The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 8 FEB, 2017

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2017-02-07

Item

Price

Unit

Fluctuation

Date

PSF

1276.45

USD/Ton

4.17%

2/7/2017

VSF

2446.4076

USD/Ton

0.42%

2/7/2017

ASF

2129.848

USD/Ton

5.80%

2/7/2017

Polyester POY

1312.92

USD/Ton

3.45%

2/7/2017

Nylon FDY

3457.356

USD/Ton

1.72%

2/7/2017

40D Spandex

4741.1

USD/Ton

3.17%

2/7/2017

Polyester DTY

5537.6048

USD/Ton

0%

2/7/2017

Nylon POY

1531.74

USD/Ton

0.96%

2/7/2017

Acrylic Top 3D

3238.536

USD/Ton

1.83%

2/7/2017

Polyester FDY

2304.904

USD/Ton

5.33%

2/7/2017

Nylon DTY

1619.268

USD/Ton

0.91%

2/7/2017

Viscose Long Filament

3647

USD/Ton

2.04%

2/7/2017

30S Spun Rayon Yarn

3085.362

USD/Ton

0.24%

2/7/2017

32S Polyester Yarn

1896.44

USD/Ton

4%

2/7/2017

45S T/C Yarn

2684.192

USD/Ton

0%

2/7/2017

40S Rayon Yarn

2246.552

USD/Ton

0%

2/7/2017

T/R Yarn 65/35 32S

3209.36

USD/Ton

0%

2/7/2017

45S Polyester Yarn

2304.904

USD/Ton

0%

2/7/2017

T/C Yarn 65/35 32S

1983.968

USD/Ton

0.74%

2/7/2017

10S Denim Fabric

1.3406372

USD/Meter

0%

2/7/2017

32S Twill Fabric

0.8300572

USD/Meter

0.18%

2/7/2017

40S Combed Poplin

1.16704

USD/Meter

0%

2/7/2017

30S Rayon Fabric

0.6666716

USD/Meter

0.22%

2/7/2017

45S T/C Fabric

0.6593776

USD/Meter

0.22%

2/7/2017

Source : Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16342 USD dtd. 3/05/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for is not responsible for the correctness of the same.

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Haryana crafts new policy to become textile hub

CHANDIGARH: Keen on making Haryana a global hub of textile manufacturing and a preferred investment destination, the state government has crafted a new textile policy to incentivize setting up of new units and ensure growth and modernization of the existing textile industry Under the policy, the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) will offer industrial plots for a lease of 33 years with 5% increase in annual lease rent. Besides, panchayat land will also be made available on lease for in the state. The policy is packed with fiscal incentives and contains provisions for infrastructure augmentation, setting up of textile parks and facilities for skill training. It aims at generating 50,000 new jobs by attracting investment in the textile sector to the tune of Rs 5,000 crore. An official spokesman said the draft policy had been put in public domain and suggestions invited from stakeholders up to February 28, 2017, which would be factored in while giving it a final shape. The policy has been formulated with an eye on the cotton belt of Haryana. The state is one of the leading cotton producers in the country with Sirsa, Fatehabad, Bhiwani, Hisar and Jind being the main cotton producing districts. This sector provides employment to about one million people and readymade garments worth $ 2 billion are exported from the state annually. The policy proposes capital subsidy of 10% for the eligible new projects of all textile enterprises across the state. "The draft policy aims at positioning Haryana as a preferred destination for global textile majors. It aims to boost textile exports by compound annual growth rate (CAGR) of 20% during 2017," the spokesman said. industrial development. Textile enterprises acquiring technology will be provided financial assistance of up to 50% of the cost for adopting technology from recognized national institutes, subject to maximum of up to Rs 25 lakh. Also electricity duty exemption is proposed for new enterprises. Under the draft policy, the state government will facilitate setting up of textile parks exclusively for garmenting units with provision of labour housing and built-up sheds (to be provided on lease basis) to facilitate expansion of the garmenting industry in the state.

Source: The Times of India

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Garment container from Tirupur hijacked near Chennai: TEA

 A container carrying export garments worth Rs 50 lakhs, from Tirupur was claimed to have been driven away by unidentified persons after assaulting the driver, near Chennai, an exporters' body said today. According to Tirupur Exporters' Association(TEA), the culprits had intercepted the container yesterday morning at Perungalathur near Chennai and attacked the driver and drove away. In a release here, they alleged that the driver, who was dumped near Sriperambudur reached Peerkankaranai police station and tried to lodge a complaint. However, he was asked to go to Sriperambudur police station, it said. Stating that the container was yet to be traced, the association demanded safety for the shipments of exporters in future. The fabric of history: Indian textiles take center stage at Durban exhibition. The Indian textiles on display at Phansi Museum are quite often utilitarian in nature  there are decorated bags, hats, waistcoats, rifle holders and even detailed decorations for animals - Image: Supplied The cosy Phansi Museum in Glenwood is kicking off the year with an intimate Pop Up Exhibition entitled 'Other Roots' showcasing textiles from Northern India. Known for its local focus on indigenous art in southern Africa, the museum is extending its reach to international shores with a selection of handmade, embroidered and beaded textiles from India, Thailand and even Bhutan. “The private collection on loan to Phansi Museum is about roots  who you are and where you come from,” says Sharon Crampton, Phansi Museum’s curator, referring to how the theme taps into the diversity of KwaZulu-Natal’s own people. “This exhibition will allow visitors the opportunity of looking at other roots,” she adds. How the Basotho blanket became the brand identity of a nation Paul Mikula, the founder of Phansi Museum is well known for his animated tours of the little gallery and he tells me that this exhibition is in contrast with their usual displays of Nguni, Zulu, Sotho or Pondo art, which are modest and simple. “That art is very geometric and focuses on order while this kind of art is bold, detailed and seemingly unordered,” he says using his arms to express his passion as he walks me through the exhibition. The work varies from embroidery to beading, to a dyeing technique called ikat thought to have begun in Indonesia to patterned textiles. Similar to South Africa, traditional artisans are mainly rural-based, oftentimes belonging to low socio-economic sectors of society. Their skills are learnt young or passed on through family members outside the mainstream educational system. The textile industry is the second largest employment-generating sector in India and offers direct employment to over 35 million people in the country. Cotton, silk and wool are the three materials from which Indian textiles are woven and the artisan communities in India, very much like southern African crafters, develop their crafts essentially from the use of natural resources readily available in their local environments. Cotton, silk and wool are the three materials from which Indian textiles are woven. Image: Supplied The work varies from embroidery to beading, to a dyeing technique called ikat. Image: Supplied As with South Africa, the Indian art on display is quite often utilitarian in nature  there are decorated bags, hats, waistcoats, rifle holders and even detailed decorations for animals. Some the painted pieces in the collection date back 80 or 90 years and the painstaking effort used to create them is clear - a long piece of beaded cloth decorated with gods, birds and animals stands out. Mikula tells me that it was used to decorate homes in Gujarat. Mikula tells me that India is a culture of celebration and its art is representative of that. 'Other Roots' is exactly that  a celebration of our heritage in its many forms. • The exhibition runs until February 18. Phansi Museum is at 500 Esther Roberts Road. Gallery is open Mondays to Fridays from 8am until 4pm, Saturdays, 10am to 2pmVisit phansi.com

Source: DNA

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Smriti briefs Elders on Welfare Schemes for Varanasi Weavers

In the Budget 2014-15  the Government announced setting  up of Trade Facilitation Centre and Crafts Museum (TFC&CM) at  Varanasi to develop and promote handloom products and carry  forward the rich tradition of handlooms of Varanasi. The estimated cost of project is Rs.300 crores. The first phase of the Project consisting of Crafts Museum Entrance Plaza and Shopping arcade has been inaugurated on 22nd  December  2016.  The above information was given by the Union Textiles  Minister  Ms. Smriti Zubin Irani  today  in a written reply to a  Rajya Sabha question.  She informed that ten  block level clusters have been  sanctioned in different blocks/  urban areas of Varanasi at a total  project cost of Rs.7.89 crore with  Central share of Rs.7.70 crore and first installment of Rs.5.12 crore  released  covering 4129 weavers.  Nine Common Facility Centres (CFCs) along with Common Service Centres (CSCs) have been set up in different blocks/urban areas to provide facilities like training yarns@fabyarns.in  dyeing  warping  ITenabled  services etc. CSC provides services like banking  Aadhaar  Card  e-commerce  e-ticketing  Mobile charging etc. So far  more  than 21000 persons have benefitted.  The Government has taken several steps to help weavers in  opening bank accounts and taking benefits of digital payment  modes.T he Common Facility  Centres have taken banking  services to the door step of  handloom weavers. Several camps have been held in Varanasi to train the handloom weavers in accessing digital  payment modes. 307 such camps were organised in Varanasi in  which 12  502 persons  participated. Micro-ATM/ Banking Correspondent (BC) facility was extended in association with various Banks for easy withdrawal of money. National Handloom Development Corporation has also implemented e-  Dhaga Mobile App which has facility of making online payment  for purchase of yarn. E-commerce players have been facilitated to work with handloom weavers of Varanasi with the arrangements that the sale proceeds are transferred into their bank accounts  Textile Minister informed.

