INTERNATIONAL
Additional Secretary and Textile Commissioner Dr Kavita Gupta visited Brandix India Apparel City located at Atchutapuram near city on Thursday. The Commissioner toured Brandix Park and termed it as a great success story and an example for other textile parks to follow. She appreciated the world class infrastructure instituted to facilitate the textile and apparel exports. She observed the state-of-the-art water treatment and effluent treatment plants inside the park and appreciated the processes being followed to support the manufacturing units and also their dedication in complying with the international standards.
On visiting the fabric and garment manufacturing units inside the park, Dr Kavita Gupta was overwhelmed at the organised assembly line production processes and the design and quality of the finished products. She appreciated Brandix for their excellent training in manufacturing products for international brands and labels. She was pleased to learn that Brandix not only the largest textile park in the country, but also the largest employer of women workforce of over 15,000 at a single location. She enquired about all the units located in Brandix Park and recommended the management to further expand and develop integrated value chain in all segments, including spinning, weaving, apparel, and technical textiles and garmenting. She suggested Brandix to develop its own brands and create a place for it in the textile and apparel sector in the international market.
SOURCE: The Hans India
Union Textile Ministry has announced unique terms and conditions for procuring fully pressed cotton bales from Cotton Corporation of India (CCI) for the benefit of MSME textile units. A total of 26 textile association and almost the entire cotton based textile industry in the region has thanked the Ministry for the new scheme. The new terms and conditions facilitates the registered MSME textile units to procure cotton by paying only 10 percent deposit money as against 20 percent, which was applicable only for the sale quantity of 30,000 bales and above, said Chairman of Southern India Mills' Association (SIMA), Senthilkumar in a release.
Earlier there was a difference in the free period, ranging from 30 to 75 days and 75 days free period was available for procurement of 15,000 bales and above, depriving MSME textile the benefit. The free period now has been made uniform and fixed at 45 days, which would again help actual users and the MSME units. The deposit money upto 2,999 bales is only 15 percent, which would greatly help the units that are starving for working capital funds in the post-demonetization regime, Senthikumar said. Senthilkumar said that the industry requested CCI to opt for coastal movement of bales between Gujarat and Tamil Nadu that would again yield considerable savings for mills. SIMA has finalized the rates with a company for the entire cotton season 2016-17, which is cheaper by 10 to 25 per cent when compared to lorry freight.
SOURCE: Yarns&Fibers
Reliance Industries Limited (RIL), one of the largest private sector companies in India, has successfully commissioned the first phase of its new paraxylene (PX) plant at Jamnagar, Gujarat. The 2.2 million metric tonnes per annum (MMTPA) capacity plant is built with energy efficient and environment friendly crystallisation technology from BP. With the commissioning of this plant, RIL’s PX capacity will more than double from 2 MMTPA to 4.2 MMTPA. On commissioning of entire PX capacity, Reliance will be the world’s second largest PX producer with 9 per cent of global PX capacity and 11 per cent share of global production.
PX is the building block for the entire polyester chain. The new capacity will complete the integration within Reliance’s polyester value chain, leading to improved margins and also strengthen its position in polyester industry globally. “Commissioning of the new PX plant marks beginning of the culmination of a series of projects including the refinery off-gas cracker, ethane import project and petcoke gasification. These projects are part of the largest contemporary investment, in excess of Rs. 100,000 crore, in refining and petrochemicals sector anywhere in the world,” said Mukesh D. Ambani, chairman and managing director, RIL. “Our projects are on schedule and at an advanced stage of mechanical completion. The new PX capacity takes us a step closer to being among the top 10 petrochemical players globally. This is a fitting tribute to our visionary founder chairman Dhirubhai H. Ambani,” added Ambani. The new PX capacity will add value to the output from refineries and improve the profitability of the Jamnagar complex.
SOURCE: Fibre2fashion
The Textile Association (India), Mumbai Unit organized International Textile Conference on “Make in India – Global Vision of Indian Textile Industry” on 1st & 2nd December 2016 at Hotel The Lalit, Mumbai. The Conference received overwhelming response. Mr. C. Bose, President, TAI, Mumbai Unit welcomed the Chief Guest, Mr. Ujjwal Uke, IAS, Principal Secretary (Textiles), Government of Maharashtra and Key Note Speaker, Mr. R. D. Udeshi, President-Polyester Chain, Reliance Industries Limited. He also welcomed the Awardees, Speakers, Press, Media and delegates.
Mr. V. C. Gupte Chairman, TAI, Mumbai Unit and Convener of the Conference while giving the highlights said that “Make in India” campaign aims to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure in India. The textile sector is one of major thrust areas planned in this mission providing growth drivers, FDI, investment and employment opportunities. Mr. Gupte said TAI, Mumbai Unit thought of bringing national as well as international thought makers to give their views for the success of this “Make in India” campaign.
Mr. R. D. Udeshi in his Key Note Address highlighted the comparative advantages and competitive strengths of India as fast emerging economy. He pointed out fibre base, modern technologies under the TUFs scheme and thrust on technical textiles. He remarked that the industries should avail of the opportunities to the best advantages to excel in the international competitive environment.
The Textile Association (India), Mumbai Unit has set a precedent of felicitating the textile professionals for their outstanding contribution in the field of textile industry. In this Conference, the TAI, Mumbai Unit felicitated Mr. Jayantibhai Jariwala, Chairman & Managing Director, Colourtex Industries Pvt. Ltd. and Mr. G. T. Dembla, Chairman, Precision Rubber Industries Pvt. Ltd. with “The Lifetime Achievement Awards”. Mr. Ujjwal Uke, the Chief Guest in his inaugural address, emphasized that industry and government should work hand in hand to achieve the super ordinate goals of the “Make in India”. He emphasised on positive vision by both industries and individual for the future growth of the country. The theme of the first session was “Make in India – Textile Perspective”. In this session first paper was presented by Mr. R. B. Gupte, Director, MSME Development Institute, Ministry of MSME, Government of India on “Make in India – An approach to Global Manufacturing Hub”. Dr. A. Raj, Senior Advisor, ZED, QUALITY COUNCIL OF INDIA presented the paper on “Journey towards Challenges –Best Practices & ZED Certification”. Dr. Swapna Mishra, Director, Textile Sector Skill Council (TSC) made the presentation on “Role of Textile Sector Skill Council to support Make in India mission through Skilling in textile”.
The second session was on “Innovations in Manufacturing Technologies” were presented by eminent speakers from India and abroad. Mr. G. Elango, General Manager, Textile Engineering-Processing, A.T.E. Enterprises Pvt. Ltd. presented the paper on “Eco Line” - Denim Finishing – A. Monforts, Germany”. Mr. Horst Ros, Managing Director Sales, J. Zimmer, Austria presented the paper on “Printing & Coating competence out of one hand”. Then Mr. Bhushan Zarapkar, Director-Operations, ATE Envirotech Pvt. Ltd. presented the paper on “Advanced anaerobic technology for textile industry wastewaters”. Mr. Elliyas Mohammed, Business Development Manager (Polyester Dyes), Colourtex Industries Pvt. Ltd. made the presentation on” Dyeing of Polyester fabrics using Super Critical Fluid (Carbon Dioxide) - Waterless Dyeing “. Mr. Manohar Samuel, President (Marketing & Business Development), Birla Cellulose, Grasim Industries Ltd. presented the paper on “Make in India : Integrated Textile Park : Man Made Cellulose”. Mr. Parthiv Shah (Business Development Head- Global Sales), Amazon Global Selling spoke on “Enabling Manufacturers and Exporters to Sell Globally with Amazon”.
The Third Session was on “Supply & Demand Chain Management”. Mr. Sanjay Soneja, Head – PSF business, Reliance Industries Limited presented the paper on “Polyester: Supporting India’s Credentials as a Textile Super-power”. Mr. Alok Kumar, Assistant Director (Insp.), Central Silk Board, Ministry of Textiles Govt. of India expressed his views on “Perspectives of Indian Silk”. Ms. Deepa Chandran, General Manager - Head of Buying and Merchandising for Brand People, Aditya Birla Fashion and Retail Limited spoke on “Linen Fibre – Fibre based Textile”.
The theme of the fourth Session was “Industry Perceptions of Make in India”. Mr. Varun Vaid, Associate Director, Wazir Advisors Pvt. Ltd. presented the paper on “Global Textile Industry – A Peek in to future”. Mr. Sumit Gupta, Deputy Director Standards Development & Quality Assurance, Global Organic Textile Standard (GOTS) expressed his views on “Making Organic Textiles in India - Benefits to India and way forward”. Mr. Prasad Pant, CEO, NimkarTek Technical Services P. Ltd. presented paper on “Global developments in sustainability and their impact on Make in India”. Mr. Manoj Purohit, Product Manager - Heating Division and Mr. V. M. Desai, R&D Dept., Water & Waste Treatment, Thermax Limited made the presentation on “Revolutionary technique of Thermic Fluid Heater and Textile Effluent treatment plant”.
The theme of the last session was “New Trends in Textiles Retailing & other”. Mr. Rajeev Kewlani, Antar Advisors spoke on “How DNA technology is playing a critical role in ascertaining the Textile Supply chain”. Mr. Umesh Prasad, Director, U. V. Textile Machines Pvt. Ltd. / Automha India gave the importance of “Automatic Transportation & Warehousing / Storage solutions for Textiles”. Mr. R. Girish, IAS, Commissioner for Textile Development & Director Handlooms & Textiles, Govt. of Karnataka gave the highlights on “State Policies of Karnataka Government - Nuthana Javali Neethi (2013-18)”. Mr. Hasmukh Jain, Vice President-Marketing, Industrial Boiler Ltd. presented the paper on “The Pressure Reducing Turbine” All the Papers received very high response as well as interactions from the participants. Mr. A. V. Mantri, Hon. Secretary, TAI, Mumbai Unit proposed a vote of the thanks. The Conference was a grand success and was attended by 350 participants.
SOURCE: Yarns&Fibers
To prevent closure of the dyeing industry in Tirupur that threatened to hit the garment sector in the region, the government has sanctioned Rs. 200 crore to dyeing units. The units are on the verge of closure due to severe financial crisis on account of huge investments in the “first-ever” zero liquid discharge (ZLD) projects in the country. Tirupur, a hub of the textile processing and knitting industry in Tamil Nadu, provides employment to over five lakh persons and contributes 22 per cent to the country’s total garment exports.
Effluent treatment
Taking cognisance of the problem of the dyeing industry in Tirupur and on the recommendation of the Ministry of Textiles, the Finance Ministry has sanctioned Rs. 200 crore to the Tamil Nadu government for the 18 common effluent treatment plants (CETPs) as an interest-free loan to be converted into grant, based on their performance, an official release said.
Capacity utilisation
“The move will help ailing CETPs and 450 dyeing units to recover from the financial crisis and help them to a complete the project to achieve 100 per cent capacity utilisation,” the release.
