The government will support the technical textiles sector in bridging the manpower gap but the industry needs to define the requisite skills, Union Minister The government will support the technical textiles sector in bridging the manpower gap but the industry needs to define the requisite skills, Union Minister Smriti Irani said on Tuesday. (Source: Express Photo) Smriti Irani said on Tuesday. The issue of lack of manpower in the technical textiles sector needs to be addressed, the textiles minister said, adding that the industry needs to define the requisite skills to get support from government. After defining the skills, the next task would be to bridge the manpower gap in which the industry would be supported adequately by the government, said the Minister. Addressing a curtain raiser event of Technotex-2017, Irani assured that the government would consistently and constantly engage with the industry to create standards for the technical textiles sector. The sixth edition of the international exhibition Technotex-2017 will be held from April 12 to 14 in Mumbai. It is being organised by Ficci jointly with the Ministry of Textiles. The event will showcase products from various sub-sectors of technical textiles, technical textiles equipment and machinery, raw materials and textile manufacturing services. It provides a common platform for interaction amongst stakeholders from across the global technical textile value chain. The exhibition is expected to draw over 200 exhibitors. “With participation from countries like Korea, Switzerland, Japan, the US, Germany, Sweden, Belgium, the UK, Luxembourg, Austria, Italy and many more, the event will also have country pavilions of Taiwan and China,” Ficci said. Irani said that agrotech and geo textiles must be represented at Technotex as the sectors have great untapped potential. She suggested that Technotex stakeholders should engage with agri institutes and urban local bodies to create awareness amongst them regarding the advantages of agrotech such as less consumption of water and better productivity and of geo textiles such as environment-friendly sustainable growth, respectively. The Minister also released the Standards on Technical Textiles at the event. The release of the standards marks a vital step towards the Textiles Ministry’s efforts of standardization of the technical textile products in India. Alka Panda, Director General, Bureau of Indian Standards (BIS), said that BIS has constituted specialised committees to expedite the process of developing standards. She urged the industry to actively participate with BIS and help in developing standards. Kavita Gupta, Textile Commissioner, Office of the Textile Commissioner, Ministry of Textiles, in her presentation said that there was a need for increased involvement of user institutions; development of indigenous specially fibers; development of standards; focus on research and development and encouragement of JVs and attracting investment in manufacturing technical textiles machinery.
Source: The New Indian Express
GHCL is a big player in some of the most labour-intensive industries, such as textiles, soda ash and edible salt. How has demonetisation impacted you? Demonetisation is an effective way to increase tax collection and boost the economy. The textile sector is also responding well to this move. We have always believed that strong, transparent systems should be in place for conducting businesses. Even much before demonetisation, we had started the practice of paying our labourers through cashless modes. Hence we haven’t witnessed any challenges during this period. To what extent do you think demonetisation has affected your revenue or profits in the third quarter? Our production level has been good, but our FMCG sales have been slightly impacted due to lower demand, especially in rural areas. While the situation is improving, it could take a few months to offset the impact completely. You have been a supplier to big companies like Target and Bed Bath & Beyond. Is the flow of orders from the US or the EU for Indian textile players recovering or is it still tepid? India’s share in the sheet imports by the US is increasing year on year. In the last two years, it has been well past 50%, compared with 47% previously. This is mainly due to the reliability of Indian exporters as well as the consumption growth in China. This 3% increase on a huge base like the US provides ample growth opportunity Also, we hope that a free trade agreement (FTA) with the EU will make Indian exporters competitive in that key market. (For instance, industry executives say, Indian yarn, fabrics and garments attract export duties of 4%, 5% and 9.6%, respectively, in the EU, while competitors like Bangladesh export there at zero duty).
How much of a goods and services tax (GST) rate would you suggest for textiles and garments? There are some players who seem to favour even 12%.
I think a zero GST rate will be the best for the textiles and garments sector, which is one of the largest contributors to the country’s gross domestic product (GDP), rural employment and foreign exchange. Also, the sector shouldn’t be exempted from the GST ambit as it will give rise to cascading effects in costs for the entire textile value chain. When the GST is in place, it will create a level-playing field for everyone and will be positive, particularly for companies, such as GHCL, with integrated processing facilities (For integrated players, the input tax costs can be seamlessly offset against output tax liability).
GHCL is one of the largest manufacturers and exporters of soda ash, with customers like HUL, P&G and Philips. How do you see rural demand shaping up for FMCG products in the coming quarters?
The economy has witnessed mammoth process of demonetisation and it has its short-term impacts too. At present, we see some improvement in the demand trend in FMCG, but it will take some more time to be back to normal completely.
How much of a rise do you see in your revenue and profits in 2016-17, compared with a year earlier? What is driving your growth?
GHCL’s revenue has grown 1.9% to R703.14 crore during the second quarter of this fiscal, against R690.34 crore a year earlier. However, during the first half of this fiscal, the company registered 72.4% growth in net profits to R193.11 crore, against R112.04 crore in the same period the previous year. GHCL’s income rose 9.3% to R1,429.83 crore in the first half of 2016-17, compared with R1,308.54 crore a year before. We are targeting year-on-year growth of 20% in our profits. As far as growth in revenues is concerned, there would be a marginal rise, as our capacity expansion in soda ash will be in operation next year. Apart from a strong work force, the company has benefited from lower prices of commodities, especially coal.
What are your expansion plans?
We have various expansion plans for both inorganic chemicals and textiles segments. Our expansion in soda ash is on track and we expect it to be completed in the current quarter. This will result in a 12% rise in production volumes, with additional 1,00,000 tonnes brownfield capacity.
The total capex outlay for the project was R375 crore. An incremental capex of around R80 crore has been allocated for debottlenecking soda ash capacity by 25,000 tonnes, apart from doubling the sodium bicarbonate capacity (It will be raised by 30,000 tonnes). In the textiles segment, we have allocated R70 crore towards the expansion of our processing capacity from 36 million meters to 45 million meters, along with building capacity for producing value-added yarn and expanding weaving capacity.
