INTERNATIONAL
Textile Raw Material Price 2016-12-21
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1222.64 |
USD/Ton |
0% |
12/21/2016 |
|
VSF |
2272.67 |
USD/Ton |
1% |
12/21/2016 |
|
ASF |
1841.15 |
USD/Ton |
0% |
12/21/2016 |
|
Polyester POY |
1258.60 |
USD/Ton |
0% |
12/21/2016 |
|
Nylon FDY |
3106.94 |
USD/Ton |
0% |
12/21/2016 |
|
40D Spandex |
4315.20 |
USD/Ton |
1% |
12/21/2016 |
|
Polyester DTY |
1503.13 |
USD/Ton |
0% |
12/21/2016 |
|
Nylon POY |
2948.72 |
USD/Ton |
0% |
12/21/2016 |
|
Acrylic Top 3D |
2013.76 |
USD/Ton |
0% |
12/21/2016 |
|
Polyester FDY |
1618.20 |
USD/Ton |
0% |
12/21/2016 |
|
Nylon DTY |
3308.32 |
USD/Ton |
0% |
12/21/2016 |
|
Viscose Long Filament |
5451.54 |
USD/Ton |
0% |
12/21/2016 |
|
30S Spun Rayon Yarn |
2934.34 |
USD/Ton |
2% |
12/21/2016 |
|
32S Polyester Yarn |
1849.78 |
USD/Ton |
0% |
12/21/2016 |
|
45S T/C Yarn |
2632.27 |
USD/Ton |
0% |
12/21/2016 |
|
40S Rayon Yarn |
3063.79 |
USD/Ton |
2% |
12/21/2016 |
|
T/R Yarn 65/35 32S |
2258.29 |
USD/Ton |
1% |
12/21/2016 |
|
45S Polyester Yarn |
1970.61 |
USD/Ton |
0% |
12/21/2016 |
|
T/C Yarn 65/35 32S |
2215.14 |
USD/Ton |
0% |
12/21/2016 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0% |
12/21/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
12/21/2016 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
12/21/2016 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
12/21/2016 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
12/21/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14384 USD dtd 21/12/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Goods & Services Tax (GST) Council will meet on Thursday and Friday to take up drafts of the model GST, integrated GST and states' compensation Bills. The aim will be to address the contentious issue of administrative turf between Centre and states. Tax experts say this will be difficult. The Centre might push a cross-empowerment model of random choosing and division of five% of the assessees between Centre and the states, using a computer programme. The parameters on which the assessees could be chosen would be in-built in software written for this purpose. However, states want sole control over assessees up to Rs 1.5 crore of annual turnover.
Naveen Wadhwa of Taxmann thinks a solution could be found outside the suggested models. He says states could have sole control over assessees up to Rs 1.5 crore of turnover if their supplies are intra-state; above that, the Centre should. If supplies are inter-state, the Centre should have control over all assessees, he said. In any case, he feels, the April 1, 2017, target date is now difficult to meet. Almost half of the 99 sections of the model GST Bill have already been approved by the Council and the rest would be taken up in the two-day meeting. “If the issue of administrative control is sorted, the Bill could be tabled in the Budget session of Parliament,” says R Muralidharan, senior director with consultancy Deloitte. However, even then the issue of rolling out a GST from April would be a challenging one, he added. If the issue is not resolved in the meeting, the Council can try once more in January, he said. The issue of administrative control would be taken by the Council “if time permits”, finance minister Arun Jaitley had said earlier. The two-day meeting earlier this month did not take up the issue.
Last week, Jaitley had described the prickly issue as minor in the larger frame of things. He had suggested each assessee be assessed only once, since central taxes like excise and service tax and state levies like VAT are being subsumed into one. “You have the pre-existing (tax) machinery of the Centre and states. (It has to be decided) how the burden of this assessment is going to be shared between the Centre and states, and how we cross-empower both the Centre and states,” he had said.
SOURCE: The Business Standard
As uncertainties linger over the actual date of the rollout of the goods and services tax (GST) regime, the textile industry has asked the government to bring parity in the excise duty structure of man-made and cotton fibres in the coming Budget itself. At present, while a 12.5% excise duty is imposed on man-made fibres, cotton fibres attract none. The suggestion was made at a pre-Budget meeting with finance minister Arun Jaitley on Tuesday. The industry was under the assumption that with the introduction of the GST regime, its demand for erasing the duty gap could automatically be addressed, said a senior government official. However, with the Centre and states yet to iron out differences on several sticking points, analysts have ruled out the introduction of the new indirect tax regime at least before September 2017.
The industry has been demanding a reduction in the excise duty on man-made fibres, saying such a disparity is preventing domestic synthetic fibre producers from scaling up operations. The huge duty difference has ensured that India’s textile market remains cotton-driven, in a stark contrast with the trend globally, apart from eroding the country’s export competitiveness in the man-made fibre segment. While man-made fibres account for around 60-70% of the world’s total fibre consumption, they make up for just 30-40% of Indian fibre demand (with cotton textiles contributing the rest).
OP Lohia, chairman of Indo Rama Synthetics, told FE that since the GST is unlikely to be a reality before September, the government should, in the least, cut the excise duty on man-made fibre to 6% from 12.5%. It would also set the stage for the levy of a 5% duty for both cotton and man-made fibres under the GST regime, as many are expecting, he said. Synthetic fibre is a poor man’s necessity, as cotton fibre is more expensive, he added. The excise duty on man-made fibres, which was as low as 4% in 2009-10, was raised by the previous government. This came as a shocker to synthetic fibre producing companies that had invested much in expanding capacity to cater for growing domestic demand for man-made fibre, Lohia said. Also, as Lohia pointed out, the hike in the excise duty massively dented growth in the synthetic fibre segment—from roughly 10% in 2009-10 to a meagre 0-5% annually in recent years.Even the textile ministry has supported the industry’s contention in recent years. FE had earlier reported that in a presentation to Prime Minister Narendra Modi in 2014-15, then textile secretary SK Panda had listed “rationalisation” of duties on man-made fibres as one of the eight short-term initiatives the ministry wanted to be addressed under the ‘make in India’ programme.
SOURCE: The Financial Express
In a major relief to garments manufacturers and retailers, the textiles ministry has taken loose readymade garments out of the purview of the Legal Metrology (Packaged Commodities) Act 2011. This means, garments manufacturers do not need to follow the labelling and packaging norms applicable for packaged commodities such as consumables. Through a notification dated December 16, the Ministry of Consumer Affairs, Food and Public Distribution, said: “The mandatory labelling requirements for pre-packaged commodities are, therefore, not applicable to garments sold in loose form.”
