Rising global commodity prices and an unfavourable base effect helped wholesale price index (WPI) inflation inch up to a two-month high of 3.39 per cent in December 2016. The latest WPI print was substantially higher than the contraction of 1.06 per cent in December 2015 and growth of 3.15 per cent in November. Manufactured products inflation — which largely contributed to the uptick in December 2016 WPI — came in at a 14-month high of 3.37 per cent, higher than 3.2 per cent in the previous month. However, food inflation has turned negative for the first time since August 2015 at (-) 0.7 per cent in December 2016 as against 1.54 per cent in the previous month. Primary food inflation was sub-zero after a gap of 15 months, led by a month-on-month plunge in vegetable prices, as well as modest correction in prices of fruits and pulses. However, the extent of decline in prices of perishables and pulses at the wholesale level exceeded the correction at the retail level.
Rate cut hope
WPI and CPI (which softened to 3.41 per cent in December) are almost converging in December 2016, giving room for the RBI to undertake expansionary monetary policies in February during the next round of the monetary policy review. In the coming months, there is high probability of WPI inching up and CPI softening. The RBI, which is expected to be more guided by CPI movements, is expected to frontload its rate cuts for this year, say economists. Reacting to the latest WPI print, Aditi Nayar, Principal Economist, ICRA Ltd, said that the trajectory of WPI inflation is likely to chart a rise in January and February, before recording a dip in March. “In ICRA’s view, the wedge between the two inflation metrics would re-emerge in January, with WPI inflation expected to exceed CPI inflation for the next few readings,” she added. CARE Ratings, said in a note that the marginal uptick in inflation has come from increased non-food articles, fuel and power and manufactured products. “We do expect WPI inflation to remain in the range of 3.5-4 per cent for the rest of the year primarily due to increase in the price of crude oil and other manufactured products.
Source: The Hindu Business Line
The Goods and Services Tax (GST) Council on Monday broke a deadlock over issues of administrative control over assessees and broadly agreed to roll out the GST from July 1, instead of the earlier deadline of April 1. Whether a state or the Centre will assess an entity would be decided by a computer programme. The Council also resolved a logjam over the right to tax economic activities within 12 nautical miles from India’s coasts. Against the earlier proposals of reserving administration of assessees up to Rs 1.5 crore in annual turnover for states, or of allowing both the Centre and states to jointly administer these, the Council decided to blend the two suggestions. The entire tax base would be shared between the Centre and states in a predetermined ratio, Union Finance Minister Arun Jaitley, the chairman of the Council, said at a press conference after the meeting.
The Centre agreed the states would have the powers to administer 90 per cent of assessees with an annual turnover of up to Rs 1.5 crore. The Centre will have the powers to audit, send notices and scrutinise the remaining 10 per cent. Only West Bengal’s Amit Mitra did not agree, Jaitley said. Mitra later told reporters this agreement pertained to services only. Assessees with a turnover over Rs 1.5 crore will be administratively controlled by the Centre and states in equal measure. However, Jaitley said no assessee would be controlled by two authorities and there would be computer-based enforcement at both the Centre and the states. Those assessees who fall under the integrated GST (IGST) — for the movement of goods and services between states — will also be administered by the Centre and states, depending on their annual turnover (Rs 1.5 crore, or more). However, if there is a dispute between states over the place of supply, the Centre will have the power to administer those assessees. In all situations, the Centre will retain the power to collect this tax. “Revenue will mostly come from entities with turnover of more than Rs 1.5 crore. Under that we get just three per cent revenue,” said a central government official. On whether or not assessees will change every year, he added, “Mostly, they will remain the same over a two- to three-year period. But, we are yet to take a call on that.” Mitra also opposed the power of arrest given to officials under the GST. The proposed structure has an arrest provision for tax evasion of Rs 2 crore and above. The offence is bailable up to Rs 5 crore. Mitra said, “Many of us strongly oppose it… Our officers do not have the right to arrest. It was, of course, watered down but is still there.” The Centre also gave the right to tax economic activities within 12 nautical miles to coastal states, even as it will be the territory of the Union. At present, these states have the right to tax these activities. The next meeting of the Council has been convened on February 18. By that time, changes to various Bills will be worked out and these will ready to be passed by Parliament and state Assemblies. Rules and segment-wise GST rates will take till March to finalise, pushing the introduction of the GST to July 1. Jaitley said the tax could be imposed at any time during the year, and trade and industry would get time to prepare for it. M S Mani of Deloitte Haskins & Sells LLP, said, “We hope the subsequent legislative processes are calendarised, so that the final legislation with relevant rules is available to businesses at least three months ahead of the roll-out.” According to Pratik Jain of PwC, uncertainty over the GST was now over and India Inc would be happy.