Source: The Financial Express
Union Textiles Minister Smriti Zubin Irani Tuesday assured technical textiles industry that the government would consistently and constantly engage with the industry to create standards for the technical textiles sector. Addressing a curtain raiser of TECHNOTEX-2017 in New Delhi, Irani released the Standards on Technical Textiles and brochure of the event. The release of the standards marks a vital step towards the ministry's efforts of standardization of the technical textile products in India. Alka Panda, Director General, Bureau of Indian Standards (BIS), said that BIS has constituted specialized committees to expedite the process of developing standards. Panda urged the industry to actively participate with BIS and help in developing standards. BIS was looking forward to industry’s suggestions on standardization as this would spur innovations. On the occasion, the minister, Smriti Zubin Irani also underlined the need to address the issue of lack of manpower in the technical textiles for which industry needed to first define the requisite skills. After defining the skills, the task would be to bridge the gap in which the industry would be supported adequately by the Government of India. She added that the industry needs to come forward and utilize platforms such as TECHNOTEX for convergence of efforts. TECHNOTEX 2017 is India's premier show on technical textiles which will be organized by FICCI jointly with the Ministry of Textiles, Government of India. The sixth edition of the international exhibition, conference and seminars will be held from April 12 to 14, 2017 in Bombay Exhibition Centre, Goregaon, Mumbai. The event will showcase products from various sub-sectors of technical textiles such as Indutech, Meditech, Mobiltech, Ecotech, Geotech, Packtech, Protech, Sportetch, Agrotech, Clothtech, technical textiles equipment and machinery, raw materials and textile manufacturing services. It provides a common platform for interaction amongst stakeholders from across the global technical textile value chain. TECHNOTEX exemplifies the immense potential for trade and investment between India and foreign countries in technical textile sector. TECHNOTEX is expected to draw in more than 200 exhibitors, looking to showcase a varied collection of technical textiles from the various sub-sectors of the technical textiles industry. With participation from countries like Korea, Switzerland, Japan, U.S.A., Germany, Sweden, Belgium, the U.K, Luxembourg, Austria, Italy and many more, the event will also have country pavilions of Taiwan and China. A gateway to the technical textile arena, the event bridges the gap between the buyer and seller by facilitating B2B (Business-to-Business) and G2B (Government-to-Business) meetings. Irani said that agrotech and geo textiles must be represented at TECHNOTEX as the sectors have great untapped potential. She suggested that TECHNOTEX stakeholders should engage with agri institutes and urban local bodies to create awareness amongst them regarding the advantages of agrotech such as less consumption of water and better productivity and of geo textiles such as environment-friendly sustainable growth, respectively. Dr. Kavita Gupta, Textile Commissioner, Office of the Textile Commissioner, Ministry of Textiles, Government of India, in her presentation said that there was a need for increased involvement of user institutions; development of indigenous specially fibers; development of standards; focus on research and development and encouragement of JVs and attracting investment in manufacturing technical textiles machinery. Shishir Jaipuria, Chairman, FICCI Technical Textiles Committee and Managing Director, Ginni Filaments, briefed the industry about the various initiatives of FICCI for the technical textile industry and the progress of TECHNOTEX 2017. He spoke about the future and development of technical textile industry in India and emphasized on the importance of accelerating usage and promoting investments pertaining to the growth of the technical textile industry, which is referred to as the sunrise sector. He said that the sector was in need of skilled manpower, standards and regulations for transparent growth. In his theme perspective, Mohan Kavrie, Managing Director, Supreme Group, said that while the government was trying to promote this sector, but the industry was lagging behind. There was a need for entrepreneurs to step forward and look for innovative fabrics to promote use of technical textiles for daily use.
Source: SME Times
Dual control has been sorted out for now, but the devil lies in the details. On the face of it, it is a relief that the Centre and States have sorted out the issue of ‘dual control’, paving the way for an early introduction of the Goods and Services Tax (GST). Bureaucracies are not known to fight for working more; yet, here the tax departments seem to have goaded their respective States and the Centre into a turf war over assessees. This is despite the fact that each assessee will fork out an equal share of revenue to both by way of CGST and SGST! The Centre has largely allowed States to exercise administrative power over assessees with a turnover of less than ₹1.5 crore, with the Centre exercising control only over 10 per cent of the assessees in this category. So, most small enterprises can rest assured of having to deal with the same set of tax officials. For businesses with more than ₹1.5 crore turnover, the Centre and States will split the assessees equally. This dispels apprehensions of the assessee having to simultaneously deal with two sets of tax authorities. But how the splitting of the tax base will actually work remains to be seen. If the assessees are randomly picked and rotated, say, every three years, it could lead to a new set of tax officials questioning the assessments of the earlier set. To minimise such headaches, it is very important that State tax staff is well trained in central excise and service taxes, and vice-versa. Despite GST being in the air for years, the bureaucracy and businesses are still not clear about its basic contours. While completing the remaining processes with a sense of urgency, governments must devote more time to having consultations with the public on the subject to promote awareness. In effect, Monday’s consensus seems to have been arrived at simply with the objective of ensuring that the show goes on. However, the July 1 timeline seems optimistic. While the rates have been agreed upon (nil, 5 per cent, 12 per cent, 18 per cent, 28 per cent and a higher rate for ‘sin’ goods), the crucial issue of identifying the goods concerned for each levy remains to be worked out. The list of exempted items remains to agreed upon. These are formidable tasks ahead for the GST Council. Besides, all 29 States have to pass their GST laws within the next few months. While moving ahead it is important not to ride roughshod over the details. One of these is the punitive provisions in the Model GST law, which West Bengal Finance Minister Amit Mitra has rightly questioned. A threshold of just ₹20 lakh above which GST will apply will increase the compliance costs of micro enterprises, which will have to file a slew of returns every month — thereby exposing them to harassment and extortion. These aspects of the model law need closer scrutiny if GST is to really work as a business-friendly proposition for all.