Source: Tecoya Trend

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Hollister debuts new line of performance denim with Coolmax All Season technology & Lycra fiber

Hollister recently introduced a new line of performance jeans  for guys and girls that incorporates Invista’s Coolmax All Season  technology and Lycra fiber for year-round comfort and lasting fit.  One of the most relevant trends in the denim category today  is to integrate performance fibers for added functionality. Hollister is taking a leading position in the performance arena with their Advanced Stretch Jeans with Coolmax All Season technology.  The fabric moves moisture away to keep the body cool and  dry on hot days  and has insulating fibers for added warmth when  it is cool. These benefits come from the fiber structure so they are permanent and don’t wash out.  “At Hollister  denim is a  part of our DNA and we continue  to find ways to enhance the  assortment. Our goal with the innovative Coolmax All Season technology is to provide products that fit the needs of our customer’s on-the-go lifestyle  ”  said Kristin Scott  Brand  President of Hollister Co.  “We believe pairing one of  the hottest teen denim brands and with one of the coolest fabric  technologies available on the market today will resonate with  consumers  ” remarked Dave Trerotola  President of Invista Apparel  and Advanced Textiles.  “Our research shows that among ingredient brands in the cooling space the Coolmax  brand is the most likely to  positively influence purchase  intent  ” he added.  In conjunction with launch  of the new product line  Hollister  and Invista have created an  exciting  new multi-channel  social media campaign to  showcase the benefits of the  jeans.

Source: Tecoya Trend

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BTRA organising 57th Joint Technological Conference

Bombay Textile Research Association (BTRA) is organising the 57th Joint Technological Conference in Mumbai on February 17-18, 2017. This conference is held every year by each of the Indian textile research associations (TRA) in rotation. Dr Kavita Gupta, textile commissioner, has given her consent to be the chief guest at this year’s conference. Ahmedabad Textile Industry’s Research Association (ATIRA), South India Textile Research Association (SITRA) and Northern India Textile Research Association (NITRA) will participate in the conference along with BTRA. The papers for presentation in this premier conference will be based on recent R&D trends and of immediate importance to the industries in all major textile areas from the four TRAs. The conference provides threadbare discussions on R&D carried out by the four TRAs and the possibility of adopting them in the industry. BTRA is planning to have a dedicated session on ‘Geosynthetics’ and 12 papers will be presented on it. This particular session is jointly being organised with the office of the textile commissioner, ministry of textiles. Besides Geosynthetics, other topics like eco-friendly fabrics, emerging areas in the textile industry, product development, protective textiles and spinning among others will also be covered at the conference. German textile machinery manufacturing companies have shown interest in participating in this conference by way of presentation and networking with the participants.                    

Source: Fibre2Fashion

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Global yarn and fabric output up in Q3 of 2016: ITMF 

The global yarn production increased in Q3/2016 quarteron-  quarter. Thereby output in Asia and South America rose. In Europe and the USA the yarn production fell. On an annual basis the global yarn production in Q3/2016 increased versus Q3/  2015. Global yarn stocks climbed in Q3/2016 quarter-on-quarter.  Yarn stocks were reduced in South America. In Asia they  increased. Year-on-year global yarn stocks declined. Yarn orders in Europe and in South America fell quarter-on-quarter.  Compared to the same quarter a year ago yarn orders increased in South America and fell in Europe according to Zurichbased International Textile  Manufacturers Federation  (ITMF).  ITMF informed that global fabric production increased in  Q3/2016 against Q2/2016 due to  increases in Asia and South  America. In contrast Europe’s fabric production decreased.  Global fabric output improved moderately year-on-year in Q3/ 2016. Thereby Asian and South American output climbed moderately while it fell in  Europe. In Q3/2016 worldwide fabric stocks fell quarter-onquarter.  Fabric inventories were reduced in South America and increased moderately in Asia and North America. Year-on-year fabric stocks declined. European and South American fabric orders decreased quarter-onquarter.  On a yearly basis South America’s fabric orders increased and Europe’s fell.  Estimates indicate an unchanged global yarn and fabric production for Q4/ 2016.  The global outlook for yarn  and fabric production signals a  decline for Q1/2017.  In Q3/2016 global yarn production increased by 3.4% quarter-on-quarter. Thereby Asian yarn output strengthened by 3.7% quarter-on-quarter and  by 2.6% in South America. In Europe and North America it fell by 13.3% and 1.4%  respectively.  Global yarn output increased by 3.7% in Q3/2016 versus Q3/  2015. In Asia yarn output improved by 3.5% year-on-year and in South America by 21%.  In Europe and North America yarn output declined by nearly 4% year-on-year and by 7.8% respectively. Global fabric production increased by over 3% in Q3/2016 against the previous quarter. While Asian and South American output grew by over 4% each European fabric production fell by nearly 15% quarter-on-quarter. Year-on-year global fabric output improved moderately by 0.6% in Q3/2016. Thereby Asian  production increased by 0.6% and South America’s output improved  by 4.7%. Europe’s fabric output fell by nearly 7% year-on-year.  Global yarn inventories increased in Q3/2016 by 4.8% quarter-on-quarter with increases of 5.7% in Asia. In contrast  info  South America inventories fell by 1.4%. In Q3/2016 the annual  percentage change of global yarn inventories recorded a decrease  of nearly 6%. Thereby European yarn stocks increased by 5% yearon- year. Asian yarn stocks however fell by nearly 7% annually and South American stocks diminished by 0.6%.  Worldwide fabric stocks fell by 1.4% quarter-on-quarter in Q3/2016. The major culprit was South America where stocks were  reduced by nearly 8%. In the Asia and North America fabric stocks were increased moderately. On a yearly basis global fabric  inventories in Q3/2016 decreased by 5%. Asia’s fabric stocks decreased by 0.4% annually and South America’s inventories fell  by over 16%. In Europe stocks declined by over 2% while in North  America they increased by 0.8% year-on-year.  In Q3/2016 European yarn orders fell by 5% quarter-onquarter  and by 2% year-on-year. In South America they fell by over 11% quarter-on-quarter and increased by over 100% year-on-year.  European fabric orders in Q3/2016 fell by nearly 10% quarter-onquarter and by 11.5% year-on-year. South American fabric orders in Q3/2016 fell by 3% quarter-on-quarter and increased by 10% year-on-year ITMF said.

Source: Tecoya Trend

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Google and Ivyrevel make ‘Data Dress’

Google is teaming up with H&M-backed digital fashion house Ivyrevel’s fashion tech lab to bring couture into the digital age with its ‘Data Dress’ that is personalised entirely on the user's activities. The Coded Couture ‘Data Dress’ will be personalised through an Android application, which is currently under development that utilises Awareness API that Google made available to all developers through Google Play last year. The idea is that the API will passively monitor the user's daily activity and lifestyle with their permission to create a personalised, custom-made dress that’s ordered through the app.   For instance, the app will collect information like where they’ve traveled, where they’ve eaten dinner, hung out with friends, the typical weather in the area, and what they love to do. This information is collected over the course of a week and used to create a digitally tailored ‘Data Dress’. As the week goes by, users will be able to watch the design of their dress evolve, as the app gets to know them even better and uses its knowledge to translate their lifestyle into the dress. The whole concept is about couture techniques tailored to the users “unique personal story” and everything from choice of material, colour and embellishment used will be personalised, as will added details such as belt and cuffs which are data-driven, as well as the user's data activity. On Ivyrevel’s website it says that it believes that fashion can “amplify your personality and boost your confidence” and the aim of this dress is to create something unique to wear, as each ‘Data Dress’ will be a one-of-a-kind design. Ivyrevel co-founder Aleksandar Subosic said: “It’s such an exiting moment. We're about to change the fashion industry by bringing the customer’s personality into the design process through data technology. “To get a unique piece of clothing today you need to either buy a custom-made design piece or design it yourself, but that is generally not an affordable option and most people lack the design experience. The Data Dress enables women around the world to order a dress made entirely for them, that reflects the way they live their lives.” The app is currently in closed beta stage and is being tested by selected global style influencers including Ivyrevel’s co-founder Kenza Zouiten. The app is expected to launch to the public later this year. The custom dresses are expected to retail from 99 dollars.

