INTERNATIONAL
The Union Cabinet on Wednesday approved a set of reforms, including simplified labour laws and technology upgradation for the made-ups sector. “The interventions are expected to boost employment in the textiles sector and create jobs for up to 11 lakh persons, lead to increase in exports and enhance benefits to the workers in the textiles and apparel sector,” said an official release. Made-ups, which includes products like towels and bedsheets, is the second largest employer in the textiles sector after apparel. The government will provide production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for made-ups similar to what is provided to garments based on additional production and employment after three years.
On labour laws front, the government increased the permissible overtime up to 100 hours per quarter in made-ups manufacturing sector besides making employees’ contribution to EPF optional for employees earning less than Rs 15,000 per month. These incentives are part of the Rs 6,006-crore package announced for the apparel sector in June . “The textiles industry welcomes the government’s initiative to support the made-ups sector. This will help India in...creating huge employment, earning foreign exchange and creating traction for the fabrics and yarn sectors.
Since the maximum sourcing for made-up sector is from the domestic industry, it will also help in Make in India plan,” said Binoy Job, secretary general, Confederation of Indian Textile Industry(CITI). The government will give additional 3.67% share of employer’s contribution in addition to 8.33% covered under Pradhan Mantri Rozgar Protsahan Yojana for all new employees enrolling in EPFO for the first three years of employment as a special incentive to made-ups sector.
SOURCE: The Economic Times
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has stated that the textile production has gone down by almost 65 per cent, where as only 33 per cent of the small and medium diamonds units have reopened after Diwali vacation due to demonetization. In strong representation to RBI Governor Urjit Patel, SGCCI has urged to make sufficient allocation of cash to the cooperative banks to cater to the customers, especially those from the medium and small scale units. In a letter to RBI Governor, Urjit Patel, SGCCI stated that the MSME sector including textile, embroidery diamonds and other ancillary units have been badly hit due to the unavailability of cash with the cooperative banks. Around 95 per cent of the accounts of the MSME units are with the cooperative banks and that the wages of lakhs of workers employed in the sectors have been stalled.
SGCCI stated that the production in the country's largest man-made fabric (MMF) sector has gone down by almost 65 per cent and that all the units in weaving, embroidery, textile processing etc. work at almost 30 per cent of their installed capacity. On the other hand, Surat has the country's largest polyester wholesale market with over 165 textile markets housing more than 65,000 trading shops. At present, the wholesale traders are not receiving any new orders from the key markets across the country, resulting in the closure of the entire industrial chain. The diamond industry, on the other hand, is also affected by almost 25 per cent. While the big exporters and diamond companies are exporting diamonds, the small and medium units are passing through tough phase due to the unavailability of cash on hand. Around 33 per cent of the small and medium units have reopened after December 5. President of SGCCI, BS Agarwal said, "Surat is the economic capital of Gujarat and boasts of two big industries namely diamonds and textile. Both the sectors are affected due to the unavailability of cash in the cooperative banks. We have strongly represented the RBI Governor to infuse the flow of cash in the banks to tide over the crisis; otherwise there will be a big problem in the coming days"
SOURCE: The Times of India
The ‘Make in Gujarat – Textiles’ seminar will be held on the third day of the Vibrant Gujarat global summit that will take place in Gandhinagar from January 10 – 13, 2017. The 4-day Vibrant Gujarat event will focus on ‘sustainable economic and social development’ and is expected to be attended by over 2 million people from around the world. The textile sector is one of the most important sectors for Gujarat as it is one of the largest producers of cotton. The state produced close to 93 lakh bales, which amounted to about 33 per cent of the total cotton production of India, in 2012-13. About 50 per cent of India’s total art silk fabric is produced in Surat and the state is the largest producer of denim with a share of 65 per cent.
Gujarat also boasts over 600 medium and large textile processing houses and contributes to over one-fourth of India’s technical textile output. Additionally, it is the largest producer of man-made and filament fabric in India and the second largest decentralised power loom concentrating state with 50,000 looms (cotton)/8 lakh filament. Gujarat is also a leader in the textile sector with robust infrastructure and a strong textile policy. The state has about 1,500 medium and large textile units featuring 18 textile related product clusters. Its textile market is expected to grow to $25 billion in 2017.
The Vibrant Gujarat event is being organised by the government of Gujarat and its organisation Industrial Extension Bureau. Federation of Indian Chambers of Commerce & Industry (FICCI) and Confederation of Indian Industry (CII) are the national partners for the summit. The global summit will provide the visitors an opportunity to interact with key policy makers, industry leaders, global thought leaders, regulators and renowned academicians from all over the world. Besides giving the stakeholders of various sectors a chance to witness coherent deliberations between sector experts and global luminaries in an array of knowledge seminars, the summit will offer a platform to SMEs to connect globally with potential partners to explore opportunities of collaboration and partnership. Networking forums like B2B and B2G meetings will help stakeholders interact with each other and exclusive demo sessions showcasing the latest trends and technology, products and services across sectors will also be held at the summit. Gujarat is also the state partner of the ongoing India International Textile Machinery Exhibition (ITME), a prestigious textile technology and engineering business event, currently underway in Mumbai.