SOURCE: The Hindu Business Line
Spinning mills in the public sector of Kerala will soon be operational as Rs 15 crore has been allocated to procure raw material and carry out repair works for revitalising the textile sector of the state. Multiple factors such as pending power bills, lack of capital, raw material and statutory payments affected the functioning of spinning mills. Kerala’s industries minister AC Moideen made the announcement at a meeting of the trade union leaders. He also listed other reasons like a hike in the price of yarns and high capital investments required for importing latest equipment and machinery as reasons for the stagnation of the state’s textile industry. Moideen also said that an expert committee will be formed to analyse the problems of the textile industry and come up with suggestions and recommendations to revive it in March next year.
SOURCE: Fibre2fashion
All the government employees must wear Handloom clothes at least once a week suggested District Collector Dr A Sharath during the inauguration of ‘Handloom Cloth Mela’ organised by the Telangana State Handloom Workers Helping Society for overnment employees here at IMA hall on Thursday. Speaking on the occasion, the district Collector Dr A Sharath said that everyone must get habituated of using handloom clothes instead of getting attracted towards the Western Clothing. He also said, “Using of Handloom clothes would be highly helpful to many weaver families who are dependent on Textile industry and wearing handloom clothes is also for skin. Government employees wearing handloom clothes once a week will boost the textile industry.” “Using of handloom clothes, manufactured in our region, will enable people of other regions to appreciate the importance of these clothes,” advised the collector.
“All the government employees must utilise the ‘Handloom Lakshmi Scheme’ which is highly beneficial. Receiving the orders from the government the ‘Handloom Cloth Mela’ is organised first in our district,” said the collector.The Project Director of District Rural Develpment Agency Aruna Sri, District Medical Officer Janardhan, the Additional Director of Hanlooms M Venkatesham and APCO senior Manager A Venkatesham were present along with other officials.
SOURCE: The Hans India
Over 6,000 retailers are expected to take part in India’s first Uniform and Garment Manufacturers' Exhibition to be held in Solapur, Maharashtra for three days from January 5 to 7. The fair is organised by Sri Solapur Readymade Kapad Utpadak Sangh in association with the Maharashtra Textile Ministry and Mafatlal Fabrics. Solapur is gaining significance for garment trade, hence to help its promotion and expansion such international level Uniform & Garment Exhibition is being held, said the organisers in a statement. The uniform manufacturing industry in India has an aggregate volume of Rs.18,000 crore, out of which Rs.10,000 crore is met by manufacturing industry and uniform form the rest. Solapur is witnessing higher demand for school uniforms, kids garments, gents and ladies dresses and hence this industry is witnessing good progress in the region. The purpose of exhibition is to invite national and international garment manufacturers to invest in this region for garment industry, the organiser said.
SOURCE: The Hindu
Textiles Ministry said it took several measures in 2016 with an aim to boost job creation, investment, production and exports. Listing the initiatives which the Ministry has taken this year, it said a special package was rolled out in June to support the apparel sector. "The year 2016 witnessed the Ministry of Textiles taking several initiatives for the development of the textiles sector, with a focus on boosting employment generation, investment, production and export promotion," it said.
Given the potential of the made-ups sector, the government earlier this month approved a special package to create large scale direct and indirect employment of up to 11 lakh over the next three years. Further, it said that to meet the needs of the industry for a skilled workforce and thereby support its competitiveness, the Integrated Skill Development Scheme has so far imparted training to a total of 8.49 lakh people, out of which 7.50 lakh have been assessed and 5.79 lakh placed.
SOURCE: The Economic Times
The existing powerlooms in Sircilla district of Telangana has to be modernised so as to meet the growing demand for value-added fabric, said additional secretary (Textiles), Pushpa Subrahmanyam. The production of value-added fabric can be increased by developing the textile park in Sircilla by utilising the schemes implemented by the Central government. The Centre is in the process of modernising 30,000 powerlooms in the district, while completing work in about 5,500 powerlooms, said Subrahmanyam during the inspection of textile park in Sircilla. Empty plots in the textile parks can be utilised by establishing new units, said Subrahmanyam, who was accompanied by state textiles and handlooms director Shailaja Ramayyar and Rajanna Sircilla district collector D Krishna Bhaskar.
Subrahmanyam laid emphasis on establishment of a yarn bank in Sircilla and improving dyeing techniques to increase overall production, while interacting with the representatives of the textiles and handloom units. There is no dearth of finance and the Central government is also implementing various schemes for the development of textile and jute industry in the country. These funds will help in installing and adoption of new technology in powerlooms to get improved results. The weavers will also be trained to get accustomed to the new techniques of producing fabric. The Centre has also sought support of Telangana government in the framing of a policy that focuses on mulling of power subsidy for textiles industries across the country. Subrahmanyam also helped textile workers in Sircilla open bank accounts.
SOURCE: Fibre2fashion
Though foreign portfolio investors sold domestic securities with rising US Treasury yields post Donald Trump's election as US President, improving exports has seen the Indian rupee weather the demonetisation roil to outperform other emerging market currencies in a yearend fillip. Between November 8 and now, the rupee has gained significantly against top 20 emerging market currencies. Only three currencies -Russian Ruble, Peruvian Sol and Hong Kong dollar-have done better than the rupee. Through the calendar year, the rupee was one of the worst performing currencies among the 23 EM currencies.
India's exports increased 2.3% to US$ 20.01 billion in November. “Rupee has weakened to the dollar at a rate much less than what other EM currencies lost value to the greenback,“ said Anindya Banerjee, currency analyst, Kotak Securities. “This has reflected in the rupee's strength against other currencies. Rupee's fall to the dollar was not sharper during the period (2%). “ Between early November and mid-December RBI's forex reserves shrank by about $7 billion suggesting it may have sold enough dollars to stem the local unit's loss to the greenback. “Importers' payments have been mostly delayed in the wake of demonetisation (that triggered temporary slowdown in the economy)," said K N Dey ,a senior forex consultant. “Also, India's macro fundamentals are seen relatively better than its EM peers, which in turn, has played a role to the rupee's gain."
India's gold imports have shown some signs of contraction, helping shore up the rupee's exchange value because most gold in the country is imported.Between April-November 2016 India imported gold worth $15.72 billion, down 30.5% from $22.62 billion in the same period a year ago. “A drop in gold imports has contributed...," said Saugata Bhattacharya, chief economist at Axis BankBSE 1.17 %. “The rupee might moderately depreciate against the dollar in 2017, given our view on US rate hikes, a strengthening dollar and inflation differentials."
ET VIEW
Develop Alternative Assets
Stepped-up growth across sectors would strengthen the rupee.The yellow metal has been losing price lustre of late, and hence the considerable drop in gold imports. Going forward, we need financial development and liquidity so that, say, securities like stocks and bonds can verily replace gold as store of value.
SOURCE: The Economic Times
Flipkart, one of India’s biggest online retailers is revamping and relaunching its core fashion category, which will now sport a more glamorous and vibrant look. The online retailer has appointed a team of 100 style consultants, who will help curate and design clothing based on searches made by shoppers on the Flipkart ecommerce website. A leading daily quoted Flipkart as saying that it will tie up with various brands, celebrities, and Bollywood and Hollywood movies, as the online retailer is of the opinion that in case of fashion, customers get influenced by celebrities. According to Rishi Vasudev, vice-president for fashion retail at Flipkart, their data suggests that fashion shoppers are mainly influenced mainly by celebrities, Bollywood, Hollywood, etc and so the revamped section will see the selection presented in this form.
SOURCE: Fibre2fashion
The shipping ministry wants Kolkata Port Trust (KoPT), one of the country’s 12 major ports, to venture into road construction, though this won’t have any impact on the port’s maritime business or cargo handling. The ministry has asked the port to undertake repairs and maintenance of 35-km road covering six stretches since the port is owner of the land. A KoPT official said these are the busiest stretches of Kolkata and more than port-bound vehicles, passenger and private vehicles ply on these roads. While the port had suggested a cost-sharing model on the construction on maintenance of roads, the onus for repairs and maintenance is coming solely on the Kolkata Port.
KoPT deputy chairman S Balaji Arunkumar said the ministry has actually proposed to reconstruct the roads and hand them over to the state for maintenance. But the issue of maintenance is stuck in a Kolkata municipal development area tax dispute. “There has been meetings at the chief secretary level and we hope the dispute will be sorted out shortly,” Arunkumar said, adding that the port has a pending tax bill of R26 crore, of which the port has already paid R21 crore. But the KMDA authorities claim that the port’s dues amount to R800 crore which has to be settled first. A port official who didn’t wish to be named said while the KMDA has claimed this amount, they have not raised any tax invoice. A tax invoice should be created when requesting payment from an external organisation for services provided by a department within its business centre or division.
According to tax expert Ashok Ghosh, KoPT is not registered as an assessee of the KMDA. For this they have not raised any tax invoice. Properties of KoPT fall within the Customs Act and Sea Act and both the Acts are outside the purview of KMDA. However, the KoPT owns 4,000 acre land which makes it the biggest land owner among all the country’s major ports, and it earns around R45 crore per month as lease rents. “We are working out our tenancy details and trying to recover the dues from them. There are 1,200 court cases pending with the tenants and we have also given an option for out of court settlement. With the tenancy dispute settled, our revenue from land, excluding taxes, should go up by 40%,” Arunkumar said.
SOURCE: The Financial Express
When one looks back at 2016, there are stories that get etched in the mind, and just like the Billboard chart of top 10, there can be one drawn up for major economic upheavals in the last almost 365 days. The year was full of surprises, and it was not just a case of Bob Dylan getting the Nobel Prize in Literature. If words like “Mama, wipe the blood off of my face, I can’t see through it anymore, I need someone to talk to in a new hiding place, Feel like I’m looking at heaven’s door” are literature, then Donald Trump is also pro-free trade. The countdown begins from 10, where the Yellen-Draghi combination kept the markets guessing almost by habit—the former for increasing rates and the latter to continue doing everything to ensure liquidity is there. We know both the objectives will be met, but then the market needs something to drive them forward, or rather back. Right?
At the ninth spot was the eternal flame of GST which almost appeared to be seeing the cliched light of the day. The interesting part of any crucial Bill in India is that the Opposition opposes it vociferously when on the other side, but fights hard for it when in power. Nobody knew what irked the Opposition, but the Bill got passed and the rates have been agreed on. It is a typical Indian compromise with several exemptions and an array of rates that makes everyone happy. But much like the ‘bad penny’, it surely will come back to haunt us next year as states feel taking in GST and demonetisation at the same time is stressful.
Eighth is the phenomenon of inflation which has come down after almost three years. With the CPI inflation being at less than 5%, everyone is taking credit for it. The government says it has brought inflation down, while RBI feels vindicated that its stance has helped to break the back of inflation. But how exactly was this accomplished when inflation was driven by bad weather and a poor harvest? When the crop fails, the weather is responsible for inflation. But when the weather is good and the crop thrives and brings down price, all of us take credit for it. Not bad for a deal.