Source: Fashion United.

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Global Crude oil price of Indian Basket was US$ 54.30 per bbl on 07.02.2017

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$ 54.30 per barrel (bbl) on 07.02.2017. This was lower than the price of US$ 55.44 per bbl on previous publishing day of 06.02.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3658.08 per bbl on 07.02.2017 as compared to Rs. 3725.51 per bbl on 06.02.2017. Rupee closed weaker at Rs. 67.37 per US$ on 07.02.2017 as compared to Rs. 67.20 per US$ on 06.02.2017. The table below gives details in this regard:

Particulars   

Unit

Price on February 07, 2017 (Previous trading day i.e. 06.02.2017)                                                                  

Pricing Fortnight for 01.02.2017

(Jan 12, 2017 to Jan 27, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  54.30             (55.44)       

54.03

(Rs/bbl

                 3658.08       (3725.51)       

3680.52

Exchange Rate

  (Rs/$)

                  67.37             (67.20)

   68.12

Source: PIB

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Global cooperation and increased integration have proven its worth to many economies

World Trade Organisation (WTO) director general Roberto Azevedo says there is uncertainty amongst many business leaders and governments over the presidential transition in Washington, slow global growth, and events such as Brexit. In an email interview ahead of his two-day visit to India beginning Wednesday, Azevedo told. The global trade order has never looked as uncertain as it does now. What do you make of the protectionist measure being talked about in the US and developments such as Brexit? I certainly detected a lot of uncertainty amongst many business leaders and governments when I was in Davos. Some of this is, of course, related to issues like the transition taking place in Washington along with other major events, such as Brexit, and the fact that global trade growth remains slow. There is no point in talking ourselves into a crisis. WTO rules offer a wide range of tools for countries to address their traderelated concerns.  Is there a threat to globalisation? Do you see countries becoming more inward looking? I think global cooperation and increased integration have proven its worth to many economies and will continue to do so. Nevertheless, it's clear that there is a great deal of concern in many parts of the world about the impact that global interconnection has had on people's lives. We have seen in some advanced countries, for instance, that jobs have been lost and this has created some anxiety. But the truth is that a vast bulk of these job losses come from increased productivity in factories, generated by innovation, automation and new production techniques. These factors have been responsible for up to 80% of job losses in manufacturing, and greater use of technology in the work place will continue. What governments need to do is to find ways to help displaced workers, and prepare students and workers for today's economy and its challenges. Do you see a full scale trade war with measures against imports to revive domestic manufacturing and jobs, as is the case in the US? The multilateral trading system, embodied in the WTO, provides the means to deal with trade concerns. If members operate within the framework of WTO rules, then the system will sort out the differences of views and, as a consequence, any talk of trade wars will become moot. We did not see trade wars or a dramatic increase in protectionism after 2008. Does WTO, which seemed to be lacking direction, become more relevant with the US pulling out of the Trans Pacific Partnership? Does that give you opportunity to push the Doha Round? Trade liberalisation at the bilateral or regional level is always welcome and I'm supportive of that. In addition, the WTO is performing well and will continue to do so. What is the objective of your visit to India? What do you hope to achieve with this visit? India is a vitally important member of the WTO and I try to meet with Indian officials as often as I can. I will be meeting with (commerce) minister (Nirmala) Sitharaman and with business leaders during my visit. What is the agenda of your meeting with the commerce and industry minister? I would like to hear minister Sitharaman's views and perspectives on any issue she considers of interest. In particular, I'd like to listen to her thoughts on the WTO agenda and the state of play in world trade at present. I'm sure that the expectations for our eleventh WTO Ministerial Conference in Buenos Aires this December will be a subject for discussion. What do you hope to achieve from the December ministerial? Many ministers have been explicit in calling for concrete outcomes, but where such outcomes will arise is not yet clear. We will have to see which areas of conversation become ripe for harvest by the time of the ministerial conference. Members will decide that.

Source: Economics Times

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Flipkart to work with sellers to absorb GST price hikes

The country’s largest e-commerce player Flipkart is likely to work along with its sellers to absorb any increase in end price for customers once the GST kicks in from July.  The e-commerce company is actively working with its sellers and other stakeholders rolling out several initiatives ahead of the GST implementation. “We are taking it very, very seriously and are putting all the pieces together so that the sellers and other stakeholders have it very easy when the GST sets in,” Anil Goteti, Head, Marketplace for Flipkart told BusinessLine. He said the company has been meticulously planning for the last several months to prepare for the GST.  He said the company is making use of technology to automate all the processes that might come up during the actual implementation so that there is very less human intervention.  Uploading of VAT, GST no and invoices are all being put through the automation to make it easier for the sellers to navigate through the maze of GST taxation. The company is also in talks with GST network so that it is a pioneer of sorts in the implementation of GST. It is also hand-holding the sellers and has unveiled a GST ‘genie’ programme with experts on call and has even rolled out tuition videos so that the sellers can learn from them. A set of chartered accountants have also been roped in to give tailored advice to traders. Kiosks and cafes are being set up to address any specific issues concerning the GST. “We are tying up all the ends. Sellers are our partners and we want them to have enough tools and the systems in place so that there are no hitches,” Goteti said. These systems are also being tested with the government agencies so that the company is able to iron out any issues before the GST comes into play. He also said that over a period of time, there will be benefits for the sellers as well as the consumers. He said in case the prices don’t come down across the value chain, and the rates are high, it is up to the sellers to take a call on the end price.  But he pointed out that cost pressures could happen during the initial stages but eventually it will benefit everyone. The only issue that could come up once the GST is implemented will be with regard to withholding of some amount of revenues for the sellers which they will eventually get it later.  Flipkart has also launched a special support called CareTouch programme for its top category sellers who are assigned a single entity to get all their issues resolved. Even the shipping costs have been reduced considerably for them.  He made it clear that there has been no change in the focus even after top level changes. “We are making it easier for the sellers to carry out their business on our platform. We have seen a significant progress on quality. Even after the new CEO has taken over, the direction or the focus has not changed,” he pointed out.

Source: Business Line

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Labour reforms: How Narendra Modi govt is looking to empower companies with up to 300 workers

The Modi government is fast-tracking the legislative part of labour reforms, long held up due to political reasons. Even though it hasn’t yet got the Opposition to agree to the agenda, at least one of the two important Bills in this regard will be pressed in the ongoing Budget session. If things go as per the Centre’s plan, establishments employing up to 300 will soon have the right to lay off workers without government approval and outsiders — read professional politicians — will be barred from leading trade unions in the organised sector. Currently, only smaller units employing up to 100 people can lay off workers sans government nod. Labour minister Bandaru Dattatreya told FE: “We are going ahead… The drafts of both the wage code and the industrial relations (IR) code have been prepared. Presentations to different ministries have been made and a tripartite committee meeting has been held. In the second leg of the Budget session, we will definitely introduce the wage code. Although we are simultaneously working on the IR code, it may come up only in the next session.” The proposed reforms are, however, not just industry-friendly — they also tend to make the workers’ rights more robust. For instance, the wage code will make national minimum wage mandatory for all establishments. Currently, the wage thresholds prescribed by the Centre are not followed by all states. In the proposed regime, while the states will have the power to fix the minimum wages, these can’t be below the national threshold. All four wage-related central Acts — the Minimum Wages Act, 1948, Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976 — will be amalgamated under the proposed comprehensive wage code. The IR code also proposes to bar strikes without 14 days’ notice. However, an inter-ministerial meeting convened on Tuesday to take a call on introducing the codes in Parliament was postponed due to finance minister Arun Jaitley’s busy schedule. Dattatreya said that the meeting would take place in a day or two. A fresh momentum has been imparted to passage of the codes after the go-ahead from the finance minister, a source said. The Modi government feels that labour reforms at the national and state levels are integral to improving India’s unimpressive ease of doing business rank and accomplishing the objective of making India a global manufacturing hub.