SOURCE: Fibre2fashion
Ujwal Lahoti, the new Cotton Textile Export Promotion Council (Texprocil) chairman has requested exporters to adopt Unified Payments Interface (UPI) as a step towards cashless mode of payment and maintaining transparency in transactions. UPI is an open and inclusive digital payment platform developed by the National Payment Corporation of India (NPCI). Lahoti, who is the executive chairman of Lahoti Overseas, took charge as the chairman of Texprocil with effect from November 21 after the completion of the tenure of RK Dalmia, senior president of Century Textiles & Industries. “We have also requested the government to take measures like increasing the working capital limits by 50 per cent, increase the moratorium period from 2 months to one year for repayment of loans and increase cash withdrawal limits for SME units based on their withdrawal record,” said Lahoti in a statement.
We need to focus on intensifying business in the new and emerging markets of Africa, South America and Middle East, he said. In order to sustain economic activity and employment, we have requested the Centre to encourage exports and have also urged them to extend the benefit of 3 per cent Interest Equalisation Scheme to cotton yarn and merchant exporters. Further, request has also been made for urgent policy support such as increase in the entitlement under Merchandise Exports from India Scheme for export of yarn, fabrics and made ups to EU. Commenting on the election of Republican Donald Trump as the new US president, Lahoti said, “Considering the election rhetoric and campaign promises especially relating to trade agreements like NAFTA and the Trans-Pacific Partnership (TPP), we can expect some changes in trading patterns.”
SOURCE: Fibre2fashion
Indian textiles is spreading its roots in the global market not only with the famous Indian fabrics like pure cotton, tussar silk and khadi (hand-spun and hand-woven cloth), but also the Indian wool and weaving techniques, which is in the limelight from cashmere pashmina wool, mohair wool to the angora wool. Indian focus have been well known and admired across the world for their beauty, texture and craftsmanship. In a recent development, the Woolmark Company, based in Australia and India, hosted a fashion event at The Grand Hotel, Vasant Kunj in New Delhi, titled ‘Grown In Australia, Made In India’ to discuss the potential of merino wool in India, especially when blended with other fibres like bamboo, cashmere and polyester.
Designers like Suket Dhir, Nachiket Barve, Ritu Kumar, Janne Einola – CEO and country head of H&M India – and Ram Bhatnagar – Vice President of Raymond Textiles, graced the occasion with their presence and raised a potential possibility of using the trans-seasonal fabric even in summer. The company has started its journey for this concept with the Bhutti Weavers of Himachal who in India with the merino wool grown in Australia. Artisans of Bhuttico knit woollen scarves, stoles, dresses, jackets, ties and socks, along with other accessories, to showcase the heritage of handloom weaving in India to the world. Union Textiles Minister, Smriti Irani said that the farm-to-fashion journey truly highlights how merino wool can beautifully be transformed into fashion pieces in India. They encourage the use of wool as a natural fibre as they aim to promote the Indian wool industry.
As wool consumption is expected to increase to 260 million kilogram by 2019-20, it is yet to see if the Indian wool industry witness a further boost. India is the seventh largest wool producer in the world and has a huge wool production capacity with sufficient raw material, manufacturing capacity, a large pool of skilled and cheap work force, big export potential, large domestic market and very low import content, because of which the US, Europe, Middle East, Latin America, South East Asia and East Asia are key export markets for Indian wool and its blended products.
SOURCE: Yarns&Fibers
Units in special economic zones (SEZs) looking for import duty exemption in the forthcoming Budget for selling their products in the domestic market may be in for disappointment. The Commerce Ministry, which had proposed that SEZs be allowed to sell their items locally by paying concessional import duties which is hitherto allowed to India’s free trade partner countries, has almost given up its claim as the Finance Ministry has ruled that it could lead to heavy revenue leakages, an official said. “We do not expect duty exemption for domestic sale of SEZ goods to be announced in the Budget as the Finance Ministry is not in favour of it,” he added.
According to the Finance Ministry, if SEZ units are allowed to sell items in the domestic market at zero or low import duties offered to FTA partners, third country items could come in without duties being paid. “It is feared that SEZ units could import items from countries with which we don’t have FTAs at zero import duties (as SEZs are exempted from paying duties on imported items) and then re-sell it in the domestic market at much lower duty rates (which could also be zero). It would defeat the purpose of encouraging SEZ production and also cause revenue leakage,” the official said.