Source: Business Standard
The International Monetary Fund (IMF) has cut India's growth forecast for the current fiscal by one percentage point, citing demonetisation woes. It sees India ceding the tag of the world's fastest growing major economy to China in FY17. In an update of its flagship publication the World Economic Outlook, the IMF said India is likely to grow by 6.6 per cent only in FY17, down from 7.6 per cent estimated earlier and marginally behind China that is pegged to grow at 6.7 per cent in 2016. "In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative," the IMF said in its report. India on November 8, 2016 cancelled the legal tender of Rs 500 and Rs 1,000 notes, invalidating in one stroke over 86 per cent of the cash in circulation. The shortage of currency has according to anecdotal evidence caused a slump in demand and widespread job losses, though official data released so far shows economy has done better than feared. Industrial production was up 5.7 per cent in November 2016, exports touched their highest since March 2015 in December 2016 and tax collections have been robust. Last week, the World Bank also reduced India's FY17 growth forecast to 7 per cent from 7.6 per cent. The IMF report sees the impact of note exchange lasting in the next fiscal year as well. The forecast for FY18 has been trimmed by 0.4 percentage points to 7.2 per cent. The forecast for FY19 is unchanged at 7.7 per cent. The forecasts for FY18 and FY19 show India wresting back the fastest-growing economy status from China, whose growth is forecast to slow further to 6.5 per cent in 2017 and 6 per cent in 2018.
Faster Global Growth
IMF sees global economic activity pick up pace in 2017 and 2018, especially in emerging markets and developing economies. Global growth is forecast at 3.4 per cent in 2017 against 3.1 per cent in 2016. The "uncertainty surrounding the policy stance of the incoming U.S. administration and its global ramifications" is seen as a big risk to the forecast.
IMFcontent
This forecast also incorporates firmer oil prices following the agreement among OPEC members and several other major producers to limit supply. The global growth could rise "if policy stimulus turns out to be larger than currently projected in the United States or China." A fiscal stimulus for the US economy is expected under the new Donald Trump administration.
Source: Economics Times
The Centre is also roping in States and local authorities to look into issues relating to local taxes and other problems that trouble start-ups.Commerce and Industry Minister Nirmala Sitharaman on Monday hinted that the government was likely to come out with incentives including tax-related ones for start-ups in the upcoming Union Budget. Her ministry, she said, had been pushing for raising the tax holiday for start-ups to seven years from the current three years. “That suggestion we have given to the Finance Ministry. We have to wait. Let’s see what this Budget is going to offer,” she said. Ms. Sitharaman was participating in an event to mark the first anniversary of the Start-Up India initiative. A suggestion to exempt start-ups from the minimum alternate tax had also been forwarded to the Finance Ministry, she said, adding that the government was looking to do away with the legislative hurdles faced by start-ups. The Centre is also roping in States and local authorities to look into issues relating to local taxes and other problems that trouble start-ups. The Department of Industrial Policy and Promotion (DIPP) will shortly hold a meeting with the RBI, banks, SIDBI and venture capital funds to discuss the hurdles on start-up funding. DIPP Secretary Ramesh Abhishek said while many States were bringing in policies to boost start-ups, they needed to do more. “We are also involving corporates and banks to support start-ups. Nothing is cast in stone and we can rework at the definition of start-ups. We are also working on extending easy funding to start-ups and providing a suitable environment,” he said. Several top companies had been asked to use their corporate social responsibility funds to help start-ups. States were looking to ease labour and environment norms for start-ups, he added. Ms. Sitharaman wanted start-ups to enter into segments such as waste management, fuel aggregation, animal husbandry and veterinary science. “I also want them to look at how we can make our existing cities smart,” she said. A virtual hub, which will be a one-stop solution platform for queries and serve as a ground for investors, incubators and start-ups, will soon be unveiled.