The Legal Metrology (Packaged Commodities) Act 2011 mandates packaged commodities to incorporate name, descriptions, size, the full address and customer care number of the manufacturer. The Act mandates garments size to be measured in centimetres in India. Globally, however, garment size is measured in S (small), L (large), M (medium), XL (extra large), etc. Therefore, measuring garments only in centimetres has been a Herculean task. “This move by the government is a game-changer for the apparel industry. It not only gives us the ease of doing business but also provides freedom from the undue demands of the inspectors and their inspector raj. This is a progressive step to resolve a long-standing demand from the apparel industry,” said Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI). “We normally pick up one or two garments out of a dozen we see, feel and check. So, loose garments could not have been treated as consumables like sugar, pulses etc which cannot be opened and checked. Now, garments do not require to declare the name of manufacturers, year of manufacturing etc. The exemption would bring in a major relief for producers and consumers,” said Mohan Sadhwani, executive director, CMAI.
Under the Act, there were no clear labelling guidelines for loose garments, which made it difficult for apparel retailers to demarcate the labelling procedure between the pre-packaged and loose garments, thus causing unnecessary inconvenience during inspections at apparel retail showrooms. The provisions of the Act were severe for any offense and directors of the company were directly responsible for the same. In case of readymade garments sold to consumers in pre-packaged form, mandatory labelling along with the size of the garments needs to be mentioned in metres or centimetres. Further, details such as S, M, L, XL, etc will be treated as additional declaration. Siddharth Bindra, managing director of Delhi-based Biba Apparels, said: “Removal of readymade garments from the Packaged Commodities Act is a landmark step, which will help in the ease of doing business and development of the apparel business in India.”
SOURCE: The Business Standard
The textile industry is appreciating government’s move to do away with the archaic laws like labelling of garments and easing the Legal Metrology Act for clothing industry. In a tweet, Kishore Biyani, Founder and Group Chief Executive Officer India's leading Retail Company, Future Group, wrote, “Grateful to @smritiirani ji for aiding #easeofbusiness by removing archaic laws for labelling of garments , you help #makeinindia a success.”
The Clothing Manufacturers Association of India (CMAI), the apex body for the Indian apparel industry, said, “Thank you, Textile Minister @smritiirani for encouraging the exemption of Readymade Garment from the packaged Commodities Act.” According to some experts, since garments are sold in an open condition and the customer has the option to touch, feel, and try it on, application of the Packaged Commodities Act on garments not only lacks logic, but also exposes retailers and brands to harassment at the local level. In a tweet, Irani thanked Ram Vilas Paswan, Union Minister of Food & Public Distribution, Consumer Affairs, Government of India, writing, “Extremely grateful to @irvpaswan ji for listening to industry concerns & issuing advisory on easing Legal Metrology Act for Clothing Industry.”
SOURCE: The KNN India
Jogindra Industries is a manufacturer and exporter of a wide range of dyeing machines and textile machine accessories such as HTHP horizontal package yarn dyeing machine, hot air dryer, dummy roll trolley and textile bobbins. Harmeet Singh, director for sales & marketing, shares details about the latest developments at Jogindra Industries.
How would you describe the current state of textile processing sector in India?
The textile processing sector in India is in a positive state as of now. A fast growth is being witnessed, and we are happy with it.
The demand for which dyeing machines is high in the domestic and international markets?
HTHP vertical dyeing machine has the highest demand in the domestic market, whereas in the international market the demand for HTHP horizontal tubular dyeing machine is higher.
Which are your major markets? Which markets do you plan to explore in the future?
India is a major market for Jogson, at the same time Europe, Vietnam, Sri Lanka, Bangladesh, Nepal and many more countries comprise our international markets.
What is the USP of the textile processing machines at Jogindra Industries?
We have been serving the textiles industry for over three decades with top quality products by mainly following one rule, which is of serving the best quality products. The USP of Jogson's textile processing machines would undoubtedly be quality.
What are the latest innovations at Jogindra Industries?
We recently introduced a dyeing machine-Jogson MultiColor Space Dyeing Machine, with which one can dye yarn with eight colours at the same time with different designs. Since the day it was introduced in the global market, it has had a high demand.
What is the annual budget allocated towards R&D? What projects are you working on?
We have a rule of allocating 10 per cent of the sales of the previous year towards R&D. We are always working on projects where the customers can save money using our machines. One of our major ongoing projects is on energy saving.
What has been the growth in the last two fiscal years and what are your expectations for the next two?
In the last two fiscal years, the graph of our growth has been progressing day by day, and in the next two years, we will reach new heights.
SOURCE: Fibre2fashion
Workers in the textile industry are among the biggest beneficiaries of the Centre's demonetisation move, Union minister Smriti Irani said on Wednesday. Speaking at the Mail Today Make in India Fashion Summit, she also credited Prime Minister Narendra Modi with making khadi 'cool' again. The event held in the Capital treated fashion enthusiasts to a day of stirring discussions as well as the latest buzz in couture and policy-making with star-studded panels comprising leading politicians and designers.
'Earlier the labourers used to complain about not getting their dues as decided and there was no record that showed whether they were getting at least the minimum wages,' said the Textiles Minister. 'This approach (digital payments) will ensure that each labourer gets the minimum wage. They will be getting their payment with transparency.' Irani revealed that her ministry is ensuring all stakeholders learn to use the digital platform for their transactions.
'Whoever wants to be part of the transparent system has approached the government,' she said. 'We are helping workers open bank accounts and get Aadhaar cards with the help of the local administration.' The minister said a one-size-fits- all approach will not work in the Indian fashion world, as she made a strong pitch for vacuuming up the talent in the countryside and bringing it to the centre stage.
On being asked why politicians shy away from being associated with fashion shows and from taking a seat in the front row, Irani said: 'Weavers and artisans are the ones who deserve front seats at fashion shows. It is important for them to understand that they are not devoid of appreciation.' Talking about the employability of artisans, the BJP leader said after skill development, the placement has gone up to 75 per cent and the ministry also does a follow-up.
Speaking on how style savvy she is, Irani said: 'I have never had a conscious decision making process when it comes to what to wear. In India you wear what you like. 'Even as an actress, I never had a style quotient. I was happy with one mangalsutra.'
The session entitled Reinventing Khadi - Fabric of the Future saw panelists dispelling various myths about the hand-spun cloth while also focusing on its road to the global platform. Khushboo Aggarwal, creative head at Ritu Beri Designs, explained that khadi is aptly named 'vichitra vastra' because it isn't just a fabric but a serious thought. 'Khadi has been neglected for years, but it's now fashionable because it's being blended with silks and cotton while retaining all its qualities, which gives it a global image,' she said.