The Commerce Ministry had earlier suggested that the government should come up with a mechanism that would specify conditions including rules of origin with minimum value addition requirement to establish and certify that an item is actually produced in a SEZ unit and not imported from another country before it is allowed to be sold in the local market at concessional import duties. However, the Finance Ministry did not find the mechanism convincing as it argued that it would be difficult to monitor if the rules of origin were being respected. SEZ units were keen that they should be allowed to sell in the domestic market at concessional import duties to compete with FTA partner countries and make their operations more lucrative. With investments into the SEZs drying up following the imposition of minimum alternate tax (MAT) and Dividend Distribution Tax (DDT) in 2011, the Commerce Ministry has been looking at ways to make the zones more attractive to investors. A total of 204 SEZs are operational in the country and 408 SEZs have been formally approved. Total investment in SEZs is over $50 billion and the zones are providing direct employment to over 1.5 million persons, according to government figures.
SOURCE: The Hindu Business Line
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post facto approval to the MoU between India and United Kingdom (UK) to support Ease of Doing Business in India. The MoU was signed earlier this month. The MoU shall enable exchange of officials from both the Governments to facilitate sharing of best practises, offering technical assistance and enhanced implementation of reforms. The collaboration shall also cover State Governments in its ambit. The UK government has shown interest to offer expertise in the following areas:
Currently, India is ranked 130th out of 190 economies (as per Doing Business Report, 2017). The UK Government has achieved phenomenal improvement in Ease of Doing Business (EoDB) rankings in recent years. The beneficiaries include the officials from Central Government Ministries / Departments and State Governments through sharing of best practises, capacity building etc. Each side shall bear the cost of travel and logistics for its officials as well as for co-hosting trainings/ seminar/conferences. The MoU shall facilitate various agencies of the UK government to offer professional courses on better regulation drafting for officials, capacity-building of frontline inspectors, sharing of best practises, etc. The collaboration is expected to expedite adoption of innovative practises by the Government of India, State Governments and their agencies leading to easing of regulatory environment in the country and fostering of conducive business climate in India.
SOURCE: PIB
Most bankers, it seems, are not aware that discretion is the better part of valour. Which is why we have a non-performing assets-induced mess that is holding back economic recovery. Which is also why some bankers aver that economists talk nonsense. Many years ago, Irving Fisher formulated the quantity theory of money, the fount of monetarism. The simple identity of exchange was that the value of transactions that a given stock of money could support would depend on the velocity of money, viz the number of times money changes hands in the process of completing transactions. What this means is that if the price level and the velocity are stable, there is a direct proportional relationship between the stock of money and the volume of transactions it can support. Now comes the rocket science part: If the stock of money contracts, so will the volume of transactions. And, heaven (or the government) forbid, if the velocity of money falls (likely when 86 per cent of cash is demonetised), then the decline in the volume of transactions would be even sharper.
Now, all economists and management-types (hopefully, including bankers) have encountered Fisher's theory at some point. The critical point to note is that it is an identity. That is, it is always true; it is not some esoteric equation cooked up by economists. Now what does this have to do with demonetisation? Everything. Reducing the stock of money will result in a reduction in the value and volume of transactions. What sort of transactions? Employers paying wages in cash, consumers buying household staples, producers paying cash for parts required for production, farmers selling produce in the wholesale market, daily purchases of fruits and veggies, sales at a paanwallah’s, paying school fees, hospital admission charges… the list could go on, but you get the idea. Demonetisation and the limited supply of lower denomination notes imply that most of these transactions will not go through, that is, these remain contracts/trades that simply cannot be concluded.
The consequences: Some industries come to a grinding halt (cycles in Ludhiana and textiles in Tiruppur, Indian Express), reverse migration of daily wage labour (Indian Express and this newspaper), farmers unable to harvest the kharif and in difficulty about planting for rabi (this newspaper, The Mint, The Telegraph), shutdown of roadside vendors (look around yourself), the road transport industry facing major problems, huge negative impact on the “informal” sector (all daily and business newspapers). Conclusion: The reduction in the volume of transactions directly impacts the level of economic activity. And so will it affect the size of economic output (gross domestic product or GDP). And, there are second-round effects: As incomes decline so too does demand. Sales of fast moving consumer goods have slowed; demand for other goods (clothing, automobiles, trucks and other commercial vehicles) has contracted. Finally, expenditure on discretionary consumption has been cut back. The outcome: A reduction in the real value of economic output.
Many (economists, finance companies, equity analysts, academics and politicians) will try to estimate the impact on real GDP. And, they will come up with different numbers. But, any way you cut it, the answer must be a slower rate of economic growth, with the possibility that there could actually be a contraction in GDP (compared to the corresponding quarter last year). Forget what the economists hypothesise or project. Look around you. See the daily hassles of queuing up for cash (only a symptom of the underlying disease). Read the reports in the newspapers. Economic activity has been hurt. And, this may go on for the next three to five months. Now, make up your mind: Is this nonsense? To be fair, not all bankers would make the outrageous statement one of them did. Obviously, there is another proverb that remains unknown: the one about glass houses.
SOURCE: The Business Standard
Taking the financial markets by surprise, the Reserve Bank of India’s six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, decided to keep the policy repo rate unchanged at 6.25 per cent. The decision came in the backdrop of an upturn in the prices of several items, possible re-emergence of food inflation pressures, likelihood of crude prices firming up in the coming months, and imminent tightening of US monetary policy. Simultaneously, the central bank alleviated the banks’ burden of maintaining temporary incremental cash reserve ratio (CRR) of 100 per cent. It announced withdrawal of this requirement with effect from the fortnight beginning December 10. This move could give banks some leeway to cut lending and deposit rates going forward.