Source: The Hindu
The Union Textiles Minister Ms. Smriti Zubin Irani said that given the entrepreneurial spirit of Gujaratis and the investment inflow, the textile story of Gujarat has just begun. Ms. Irani was addressing the ‘Make in Gujarat’ theme seminar on “Trends & Innovation impacting the Textile Value Chain”, at Vibrant Gujarat Global Summit in Gandhinagar, Gujarat. She said that as an area with one of the largest concentrations of textiles in India, Gujarat is a one-point sourcing hub for all kinds of textiles. The Minister also said that there are huge possibilities in textile education in Gujarat. She said that the skill development programme in textile sector conducted at 28 ITIs of Gujarat running the Textiles courses has recorded a placement figure of 75%. The Minister said that two major institutes of Gujarat, namely, NIFT and NID, and various engineering colleges offer degrees in textile technology, textile processing and textile engineering. The Minister witnessed signing of MoUs worth Rs. 8,835 crore in textile sector during the seminar. MoUs have been signed in different sectors such as textile parks, textile processing, machinery, carpet development, etc. The Textiles Minister said that Gujarat produces 29% of India’s total cotton production; she said this indicates the trust of textile industries in the prospects of the state. Ms. Irani assured the support of her Ministry to the development of the textile value chain of Gujarat and to explore possibilities in technical textiles and research. Mr. Jayesh Radadiya, Minister of Food, Civil Supplies and Consumer Affairs, Cottages Industry, Printing and Stationery, Government of Gujarat; Dr. Kavita Gupta, Textile Commissioner, Government of India; Mr. Shishir Jaipuria, Chairman, FICCI Textile Committee; Mr. Sunaina Tomar, Principal Secretary, Education Department, Government of Gujarat and other dignitaries were also present on the occasion.
Source: Tecoya Trend
Restoration of duty drawback rates on babies garments would increase the competitiveness of the garment exporting units, said Raja M Shanmugham, President,Tirupur Exporters’ Association. Hailing the move, he said the duty drawback rate has been restored to 7.6 per cent (from 7.3 per cent) and the value cap to Rs. 30 (up by Rs. 1) with immediate effect. “Exporters are operating on wafer thin margins. This will help the sector compete in the global market,” he said.
Source: Business Line
India’s Textiles Ministry and Ministry of Environment are soon expected to host a meeting in order to find short- and long-term solutions for the challenges being faced by domestic handicrafts exporters.In her address at an export award function, while pointing out the wood industry and the woodcrafts sector need the support of Environment Ministry, Union Minister of Textiles, Smriti Irani said that her colleague in the Environment Ministry Anil Madhav Dave was extremely cognizant of the challenges faced and they would soon convene a meeting between the two ministries so that the issues with regard to the handicrafts exporters could be resolved. Moreover, the Minister urged the exporting community to come forward for the education of the children of the craftsmen which would be fully sponsored through the industry participation. To which EPHC Executive Director Rakesh Kumar added that the body had a target of educating about 10,000 children in the first phase as a social welfare measure.
Source: Apparel Resources
The rupee strengthened by 5 paise to 68.05 against the dollar in early trade today at the Interbank Foreign Exchange. The rupee strengthened by 5 paise to 68.05 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst higher opening in the domestic equity market. Forex dealers said besides selling of the American greenback by exporters and banks, weakness in the dollar against other currencies overseas supported the rupee. Further, a higher opening in the domestic equity market influenced the rupee uptrend, they added. On Monday, the rupee had staged a mild recovery by gaining 6 paise to close at 68.10 on fresh dollar selling by banks and encouraging macro-economic data.
Meanwhile, the benchmark BSE Sensex rose 72.30 points, or 0.26 per cent, at 27,360.47 in early trade today.
Source: The Financial Express
As the controversy over the picture of Prime Minister Narendra Modi on the calendar of Khadi and Village Industries Commission (KVIC) continues, the Shri Gandhi Ashram in Sewapuri here struggles for survival. The ashram was founded in 1946 by a group of Gandhians under the guidance of the Father of the Nation himself. For decades, the ashram played a crucial role in the promotion of khadi. In its journey spanning seven decades, the ashram witnessed several elections and governments and continues to carry forward the legacy of the Mahatma. The ashram still imparts training in weaving and spinning and has a store on its premises where clothes produced in other ashrams are also available. “The ashram was set up on November 5, 1946 by Akshay Kumar Karma, Dheerendra Majumdar, Vichitranarayan Sharma and a few other Gandhians under the guidance of the Mahatma to promote khadi and provide employment to weavers,” said Pradbhunath Singh, principal of the training centre at the ashram. This is one of the three ashrams in the country that provides training in spinning yarn and weaving. The training in spinning and weaving started here in 1950. In 1955-56, the ashram came under the purview of the Khadi Village Industries Commission (KVIC). Traditional weavers and spinners were roped in as trainers. Besides khadi, the ashram also used to train youths in making of incense sticks, leather goods, mustard oil and spices. The Sewapuri ashram is one of the three ashrams in the country that provide training in spinning yarn and weaving. (Adarsh Gupta/HT) Though incense sticks are still made here, the production of other goods was stopped about a decade ago. “Vinoba Bhave visited the ashram a number of time. Former Prime Minister late Lal Bahadur Shashtri also paid a visit here. It was known as a model centre of khadi. Even today, many people visit the ashram,” said Singh. “Youths are trained in making pure cotton, silk and woollen khadi. Spinning wheels are preserved in the store of the ashram. The old spinning wheels were replaced by new ones,” he said. Singh, however, remained reluctant to get the photographs clicked. “We have spinning wheels and handlooms. About 30 youths undergo training every year. After training, they get employment in khadi ashrams,” he said. Singh, who has been serving the ashram for the last four decades, is not happy with the present state of affairs. He hopes the glorious past of the ashram would be restored one day. Deputy chief executive officer, KVIC, SN Shukla said, “We will provide 500 solar-operated spinning wheels to the ashram. Khadi production will begin soon and all preparations have been made in this connection.” Dr Rajnikant, who works for the cause of weavers and spinners, said, “The spinning art is dying in the absence of promotion and proper care. Sewapuri’s Gandhi ashram has played an important role in the promotion of khadi over the years. Government should pay attention to it.”