Union minister Kalraj Mishra said khadi has once again gained prominence among the masses just like it had during the Independence struggle. 'Prime Minister Narendra Modi felt the image of khadi was not being presented in the proper way. However, he encouraged people to buy khadi products. 'And it gives us so much satisfaction to see the faith people hold in this present government that today khadi has once again become a style statement,' he said. How India's big fat wedding industry has contributed to handloom also came into focus at the summit. 'It's now cool to go vintage. Different royalties in different parts of the country contribute to bridal wear today. No matter what happens, a Rajasthani bride will never wear a black lehenga,' said designer Ritu Kumar.
SOURCE: The Daily Mail
Over 4,000 tempo owners ferrying textile goods to and from the textile markets will take out a rally on Thursday to protest alleged harassment by traffic police on Ring Road and the hefty parking fees charged by the textile markets. The rally has been organized by four different associations including Surat tempo owners and drivers welfare association, Surat district textile marketing transport labour union, grey-finished delivery contractor association and Surat city tempo association on Thursday. The associations will submit a memorandum to district collector and the police commissioner regarding the harassment by the traffic cops and police control vehicle (PCR) vans at the textile markets. The tempo and transporters ferry finished and unfinished polyester material to and from over 180 textile markets. The tempo owners said that the management of the respective textile markets have set exorbitant parking charges for the tempo drivers.
SOURCE: The Times of India
In a bid to reach out to young consumers and come across as a youthful brand, the over century old Bombay Dyeing is taking multiple steps such as the launch of functional textile products targeting active life of youths as well as the launch of an e-commerce portal by early next year. "We call the segment as active life which youths have where they would need different kinds of products for different activities such as cycling, gym, etc. Also, in a first in the industry, we are also launching premium digital designer prints which are priced on the upwards of Rs 7,000 and are targeted towards the urban consumers," said Nagesh Rajanna, chief executive, Bombay Dyeing Retail (BDR).
With an aim to treble its retail turnover to Rs 1,000 crore by 2020 from over Rs 300 crore in FY16, Bombay Dyeing Retail has taken expansion activity even as it looks to launch more innovative products on the run. According to Rajanna, while on one hand, the company has changed brand logo with "new vibrant look", the company is also going aggressive on the digital front to interact and engage with customers, especially youths. "Bombay Dyeing is a relatively traditional brand and over the last two decades, our communication wasn't sharp. We are reinventing ourselves. We have not only introduced the brand with a new vibrant look, we are investing around Rs 100 crore in scaling up the brand, even as we look to launch our e-commerce portal that will go live by March 2017. We hope online sales to contribute 8-10% to our total revenue by 2020," said Rajanna.
Part of the Rs 1,845.7 crore Bombay Dyeing and Manufacturing Company Ltd (BDMCL), Bombay Dyeing Retail has an over 30% share in the organised bed, bath and coordinates market which is valued at around Rs 1,000 crore. The company has over the last several months moved away from manufacturing to a more retail service oriented company, with over 90% of its requirement now being outsourced to manufacturing partners.
While currently, Bombay Dyeing Retail contributes around 17% to BDMCL, by 2020, the company expects the same to grow to over 30%. This, the company is banking on the current expansion plan being undertaken, which by 2020 looks to see BDR's traditional textile multi-branded outlets (MBOs) grow from 5,000 to 10,000 and franchised stores from 200 to 500. Meanwhile, talking about effects of demonetisation on the industry, Rajanna said that as compared to October, the month of November saw overall 40-50% of impact on the overall industry. "However, in December, signs of recovery are being seen. While third quarter may see some impact, the fourth quarter should get normalised," he added.
SOURCE: The Business Standard
The Plant Protection Department (PPD) of Pakistan having stopped import of lint from India, after the high level meeting of All Pakistan Textile Mills Association (Aptma) and officials of the PPD last week sorted out the matter by allowing conditional delivery of 12,000 bales and further import from India, as Aptma cited they needed more imports as local crop fell short of the target. Around 10 spinning mills had imported the lint cargos, which was held at the port and they were instructed to re-export the whole lot. Following the government order, some mills had got the stay orders against the government decision from the courts. The PPD had suspended cotton imports from its top supplier after shipments failed to fulfil phyto-sanitary certification.
Industry officials said that Indian exporters have signed contracts to export 350,000 bales to Pakistan since the start of the marketing year on October 1 and out of that nearly 300,000 bales for shipments in December and January could get stuck. Yasin Siddik, former chairman, Aptma, who attended the meeting with PPD, said that the government has given the conditional permission for lint import from India. However, the PPD officials will destroy the seed arriving with the lint in the presence of representatives of the PPD. As per one expert, ginning in Gujarat and Maharashtra states of India was done on ‘roller’ technology, under which some cut seed (binola) remained part of the lint that was later removed by the local spinners.
Although 10 percent regulatory duty on lint import remained intact, import from India cost almost Rs6,400 to Rs6,500 per maund, almost at the same price available in the local market. Following the government decision, around 50,000 bales were booked in the last three days, said one stakeholder. Import from US, Brazil or African countries were costly, so Indian lint was the only viable option for the local industry. Siddik, on the other hand, said that no big lots were booked, as half of the spinners still remained unaware of such permission. Decision has yet not reached half of the people. According to Aptma sources, the millers had imported 1.2 million tons of lint from African countries, Brazil and US earlier this season and purchased 1.0 million more bales from the local crop. Still they required 3.5 million bales to meet the consumption demand, which would now be fulfilled with import from India. Currently, Pakistan’s cotton arrivals have recorded an increase of 12.33 percent to 10.14 million bales till December 15, against 9.03 million bales last year, however, crop remains far below consumption demand of 14.5 million bales. Pakistan, the world's third-largest cotton consumer, usually starts importing from September. Last year, Pakistan bought 2.7 million bales from India. In 2015/16, Pakistan surpassed Bangladesh to become India's biggest cotton buyer, accounting for 40 percent of exports. Pakistan bought $822 million worth of cotton from India last year.
SOURCE: Yarns&Fibers
In 2017, World Bank’s “Doing Business” project ranks India 130th out of 190 countries. Rankings are a function of how other countries also perform. Ignoring that point, these rankings are based on ten heads: (1) starting a business; (2) dealing with construction permits; (3) getting electricity; (4) registering property; (5) getting credit; (6) protecting minority investors; (7) paying taxes; (8) trading across borders; (9) enforcing contracts; and (10) resolving insolvency. There is another head on labour, but that doesn’t enter the overall rankings. Compared to the other nine, the eighth head, trading across borders, receives relatively less attention in reform discussions.
Let’s first understand what World Bank does. As most people know, the entire World Bank exercise is based on two cities, Delhi and Mumbai. Specifically, on trading across borders, there is an export side and an import side. For exports, a shipment has to go from a warehouse in India (Mumbai/Delhi) to the US. The representative item is electrical machinery and equipment. For imports, it is the reverse and the representative item is parts and accessories of motor vehicles, imported from Republic of Korea. The respective ports are Nhava Sheva and Mundra.