Source: Financial Express

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Labour Department elicits views on employment of women workers in textile mills

Representatives of trade unions and textile mill associations have expressed their views and demands related to employment of women workers in textile mills in the State at separate meetings conducted by the Labour Department here recently. Sources in textile mill associations said representatives of five associations took part in the meeting. Several international brands buy textile products from Tamil Nadu and some of them have agreements with their suppliers on the code of conduct that should be adopted at the manufacturing facilities. The other units here follow the laws of the Union and State Governments. Hence, the Government should ensure implementation of these rules and should not insist on the norms demanded by the international buyers, the industry representatives had said. The Government and industry associations should also recognise the sets of code of conduct brought out by a couple of industrial associations for the spinning and garment making units.  There were suggestions for compliance monitoring committees. The sources said that however, what was essential was also a change in mindset among the mills. All the units should have a policy not to employ child workers or adolescent age group women. The Government and buyers should recognise the norms suggested by the industry associations and support it, they said. Trade union sources said they had insisted that the workers should be allowed to move out of the mill premises after their shift hours. They should not be asked to stay at hostels within the mill premises. The State Government should form a committee to fix minimum wages for all the workers employed in textile mills but do not come under the apprentice category. There were also suggestions to call for tripartite meetings, involving the Government officials, trade union members and those from the mill management. A meeting of the regional-level joint action committee of the textile mill unions to be held here this weekend is also expected to discuss these issues, said the union sources.                              

Source: The Hindu

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BSE Sensex MSCI world index by 5% so far in 2017; India 5th best performing market globally

After under-performing the MSCI World Index for two consecutive years in US dollar terms, the Sensex has so far this year outperformed the global benchmark by almost 5%. The largely better-than- expected third-quarter results and a Budget without negative surprises for the market and the strength in the Indian rupee since the beginning of the year has aided this outperformance. The only other major equity indices that have outperformed the Sensex during this period are the Brazilian Bovespa, which rose by 11.7%, and the South Korea’s Kospi, which gained up to 7.9%. According to a report by Credit Suisse, India is the fifth-best performing market year to date globally. “In the first five weeks of 2017, Indian equities have outperformed global equities by 10%, nearly reversing the under-performance in November-December 2016,” it said in a note to investors. Credit Suisse also added that the post-demonetisation under-performance of the Sensex had seen its relative price to earnings ratio vis-à-vis MSCI World drop to a decade low of -1%, which, after the recent outperformance, is at a positive 5%. According to Bloomberg data, while MSCI World is currently trading at 16.28 times its 12 months forward earnings, the Sensex on Tuesday closed at 16.55 times its forward earnings. However, despite the better-than-expected corporate results in the third quarter and the buoyancy in the market, earnings per share estimates for the Sensex have continued to fall since the start of the year. Data from Bloomberg reveal that the consensus analyst estimate for the Sensex’s 12-month forward earnings has dropped by Rs 41.65 per share or 2.4% since the start of the year. However, analysts at Credit Suisse said that it is the pace of earnings cuts that matters to the market rather than the cuts themselves and the markets start to                                                                                                                                                                                                                             worry only when the pace falls below the roll-forward growth. “This pace has declined since November, but isn’t negative yet,” they observed.

Source: Financial Express

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Rupee snaps 9-day rally, plunges 19 paise to 67.41

Breaking its spectacular nine-day winning run, the rupee on Tuesday dived 19 paise to 67.41 against the US currency amid fresh bouts of dollar demand ahead of RBI's 6th bi-monthly policy review meet on Wednesday. The domestic currency had closed at a fresh three-month high overnight, largely outperforming several emerging market currencies since the beginning of this year. Renewed dollar demand from importers and corporates in the face of bullish dollar sentiment overseas predominantly added pressure on the local currency. Suspected intervention by the Reserve Bank of India in the foreign exchange market to stem the rupee appreciation, which impacts export competitiveness, also weighed on trade, said a forex dealer. The RBI Monetary Policy Committee (MPC) today began its third review meeting amid mixed expectations of possible rate cut tomorrow. Expert opinions were divided if the RBI Governor-led panel will recommend cut in interest rate by 0.25 per cent to give fillip to growth or maintain status quo because of inflationary pressure from rising oil prices. Meanwhile, the greenback staged a dramatic recovery against the major currencies in late Asian trade -- its biggest advance in nearly three weeks in the midst of growing speculation about an imminent Fed rate hike. The domestic unit resumed lower at 67.29 from Monday's closing value of 67.22 at the foreign exchange (forex) market. It remained under immense pressure throughout the day and drifted to a low of 67.44 in late afternoon deals before ending at 67.41, revealing a sharp loss of 19 paise, or 0.28 per cent. The rupee had appreciated by a whopping 98 paise in nine-day upsurge. In worldwide trade, the Pound plummeted amid broad dollar's strength and also undermined by sluggish UK macro data.  The US dollar index was trading firmly higher at 100.56 in late afternoon session.  The RBI fixed the reference rate for the dollar at 67.3692 and for the euro at 72.0716.  In cross-currency trade, the rupee continued rally against the British pound to finish higher at 83.33 from 83.77 per pound and surged further against the euro to close at 71.93 from 72.15 earlier. But, lost further ground against the Japanese Yen to close at 59.93 per 100 yens from 59.80 earlier.

Source: Financial Express

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Bank unions call for strike on February 28

The United Forum of Bank Unions (UFBU) has given a call to its members to strike work on February 28. The strike call, according to Thomas Franco, UFBU Convener and Senior Vice-President of the All India Bank Officers’ Confederation (AIBOC), is to voice their displeasure over the government’s indifference to their issues, which they contend “have accumulated and remain unaddressed.” Alleging the government of remaining deaf to their plea even while they had stood by the government on different issues — be it handling the pain of demonetisation, implementing government schemes or opening Jan-Dhan accounts — the UFBU, represented by nine trade unions, said that “the government’s indifference had forced the employees and officers of various banks to take this extreme step.” “We are on a war path after demonetisation,” he said, sharing a copy of the union’s 12-point charter of demands. Demanding compensation for the losses due to Jan Dhan and demonetisation, Franco said banks incurred huge costs on account of opening 25 crore Jan-Dhan accounts, linking Aadhaar and providing RuPay cards. “Demonetisation further added to the expenditure in various ways such as towards transit of withdrawn currency, security, disruption in regular banking activities and so on.” Much of the issues were oft-repeated ones such as the demand to halt privatisation of public sector banks; amendment to the Gratuity Act so as to make gratuity uniform for all (Central government employees and those in the banking sector); appointment of employee director and officer director in public sector banks; recruitment; recoveries from wilful defaulters; and a stop to outsourcing of core banking business. The UFBU Convener also insisted on the need for initiating immediate discussion on wage revision.

Source: Business Line

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India-Raw jute prices fall on dilution plan, lesser supplies

Prices of raw jute are going downhill with the Union textiles ministry's plan to go for dilution of the mandatory jute packaging order and dwindling crop supplies triggered by the demonetization drive. Raw jute prices have tanked to Rs 36,650 per tonne and are likely to plunge further. The price fall is from the level of Rs 56,520 per tonne in July 2016. In 2015-16, there was an unabated rise in prices of raw jute. The downtrend in raw jute prices may dissuade farmers from growing more in the 2017-18 season, feels a leading jute mill owner. "The combined effect of demonetisation and the government opting for plastic bags to meet the foodgrain requirement for the rabi marketing season has come as a double blow to the industry. The impact is already showing in softening raw jute prices," he said.  Raghavendra Gupta, chairman of Indian Jute Mills' Association (IJMA) could not be reached for comments.  Amid a projected shortfall of more than 0.17 million bales (one bale is 180 kg) of B-Twill jute bags during the rabi marketing season (RMS) for 2016-17, the Union Textiles Ministry has allowed a dilution of 10 per cent in the mandatory jute packaging order for food grains. The Jute Packaging Materials Act, 1987 mandates 100 per cent use of jute bags for packaging of food grains meant for government procurement. The estimated shortfall in B Twill sacking bags will be offset by the use of high-density polyethylene (HDPE) and polypropylene (PP) bags. Later, the ministry gave further permission for use of 0.32 million bales of plastic bags to cater to packaging requirement of the RMS. Raw jute crop size during 2016-17 is estimated at 9.5 million bales (one bale is 180 kg). However, only 65 per cent of the production has arrived so far in the market. Public sector firm Jute Corporation of India (JCI) has so far produced 0.22 million bales JCI is continuing its purchase since lower grade jute(TD-6 and below) raised in Nadia and Murshidabad regions in West Bengal and parts of Bihar are available at MSP (Minimum Support Price) rates. Further, MSP grade differences are comparatively lower to ruling market prices. This may enable JCI to achieve its initial procurement target of 0.45 million bales during this fiscal. Though JCI's procurement operations is expected to stabilize the prices and arrest falling tendencies, majority quantity of purchase will be of TD-6 and lower grades which have least scope of being used in the laid down batch mix of finished goods. This apart, the low grade varieties of raw jute have least avenue for use in manufacturing diversified jute products for which there is mounting pressure from the government.

