashion products among others from our country. The situation has begun to change and the demand for yarn is also growing,” added Baruah.

SOURCE: Fibre2fashion

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Trade restrictions on the rise as protecting domestic industry becomes priority

The issue of demonetisation and its impact on various segments of the economy are being so hotly debated in Parliament and outside and there is no reason why it should not take overriding priority over all other matters. One needs to focus really hard on a specific aspect currently being talked about widely in other countries. While the votaries of globalisation and for that matter, the dream of a liberalised economy with free and fair trade, appears to be one of the critical elements in each country’s economic agenda, the protection of domestic industry and other segments of the economy is very much in the air.

There is no denying that the election of Donald Trump as the US president has freshly strengthened the urge for economic protectionism. The atmosphere is ripe to reorient the economic policies in favour of indigenous economic agents in terms of their current share in the market and to enhance the same in the interest of employment, income generation and profitability, the indicators of which have all been showing signs of decline in the recent period. Stimulus measures in the form of massive investment to provide impetus to the domestic industry announced in China, Japan and Asean countries have encouraged others to pursue the same with more vigour and enthusiasm. In another two months’ time, the new US government is going to join the fray.

Already a large number of countries are functioning under the Regional Cooperation of Economic Partnership (RCEP) and bilateral free trade programmes offering dutyfree exchange of goods and services across the borders. It became apparent that increased investment by the partner enjoying the duty free benefits for its exports as per the agreement were not actually happening. The continuation of periods of subdued demand, price depression and declining profitability rescheduled the completion dates of a large number of projects and excess capacity was taking a toll on the viability of all fresh capacities.

Meanwhile, the proposed Free Trade Area in the Asia Pacific is making news with China taking the lead to combat US attempts to forge the biggest deal of Trans Pacific Partnership (TPP). In spite of the near-agreement on signing the much-awaited TPP in the last meeting, it is quite certain now that the US would come out of the deal in the interest of domestic manufacturing and service sectors. In all likelihood, the Local Content Rule would be given priority in all domestic procurements by the federal government in the US by even changing the Nafta (North American Free Trade Agreement) framework.

The rise in the number of anti-dumping and countervailing duty measures in steel in the last two years is indicative of the primary concern of various countries in protecting the interests of the domestic steel industry from dumping and cheap flow of imports especially from China, CIS and Chinese exports of HRC/S, plates, CRC/S, GP/coated sheets are barred from entering the US, the EU, India, Vietnam, Thailand and many other countries. In addition, the number of technical barriers to trade (TBT) prescribing national standards conformance by the importers has been resorted to by various countries. The latest concern to global trade, particularly in steel, relates to possible declaration of China as a market economy by December 2016 as a part of Chinese accession to WTO.

The adoption of market prices in China which are normally way below the global prices would make proof of dumping in AD/CVD investigations (based on constructed prices in third countries) pretty difficult. Similarly, the applicability of actionable subsidies in cash grants, equity infusions, preferential loans, subsidies for utilities, tax rebates etc in China would be difficult to prove under the market economy concept. Already, the US and EU have appealed to WTO against this declaration. One therefore concludes that global trade which is already showing signs of slogging would be further strained by the above developments. In the past few months, the global prices have been rising, especially in flats, thereby encouraging many steel-producing countries to focus on exports for the surplus categories. But trade-protective measures are literally closing the major consumption points. Under this scenario, domestic markets would continue to provide scope for marketability of steel products for indigenous producers. India perfectly fits the bill.

SOURCE: The Financial Express

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Peter England ties up with Ministry of Textile

Handloom has witnessed a boom in the Indian clothing market with several brands launching their handloom collections. The latest is Peter England which on Monday introduced its smart formals range for men made with the handwoven fabric. Minister of Textiles Smriti Zubin Irani was present on the occasion to support the move. The menswear brand from the house of Aditya Birla Fashion and Retail Ltd announced the strategic collaboration with the Government's India Handloom Brand to work together to promote the handloom industry The menswear brand from the house of Aditya Birla Fashion and Retail Ltd (ABFRIL) announced the strategic collaboration with the Government’s India Handloom Brand to work together to promote the handloom industry in the country. The announcement was made in Irani’s presence along with Manish Singhai, Brand Head, Peter England, and Alok Kumar, Development Commissioner: Handlooms. Irani seemed excited with the move. She said such steps will widen the scope of handloom in menswear category that was earlier mostly restricted to kurtas. “Handloom is not only about saris. Yes, in menswear, it was mostly about kurtas but now I am glad that men who want to wear their legacy to office have choices now. The popularity of the brands is an identification of support that handloom sector is getting worldwide. We, at the Ministry of Textiles, are extremely happy with the support that we are getting from the industry,” she said. “We also want to ensure that not only quality products are given to the citizens worldwide, but also ensure that the benefit of those procurement will go directly to the weavers,” she added after officially launching the collection. Singhai said they are planning to extend the range to various levels. “We are presenting these 17 designs with limited edition collection which are available at 15 Peter England stores in Delhi and NCR. We hope that this partnership goes deep and expand this collection to more stores. “We have made an humble beginning, but in the next financial year, we intend to procure one lakh metres of fabric from clusters of India and convert them into garments. We plan to put them in 75 stores,” he said. The Indian Handloom Brand was launched by Prime Minister Narendra Modi on August 7 last year in order to promote the branding of high quality handloom products with zero defect and zero impact on the environment.

SOURCE: The India Retailing

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Customs clearance made easy with no paper documents

Importers and exporters will not have to submit paper documents for customs clearance from December this year, as part of the government efforts to improve the ease of doing business. “This will help the importers and exporters to move towards electronic messaging and paper–free environment,” said the Finance Ministry on Monday. The Central Board of Excise and Customs has now notified new norms under which importers and exporters will not be required to submit paper documents such as GAR 7 form, challans, trans-shipment permits, shipping bills and bills of entry to banks, customs ports and the Directorate General of Foreign Trade. “As 95 per cent of the importers are making e-payments for duty, these documents can be viewed on the ICEGATE e-payment Gateway, so print-outs of forms and challans are not required,” said the Ministry.

Similarly, trans-shipment permit information is sent electronically to the carrier, the transporter undertaking the trans-shipment, the custodian of the gateway port and the ICES system at the destination ICD or port so a physical print out is not required. “It has also been decided to discontinue the printing of Exchange control copy of bill of entry,” said the Ministry. All customs houses at ports, air cargo complex, ICDs and CFCs have been asked to issue Public Notices on this move.