Seven, the rockstar Raghuram Rajan had his share of controversy whether or not he wanted it. It was almost assumed that he would get an extension after a three-year term, and when that did not happen, the media was abuzz with its own speculation, which is always the case with RBI governors. Parallels are drawn to independent governors and not-so independent governors. Somehow, we want excitement whenever it is succession in central banks. We never ask ourselves whether we question the big owners and CEOs who run companies in which we work. We are always complaint, but we want RBI to work independently from the government? A contradiction here, really.
The sixth position goes to the investment activity. We have had several measures taken to revive investment. It started with clearing projects and then all those fancy slogans which energised the markets for a day after their announcement—Swachh Bharat, Make-in-India, Start-up India, Digital India and Smart Cities etc. All of them germinated several articles and discussions, besides proliferating conferences and seminars involving lunches and dinners, to show how the economy would be galvanised. Everybody who was ‘a somebody’ had something powerful to say. But the investment rate has been falling continuously till September and does not look likely to recover any time soon. Where are those investments dude?
Fifth, banking sector continued to blow hot and cold on its own performance. PSBs said last year that the NPA issue would be behind all of us and confined to the history books by March 2016. But their numbers and those for provisioning and profits are getting more difficult to comprehend by the day, and the date has been pushed forward to March 2017. The Bankruptcy Code is to be the magic wand now. But didn’t we have all DRTs, ARCILs and their like before?
At the fourth position is the most critical variable of interest rates. We all want rates to come down to spur growth at a time when no one wants to invest not because cost is high but there is little demand. The monetary policy can now be called the interest rate policy as it has been reduced to a single variable policy—or maybe three if we add CRR and SLR. All the experts or those with such pretensions are always arguing on business channels that RBI should lower rates (as if the central bank is not aware of the same). Such reductions have not led to any increase in credit and the tyranny of the status quo continues.
The third position goes to the Brexit drama. No one expected it and once people voted in favour of ‘exit’, the formula of 51% was questioned. Then it was claimed the young and old had different views, and several people did not understand what they were voting for. But now there is a possibility of an IT-exit (Italy) and Fr-exit (France). It surely looks as if the idea is compelling. We need to see how these ideas develop in 2017.
At two is the triumph of Trump, which could have been in the first slot. Everyone said Trump had no chance. The Economist argued that he was a bad choice. The markets got jittery as the voting day advanced, and this spectre took the indices down and the dollar weakened. But once he won, it was an about turn. More spending and lower taxes helps the US economy, right, which will strengthen the dollar, which is what the Dow Jones showed.
The mother of all events was the grand design of demonetisation. Or rather, what has been called remonetisation, as old notes get replaced with the new, even though holding money becomes easier with the R2,000 note making an appearance. The coloured notes add glamour to the monetary system and the designers need special mention of bringing in variety within the same denomination which is legal tender. The mention of ‘Swachh Bharat’ on the notes smacks of irony—it is now a clean India, you see. We learnt a lot about banking as it was less known that ATMs need to be recalibrated and that printing currency requires paper, ink and time. However, we have to think big, and the inconvenience caused is quite small as we have now gone in for a transformational change where everyone will be using mobile phones to transact even in villages where there is no electricity. This will be efficient and make all our lives better. But wasn’t the scheme to target black money? Yes, in the next round after December 31, the taxman will be in action and those who have something to hide should need to worry. Otherwise, don’t worry, be happy; and have a happy new year.
SOURCE: The Financial Express
The withdrawal of specified bank notes (Rs. 500 and Rs. 1,000 bank notes) will impart far-reaching changes in the economy going forward, said RBI Governor Urjit Patel, in his foreword to the 14th Financial Stability Report. “It is expected to significantly transform the domestic economy in due course in terms of greater intermediation, efficiency gains, accountability and transparency through increasing adoption of digital modes of payments, notwithstanding the short-term disruptions in certain segments of the economy and public hardship,” Patel said.
The report said the immediate financial impact of withdrawal of specified bank notes , announced on November 8, was a surge in bank deposits with a commensurate fall in currency in circulation. In terms of the macro-economic impact, there is a dampening effect on inflation with a temporary loss of momentum in the growth of real gross value added (GVA). The Reserve Bank of India has revised downward the GVA growth for 2016-17 to 7.1 per cent from 7.6 per cent, with evenly balanced risks. However, the report observed that the precise impact of this on the economy may be difficult to capture at this stage and the disruptions in the cash-intensive sectors of the economy are likely to be transitory.
SOURCE: The Hindu Business Line
The MSME sector contributes 8 per cent to the GDP, whilst employing more than 80 million people. Growth in micro and small enterprises has been consistent over the past five decades due to a combination of government support, implementation of technological enhancements, and support by the banking sector.
In 2016, initiatives have been taken by the Centre as well as State governments to improve ‘ease of doing business’ and to make Micro, Small and Medium Enterprises (MSMEs) more globally competitive – such as the Udyog Aadhar Memorandum framework for revival and rehabilitation of MSMEs, which enables banks/creditors to identify enterprises in the stage of initial stress and thus take corrective action, and A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE), among others.
Impact of demonetisation
The historic paradigm change through demonetisation, conceived by the Prime Minister, is strongly expected to have a long-lasting favourable impact. But, at the same time, there is a mammoth task ahead for the Prime Minister to make this a success. In case of SMEs, most will be unsure of payments coming from customers for some time. Currently, businesses and MSMEs dependent on cash for daily operations have been hit badly and though the Centre increased withdrawal caps, it will still be a few months before the situation stabilises.
The Centre should immediately act to enhance awareness amongst Indian SMEs about the importance and benefits of cashless transactions and digital payments, and in addition to that, deliberate on the role trade associations and other SME stakeholders could play to assist in this transition. Hopefully, the Centre will soon take measures to restart the money wheel in the market again. This could happen in several forms — early announcement of GST and Banking Transaction Tax, elimination or drastic reduction of service tax and VAT until GST is introduced, or something else. This will encourage people to spend without having the fear of tax.
Suggestions for 2017
The Centre must notify the Micro Small and Medium Enterprises Development (Amendment) Bill, 2015, which seeks to enhance the existing limit for investment in plant and machinery, considering inflation and the dynamic market situation. At the moment, there is no integrated approach for the development of MSMEs despite the fact that it accounts for 40 per cent of India’s manufacturing and 45 per cent of exports. Therefore, the Centre should come out with one comprehensive policy. Several areas of concern relating to the GST law and its implementation, must be addressed. It is equally important to provide special incentives for the promotion of export, such as freight subsidy and marketing support.
SOURCE: The Hindu Business Line
When the year 2016 began, the MSME sector was on a high. A much-anticipated national policy was soon to be finalised by a one-man panel consisting of former Cabinet Secretary Prabhat Kumar to usher in ‘ease of doing business’, a change in the definition of medium, small and micro enterprises (MSME), flexible credit norms as well as labour laws. For, the sector had been termed as the ‘cradle’ of Prime Minister Narendra Modi’s Make in India mission. MSME Minister Kalraj Mishra did not spare any opportunity to open portals and list out the number of schemes to boost the sector, such as MUDRA and Stand Up India.
Simple registration
One of the biggest achievements of his Ministry, he said, was a portal on Udyog Aadhaar Memorandum, which was launched in September 2015, to make registration of units much simpler. “About 8 lakh registrations have been done, while registration during the 67 years of Independence was only around 22 lakh,” the Ministry said, while listing its two-year achievements this year. The Ministry also noted the record production and sale of Khadi and exports of coir, which it said had surpassed Rs. 1,900 crore during 2015-16, as against Rs. 1,400 crore during 2013-14, at a time when overall exports had been plunging due to global headwinds.
Big blow
But, as 2017 nears, this largely cash-dependent sector has been dealt another body blow by the demonetisation of Rs. 500 and Rs. 1,000 currency notes announced on November 8. The sector’s order books, output and sales have plunged. The grim picture for the sector has been clearly spelt out by State Bank of India chief Arundhati Bhattacharya. Speaking on the impact of note ban on the economy in a recent interview to a news wire, she said: “I think that the SME sector will need some hand holding because they don’t really have any staying power, they don’t have deep pockets. They make a day-to-day living and their margins are compressed in any case.”
The MSME sector, which has about 40 million registered units employing about a 100 million people, directly and indirectly, is the largest job provider in the country. It contributes to 8 per cent to the GDP and has a share of 45 per cent in the country’s manufacturing output and 40 per cent in the total exports.
Budget promises
Budget 2016-17 had focussed on job generation, skill development and ‘ease of doing business’ and had also given incentives to the sector by increasing the turnover limit under presumptive taxation scheme to Rs. 2 crore. The allocation for MUDRA Yojana was also hiked to Rs. 1,80,000 crore, among other things. For, in 2016-17, the government’s target was to set up 55,200 enterprises, providing job opportunities to 4,41,600 youth.
Bleak outlook
But, post-demonetisaton, the sector’s outlook looks bleak. Leave aside creating new jobs, there are reports of the labour force moving back to villages as small and micro enterprises are finding it increasingly difficult to pay wages or get new orders, be it the lock makers of Aligarh, the brass industry in Moradabad, steel utensil makers, rubber goods, garments, textiles, jewellery, leather units, chemicals and so on. To add to this, the number of sick MSMEs has risen to 4,86,291 in 2016, which owe Rs. 40,642.50 crore to banks as outstandings, according to Reserve Bank of India figures. This is much higher than the total number of 4,73,823 sick MSMEs till March 2015 and 4,68,399 in March 2014, and almost double that of 2,22,204 in March 2013.
With a national MSME policy yet to be finalised, the sector that was anyway facing a credit squeeze, is now struggling with an almost 50 per cent slow down in production, with hundreds of enterprises cutting down on shifts. As another year dawns, the sector, which forms the backbone of the country’s economy, yet again awaits some hand-holding from the government and lending agencies, lest it is battered by a more serious financial crisis, followed by labour unrest.
Achievements in 2016
SOURCE: The Hindu Business Line
Cash-dependent micro, small and medium enterprises (MSMEs) across the country have borne the brunt of the ongoing demonetisation exercise. With about 86 per cent of the currency (high denomination Rs. 500 and Rs. 1,000 bank notes) in circulation being scrapped with effect from November 9, and the replacements in the form of Rs. 2,000 and new Rs. 500 bank notes proving to be grossly inadequate, MSMEs’ businesses, especially those in the unorganised space, took a hard knock due to slump in demand. This led to many micro and small units being temporarily shuttered, leading to job losses.
Contribution to GDP
The importance of MSMEs is underscored by the fact that units in the sector account for about 38 per cent of the total GDP. There are about 5 crore working enterprises in the MSME segment, providing employment to about 12 crore people. The demonetisation announcement has come as a bolt from the blue for the unorganised MSMEs, which reportedly account for almost 55 per cent of the total enterprises in the MSME segment.