CRR is the slice of deposits that banks have to park with the RBI. It is currently at 4 per cent of deposits. The MPC said its decision is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by the fourth quarter of 2016-17 and the medium-term target of 4 per cent within a band of +/-2 per cent, while supporting growth.
The markets were widely expecting the RBI to follow up its October 4 repo rate cut of 25 basis points with a similar cut in the fifth bi-monthly monetary policy review on Wednesday. The repo rate is the interest rate at which banks borrow funds from the central bank to overcome short-term liquidity mismatches. Since January 2015, the RBI has cut the repo rate cumulatively by 175 basis points.
Markets disappointed
The equity market gave the thumbs-down to the RBI announcement. The benchmark S&P BSE Sensex ended down -155.89 points (or 0.59 per cent) to close at 26,236.87. Patel said the Committee felt it important to ensure that the consumer price inflation target of 5 per cent by the fourth quarter of 2016-17 and the medium target of 4 per cent within a band of +/-2 per cent are achieved. “This assumes critical importance in view of the stickiness in inflation, excluding food and fuel,” it said, and cited the “recent rising profile of international crude prices and the continuing firmness in some salient food items.” “Given these indicators of underlying inflation, it is appropriate to look through the transitory but unclear effects of the withdrawal of specified bank notes (of Rs. 500 and Rs. 1,000 denominations) while setting the monetary policy stance. On balance, therefore, it is prudent to wait and watch how these factors play out and impinge upon the outlook. Accordingly, the policy repo rate has been kept on hold in this review, while retaining an accommodative policy stance,” explained the Governor. This was the second meeting of the MPC since its formation two months ago. It was also the second monetary policy review of Urjit Patel since he took over as RBI Governor in September.
On the decision to do away with the incremental CRR requirement, which the RBI had enforced on November 26 to suck out excess liquidity from banks owing to the flood of deposits following the demonetisation, the Governor emphasised that it was intended as a temporary measure to manage the transition from an exclusive reliance on liquidity adjustment facility operations to a mix of instruments including the market stabilisation scheme (MSS) issuances. “The government has proactively responded to the situation by enhancing the limit of MSS securities to Rs. 6 lakh crore. This has enabled the withdrawal of the incremental CRR with effect from the fortnight of December 10,” he said. “Banks will no longer have to bear the burden of the incremental CRR as they will be adequately compensated through the coupons on MSS securities,” said Patel.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 52.07 per barrel (bbl) on 06.12.2016. This was lower than the price of US$ 52.42 per bbl on previous publishing day of 05.12.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3542.75 per bbl on 06.12.2016 as compared to Rs. 3573.79 per bbl on 05.12.2016. Rupee closed stronger at Rs 68.03 per US$ on 06.12.2016 as against Rs 68.17 per US$ on 05.12.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 06, 2016 (Previous trading day i.e. 05.12.2016) |
Pricing Fortnight for 01.12.2016 (Nov 12, 2016 to Nov 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
52.07 (52.42) |
44.87 |
|
(Rs/bbl |
3542.75 (3573.79) |
3061.48 |
|
|
Exchange Rate |
(Rs/$) |
68.03 (68.17) |
68.23 |
SOURCE: PIB
The textile export industry appreciated the decision of Ishaq Dar Finance Minister for reducing gas tariffs for the industry. A joint meeting of Pakistan Apparel Forum (PAF), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Cotton Fashion Apparel (PCFA), Pakistan Knitwear and Sweater Exporters Association (PAKSEA), All Pakistan Textile Processing Mills Association (APTPMA) and other textile bodies said this measure would reduce the cost of doing business and manufacturing and alleviate the problems the export oriented industry was currently facing. The meeting said governments of our nearest competitors India and Bangladesh are giving utilities at much cheaper rates and their exports are heavily incentivised. The meeting also demanded that the cost of manufacturing be reduced, as it has been done in terms of gas tariff. All representatives of the textile related sector along with Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations said electricity tariffs needed to be brought down to Rs 9 per Kilo watt and one percent income tax collected at export should be done away with. Similarly 0.25 percent Export Development Fund should also be withdrawn. They also demanded release of withheld Duty Taxes Remission on Export amount which was stuck up in billions of rupees with the government.
SOURCE: The DailyTimes
As Indonesia accelerates talks with 15 Asia-Pacific nations, it is prioritizing the conclusion of five trade deals next year to open access to foreign markets and lure inflows of investment. The biggest one is the intensively discussed Regional Comprehensive Economic Agreement (RCEP), which will create a market of 3.4 billion people involving ASEAN and its six major trading partners – Australia, China, India, Japan, New Zealand and South Korea. The rest are two comprehensive economic partnership agreements (CEPA) with the European Free Trade Association (EFTA) and Australia and two free trade agreements (FTA) with Peru and Chile.