SOURCE: The Hindu Business Line

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Chabahar, a geo-political plus for India

In Tehran, there is little confusion about how they perceive the southern port city of Chabahar. Journalists and members of the strategic community in Iran’s sprawling capital explain in a matter of fact fashion that Chabahar is the city where India is building a port. This generous description of India’s investment in this strategically located city —which geographers and historians claim is the starting point of Indian sub-continent —should suggest a paradigmatic shift in ties between the two countries, but a visit to Chabhar, located barely 75 kilometres from China funded Pakistan’s Gwadar, presents a complicated picture more so after the election of Donald Trump as the next US President.

Strange setting

The Iranian government is keen that India fast-tracks its commitment to build the three jetties allotted to it so that the trilateral treaty between India-Iran and Afghanistan to improve connectivity and trade acquires meaning. The Indian government’s perception of the speed at which the project has to be executed doesn’t really square with Iranian expectations, but this is not holding back Tehran from leveraging it as the project that can change Afghanistan. During the forthcoming “Heart of Asia” meet to be held in Amritsar on December 4 to discuss regional solutions to stabilise war torn Afghanistan, the very articulate foreign minister of Iran, Muhammad Javad Zarif Khonsari, would position Chabahar project as an economic panacea for the landlocked country.

For a project that has provided a grand strategic option to sidestep Pakistan and reach Central Asia, Chabhar still suffers from media darkness. ‘Google search’ yields no ground reporting in any TV or newspaper. Even when an alleged R&AW agent, Kulbhushan Jadhav, who claimed to be based in Chabahar, was arrested by Pakistani authorities for spying in Baluchistan, there was no reporting from here. From this standpoint, it was important to visit this port city to understand the strategic and commercial implications of the promised Indian investment.

Chabahar surprises a first-time visitor. Its airport is located in the middle of a desert and seems straight out of an Indiana Jones film. A Second World War airfield in the neighbouring town of Konarak— yes Konarak— this is being replaced by a swankier one that is coming up in Chabahar. The road to the port city that passes the Martian Mounts — an amazing geo-morphological phenomenon that gives tourists a feeling of being on planet Mars — is truly world class. The road also passes the fishing village of Tis, overlooked by a decrepit Portuguese mud fort. For long, its description of a somnolent fishing village served for Chabahar as well. Once you enter its free zone then it seems a different story all together. It is then one realises the enormous investment and effort successive Iranian governments have made to build a port away from the trouble-torn Persian Gulf.

Work in Chabahar began in the 1970s when Shah of Iran, Reza Pehlavi , was in power. After the 1979 Islamic revolution, the US companies involved in various infrastructure projects left the country. These projects were taken up by new government. It was during the Iran-Iraq war when the ships were reluctant to enter the Strait of Hormuz that the port of Chabahar gained importance.

Revenue potential

After the war ended, the Iran government began to see in the development of Chabahar an opportunity to build the eastern part of the country. The ambitious plan was to weave a network of roads and railways to help in the transshipment of goods to neighbouring countries. While Bandar Abbas was being used for sending goods through the evolving North-South Corridor to Europe, Chabahar was expected to deal with the Eastern axis that could carry goods from here to landlocked Afghanistan and Central Asia.

The Iranian government, after the easing of sanctions earlier this year, views extraordinary potential through transit fees. It believes in a few years time its revenues could exceed that from oil and gas. As of now, only 10 million tonnes or 10 per cent of its transit capacity has been realised. When it offered India an opportunity to develop the port in Chabahar to fix its problems about sending goods to Afghanistan due to Pakistan refusal to give land access, it was not just altruism to help war ravaged Kabul, but also hard-nosed realism. Afghanistan was cribbing about its transit arrangement with Pakistan and was keen to liberate itself from its stranglehold. Iran’s Chabahar gave an important opportunity to cross over through socially and politically stable Iran and trade with India. For Indian companies, too, it was an opportunity to reach Kabul and beyond to Central Asia. Chabahar is about 900 kilometres from Gujarat’s Mundra port.

China’s hand

Development of Gwadar port —entirely funded by the Chinese — and the coming up of $46 billion 2,400 kilometre long China, Pakistan Economic Corridor (CPEC) to Kashgar in Xinjiang province blocked India’s ambitions to revive its traditional routes to Central Asia. This way, CPEC not just formalised the 1947 partition between India and Pakistan, but it also conveyed to New Delhi an important message: there was no economic compulsion for Islamabad to normalise economic ties with India. China, in some ways, had snatched Pakistan from the Indian sub-continent. Though, it is being denied, India decided to invest in Chabahar, to neutralise these happenings and give meaning to its policy in Afghanistan. Quite expectedly, Afghanistan traders are laying considerable store on the development of the port, which is being deepened to receive ships of higher tonnage. In a month’s time, the port authorities would be ready for Indian ships.

Meanwhile, Omani passenger ships have begun to take advantage of the port. A day after this writer’s visit, the first passenger ship was received here. “Why can’t we have Indian ships visiting Chabahar even before they begin trade,” wondered a member of Iran’s think tank. Although the India-Iran-Afghanistan agreement lays down specific time lines for the completion of the project, there are fears in Tehran that the Indian government may go slow in fulfilling these targets as it would like to know the mind of the new US administration about the Iran nuclear deal. If India is weighed down by this attitude then it would be doing great harm to its cause as Chabhar is not just a new trading post, but also a staging point for launching India’s soft power as everyone here speaks in Hindustani or Urdu as they like to call it.

SOURCE: The Hindu Business Line

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KSEZ port coming up in East Godavari

Another port is coming up near the Kakinada port in East Godavari district in the Thondangi mandal. The AP Pollution Control Board has issued a notification to conduct the public hearing on December 30 for the port. At present, there are two ports in Kakinada - the old anchorage port which mainly handles agricultural cargoes, especially rice exports, and the new deep water port. The proposed new port by Kakinada SEZ Limited will be located in the Kona village of Thondangi mandal in the district and it requires roughly 1,800-1,900 acres. It is estimated that the project cost may be Rs. 2,041 crore. An all-weather, deep water port will be built and in the first phase, will be able to handle 16 million tonnes of cargo per annum. Dry bulk cargo and multi-purpose cargo will be handled at the port.

SOURCE: The Hindu Business Line

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Economy grew 7.1% in first half: Sitharaman

Commerce and industry minister Nirmala Sitharaman said the economy grew by 7.1 per cent in the first half of 2016-17, though the central statistics office is yet to release Gross Domestic Product (GDP) data for the second (July-September) quarter. "Despite subdued growth in the world economy, India has maintained a GDP growth rate of 7.2 per cent in 2014-15, 7.6 per cent in 2015-16 and 7.1 per cent during April to September of 2016-17," the minister said in a written reply in the Lok Sabha, according to Press Trust of India. The economy grew by a five-quarter low of 7.1 per cent in the first three months. Figures for the second quarter are to come on Thursday. "We have not released the data yet to anyone," said an official from the ministry of statistics and programme implementation. If the minister's statement is correct, the economy grew 7.1 per cent in the second quarter as well.