There is a bunch of documents associated with exports/imports—bill of lading, invoice, packing list, customs declaration, terminal-handling receipts, import general manifest, bill of entry, cargo release order, certificate of origin. Notice this has nothing to do with price-based measures like tariffs or duties. Notice also that had it not been for export incentives or preferential trade agreements, documentation would have been simpler. Straightforward exports/imports require fewer documents. In the Bank’s work, there is an attempt to capture three types of costs—documentary compliance (non-custom type documentation), border compliance (custom type documentation) and domestic transport, cost defined both as time taken and money spent. There is no need to get into the rest of the methodology. Suffice it to say, India doesn’t do as well on trading across borders, as it does on getting credit, getting electricity or protecting minority investors. In future, I suspect increases in India’s rank will be driven by starting a business, dealing with construction permits, enforcing contracts, getting credit and resolving insolvency. The government has charted out a eight-point strategy to improve rankings, and except the focus on increasing percentage of direct delivery shipments, most elements pertain to these, not trading across borders.
In the past, if you look at what World Bank considered big bang (worthy of separate mention) under the head of trading across borders—you will find electronic data interchange (EDI) in 2008/09 and IceGate, the e-commerce portal of CBEC in 2017. Here is a quote from the CBEC website. “ICEGATE stands for the Indian Customs Electronic Commerce/ Electronic Data interchange (EC/EDI) Gateway. ICEGATE is a portal that provides e-filing services to the trade and cargo carriers and other clients of Customs Department (collectively called Trading Partner). At present, about 24,000 users are registered with ICEGATE who are serving about 6.72 lakhs importers/exporters.” If ICEGATE delivers what it promises, why isn’t there a greater improvement in 2017 rankings for trading across borders?
Let me digress and mention a study done by IIFT (Indian Institute of Foreign Trade) for National Shipping Board in June 2016. This is titled “End-to-End Logistics & Costs for Shipping through Ports” and is a fairly recent report. There is a typo that is symptomatic of what this study found. “In import, goods are generally transported under CIF terms in which the fright (sic) is paid by the importer.” The logistics story isn’t that good. Broadly, major problems are too many unorganised and unregistered players; registration, regulation and accreditation by too many agencies under too many statutes/orders; too many heads for levying charges; and non-standardised formats for documents. That’s the gist of it. You need to read the report for a wealth of detail. One can repeat the question. Why is a June 2016 study not that bright either?
Both World Bank and IIFT findings are driven by responses to survey questions. Under WTO, there is a trade facilitation agreement (TFA). India formally ratified this in April 2016. (That doesn’t mean India has to accept every provision of TFA.) Following this, CBEC now has something called SWIFT (Single Window Interface for Facilitating Trade) that integrates into ICEGATE. This should integrate assorted government agencies and standardise documents, declarations and forms. Not too many countries have such a single-window interface and clearance system. Stated differently, whether it is the World Bank or the IIFT, there is a time-lag issue. Because of what has already been put in place, somewhere down the line, India’s rankings will inevitably improve, subject to the caveat that ranks are a function of what other countries also do. However, there is yet another caveat, flagged by IIFT. There are too many unorganised and unregistered players. This is true not only of ports, but elsewhere too. Efficiency improvements occur only when there is a greater degree of formalisation and fragmentation declines, leading to larger players.
Years ago, thanks to economist EF Schumacher, people used to say, “Small is Beautiful”. His book was published in 1973 and was then regarded as one of the most influential books ever published. That book had a point, particularly from the point of view of choice of appropriate technology. However, in other areas, efficiency and competitiveness have little to do with beauty. Trading across borders need not be beautiful and small.
SOURCE: The Financial Express
Prime Minister Narendra Modi's crackdown on the cash economy has shattered the consensus needed for a new national sales tax, GST, plunging his boldest reform into limbo and threatening to entrench an economic slowdown. Modi's government already had its work cut out to finalise a deal with 29 states to launch a Goods and Services Tax (GST) on April 1 that would transform Asia's third largest economy into a single market for the first time. But his decision to scrap 86 per cent of the cash in circulation, in a bid to purge the economy of illicit "black money", has caused huge disruption.
A slump in business activity stemming from the cash crunch has caused the revenue of state governments, which collect value-added tax on goods and other duties, to slump by 25-40 per cent. The states won't risk another setback by rushing the sales tax into force. "The investment and economic environment in the country is in bad shape," said West Bengal Finance Minister Amit Mitra, who earlier head a panel tasked with building a consensus on the GST. "How is the country going to absorb the dual shock of GST and demonetisation?" The GST is India's biggest tax overhaul since independence in 1947. It would replace a plethora of federal and state levies with one tax, easing compliance, broadening the revenue base and boosting productivity. It took Modi more than two years to forge a political compromise on the tax in August. Now, demonetisation "has created a trust deficit," said Kerala Finance Minister T.M. Thomas Isaac. "After this, I am not going to sit and compromise. They don't deserve it."
LEFT IN THE LURCH
Failure to break the deadlock could tip India into a fiscal crisis: The GST would need to come into effect by mid-September, when the old system of indirect taxation is due to lapse. The lingering uncertainty is worrying companies needing to understand financial implications of the new tax. "With so many vital details still missing, they are feeling left in the lurch," said Saloni Roy, a senior director at Deloitte. Modi's shock move last month to scrap 500 and 1,000 rupee notes was aimed at India's shadow economy. But the ensuing cash crunch has caused job losses, disrupted supply chains and slowed construction activity. With cash shortages showing no signs of abating, some economists are calling for emergency stimulus to cushion the economy against the impact of demonetisation.
Ambit Capital, a Mumbai brokerage, forecasts growth this fiscal year will be only half of the roughly 7 percent level many expect. The Reserve Bank of India has shaved its growth outlook by half a percentage point to 7.1 percent. To make up for their losses, states are seeking compensation and will press their case at a meeting in New Delhi on Thursday and Friday with Finance Minister Arun Jaitley. He has already agreed to cover states' revenue losses for five years after the GST's launch, but further concessions would narrow his room for manoeuvre in his annual budget presented in February. One top finance ministry official dismissed demands for compensation for demonetisation as unreasonable. But states are adamant. "They have brought it upon us," V. Narayanasamy, chief minister of Puducherry, told Reuters. "Now they must pay for our loss."
COUNTING COSTS
The quibble is not just over lost revenue. Some states worry about the social and political costs of demonetisation. Take Kerala, where credit cooperatives that farmers and retired government workers rely on cannot swap old bills or issue fresh notes. The state alleges this has encouraged commercial banks to scout for their deposits, sparking a "run" on them. Odhisa's chief minister has written to Modi, saying curbs imposed on primary agriculture societies were making it difficult for farmers to access crop loans and procurement payments. With the states smarting, they have hardened their stance on how to collect the new GST, which will have federal and state elements. They want sole control over businesses with annual turnover of Rs 15 million ($220,000) and so-called "dual control" over bigger firms. Jaitley opposes this, fearing tax collectors could end up at cross purposes. "We reached this far because states were willing to compromise," said Isaac, Kerala's finance minister, told Reuters. "If they want the GST, they will have to now concede to the states."