Trade Ministry director general for international trade negotiation Iman Pambagyo said that the deals are expected to strengthen Indonesia’s grips on regional and international markets, as well as integrate its industries more deeply with global supply chains amid a worldwide economic slowdown that has sapped trade growth in recent years. Global trade fell to a low cycle in the past four years of 2.8 percent in 2012 and 3.5 percent last year. Before commodity prices plunged and the United States experienced a budget crisis, international trade grew at 11.71 percent in 2010, World Bank data shows.
Indonesia’s exports have gradually shrunk since 2011, after they hit an all-time high of US$203.4 billion, to $150.2 billion last year, according to data from the Central Statistics Agency (BPS). Once completed, the RCEP will help more goods, services and investment flow into the biggest regional trade bloc ever, one that would represent 30 percent of the global economy. ASEAN has already sealed an FTA, known as ASEAN+1, with the trading partners. However, its six partners have yet to ink similar deals among themselves. “Now we want to combine all these [agreements] to become one, so that all 16 countries can develop, deepen and widen the regional supply chain,” Iman recently told The Jakarta Post.
Talks on the RCEP have just entered their 16th round and they are taking place in Indonesia this week. For the first time, the discussions will touch on issues like the free movement of workers and intellectual property rights, while also trying to finish a chapter on small and medium enterprises (SMEs). A CEPA with the EFTA, meanwhile, is expected to be completed in the first half of 2017. With the agreement, Indonesia would prioritize attracting investments from Iceland, Norway, Switzerland and Liechtenstein, a combined market of only 14 million people. The Indonesia-Australia (IA) CEPA, which has been discussed since 2010, has a deadline of late next year. Traditionally, the two countries produce complementing products and services, except for cattle and horticulture. Indonesia ships mostly automotive parts and paper to its neighbor, which has a population of 23 million, and also hopes for more investment from there. At least 250 Australian firms already have a presence in Southeast Asia’s biggest economy. As export growth has slowed in recent years, Indonesia is trying to reach out to two non-traditional markets, Peru and Chile, which have populations of 30.7 million and 17.6 million respectively. Household spending accounts for more than 60 percent of the gross domestic products (GDP) of both countries. Apart from the five aforementioned deals, Indonesia is also preparing for other potential agreements. It is currently carrying out a joint feasibility study with the Eurasian Economic Union (EEU), a bloc that includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan and comprises 183 million people. It is also considering starting talks on a trade deal with either Egypt or Southern African Customs Union (SACU) and is reconsidering one with Turkey. In the planned deals, Indonesia will seek to lure investors into priority industries and export more of its champion manufactured goods.
In the National Industry Development Masterplan (RIPIN) for 2019 to 2035, the Industry Ministry has set 10 priority industries to develop and defend amidst tighter global competition, including food, textiles, footwear, automotive, basic metals and minerals and electronics. In line with the goal, economic policies to grab investment in those areas have been put into place and are partly aimed at reducing dependence on imported goods. However, questions linger over whether Indonesia would benefit from the trade agreements it is seeking. Business players have long voiced such concerns, saying that it is necessary for the country as well as its industries to boost their own competitive edges. Indonesian Chamber of Commerce and Industry (Kadin) deputy chairwoman for international relations Shinta W. Kamdani highlighted the lack of labor productivity and poor coordination between the central and regional administrations as some main stumbling blocks to provide a more conducive investment climate and lower production costs to compete with foreign products. “There’s much homework for us, ranging from regulations and productivity to labor issues. If we don’t settle them, we can lose out in the global market,” she told the Post. The business group has already signed a memorandum of understanding with the Manpower Ministry, the Industry Ministry and Germany to create more internship areas and do talent matching with vocational schools across the country. It is scheduled to start next year.
Sharing a similar concern with Shinta, Indonesian Textile Association (API) chairman Ade Sudrajat said the most daunting task would be to improve the ease of doing business, which helps lure investment. “Our policies must also be consistent and it requires regulatory impact studies. However, the reality at present speaks differently,” he told the Post, referring to an antidumping duty that Indonesia applies on imported yarn from Taiwan, China and South Korea, which makes its textile products more expensive.
SOURCE: The Jakarta Post
The Indonesian Government is planning to ease import procedures to improve the competitiveness of local businesses with regional competitors like Vietnam, which has no import tariff, as opposed to Indonesia’s fees of 5-20 percent. President Joko “Jokowi” Widodo instructed the relevant ministries for the same in a limited Cabinet meeting. He said that the import procedures must be simplified for Textile and textile product (TPT) raw materials to lift the burden off businesses. Jokowi said the TPT industry was in need of immediate revitalization to push further industrialization. He added that many industrialized countries in Asia, like Japan, China and South Korea, started their industrialization efforts by developing the TPT manufacturing industry.
