Energy Efficiency Services Limited (EESL) will sign a memorandum of understanding (MoU) with two Surat based textile fabric processing units for installing energy efficient equipments. EECL will install the programmable logic controller (PLC) at these two facilities as well at the caustic recovery plant at the nearby Common Effluent Treatment Plant (CETP). Energy Efficiency Services Limited (EESL) is a company operating under the union power ministry. The South Gujarat Textile Processors Association (SGTPA) will be suggesting the names of the fabric processors taking part in the initial trials. "EESL will choose two model units for improving energy efficiency in their plants in Surat,” a leading daily quoted the chief general manager of EESL, S P Garnaik as saying at a workshop in Surat. “The main aim is to expand production and at the same time save energy.” Once EESL achieves success with these trails, other fabric processors will be encouraged to join the project. The project will be funded by the United Nations Industrial Development Organisation (UNIDO) with support from the Global Environment Facility (GEF). (AR)
Source: Fibre2Fashion
In order to encourage textile industry and to encourage sale of powerloom clothes of different states, a buyers and sellers’ meet from February 16 to 18 at Gujarati Mandal, Sardar Vallabh Bhai Bhawan, Civic Centre, on Thursday. The program is being organised by the Regional Office Indore and Power loom Service Centre, Jabalpur, Textile Commissioner, Ministry of Textile, Government of India. In this exhibition cum sale the dress material including Saris, Bed sheets, Towels, Gamcha, Gaadipaat, Shirting Bags, Shirting, Garment, Carpet, Mat, Ladies Suit, etc by the power loom entrepreneurs of Uttar Pradesh, Gujarat, Maharashtra, Chhattisgarh states. Around 30 stalls have been put-up in the exhibition offering extensive and wide collection of designer and exclusive material. Shrayansh Jain, Managing Director, Jabalpur Garment and Fashion Design Cluster opened the meet. Ravi Gupta, Chairman, Mahakoshal Chamber of Commerce and Industry presided over the program. On this occasion Madhya Pradesh State Power loom Association, Burhanpur, Director, Alok Tiwari, Garment manufacturing Association, President, Sujeet Jain, Textile Commissioner, Indore Office Incharge, Pranav Parasher, General Manager, District Trade and Industry Centre, Devbrat Mishra along with representatives of different industries of Textile related works were present. Program commenced with recitation of Saraswati Vandana and dance performance by a child artist Lakshita gathered appreciation. Organiser, Textile Commissioner Regional Office, Indore and Power loom Service Centre, Jabalpur officials have appealed the residents of the city to visit the exhibition to choose the power loom made textile material of their choice directly from the entrepreneurs running powerlooms in different states of the country.
Source: The Hitavada
The branding exercise is very similar to that of handloom items which has been launched recently. It will also generate better quality assurance and certification and selling of handicrafts products in the International markets. GREATER NOIDA: The Department of Textiles is working on branding of handicraft The branding exercise is very similar to that of handloom items which has been launched recently. It will also generate better quality assurance and certification and selling of handicrafts products in the International markets,items which will be introduced to the market very soon, a top Textile Ministry official said today. Rashmi Verma, Secretary (Textiles), Ministry of Textiles said today at the inaugural session of the 5-day handicraft and gift fair 'IHGF- Delhi Fair Spring 2017' at India Expo Centre & Mart, Greater Noida. Artisans and manufacturers of Indian handicrafts at craft clusters are to be guided for creating new products to be competitive and EPCH is already playing key role in providing platform and hand holding at IHGF-Delhi Fair to products being made by artisans, craftpersons and upcoming entrepreneurs from different craft clusters to interact directly with the International buyers." Through this direct buyer-seller meet Indian handicrafts can grow further not only in terms of exports but can further enhance the image of brand India in the market of home, fashion, lifestyles and textiles across the world," she said. She expressed satisfaction that VRIKSH certificate for wooden items has been accepted worldwide. Rakesh Kumar, ED EPCH said buyers from renowned International buying companies having large number of stores such as New Edition Home BV Netherlands, TOK & Stok, Brazil, E&L, Australia, ROOST, USA, Accent Decor Inc, USA, Two s Company Inc., USA, MOE s Home, Canada, Kangaroo Gmbh, Germany, Kopyko, Venezuela are visiting this edition of the show. Apart from overseas buyers, domestic volume retail buyers from many leading retail chains of India and e-commerce companies have become regular visitors to the fair and home, lifestyles, fashion and textile products have attained sizeable place in every Indian chain stores such as Good Earth, Furniture Republic, Fab India, West Side, Archies, DLF brands ltd, @home, Shoppers Stop, Lifestyles group, Urban Ladder, Pepperfry. Ajio, FabFurnish and Shopclues.