SOURCE: The Economic Times
Union finance minister Arun Jaitley and other senior officials from the ministry of finance received a number of suggestions from economists and other economic experts for consideration by the government for the forthcoming Union Budget 2017-18. At the Pre-Budget Consultative Meeting, Jaitley said India remains a bright point in the global economy. In his opening remarks at the meeting in New Delhi, Jaitley said the growth in US is weaker than anticipated earlier and Brexit has led to disturbing reactions in the markets. On the other hand, the Indian economy has made significant improvements as growth in India remains stable, and “we are in comfortable fiscal and debt situation”. He said that the present government has taken various decisive steps in last two and a half years which have helped the economy to get-out from inflationary spiral to stable prices. He said that to further boost the growth, the government has taken many steps such as passing of GST Bill, institutional reforms like UDAY, improved Ease of Doing Business, banking reforms and focus on infrastructure among others.
Some of the participating members suggested that this time Union Budget should not be a conventional Budget as these were not the normal times. Rather the government should make best use of the opportunity arising from demonetisation to present a Budget full of ‘out of box’ ideas. Members suggested that provisions should be made in the Budget to ensure that generation of black money is curbed. Some members felt that even after demonetisation, there is a strong case for boosting capital expenditure as public infrastructure in India is too low. Members expressed the need to widen the tax base but to reduce the tax slabs. Lower tax rates would increase compliance and reduce the generation of black money. Also many members expressed the disapproval of abolishing the Income Tax completely as this will create a huge gap between haves and have nots.
To push digitisation, it was suggested that a ceiling be fixed above which only digital mode/ cheque should be used and no cash transaction permitted above that limit. Also, the government can help by creating a single app for all banks and digital incentives under Section 80 C of Income Tax Act 1961 should be considered. At the same time, awareness about digitisation needs to be spread among masses. Keeping in view the low internet penetration in India, it was suggested that digitisation cannot be pushed beyond a point. Noticing that last time, government tried EET (Exempt Exempt Tax), some members felt that it would be better to try TEE (Tax Exempt Exempt) this time. With this, problem of implementation will be solved. And then, the cap of Rs 1 lakh can also be increased to Rs 5 lakh. This will result in increase in savings.
SOURCE: Fibre2fashion
Indian economy scored one over its former colonial masters when it reportedly took over United Kingdom’s economy for the first time in 150 years. Earlier, a Forbes report published on December 16 had revealed that India’s Gross Domestic Product (GDP) was set to take over the UK by 2020. But to quote Forbes, the surpass had been majorly accelerated by a nearly 20% decline in pound’s value in the last year or so. Earlier this year, India had taken over China as the world’s fastest growing economy. The International Monetary Fund in October had stated that India was likely to maintain its position for quite a while, with the GDP expected to rise by 7.6% through 2017. Meanwhile, the Brexit is expected to further dampen UK’s economic growth. This can work in India’s favour, according to IE as the gap between both economies grow further. The United Kingdon’s GDP of GBP 1.87 trillion in 2016 converts to $2.29 at the exchange rate of £ 0.81 per $1. Meanwhile, India GDP of Rs 153 trillion translates to $2.30 trillion at an exchange rate of Rs 66.6 per $. Moreover, this gap between the two countries’ GDP is estimated to grow as India grows at 6 to 8% per annum as compared to United KIngdom’s growth of 1 to 2% per annum until 2020, according to Forbes.
Although things might look bright and sunny at this angle, it has to be understood that India still remains miles behind when it comes to per-capita income. Although one of the major reasons for this is India’s massive population. The Forbes report further states the primary reason behind this development, giving due credits to the 1991 economic reform, commonly known as the globalisation of Indian markets by the then government, when Dr Manmohan Singh was the Finance MInistyer of the country. It has to be noted that before 1991, the Indian economy was shut within the country.
SOURCE: The Financial Express
The Indian rupee continued to trade lower at around 68 in the past week. It breached the 68-level, falling to a low of 68.06 on Tuesday. However, the currency managed to recover slightly to close at 67.91 on Wednesday. The global markets are nearing the year-end holiday season. Additionally, no major economic data release on the domestic front is slated for the coming week. So, any wild swings in the currency is less likely and the market may move into mute mode for the rest of the year. Foreign portfolio investors (FPIs) continued to sell Indian debt. After selling $3.1 billion in November, FPIs sold another $3.1 billion in Indian debt so far in December. If their selling spree continues, it may cap the upside in the rupee and keep it under pressure for further fall.
Dollar outlook
The dollar index (103.2) is facing resistance at around 103.65. But there is a strong support at around 102 which can limit the downside. As long as the index trades above 102, a break above 103.65 is possible in the coming days. Such a break can take the dollar index higher to 105.45 thereafter. It will also keep the overall bullish view intact for a test of 106 and 107, going forward. A strong dollar index suggests that the strength in the rupee could be limited and it may continue to trade under pressure. The near-term view for the dollar index will turn negative only if the index declines below 102. Next targets will be 101.7 and 101.35.
Rupee outlook
After opening with a gap-down following the US Federal Reserve meeting on December 14, the rupee continued to trade lower below 67.68 all through the week. However, the support at 68.1 is limiting the downside at the moment. A range-bound move between 67.65 and 68.1 is possible for some time. A breakout on either side of this range will then decide the next move for the rupee. A strong break below 68.1 can take the rupee lower to 68.35 initially. Further break below 68.35 will see the currency weakening to 68.80 and 68.85 in the short term. On the other hand, if the rupee manages to break above 67.65, it can strengthen to 67.40 or even test the key support at 67.3. Further break above 67.3 is less probable. However, such an event can take the rupee higher to 67.1 or 66.90 in the short term.
SOURCE: The Hindu Business Line
Apex body of the Pakistan textile sector, All Pakistan Textile Mills Association (APTMA) Punjab unit, convened an emergency general body meeting to press the case for uniform energy prices across the country and remove the disparity. APTMA members from Faisalabad and Multan chapters also partook in the deliberations through a video link. “There is a huge disparity of Rs 530 per million British thermal units (MMBTU), which can make the Punjab textile industry uncompetitive as against mills in other regions of the country,” Pakistan media reports quoted APTMA Punjab chairman Syed Ali Ahsan as saying at the meeting. The members however praised the Punjab chief minister Shahbaz Sharif for his support to end disparity in gas prices in Punjab, when compared with other states. According to APTMA, the disparity arose as a result of the Economic Coordination Committee’s (ECC) decision to reduce price of natural gas price for the general industry from Rs 600 per MMBTU to Rs 400 per MMBTU.