SOURCE: The Business Standard

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GST: To sustain revenue collection, a smooth transition is critical

The first interface with a new fiscal legislation that public has, while transiting from the old, is always through the transitional provision in a new enactment. If the changes are major, the transit provisions are required to be more elaborate. Since the draft GST law is the outcome of convergence of various fiscal legislations at the state and central levels, therefore provisions relating to transit are explained in an elaborate manner. These provisions figure in Sections 141 to 162E of the law. There are 27 sections devoted to transition only.

Reportedly, another version of draft legislation has been circulated to the states, but the same has not been put in the public domain, as yet. Therefore, at this moment, we can only analyse the version that is available to us. Transition provisions serve a restricted purpose of envisaging various situations that may arise while moving to a new legislation and gradually become of historical importance with the passage of time. In the draft GST Bill, they broadly, and inter alia, provide for continuity of officers with their previous designations, both under the central and state legislation pertaining to tax on goods and services, automatic migration of existing taxpayers to GST, etc. It also provides that the Cenvat credit, as indicated in the last VAT, central excise or service tax returns shall be eligible to be carried forward, if it is otherwise permissible under both the old and the new law. Therefore, for the business, last return under the old law has to be prepared and the credit has to be properly documented. This is of paramount importance, as claims later may become difficult to sustain. Since there will be quite a few assessees who will come in the tax net for the first time due to lowering of SSI excise limit from Rs 1.5 crore to Rs 25 lakh (as approved by the GST Council), it has been provided that such units shall be entitled to take credit of inputs/goods in stock as on the last day of operation of old law, provided they are in possession of invoice which is not earlier than 12 months from the appointed day. Similar provisions exist for persons opting out of composition scheme under the new law; they can also claim Cenvat credit after the appointed day (i.e. the date on which new GST law comes into force), provided they possess the relevant invoices which are not more than 12 months’ old.

To the contrary, a person who is switching over to ‘composition scheme’ from the normal tax regime shall be required to reverse credit to the extent of existing stock/inputs. Similarly, there are other transit provisions dealing with stock position, supplementary invoice, debit or credit note, pending refund claims, etc, during transition, which answer most doubts, if not all. Since there can be various situations, the Central Board of Indirect Taxes can issue clarifications, which hopefully it will be promptly doing based on difficulties experienced and feedback received.

Efficiency in issuing clarifications and advice to field officers to put the issues on hold till clarifications are issued in order to avoid litigation will be a welcome move. However, in the ultimate analysis, a smooth transition is always achieved through a taxpayer-friendly approach and thorough understanding of tax authorities. Implementation of Finance Act, 1994, is an example in this regard. The service tax was popularised through the ‘voluntary compliance’ approach and, in the beginning, internal instructions of least searches/summons were issued, and thereafter, stringency in and around 2012 was brought in and arrest provisions introduced. The introduction of the Finance Act, 1994, was smooth enough and ultimately service tax has become a big revenue earner for the central exchequer. The draft GST law has strong enforcement provisions. It is understandable also because this is a switch over of the old taxes to the new, rather than a new one being introduced. The pressure of earning enough revenue, on central/state officials from the initial stage itself, will be phenomenal. As legislation is not meant to generate additional source of revenue like fresh Finance Act in 1994 was. It is incumbent upon authorities to maintain and augment the revenue, which was being generated till the cut-off year both by central and state governments. This can bring in a tendency to use enforcement stick extensively right from the beginning, which may make the whole tax regime unpopular.

Therefore, officers have to be properly trained for a balanced approach, striking a middle path between voluntary compliance and enforcement which is just appropriate to sustain normal buoyancy in revenue collection, in the transition stage. Again, in transition, there are various procedural lapses that happen from the side of the assessee due to lack of knowledge. These are generally liberally viewed even by courts. The normal tendency of revenue officials is to litigate at every point of procedural lapse and allow it to be decided by courts, who with near unanimity deal with such procedural lapses with disdain if they seek to deny substantive benefits, otherwise permissible. But all this results in avoidable litigation swelling up in numbers. The best way forward is to appoint chief commissioner/commissioner-level officers as the authority for condoning such procedural lapses, with or without imposing a nominal fine up to Rs 20,000, so that litigation and resultant compliance cost do not swell for small business enterprises. By resorting to such matters, both central and state governments can considerably reduce the fear factor of new tax regime and can transition smoothly.

SOURCE: The Financial Express

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India’s trade deficit with China rises to $53 bilion in FY16

India’s trade deficit with China increased to USD 52.69 billion in 2015-16 from USD 48.48 billion in the previous financial year, Parliament was informed. During the April-September period of 2016-17, the deficit is at USD 25.22 billion, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. “Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like telecom and power,” she said.

India is negotiating the Regional Comprehensive Economic Partnership (RCEP) trade agreement keeping in view “its offensive export interests” as well as sensitivities with respect to all participating countries including China, she said. She added that efforts are being made to increase overall exports by diversifying the trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non-tariff barriers. Further, the minister said that as India and China are WTO members, any restrictions imposed on trade needs to be WTO compliant. No blanket ban can be imposed on China or any other member country under the WTO framework, she added.

Replying to a separate question, she said India’s import of bulk drugs from China stood at USD 1.63 billion in 2015-16, which constitutes 64 per cent of India’s total bulk drug imports. Overall, India had imported such drugs worth USD 2.5 billion last fiscal. “Efforts are being made for revival of (Active Pharmaceutical Ingredient) API industry to lessen dependency on import of key starting materials, intermediates and bulk drugs including from China,” the minister said.

SOURCE: The Financial Express

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LOC strife freezes India-Pak trade

Cotton importers and customs clearing agents claim a huge trade halt between India and Pakistan. The Department of Plant Protection (DPP) has stopped the import of agriculture commodities from India without a warning or written order because of increase in tensions across the LoC. Officials of the department confirm the same. According to them, import of agri items from India through the Wagah border crossing and Karachi port and issuing permits for future imports has been halted. Imran Shami, chief of DPP which is a subordinate department of the national food security and research ministry, however reasons the halt is a move to protect their farmers’ interests. He said that they have stopped import of tomatoes and other fresh vegetables in order to protect their farmers. According to him, they have enough tomato and other vegetables stocks, which they import from India only in case of shortages in the domestic market. He denies Pakistan having stopped cotton imports from India. The halt is a consequence of the reports that the Indian exporters are not meeting our bio-security conditions. The reports are being looked into and restriction will be lifted on cotton imports if their apprehensions are proved wrong. He said only those cotton consignments would be allowed to enter Pakistan through surface or sea routes where importers had already secured permits from his department and carried phyto-sanitary certificates.