Source: PTI
More than our foreign policies, it is US foreign policy that is impacting trade. Iran is a natural ally and ports like Chabahar will prove immensely beneficial. Yet because of US sanctions, we are facing great difficulty in overseas remittances and cross-border trade.
CHENNAI: EEPC India, an initiative of the Union Ministry of Commerce and Industry, which recently celebrated its 60th anniversary has been pushing for higher exports of Indian machinery and engineering solutions in markets as far-flung as Vietnam to Iran. B Sarkar, executive director, talks to TOI about EEPC's policy and outlook for 2017. Excerpts: Will the Trump regime throw hurdles in the way of India's exports to the US? We are seeing no immediate, short term impact, but there are long-term grave implications with a protectionist regime. Castings, valves, forgings, are heavily imported by US companies from Indian makers. Now, Trump can talk of 'Make American, Buy American,' but ultimately it will result in higher labour costs, tighter environment laws and heavier clearance for manufacturing industrial equipment. Industries there will also have to contend with a stronger union and cannot really make their products with a competitive edge. With the recent slump in the export market, how does 2017 look? While it is true that the engineering export slumped to $56 billion in 2016 from $70 billion in 2015, we expect the market to rebound. In the March quarter alone we are expecting a growth of 15%. With Chinese products flooding the market, how are Indian companies trying to be competitive? While China can produce products in mass, Indian companies offer innovation and smart solutions. For instance, if asked to produce 2,00,000 pieces of industrial valves they would surpass us in offering a superior product at a cheaper price. But when asked to custom-make an order for Siberia, withstanding high temperature, high pressure, Indian companies have the upper hand. We are a country high on innovation. For instance there is 2 HP light, compact tractor, we have designed, that is a best-seller in Bangladesh, Myanmar. That is because, we have accounted for the small-scale agriculture, lack of organised farming in these countries. Large tractors, traditional auto players have not make a dent, even as our tractors are selling like hotcakes. Have our foreign policies impacted Indian exports? Because of cheap oil and a lot of old cars on their roads, Iran has a huge auto maintenance market. We can really deliver there and in agricultural equipment, food-processing machines — provided the foreign policy climate improves. In the last decade, Indian exports have improved with which countries? We have really improved our relationship with SAARC nations. Apart from that we are being welcomed in countries like Vietnam, Cambodia, which have an inherent anti-China bias. They also appreciate that India provides quality over quantity in our textile machinery and other exports — unlike China. Kenya is another country, where we have made great strides in selling our food processing units. We have devised low cost ovens, dough mixture machines that help small entrepreneurs there make cookies, biscuits and special, made-to-order cakes. With an increasing protectionist policy in the US, Britain, what should be India's response? Protectionist policies don't help anyone. Neither does mixing politics with religion. We ought to think of free trade and competitive pricing to drive economic growth worldwide. Protectionist policies will only increase the cost of manufacturing, hiring local talent and result in higher prices for the end-consumer. India's focus now is on quality; on competitive pricing; on providing end-to-end solutions. That we feel will prove a differentiating factor and make the country stand out in the world market.