SOURCE: Fibre2fashion
Enhanced connectivity and banking channels between Pakistan and Iran are imperative to fully exploit the post-sanction opportunities and in this connection negotiations are in advance stage and positive news is expected within a month, said Asif Khan Durrani Pakistani Ambassador in Tehran. Addressing the business community of Faisalabad at Faisalabad Chamber of Commerce and Industry (FCCI) here on Wednesday he said both countries are enjoying good diplomatic relations but due to different reasons we could not fully exploit the economic potential, and added that Iran has surplus energy while Pakistan is an energy starved country.
Similarly, Iran is facing food shortage while Pakistan can export rice and other eatable commodities to it. He also commented on the non-availability of banking channels and said it is a major obstacle in the promotion of bilateral trade between the two countries. He said that being neighbour countries, we are always involved in cross border trade but it was through informal channels. He said that now the both countries are focusing on the promotion of formal trade and hopefully a positive breakthrough is expected very soon. He said that State Bank of Pakistan has issued SRO allowing commercial banks to open their branches in Iran but they are reluctant to do business in dollars with Iran. He said that Pakistan-Iran trade could transact their business deals in euro or Chinese yuan as an alternate currency of dollar. He further told that Trade Development Authority of Pakistan (TDAP) is organising “Aali Shaan Pakistan” Exhibition in Tehran from March 4 to7, 2017. It will play a major role in opening new avenues of trade between the two countries. He urged upon the textile exporters of Faisalabad to actively participate in this exhibition to enhance their share in textile export of Pakistan. He told that Pakistani denim is very popular in Iran and is being imported via Turkey. He also stressed the need for enhancing connectivity and said that because of the UN sanctions the air links between two countries are still very poor.
Similarly the cargo train could not be managed via Tuftan border only because of the non-availability of sufficient cargo load. Earlier in his address of welcome, FCCI Acting President Rana Sikandar Azam said that Iran is our neighbour and brotherly Islamic country. He said that after lifting sanctions Iran is making serious efforts to promote its trade and Pakistan being its neighbour will definitely be its first choice. He said that Pakistan and Iran have agreed to increase their bilateral trade up to five billion dollars during next five years and in this connection Commerce Minister Khuram Dastaghir is going to visit Tehran on December 28 and 29. During this visit, he will negotiate within concerned Iranian minister to decide the measures to increase our bilateral trade.
Rana Sikandar Azam said that the major hurdle in the promotion of bilateral trade between Pakistan and Iran is non-existence of banking channels. He said that Government of Pakistan has allowed the State Bank of Pakistan to negotiate on the important points which will ultimately help both countries to establish their banks in each other’s countries. He also expressed concern on tariff barriers and said that economic strength of Pakistan is textile but unluckily Iran has imposed high tariff rates on textile products due to which our textile exporters are unable to increase their exports to Iran. He thanked the Pakistani ambassador in Tehran and said that he is fully discharging his diplomatic responsibilities in addition to making additional efforts to promote trade between the two countries. During question answer session former president Zahid Aslam, Mian Farhan Latif, Muhammad Shafiq, Abid Hussain Malhi, and Secretary General FCCI Abid Masood raised interesting questions. Rana Ikram Ullah decorated executive members of LCCI Ali Hassam with FCCI pin while former president Mian Zahid Aslam presented FCCI shield to Asif Khan Durrani.
SOURCE: The Business Recorder
Vietnamese leaders stopped gushing about the 12-nation trade agreement and shifted focus to other deals. And yet TPP hopefuls haven't gone silent. 'I think TPP is another vehicle to bring benefits to both countries,' Nguyen Duy Binh, CEO of logistics firm Saigon Express Forwarding Corporation, said Tuesday at the Vietnam-U.S. Friendship Association's trade conference in Ho Chi Minh City.
Comments from him and other speakers showed that people are still talking about TPP, even if the Pacific pact could be on its last legs. Binh says his business would be fine without it, but thinks the U.S. could come back with a modified TPP. 'Not only Vietnam, but the whole world is thinking about the new administration in the U.S., and how it'll impact their economic outlook,' he said.
Diversifying
Vietnam shouldn't be relying on one trade option anyway, said Pham Phu Ngoc Trai, chairman of Global Integration Business Consultants. The Southeast Asian country has long made a point of diversifying its foreign policy so as to do business with a variety of nations. Some saw TPP as a possible way for members to choose the U.S. over China, which is not a TPP member. If Hanoi made that choice, it didn't seem to pan out, as Washington pulled back from the trade deal. Trai said Vietnam has other concerns. TPP would have been nice, but the country needs to figure out how to mitigate its trade imbalances with China, India and Japan, he said. Still, Mary Tarnowka, U.S. consul general in Ho Chi Minh City, argued that the economic link between her country and Vietnam 'has never been stronger.'
American shoppers scoop up more Vietnamese goods than do any other citizens, while Vietnam is importing U.S. goods at a faster rate than any other country. That's a far cry from the 1990s, when a U.S. postwar embargo was still undermining Vietnam's economy. Washington did away with the embargo in 1994 and signed a trade agreement with Hanoi in 2001. But even then, Vietnam was not out of the woods, according to Le Quoc An, head of the advisory board at the Vietnam Textile and Apparel Association. He said the U.S. threw up garment quotas soon thereafter, responding to the influx of shipments from Vietnam. 'The U.S.-Vietnam trade relationship has gone through a lot of turbulence,' An said. Today the waters are calmer, as seen from both sides of the Pacific, with quotas and tariffs coming down. But Vietnam is not as sure about the trade horizon as it wants to be, at least for now while the U.S. undergoes a White House transition.
SOURCE: The Malaysia Sun
Pakistan's denim export to United States witnessed decline by 3.3 percent in 2016 also exports to European Union and Scandinavia countries has not increased due to high cost of manufacturing . It is becoming harder for exporter to compete with other countries that have cheap cost of production and government levies. Chinese provide free electricity for first three years to new units while India was also provides incentives, according to leading exporter they cannot compete with until government provided incentives to them. A prominent denim manufacturer and exporter, Dr Mirza Ikhtiar Baig said that a number of countries were providing zero-rated facility to their exporters, but in Pakistan tax agencies were charging a number of taxes such as export development surcharge and withholding tax which has lead to high in cost of production.