Source: Business Line
India's economy lost momentum in the final three months of 2016 after Prime Minister Narendra Modi's ban on high-value notes hurt consumption and businesses but it is set to pick up this quarter, a Reuters poll found. Having posted growth of above 7 per cent for six consecutive quarters, India's gross domestic product is expected to have expanded just 6.5 per cent in the October-December quarter - the weakest in nearly three years. The poll also suggested growth would remain below 7 per cent in the first quarter of 2017, at 6.9 per cent. India's GDP for the fiscal year to March 2017 is expected to grow 6.9 per cent, according to the poll of over 20 economists. That is higher than the International Monetary Fund's estimate of 6.6 per cent. "If the demonetisation exercise has led to some permanent supply-side disruptions, growth could be weaker for longer," wrote Pranjul Bhandari, chief economist for India at HSBC, in a note. The November 8 announcement of the ban on high-value notes, which coincided with Donald Trump's US Presidential election victory, has caused major disruptions in the cash-reliant economy. Industrial and services output have been hobbled, with a survey earlier this month showing private sector activity contracted in December. "Lower growth for at least two quarters means that the output gap will take longer to close, suggesting that the revival of the investment cycle, which is already very weak, could be pushed out even further," added Bhandari. Still, a majority of economists answering a separate question said they were confident or somewhat confident the government's demonetisation drive would boost consumption and investment in the longer-term. A slight majority, nine of 15 economists, said the initial aim of removing unaccounted money from the system will not be achieved. Eight of the 13 forecasters said the social cost to the poor and small businesses from the currency ban will be eclipsed by underlying benefits in the long-term. In a surprise move, the Reserve Bank of India chose not to cut its repo rate in December to combat the fallout from the demonetisation, keeping it steady at 6.25 per cent. Inflation hit a two-year low in December, with consumer prices rising 3.41 per cent, well below the RBI's near-term target of 5 per cent by March 2017. It is expected to hover between 4.1 and 5.2 per cent from now to mid-2018, giving the RBI room to make further rate cuts. But analysts expect the central bank to make only one rate cut over the poll horizon, tipping a 25 basis point cut at its upcoming Feb. 8 meeting, a week after the government presents the federal budget for the 2017/18 financial year.
Source : The Economic Times
The 58th edition of India International Garment Fair (IIGF) catering primarily to Autumn-Winter 2017/18 being organized by Apparel Export Promotion Council (AEPC) India to be held in New Delhi from tomorrow. Union Textiles Minister Smriti Irani will be inaugurating the IIGF, one of the largest and most popular platforms in Asia, from which overseas garment buyers can source products and forge business relationships with India’s finest players in the apparel and fashion accessories domain. Irani will also unveil the Fair Guide as well. Minister of State for Textiles, Ajay Tamta, and Textiles Secretary, Rashmi Verma will also be present on the occasion. A total of 312 participants from 14 states of the country are participating in the Fair; the major participating states are Delhi-NCR, Rajasthan, Maharashtra, Uttar Pradesh, West Bengal, Haryana, Tamil Nadu, Punjab, Gujarat and Karnataka. The sellers would be showcasing womenswear, accessories, kids wear and menswear. The IIFG will have two fashion shows a day (one in the morning and one in the afternoon) on all three days, for exhibiting the collections and developing business. A theme pavilion and best display awards are some other attractions of the event. Ashok Rajani, Chairman AEPC, informed that 58th IIGF is India’s largest garment show in South Asia, covering Apparel and Fashion Accessories, organized over a vast exhibition area. The objective of IIGF is to showcase the latest trends in garment and fashion accessories, and to leverage brand India across the globe. The India International Garment Fair was started in 1988. It is a B2B fair and is meant for conducting meaningful and quality business. India International Garment Fair (IIGF) 2017 to be held from January 18 - 20, 2017 at Pragati Maiden, New Delhi.
Source: Yarns and Fibers
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$ 54.26 per barrel (bbl) on 17.01.2017. This was higher than the price of US$ 53.78 per bbl on previous publishing day of 16.01.2017.