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Source: The Hindustan 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$ 53.78 per barrel (bbl) on 16.01.2017. This was lower than the price of US$ 54.29 per bbl on previous publishing day of 13.01.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3665.58 per bbl on 16.01.2017 as compared to Rs. 3704.29 per bbl on 13.01.2017. Rupee closed stronger at Rs. 68.16 per US$ on 16.01.2017 as compared to Rs. 68.23 per US$ on 13.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 16, 2017 (Previous trading day i.e. 13.01.2017) |
Pricing Fortnight for 16.01.2017 (Dec 29, 2016 to Jun 11, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
53.78 (54.29) |
54.24 |
|
(Rs/bbl |
3665.58 (3704.29) |
3691.57 |
|
|
Exchange Rate |
(Rs/$) |
68.16 (68.23) |
68.06 |
Source: PIB
The European Commission (EC) has proposed that a significant part of the remaining import duties on Sri Lankan products should be removed by the European Union in exchange for the country’s commitment to ratify and effectively implement 27 international conventions on human rights, labour conditions, protection of the environment and good governance. “These one-way trade preferences would consist of the full removal of duties on 66 per cent of tariff lines, covering a wide array of products including textiles,” the Commission said in a statement. These preferences would come under a special arrangement of the EU Generalised Scheme of Preferences, known as GSP+. The arrangement is designed to support developing countries by fostering their economic development through increased trade with Europe and providing incentives to take tangible measures towards sustainable development. The European Parliament and the Council have now up to four months to raise potential objections before the measures become effective. “GSP+ preferences can make a significant contribution to Sri Lanka’s economic development by increasing exports to the EU market. But this also reflects the way in which we want to support Sri Lanka in implementing human rights, rule of law and good governance reforms,” EU Trade Commissioner Cecilia Malmström. GSP+ scheme offers the incentive of increased trade access in return for further progress towards the full implementation of 27 international conventions, and provides a platform for engagement with beneficiaries on all problematic areas. As is the case for all GSP+ countries, the removal of customs duties for Sri Lanka would be accompanied with rigorous monitoring of the country’s progress in the area of sustainable development, human rights and good governance. Sri Lanka had already benefited from GSP+ in the past. In 2010, the EU stopped the preferential treatment for Sri Lankan imports due to the failure to address reported human rights violations in the country. In 2015, the new government of Sri Lanka set out a path of major reforms aiming for national reconciliation, respect of human rights, the rule of law and good governance principles, as well as sustainable economic development. The Sri Lankan government applied for GSP+ in July 2016 and the Commission’s assessment has concluded that it met the GSP+ entry criteria set out in the EU Regulation. The EU is Sri Lanka’s biggest export market accounting for nearly one-third of Sri Lanka’s global exports. In 2015, total bilateral trade amounted to €4.7 billion. EU imports from Sri Lanka amounted to €2.6 billion and consisted mainly of textiles as well as rubber products and machinery. There are currently 8 GSP+ beneficiaries: Armenia, Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, Paraguay and the Philippines.