Pakistan was the second largest exporter of denim in the world after China. The ICAC said that the world trade in denim fabric averaged 670,000 tonnes per year. Other major exporters of denim were Turkey, India, and the United States (US). Export of cotton denim fabrics from Pakistan stood at around 51 million square meters worth Rs 39 billion in 2016. Turkish denim exports increased from 3.9 million meters to 46 million meters in five years. Chinese denim exports to United States grew up from 6.9 million meters to 87 million meters in the same period. According to statistics of US office of textiles and apparels (OTEXA) it showed a nine percent rise in denim exports to the US in 2015-16. Pakistan’s customers for denim are turning back and opting for other countries due to which the denim domestic manufacturers were facing hard pricing pressures due to capacity additions and cancellation of a few orders.
Denim is considered as the staple garment of the world as all of the people irrespective of their location, age, gender and status own a pair of jeans or two. Europe represents the largest market worldwide. The market situation does not allow the global players in the denim to increase consumer prices and therefore they have to absorb the price increases from denim fabric producers worldwide. Global market for denim jeans is forecast to reach $64.2 billion by 2020, driven by increasing disposable incomes.
SOURCE: Yarns&Fibers
Chinese investors visiting from the Shenzhen province have shown deep interest in Pakistan’s textile sector including the desire to enter into deals with businessmen for the sale of goods and purchase of textile raw material. Pakistan’s textile sector had a great opportunity to capture a good share in the international market, the Chinese said. Pakistani counterparts invited them to join them for value addition in the textile sector in Karachi. “Pakistan is the fourth largest cotton producer with a vast agricultural base and cheap labour,” said Textile Associations Chairman and Patron-in-Chief of SITE Association of Industry (SAI) Muhammad Zubair Motiwala and SAI President Assad Nisar Barkhurdaria during an interactive session with the Chinese delegates at the SAI on Wednesday.
China Department of Commerce’s Deputy Director Zhang Shaoyun led the delegation, while China’s Consul Attache for Economics in Karachi Miranda Lee was also present. The delegates representing various Chinese textile companies exchanged information with their Pakistani counterparts and urged the need for further engagement aimed at promoting strong collaboration and joint ventures for mutual benefit. Both the sides presented brief accounts of their businesses and identified the areas of engagement including import and export of textile items and raw material and avenues of joint ventures for expansion and upgrading of Pakistan’s textile industry. Shaoyun said after some research and exchange of information both the countries would find opportunities for joint ventures, especially in the textile sector. “Some Chinese companies are interested in selling goods, while some want to purchase raw material and some are interested in joint ventures in the future. All this will make China-Pakistan relationship further strong,” he said. Chinese companies were already carrying out successful businesses in Pakistan and had invested a lot, especially in the construction sector, he said. Motiwala invited the Chinese investors to enter into joint ventures with existing textile units in SITE, which had potential capacity for expansion and value addition.
SOURCE: The Tribune
Prime Minister Nawaz Sharif on Wednesday held bilateral talks with his Bosnian counterpart Denis Zvizdic in Sarajevo, said the Press Information Department in a statement. “Pakistan and Bosnia Herzegovina have agreed to further strengthen their bilateral cooperation in trade, agriculture, textile, education and defence sectors,” said the statement. Addressing a joint press conference, Prime Minister Nawaz said the two sides had a most productive and detailed round of talks and reviewed the entire spectrum of their bilateral ties. “The two countries have agreed to strengthen their collaboration in investment and culture,” said the prime minister. He also invited Bosnian entrepreneurs to invest in Pakistan. “Pakistan's economy has shown great improvement in several years and the growth rate has gone up. “Bosnia has a vibrant textile industry and a dynamic agriculture sector and Pakistan would like to seek its cooperation in these sectors,” said the prime minister.
SOURCE: The Nation
A strong Vietnamese dong and sluggish demand from key markets have dragged on textile exports this year. Vietnam’s exports of textiles and garments are projected to increase by 7 percent this year to $29 billion, according to Vinatex, the country’s top textiles manufacturer, far below the trade ministry’s previously-targeted $31 billion and the lowest growth in the last decade. Customs statistics show that Vietnamese textiles and garment exports hit about $21.56 billion from January to November, up 4.6 percent from the same period last year.
Vietnam, the world’s fifth largest garment exporter, has maintained double-digit growth, ranging on average from 10 percent to 36 percent, since 2001 when the country earned $2.2 billion from exporting textiles and garments. The investment ministry, in a recent report, attributed the downturn to sluggish demand from key markets, including the U.S., the European Union and Japan. Customs figures show that from January to November this year, Vietnam’s textiles and garment shipments to the U.S., which accounted for 47.9 percent of the total during the period, edged up 4.7 percent from a year ago to about $10.33 billion. Besides, the State Bank of Vietnam has so far this year managed to keep the dong from weakening against other major currencies, said clothing exporters, adding that a stronger dong was the final straw that broke the camel’s back for their businesses.
Garment exporters are also faced with increasingly intense competition from outsourcing hubs Cambodia and Bangladesh, which are currently subject to import tariff breaks in the U.S. market. Market access for Vietnam’s clothing in the U.S. is limited by an average tariff of about 11.1 percent, with tariffs on some textile and apparel products nearing 30 percent. About 85 percent of Vietnamese enterprises in the textile industry are focused on labor-intensive cutting and sewing, making the country an outsourcing hub for foreign fashion companies, said Le Tien Truong, chief executive of Vinatex. However, foreign investors are eying emerging hubs such as Myanmar, Bangladesh and Sri Lanka where labor costs are lower than in Vietnam.
Vietnam has four regional minimum wage brackets currently ranging from VND2.4 million to 3.5 million (from $105 to $154). The regional minimum wage has increased by about 12-15 percent on a yearly basis between 2014 and 2016, and is forecast to go up by 7.3 percent next year. Vietnam’s exports rose an estimated 6.7 percent on-year in the first nine months to $128 billion, well below the 10 percent growth target set by the government. The economy, widely seen as among the most resilient in a turbulent Asia, expanded by 5.92 percent from January to September, much lower than 6.53 percent a year ago, said the General Statistics Office. The annual growth forecast for this year has been lowered to between 6.2 and 6.5 percent from the 6.7 percent previously targeted, according to Prime Minister Nguyen Xuan Phuc.
SOURCE: The VN Express
News reports from Bangladesh suggest 55 RMG factory owners have closed their facilities after a series of strikes over wages. The Bangladesh Garment Manufacturers and Exporters Association said the factories had been closed in accordance with 13 (1) provision of Bangladesh Labour Law, 2006. According to the provision, an employer may, in the event of what is deemed to be an illegal strike, close down their establishment. Workers participating in such a strike are not paid any wages for such closure. In response to the closure of the 55 factories, employers' groups in Bangladesh are - somewhat bizarrely - claiming there is a national and international conspiracy behind the workers' movement and that the factory owners had little choice but to close their units. However, labour rights groups told reporters the factories were being heavy handed and that the imposition of Section 13(1) of the labour law would not bring any positive result. The somewhat draconian measures being taken by the factories – and their support by the country's leading trade body – offer evidence that Bangladesh has some way to go if its labour rights laws are to come into line with globally accepted international standards such as the International Labour Organisation conventions.