Source: Business Standard

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Loose ends in direct tax proposals

The Budget, while being pro-growth, has taken a stern view on transfer pricing. There is scope to lower corporate tax rates. The finance minister has done a commendable job in containing the fiscal deficit and simultaneously reducing the proposed market borrowings from ₹4.25 lakh crore to ₹3.48 lakh crore, providing a thrust on infrastructure to propel growth and promote employment. Several meaningful measures have been announced for the agri sector as well as steps taken to change the colour of the currency through a digital era. H0owever, there are some troubling aspects.

Onerous provisions

Weighted deduction on research and development expenditure: The finance minister had announced in the last Budget that while corporate tax would be brought down to 25 per cent over a period of time and all exemptions would be concurrently phased out, there was no respite for large corporates. Industry associations have been representing that even when the rate is brought down to 25 per cent, tax incentive on R&D should be continued. It will also go in line with the Make India campaign.  Out of the total tax incentive of ₹98,400 crore foregone which is getting phased out, the tax incentive on R&D expenditure is only ₹8,100 crore. In several countries including the UK, Israel, Singapore and European nations where the tax rate is 20-25 per cent, the government still provides incentives on R&D expenditure. In China where the tax rate is 25 per cent incentive on R&D expenditure is provided. While the weighted deduction has already been reduced to 150 per cent from the current financial year and to 100 per cent from 2020, the finance minister should reconsider his decision to phase out the incentive for R&D.   Transfer pricing: The provisions on transfer pricing are onerous and assessees face innumerable hardships. Besides, the proposed new Section 92CD provides that as a result of any adjustment of transfer pricing above ₹1 crore, excess money has to be repatriated from the associated enterprises. This is going to pose serious challenges to the assessees concerned.  Thin capitalisation: In line with the thin capitalisation regulations in various countries, there is a provision in the Finance Bill. Interest deductible on a foreign borrowing from an associated enterprise shall be allowed only to the extent of 30 per cent of EBIDTA (earnings before interest,depreciation and taxes), if the total interest exceeds ₹1 crore per annum. However, the Indian situation differs from other countries. We still require external money to grow the economy both in the form of equity and debt. The RBI could come out with guidelines on debt equity ratio with respect to such borrowings. Private investment may not pick up unless the capacity utilisation improves beyond 80 per cent. While the effective rate of tax of large corporates could be still 25 per cent, several large companies are paying closer to the maximum rate of tax. In addition, there are several disputes and disallowances corporates have to grapple with.

Maximum rate of tax

Similar to minimum alternate tax (MAT), the Government can prescribe a maximum rate of tax of, say, 28 per cent; any artificial disallowances may be avoided to provide certainty to the assesses. This would be in line with the finance minister’s stated objective of encouraging the honest tax payer.  The finance minister has gone on record that during the demonetisation drive, banks received deposits of more than ₹80 lakh in 1.48 lakh accounts with an average deposit of ₹3.31 crore, which means we have received deposits of almost ₹5 lakh crore in cash. This number excludes another 1.09 crore people whose average deposit is ₹5 lakh in cash. We hope the income tax department will pursue this trail in a fair and objective manner.  In order to reduce cash transactions, it is necessary to educate people particularly in the rural areas (more than 650 million people) as to how to use digital payments. It is heartening to see that the Government has also addressed the issue of cyber security in the Finance Bill. With the proposed introduction of GST and the thrust towards a digital economy, we hope the Government would be able to widen the tax base in the next few years and simultaneously reduce the tax rate to propel faster growth.

Source: Business Line

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Belt and Road Initiative to reshape world economy, expert says

China's Belt and Road Initiative can greatly benefit the world and significantly reshape the global economic development if certain risks are addressed, Jean-Pierre Lehmann, an expert on the international economy, said here Friday at a conference. The Belt and Road Initiative, proposed by China in 2013, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along the ancient Silk Road trade routes. It has won support from over 100 countries and international organizations. In his speech, Lehmann, who is also the founder of the Evian Group, said the initiative, involving $2.5 trillion and infusing 1.75 percent surplus into the world's gross domestic product (GDP), could bring huge economic benefits, if some challenges, like the new-asset quality and social unrest in some of the areas within the network, are overcome. Reminding that "the narrative of the 21st century will be written in Asia by the Asians, and above all, by China as a regional and global power," Lehmann said that "China is already the main market for many countries; from Brazil to France ... there are Chinese interests across the world, from Seattle to Djibouti." China's global dimension is already obvious, he suggested. "The Asian Infrastructure Investment Bank (AIIB), set up in 2016, attracted even the US allies, and Obama failed to prevent them from joining the AIIB. China already set up 110 economic zones in 50 countries. In Xi'an (a city in China's northwest), the Summit of the Silk Road gathered 500 participants from 52 countries," he said. Some 25 percent of the world economic growth comes from China, the expert said, adding that by 2030, China will become a high-income economy with strong harmonious relations and driven by creativity and power of ideas. "The Chinese economy was made by muscle, but now it's getting more with the brain, but many do not understand this!" The world depends on China and China depends on the world, Lehmann said. Deng Xiaoping, the late Chinese leader who initiated the reform and opening-up policies, said that China cannot develop in isolation from the rest of the world. Three decades later, the world cannot do without China, the expert pointed out. Lehmann also suggested there is strong competition when it comes to doing business with China. "Often, many countries seem to have the same competitive advantages, but you should keep up the discussion and build relations for business with the Chinese." "In January 2017, the first freight train from Yiwu (in eastern China) to London became operational and Xi Jinping was the first Chinese president to come to Davos, this is staggering! We already speak of Eurasia. Things happen at an amazingly rapid pace," Lehmann said. Whereas "China's foreign policy could reshape a good part of the world's economy," Lehmann said we should not conclude from this that China wants to be the hegemon.

Source: China Daily.

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TPF2017 textile printing fair to take place in Shanghai

TPF2017, the Shanghai international digital printing industry fair to be held from April 19 – 20, 2017, will focus on the latest industry trends, print technology developments, inks and more. It will promote industry development and create a platform for digital printing machinery, supplier and users to exchange techniques and seek business opportunities.  TPF was launched in 2009 by SUNEXPO. With six-year successful operation, it has evolved into an important gathering for the digital textile printing sector and related industry professionals. In 2015, TPF was acquired by UBM Asia. The UBM Asia and CSTPF teams are working in close collaboration with each other and the industry to build the most influential and authoritative international exhibition in the field of digital textile printing. International buyer delegations from all over the world will converge at the fair. Exhibitors will get an opportunity to gain more insights about overseas demand and expand their business. Buyers from Italy, Spain, England, India, Korea and other countries are likely to visit the event. Additionally, the World Textile Information Network (WTiN), in association with the TPF2017 will organise ‘WTiN China Digital Textile Conference (CDTC)’. It will provide insights into the unique creative business opportunities provided by digital textile printing technology, and into the supply chain advantages of digital printing over traditional analogue methods. The speaker’s lineup for the conference has more than 18 experts and leaders of textile digital printing industry. Nearly 250 industry elites will gather to witness the development of digital printing industry. The conference will attract leading digital printing machinery companies, ink suppliers, digital printing consumables and design software. As the most influential conference in digital textile industry, CDTC will be a platform for suppliers and users to discuss the opportunities and challenges of this rapid-growing industry. To provide more opportunities for exhibitors to promote their high quality products and new technologies, TPF 2017 will organise several product and technical presentations. Workshops on different topics will be held, to give visitors an opportunity to gain knowledge about digital printing and its development, as well as market insights and design trends. They will focus on the hot topics of digital printing, such as applications of digital printing, ink technology, print head technology, design software and printing design trends. Industry specialists will share their knowledge to help companies stay competitive.