Source: Fibre2fashion
Contrary to widespread perception in Malaysia’s business circles, the country’s textile sector, a shadow of its past glory due to rising costs and loss of competitive edge, is not a “sunset” industry. Indeed, the textile industry should be promoted and encouraged to flourish, experts say. This is the verdict of a number of experts at the just-concluded Heimtextil 2017 trade fair in Frankfurt, the world’s biggest event for home textile industry. A single Malaysian company, Fernex Sdn Bhd, from Selangor displayed its bedding products mainly pillows amid the huge contingent of exhibitors from other Asian countries such as Singapore, Taiwan, Hong Kong and South Korea, as well as China, India, Pakistan, Bangladesh and Vietnam. “I don’t think it is a sunset industry,” said Helmut Geisler, a German agent who sources a number of home-textile products from Asia for big German trading houses and department stores, and has a good knowledge of the Southeast Asian market. “The problem, in my personal view, is that many Malaysian textile companies are probably not aware of this fair or they are deterred by the high costs of participation. “It’s also one way to make yourself known to international buyers, particularly at a time of recession. “By participating in a trade fair, you can strengthen your foothold within the market,” he explained. Slower economic growth has, of course, hit Asian exports while the Brexit issue and uncertainty of the US market under the new Donald Trump administration have added to their anxiety. German buyers advise Malaysian companies to see the Heimtextil as an eye opener for those wanting to enter a sophisticated market, urging Malaysia’s textile association and other organisations to send a fact-finding mission to see the event’s inherent business potential. “While many experts expect the slowdown to continue for some time, you have to position yourself in the market when the recovery process starts,” one buyer said. Olaf Schmidt, vice president (textile fairs and textile technologies) at Messe Frankfurt GmbH, which organises the Heimtextil show, was equally perplexed by Malaysia’s low-key presence at the show. “After all, Heimtextil is the international platform for export contacts. “If Malaysia’s textile industry wants to succeed, it cannot ignore this event despite the global economic crisis which is making companies resort to austerity measures, including job cuts,” he said. But such austerity measures should not exclude participation in trade fairs,” Schmidt emphasised in an interview with Bernama. Even as many countries hit by slower growth in some of their traditional markets have had a decline in sales before and during the Christmas season when consumer buying is at its peak, this period in Germany had been “satisfactory”, said Schmidt. Malaysia’s main exports to Germany include electronic and electrical products, electrical machines, printers, machinery parts and components, rubber products and optical lenses. But Malaysia also has good potential to sell value-added textile products, including technical textiles particularly functional textiles which other equally expensive producing countries such as Taiwan, Singapore and Turkey are doing. “The Heimtextil is not just a German fair. It has a large international profile and you meet buyers here from every corner of the world under one roof. “We also see a growing trend of buyers from Asia, the Middle East and North America coming here to buy and get the latest trends, designs and technology in the textile sector,” said Schmidt, an internationally renowned expert on the global textile industry. Malaysians, he added, could learn a great deal by observing the trends in textile printing, weaving and designing, and new concepts such as digital printing which was showcased at the show. — Bernama
Source: The Borneo Pos
Demonetisation is going to be positive for India, though in the short run, there could be some disruptions, said Aaron Low, Principal at Lumen Advisors LLC. In an interview on the sidelines of the CFA Institute's India investment conference last week, Low said the positive thing about India is that the Indian share in the EMs is going to be a bigger slice of a smaller pie.
Edited excerpts:
If Trump goes ahead with a fiscal stimulus, do you think it will prompt the Fed to hike more aggressively? The market has already priced in the hikes that are going to be put in place.It can easily absorb 2-3 rate hikes this year. Fed chairperson Janet Yellen is not going to be overly aggressive.She will make sure inflation is on the horizon and the job market continues to be stable. We are not going to see a lot of nasty surprises on that side.
Do you expect dollar to rise significantly?
The strength in the dollar bodes well for commodities and developed markets growth in terms of risk premium given to those assets. We have seen reallocation in the past couple of months back into US equities. There is obviously a limit to where the dollar could go. Given that it has spiked up in such a short period of time, it needs a period of digestion. Certainly another 10% hike in the dollar is going to be a little bit challenging for the US exports sector. Already we are seeing a diminishing global trade environment. It is not in anyone's interest that the dollar goes up another 10-15%. The US currency is going to be driven partially also by how prospects of Asian currencies are going to be given that most of the flows are driven by US dollar.
What are the key risks to Asian markets in near term?
One of the key risks would be aggressive tones between the US and China.The tones between Barack Obama and Xi Jin Ping have never been on the friendliest of terms, and Trump tends to be little bit more aggressive. With prospects of the Trump presidency and how that impacts all of Asia, the challenges will be policy risks and how these things realign themselves. America being friendly to Russia does not necessarily mean it is a good thing for China because it has always been counting on Russia to have a more aggressive tone.
What is your view on Indian markets after the demonetisation?