Diversified financial services firm Edelweiss, in its research report Edel Pulse, said business in the case of SMEs in the unorganised sector was severely impacted in the first week (more than 70 per cent decline in business activity). But it is gradually improving. The paper added: “However, some pain is still left. Some businesses have started to explore exports option. The barter system seems to be making a comeback. People are uncertain about the government’s actions (on Rs. 2,000 validity, fake Rs. 500 notes etc). “The Goods and Services Tax (GST), plus the real impact of demonetisation, will follow one after the other and thus has the potential to impact businesses over the long term,” the report said. Edel Pulse estimated permanent impact on 20-30 per cent of business in the SME-unorganised sector. It is sceptical about job situation for non-skilled workers in the near term.
Organised players safer
In the case of the SMEs in the organised space, since bulk (over 75 per cent) of business transactions are by cheque, hence the impact of cash crunch post announcement of demonetisation is minimal, said the report. It added that impact will be limited to only about 20 per cent of business, which will also get normalised in a few months. “Large textile companies sell products to wholesalers, who then sell them to retailers. Retail sales hit due to demonetisation (cash transactions), which will have a 2-3 months’ impact on the entire value chain. Therefore, companies expect some weakness in near-term sales (25-30 per cent impact in November),” said the Edelweiss report.
Impact on investment
Kotak Bank’s research team observed that in a predominantly cash economy the very near-term disruption due to cash crunch can lead to a significant slowdown in the SME segment, which will have a bearing on economic growth and investments. In a report, Motilal Oswal cautioned that if the liquidity crunch at the system level continues then there could be a spike in SME bad loans (for the financial sector), which remains a key risk.
SOURCE: The Hindu Business Line
The heart of Punjab's industries is Ludhiana. But speak to any small or large scale industrialist in the city today and it is the same story - the centre's notes ban has slowed down business. On December 16, an industrial body of Punjab, the Chamber of Industrial and Commercial Undertakings or CICU protested against notes ban. A delegation even met Finance Minister Arun Jaitley in Delhi claiming over 30 per cent of the workforce has left Punjab for their native states and 50 per cent production of the industry in almost all verticals has suffered.
Avtar Singh, industrialist and Vice President of CICU, told NDTV that "30-40 per cent workers are standing in queue. We gave them cheques as per the government's suggestion but the worker still has to cash them out. China has hit out industry and now you have killed us with this move." Labourers standing in line told us they were all from either Bihar or Uttar Pradesh and that they have lost their day's pay because they have had to instead come and stand in line. Sometimes even two days are lost. Ajay Nayar, an owner of a mall in Ludhiana and India's largest manufacturer of measuring tape, has a turnover of 250 crore. Both his businesses have been hit. "In the beginning we were affected by 70 per cent, sales came down, this month it has picked up but a one-third drop is still there. My other business it is about 25 per cent down. Layoffs are a big problem. 40 per cent people have gone back but production has gone down so people are not bothered. It will damage the unorganised sector by 60-70 per cent. It has already done the damage," he told NDTV.
Travelling inside the industrial hub, we met Sachit Jain, the joint MD of a 7,000-crore turnover company dealing in steel and cotton yarns. The company has won awards like India's best company to work for, perhaps why the staff had a positive outlook. "Earlier unnecessary expenses were there. Now thanks to demonetisation we don't have those. Now it is like automatic saving. We are supporting each other and there is Paytm and other similar means we are using," said the workers, almost in unison. But in reality even this huge company has felt the pinch, something Sachit Jain explained. He told NDTV: "In our textile company there has been a marginal dip in sales. In our steel company a 15 per cent drop in sales. Overall it is a positive move. There is pain but then any change will have some pain. Hopefully the pain won't last too long and we should be back on track."
With the elections around the corner, how important will this slowdown be in deciding who to vote for? Rajinder Bhandari, former BJP state president told NDTV that "this won't affect the elections. Yes, in the short run it has hit Ludhiana but the pain will all go and the benefits will start to show." Aam Aadmi Party's Bhagwant Mann agreed, saying demonitisation won't have any effect on the election. But indicated why: "Because the people of Punjab are already fed up with the Akali-BJP government. More so, it would affect those who have money. Workers who earn 100 rupees have been troubled. One day to earn, three days in line to get what you earn. How is that fair?" Most industrialists - small and big - believe the industrial slowdown is temporary but if this situation does not improve by the time the Punjab elections come, the voter may lose confidence in the BJP-Akali alliance, something the Congress and AAP are already trying to capitalise on.
SOURCE: The NDTV
Snapping two days of losses, the rupee on Thursday recovered by 14 paise to close at 68.10 per dollar on fresh selling of the US currency by banks and exporters in view of weakness in greenback overseas amid a revival in domestic equities. The domestic currency opened flat at yesterday's closing level of 68.24 at the Interbank Foreign Exchange market and declined immediately to 68.25 on month-end dollar demand from importers.
However, it recovered to 68.0575 in the afternoon trade on fresh selling of dollars due to lower dollar in overseas market as well as recovery in the equity market, before ending at 68.10, showing a gain of 14 paise or 0.21 per cent. It had dropped by 50 paise, or 0.74 per cent, in the previous two days. The domestic unit hovered between 68.0575 and 68.2500 during the day. Meanwhile, the dollar index dropped by 0.47 per cent to 102.73 against a basket of six currencies in the late afternoon trade.
Overseas, the dollar weakened against the yen early today, weighed down by US yields slipping to two-week lows and an ebb in risk appetite that favoured the safe-haven Japanese currency. Losses for the dollar built today as investors sought out perceived safe-haven currencies such as the Japanese yen a day after surprisingly weak home-sales data in the US.
SOURCE: The Economic Times
ICRA expects the weak export demand and high cotton prices to hurt the profitability of domestic cotton spinners. While the commencement of the cotton harvest season has been accompanied by a softening of the domestic cotton price, however, it remains 17% higher YoY. The firmness in cotton prices is driven by a hangover of cotton shortage in India earlier in the year, slower cotton arrivals amid the demonetisation drive and uncertainty related to the extent of improvement in domestic crop-size against a backdrop of superior yields but lower sown area. Besides, weakness in export demand poses challenges for the domestic spinning industry. Cotton yarn exports have been under pressure due to lower demand from China amid improved local mill usage.
Mr. Jayanta Roy, Senior Vice-President, and Group Head, ICRA said: “As the domestic spinning industry remains highly dependent upon exports, with a third of India’s cotton yarn having been exported during the past four years, the fall in export demand is a major challenge for the industry.” The cotton yarn export quantity was 23% lower YoY during 7M FY2017. The improved domestic mill consumption in China has reduced its dependence upon imports, adversely impacting yarn exports from India. China’s yarn import quantity declined by 20% (YoY basis) during 7M FY2017 with a steeper decline in imports from India, which have fallen by 54% YoY. “While the impact of the steep fall in exports has been cushioned by an estimated recovery in domestic consumption from a four-year low growth in FY2016, a sustained revival remains to be seen and will be challenging due to the adverse impact of the demonetisation on disposable incomes and hence consumer spending.” Mr. Roy added.
The growth in spun yarn production slowed further to 1.1% in H1 FY2017 from the slowest growth in four years (3.2%) witnessed in FY2016. In addition, given the increased share of non-cotton yarn, aided by improved competitiveness of PSF vis-à-vis cotton, the cotton yarn production witnessed a 1.8% de-growth in H1 FY2017. In ICRA’s view, overall yarn demand is unlikely to get immediate support amid low exports and curtailed consumer spending amidst the demonetisation drive. Accordingly, spinners will have to sacrifice capacity utilisation or contribution, and hence profitability is likely to remain under pressure. Apart from profitability pressures, high cotton prices will translate into higher working capital requirements, and hence higher borrowings and weaker credit metrics of players. While the contribution margin was under pressure during Q2 FY2017, ICRA notes that stronger players had stocked cotton prior to the hike in cotton prices, which supported profitability. However, from Q3 FY2017 onwards, profitability is likely to decline.
SOURCE: The Economic Times
India and Singapore would hold key dialogue here on Thursday and Friday to conclude protocol to amend bilateral Double Taxation Avoidance Agreement or DTAA which will modify capital gains tax exemption. India-Singapore DTAA came into force in 1994 and, with two amending protocols in 2005 and 2011, has been at the centre of focus because Singapore-based companies could take advantage of capital gains tax provision and avoid capital gains tax, since Singapore does not have capital gains tax. It was linked to the DTAA with Mauritius and was clear that if the agreement with Mauritius was modified, the one with Singapore would also have to change, too.
Singapore’s Deputy Prime Minister and Coordinating Minister for Social and Economic Policies Tharman Shanmugaratnam will be here on 30-31 December. This will be his third visit to India this year. His last visit was to Delhi in August when he delivered the inaugural NITI Lecture Series on Transforming India.
Tharman is visiting India to hold discussions with Finance Minister Arun Jaitley to conclude the Protocol to amend the bilateral Double Taxation Avoidance Agreement (DTAA), which will modify the Capital Gains Tax exemption. As in the case of India's DTAA with Mauritius, to which the DTAA with Singapore was linked, the Capital Gains Tax exemption provision in the DTAA will be phased out within a defined time frame.
This is pursuant to discussions between Prime Minister Modi and Prime Minister Lee Hsien Loong of Singapore in October this year here. However, given the importance that India attaches to the growing and wide ranging Strategic Partnership with Singapore and the key place that Singapore occupies in India’s external economic engagement and the Act East Policy, Modi had suggested that a working group chaired by senior Ministers be designated from both sides to explore ways to further strengthen the strong economic ties and accelerate investment flows between India and Singapore.
Singapore is already the second largest source of FDI in India with cumulative FDI inflow amounting to USD 50.6 billion (April 2000-September 2016). It emerged as the largest source of FDI into India last year – FDI inflow was USD 13.7 billion in 2015-16. Singapore is among the top destinations for Indian investors as well who have put in more than USD 45 billion worth of investment in the country.
While the framework agreements between India and Singapore, such as the Comprehensive Economic Partnership Agreement and the DTAA, have contributed to the emergence of Singapore as the major source and destination of investments for India, it is also the result of the business environment in Singapore and its role as a a major financial, logistics and business centre in the region.
The change comes at a time of economic slowdown in Singapore, China and elsewhere; reversals in global sentiments on trade and economic integration; and, broader geopolitical uncertainties in the region and the world, all of which will have a strong impact on Singapore. Singapore is seeking deeper Indian economic and strategic engagement in the region; for India, Singapore is an important anchor of its Act East Policy. Singapore is also home to a large population of people of Indian origin and recent expatriates from India count among the top professionals in Singapore. Singapore has one of the highest concentration of IIM and IIT graduates worldwide. Indeed, a delegation of 20 IIM alumni from Singapore is participating in PDB 2017. This is an important resource for the two countries. The two sides will seek to work towards retaining and strengthening one of the main pillars of their Strategic Partnership.