Source: Fibre2fashion

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Indorama founder Aloke Lohia senses US bonanza from Trump’s tax agenda

Bangkok: Billionaire Aloke Lohia sees the possibility of a major boost for his petrochemical company Indorama Ventures Pcl, courtesy of President Donald Trump’s tax agenda. The Bangkok-based maker of plastics used in items such as Coca-Cola Co. bottles generates about 40% of revenue from its North American factories. Trump’s push to cut corporate taxes and curb imports could be a boon for Indorama’s US earnings, according to Lohia. “Economically, what he’s saying will help our businesses in the US,” Lohia, 58, said in an interview in Bangkok on Monday. “I can’t complain economically if he reduces corporate tax. We produce regionally. We don’t really export from Asia to the US We get a benefit if protectionist measures are put in place.” Indorama Ventures joins the long list of businesses trying to gauge the impact of Trump’s incipient overhaul of taxation and trade policies. Republican lawmakers in the US have proposed a 20% border-adjusted levy on companies’ domestic sales and imports. The measure would replace the current 35% corporate tax rate and exempt exports. The plan faces opposition from businesses who say they’d have to pass higher import costs on to consumers. Indian passport-holder Lohia set up his company in 1994 in Thailand, where he has permanent residency. It now operates factories globally, under a strategy of localized manufacturing to serve regional markets.  Products range from plastics to worsted wool yarns. In the US, Lohia said his plants compete with imports from Taiwan, China, India and Indonesia. Curbing them would enable American factories to reduce idle capacity, he said.  More than half of Indorama Ventures’ earnings before interest, taxes, depreciation and amortization stem from North America, where the bulk of capacity is in the US. The shares have surged about 77% since early January last year, when the firm announced the purchase of a BP Plc petrochemical complex in Alabama. That’s the second-biggest gain in Bloomberg’s global equity index of large basic and diversified chemicals companies. Indorama plans to invest as much as $5 billion through 2021 to expand production and double operating income. Lohia also intends to repay some debt. Net income probably rose 63% to 9.4 billion baht ($268 million) in 2016, according to estimates compiled by Bloomberg. A 10 percentage point reduction in the US corporate tax rate would boost the manufacturer’s net income by several hundred million baht, said Naphat Chantaraserekul, the head of research at Krungsri Securities Co. in Bangkok. One challenge for the company is its purified terephthalic acid business, where prices are weak, Naphat said. Lohia and his immediate family indirectly hold about 50% of Indorama Resources Ltd, which controls 64% of Indorama Ventures, according to the latter’s website. The shareholding in Indorama Resources is valued at more than $1.5 billion.  Indorama plans to expand capacity further in the US in 2017, after the business there doubled in the past year, Lohia said.

Source: Bloomberg

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Textile makers weave clothes that can save lives of motorists

Japanese textile companies have developed fabrics that could become potential lifesavers for drowsy drivers and overheated construction workers. The fabrics, when worn, can collect and transfer biological data to smartphones and other devices, triggering an alarm if the information indicates danger. Electronics in eyeglasses have caught the attention of consumers, but an increasing number of fabric-based systems that can be worn anytime have been developed. These clothes are also aimed at monitoring and improving the performance levels of athletes. However, new uses are being explored for the cloth electronics market, which was worth 80 million yen ($715,000) in 2016 and is expected to expand to 21.1 billion yen by 2020, according to the Yano Research Institution. Textile maker Toyobo Co. and medical device manufacturer Union Tool Co. said Jan. 11 that they have jointly developed underwear that can issue warnings to motorists--especially bus and taxi drivers--when they are nodding off at the wheel. Officials said they expected the underwear to be marketed this year. The Toyobo underwear measures the heart rates of drivers. If changes in heartbeat waveforms indicate the wearer is sleepy, a warning will be issued after the data is transmitted to an outside device. Existing wearable devices fix electrodes with belts or gel material. But Toyobo’s special fabric, called Cocomi, uses thin film-like electrodes and wires, and the special underwear is as comfortable as an ordinary undershirt. Toyobo is currently conducting verification tests of the underwear with a bus company. Many fabric-type wearable systems were developed after Toray Industries Inc. and others released the hitoe textile in 2014. Most of those cloth products are electrically conductive so that electrodes and wires can be placed on them. The biological information of the wearer is collected and sent to smartphones and other apparatuses through a tiny transmitter attached to the chest or elsewhere. In December, special fiber manufacturer Mitsufuji Corp., based in Seika, Kyoto Prefecture, began selling hamon, a wearable system that records an electrocardiogram and other vital data. Hamon can be processed into seamless knitted cloth that is soft on the skin, making it available for tailor-made garments. Textile companies expect those fabric systems to prevent drivers from falling asleep and construction workers staying outside in sweltering heat from suffering heatstroke. According to the Yano Research Institute, companies are focusing more on stretchable wearable systems because they “can obtain data while maintaining comfort even during intense physical activities,” compared with wristwatches or eyeglasses.

Source: The Asahim Shimbhun

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U.S. Trade Gap Widens in 2016 as Exports, Imports Both Shrink

The U.S. trade deficit widened last year to the biggest since 2012 as exports fell more than imports, though a narrowing gap in December suggests demand is stabilizing overseas for American goods. For all of 2016, the deficit increased 0.4 percent to $502.3 billion, including a wider annual gap with Mexico and a smaller one with China, Commerce Department figures showed Tuesday. The monthly shortfall shrank 3.2 percent to $44.3 billion. The median forecast in a Bloomberg survey of economists called for a deficit of $45 billion in December. While a bigger annual deficit reflects President Donald Trump’s concern that other nations are benefiting from jobs and manufacturing at America’s expense, an improving economy makes it tough to shrink the gap as steady U.S. consumer spending drives imports. December had the strongest monthly gain in exports in four years, while imports rose the most since June. Bloomberg survey estimates for the December goods-and-services trade deficit ranged from $42 billion to $46 billion. The November gap was revised to $45.7 billion from an initially reported $45.2 billion. For all of last year, exports declined 2.3 percent, while imports fell 1.8 percent. Exports in December increased 2.7 percent, the most since September 2012, to $190.7 billion, on higher sales of commercial aircraft and industrial supplies, the Commerce Department data showed. Imports rose 1.5 percent to $235 billion on purchases of motor vehicles and materials used in manufacturing. Excluding petroleum, the trade shortfall narrowed to $38.2 billion from $39.7 billion. After eliminating the influence of prices, which renders the numbers used to calculate gross domestic product, the trade deficit shrank to $62.3 billion in December from $63.9 billion in the prior month. Net exports subtracted 1.7 percentage points from fourth-quarter GDP, the most since the second quarter of 2010, figures showed last month. The wider trade deficit followed a spike in soybean shipments that boosted exports in the July-to-September period. The economy grew at a 1.9 percent annualized rate last quarter. The trade data also showed the deficit with China, the world’s second-biggest economy, shrank to $347 billion from $367.2 billion. The shortfall with Mexico expanded to a five-year high of $63.2 billion, from $60.7 billion in 2015.

Source: Bloomberg

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Kyrgyzstan's garment production volume rises

Garment production volume in Kyrgyzstan increased significantly in 2016 as compared to the years 2013 and 2015. This also resulted in an increase in the orders for garments from Kazakhstan and the Russian Federation. The production in the garment enterprises are operating to their full potential, however, there seems to be a lack of skilled workers. The Association of Light Industry Entrepreneurs, Legprom, carried out the research that says garment producers of the country lack skilled workers and sewers. The Kyrgyzstan government will work with Legprom to find a solution, according to an official statement. The discrepancies noticed in the amounts of garment exports are due to the fact that a chunk of garments are produced by individual entrepreneurs operating with a license. The volumes of production for these enterprises have not been registered by the statistical authorities. There is also no statistical data confirming the volumes of garment products that have been supplied to the Russian Federation and the Republic of Kazakhstan. The statement also said that the a mechanism is being developed to optimise the accounting of textile products to gauge the real state of affairs in the industry.