In rupee terms, the price of Indian Basket increased to Rs. 3692.35 per bbl on 17.01.2017 as compared to Rs. 3665.58 per bbl on 16.01.2017. Rupee closed stronger at Rs. 68.05 per US$ on 17.01.2017 as compared to Rs. 68.16 per US$ on 16.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 17, 2017 (Previous trading day i.e. 16.01.2017) |
Pricing Fortnight for 16.01.2017 (Dec 29, 2016 to Jun 11, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.26 (53.78) |
54.24 |
|
(Rs/bbl |
3692.35 (3665.58) |
3691.57 |
|
|
Exchange Rate |
(Rs/$) |
68.05 (68.16) |
68.06 |
Source: PIB
After losing out about 20 per cent area to pulses, cotton is set to regain the lost ground in the upcoming kharif season. With prices of pulses crashing, farmers are expected to go back for cotton next season. The seed industry expects a growth of 20 per cent in sales next season over the 3.6 crore packets it sold last year, or an increase of 60-65 lakh packets. Dramatic increase in cotton prices this year too is likely to make farmers to come back to the crop. After a disastrous season the previous year, cotton prices touched Rs.6,100 a quintal at the peak in September 2016, as against Rs.1,500-2,000 in September 2015. Those grew cotton this season reaped good returns. However, farmers found pulses hard to be remunerative. “We expect a big shift in North India. Cotton will make a return in those areas. Those farmers who shifted to pulses over the last three years because of higher prices of those commodities, will come back to cotton as prices have fallen,” P Satheesh Kumar, former president of Seedsmen Association of Andhra Pradesh, told BusinessLine. Though the industry pegged sales of 4.40 crore packets in the beginning of the season in 2016, actual numbers showed that farmers consumed only 3.60 crore packets because of increased interest among farmers in pulses. In the Telangana, it was redgram that made a dent into cotton area, along with pulses in some areas. The north consumed 50-55 lakh packets as against the normal acreage of 80 lakh packets. The industry expects a consumption level of 75 lakh packets in the region. Cotton acreage fell down to about 103 lakh hectares in 2016-17 from 116 lakh ha in 2015-16, resulting in a drop of production to 351 lakh bales from 338 lakh bales during the period. The area saw a peak in 15 years in 2014-15 as farmers grew cotton in a record 128.46 lakh ha that year. This resulted in a bounty for the cottonseed industry. It registered sales of over 5 crore packets that year. We have been seeing a decline ever since. This time, however, the industry foresees a re-bound of interest in cotton. This is despite huge number of deaths reported in cotton-growing areas in seven States. With pink bollworm developing resistance to Bollgard-II technology and attractive prices in other crops resulted in a drop of area in the last two years. “Though we don’t expect it to grow to the highest level, the acreage would certainly grow by at least 20 per cent,” Satheesh said. Inventory
The industry sees no problem in the availability of seeds. “There are no issues on (seed) production front. There were good rains and irrigation facilities. The industry has good inventories too to back up,” Satheesh said. Jaipal, a farmer from Warangal, said favourable weather in 2016 and a good market helped farmers get good prices. “The Centre had asked the farmers not to grow cotton keeping in view a very bad season in the previous year. Fear of poor performance of Bt cotton too, made some farmers keep off from cotton. But favourable weather has changed it all. We got good prices this time and we hope the trend will continue next year as well,” he said.
Source: Business Line
White and cream strains of “unbleached and undyed” woven cotton silk from Varanasi and kora cotton will be teamed with gold accents in a classic combination that’s a Anita Dongre AT designer Anita Dongre’s sprawling production facility in Rabale in Navi Mumbai, brainstorming sessions are underway as the team draws up plans for their Lakme Fashion Week (LFW) Summer/Resort 2017 finale collection. On February 5, Dongre’s designs will walk the ramp at a grand off-site fashion showcase at Bandra Fort. While in her more than two-decade long career as a designer, Dongre has put together many an impressive runway presentation, this one is extra special because it marks the first time that the House of Anita Dongre will present a grand finale. As with all LFW finales, this too shall be led by cosmetic giant Lakme’s seasonal marketing trend, the Summer/Resort 2017 campaign focusing on argan oil enriched lipsticks. “Since organic argan oil is considered ‘liquid gold’ in the beauty industry, our collection will also showcase handspun and organic cotton with gold accents,” explains Dongre, whose label prides itself on its sustainability mantra and environmentally-conscious approach to fashion.
Source: The Indian Express
In a recent development, Madhya Pradesh Government has approved six projects worth Rs 3285 crore for the company. A+ a- 0 While the Sensex on Tuesday Jan 17 is still trading down, Vardhaman Textiles is trading with gains. In a recent development, Madhya Pradesh Government has approved six projects worth Rs 3285 crore for the company. The stock of the company has witnessed a spurt in volumes by more than 1.51 times. On a YoY basis, the stock has surged by 49.42%. Currently, the stock is trading with a P/E of 10.42. The stock has outperformed the BSE 500 and the Mid-cap index. In the last three years, on an annualised basis has given a return of 44.26%. Ten fund houses have invested in the stock of the company. HDFC Mutual Fund is the top mutual fund house which has invested in the stock followed by UTI and IDFC Mutual Fund. The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 1159.75 on 28-Oct-2016 and a 52 week low of Rs 651.5 on 20-Jan-2016. Last one week high and low of the scrip stood at Rs 1124 and Rs 1093.25 respectively. The promoters holding in the company stood at 62.23 % while Institutions and Non-Institutions held 23.09 % and 14.68 % respectively. The stock is currently trading above its 50 DMA.
Source: India Info Line
The project for a textile-dedicated industrial zone which is being established in Morocco is in its final stage, daily newspaper L’economiste reveals. The project is led by the Association Marocaine de l’Industrie du Textile et de l’Habillement de la region Nord (AMITH Nord) in partnership with the Moroccan ministry of trade and industry. Situated near Tangiers, in the northern part of the country, the industrial area will be established over 500 hectares. AMITH aims with this project, to boost the productivity of the textile industry in the region, in an attempt to beat Chinese competition as well as its African rivals.Let’s recall that in 2015, Morocco committed to increase its textile exports revenues to €464 million, by 2020.
Source: Ecofinagency
Canada-based lingerie brand Blush and American brand Elegant Moments through The Lingerie Store (TLS) a lingerie aggregator have made an entry into the Indian market. The announcement of the brands making their India debut via the online portal was made on Monday. Rosmin Kunnathottathil, Co-Founder at TLS, said that their portal will empower women to effortlessly buy lingerie from various leading brands, anytime and anywhere. The online lingerie boutique offers exquisitely designed and wide range of lingerie. She further added that at TLS, they believe in pampering theirr customers with an exclusively curated range of lingerie that represents the best of them and are appropriate for special occasions, romantic getaways, honeymoons and weddings. Elegant Moments is a lingerie manufacturer and was founded in 1983, currently the leading manufacturer featuring a complete line of lingerie, costumes, club wear, packaged lingerie, packaged hosiery, and leather merchandise. While, the legend of Blush has been two generations in the making, it all started in 1959, when Edward N. Ajmo launched his first fashion venture in Montreal. Upon the sale of the company, he established a second highly successful initiative in the United States. Mr. Ajmo returned to the fashion hub of Montreal to found Blush in 1988. After thirteen years at the helm, Mr. Ajmo entrusted the leadership of Blush to his already highly experienced adult children, Justin and Tiffany, in 2001. A dedicated entrepreneurial family, an expert design team and more than 60 years of experience in the world of style have culminated in the successful brand known as Blush.