Source: The Times of India
After thrashing out the contentious issue of administrative turf, Finance Minister Arun Jaitley is set to meet state finance ministers on Saturday for what could be the second-last meeting of the Goods and Service Tax (GST) Council before the expected July 1 rollout of the new indirect tax system. On the agenda are the ratification of supporting pieces of the GST legislation and a proposed compensation law. Most of the contentious issues the council has been dealing with, including cross-empowerment or dual control and rate slabs, have been dealt with in the previous meetings. The 10th meeting of the GST Council to be held at Udaipur would be crucial. The council’s consent to the draft integrated GST, central GST, and state GST Bills are required before the first two can be taken up in the Budget session. The Parliament session would reconvene on March 9. Each state’s legislature will also have to pass their own state GST laws. “The GST council meeting on Saturday could be the second-last meeting before the rollout of the nationwide law," a senior government official told Business Standard. “We could have one more meeting in mid-March. After that, the council may only meet next once the tax comes into existence." The official said as the draft laws have been examined by the law ministry, getting the GST Council’s nod should not be much of a problem on Saturday. The council could also discuss an “anti-profiteering" clause in the draft laws that would ensure sharing the benefits of lower taxes with consumers. The clause provides for an authority to examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have resulted in a commensurate reduction in the price of the said goods or services supplied. The draft laws will also make it clear if e-commerce companies will collect from their customers two per cent service tax and pay it to the government. The council could also finalise the definition of agriculture and agriculturist and decide on the constitution of a National Goods and Services Tax Appellate Tribunal to adjudicate disputes. The Centre and the states have agreed to provide full compensation to states losing revenue due to GST for the first five years. The base year for calculating the revenue of a state would be 2015-16 and secular growth rate of 14 per cent would be taken for calculating the revenues of each state. In the previous GST Council meeting, the deadlock was finally broken on the issue of administrative control over assessees, when the Centre decided to allow states to have control over 90 per cent assessees up to Rs 1.5 crore of annual turnover. Currently, more than nine per cent of service tax assessees and 85 per cent of the VAT taxpayers have a turnover below Rs 1.5 crore. Those with an annual turnover over Rs 1.5 crore would be assessed by the Centre and the states in the ratio of 50:50. Under the proposed GST, taxpayers with turnover of more than Rs 1.5 crore are estimated to contribute almost 90 per cent of the revenue. The council has already approved GST rates at five per cent, 12, 18 and 28 per cent and a cess above the peak rate for demerit and luxury items such as tobacco, big cars, etc. Meanwhile, the Federation of Biscuit Manufacturers of India has urged the GST Council to keep biscuits in its lowest slab as biscuits are items of mass consumption and higher taxation would hit its production and consumption, hitting employment in the industry.
Past Decisions
Approved GST rates: 5%, 12%, 18% and 28% and a cess above the peak rate for demerit and luxury items such as tobacco, big cars, etcThe deadlock on the issue of administrative control over assessees was solved in the previous council meetingThe Centre decided to allow states to have control over 90% assessees up to Rs 1.5 cr of annual turnover9% of service tax assessees and 85% of the VAT taxpayers have a turnover below Rs 1.5 crThose with an annual turnover over Rs 1.5 cr would be assessed by the Centre and the states in the ratio of 50:50
Source: Business Standard
The park, which is coming up on 2,000 acres, is expected to create large-scale employment. Around 1,200 acres have been earmarked in the first phase of At least ten industrialists from Tirupur have committed to invest in Telangana, its Minister for Industry and Commerce KT Rama Rao has said. The state is trying to woo investors to the mega textile park in Warangal. Development, and according to the minister, the vision is to have a “fibre to fabric (end-to-end)” facility. Prompt approvals Rao, who was touring this part of the state, said, “Telangana has been ranked top in ease of doing business. The investor can self-certify and commence the project, although for regulatory purposes, we ask you to register online simultaneously.” “If it is a mega project, we promise approval in 15 days. If the promoter does not receive the approval within the specified time, the project is deemed certified, but the bureaucrat who had failed to clear the proposal is fined ₹1,000 a day for the delay,” he added. Highlighting the advantages of investing in the textile park at Warangal, the Minister said, “Telangana produces 60 lakh bales of cotton, but the consumption by the local mills is just around 10 lakh bales. The surplus is offloaded in States such as Tamil Nadu. The mills in this region could relocate and enjoy proximity to raw material source.” Earlier, addressing the management students at PSG College of Technology, he urged them to “think big” and tap opportunities. “There is no bigger power than human intellect,” he said. Pact with PSG College PSG and Department of Handlooms and Textiles and Apparel Export Parks, Government of Telangana, inked an agreement, with the former undertaking to provide technical assistance in skill development and training and R&D support for technological upgradation. Telangana on its part has offered to provide funds for specific tasks assigned to PSG. Rao, accompanied by Jayesh Ranjan, Secretary (IT), and Shailaja Ramaiyer, Director of Handlooms and Textiles, Telangana, visited Tirupur and Coimbatore.