Efforts are thus made to streamline the process of importing raw materials for textile and textile products (TPT) in order to rejuvenate the labor-intensive industry, which has been struggling with fierce global competition. Data from the Geneva-based International Trade Center show that the value of Indonesia’s apparel and clothing accessories exports declined by almost 4 percent to US$3.3 billion last year from 3.42 billion in 2014. Thus, the Indonesian exports may get an impetus because of the government’s policy to revitalize the TPT industry
SOURCE: Yarns&Fibers
The fourth edition of Putrajaya International Islamic Arts and Culture Festival (PIIACUF) 2016 currently ongoing where visitors will get to see the wonders of Islamic arts and culture. The event is expected to attract 500,000 visitors. Themed “The Glorious Textile of the Islamic World”, the festival showcases a line-up of cultural programmes and activities revolving around fine intricate textiles and its unique skills and techniques as well as arts and crafts. The event played host to about 100 international participants and delegates from various countries including Brunei, China, Bangladesh, Turkey, Tunisia, Indonesia, Kuwait and Iran. Among the highlights of the exhibition are a replica of Prophet Adam’s robe measuring 29m and the collection of tengkolok (headdress) worn by Malay rulers as part of their royal regalia. Also, visitors can expect to see a display of the finest example of fabrics from participating countries such as clothing dating back from the early Islamic civilisation up to the present time.
Apart from the exhibition, there were about 70 booths promoting various international and local products and services including handmade items. Putrajaya Corporation president Datuk Seri Hasim Ismail speaking at the launch said that PIIACUF has grown significantly since its inception in 2013. The presence of a large number of exhibitors, traders and local and international visitors is clearly an indication that PIIACUF has established itself as the premier platform and the meeting point for Islamic arts and cultural exchange and interaction. Leveraging on the strengths of ties from Muslims across the world, PIIACUF will continue to be the driving force which will bring together artists, craftsmen, musicians and experts to showcase their talents and ability to promote arts and culture. PIIACUF 2016 is being held at the Putrajaya International Convention Centre which open to the public from 9am to 11pm and admission is free. The event which began from 1st Decemebr will continue to run until 11 December.
SOURCE: Yarns&Fibers
Most mornings, 15-year-old Iqbal arrives for his job at a Dhaka panel beaters at about 10am, working on cars for up to 13 hours before he can go home. The teenager, who earns less than £60 a week, has been working these hours since the age of 12, when his family’s financial problems forced him out of school and into a full-time job. A major study released on Wednesday suggests his case might be typical of Bangladesh’s poorest young people. A survey of 2,700 slum households (pdf), carried out by the Overseas Development Institute, found that child labourers living in slums worked an average of 64 hours each week – many in supply chains connected to the world’s most popular brands. The survey, among the largest conducted in the south Asian country, found 15% of children aged between six and 14 did not go to school and worked full-time.
Two-thirds of girls from slum areas who were working full-time were employed in Bangladesh’s $30bn (£24bn) clothes manufacturing industry, which is one of the world’s largest despite an extremely poor safety record. The manager of one unnamed garment factory told researchers that, while he was aware children aged 11 and 14 should not be working, he did not regard their employment as illegal. He also admitted that many of his employees did not carry identification cards that would verify their age. There was no immediate comment from Bangladesh authorities or its powerful garment manufacturers, but union leaders said child labour in factories was rampant. The extent of child labour in Bangladesh’s textile industry was laid bare in July when a nine-year-old boy was brutally killed at one of the largest spinning factories.
Police probing the case said they found a quarter of the workforce at the factory outside Dhaka were children. International brands have been part of the push to eradicate child labour and improve safety standards in factories since the 2013 Rana Plaza collapse that killed 1,135 people. But the chief executive of Save the Children, Kevin Watkins, who co-authored the report, said that – given the number of children working in the industry – it was “implausible to believe that there isn’t significant pollution of the value chains of large-scale, western companies”. “Many of these girls are not in the biggest factories in the formal sector, but they’re certainly in the supply chains of those factories,” he said.
Components of textile manufacturing such as sewing buttons were sometimes contracted out by the large factories to smaller workshops, over which government scrutiny was likely to be poor or non-existent, Watkins said. “There are very significant levels of child labour in products that end up in retail outlets in the UK and elsewhere.” The study also found that more than 36% of boys and 34% of girls said they had experienced “extreme fatigue” on the job. It said that families were usually keen for their children to remain in school, but were unable to afford to live without the extra income, albeit meagre. Iqbal’s father said he was “very much worried and tense” about his son’s future and wished the teenager could continue his education. The boy felt the same way after he first dropped out of school, but said three years in the workforce had changed his perspective. “Even if I got the chance to study I probably wouldn’t,” Iqbal said. “I have no interest any more.”
SOURCE: The Guardian
A total of 20 companies, from more than 300 entries, were selected for the third best green fabric award at the 'China Fabrics Quality Competition' held on December 3. The event was held along with the 18th session of Shenzhen clothing OEM and accessories exhibition and the closing ceremony of the third session of the Shenzhen original design fashion week.