SOURCE: The Economic Times
With India and the European Free Trade Association (EFTA) members resuming talks for the long-stalled proposed free trade agreement last month, senior officials of the four-nation bloc will visit here in January to iron out differences related with the pact. The four members of EFTA are - Switzerland, Iceland, Norway and Liechtenstein. "The EFTA officials will visit here in mid-January. The agreement is important as it will give market access to several sectors from India such as textiles and chemicals," an official said. In October, Indian officials visited Geneva for the deliberations.
Negotiators of both the sides would discuss issues such as intellectual property rights (IPR), number of goods on which duties will either be eliminated or reduced significantly. EFTA wants India to commit more in IPR in the agreement, which is officially dubbed as Trade and Economic Partnership Agreement (TEPA). They were also demanding for data exclusivity, which India is completely opposed to. Both sides had earlier expressed willingness to jointly address the major outstanding issues and agreeing to an early resumption of negotiations and concluding a balanced agreement in a time-bound manner. The trade pact talks had started in October 2008. So far, 14 rounds of negotiations have been held at the level of chief negotiators. The proposed pact covers trade in goods and services, market access for investments, protection of intellectual property and public procurement. The two way trade between the regions stood at USD 21.5 billion in 2015-16 as against USD 24.5 billion in the previous fiscal. The trade gap is highly in favour of the EFTA group.
SOURCE: The Economic Times
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$ 54.55 per barrel (bbl) on 29.12.2016. This was higher than the price of US$ 54.49 per bbl on previous publishing day of 28.12.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3716.49 per bbl on 29.12.2016 as compared to Rs. 3717.73 per bbl on 28.12.2016. Rupee closed stronger at Rs 68.12 per US$ on 29.12.2016 as against Rs 68.23 per US$ on 28.12.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 29, 2016 (Previous trading day i.e. 28.12.2016) |
Pricing Fortnight for 16.12.2016 (Nov 29, 2016 to Dec 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.55 (54.49) |
50.85 |
|
(Rs/bbl |
3716.49 (3717.73) |
3460.34 |
|
|
Exchange Rate |
(Rs/$) |
68.12 (68.23) |
68.05 |
SOURCE: PIB
The downslide in textile sector witnessed in 2015 was largely arrested in 2016 with yarn and fabric being the only sub-sectors where decline still continues. Indecisiveness of the government on proposed textile package created uncertainty impeding investment plans. According to the data compiled from government statistics, the textile exports of six major items declined by $363 million to $9.888 billion in Jan-Nov 2016, compared to $10.251 billion in the same period of 2015. During the same period, cotton yarn exports decreased $228 million and cotton fabric by $155 million. Cumulative decline in exports of these two items amounts to $383 million that is $20 million higher than the total decline in textile exports. This in other words means that the exports in value-added sectors increased, though only nominally. In the first 11 months of 2015, cotton yarn export was $1.431 million that declined to $1.103 million during the corresponding period of 2016. Cotton fabric exports were down from $2.126 billion to $1.971 billion in 2016.
Knitwear exports during Jan-Nov 2015 were $2.187 decreasing nominally to $2.186 in calendar year 2016. Bed wear exports however increased from $1.858 billion to $1.890 in 2016, towels exports declined from $694.7 million in 2015 to $691.5 million in 2016. The exports of readymade garments increased from $1.955 billion in 2015 to $2.047 billion in 2016. Pakistani Prime Minister had assured the textile sector of incentives in September 2015, but nothing was done for over a year. He again promised the textile sector in October 2016 that the textile package would be announced soon. No notification has been released in this regard. This has created uncertainty among textile exporters, who cannot quote their best prices. They would miss a big opportunity at the largest global fair on home textiles which is to be held in Frankfurt in the second week of January.
Textile sector, like the preceding five years, did not invest in balancing and modernisation in 2016 that further deteriorated its spinning and weaving machines. The eroding competitiveness of the sector was not only because of high cost of doing business in Pakistan but also due to 10 years old machinery. The older machines consume 40 percent more power than the latest basic textile machines. New machines produce more with only 33 percent of the workforce needed in older machines. The cost of energy came substantially down in 2016. The textile industry in Punjab was completely dependent on state supplied 18 hours per day of uncertain power and average six hours natural gas supply during summer in 2015.
During acute power shortages, most of the millers had to run their diesel generators that produced costly power. In 2016 they were assured 24/7 electricity at an average of Rs12 per unit and 24/7 RLNG for their generators that produced electricity at an average of Rs10 per unit. That was a vast improvement, but the dilemma for 70 percent of the industry based in Punjab is that the energy cost in other provinces is substantially lower. They produce electricity from natural gas that is 35 percent cheaper than RLNG.
Another drawback faced by the textile sector in 2016 was sharp rise in textile imports. Textile imports have crossed $3 billion. The imports include raw cotton that is usual except for the fact that this year the imports were higher due to low cotton output in Pakistan. Indian yarn has also made substantial inroads in the country. Even the readymade garments importshave increased – all at the expense of the domestic textile sector. It was the worst year for cotton crop in the last 25 years, as the country harvested less than 10 million bales. The industry coped with the shortage by importing bales which were available globally at low cost. Bureaucratic hurdles impeded cotton imports from neighboring India. The regulations that were invoked after tensions with India increased hurt our domestic industry, but were a blessing for Indian millers as the glut brought down cotton price in India. Going forward, the basic textile industry has realised that its survival lies not only in technology upgrade but also in value-addition so they consume yarn and fabric in their own concern. Though the larger textile houses are on target in this regard, the comparatively small units are rich in ideas but short on resources.
SOURCE: The News
In 2015, though the sector only recorded a growth of more than 10%, total textile exports still reached US$27.5 billion. In 2016, the sector targeted a growth of about 10-15%, with exports expected to reach US$31 billion. However, market volatility and lower consumer demand around the world has made Vietnam’s textile exports amount to a mere US$28.3 billion, an increase of nearly US$1.5 billion, corresponding with a growth of nearly 5% compared to 2015 – the lowest growth rate since 2008. Not only that, due to increasingly fierce competition, domestic textile enterprises have faced a range of difficulties in expanding markets and seeking customers, even facing the risk of declining orders due to losing competitive advantages.
According to experts, previously apparel orders constantly poured into Vietnam thanks to its cheap labour competitiveness, however, it is no longer an advantage as labour costs have increased. Inevitably, orders have moved to the lower-cost countries, such as Laos, Cambodia and Myanmar.
One of the major bottlenecks that Vietnam's garment sector is always seeking measures to address is how to get rid of the current situation of out-sourcing with low added value, while avoiding a dependence on imported raw materials (the country still has to import more than 80% of raw materials) in order to control prices and increase competitiveness.
Although the Vietnam National Textile and Garment Group and several major enterprises have invested in spinning, weaving, dyeing and finishing chains, it does not seem enough to meet the needs of thousands of companies specialising in garment exports. Meanwhile, companies without resources have turned to accepting out-source orders with low cost and quick payback.
On the other hand, it is also difficult to raise the textile industry to a higher level due to competitive factors in labour skills, modern technologies and equipment and diversified products.
Due to limited resources, most domestic companies choose to gradually invest each year. This situation is in contrast compared to FDI as they represent less than 25% of the nearly 7,000 textile enterprises nationwide but account for 70% of the total export capacity. This shows that the overwhelming advantages of foreign companies over domestic enterprises will only continue to grow if reasonable policies and development direction are not soon formed.
According to the Vietnam Textile and Apparel Association, 2016 is an extremely difficult year for the country's textile industry, with the lowest growth rate since 2008 (the year that Vietnam's garment recorded no export turnover growth due to the global economic crisis) so far. By 2018, Vietnam's garment industry has been forecast to face many challenges, especially in regards to small and medium-sized enterprises facing the risk of closing down due to poor competitiveness and extremely difficult production conditions. Many customers have been moving their orders to Cambodia, Myanmar and Laos, countries with tax incentives to export goods to Europe and the US – the two largest export markets for Vietnam’s textile and garment industry. Therefore, companies need to change production methods towards ODM and OBM models, while reducing costs, increasing productivity, investing in technologies and diversifying products. The Government and concerned ministries should promote administrative reform and provide reasonable support policies regarding capital, infrastructure, employment, income and health insurance to reassure businesses.
SOURCE: The Vietnam Net
The minimum wage of the Nigerian textile and apparel workers will increase by 13 per cent to N32,000 as per the 46th national collective agreement. The agreement has been signed by the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) and the Nigeria Textile Garment and Tailoring Employers Association (NTGTEA). Post the 13 per cent wage hike, the minimum wage in Nigerian textile and garment industry would be more than 70 per cent of the current national minimum wage of N18,000. The increase in minimum wage rate will enable the labourers in the textile industry to deal with the economic recession, according to a leading Nigerian daily. Through the collective bargaining process, there was 18 per cent and 15 per cent rise in the wage rate in 2012 and 2014 respectively, according to NUTGTWN. Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other areas of workers’ compensation and rights.
SOURCE: Fibre2fashion
Punjab Chief Minister Muhammad Shehbaz Sharif addressed the heads of the Chinese companies in textile sector and members of a delegation from Punjab through video conference in Beijing on Wednesday. Speaking on the occasion, the chief minister said that the project is of vital importance for the uplift of textile and garments sector and it will have to be completed with speed, standard and transparency. He asked Chinese investors to come forward for investment in the Apparel Park project and assured that Punjab government would provide them with all the necessary facilities. The provincial minister for Industries, secretary Industries, PIEDMC and other concerned authorities will be responsible for the completion of the project within stipulated period. The officials of Chinese companies assured investment and described it as a splendid project.
Meanwhile, Shehbaz Sharif also addressed senior authorities of Chinese companies in water sector and discussed matters regarding Saaf Pani project. The chief minister said that Punjab government has evolved a big project of supply of clean drinking water to the people of the province but due to inefficiency, negligence and non-professional attitude of the officials of Saaf Pani Company, the project has been delayed. He further said that senior officials of the company have been suspended and instructions have been issued to blacklist the consultants.
Sharif said that this project will be implemented in a transparent manner like other projects of the provincial government. He said that due to laxity and inefficiency of some officials, time and resources had been wasted but now speedy progress will be made. He said that Punjab government has allocated funds of billions of rupees for this project. He further said that it is priority of the government to implement Saaf Pani project expeditiously as it is directly linked with human health.
SOURCE: The Pakistan Today
Taiwanese manufacturer of accessories like shoe laces and elastic tapes, Taiwan Paiho Ltd is planning to invest $50 million in setting up a manufacturing facility in Vietnam. The plant to be managed by Paiho’s Vietnamese subsidiary, Paiho Shih Holdings Corp would mainly produce jacquard knitted fabrics destined for export to various countries. “The company will install 42 machines at the new plant, which is scheduled to begin commercial production the last quarter of 2017 and plans to install 350 such machines within the next five years,” Taiwanese media reported. After analysing various factors like transportation costs and tariffs of various Southeast Asian countries, the Taiwanese company zeroed in on Vietnam to set up the plant. According to Paiho Shih chairman Cheng Kuo-yen, producing jacquard warp-knitted fabrics is projected to help it enhance its presence in the shoe material market, since there is an increasing demand for the fabrics from shoe manufacturers from across the globe.