Source: Business Line
A Sakthivel COIMBATORE : The Federation of Indian Export Organisation (FIEO) is in talks with various agencies to set up a technical textile cluster in Tamil Nadu, where common facilities, including R&D, could be provided for start-ups, A Sakthivel, Regional Chairman, FIEO (Southern Region), said. Stating that very few are into export of technical textiles at present, he said the potential is immense, but exporters would have to look at product diversification to achieve higher growth. India’s export performance data for January 2017 has been positive and has been so the last five months of the current fiscal after two years of continuous negative growth. After lowest growth during 2016, world trade is expected to be better during 2017 and 2018 atleast in emerging economies. But the prices of all products have started to slide globally and this could pose a huge challenge for the product manufacturing sector in India. “Commerce Ministry should consider the present market situation and extend better facilities to the exporters in its mid-term review of Foreign Trade Policy,” Sakthivel said.
Source: Business Line
Budding designers: A student operating a spinning wheel (charaka) before a rally organised by SIDS, to promote Khadi products on Friday. | Photo Credit: V_RAJU. Students and faculty members of city-based Samana Institute of Design Studies (SIDS) on Friday hit the roads as part of a road show to promote use of khadi fabric. The budding designers carried placards with slogans urging people to embrace the humble fabric and become part of a bigger cause. The idea is to revive khadi, the yarn Mahatma Gandhi used to weave the country’s Independence. “A symbol of self-reliance and rebellion during the country’s struggle for Independence from the British in the first half of the 20th century, khadi is produced mostly by micro and small enterprises in the country,” said SIDS CEO Sheeba. The participants were all clad in khadi to send home a message that khadi was the need of the hour. “We at SIDS are promoting the fabric in a big way and we want people to join the endeavour. Andhra Pradesh, being a major producer of khadi fabric, the efforts should be to extend patronage that, in turn, will help the economically backward weavers who have managed to keep this wonderful art alive,” said Samana Moosavi, the Managing Director of SIDS.
Source: The Hindu
IL&FS Skills Development Corporation Ltd unveiled the Recognition of Prior Learning (RPL) programme for the apparel sector, under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2.0, at Faridabad based Shivalik Prints, a knitwear producer and exporter. IL&FD Skills is a joint initiative of IL&FS Education and National Skills Development Corporation (NSDC). RPL is a platform to provide recognition to informal learning or learning to get equal acceptance, as the formal levels of education. The aim of RPL is to align competencies of the unorganised workforce of India to National Skills Qualifications Framework (NSQF), a competency-based programme that organises qualifications according to a series of levels of knowledge, skills and aptitude. The programme aims to impart skills training for existing workers to align the competencies of the unregulated workforce to the NSQF under PMKVY 2.0 RPL scheme. RPL will focus on enhancing the career and employability opportunities of an individual as well as provide alternative routes to higher education.