Source: Yarns and fibres
Prime Minister Sheikh Hasina said on Tuesday her government was highly committed to ensuring compliance in the readymade garment (RMG) sector, reports BSS. "The contribution of apparel and textile industry to our economy is immense. We are highly committed to ensure compliance with regard to labour rights, workplace safety and environmental standard in the industry," she said. The premier also said Bangladesh's readymade garment sector achieved higher compliance standards in terms of wages, workplace safety, norms, practices and harmonious industrial relations. "There has been a 77% increase in basic wage. Assessment of all the 3780 factories as recommended by global brands and retailers has been completed," she said. The Prime Minister was replying to questions at the workshop on "Shaping a New Water Economy" in the 47th Annual Meeting of the World Economic Forum at Congress Centre here. President and CEO of World Research Institute Andrew Steer moderated the workshop attended by heads of state and government of different countries participating in the WEF. Sheikh Hasina said Bangladesh is the second largest apparel and textile exporting country in the world. "The sector employs 4.5 million workers, of which 80 per cent are women. The industry accounts for 83% of our total exports," she said The premier said the factories were now working hand-in-hand with global brands and retailers to ensure international standards. Every factory had an Occupational Safety Committee where employers and workers were working together, she said. "We are supporting the industry to 'go green'. Today, Bangladesh has LEED certified 38 factories. Out of the world's top 10 ranked green factories, 7 are in Bangladesh." The Prime Minister said since 2015, Bangladesh Government had been working with 2030 Water Resources Group (WRG), more specifically, to achieve 100% wastewater treatment and increase water use efficiency as per international benchmarks in the apparel sector. She said, "Our work with 2030 WRG" is focusing on the following areas: --- Mobilising and facilitating large-scale finance for wastewater treatment infrastructure; --- Enhancing fiscal and non-fiscal incentives for wastewater treatment, recycling and efficient use; --- Establishing a valuation methodology for water use across Bangladesh; --- Improving institutional setup for water resources management, --- Increasing private sector and civil society participation in water governance. As a member of the High-Level Panel on Water, she said, she was committed to innovating frameworks like 2030 WRG. UNB adds, earlier the Prime Minister along with other global leaders gathered here on Tuesday as the 47th Annual Meeting of the World Economic Forum (WEF) began. The four-day meeting began at Congress Centre in Davos, a mountain resort at Graubünden in the eastern Alps region of Switzerland, under the theme 'Responsive and Responsible Leadership'. On the sidelines of the forum, Sheikh Hasina had also informal interaction with Chinese President Xi Jinping and Swiss President Doris Leuthard. The Chinese President, who was accompanied by the largest delegation of his country since its first participation in an annual meeting in 1979, opened the meeting proceedings. In his speech, the Chinese President said economic globalisation powered worldwide growth and it should not be blamed for the world's problems. In an attack on the anti-globalisation rhetoric that has led to the election of Donald Trump as the US President and the Brexit vote in the UK, he told a packed audience: "It's true that economic globalisation created new problems but there's no justification to write off economic globalisation altogether. Rather we should adapt to and guide economic globalisation, cushion its negative impacts and deliver its benefits for allcountries." Prime Minister Sheikh Hasina joined the opening plenary and other events of the meeting along with other heads of government and state. Before the opening plenary of the World Economic Forum, WEF Executive Chairman Prof Klaus Schwann called on Sheikh Hasina.
Source: The Financial Express
Exports from Bangladesh, particularly of garment items, will face further tariff competition in the US market if Donald Trump, the president-elect, implements his plan of border tax, one of his major campaign promises. During his 17-month presidential campaign, Trump called for imposing border tax of between 35 percent and 45 percent on imports of goods to protect American jobs from unfair foreign competition. Companies that import goods would pay the tax at the border. “If the proposed border tax is imposed finally, we would be sufferers like other countries,” said Ahsan H Mansur, executive director of the Policy Research Institute, a private think-tank. “The implementation of the proposed border tax would be the one of the worst news for us as well as for rest of the globe,” he added. Although most of the attention is still focused on whether Trump will slap tariffs on China or target companies that move production offshore, proposals for a US tax regime that penalises imports could have a more permanent and far-reaching effect, reported the Financial Times. “I think it would be a huge issue for Asia,” said Frederic Neumann, co-head of economic research at HSBC in Hong Kong. “It would also raise the spectre of retaliatory measures by other countries,” Financial Times quoted him as saying. Bangladesh's exports, particularly of garment items, would unequivocally be affected if Trump follows through on his campaign promise once he is sworn into office on January 20, according to Mansur. Since the US does not have an adequate number of factories, the local manufacturers might not meet the demand. As a result, the US retailers will depend on imported clothing items, particularly from Bangladesh and other Asian countries, which mainly produce the basic apparel items, Mansur said. But the electronics and mobile phones companies from Asia will bear the maximum brunt of the proposed border tax as the US is also strong in production of those goods. “Worst hurt would be exporters of low-margin products, where little value is added in the US and demand is sensitive to price. That could include many goods sold by US retailers such as Walmart, where higher prices would probably lead to lower consumption, hitting their makers,” the Financial Times reported. Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association, echoed Mansur's views on apparel shipments to the US, the single largest export destination for the country, as a result of the border tax. “We will lose our competitiveness to the US if the proposed border tax is imposed,” Rahman added. Currently, American retailers have to pay 15.61 percent duty for importing garment items from Bangladesh. Apparel items account for 95 percent of Bangladesh's total exports to the US in a year. The US apparel importers have to pay 3.08 percent duty for importing products from China, 8.38 percent from Vietnam, 2.29 percent from India, 3.57 percent from Turkey and 6.30 percent from Indonesia.