Source: Fibre2Fashion,

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Bangladesh Government, factory Owners Shun Growing Concerns over Apparel Sector

The Awami League party (one of the two major political parties of Bangladesh), along with garment industry employers, have intensified their crackdown on apparel workers following mass walkouts over wages and working conditions in December. In recent weeks, the international media and giant international retailers, alike, have voiced concerns about the situation in Bangladesh after tens of thousands of workers took to protest in connection with the conditions of their employment, namely the harsh conditions and poverty-level wages. The Bangladesh government and garment factory owners fear the eruption of such protest efforts will negatively impact investor profits. One of the largest exporters of cheap apparel and accessories, Bangladesh’s garment industry earned $28.1 billion or 82 percent of exports last year. Around 4.5 million individuals – 80 percent of which are women – are employed in over 4,500 sweatshops throughout the country. The industry is highly lucrative for Bangladesh factory owners, as the country – which maintains much lower wages than other industrial centers, such as China, and extremely lax human rights laws – is a hotbed for international big businesses seeking cheap manufacturing. The country’s garment sector is a major source of profit for giant retail corporations in the U.S. and Europe, such as Wal-Mart, H&M, and Marks & Spencer, among others. Commenting on the garment industry – which came under fire on an international scale particularly in 2013 after the collapse of the Rana Plaza building, which housed a large array of garment factories that served as suppliers to popular Western brands, killing 1,135 laborers – at the recent World Economic Forum in Davos, Bangladeshi Prime Minister Sheikh Hasina, stated: “We are highly committed to ensuring compliance with regard to labor rights, workplace safety and environmental standards in the industry.” As noted by various human rights groups, as Hasina made these remarks, her government was stepping up its repression against garment workers. On December 11, for instance, a group of workers at Windy Apparels factory in Ashulia walked out on strike and were quickly joined by about 150,000 workers from more than two dozen factories. The strike continued for 10 days over 16 specific demands, including a wage increase to 16,000 taka ($US200) a month, up from the current below poverty-level 5,300 taka. The Bangladesh Garment Manufacturers and Exporters Association (“BGMEA”) responded to the strike by locking out workers at 55 factories. An estimated 1,600 workers were fired in connection with their protest efforts, although some reports claim the number was much higher, at over 3,500. Around 249 workers, including 14 local union leaders, were arrested. Many workers and union officials went into hiding to escape from house raids by security forces. Union offices have been vandalized and forcibly shut down, with membership documents burned and furniture removed. Many of those arrested were charged under the Special Powers Act, a law introduced by the Awami League in 1974 to quash so-called “threats to state security.” One of those arrested, brutally beaten and threatened with death by Bangladeshi police in connection with the larger protest efforts was Nazmul Huda, a well-known native journalist. Huda has been charged with violating section 57 of the Information and Communications Technology Act, which carries a minimum sentence of seven years’ jail. On January 22, the New York Times published an article entitled, “Protests in Bangladesh Shake a Global Workshop for Apparel,” voicing concerns now being raised in the U.S. and Europe. The newspaper interviewed Jhorna Begum, the wife of Jahangir Alam, a local trade union president in Ashulia, one of those still imprisoned by Bangladesh authorities. Begum told the Times that police raided their home in search of her husband. After he failed to return home, she hired a lawyer to track him down and discovered that he was being detained in an extremely dark and crowded cell. Begum was only able to speak to him briefly. “We live hand to mouth, waiting for the pay check at the end of the month,” she told the Times. Following the death of garment union leader Aminul Islam, who was found tortured and murdered in April 2012, many garment workers are cautious about speaking to the media. Islam went missing near the Bangladesh Centre for Worker Solidarity office in Ashulia, where he worked as a senior organizer. His body was later dumped near the Ghatail police station. In addition to coverage by the New York Times, which stated that “the brutal recent crackdown on protesting garment workers is proof that clothing manufactured in Bangladesh is still exacting a terrible price from the people who make it” and that “failure by the garment industry and Ms. Hasina’s government to adhere to its principles stains an industry and threatens the economy and stability of Bangladesh” – Forbes recently reported that a Bangladeshi garment worker earns $0.13 an hour, compared to $7,283 an hour (pre-tax) compensation for one of the 350 top chief executive officers (CEOs) in the United States. “This would roughly equate to the hourly rates of 16,000 employees from Bangladesh combined.” Still yet, Pennsylvania State University associate professor Mark Anner told the Financial Times last month that production costs and the real value of Bangladesh workers’ wages have been declining in recent years. Since 2013, he said, the dollar price for a pair of cotton trousers has dropped 9.3 percent in real terms. The ongoing expansion of the Bangladesh garment industry was “based largely on its cost competitiveness.” Still yet, BGMEA vice president Mohammed Nasir told the Financial Times: “The buyers go to each factory and get a detailed quote for the work … then they take the cheapest deal offered for each part of the work and demand that factories meet that overall price … Factories are desperate, so they agree. It means retailers pay around $5 for a piece of denim clothing that would sell in the west for $60.” Twenty major international apparel retailers, including H&M, C&A, Esprit, GAP, Li & Fung and others, have issued a statement warning Prime Minister Hasina that industrial unrest in Bangladesh may damage the country’s reputation as a reliable sourcing market. They called on the government to form a new wage board for the garment workers. At the same time, the giant retailers said they “do not condone illegal activities by workers, labor groups.” The call for a new garment industry wage board is an interesting one, consider that the existing wage board’s efforts have proven futile. The board failed to review workers’ pay last year, for instance, in                                                                                                                                                                                                                                                                                                                                                                                                                             contraventionofexisting labor laws, and some factories still refuse to grant a pay rise recommended by the wage board in 2013. It would not be entirely surprising if the aforementioned retailers were merely trying to save face, particularly given that their businesses dependent entirely on the cheap goods, such as the ones that they can export from Bangladesh.

Source: the fashion law

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New York Tries to Revive Garment Industry, Outside the Garment District