India is in a much better place than any other parts of Asia not only because of the current growth prints but also because the steps that India wants to execute seem to be in the right direction. Demonetisation has always been a favoured policy initiative to wipe out excesses but how it is executed can be a problem. For India, in the long run, it is going to be positive though in the short run, there could be some disruptions. But so far from the economic prints, we are not seeing those disruptions coming through.
FIIs have already been long on India. Does that limit scope for upside?
The weight to emerging markets has not been as strong as it used to be in the past 15 years' average because people have been pulling out of emerging markets and going back to the developed markets and the US.But the positive thing about India is that the Indian share of EMs is going to be a bigger slice of a smaller pie.India adds an interesting dimension to the exposure to EMs. Most investors' allocation to emerging markets has been driven by their desire to get manufacturing and growth exposure, which is what Asia stands for. But if you have an onset of manufacturing and growth weakness, then India still has the growth factor. India more importantly has the service sector, and it adds a positive side to the investment that no other country in Asia can quite replicate.
Source: Economics Times
Close to 70,000 trade visitors from across the world attended the recently concluded Heimtextil 2017, the leading trade fair for home and contract textiles in Frankfurt, Germany. A total of 2,963 exhibitors from 67 countries presented their new textile products and designs and growth was driven primarily by Brazil, China, UK, Italy, Japan, Russia, US and UAE. “The figures speak for themselves - Heimtextil grew once again in 2017 in terms of its visitor and exhibitor numbers. I am especially pleased about the high quality of the products exhibited as well as the intensity of discussions between purchasers and exhibitors. Frankfurt is the international meeting place and beating textile heart of the interiors industry,” said Detlauf Braun, CEO of Messe Frankfurt. Visitors consider the sector’s economy to be in a better place even than last year. Visitors from Germany in particular consider the situation to be good. “The feedback from our visitors was thoroughly positive and we were able to acquire both export and domestic contacts. We will be leaving this Heimtextil with a good feeling and look forward to returning next year,” said Andreas Klenk, CEO, Saum & Viebahn. A great interest was shown in textile design at the fair along with the feel of a material. The colourful fabrics and varied designs by well-known designers and young talent were very popular and attracted a lot of attention. Exhibiting companies also used the creative hotspot to acquire new designs for their upcoming collections. “We can also confirm the trend towards more materiality. We have seen an increased interest from visitors in our new fabric collections. The quality of visitors was very high. We met very high-quality, good international purchasers and excellent potential new customers. We are therefore very satisfied with our attendance at Heimtextil,” said Andreas Zimmermann, CEO Zimmer + Rohde. Numerous innovations were also seen in the bed segment. At the sleep campaign stand, visitors and exhibitors alike were able to inform themselves about the four things that can influence sleep. Heimtextil will continue to focus on the topic of sleeping over the coming years, said the organiser. “Visitors primarily came from the Middle East, China, the eastern European region and Scandinavia. We also enjoyed intense discussions with American and German customers. This is also the great strength of Heimtextil. You’ve can shake hands with the world here. It is not just about sales, but also communication and establishing relationships or simply getting direct feedback on our products,” Robert Kocher, European CEO of Mediflow. The next Heimtextil, international trade fair for home and contract textiles, will take place from January 9-12, 2018 in Frankfurt.
Source: Fibre2fashion
Improvements in compliance are crucial to ensure sustainable growth of the ready-made garment (RMG) industry of Bangladesh, according to a recent report. Better compliance across the sector would require initial investments to improve physical infrastructure, fire protection and funding for operations costs to maintain high levels of compliance. Bangladesh has made progress toward eliminating child labor and curtailing long working hours, but the Tazreen Fashion fire of 2012 and the Rana Plaza collapse of 2013 demonstrate that compliance is still lacking in many respects, particularly when it comes to safety. The disasters have focused global attention on Bangladesh’s sector, heightening consumer awareness about garment production and increasing the need to improve compliance, says Copenhagen Consensus Centre report put forward by a team of four Bangladeshi economists, led by Wasel Bin Shadat, a lecturer at the University of Manchester, examining investments that will improve Bangladesh’s vital RMG sector Ensuring that companies comply with safety regulations is important not only for worker safety, but also to increase opportunities to export. The report estimates that industry-wide compliance would cost between Tk 164 billion and Tk 234 billion. “Greater compliance reduces the probability of accidents, increases productivity, lowers employee turnover, and makes the sector more attractive to both existing and new buyers,” notes the report. Based on the research, factory compliance instituted across the sector would boost export earnings by an estimated 10 per cent. This would help ensure that the RMG sector reaches its self-defined target for a total export value of $50 billion. Driven by the export increase, the overall benefits from investing in RMG compliance would then be 14 times higher than the costs. The report also says that the RMG Palli ‘special zone’ that’s perfectly suited for garment production would essentially be an industrial park, with ample infrastructure for factories and straightforward ways to monitor compliance, allowing firms to produce readymade garments efficiently and safely. A separate RMG zone would allow factories to cluster in a single geographic location, which would reduce production costs, allow for simple transfer of knowledge and technologies, make pollution mitigation easier, and promote other positive spillover effects. The zone would employ an estimated 300,000 people at more than 250 factories. The creation of an RMG Palli will result in an additional 142 factories over the next three years, when compared to the long-run growth of the industry. The incremental costs to build these additional factories are estimated to be Tk 1.3 billion. With increased productivity and better capacity utilisation within the special zone, the report estimates that the total export earnings from more than 250 factories would equal Tk 312 billion. Each taka spent on the investment would do an estimated 8 takas of social good.