A textile factory owner added that their cotton consignments are not being allowed to enter Pakistan through Wagah and Karachi for reasons known to the ministry but cheaper, subsidised Indian yarn is being brought in without any let or hindrance. At least 11 trucks of Indian yarn entered Pakistan on the same day the department stopped cotton consignments from coming to this side of the border. He said the suspension of cotton import from India would create a huge problem for the textile exporters as the truncated domestic crop target of 11.25 million bales for this year appeared difficult if not impossible to meet. The industry requires 14 million bales. They will still be short by three million bales of cotton even if the crop target is achieved. Cotton shortages after the ban on Indian imports would also make domestic prices shoot up at the expense of exports. Alongwith cotton,the ameliorating tensions within both the nations has also affected trade of other agricultural commodities, including vegetables. Pakistan had imported 2.7 million bales of cotton (1 bale is 170 kgs) - about 40 per cent of India's total cotton exports in 2015-16 - due to crop failure that wiped off 0.5 per cent of GDP growth. The industry is expecting to import 2 million bales this year.

SOURCE: Yarns&fibers

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Textile Clothing and Footwear Council (TCF) promotes Make it in Fiji initiative

The Textile Clothing and Footwear Council(TCF) participated in the recent International Sourcing Expo Australia in Melbourne,through its Make it in Fiji initiative. TCF has been taking part in the Expo for the past seven years. But this year, TCF attended the Expo to maintain and strengthen its trade relations with Australia. It has a similar policy for New Zealand. The reason is the stiff competition faced by Fiji’s garment industry from countries like China, Indonesia and Bangladesh, who are producing cheap clothing. President Kaushik Kumar says they were there to promote the garment industry as a whole.According to him , their pricing is definitely high compared to low cost Asian manufacturers. But their biggest advantage is proximity to Australia and New Zealand which are the main markets .Good communication is another factor. Also one of the main selling points is their ability to do small runs and quick delivery. The industry received one hundred thousand dollars through the National Export Strategy marketing grant and Kumar says this has helped them to participate at the Expo. The TCF Industry was joined by the Fiji Consulate General based in Sydney who displayed Fijian-made products at the expo.

SOURCE: Yarns&Fibers

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Trade Development Authority of Pakistan (TDAP) plans to attend 15 trade expos in Africa to boost trade relation

The Pakistani government is focusing on promotional activities to increase the volume of bilateral trade with Africa. According to the sources at the Commerce Division, the Trade Development Authority of Pakistan (TDAP) to enhance trade relations with African countries is planning to attend 15 international exhibitions during the current fiscal year. The 15 international exhibitions that TDAP plans to attend in 2017 would include - 24th edition of Inter-build Africa, Johannesburg, South Africa; Pro Beauty South Africa, Johannesburg, South Africa; Medic East Africa Exhibition & Congress, Nairobi, Kenya; International Exhibition of Textile Equipment, Tunis, Tunisia; Lagos International Trade Fair, Lagos, Nigeria; 19th AfricaCom, Cape Town, South Africa; Medical Expo, Casablanca, Morocco; Morocco Home, Casablanca, Morocco; Food Africa, Cairo, Egypt; 20th Auto Expo, Nairobi, Kenya; Automechanika, Johannesburg, South Africa; Africa Health Expo, Johannesburg, South Africa; SAITEX-2017 and Africa Big 7, Johannesburg, South Africa; Dar-es-Salaam International Trade Fair, Dar-es-Salaam, Tanzania; 34th Luanda International Trade Fair, Luanda, Angola. TDAP had already been participating in Zimbabwe International Trade Fair since 2015.

SOURCE: Yarns&Fibers

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Minimum Wage to Be Increased: Croatia

Trade unions want an increase to 3,800 kuna, while employers accept an increase of up to 5 percent.

At a meeting of representatives of the government, employers and trade unions held at the Ministry of Labour and Pension System, an agreement was reached in principle about the rise in the minimum wage, with the precise amount to be decided later, reports Jutarnji List on November 28, 2016.

The president of the Croatian Association of Trade Unions Ozren Matijašević said after the meeting that the representatives of the Ministry and employers had agreed that the minimum wage should be increased and that Minister Tomislav Ćorić would propose to the government to issue a regulation to increase the minimum wage.

 

Another meeting with representatives of employers in especially vulnerable sectors – construction, textile and wood processing industry – will be held, which should result in compensatory measures which will help employers cover the costs of the increase. After that, a new consultative meeting of social partners will be held, before the final proposal is drafted. Given that tax reform, which will come into effect on 1 January, will not result in an increase of salaries for about 1.5 million people, this is the only option to increase their incomes, said Matijašević.

 

President of the Union of Autonomous Trade Unions of Croatia Mladen Novosel pointed out that the Minister of Labour and Pension System has the right to decide on the amount of the minimum wage, and the trade unions insist it should be fixed at 50 percent of the average salary in Croatia, which would be about 3,800 kuna gross. The current minimum wage is 3,120 kuna. Such a rule would make it easier for employers to plan their costs, and workers and trade unions would not have to issue demands for minimum wage increase every year, said Novosel. He added there was a range of sectors which could give workers higher wages, but they do not want to do it.

 

Bernard Jakelić from the Croatian Employers’ Association said that, taking into account social situation and poverty, negotiations on the adjustment of the minimum wage should start from between 2 and 5 percent, and not 20, 30, or 50 percent. He added that such percentages were wishful thinking, since all salaries have to be earned on the market. Employers also expect to get certain compensatory measures that would somehow compensate for the losses due to market disturbances, he said.

 

Such measures may come in various forms – from favourable loans of the Croatian Bank for Reconstruction and Development to discounts on the energy prices and a number of other ways. “It is necessary to take into account traditional industries which have survived in Croatia – the textile and wood-processing industries – and think about their future and sustainability of their business. We demand a range of compensatory measures and exact calculations in relation to the increase in the minimum wage. I am sure there will be some corrections of minimum wage”, concluded Jakelić.

 

SOURCE: The Total Croatia

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Nylon yarn price sees upward trend in Asia

In China, FDY70D/24F SD prices surged US cents 4-8 a kg in the third week of November while FDY40D were up US cents 5-9 a kg on the week. DTY 70D/24F prices also jumped US cents 5-11 a kg while 30D/10F rose US cents 4-7 a kg on the week. Monofilament 30D prices inched up US cents 5 a kg, while nylon staple fiber 1.5D prices were up US cents 5-13 a kg on the week. Nylon filament yarn prices soared on rising cost of caprolactum and nylon chip and in turn operations were in positive zone. Makers still intended to hike prices. Currently, they maintained stable operation on cautious sentiment. Supply/demand fundamentals were balanced with some procurement seen from the downstream. Warp‐knitting, weaving and AJ covering sector witnessed smooth sales and operated at 80% capacity while, circular‐knitting and lacing mills ran at 60%. However, buyers were still cautious to follow up the surging nylon chip cost.