Source: The Daily Star
ISLAMABAD: Not fully contented with the Rs180 billion package announced by the prime minister recently to stimulate a surge in the dwindling exports, the textile industry has asked for the third generation investment policy for not only plug and play facilities, but also with an aim to increase its competitiveness not only in the region but also on the international market, particularly in the scenario when the Chinese textile products under the CPEC umbrella will soon make inroads in Pakistan’s markets. Though our demands have been accommodated in the package to some extent endowing with some breathing space for export, there is no relief ensured in terms of trimming down the cost of doing business, Anis-ul-Haq, Secretary General of All Pakistan Textile Mills Association, (APTMA) told The News in an exclusive talk. On account of hike in cost of doing business, he said, the textile Industry had lost the potential of $3.46 billion for export as 30-35 percent production capacity of textile industry had virtually closed down and in case it was revived then Pakistan will be able to regain the lost potential of $3.46 billion and after that textile industry needs more investment which is possible only if the third generation investment policy is announced on war footing basis. Pakistan is in dire need of integrated investment parks where foreign and domestic investors will be provided with a level playing field and every kind of incentives. Under the third generation investment policy, the textile industry needs to first bring down the cost of doing business to make its products competitive on the international markets. “To this effect, we need power tariff of Rs7 per unit against the current Rs11 per unit and it is possible if the surcharges of Rs4 per unit being charged from the industrial sector are removed,” Mr Haq said. As many as 70 textile units in Punjab alone have so far shut down just in the wake of high cost of doing business and it is feared that half of the industry will close down in the next summer season triggering a new surge in unemployment and social unrest in the country if the energy prices for the industry are not contained at an affordable level. The RLNG cost has emerged as headache for the textile industry which has exposed it to the huge competitive disadvantage as the cost of re-gasified LNG is too much at higher side, and this issue has not been addressed in the package. He said the textile sector in Punjab was being provided with RLNG which was 50 percent higher than the system gas being provided to investors in Sindh. More importantly, the RLNG is linked with the price of Brent on the international market and the price of Brent on the global market was on the rise. “We want the government to determine the RLNG price on weighted average mode of clubbing down the RLNG price and system gas of commercial and industrial consumers and this will bring down the gas price to $7 per MMBTU for textile industry.” And if the said measures are not taken, he argued, the textile industry would be wiped out completely when Chinese products to be prepared in the Xinjiang Province equipped with huge incentives bordering Pakistan for export to CPEC will start coming in Pakistan and it is strongly feared that Pakistan's textile industry will not be able to compete with Chinese textiles given the robust textile package given by Xinjiang. This will mean a loss of the bulk of jobs 4.5 million direct and another 12 million indirect exposing the country to social and political unrest will be detrimental to Pakistan. It is therefore essential that Pakistan’s textile industry be rejuvenated through a textile revival package. He said that the primary reason for competitive disadvantage and dismal performance is the much higher energy prices for Pakistani exporters and especially Punjab whereas 70% of capacity is located in Punjab. Energy cost forms 30% of the conversion cost in spinning, weaving & finishing. Nearly doubling this energy cost to 70% of installed capacity renders it uncompetitive, unviable and unserviceable which has lead to large scale closures, increased unemployment and precipitous drop in exports both in revenue and quantity terms. This has resulted in a loss of 1.2 million jobs of workers who were directly employed and another 3 million who were indirectly engaged on the supply side of the textile business. In Punjab which accounts for 70% of installed export based textile industry capacity; the regional disparity is most acute, 80% of is connected to gas and 20% to grid electricity only. Both gas and electricity rates need to be regionally aligned for resuscitation of exports. He pleaded that disparity in energy pricing both within Pakistan and regionally is seriously retarding Pakistan’s bid to accelerate economic development as a major exporting sector of the economy is crashing. The Textile Industry wants government of Pakistan to exempt it from all surcharges in electricity bills pertaining to cross subsidization and inefficiencies, arguing this would entail a cost Rs 8 billion which cost can be spread by reducing the negative fuel adjustment surcharge by less than 22 paisa per Kwh. This very small adjustment in Fuel Adjustment Surcharge would put the textile export industry back on its competitive feet and as a result Pakistan will be able to regain lost imports and expand. Mentioning the tariff rationalization, the industry argued saying that 80% of the export based textile industry is connected to the gas system and generates electricity from the gas. However the 20% not connected to gas are being charged approximately Rs 12 per Kwh. Whereas, the regional grids on the average charge Rs 8 per Kwh. At present the total electricity load of the export based textile industry is 285 MW or 2.3 billion units/per annum. The maximum connected load of the zero based textile industry is approximately 1850 MW. The remaining 20% zero based textile export industry is essentially uncompetitive because of this 33% higher energy cost.
Source: The News International
Members of the National Assembly (NA)'s Standing Committee on Textile Industry and representatives from the textile sector Tuesday discussed matters relating to the textile industry. Both the parties discussed the issues being faced by all value-added textile associations, especially high tariffs of electricity and gas in Pakistan and its affect on exports. The NA committee was of the view that tariffs and wages should be brought down at par with regional competitors to make the textile sector competitive. The committee agreed with the viewpoint of the value added textile sector and also seconded the proposals floated by the value added textile associations. It was proposed that custom rebate claims should be settled and paid through the State Bank of Pakistan at the time of realisation and payment of export proceeds. "Refunds of sales tax on packing material should be decided on a fixed percentage basis and refunded along with exports proceeds through the SBP," the meeting heard. The meeting said that the Workers Welfare Fund (WWF) rate should be exempted for exporters, which was being collected at the rate of 2% of profit. It was proposed that the Export Development Surcharge (EDF) on exports be abolished and the Trade Development Surcharge be levied on imported luxury items such as cars, soap, shampoo, cosmetics and other finished goods. "As the government had abolished the duty and sales tax on import of cotton, duty and tax on import of cotton yarn should also be removed, and yarn should be allowed to be imported for manufacturing of goods destined for export."