Source : Fibre2fashion
Producing contamination free cotton is the biggest task for the country, according to the Cotton Corporation of India (CCI). Due to this issue, Indian cotton is sold on discounted rates in comparison to equivalent foreign cotton. The problem is significant at farm level due to small land holdings by farmers, manual picking and different climatic conditions.
“Indian cotton also gets contaminated with various foreign materials like jute twine, dust, plastic, fibre, varietal admixture and more due to poor handling at farm level and during processing of cotton in ginning and pressing factories,” MM Chockalingam, chairman and managing director (I/C), CCI told Fibre2Fashion in an exclusive interview. Ministry of agriculture is making various efforts for providing necessary training to cotton farmers and issuing advisory notice at farm level to avoid contamination. “Ministry of textiles is also taking this issue very seriously and proposed various measures in its 12th five year plan by reviving the Mini Mission (MM) III & IV under technology mission on cotton-II in such a way that the least contaminated cotton may be available to the textile industry and farmers may get remunerative prices for their produce,” added Chockalingam. Under MM-III, besides developing the infrastructure of market yards, the focus is on providing training to farmers on modern farm practices and handling indigenous technology for plucking kapas faster without adding contamination through prototype kapas plucker machine. This will not only help farmers in reducing their input cost of labour, but will also prevent contamination at farm level, according to the CCI chief. As for MM-IV, besides modernisation of ginning and pressing factories with sensors for removal of contamination, the focus is to introduce bale-by-bale third party testing and certification systems. Once it is implemented, these measures will ensure removal of contamination at all stages and Indian cotton will fetch better prices, making Indian cotton capable of competing at world level with quality adhering to international standards, he explained. Chockalingam also said that the government has adopted various measures like technology mission on cotton, integrated cotton cultivation, high density planting system and instrument based quality evaluation. This has led India to become one of the largest cotton growing states with reasonably good quality of cotton. With enhanced research efforts made by the government, basic fibre parameters as well as quality of ginning and pressing have also shown tremendous improvements.
Source: Fibre2fashion
Textiles should be at the heart of Taiwan’s thinking while developing new global trade arrangements and strategies, according to president Tsai Ing-wen. She felt that there is considerable development potential for the textile sector in Central America, according to a statement released by her office during her recent four-nation tour to the region. “This is the time to begin thinking about new arrangements and new strategies, starting with the textile sector,” Ing-wen said, according to the statement. During her week-long state visit to Honduras, Nicaragua, Guatemala and El Salvador, Ing-wen said that these Central American nations have free trade agreements with the US, which could be advantageous for Taiwanese manufacturers. Chan Cheng-tien, Taiwan Textile Federation chairman, was also part of the Taiwanese delegation that toured these nations.
Source: Fibre2fashion
“Everything that can become digital, will become digital.” This was just one of the assertions – he’s rather good at them – made by Mike Horsten, general marketing manager for Mimaki, in a presentation during last week’s Heimtextil show in Frankfurt. It does appear that a significant shift in the established textile manufacturing and supply chains is now underway, and advances in digital printing are certainly a driving factor. These changes apply not only to fast fashion, but to home furnishings and to technical textiles too. By coincidence or not, during the show, Amazon announced that it would invest significantly in the Israel-headquartered digital printing equipment manufacturer Kornit. Following previous machine purchases, Amazon has selected Kornit to supply it with a large number of on-demand textile production systems. Going further, Amazon will purchase around $38 million in Kornit shares over the next five years. Kornit already has more than 1,200 of its digital printing machines installed worldwide, with the majority of them being direct-to-garment systems. Its Allegro unit, however, is a roll-to-roll system that can accommodate virtually any fabric, and its advantages are obvious.