SOURCE: Fibre2fashion
South Korea's textile and garment industry is set to suffer a trade deficit for the second consecutive year in 2016 amid an influx of cheap Chinese products, industry data showed Friday. According to the data compiled by the Korea International Trade Association (KITA), the segment's exports dipped 4.8 percent on-year to reach US$12.4 billion in the first 11 months of the year. In contrast, imports of textiles and clothing increased 1 percent to $13.52 billion over the cited period. If the trend continues this month, inbound shipments may top the previous record high of $14.65 billion set in 2014. In the January-November period, the sector logged a trade deficit of $1.09 billion, far surpassing last year's deficit of $157 million, the data showed. The textile industry logged a deficit for the first time last year in its history, as high labor costs and increased competition from foreign rivals, such as China, ate into its profitability. For instance, South Korea shipped textiles and clothing worth $2.22 billion to China last year, but its imports from the neighboring country stood at $6.45 billion, resulting in a trade deficit of $4.23 billion.
SOURCE: The Yonhap News Agency
Cotton, one of the nation’s most valuable export tree crops before the oil boom of the 70s, is gradually becoming history in Nigeria despite the potential to have a share in the estimated $3 trillion global textile industry. From the 1960s to late 1980s, about 176 textile companies were active in Nigeria when Kaduna, Kano and Katsina witnessed massive influx of graduates and unskilled labourers who sought and got jobs in the cotton dependent industries. However, most of these companies are now dead; the ones still alive are crippled by importation of textile materials, government neglect and poor cotton policies and production.
Dr H. D. Ibrahim, Director-General, Raw Materials Research and Development Council, noted few months ago during presentation of cooton seeds to farmers in the North-west, that in 1980, cotton turnover in Nigeria was worth N8.9 billion, which represented 25% of the National Gross Domestic Product (GDP). Sadly, it slumped to only N300 million in 2012. Similarly a report by International Cotton Advisory Committee (ICAC) (2006/2007) shows that Nigeria has 51 ginning companies but only 17 are fully operational with 33% ginning capacity utilization and approximately 250, 000 cotton farmers. However, the ICAC 2016 data released December 1st says Nigeria now produces 51,000 metric tonnes of cotton on 253,000 hectares with average yield of 202kg per hectare only. Again, the National Bureau of Statistics (NBS) in the Q1 GDP report for 2016 highlighted that the textile, apparel and footwear industries contributed only 2.10% in Q1 of 2016.
Anibe Achimugu, National President, National Cotton Association of Nigeria (NACOTAN) in a telephone interview with Daily Trust believed that failure of government to treat cotton as “a national asset” as done by top producers in the world, led to the collapse of many of the 176 industries that were active up to 1980s, which is also responsible for the continued decline of cotton production in Nigeria. Arc. Bashir S. Haiba, who is a cotton farmer and does cotton business, from production to chain processing (ginning), told our reporter during an interview that cotton used to be part of the traditional cottage industry. “In most of the cities in Hausa land, particularly cotton growing areas, you will always find ‘Masaka’ where traditional weaving and value addition takes place; weaving blankets, clothes and other things but over the years it is all gone,” he lamented. “In Malumfashi now there are three functional ginneries but they are seasonal and operate below 50% of their capacity,” he said.
How $4bn (about N1.2 trillion) textile imports kill cotton production
The Director General of the Nigerian Textile Manufacturers Association (NTMA), Hamma Kwajaffa, while lamenting the state of the Nigerian cotton industry with journalists in Abuja recently said the country spends $4 billion (about N1.29 trillion) annually on import of textiles and ready made clothing, which makes it extremely difficult for the comatose industries in the country to operate and compete. Most of these textiles materials come from the world’s largest producers of cotton - India, China, USA, Turkey and others. Arc. Haiba also highlighted the issue of smuggling in the textile industries as a major challenge, adding that our borders are very porous thereby killing local production over the years.
With a total of 650,000 hectares available for cotton farming, only a third is currently exploited to produce less than 300,000 tonnes by an estimated 250,000 farmers in the major cotton producing states. Even the federal government’s N100 billion for cotton, Textile and Garment Development Scheme “managed by the Bank of Industry (BOI), to revitalize the CTG Industry along the entire value chain at an interest rate of 6% per annum with tenor up to 5years,” did not make any significant impact. Many farmers are now leaving cotton for other crops, a situation that call for concern.
FG policy on uniforms could be a game-changer
Currently, Nigeria does not have any National policy that protects the cotton industries - looking at the entire value chain. Stakeholders like Mr. Achimugu and Kwajaffa believe that if government makes it a national policy that school uniforms of the estimated 40 million pupils, students and those of thousands of our military and para-military personnel are not allowed to be imported, that will go a long way in changing the game as that figure alone will create the market that will resuscitate private sector investments in the cotton and textiles industries. As it stands today, government does not have any legal instrument in place that regulates the industries making it extremely difficult for the sub-sector to come back to life.
Everything begins and ends with quality seeds
On production, Architect Haiba disclosed that the greatest problems are seeds which are grossly insufficient and not of best quality. “Seedling nowadays doesn’t grow more than 2-3 feet, but before, a cotton plant could reach up to 5 feet with a lot of branches which you can harvest up to four times. For cotton you need long fibre, disease resistant seeds and ones that adjust properly to the vagaries of the weather,” he said. Anibe Achimugu, like NACOTAN’s Kwajaffa and Arc. Haiba, also stressed that lack of quality cotton seed (and quantity) to address the needs of farmers for seed and to achieve higher yields, must be addressed. He also emphasised the need for adequate financial support for farmers, research and development (R&D) on the part of government for the Institute for Agricultural Research (IAR), which will ensure seed production programmes are implemented to produce breeder and foundation seeds for the industry’s needs. Achimugu, who is also the MD/CEO of Arewa Cotton, said there was need to facilitate the establishment of a world class seed processing plant in the first instance. “Government’s help is needed as it will not become commercially viable for some years but it is needed to play a developmental role in the short to medium term to address lack of properly treated and certified cotton planting seed,” he said.
Other issues with cotton production in Nigeria
Architect Bashir Haiba further lamented the situation of herdsmen going into fields and destroying plants, adding that the real problem of cotton production begins after production. He further lamented the sharp practices of middlemen whom, he said, added water, sand or even stones so that when you weighed the cotton you had more tonnage thereby creating problems for the cotton ginneries. “Even the countries where we export the cotton to some years back banned cotton from Nigeria, particularly because of the amount of sand and debris in it, especially in Europe,” he added. Professor Salihu A. Dadari, Programme Leader of Cotton Programme, Department of Agronomy, Institute for Agricultural Research, Ahmadu Bello University, Zaria, recalled that cotton marketing boards organised and coordinated the sale of cotton and also the export of the commodity. The don revealed that with the marketing boards, farmers received fair prices for their produce.
He blamed the decline in cotton production on low seeds release to farmers, lack of adequate inputs, poor pricing policy, activities of middlemen, poor roads infrastructure and lack of security. “At a time Nigeria was producing up to one million tonnes of cotton lint that goes to the textiles but nowadays the percentage has reduced drastically,” he said. Prof. Dadari asserted that it was a mistake to dismantle the Cotton Marketing Boards adding that no sustainable substitute was created afterwards. He stated that although there were allegations of corruption and fraudulent activities, it was still better then, because now you can’t hold anybody responsible for how many tonnes we have acquired or where we are taking them to or who is buying what.
Experts say government should act now
Speaking on the way government can revitalize the sector, Architect Bashir Haiba, said government should critically look into input supply for production and allocate at least 15% of the budget to agricultural production. He said Nigeria should engage in technology shopping, particularly from other countries, adding that fertiliser, herbicides, pesticides, agricultural extension workers should also be strengthened. “The technology attachés in embassies should look for the most rugged and simplest form of technology and see how we can bring it into Nigeria and replicate it. India has a lot to offer Nigeria,” he said. Prof. Dadari on his part called on government to as a matter of urgency render deliberate and targeted support for the stakeholders in the cotton value chain.
“Professionals must be trained and sent to the field to give farmers technical advice and improved seeds that have long fibres, are pest resistant and compatible with various soils and weather at affordable prices,” he suggested. Mr. Achimugu, the MD of Arewa Cotton, Abuja, however appealed to the federal government to set up a National Cotton Council where stakeholders could deliberate on all issues pertaining to the cotton industry, and to identify interventions and implement actions. He also wants “government to facilitate the establishment of a High Volume Instrument (HVI) testing centre. Alongside this, introduce through the instrumentality of the Federal Government of Nigeria, the Nigerian Cotton Standards (NCS) and selling types, thereby creating a Nigerian standard in the international market place.”
SOURCE: The Daily Trust
Since a large capacity to produce export products is either partially or fully shut, due to various factors like high energy cost and high cost of business, the Pakistan Textile Exporters Association (PTEA) has urged the government to announce the promised textile package. PTEA is of the opinion that the package will help arrest the widening trade deficit. According to Pakistan media reports, PTEA chairman Ajmal Farooq said that the country's exports fell 3.93 per cent year over year to $8.18 billion during the July to November period of 2016. “Imports rose 8.7 per cent to nearly $20 billion in the same period and so in absolute terms, imports were higher by $1.6 billion as against the similar period of the prior year,” Farooq added.
High cost of production and reduced competitiveness were termed as the major challenges in generating export growth by PTEA. “So, if the textile package is not announced immediately, the situation may worsen in the coming months and have a direct impact on the Pakistani economy which is already under pressure,” the chairman observed.
SOURCE: Fibre2fashion
The fashion industry is likely to grow at 2.5-3.5 per cent in 2017 in terms of sales, up from 2-2.5 per cent in 2016, according to a recent report. First macroeconomic indicators, including GDP growth forecasts, are projected at 3.4 per cent compared with 3.1 per cent for 2016, however, it does not reflect impacts of political shifts in the US and UK. The investment community and the fashion brands themselves forecast improvement across the industry next year. Nearly 40 per cent of executives interviewed for the State of Fashion 2017 report by McKinsey & Company expect conditions for the fashion industry to improve in 2017, compared with 19 per cent who reported improving conditions in 2016.