The meeting recommended that manufacturing (stitching) units should be allowed to import raw material under the Duty and Tax Remission Scheme (DTRE). Value Added Textile Associations Chairman Jawed Bilwani highlighted the issues and problems faced by the value added textile sector which had contributed $11.08 billion - 53 percent of total exports and 89 percent of total textile exports - and generated 42 percent of the total employment including female workers. He informed the meeting that in 1990, textile exports of Pakistan stood at $3.67 billion, Bangladesh $0.98 billion and India $4.71 billion and in 2016 the export of Pakistan stood at $12.45 billion with a 239 percent growth; Bangladesh $27.49 billion with 2,705 percent surge and India's textile exports at $37.65 with 699 percent growth. Bilwani said that in 1991, cotton production of Pakistan was at 12.8 million bales, India at 9.7 million bales, while in 2016 it was 9.7 million bales in Pakistan with 24 percent decrease. "It is, therefore, proposed that instead of a 4% rebate on export of cotton yarn, the government should provide a cash incentive of 4% on local sales (indirect export) of cotton yarn to local value-added sector for a win-win situation. In this way, spinners would be encouraged to sell yarn locally and higher value would be realised through value addition," he added. Present at the meeting were Haji Muhammad Akram Ansari, Sardar Muhammad Shafqat Hayat Khan, Rana Umer Nazir, Malik Shakir Bashir Awan, Aqibullah Khan, Colonel (r) Dr Amirullah Marwat, Malik Abdul Ghaffar Dogar, Muhammad Ayaz Soomro, Romina Khurshid Alam, Beelum Hasnain and representatives from the Value Added Textile Association, Pakistan Apparel Forum, Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association, Pakistan Hosiery Manufacturers and Exporters Association, Pakistan Readymade Garments Manufacturers and Exporters Association and others.
Source: Daily Times
Cambodia’s apparel and footwear industries are flourishing. But that could change in light of several factors related to Brexit and the country’s overall economic growth, according to a bulletin by the International Labor Organization. Cambodia’s garment and footwear industries accounted for 11 percent of the economy in 2015. And 80 percent of its merchandise exports were apparel and shoes. Together the industries were valued at $6.8 billion that year. And the sector experienced 10.8 percent growth in the first half of 2016, according to Cambodia’s Department of Customs and Excise. The EU and the U.S. are its biggest export markets (43 percent and 29 percent, respectively). Sales to the EU were facilitated by the “Everything But Arms” agreement, which gives all countries identified by the UN as Least Developed Countries (LDC) full duty-free and quota-free access to the EU. Of EU countries, the UK is the top importer, receiving nearly one third of total exports to the EU. Given its importance to the sector, Cambodia could be particularly vulnerable to the fallout of Brexit. In fact, the ILO report states the country is already feeling some effects. According to the IMF, the pound was 20 percent weaker against the dollar through September 2016 than it was the previous year. The weak pound means imports are more expensive, which makes goods from Cambodia less attractive. Depreciation of the currencies of other apparel-producing countries like China, Vietnam and Bangladesh also makes Cambodia less competitive. Post Brexit, the question becomes what will the trade relationship between the two countries look like. The UK could decide to maintain the status for LDCs or revert to WTO rules, which would mean the countries would need to pursue a new free-trade agreement. Further complicating matters is a change in status for Cambodia. As a result of the country’s growing economy, the World Bank changed its rating to lower-middle income in July 2016. The upgrade from a low income country is positive, except it could threaten the country’s status as an LDC. If the UN similarly decides to upgrade the country, it would mean Cambodia would no longer enjoy its duty-free status after a three-year grace period ends. On a positive note, the U.S. granted travel goods from Cambodia Generalized System of Preferences status in July 2016, which removes the 3.4 to 20 percent tariffs these items used to incur. In 2015, Cambodia exported $50.4 million in suitcases, handbags, wallets and similar products to the U.S, a 60 percent increase over the previous year. The fledgling category only accounts for 1.3% of the total apparel and footwear industry for the country. But the U.S. represents 55 percent of all goods exported in that category so the improved trade status should help accelerate growth.
Source: Journal Online
Sericulture experts from home and abroad at a view-sharing meeting here unequivocally called for revitalising the ailing silk sector through best use of existing natural resources for strengthening the national economy. They say the sericulture together with its industrial side involves a huge number of people who depend on agriculture as an agro-based and labour-intensive industry. Besides, silk cocoon and raw silk have been adjudged as cash crop like other agricultural crops and cereals. Both men and women, irrespective of age, could be used in the silk cultivation side by side with the manufacturing part, they added. They were addressing a joint meeting between members of International Sericulture Commission (ISC) and local stakeholders at board room of Bangladesh Sericulture Development Board (BSDB) in Rajshahi city Monday. Taking part in the discussion, ISC Experts Dr Nirmal Kumar, Dr BS Angary, Dr Shiba Kumar, Dr SM Bokhtiar and Dr Tayan Raj Guru disseminated their expertise on the issue with BSDB Director General Anis-Ul-Haque in the chair. BSDB Members Nazibul Islam and Kamal Uddin, Director of Bangladesh Sericulture Research and Training Institute Jamal Uddin Shah and President of Bangladesh Silk Industries Owners' Association Liakat Ali also spoke. The discussants laid emphasis on elevating the sector for the sake of saving huge hard-earned foreign currencies which are spent for import of the silk yarn. Silk sector needs initiatives to retain the skilled laborers, especially the rearers, weavers and printers in the profession in the greater interest of the sector. There is no alternative to boosting local production to protect the sector. Liakat Ali said importance should be given on farmer level transfer and dissemination of
the high- yielding mulberry trees and silk-cocoons and other relevant technologies so far innovated in the laboratory researches. He laid stress on proper use of plant varieties and modern technologies at the growers' level that is very essential to attain cherished goals in this field. The silk industrialist mentioned that increased domestic production of yarn can help revitalise the traditional silk sector. "The glorious silk sector is now facing an embarrassing situation due to excessive price of foreign silk yarn and abnormal decline in its local production," said Liakat Ali.