“It’s flexible, simple, there’s little investment risk and it wastes way less energy and water than analog production,” said Merav Zimerman, Kornit’s product marketing manager. “It’s possible to print endless designs in continuous mode and we have customers running machines 24 hours a day on orders for just one or two metres, with up to 50,000 designs being cut and mailed directly to people.” The technology, she added, is leading to order activated production. “Manufacturers and retailers are both moving from supply and demand to demand and supply, and to purchases before production,” she said. “Imagine how much money both manufacturers and retailers can save.” Meanwhile, around 120 Mimaki digital printers are now responsible for every garment being produced by Inditex with a Zara label on it. As far as home textiles are concerned, Mike Horsten provided some surprising statistics. The global textile market, he said, is now worth an annual $633 billion, with 58% of this going into apparel, 24% into technical textiles and 18%, or around $114 billion, into home textiles. In 2015, the European Union imported home textiles worth €17.8 billion, with 49% of it coming from developing countries. Yet only 1% of the home textiles produced in China are exported to the EU. “Supplies by us to China have increased by 20% and they are now buying more from us than we buy from them, because people want things faster and personalised,” he said. “The business model is changing and the value chain is being reset.” This change was also noted at a press conference for the forthcoming Techtextil and Texprocess 2017 exhibitions. Manfred Junkert of textile+mode provided an overview of Germany’s textile and fashion industry, which comprises some 1,400 companies employing 132,000 people and has a turnover of €32 billion, around 60% achieved by textiles alone. “Digitisation is perhaps the greatest challenge and the biggest opportunity facing our industry for many decades,” Junkert said. “At Texprocess 2017 in particular, we will see the growing integration of design, processing and logistics of both clothing and technical textiles,” added Elgar Straub, managing director of VDMA Textile Care, Fabric and Leather Technologies. “This is resulting in a higher level of automation, shorter reaction times, the highest flexibility and the greatest possible efficiency. It is resulting in the reshoring of the manufacture of high-priced products and will create new jobs, but there will be a change to the way in which work must be structured.” Digital printing, he added, is now having a major impact, and at Texprocess 2017, the digitised combining of the printing and cutting stages will be the next move forward to be demonstrated in the manufacture of both clothing and shoes, and technical textile and nonwoven products. Mimaki was also involved in the ‘Digital Textile Micro Factory’ which ran throughout the Heimtextil show to demonstrate the ease with which such operations can be established. “We set it up in just 24 hours to demonstrate what can be done simply and easily and achieve instant differentiation in the market,” said Mike Horsten. “Exclusivity is now the margin maker. Will digital replace analog? Yes it will.” Heimtextil 2017 attracted 2,963 exhibitors from 67 countries to Frankfurt last week.
Source: Innovations in Textiles
With Mr Trump on his first day in office vowed to scrap the TPP deal, Vietanamese textile and garment companies charting new paths for expansion. Than Duc Viet, deputy general director of Vietnam's Garment 10 the state run textile company said that if TPP falls through, they can always look to Europe or South Korea. After all, they haven't been making all improvements just for the TPP. Mr Duc referring to the Trans-Pacific Partnership, a comprehensive, 12-nation trade pact that would have given Vietnamese exports easy access to a vast market. While this is a setback for Vietnam's industrial policy, resourceful companies already have their own plans for going global well underway. Garment 10, commonly known as Garco 10, is a symbol of Vietnamese industry. The company is taking the likely failure of the TPP in stride, confident that the improvements Mr Duc referred to will serve it well. The garment maker's main factory, now staffed with 400 workers, is the very embodiment of continuous improvement to boost productivity. The company has also invested in physical capital. Affixing buttons and ironing, tasks previously done by hand, were automated in 2014, more than doubling productivity. A year later, an automated distribution system was put in place on a dress-shirt line to deliver to each worker exactly the number of garments that he or she can effectively handle. Both are state-of-the-art technologies in Vietnam. At Garco 10, productivity has risen consistently, leading to higher output and greater quality even as the number of employees stays the same. As an alternative to TPP nations, Garco 10 is setting its sights first on South Korea. A free trade pact between Vietnam and South Korea took effect in December6 2015. Next is the European Union, which is slated to have a functioning free trade agreement with Vietnam by 2018. Vietnam has trade agreements with more than 10 economies, including Australia, Chile and the Asean Economic Community, which links the country to fellow members of the Association of Southeast Asian Nations. Unlike the TPP, these deals do not include rules of origin for products and materials, so exporters can compete on quality alone, Mr Duc said. This means vast opportunities for Vietnam's textile industry, which combines low wages and high quality.
Source: Yarns and Fibers