Source: Fibre2Fashion
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$ 54.49 per barrel (bbl) on 16.02.2017. This is same price of US$ 54.49 per bbl on previous publishing day of 15.02.2017. In rupee terms, the price of Indian Basket increased to Rs. 3647.88 per bbl on 16.02.2017 as compared to Rs. 3646.31 per bbl on 15.02.2017. Rupee closed weaker at Rs. 66.95 per US$ on 16.02.2017 as compared to Rs. 66.92 per US$ on 15.02.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 16, 2017 (Previous trading day i.e. 15.02.2017) |
Pricing Fortnight for 16.02.2017 (Jan 28, 2017 to Feb 13, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.49 (54.49) |
54.67 |
|
(Rs/bbl |
3647.88 (3646.31) |
3683.12 |
|
|
Exchange Rate |
(Rs/$) |
66.95 (66.92) |
67.37 |
Source: PIB
"Border adjustments" have quickly gone from the hottest idea in U.S. business-tax reform to one of the most reviled. One reason for the rising skepticism is the fear that border-adjusted taxes -- simply described as a tax on imports and a subsidy for exports -- would increase prices for American consumers. But they don't have to. The problem is that border adjustments create short-term uncertainty. U.S. retailers that import many of their products from places like China and Mexico fear these levies will either hurt their bottom lines or their customers’ wallets. Border adjustments are a feature of virtually all of the tax systems employed by our trading partners, so adopting them will in essence level out our tax system that has historically had it backward. Economists project that border adjustments will cause the dollar to strengthen relative to other currencies, and that the increased tax on imports will be fully offset by imports’ reduced cost. This offset is all but certain in the long term. It’s the short term that’s at risk. This dilemma is akin to what economists characterize as a market failure. House Republicans have a business-tax plan with this border-adjustment feature -- called the destination-based cash flow tax -- that will solve so many problems. At the right rate, it will raise the necessary revenue, jumpstart our economic growth, provide relative immunity from the global tax race to the bottom, and bring an end to the profit-shifting shenanigans eroding our tax base and Americans’ sense of fairness in our tax system. It will result in a net tax cut to retailers and many other businesses, and should actually take some of the tax burden off the shoulders of workers. But moving to this system creates uncertainties and potential costs that businesses like retailers are rightfully protesting. If the dollar doesn’t appreciate, retailers and other net importers could face catastrophic losses, and consumers could be hit with higher prices, all while net exporters see a large benefit. The government can correct this by providing transition rules that kick in if the currency adjustments don’t offset the effects of the tax in the short term. Most businesses will ultimately be winners under the destination-based cash flow tax. Retailers, in particular, should benefit because they pay nearly the highest effective tax rate under our current system and will reap significant benefits from a lower rate when currencies do adjust. And, with true competition, American consumers could actually see prices decrease. Promises for job and wage growth stand a much better chance under this reform plan than the more timid alternatives. There will be losers under the plan, including some tax lawyers -- present company included -- who have spent their careers coming up with convoluted but permissible ways for multinationals to pay as little tax as possible. But once the currency adjusts and businesses are taxed under a new consumption-based system, the biggest losers will be businesses few Americans have sympathy for: those that abandoned the U.S. for low-tax locales, and certain foreign and U.S. multinationals that legally manipulate the current rules to minimize their U.S. tax burden. The other options for fundamental business-tax reform in the U.S. include taking the traditional path that broadens the corporate-income tax base and lowers the corporate-income tax rate. Or we could adopt an add-on traditional yet regressive consumption tax but keep the corporate income tax in much the same way our major trading partners have. One option wouldn't resolve competitiveness concerns, the other is politically untenable, and both preserve opportunities for eroding the corporate tax base through profit shifting. The destination-based cash flow tax is expected to indirectly reduce the tax burden on workers and should actually be more progressive than our current corporate income tax. In addition, its expensing provision will shrink the tax bills of businesses that invest in equipment that makes their workers more productive. In other words, it’s the only type of radical reform that both a Democrat and a Republican could love. To make it palatable, the plan needs intelligently crafted transition rules to protect importers from currency-adjustment failures and consumers from price increases. Tax credits could temporarily shift net exporters’ windfalls to net importers until exchange rates sufficiently adjust. Other experts have suggested that Congress ask the Federal Reserve to adopt policies to ensure that the dollar will appreciate sufficiently to fully offset the border adjustments. Lawmakers should start introducing such proposals now to show that they’re committed to addressing the fears and doubts about the idea. If they don't, we could lose the best chance we have to boost U.S. productivity and long-term growth.