During the thirteenth Five Year Plan period, the supply side of reform as a national strategy has greatly impacted the textile and garment industry. The Chinese government put forward strategy to increase varieties, improve quality and create brands, and promoted a 'quality revolution' across the country. As a large textile manufacturing country, China is facing quality bottleneck in continuously upgrading its international reputation. The 'China Fabrics Quality Competition' was initiated to address the pain point of quality of the domestic textile industry, and to ensure orderly competition and healthy development of textile fabrics enterprises.
The theme of the third China Fabrics Quality Competition was to 'find a good fabric in China'. With fabric quality as the core of the contest that began on June 28 this year, the competition attracted entries from more than 300 fabric enterprises. To make the entry of various enterprises more convenient, a variety of registration channels were opened through multimedia and widely publicity was given for the same. The competition was organised by the China Academy of Textile Science, Textile Science Research magazine, the Shenzhen Textile Industry Association, the global textile network, DICTION, and Pengcheng Exhibition Co. Ltd. The China Textile Testing and Certification Center provided exclusive technical support.
Compared with the previous two editions, the latest China Fabrics Quality Competition had three firsts. It was for the first time that the event was held in Shoaxing, Shenzhen and other industrial clusters. It was also for the first time that industry trade platform Global Textile Network, fashion industry innovation platform DICTION news network, and well-known exhibition company Pengcheng exhibition were invited to join as a sponsor to bring in new vitality in the industry chain contest. The competition was also held for the first time in a textile laboratory, on the opening day, which ensured zero-distance access to the participating enterprises to understand testing standards, projects and related standards and methods.
Further, activities were carried out in Shaoxing, Shenzhen and other places to make the fabric enterprises understand the rules of the contest, and to help fabrics and brand apparel enterprises to achieve effective participation. At the same time, the organisers sent representatives of enterprises to third-party testing organisations to visit textile labs to make them understand the requirements of the testing process.
The entry fabrics for the competition were tested by professional testing organisations and textile standard testing and certification centres. The fabrics were tested for the presence of various items including formaldehyde, decomposable carcinogenic aromatic amine dyes, etc. PH value and colour fastness of fabrics were also tested. Additionally, combustion performance was also tested for those participating in the national best baby clothing green fabric products competition. To make the test results easier to compare and understand, the China Textile Standard designed and evaluation system, whereby various laboratory results were converted into scores, and based on the weight of each test, an ultimate Total Quality score was arrived at The fourth edition of China Fabrics Quality Competition will begin in June 2017.
SOURCE: Fibre2fashion
Kikani Exports, India based yarn supplier with 12 years of experience in exporting to China, has a fully-equipped testing laboratory with latest technology for fibre and yarn quality assurance from the Uster Group, a high-technology instrument manufacturer for quality certification in textiles. Kikani MD Vrajesh Kikani shares his views on China yarn market.
As a leading exporter of yarn to China, what according to you is the major factor impacting China yarn trade?
Exporting yarn to China is both a massive opportunity and a tremendous challenge. Price competitiveness is the most crucial factor in China trade along with control of sourcing, control of quality, and control of costs.
What according to you is the biggest difference between China and other export markets in the volume of business available?
In China the volumes are huge. We started selling there in 2004, with about 60 tons per month. That increased over time to as much as 4,000 tons per month by 2014, but in the past year the market has been more depressed, so we have recently been at a level of around 2,000 tons.
What kind of quality strategy do you deploy in your in-house spinning methods?
Kikani has put in place a carefully-planned strategy to ensure consistent control of every aspect. It begins with sourcing – the right yarns at the right price from reliable spinners. Latest technology and process control is also necessary.
Can tell you about the latest Uster technology used in spinning yarns in Kikani mills?
We rely on Uster guidelines, ensuring our quality consistency within defect tolerances below 5 per cent. Staff training for quality management is also a priority, and we implement both routine quality checks and random audits. The new mill, in the Ahmedabad District of Gujarat, started up in 2015, expanding to 29,376 spindles and 4,320 TFO drums by the end of the year.
What special kind of yarn do you produce?
A special advantage for knitting yarn is Kikani's focus on a Gujarat cotton type known as Shankar 6, which is said to have the lowest contamination rate of the entire Indian crop – although still high compared with cottons from the USA or Australia.
Talking about contamination in Indian cotton, what is Kikani Exports doing to tackle the issue?
Contamination by foreign matter is a serious issue, and there is a constant need to monitor and control it. Kikani uses a combination of the latest Uster JOSSI MAGIC EYE detection in the blow room and Uster QUANTUM 3 (PP option) clearers on its winders.
What kinds of yarn do you specially trade off to China?
Kikani's yarn range includes both carded and combed variants, across as count range of Ne 16 to Ne 40 ring spun, including compact, and Ne 6 to Ne 24 in OE-spun. Most yarns are 100 per cent virgin cotton or blends with waste cottons.
What do you expect in the future from China yarn market?
The current tough market environment will become even tougher in the future. Our volumes into China will come down for sure, because of increasing competition from Vietnam and other countries, as they have preferential duty structures.