SOURCE: Yarns&Fibers

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To stop relying on Western hand-me-downs, African countries are importing Chinese textile companies

Every day the workers at C&H Garment Factory are required to learn a few words of Chinese. Today’s lesson, written on a whiteboard at the back of a humming factory floor, is the numbers 8, 9, and 10—written in Kinyarwanda, English, and Mandarin. “We’re a Chinese company so we want to introduce a little Chinese culture to them,” the textile company’s owner, Candy Ma, tells Quartz. Like many workers in China, the staff are required to do group exercises before beginning their day. Signs with the words “diligence,” “quality,” and “responsibility,” written in English and Chinese, hang from the rafters. Chinese and Rwandan flags fly outside the glass-paneled building that houses C&H, which began operations last year in the Kigali Special Economic Zone on the outskirts of the capital. Ma’s factory is the culmination of recent government efforts to establish a Rwandan textile industry and expand the country’s almost nonexistent manufacturing sector. For Rwanda, it’s also about moving on from being another third-world African country dressed in hand-me-downs donated from Western countries. Ma has partnered with the Rwandan government to train locals in garment manufacturing, making clothing to sell locally as well as to export. One of the project’s goals, according to Rwanda’s minister of trade, is to stop relying on second-hand clothing and save the “struggling dignity” of the Rwandan people. “It’s about being capable and self reliant. We want to be independent… wearing clothing that was owned by another person, is this dignity? Can this make you proud?” Gerald Mukubu, head of Rwanda’s Private Sector Federation, which is part of the textile initiative, tells Quartz.

Second-hand clothing in Rwanda, better known as chagua, or “to select” in Kiswahili, another language spoken in Rwanda, is sold in open air markets, shops, and by hawkers along the streets. Elsewhere, these clothes are known as “mitumba,” or “bundle,” referring to the plastic packages of donated clothing from wealthier countries that arrive in the region. More than 70% of clothes donated globally end up in Africa, according to the nonprofit Oxfam. Rwandans spend more than $100 million a year importing clothing, both second hand and new. It’s not only worn by the country’s poorest; most middle class Rwandans wear a mix of new and recycled clothes. Mukubu says that while he doesn’t wear much second-hand clothing, many of his colleagues and friends do. Tharcisse Baranyeretse, a translator in Kigali, commented to Quartz that his entire outfit—a crisp button-up shirt, slacks, with a matching leather belt, and gleaming shoes—is all chagua. “Everyone wears it,” he says.

The East African Community (EAC), which includes Rwanda, Kenya, Uganda, Tanzania, and Burundi, as a whole has proposed a ban on second hand clothing by 2019. They hope the ban will help domestic textile manufacturers. Officials also claim that second-hand clothing is unsanitary and can lead to diseases. (There is little research that says second-hand clothing, if cleaned and stored properly, is unhygienic). The campaign isn’t restricted to East Africa. South Africa has had a ban in place for decades. Ghana barred the sale of second-hand underwear in 2011. Malawi, and Zimbabwe have also been considering bans. Used clothing imports are also outlawed in the Philippines and India. This is where industrialists like Ma come in. An energetic petite woman from Xi’an in central China, Ma moved to Rwanda two years ago upon invitation from Mukubu’s Private Sector Federation. Before that she had set up shop in Ethiopia, one of the first African countries to become a base for Chinese textile manufacturing, where she first heard Rwanda was looking for investment. She also ran a mobile phone factory in Kenya. Ma says she was attracted to the Rwandan government’s business friendly approach—taxes are low, she’s only required to pay income tax—the cleanliness of the capital city Kigali, and the people she encountered on a scoping mission. America’s recent renewal of the African Growth and Opportunity Act (AGOA), which gives African textile producers duty-free access to US markets for 15 years, has been another incentive. “I have a lot of experience doing business in Africa and thought, ‘This could work,'” she says.

So far, C&H’s workforce of 800, which includes trainees and already trained workers, are making police uniforms, safety vests, and most recently military kit for the Rwandan security forces. C&H’s main product, uniforms, are mostly exported to Europe and the United States. They are branching out into underwear, which Ma plans to sell locally. Ma’s remit is to help build a foundation for the industry. Technicians from Kenya, once home to a thriving textile scene, have been brought in to help teach the group how to sew, cut material, and inspect the production line. Ma is also holding a management course. A professional group, the Rwanda Association of Tailors has been set up to help promote the sector.

“It won’t benefit us at all” It’s Kigali’s hope that more operations like Ma’s will come and eventually replace the need for the second-hand clothing market. But getting rid of chagua won’t be easy. In the Biryogo Market, in the Muslim quarter of Kigali, there are hundreds of stalls with children’s clothes, nightgowns, and lingerie strewn across cheap wooden tables. The clothes here are from Canada, the Netherlands, the United States, and Europe. Stall owners estimate there are as many as 1,000 chagua sellers here. “The way you can judge the quality is by the look and feel,” says a woman seated on a stool next to a stack of clothing still folded and packed in a plastic bag. She rifles through a pile and pulls out a striped polo, made with a thick heavy cotton, as demonstration. “Those clothes they want to sell us from the factories are made in China. They’re very fake and people don’t trust them,” she says, declining to give her name for fear of punishment from authorities.

Like many of the sellers here, she has been in this business for a long time—30 years of supporting five children through sales of chagua. When asked what she thinks of the government’s concern for the dignity of its people and hygiene issues of recycled clothing, she accuses the government of conspiracy. “The government is lying, lying, lying. There’s something else behind it,” she says. She has heard about the proposed ban on television. “It won’t benefit us at all,” she says. “Those clothes they want to sell us from the factories are made in China. They’re very fake, people don’t trust them.”

For many, used clothing is all they can afford. For others, shopping chagua is a way to curate their wardrobe and ensure they aren’t caught wearing the same thing as anyone else. At a recycled clothing shop in central Kigali, a smaller selection of clothes are on display, carefully hung in rows or folded into neat piles on a set of shelves. A young man in a denim shirt studded with rhinestones and paneled jeans scoffs at the idea of buying only new clothes. “The new clothes are like uniforms. It looks bad, like we are a sports team or a group of church singers.”