Indeed, in June this year the ILO expressed in the strongest possible terms its frustration at the continued lack of progress being made by the Bangladeshi government in ensuring proper worker rights in its ready-made-garment (RMG) sector. The ILO Committee on Standards voiced particular concerns about the government's failure to ensure workers' rights under ILO Convention 87 which relates to freedom of association and the right to organise. It also raised questions with regards to why trade unions are completely banned in Bangladesh's textile export processing zones, in a report presented at the recent International Labour Conference in Geneva. The report noted that the ILO has in recent years urged the Bangladeshi Government to undertake amendments to the Bangladesh Labour Act (BLA) in order to address issues in relation to freedom of association and collective bargaining; ensure that the law governing export processing zones (EPZs) allows for full freedom of association, including to form trade unions; and to investigate as "a matter of urgency" all acts of anti-union discrimination, ensuring the reinstatement of worker representatives who have been illegally dismissed.
SOURCE: The Ecotextile
BRAC University (BRACU) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have signed an agreement to support the collection of "credible, comprehensive and accurate" data about the country's ready-made garment (RMG) industry. The two organisations have also agreed to disclose the information to the public in the form of an interactive online map, as well as to crowd-source data in order to keep the figures up to date. This is a massive step for the Bangladeshi garment industry, particularly given that there have been notable disagreements about the actual size and make-up of the sector in recent years. The digital mapping programme will be implemented by the Centre for Entrepreneurship Development (CED) and BRAC University, and coordinated by BRAC USA. It is being funded by the C&A Foundation and further donors are expected to join.
Said a note from the C&A Foundation: "The objective of the mapping is to provide accurate, credible and current RMG factory information to industry stakeholders in order to enable greater accountability for working conditions and enhance confidence in the ability of the sector to contribute to equitable development in Bangladesh. Without this kind of industry-wide data collection, the challenges of the industry will surely persist." The programme will map RMG factories across all garment-producing districts in Bangladesh, providing a detailed database of factories, including subcontractors, on an interactive, digital map. In addition to factory names and locations, the map will also feature information such as numbers of workers, product type, export country, certifications, and brand customers. The program will be guided by a multi-stakeholder project advisory committee, comprising of representatives of workers, NGOs, donors, employers, and industry associations, among others. Siddiqur Rahman, Ppresident, BGMEA, and professor Rahim B. Talukdar, adviser, Centre for Entrepreneur Development (CED), BRAC University inked the agreement on behalf of their respective organsations while Shantanu Singh, unit leader, general manager, C&A Sourcing, Bangladesh was present as the representative of the C&A Foundation.
SOURCE: The Ecotextile
Business unions of Belarus, Estonia and Malta called for lifting the restrictions on the Belarusian textile export to the EU, BelTA learned from the press service of the Kuniavsky Business Union of Entrepreneurs and Employers. The address to the European Parliament was signed by Kersty Kracht, President of the EVEA Estonian Association of Small and Medium Enterprises, Noel Gauci, Member of the Executive Council GRTU – Malta Chamber of SMEs, and Zhanna Tarasevich, Director of the Belarusian Kuniavsky Business Union of Entrepreneurs and Employers. The address reads that despite the removal of almost all EU sanctions against Belarus, the restrictions on Belarusian textiles still remain in the form of quotas and limits on one-off delivery. In particular, the limit on one-off delivery (5,000 kg) applies to 11 items of textile products such as suits, shirts, bed linen. The quotas apply to 22 positions, including synthetic, wool and wool blended fabrics and yarns. “The restrictions hamper the trade with the EU. For example, limit on the volume of one-off delivery has a negative impact on the logistics, increases the expenses and administrative costs of the parties to transactions,” the press service informed.
SOURCE: The Belarus News
Teijin Frontier, the Teijin Group’s fibre products converting company, has developed an indigo-like synthetic fibre, named INDI5, in collaboration with Daiichi Gousen and Mitsuke Senkou, Japanese long-established textile mills of heavy-weight fabrics and dyeing. INDI5 is a lightweight indigo-like fabric that has been designed to offer comfort, easy care and fade resistance. The colourfast indigo-like fabric combines Teijin Frontier’s polymer-modification technology, Daiichi Gousen’s weaving technology and Mitsuke Senkou’s dyeing technology.
Teijin Frontier is now exploring marketing opportunities for INDI5 available in four colour variations, including the ladies wear, outerwear and uniform segments.
Revitalising domestic operations
Teijin Frontier says it has been working with these companies since 2012 to help them revitalise their domestic operations. The new fibre was developed in Mitsuke, Niigata Prefecture, one of Teijin Frontier’s main production regions for heavy-weight fabrics and well known as indigo dyeing. INDI5 polyester fibre is made with a highly dye- and colour-receptive polymer that bleeds like indigo-dyed cotton. It is said to offer natural texture, and it can be partially bleached with a special process for colour variation. Special weaving technology also helps achieve denim-like texture.
SOURCE: The Innovation in Textiles
An innovative Swedish company will use next year's ISPO show in Munich to unveil a new sustainable, colourfast method to dye synthetic fibres in pants, jackets, and backpacks, without the use of water and using significantly less chemicals than in the conventional dyeing process. We are SpinDye specialises in dyes for synthetic, woven, knitted, or crocheted fibres. The company uses a process in which recycled plastic is melted down and the desired dye pigment is then added to the undyed material. After that, yarn is produced from it in the desired strength, with clients and manufacturers then able to further process the yarn as required. By adding the colour pigment to the synthetic raw material early on in the process – when it's melted and spun into fibres and before it becomes thread or yarn – We are SpinDye says its method completely avoids water. The method makes the color pigment an integral part of the material from scratch – in theory leading to greater durability and making it less sensitive to fading and wear.
We are SpinDye says its technology is applicable to all synthetic materials, such as polyester or nylon, but also – significantly - for rayon. The company told ISP that a combination of synthetic fibres and unbleached wool can be used, with no limits for manufacturers in further processing. The fabrics can, for example, be coated or equipped with a membrane. In the conventional dyeing process, 100 to 150 litres of water are required to dye a kilogram of textiles. Other alternatives to this excessive use of water include the work of Dyecoo, the Dutch tech business whose machines substitute carbon dioxide (CO₂) for water in the dyeing process. ISPO Munich will take place 5-8 February 2017. Every year, more than 2,600 international exhibitors present their latest products from the segments of Outdoor, Ski, Action, Performance Sports, Textrends, Health & Fitness and Sourcing at ISPO MUNICH to over 80,000 visitors from 110 countries.
SOURCE: The EcoTextile