SOURCE: Fibre2fashion
China's GDP has grown at 6.7 per cent in the first three quarters of 2016, and is on track to meet growth expectations. China's economy is maintaining a stable and progressive trend even in its current phase of upgrade and transformation due to supply-side reform and a series of other policies implemented by the government, Chinese media reports said. Both producer price index (PPI) and manufacturing purchasing managers index (PMI) are on the rise according to the data from the National Bureau of Statistics. Commodity price index has also increased in the second half of this year. Data from the ministry of commerce shows that 22,580 foreign-invested enterprises were set up from January to October, registering an increase of 7.4 per cent. The total foreign investment is also continually rising. Meanwhile, the quality of China's economy is likely to continue improving trend because of the ongoing reduction of capacity, stocks, leverage, and costs, and efforts to make up for the weakest links.
SOURCE: Fibre2fashion
The trade show for fabrics, trimmings and accessories Texworld Paris, begins February 6-9, 2017, with around 650 exhibitors. Major companies from Pakistan and Bangladesh, which had stayed away since the last two years, are back again, while Texprocil, an Indian trade body will be attending with a group of companies, who will be presenting innovative fabrics. According to Messe Frankfurt France, the organiser, the Elite segment which was introduced in September 2016, is already fully booked. “The main advantages of this new dedicated area are that the ranges are clearly identified and better set apart, stimulating visitor interest and delivering new contacts,” the organiser said. There will also be a series of lectures focusing on the latest developments in the sector, fashion shows and the Trends Forum, all of which will make up for a varied and imaginative programme for visitors. “The active and firm commitment to the next show by exhibitors, attests to the effectiveness of the decisions taken by Messe Frankfurt France, and the innovations it has implemented to further ensure that Texworld Paris continues as a must-attend event for the fashion industry”, Michael Scherpe, president of Messe Frankfurt France said.
SOURCE: Fibre2fashion
Italian Ministry of Economic Development and Punjab Board of Investment and Trade (PBIT) have signed six Memorandum of Understandings (MoUs) for the promotion of bilateral commerce and trade between the two. The MOUs signed during the visit of 60-member delegation led by Ivan Scalfarotto, Italian Under-secretary of State at the Ministry of Economic Development arrived here on Tuesday.
The Italian Textile Manufacturing Association signed three separate MoUs with All Pakistan Textile Mills Association (APTMA), Pakistan Hosiery Manufacturing Association (PHMA), and Pakistan Readymade Garment Manufacturer and Exporters Association (PRGMEA). Besides, Italian Foreign Trade Association signed two separate MoUs with Lahore Chamber of Commerce and Industry, and Faisalabad Chamber of Commerce and Industry (FCCI) and National Association of Italian Footwear, Leather Goods and Tannery Machines Accessories with Pakistan Footwear Manufacturers Association. This Italian business delegation, comprising 60 representatives of over 40 companies and business associations is participating in Pakistan-Italy Investment and Business Forum organised by PBIT.
Speaking at the Forum, Punjab Finance Minister, Dr Ayesha Pasha said that visit of Italian businessmen in the leadership of their government representative was a proof of economic progress of Pakistan and trust of foreign investors in the better investment environment in Punjab. She said the MoUs with Punjab-based Chamber of Commerce and textile and footwear sectors possessed the trust of these Italian counterparts in Pakistanis counterparts and showed their keenness to explore Pakistani potential. Speaking on the occasion, Minister for Industries Sheikh Allauddin said it was indeed encouraging that a high-level business delegation of Italy was currently visiting Pakistan with a committed aim, to explore investment opportunities in Pakistan, apart from enhancing trade volume between the two countries. This commitment validates the fact that Pakistan is politically and economically a very sound country and investors see it as a place where their investment is secure, he said. He said Italian business community and investors had expressed satisfaction over the business environment in Pakistan, which is conducive for foreign investment.
IT policy draft: Punjab Information Policy draft, made available online for any interested individual to access the policy draft and submit feedback/suggestions, received an encouraging response while Information Technology Board (PITB) has now concluded its further pubic consultation on the draft of the Punjab IT Policy 2016. It was available at www.policy.pitb.gov.pk after the 3rd PITB Roundtable conference, held on 25th of October, 2016. “This is a landmark moment in the way policies are envisioned and formulated in the country. The Punjab government has endeavoured to not only increase transparency in its execution of different projects, but also increase public involvement in determination of the government priorities at a policy level”, said Dr Umar Saif, Adviser to the Chief Minister Punjab, on IT, ITU VC, and PITB chairman, according to a press release issued here on Wednesday. “We have made a sincere effort to bring all stakeholders on board during the preparation of this document. Our approach has been met with great enthusiasm and we have received quality feedback, which is currently being incorporated in the final draft.” The draft had been opened for public consultation with the purpose of making the policy-making process more inclusive and transparent, while at the same time soliciting improvements in the draft of the policy.
SOURCE: The News