Critics say banning second hand clothing won’t necessarily boost local industry. Others say that used clothes will likely be smuggled in, as plastic bags have been since the Rwanda declared them contraband. Marc Vooges, director of Sympany, a Dutch charity that recycles used clothing, says the ban also limits citizens’ rights to make their own decisions. “You disrespect the choice of your citizens who are choosing those second hand clothes instead of new clothes which are available for them. There must be a reason for that. Respect that reason,” he says.

“Made in Africa, with China”

Other African countries have already attracted Chinese textile makers. Chinese shoe assembly operations in Ethiopia have inspired more industry around it like leather processing, recycling old plastic bags into plastic goods, as well as more shoe factories from other countries. Huajian, one of China’s largest shoe producers, is expanding in Ethiopia and in East Africa. Shoes and clothing may be just the beginning. As labor costs in China have risen over the last decade, prompting Chinese factories to seek cheaper locations or move into higher-end manufacturing, African officials have hoped some of that manufacturing might relocate to Africa. Lately, Chinese officials have been dangling that prospect even more.

At a high level China-Africa summit, the Forum on China-Africa Cooperation, in Johannesburg late last year, China’s ambassador to South Africa Tian Xuejun told a press briefing, “We want to change the narrative from ‘made in China’ to ‘made in Africa, with China.'” In one of conference sessions titled, “Catapulting the African industrialization renaissance,” Chinese officials pledged to help the continent reach its goal of seeing manufacturing account for more than 50% of GDP by 2063.

For now, industry accounts for just 10% of the Africa’s overall GDP, the same rate as it was in 1990, according to John Page, a Brookings Institution fellow and former chief Africa economist for the World Bank. As China moves out of low-end manufacturing, there may now be a chance for Africa to gain some of that business. “There is a window of opportunity,” Page says. Chinese investment in African manufacturing has already grown, and examples of Chinese factories producing in Africa are becoming more common. In Kigali’s special economic zone, another Chinese company, Beijing Paper, produces sanitary napkins under the brand “Every Time,” sold in stores locally. A nearby Chinese company makes wooden doors. Ma is considering reopening the mobile phone factory she attempted in Kenya five years ago. China FAW Group, one of China’s biggest auto makers, now has an assembly plant in South Africa.

In some cases, Chinese investment in African textile industries has actually hurt local producers. In Ghana, Chinese manufacturers are outcompeting artisans and putting them out of business. This past year, Nigerians have been protesting Chinese who are manufacturing their traditional fabrics and selling them at cheaper prices. Some initiatives to inspire manufacturing have been underwhelming. At the workshop of the “China Rwanda Bamboo Project” in Kigali—a Chinese initiative to train local workers in bamboo manufacturing—three young men and a woman nap on a piece of foam meant to be used for furniture. The room is littered with unfinished bamboo screens, baskets, and lanterns. The power is out so the staff have stopped early.

 “They don’t work. You teach them one thing, they learn it, and the next day they come back and they’ve forgotten,” says Huang Daizhong from China’s Zhejiang province, who has been leading this project for the past six years. The results have been meager. So far, just two factories are making use of the bamboo processing techniques he has taught them—both are making toothpicks. In Huang’s home province of Zhejiang in eastern China, mass production of bamboo handcrafts was the first step in establishing a textile industry and training a largely rural population with few technical skills. (Textile producers now account for 10% of that province’s gross industrial output.) Huang had hoped the same principle would work in Rwanda, but has been disappointed. “Rwanda hasn’t reached this point of being able to manufacture yet. It will still take many years,” he says.

For a country’s civilization

Rwanda isn’t the easiest place to start a garment industry. Transportation to the land-locked country is expensive—it costs more to send a container from Kigali to Kenya’s port city of Mombasa, where all of C&H products depart from, than to send goods from Mombasa to Guangzhou in southern China. Ma has to import all of her materials, including the cloth, string, and the zippers.  “In China during the 1980s there were also a lot of people wearing, second-hand clothing. Now, not a single person does.” Still, Ma, who has been working in textiles in developing countries for more than 16 years, believes she is uniquely equipped to meet the challenge. Unlike Huang and other Chinese managers who grow frustrated with their local staff, she says she tries to understand her employees and how they work best. “You just have to know them,” she says. The company is not yet profitable, but she expects this year to be better. Ma anticipates more Chinese production moving to Africa as Southeast Asia becomes saturated with Chinese factories searching for cheaper locations. She will still have been the first in Rwanda. And perhaps most importantly, she relates with the government’s campaign to wean the country from chagua.”In China during the 1980s there were also a lot of people wearing old, second-hand clothing. Now, not a single person is wearing recycled clothing. I think that for a country’s civilization to progress you do need to stop that.”

SOURCE: The Quartz Africa

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Seeing Opportunity in Textile Imports, Kenya Plans Cotton Revival

Kenya plans to revive its cotton industry, a major foreign-exchange earner until the 1980s, amid strong demand for lint from domestic mills and the potential to supply manufacturers exporting clothing and textiles to the U.S. under a preferential trade deal. The government is planning training and credit facilities for farmers as part of a bid to restore production that peaked at 38,000 metric tons of seed cotton in 1984-85. Kenya currently produces 15,700 tons of seed cotton, creating about 5,240 tons of lint. Demand for the latter is about 37,000 tons, with the shortfall imported from neighboring countries, according to Fanuel Lubanga, a development manager at the state-run Agriculture and Food Authority. The initiative comes as manufacturers in East Africa’s biggest economy are counting on apparel exports to the U.S. growing 5% this year after the U.S. extended its African Growth and Opportunity Act, or AGOA, by a decade. “The potential that we have for our cotton through the AGOA exports is a strong motivation to grow the industry,” Lubanga said in an interview in the capital, Nairobi. He said national output is expected to double during the 2017 harvest because farmers are now using seeds bought from Israel instead of recycling seeds, previously a common practice. East Africa could potentially export garments valued at as much as $3 billion annually by 2025, according to a 2015 McKinsey report. Affordable electricity and cheap labor--with monthly salaries as low as $60--make producers such as Kenya and Ethiopia attractive to investors, the study shows.

Export Zones

Kenya exported clothing valued at $380 million in 2015, with companies including Puma SE, Wal-Mart Stores Inc., JC Penny Co. and Hennes & Mauritz AB among those who source garments from Kenyan Export Processing Zones, which employ more than 66,000 people. While EPZ manufacturers currently use no domestically grown cotton, instead importing Asian fabrics, the Industry Ministry is working on ways for Kenyan farmers to secure contracts to sell to them, Lubanga said. The six-member East African Community, which includes Kenya, is working to revamp the domestic garment market by banning secondhand clothes imports at the end of 2018, the Kenya Association of Manufacturers said in April. Rwanda has already banned imports of leather, secondhand clothes and shoes, the governor of that country’s central bank said earlier in November. Kenya imported used clothing worth $243 million and weighing more than 100,000 tons in 2013, according to data by the United Nations agency Comtrade.