Value and affordable luxury are likely to be the big winners, both outpacing the industry average at a projected 3-4 per cent and 3.5-4.5 per cent growth, respectively. However, all market segments, except for the discount market, should see a slight sales growth improvement of 0.5-1.5 per cent, states the report. Athletic wear is positioned to be the absolute category winner, maintaining 6.5-7.5 per cent sales growth, albeit no longer growing at a double-digit rate overall, according to the report. The affordable luxury segment seems likely to continue benefitting from consumers ‘trading down’ from luxury, while signs point to the continued growth of the value segment in line with the international expansion of large global players. According to survey respondents, the most pressing challenge next year will continue to be dealing with volatility, uncertainty, and the shifts in the global economy, followed by growth in sales and profitability. In addition, fashion executives continue to see competition from online players as one of their top three challenges for next year. Last, supply chain improvements, decreasing foot traffic, and the speed of the fashion cycle weigh equally on their mind as challenges to face in 2017.
Trends that are likely to define the fashion agenda in the coming year according to this fashion report are intensifying volatility, China’s comeback, urban engines, shrewder shoppers, generation correlation, wellness dividend, fashion cycle disruptions, organic growth, upstream technology and ownership shake-up. “The industry now has the opportunity to stabilise and reset. Next year’s success stories are most likely to come from those that are already planning for the year ahead. They should do this in the context of the following trends that we believe will shape the fashion industry in 2017,” says the report.
SOURCE: Fibre2fashion
The Bangladesh government has approved the draft to the second amendment of the Asia Pacific Trade Agreement (APTA), one of the oldest preferential trade agreements among nations in the Asia Pacific region. China, India, Bangladesh, Sri Lanka, South Korea and Laos are members of the group, which was earlier known as Bangkok agreement, later renamed as APTA.
Bangladeshi media reports quoted cabinet secretary Shafiul Alam as saying that amendment, while also revising the tariffs has also added Mongolia as a new member of APTA. As per the APTA agreement, Bangladesh offers 10 to 70 per cent duty free access to 598 products from signatory countries, while also giving 20 to 50 per cent concession to four more products from Least Developed Countries (LDCs) within APTA. On the other hand, China gives 5 to 100 per cent duty-free access to 2,191 products and India also provides 5 to 100 per cent duty free access to 3,334 goods.
SOURCE: Fibre2fashion
Quaid-e-Azam Apparel Park project is of vital importance for the development of textile and garments sector and it would be implemented speedily with, standard and transparency, said Punjab Chief Minister Shahbaz Sharif during his video conference from Lahore to Beijing on Wednesday, where he addressed heads of Chinese companies in textile sector and a delegation from Punjab in Beijing. He asked the Chinese investors to come forward for investment in the Apparel Park project and assured that Punjab government would provide them with all necessary facilities. The completion of the Quaid-e-Azam Apparel Park would promote textile and garments industry. The officials of Chinese companies assured investment in Quaid-e-Azam Apparel Park and described it as a splendid project.
China Commercial Circulation Association of Textile & Apparel Vice-President Yin Qiang, senior officials of other Chinese investment companies, Punjab Minister for Industries Sheikh Alauddin, planning and development chairman, industries secretary,PIEDMC chairman, Pakistan Embassy in Beijing Commercial Consular Dr Arfa Iqbal besides other officials participated in the meeting in Beijing. Provincial Minister for Industries, Secretary Industries, PIEDMC and authorities concerned will be responsible for completion of the project within stipulated period.
SOURCE: Yarns&Fibers
The cotton market recovering with renewed buying interest from spinners on Wednesday. Floor brokers said that spinners rushed back to meet their short-term requirement, but their buying remained restricted to small-lot transactions ahead of bank closing and New Year eve. Due to steady flow of buying orders at the lower level lint prices regained recent losses and finished Rs50 higher on ready trading. Besides, there is a shortage of quality cotton as third and final picking has started and the textile industry is looking for quality cotton to meet their demand. How¬ever, ginners are still holding a sizeable quantity of unsold cotton.
Ever since the Depart¬ment of Plant Protection removed restrictions on the import of cotton from India, leading spinners are reported to have focused their buying from across the border, brokers added. At the ready counter major deals to have changed hands were: 3,000 bales from Bahria City (Rs6,175), 2,200 bales Bahria Road (Rs6,175), 1,600 bales Khair¬¬pur (Rs6,185), 1,200 bales Rohri done at Rs6,200, 600 bales Akri (Rs6,350), 400 bales Hasilpur (Rs6,100), 600 bales Vehari (Rs6,100), 400 bales Burewala (Rs6,200), 500 bales Haroonabad (Rs6,300), 400 bales Shadan Lund (Rs6,300), 600 bales Bahawalpur (Rs6,400) and 400 bales Yazman Mandi (Rs6,450). The Karachi Cotton Association’s spot rates remained unchanged.
SOURCE: Yarns&Fibers
The Vietnamese textile industry to reduce costs and improve competitiveness, the domestic textile enterprises should work together with logistics service providers. The costs of logistics currently account for nearly one-third of the costs of each textile product exported, so the Vietnamese garment sector could save more than US$1 billion per year by reducing this cost, according to experts. Nguyen Tuong, Vice Chairman of the Vietnam Logistics Association, said that the textile industry needs to import raw materials from abroad and export products to foreign markets.
Working together, many enterprises could purchase raw materials by combining their orders to create a large shipment, which will help significantly reduce transportation costs. Additionally, Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association, said that most textile companies currently perform outsourcing jobs, causing them to depend on the supply of raw materials and transportation services of providers assigned by their partners. Most of these providers are foreign companies, thus the market share for local logistics companies has been narrowed. Further, high transportation costs are undermining the competitiveness of Vietnamese goods in international markets.
According to Director of the Nam Viet Co Ltd, Nguyen Duc Chuong, during peak seasons, textile firms have to pay the container imbalance charge (CIC) - a kind of sea freight charge which a carrier requires to offset costs arising from the transfer of a large amount of empty containers from one place to another. This charge is only affordable to enterprises with large-scale import-export orders, such as Nha Be Corporation or Viet Tien Garment Joint Stock Corporation, but is a heavy burden on small and medium-sized textile firms. Meanwhile, there is a lack of confidence between the owners of goods and Vietnamese logistics service providers due to low-quality and high prices, said representative of the Dam San joint stock company, which specializes in producing fibers.
Located in the northern province of Thai Binh, the firm has to spend US$3 billion to US$4 billion every year on logistics costs. To improve the quality of the supply chain and reduce logistics costs, many textile enterprises have turned towards "self-service". A representative of the Nha Be Corporation said that the corporation has established the NBC logistics company to carry and load goods, and to export and import procedures for its shipments. To facilitate the transaction, NBC logistics firms also opened a representative office in China's Shanghai, and many textile enterprises are seeking to hire it to perform export and import services. So far, conducting self-logistics services for approximately 70 percent of their goods has helped the corporation save US$2 billion per year. Previously, it had to pay US$6 billion for import-export of goods annually. It is necessary for the Ministry of Industry and Trade and the Ministry of Transport to assist the coordination and connection between shippers and the owners of goods, as self-logistics services is not a good solution for small and medium-sized firms.
SOURCE: Yarns&Fibers
The Bangladesh government to exhilarate its textile sector has introduced an electronic service by making the business process hassle-free, The textile sector is one of the highest foreign income earning windows, which currently bears around 83% of total export earnings. Textile and Jute Minister Muhammad Imaj Uddin Pramanik while launching the E- service for the entrepreneurs at a seminar held at Jute diversification and Promotion Centre in the city yesterday said that the entrepreneurs can do their business by spending less time and money.
From now on, the entrepreneurs will get 18 kinds of service through the E-service, which has been launched under the project of “Online one click registration and service delivery by directorate of textiles by developing an E-centre network using ICT.” Under this, the entrepreneurs can easily send their applications as well as fees through this online service, sitting at their own offices. The program is being financed by the Access to Information project of the Prime Ministers’ Office. Among others, A2I Project Director Kabir Bin Anwar, Director General of the Department of Textile Ismail Hossin, BGMEA Vice-President Md NAsir and BKMEA Director Kamal Pasha were also present on the occasion. Currently the foreign income from the textile sector stand at $28 billion which the government wants to ensure it to worth US$50 billion by 2021.
SOURCE: Yarns&Fibers
In Shengze, offers for 32s polyester yarn were up US cents 11 a kg in the second week of December. In Qiangqing, 32s weaving yarn was up US cents 7 a kg on the week. In China, spun polyester yarn offers moved up in line with rising PSF values despite lusterless demand. Producers were considering taking a break in advance in view of fast price rises of raw materials which is forcing yarn makers to follow up amid lack of orders. Thus, producers faced margin loss and stopping operation in advance with the Spring Festival drawing near. In India, spun polyester prices have not yet reacted to the rise in PSF prices since early December. On export markets, polyester yarn prices were also stable as exports had declined in November along with falling unit value realisation. Polyester yarn 30 knit yarn prices rolled over in Indore while they were flat in Ludhiana market. In Pakistan, polyester yarn remained unchanged following PSF markets.
SOURCE: Yarns&Fibers
Asian PTA prices gained US$13 a ton CFR China and CFR Southeast Asia in the second week of December. In China, offers for nearby-month goods surged US$10 a ton on the week. Yisheng Petrochemical raised its selling price by US$12 a ton while Hengli Petrochemical offers were up US$10 a ton. Purified terephthalic acid markets were under strong fluctuation from last Friday till early that week. Prices of petrochemical products picked up for a short term under the influence of rising crude oil values only to decline within the week. PTA values marginally picked up and then were basically quiet. In Europe, December net contract price of PTA was assessed up, reflecting a higher settlement of the paraxylene December ECP. European December net contract price of PTA was up Euro10 a ton on the week.In US, PTA December prices rose to a 15-month high. The settlement in the formula-based price followed an increase in feedstock contracts. US PTA price for December rose US cents 1.01 a ton on the week.
SOURCE: Yarns&Fibers
Kornit Digital, a leader in digital textile printing technology, will show the Allegro digital printing system live, demonstrating end-to-end production of digitally printed home textiles, without any pre-treatment or finishing steps, at Heimtextil 2017, global trade fair for home and contract textiles, from 10 to 13, 2017, in hall 6.0, booth B15 in Germany. Kornit Digital will feature various exhibits, samples and live prints that show the potential of digital one-step production for designers and producers of furniture, with a focus on custom-made products. Based on the company’s ‘Allegro & Cut’ concept, this one-step workflow can be expanded by integrated workflow steps, such as pattern integration, nesting and digital cutting, in order to represent a fully digital, local production setup to drive the new business models. The Kornit Allegro is the only true digital solution for textile printing that includes pre-treatment and full finishing within a seven meters production line. Its unique one-step process combined with the impressive colour gamut of Kornit’s NeoPigment inks represents a real opportunity for textile designers and enables them to control their prints and colours while offering their customers short runs and customisation.
With textile production now available in a completely dry, single step solution, digital fabric printing is returning to western countries as former challenges, such as end-to-end costs, pollution, regulations, health and safety, and space can be addressed. Guy Zimmerman, Kornit Digital’s vice president of marketing and business development said, “Over the years, we have steadily increased our Heimtextil presence as this event is one of the most significant platforms for us to meet manufacturers, retailers and designers from all around the world. Kornit’s Allegro brings new business opportunities to the home textile industry. It is a true stand-alone roll-to-roll system that prints direct onto a broad variety of fabrics with vivid results, accurate colours, an excellent hand and good durability. It is particularly suitable for the production of special collections and all applications that require fast turnaround times.”