Source: The Financial Express
UPM Raflatac Producer of self adhesive label materials UPM Raflatac, has introduced RP38 TXL adhesive for clothing and textile labelling in retail environments, which ensures that labels stay in place without discolouring the fabric or leaving residue when removed. The adhesive offers stable performance in product label printing and does not bleed, even in warm conditions. According to the Finnish company, the RP38 TXL keeps labels securely in place for applications such as clothing and product labelling, and protects merchandise by ensuring that there are no markings or discolourations from the label. Although, the adhesive keeps labels firmly attached, it also allows them to be easily removed without leaving behind any residue. "RP38 TXL has been developed to function well throughout the label's life cycle, from conversion and dispensing, through to retail usage and removal,” Jouni Iiskola, segment manager retail and logistics at UPM Raflatac said. “This new adhesive offers clothing a safe labelling solution that protects textiles, while still keeping labels firmly adhered."
Source: Fibre2fashion
The Garmentech Bangladesh 2017 will commence in Dhaka on January 18 with a view to provide a new momentum to the textile sector of the country. Three events – 16th Garment and Allied Machinery trade show, 8th Yarn and Fabrics Sourcing Fair 2017 and 8th Garments Accessories and Packaging Exposition (GAP Expo 2017) - will simultaneously take place in the city. The four-day Garmentech fair on readymade garments, accessories, yarn and fabrics is jointly being organised by ASK Trade and Exhibitions Pvt Limited, Zakaria Trade and Fair International and Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA). Abdul Kader Khan, president of BGAPMEA said at a press conference that the trade shows will help the country’s apparel manufacturers to achieve the industry’s target of exporting textile worth $50 billion by 2021. He also said that manufacturers of apparel accessories will need to earn $18 billion from exports to achieve the target. Close to 400 companies belonging to over 24 countries including China, India, Sri Lanka, Singapore, Germany, Italy, US, UK, Canada, Sweden, Spain, France, Thailand and more will display their textiles, readymade garments, yarn and other products at the Garmentech textile fair. Tofail Ahmed, commerce minister of Bangladesh will inaugurate the fair as the chief guest, while Annisul Huq, mayor of Dhaka North City Corporation (DNCC) will be a special guest at the opening ceremony.
Source: Fibre2fashion
BEIJING: China's growth slipped to its slowest rate in more than a quarter of a century in 2016, an AFP survey has forecast, as analysts see mounting risks for the world's number two economy with Donald Trump heading for the White House. While the Asian giant is a key engine of the global economy, affecting businesses and employment across the planet, its leaders are trying to shift from reliance on exports and infrastructure investment as a growth driver to consumer spending. But the transition has proved bumpy, with the crucial manufacturing sector struggling in the face of sagging global demand for the nation's products and excess industrial capacity left over from an infrastructure boom. Added to that is a volatile yuan, large-scale capital flight and a mounting concerns about a rapid surge in debt levels after Beijing flooded the market with credit to maintain growth in the face of a sluggish global economy. And now Beijing has another headache with Trump threatening massive tariffs on Chinese goods over what he sees as unfair trade practices and calling it a currency manipulator. The economy expanded 6.7 percent last year, according to the median projection in an AFP survey of 23 economists. That compares with 6.9 percent in 2015 and is the weakest since 1990, a year after the bloody Tiananmen Square crackdown isolated the country internationally. The forecast is within the government's target of 6.5-7.0 percent. Official figures are released Friday. "For China's economy to transform from investment-led to consumption-led without relying too much on credit, a slowdown is necessary," said Claire Huang of Societe Generale. While there are concerns growth will slow further, Chinese President Xi Jinping is looking to claim the mantle of global economic leadership many expect an increasingly protectionist Trump to give up. On Tuesday Xi pushed the cause of globalisation during his debut at the World Economic Forum in Davos, warning protectionism was akin to "locking oneself in a dark room". While the median projection for 2017 in AFP's survey came in at 6.5 percent, two of those questioned warned it could drop as low as 6.0 percent. A cooling real-estate sector will be "the largest drag", Brian Jackson of IHS told AFP, noting expectations of a "fairly painful" cyclical downturn in the housing market. China last month ended a major annual economic meeting with promises to liberalise investment in state-owned sectors, control real estate speculation and improve the "flexibility" of the yuan. But Societe Generale's Huang warned further slowing could test Beijing's commitment to reform. "If the government chooses to stimulate the economy with its old tricks, then its determination on reform is not so strong," said Huang. To stabilise the economy, authorities used ample credit and infrastructure spending in 2016, and Citi Chief China Economist Liu Ligang said investors have been surprised by authorities' ability to calm jitters on financial markets, which were pounded last year by worries over the outlook. But he added that further reforms are still needed and the debt-fuelled growth could lead to problems down the line. The weaker yuan boosted exports in the second half of last year, but soft December data added to worries about possible battles with Trump.
His pick of China critic Peter Navarro to head the White House National Trade Council has also alarmed Beijing. Navarro's book "Death by China" accuses the country of waging economic war by subsidising its manufacturing industry and blocking American imports. Trade policy under Trump is likely to motivate US businesses to move factories out of China, and American companies such as Seagate have announced layoffs in the country, raising concerns reshoring may have already begun. "The international trend isn't very optimistic," Li Ruoyu of the State Information Centre of China told AFP. But some observers see potential unintended benefits for China in some of Trump's proposed domestic policies. According to CICC analysts, if Trump's tax cuts and infrastructure spending is implemented "the 'Trump Stimulus' may exert a positive spill-over effect to growth and inflation in China as well, given China's profound participation and dominant role in the global manufacturing supply chain".
Source: The Economics Times