Kenya’s textile industry declined in the 1980s after market liberalization policies demanded by multilateral lenders exposed the market to secondhand imports. The country now has six cotton mills compared to 52 in 1991, while there are four ginneries, compared with 24 that year. “Turkish investors have shown interest to grow cotton on a large scale in Siaya,” Lubanga said, referring to a county in southwestern Kenya, without giving more information. U.S. grown cotton, which closed trade at 73.08 cents per pound on the ICE Futures U.S. on Nov. 23, has gained 13% this year. Demand for lint “is still high, both locally and internationally,” Lubanga said. “The prices have been high in the past few years, which we hope will remain at similar levels.”

SOURCE: The Industry Week

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Taiwan explores business in South Asian markets with Buyer-Seller Meet 2016

Ms. Arti Bhagat, Director, Worldex India Exhibition & Promotion Pvt. Ltd. said “The organized textile sector has welcomed the decision of demonetization as it would streamline the transaction system which will result in transparent business transaction with overseas traders. The demonetization will affect Indian textile industry in India in terms of purchase of new yarns and fabric from cash payment and is also expected to reduce textile related export orders for a short duration. High end fashion retail and luxury demand will also fall as discretionary demand in this segment will be curtailed. Taking the above into consideration, business relationship between Taiwan and India is not expected to see contrary effects in the medium to long term.”

Indian apparel and textile manufacturing has reached new heights in the last few years and Indian exports are welcomed all over the world for their quality and value added features. To fuel this growth as well as to give Indian manufacturers and exporters an edge, the successful Taiwan Textile Fairs in South Asia – Buyer Seller Meet commenced in Mumbai where 12 renowned Taiwanese textile companies showcased a range of innovative, trendy and high performance textile products with an aim to establish long-term business associations and tie-ups in the field of textiles.

Organised by the Taiwan Textile Federation (TTF) and the Bureau of Foreign Trade and represented by Worldex India Exhibition & Promotion Pvt. Ltd., Taiwan Textile Fairs showcased Taiwan’s innovative and value-added yarns, fabrics, trimmings and clothing accessories were displayed to apparel exporters, fashion brands and labels, retailers, importers, distributors based in Mumbai.

“India is a very dynamic market with a lot of potential and scope for Taiwanese companies. Our focus is to tap new business opportunities in India, Bangladesh, and Sri Lanka where there is huge demand for innovative knit and woven textile products (performance & functional) like synthetic, fancy, functional, recycled, and eco-friendly, as well as garment accessories”, said Mr. Sean Tsai, Overseas Market Development, Taiwan Textile Federation. “For over 10 years, the Taiwan Textile Federation (TTF) have been organising this buyer-seller meet in India and have been quite successful in connecting and supplying our innovative and trendy textiles to the leading fashion garment exporters’ as well domestic brands in India. We aim to export around $500 million worth of functional textiles in the next five years to India. Currently, the bilateral trade between India and Taiwan has grown from $1.19 billion in 2001 to $6 billion in 2014” he further added.

Taiwan textiles are world renowned for their innovative and high quality textile products and are sourced by leading global brands for sports and active wear, outdoor wear, functional wear, formal wear, suiting and shirting by leading global brands such as such as DKNY, S. Oliver, C&A, Victoria’s Secret, GAP, Nike, Adidas, Calvin Klein, H&M, Marks &Spencer, TESCOUK, Tommy Hilfiger etc.

The textile produced by Taiwanese companies adds value to the brand image with such unique properties like coolmax, heat transfer, water resistant, breathable, fire-proof, etc with its advanced R&D and nano technology.Some of the leading exporters and brands in India that are already sourcing from Taiwan include Shahi Exports, Gokaldas Images, Madura Garments, Wildcraft, Moxi Sports, and Proline India.

SOURCE: Yarns&fibers

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Moving back to British manufacturing

Challenges and opportunities in what was acknowledged as “the continuing move back to British manufacturing”, were formulated as the theme Back in Britain by Rory Wilson, Chairman, at The Weaving Group conference. Held every two years, it is an international affair with expert speakers and weaver delegates from all over the UK. This year held in Huddersfield, 200 delegates and textile professionals gathered from Britain and Europe, a big increase. Highlighting UK success stories, the interface between industry, academia and customers was underlined, with manufacturers urging weavers to collaborate, advising more talking and exchanging information. The Weaving Group conference was held in Huddersfield, hosting 200 delegates and textile professionals. 

Mark Drysdale, of Heathcoat Textile Solutions, brought to the fore 200 years of manufacturing in Tiverton Devon, emphasising local expertise and great emphasis on innovation, a reputation for technical textiles developed for extreme performance, for automotive industries and geotextiles, as well as fabrics like net and tulle. Attitudes to production and development need to be intimately worked out with customers. Rhys Herbert, of Lloyds Bank, discussed how growth could be either rebalanced or slowed in the economic outlook by attitudes to Brexit. Donato Langone, of Albini Energia, spoke of engineering solutions in energy optimisation. The highly successful Albini Group offers advice to other textile companies through energy audits and system solutions to provide efficiency. Machinery specialists included Fritz Legler, of Swiss firm Staubli, stressing advances in step by step automation. He highlighted the importance of relationships between human and machine automation. Automatic drawing systems use new digitised manufacture with higher data volumes. Newest developments in woolen and worsted weaving with Active warp control include automatic detecting of the right colour systems and yarns.

Dominique Baldeck, of Itema, presented developments in air-jet weaving innovation, rapier air-jet and projectile. New heavy duty weaving features double rapier technology, a modular system with double weft insertion, and complete systems. A significant percentage of mechanical and electronic parts are fully interchangeable with their rapier models, reducing spare part costs. User friendliness was stressed. New avenues were fabrics for agriculture in overseas markets: “using fast developing techniques; fibreglass, PVC coated yarns for mosquito nets, filter fabrics, insect-proof materials for agriculture”. Airbag systems are woven in one piece with scimitar rapier machines. Bonas’ Bob Harding spoke on the holistic approach to textile management. Based principally in Belgium, the company is privately owned and riding high: “We have never made so many machines,” said Mr Harding. Bonas produces weft insertion systems, and carpet weaving machines from Axminsters, to prayer mats, to trainers and Geotex aviation products; automotive woven structures are being developed to replace metals. Mr Harding sees exciting possibilities in flat weaving, advocates waste reduction and digitisation of weaving, including jacquard for cost control.