Max Hernandez saw a Craigslist ad for a $12-an-hour sewing job with UZI, a company in Sunset Park, Brooklyn, that makes dresses for Anthropologie. He beat out a dozen other applicants.Credit Hiroko Masuike/The New York Times Like generations of garment workers before him, Max Hernandez came to New York City to get his start behind a sewing machine. Only he could not find any work. After more than a year of looking, Mr. Hernandez, 25, finally spotted a Craigslist ad for a $12-an-hour sewing job with UZI, a tiny company in Sunset Park, Brooklyn, that makes dresses for Anthropologie, among others. “New York City is the center of the fashion world, but hardly any of it is made here,” said Mr. Hernandez, who beat out a dozen other applicants for the job. After several promotions, he now makes $15.50 an hour. As Fashion Week unfolds on glittering runways this week, the city’s once-thriving garment manufacturing industry has little to celebrate. Many companies are struggling with rising rents and labor costs and outdated work spaces and losing business to competitors overseas who can make clothes more cheaply. Block after block of factories and showrooms have disappeared from the renowned garment district in Manhattan, replaced by technology, media and consulting companies that focus on the design and marketing side of the business, if they are even connected to fashion. There were just 22,626 city residents age 16 and older making apparel, accessories and finished textile products in 2015, a small fraction of the peak of 323,669 workers in 1950, and less than half of the 59,049 workers in 2000, according to an analysis of census data by Queens College. Bestec Concept, in the Brooklyn Army Terminal, makes military uniforms. It ran out of room at its Queens factory. Credit But now the troubled garment industry is getting a lifeline. New York City officials have stepped up efforts to create a new, modern garment district — this time in Sunset Park, where large industrial buildings, affordable rents and easy access to transit lines and parking have already attracted dozens of manufacturing companies. A $115-million renovation of the city-owned Hiroko Masuike/The New York Times Brooklyn Army Terminal, a former military supply base, will expand manufacturing space there by 500,000 square feet this fall.  City officials have partnered with the Council of Fashion Designers of America, a leading fashion industry group, to help companies across the city modernize their manufacturing processes and workplaces. A joint program, the Fashion Manufacturing Initiative, has awarded $1.8 million in grants to 19 companies since 2014 to pay for technology like 3-D printers to create accessories, pattern-making and fabric-cutting software that results in less wasted fabric, and equipment that combines the fabric cutting, embroidering and stitching into one step. A city-financed marketing and advertising campaign — “Made in New York’’ — that promotes film and television productions and technology companies has been expanded to highlight locally made fashions with advertisements on newsstands, bus shelters and in Women’s Wear Daily, a publication that covers the industry. “Everybody thinks of fashion as all glitz, but this is a homegrown industry with everyday New Yorkers working behind the scenes,” said Alicia Glen, deputy mayor, who oversees the city’s economic development. “Fashion manufacturing puts food on the table for tens of thousands of families. And it needs room to grow. What’s ‘Made in New York’ is good for New York.” Currently, there are 1,568 garment manufacturing companies in the five boroughs. The largest concentration, 419 companies, remains clustered in or around the garment district, even as manufacturing space there has shrunk to 830,000 square feet from 1.1 million square feet as recently as 2009. Frank Dara, 71, has spent decades cutting fabric for companies in the garment district.Credit Hiroko Masuike/The New York Times “The streets used to be lined with trucks that were picking up or delivering to the garment district,” recalled Frank Dara, 71, who spent decades cutting fabric for companies. “Today, if you see 10 percent of what it used to be, that’s a lot.” Steven Kolb, the chief executive of the Council of Fashion Designers of America, said local garment manufacturers were as vital as ever to the city’s fashion industry. Local companies are often more willing to accept small orders and take chances on new designers than overseas manufacturers, he said. They can also turn around clothes more quickly, and their proximity allows designers to monitor production more closely.  “The closer you are to production, the better,” said Mr. Kolb, adding that it was the difference between having “a long-distance relationship with a boyfriend in L.A.” and one in which “you live in the West Village and he lives in the East Village.” For many companies, the biggest hurdle is finding a place they can afford. UZI has hopscotched from one home to another on the Lower East Side and in Brooklyn, moving each time the rent increased. Today, it makes about 600 dresses a month in a 900-square-foot studio in a walk-up building in Sunset Park. It is so cramped that fabrics have to be stored in another building three blocks away. “You know how heavy a bolt of fabric is?” said Mari Gustafson, a co-founder of UZI. “Three long blocks with 70 yards of fabric on my shoulder is going to eventually lead to my body falling apart. The main challenge is getting enough space at a reasonable price.” “Fashion manufacturing puts food on the table for tens of thousands of families. And it needs room to grow. What’s ‘Made in New York’ is good for New York,” said Alicia Glen, the deputy mayor who oversees the city’s economic development. Credit Hiroko Masuike/The New York Times More than 100 garment manufacturers have settled in the Sunset Park area, including 10 companies that lease space at below-market rates in the sprawling Brooklyn Army Terminal and another city-owned building. Last month Mr. Kolb took 25 factory owners on a tour of Sunset Park, saying that in the last decade more companies have become willing to leave Manhattan. On a recent morning, jackets were being assembled by women behind Juki industrial sewing machines at Bestec Concept in the Army Terminal. The company, which makes military uniforms, opened a second production site in the 37,500-square-foot space last year after running out of room in its Queens factory. A $300,000 machine that cuts fabric with lasers sat nearby, ready to do the work of three people  its cost was partly covered by a grant from the Fashion Manufacturing Initiative. Peter Kim, 46, a co-president of the company, said the machine — the size of three pool tables — would not have fit in the Queens factory, but at the Army Terminal, it was simply loaded onto a huge freight elevator and rolled out onto the floor. Malia Mills is another recent arrival in Sunset Park. Ms. Mills, 50, moved her company to an 11,000-square-foot loft in Industry City, a complex of redeveloped buildings, in 2014 after it outgrew its previous home in the garment district. Ms. Mills now has enough space for a “fabric library” and plans to add more sewing machines and equipment. She declined to disclose her rent, saying only that it was about half as much as what she previously paid. She has used the savings to expand her business, including opening two new stores in California and a temporary pop-up store in Houston. “I wish we had done it sooner,” she said of the move. There has also been an unexpected benefit: neighbors with skills other than fashion. She has called upon a pillow manufacturer, a furniture maker and a technology consultant, among others, for help and ideas about running her business. “You are learning from one another,” she said. “There is a diversity of products and mind-sets that you find out here that is amazing. It has broadened my perspective.”

Source: The New York Times

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Ghana: Textile industry hopeful of business boom under new Govt.

Local textile manufacturers are anticipating a rebound in their operations following policies outlined by the Trade and Industry Minister, Alan Kyerematen. To this end, the manufacturers are hopeful they can face competition from imported textiles and pirated products. Among the key agenda for the NPP government is to make Ghanaian businesses more competitive with counterparts across Africa and at the global market level. In line with this, the Trade and Industry Ministry has among other things pledged its commitment to ease access to credit and cut down taxes. The two factors plus the high utility tariffs have increased the operational costs for local manufacturing companies. But the Marketing Director at GTP, Stephen Kofi Badu believes Mr. Kyerematen’s past experience in the garment industry would translate in strengthening the local textile manufacturing sector. “We are looking forward to the day when the local manufacturers will begin to boom again where we will produce our own textiles locally and consume it. We want the promises made by the minister be quickly implemented. Top of that is for him to reduce the utility rates, specifically electricity and water. That if they are able to do will go a long way to affect our profitability.” Stephen Badu was also confident of the Minister’s ability to clamp down all undue competition and render them productive. “We also want him to really help us with fellow minister for finance to empower CEPS. They are the state authority mandated to check our borders and all these counterfeits come through the borders. So if they are able to tighten control at the borders, hopefully it should help minimize the effects of counterfeit.” Last year, GTP laid off 178 workers over operational challenges. The affected staff comprised 138 permanent and 40 casual workers. The company’s Marketing Director attributed the situation to a restructuring of the company’s operations to sustain its viability. By: Pius Amihere Eduku/Elvis Washington/citibusinessnews.com/Ghana

Source: citifmonline

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The EU Council Abolishes Belarusian Textile Credits

At today's meeting in Brussels, the Council of Ministers of the European Union has unanimously adopted the decision to abolish credits on import of Belarusian textile products, naviny.by informs. Earlier, on January 19, the draft decision on abolition of autonomous EU import credits for Belarusian textile products was approved by the European Parliament and on 1 February by the COROPER. The EU has practiced credits for 33 positions of the Belarusian textile since 1993. 11 positions are the most promising points of export - cotton fabrics, trousers, blouses, shirts, underwear, coats, raincoats, jackets, dresses, skirts, knitted outwear, linen fabrics. Since 2005 when the EU under the WTO treaty stopped to set credits for import of textile products Belarus has remained almost the only country which supplies are still strictly regulated. The issue of credit revocation related to some factors - how far Belarus would get traction on accession to the WTO, what agreements would be reached with the EU, how much the Belarusian light industry would be integrated in the Europe's one. In 2009 the European Commission abolished quota on 13 of 33 positions of the Belarusian textile.

Source: Charter 97

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Lenzing develops new fibre generation to drive circular economy

Lenzing has developed a new fibre based on cotton scraps and wood. Refibra is the first cellulose fibre featuring recycled material on a commercial scale and was launched today at Première Vision textile fair in Paris. The fibre is produced in the Tencel production process. Tencel, already a market success as an eco-friendly fibre, is now achieving another key milestone by creating from natural resources what is likely the most sustainable fibre. According to the manufacturer, Refibra from cotton scraps and wood will further build Lenzing's reputation as a leader in the field of environmental fibre technology and will push new solutions in the textile industry towards circular economy by recycling production waste. "For Lenzing, developing circular business models in the fashion industry ensures the decoupling of business growth from pressure on ecological resource consumption. It reduces the need to extract additional virgin resources from nature, and reduces the net impact on ecological resources," explained Stefan Doboczky, CEO of Lenzing Group, and Robert van de Kerkhof, CCO. Reborn Tencel fibre The new Tencel generation Refibra stands for Reduce, Reuse and Recycle. “The brand name Refibra and the claim Reborn Tencel fibre illustrate immediately that this new kind of fibre is made of recycled materials promising reduced reliance on natural raw materials,” commented van de Kerkhof. “Because Refibra is based on the Tencel fibre, which has been internationally recognized for its environmentally responsible closed loop production process, Refibra offers a deep sustainability profile that clearly contributes to circular economy.” Refibra with fibre identification Transparency becomes an increasingly more important issue in the textile industry to prove for example material origin. To assure customers that the fibre, made from recycled material, is really in the textiles, Lenzing has developed a new identification system. According to the company, the system makes it possible to identify the Refibra fibre in the finished textile. This is said to guarantee transparency in the overall processing chain. The Refibra fibre itself is part of the global Lenzing Branding Service and the brand is licensed once the textile has undergone a certification process. “Tencel itself is an environmentally responsible fibre of botanic origin. With Refibra, we add to the future of manufacturing and start to reassess waste as resource. The target is to close the loop. We will not stop our innovation before we are there,” said van de Kerkhof said. “Lenzing is working for a better planet.” International partnerships “Close cooperation with leading companies who attach particular importance to sustainability is a pre-requisite for a successful market launch,” said van de Kerkhof. "These pioneering companies offer the possibility of jointly developing concepts that contribute to a more sustainable fashion industry and promote the circular economy in this sector as well.”

Source: Innovations in Textiles

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