SOURCE: Fibre2fashion
Intertextile Shanghai Apparel Fabrics, which begins March 15-17, 2017 in Shanghai, China will see the addition of an additional hall to accommodate the over 3,000 participating exhibitors. The organisers have added the hall due to an increased number of ladieswear and accessories exhibitors, and to lesser extent functional fabrics suppliers. Four concurrent textile fairs like Yarn Expo Spring, Intertextile Shanghai Home Textiles – Spring Edition, CHIC and PH Value will occupy another seven halls. In addition to domestic buyers, visitors from around 100 countries and regions are expected at the 2017 edition. To facilitate buyers’ sourcing, a wide range of pavilions and product zones are spread throughout the halls. These include SalonEurope, Premium Wool Zone, Verve for Design, All About Sustainability, Functional Lab, Asian Pavilions and lastly Group Pavilions. Besides these pavilions and product zones, Intertextile Shanghai’s will organise various fringe programme like the Intertextile Directions Trend Forum, several seminars and panel discussions.
SOURCE: Fibre2fashion
The Industrial Fabrics Association International (IFAI), the organiser of the IFAI Expo 2017 event, is looking for presentation topic ideas and interested speakers. Topics include advanced textiles, shade and weather protection, business, and specialty fabrics. IFAI Expo 2017, the premier industrial fabrics expo in North America, will be held from 26-29 September 2017, at the New Orleans Ernest N. Morial Convention Center in New Orleans, LA. The deadline for the submission of applications is 5 February 2017.
Presentation submissions
Submissions will be reviewed and accepted during February and March by committee with selected presenters contacted by staff. The accepted presentations will be announced in April, right before the Expo schedule will become available. All selected presenters will be provided with one complimentary Expo registration, and presenters are considered attendees of the event.
Available Expo education options include:
IFAI Expo is a dynamic event combining textile industry experts, manufacturers, members and attendees to deliver innovative, industry-shaping solutions. According to the show organisers, IFAI Expo can benefit a great number of industry professionals, whether your business is specialty fabrics, advanced textiles or shade and weather protection.
SOURCE: The Innovation in Textiles
Sao Paulo is one of the world's most dynamic and populous cities, Brazil's financial capital and a magnet for economic migrants from neighbouring countries. But as a team led by journalist Ana Aranha and filmmaker Lali Houghton has been finding out for this disturbing episode of Latin America Investigates, it is also home to thousands of clandestine textile sweatshops, in which under-paid workers toil long and exhausting hours in dreadful conditions to mass produce garments for the country's clothing industry.
FILMMAKER'S VIEW
By Lali Houghton
In the heart of Sao Paulo lies a bustling textile sector known as Bras. Its origins began with the arrival of Jewish migrants in the early 1900s. Now it is predominantly run by Koreans, though there is a notable presence of Bolivians, both legal and clandestine, some of whom are trapped in conditions akin to modern-day slavery. The clothes here reach wholesalers all over the country, feeding a massive consumer market, the fifth biggest in the world, at highly competitive prices. And yet keeping prices low comes with a human cost, where the lines between outsourcing and degrading working conditions blur together.
Only a week after we left the Bras neighbourhood, a fire broke out killing five Bolivians. Video footage showed fire fighters extracting burned sewing machines. Labour inspectors spoke of precarious conditions indicative of the illegality and lack of safety the workers were facing. And yet rather than this clandestine industry being curtailed, it has expanded to the outskirts of the city where it is harder to spot. We travelled with a special unit of the Labour Ministry as they pursued a network of sweatshops catering for Brazilian brands. There we documented the "liberation" of a couple called Christian and Delia, who barely a month before had been duped into coming to Sao Paulo from La Paz, Bolivia. They found themselves working 15-hour shifts, Monday to Saturday, without receiving a cent. The manager told them they had to work off the costs of their trip and then had to pay for "training" for the next three months even though they had sewing experience back in Bolivia. Neither of them spoke Portuguese or knew of their rights as workers. This phenomenon goes back to the 1990s. Lamentably it is often Bolivians perpetuating a system of symbolic violence on to their fellow countrymen and women.
It is perhaps conceivable that in an age of rapid and mass consumption an invisible poor migrant population fits into an industry needing cheap labour. But, depressingly, it is not just Brazil's lower-end clothes market that is benefiting from this poor labour. In November 2016, Brazilian high street brand M. Officer was fined $2m by the country's Labour Ministry for failing to monitor outsourced workshops in which Bolivians were found working in degrading, slave-like conditions.
The company has since begun an appeal against the fine, arguing that the Ministry doesn't have the authority to criminalise the case. But this isn't an isolated case. Brazilian labels Marisa, Pernambucanas, Renner, Les Lis Blanc - and, in 2011, even the international brand Zara - have been fined. All are substantial labels found to have similar problems in their supply chains. Their response was virtually the same: they didn't know about or manage outsourcing conditions, though they say they have now improved their monitoring.
At Reporter Brasil, an NGO that investigates contemporary slave-like conditions across all sectors, they have managed to trace dresses from migrant worker to the final store. They discovered garments being sold for 1,000 percent more than the Bolivian worker was being paid to make it. In order to help Brazilian consumers to buy ethically, Reporter Brasil has developed an app in which more than 100 brands are monitored: a green light for the ones that monitor their supply chain and have never been caught using slave labour; a red for those that have been caught, and are unwilling to monitor their chain or refuse to give out information about their suppliers. Wages are pretty much standardised. Even when workers actually pay off their debts and "training fees", their hourly wage is a quarter of Brazil's minimum rate. And yet the twist to this is all too distressing. Thousands of Bolivians will still prefer to settle for long arduous days, sitting at a machine in the same position, sleeping in the premises where they work - where work begins even before you eat your breakfast - than face the uncertainty of unemployment back in their home country. There are 300,000 Bolivians in Sao Paulo, 90 percent of them, according to the Labour Ministry, work in the textile industry. How many of them are modern-day slaves is hard to know. But as long as the market perpetuates the same cycle, others will follow. Ultimately, the Brazil experience is no different from most other countries', although in the West it is more globalised. We all like to pretend to be ethical but do we prefer to turn a blind eye?
SOURCE: The Aljazeera
Sri Lanka’s total export earnings fell 1.68 percent in the first 10 months to $8,675 million compared to the corresponding period in 2015. Cumulative export earnings of spices during the period January to October fell 24.17 to USD 220.07 million compared to the same period in 2015 while earnings from vegetables were down 4.55 percent to USD 19.52 million and fruits came down 1.86% to USD 30.11 million. In the first 10 months of 2016, total export earnings from cut flower and foliage, ornamental fish and diamonds, gems and jewellery fell , 2.63%, 30.84%, 22.24% to USD 11.86 million, 10.74 million and 210.11 million respectively as against the corresponding period in 2015.
Total export earnings from leather and leather products, boat building and footwear dropped 7.40% and 66.98% to USD 18.89 million and USD 58.84 million respectively compared to the same period in the previous year while total wood and wooden products and footwear export earnings recorded an increase of 7.28% , 38.72% by earning USD 50.41 million and USD 100.56 million respectively. Tea exports were also down 6.25% at USD 1,044 million during January –October period in 2015, while other export crops earnings fell 17.14 to USD 408 million compared to the same period in 2015. The export earnings of natural rubber and coconut rose 18.35 , 2.28 to USD 26.31 and USD 458.84 million respectively. Textile and apparel export earnings has recorded an increase of 2.28% by earning USD 4,092 million as against the corresponding period of the previous year. In the first 10 months of 2015 and 2014, textile and apparel export earnings stood at USD 4,001 and USD 4,039 million respectively.
SOURCE: The Daily News
China's yuan firmed slightly against the dollar on Thursday, as dollar liquidity offered by major state-owned banks was bigger than demand by bank clients for the greenback, traders said. The People's Bank of China set the midpoint rate at 6.9497 per dollar prior to the market opening, slightly weaker than the previous fix of 6.9495. The spot market opened at 6.9547 per dollar and was changing hands at that level at midday, 13 pips firmer than the previous late session close and 0.07 per cent weaker than the midpoint. Traders said dollar purchases by bank clients - both companies and individuals - rose on Thursday morning, forcing state banks to sell dollars at around the 6.9555 level.
State-owned banks have regularly sold dollars over the past two months in what traders believe is part of efforts to prevent the yuan from falling too rapidly after the currency tumbled to 8-1/2-year lows last month. The rise in dollar demand came after China's central bank late on Wednesday night described as "irresponsible" a media report that the yuan had weakened beyond the 7.0000 per dollar level in the onshore market on Wednesday. The central bank did not say which media made the report. One trader at a Chinese bank in Shanghai said the report spurred speculation on yuan depreciation and "some people have started purchasing dollars".
China's yuan is on course to finish the year with a record yearly loss of nearly 7 per cent of its value against the dollar. Traders said the pace of depreciation this year was slightly faster than their expectations, and they predict the Chinese currency would continue to face depreciation challenges in the first quarter. In the offshore market, the yuan weakened past 6.98 per dollar level on Thursday morning, widening the gap between the onshore and offshore yuan to around 250 pips at one point. As of midday, the offshore yuan was trading 0.27 per cent away weaker than the onshore spot at 6.9735 per dollar.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 95.61, weaker than the previous day's 96.01. The global dollar index fell to 103.03 from the previous close of 103.3. Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 7.2955, 4.74 per cent weaker than the midpoint. One-year NDFs are settled against the midpoint, not the spot rate.
SOURCE: The Economic Times
China diluted the role of the dollar in a trade-weighted foreign exchange basket and added a further 11 currencies as officials seek to project an image of stability in the yuan. The weighting of the dollar will fall to 22.4% from 26.4% in the basket from January 1, China Foreign Exchange Trade System said in a statement Thursday. Additions include the South Korean won, the South African rand, the United Arab Emirates' dirham, Saudi Arabia's riyal, Hungary's forint, Poland's zloty and Turkey's lira.
While the yuan has tumbled to an eight-year low against the greenback, it's trading near a four-month high against the CFETS RMB Index. Senior Chinese central bank officials have vowed to maintain stability against the basket as capital outflow pressures mount. “The move is aim to reduce the impact of dollar strength on the overall performance of the basket,“ said Christy Tan, head of markets strategy in Hong Kong at National Australia Bank Ltd. “It will also make it easier for China to manage yuan stabili ty versus the basket, since the yuan will need to appreciate less versus other non-dollar currencies amid dollar strength.“ The weighting of the basket will be evaluated on an annual basis and updated at the “appropriate time“, according to CFETS. The new composition covers exchange rates of the nation's main trading partners, it said.
SOURCE: The Economic Times