Michael Schaaf, of Karl Mayer, called recent years “the best”, as specialists in warp beams for the weaving industry identified increasing acknowledgement of a shortage of people worldwide willing to work in textiles, including formerly cheaper labour countries, and high production for shorter lengths. “It’s obvious that automation is essential,” explained Mr Schaaf. The company’s universal yarn tensioner Prosize that was unveiled at ITMA, is experiencing high demand in the UK. The yarn is fully guided and gets rid of fluff etc.

Manchester University’s scientist Dr Xiaogang Chen develops textile composites for 3D manufacturing. 3D for the reinforcement of composites, a polymer matrix and multiple phase material using new materials – nano particles of graphene and matrix are very light, enabling engineering properties. Textile companies working with aerospace and military are able to solve a number of problems, for example, they can now drape fabrics into one piece for composite for helmets. According to Mr Chen, ‘‘partnership with universities is something we can do as an industry.” John Standish and Richard Humphries, The Worshipful Company of Weavers, introduced the involvement of the Livery company in reducing reoffending among underprivileged youngsters. Also with a Making it in Textiles conference and a tour in Bradford, they are introducing top UK-wide textile students to real experience of British factories. They stressed the importance of involving the weaving industry in providing placements for the scheme, bringing in young talent to manufacture.

Richard Hamshire, founder of McNair Shirts, shared his success story combining wool and British manufacture, creating markets for a quality, natural fabric. Richard’s high-fashion experience recognised wool as “‘an unsung technical fabric which should be developed for outdoor fashionable wear – the unplastic mountain jacket”. The ultra-cool ranges sell internationally in prestige outlets. Shaun Daniel, of Alpaca Comfort, the premier British-made alpaca duvets manufacturer, stressed quality. The brand produces Gots-certified cotton covers, handmade, filled with British-raised alpaca wool, hypoallergenic, etc, made with handstitching, maximizing individual approaches and successfully targeting contemporary concerns and local production. Andy Ogden presented English Fine Cotton, first new cotton spinning plant for generations, housed in the historic buildings of Tower Mill in Greater Manchester. Almost £6million were invested to produce premium yarns for exclusive UK companies, raw materials are imported from Barbados, India, Egypt, and the USA. The UK company Culimeta-Saveguard has ordered Zinser machinery to equip the factory.

Simon Spinks, of Harrison Spinks, making luxury beds and components since 1840, recounted how innovation can transform a traditional product. They purchased a farm for raw materials, reducing chemicals, growing hemp for mattresses, timber for construction, expanding uses of the farm for marketing and as a wedding venue; citing “emotional innovation”. Their motto is “our beds don’t start life in a factory but on a 300-acre farm in Yorkshire”. Trouser Town, as Hebden Bridge used to be called, was responsible for making 1 million pairs of trouser a year, and now has trouser manufacture brought back to the town by Ed Oxley and Brant Richards, with a new factory and brand, Hebtro. A traditional quality product with contemporary appeal is marketed in a groundbreaking way, using pop up shops, social media, and the power of facebook-type marketing – the heritage story with a new twist. Kate Hills, founder and CEO of Make it British, rounded off the conference, which showed that there is a remarkable tide of optimism about local British manufacture at a high level. She founded Make it British in 2011, tapping into an international movement for localising manufacture, and has almost single handedly galvanised a British movement.

SOURCE: The Innovation in Textiles

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China to host Polyamide & Intermediates Forum in Dec

The 14th edition of the China International Polyamide & Intermediates Forum slated to take place on Dec 1 - 2, 2016 in Shanghai, is being organised to discuss issues concerning the nylon chain. Participants from multiple countries are expected to gather to analyse the effect of economic backdrop as well as the market trends on nylon at the forum. Industry experts will discuss the bulk stock commodity market of China, innovations and transformation of Nylon-6 products and decrease in the demand for engineering nylon plastics and films this year among other things. The forum will also give companies a chance to forge new business relations. The conference is being organised by China Chemical & Fiber Economic Information Network (CCFEI) and Tecnon OrbiChem, and is supported by Nylon Committee of China Chemical Fibers Association and China National Chemical Fiber Corp.

Topics including Strategies to Facilitate R&D and Application of New Nylon Products, Changes of Caprolactam Fundamental, Changing Market in China, Perspective of High-end Nylon Market, Overcapacity Builds Along the Supply Chain, Polyester Amide — Fiber of New Type, Facing the Future of Polyamide 6 Technology with Plant and Product Versatility and Developments in Polyamide Tyrecord Industry will be covered at the 2-day conference.

Speakers at the forum include Deng Jun, secretary general of nylon committee at China Chemical Fibers Association; Huang Wei, fibre raw material department at Sinopec Chemical Commercial Holding; Song Manjun, marketing & logistics director at Fujian Shenyuan New Material; Lin Jun, chief editor at CCFEI; Qu Zhenlin, director of sales at UBE Shanghai and Jiang Zhenhua, product manager at CCFEI among others.

SOURCE: Fibre2fashion

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Karl Mayer opens modern showrooms for textile machines

Karl Mayer Technische Textilien GmbH from Germany, world's leading supplier of warp knitting machines, warp preparation machines, and systems for producing technical textiles, has opened two new modern showrooms equipped with high-tech machines in Chemnitz and Naila, for promoting innovation and business development among its customers to suit their needs. Textiles for technical applications are usually customised to suit the requirements of their intended application right from the production stage, and innovative technical solutions and specific know-how are needed to produce them. The showroom in Chemnitz will be ready as of September 2016 and the Naila showroom will be ready by the end of the year. €5 million were invested in setting up the machine technology. The showroom in Chemnitz is sending out an invitation to come and try out various weft-insertion warp knitting machines and a biaxial warp knitting machine, and to see them being demonstrated. Naila is the first point of contact for multiaxial warp knitting machines.

The high-speed raschel machine, WEFTTRONIC II RS, with weft insertion facility, and ideal for producing coating carriers and advertising substrates having a high tear resistance, will be displayed at the showroom. A WEFTTRONIC II RS 2, 268", gauge E 18, and two WEFTTRONIC II RS 3, gauge E 18, with a working width of 268" and 184", will be housed in the showroom. The high-speed warp knitting machine, BIAXTRONIC CO, processes continuous filament yarns made from glass fibres to produce biaxial textiles and composite structures. The showroom will showcase a BIAXTRONIC CO, 101", and gauge E 7.The showroom will house an FSA 600 Plus fibre spreading unit. The machine preferably processes carbon fibres with up to 50,000 individual filaments per 7 µm diameter. Multiaxial warp knitting machines produce multiaxial textiles for applications where a high strength and rigidity for a low weight are required in the composites sector. A COP MAX 4, 101", gauge E 5, and a COP MAX 5, 50", gauge E 5, will be available for carrying out customer trials and performance demonstrations at the showroom.

SOURCE: Fibre2fashion

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