Source: Bloomberg
As the Indian chapter of the BRICS Business Council prepares to hand over the chairmanship of the council to China in 2017, it is time to reflect upon the progress made over the last one year and the key actionable agenda that needs to be carried forward with full vigour. The global economic environment is witnessing significant change, which throws up challenges and uncertainties for emerging economies like BRICS and poses a risk to their growth. Enhancing intra-BRICS economic co-operation assumes importance in this very context. A progressive co-operation mechanism amongst BRICS across key economic areas is vital to support the growth and development agenda in each of the countries. Foremost, there is a need to double the level of intra-BRICS trade from the current level of $242 billion. This should be achievable, given the level of complementarities our economies share. In-fact, we need to widen our trade basket and include more value-added products. The BRICS Summit and related meetings in Delhi and Goa last year saw several fruitful discussions at the political, academic as well as business levels in a wide range of areas, including energy, agriculture, infrastructure, manufacturing, skill development and financial services. The BRICS Business Council has tabled several proposals in these areas. One of our key proposals has been the need to evaluate the feasibility of a BRICS Credit Rating Agency, endorsed even in the official declaration issued at the end of the Summit meeting in Goa. The idea of an independent rating agency takes into account the need for a home-grown institution that is the best in quality and also aligns its rating methodology to account for the emerging market business realities. Such an institution will provide a more thorough and complete credit rating analysis of companies and thus facilitate cross–border investors to take a more informed decision while evaluating opportunities in emerging market economies such as BRICS. A special expert group has been set up under the aegis of the BRICS Business Council to work out the modalities of such an agency based on market principles. Once established, it would be the next big success for the BRICS, the first being the New Development Bank (NDB). NDB has made tremendous progress. Within one year of its establishment, NDB sanctioned loans worth $811 million in sustainable development projects across the five BRICS countries. To further the financial assistance towards sustainable development projects, the BRICS Business Council has asked NDB to fix a specific percentage of its resources for funding sustainability projects aligned to the achievement of SDGs in BRICS. It has also asked for NDB’s assistance in unlocking the capital markets potential in BRICS countries for development financing. The speed of NDB’s progress is an indication of the collective aspirations of BRICS. In a recent statement at the World Economic Forum, K V Kamath, president of the NDB, said that it is working towards doubling lending every year over the next two-three years. This presents huge opportunities for India and other BRICS countries to seek finance for their developmental projects. With NDB’s support, the BRICS co-operation itself will get a boost and can also facilitate integration of regional value chains in manufacturing. BRICS Business Council has also sought support of NDB in creating a BRICS Infrastructure Project Development Facility, which shall aim to provide assistance on the entire gamut of project development expertise including project identification, pre-feasibility, post-feasibility, preparation of DPR and environment and social impact assessment. Through such a platform, projects can be converted from the conceptualisation stage to the bankability stage. The Council looks forward to meaningful discussions in all these areas at its mid-term meeting as well as in the interactions with NDB officials in the coming months. The BRICS countries have also developed a framework for BRICS e-commerce co-operation to boost e-commerce development, enhance capacity building and co-operation in developing infrastructure. Such a mechanism can be specifically targeted towards MSMEs. An e-commerce platform can help MSMEs from the countries overcome logistical and geographic challenges for better access to markets. The idea has potential to enhance intra-BRICS trade. Another interesting proposal that is under discussion amongst members of the BRICS Business Council is that of the New International Payment Card System for BRICS, with a view to promote settlements of international transactions in national currencies. The BRICS Business Council has also recommended creation of a BRICS Angels Network, which can help talented young entrepreneurs across BRICS countries to create an eco-system of start-ups, thereby fostering entrepreneurship and promoting innovation among the BRICS economies. Over the years, the five-member grouping has expanded its agenda for economic cooperation considerably. It is also reshaping the global order and strengthening the global governance architecture through its institution-building capabilities and commitment from its leaders towards co-operation for mutual growth and development. The BRICS nations have not shied from taking bold decisions and implement the same diligently. Amidst the current global economic scenario, new approaches, mechanisms and models would be required to strengthen intra-BRICS co-operation. The author is chairman, BRICS Business Council, and past president, FICCI
Source: Financial Express
India's 2017 naphtha exports are expected to fall, after the volumes rose for the first time in five years in 2016, and this would prove untimely for buyers who are already hit by tighter supplies. Fewer European naphtha in Asia and a lack of alternative liquefied petroleum gas (LPG) feedstock were reasons that turned the weak naphtha around early this year. A fire mishap at Abu Dhabi's Ruwais refinery, and now India's supply reduction have deepened the supply dent, sending Asia's naphtha margins (price difference between naphtha and Brent crude) to a 13-month high of $115.18 a tonne on Feb. 14. India's 2016 average monthly gross exports stood at 700,000 tonnes, official data showed, their highest since 2012. Their net exports (the difference between total exports and imports) were 460,000 tonnes."These are expected to fall to 370,000 tonnes-380,000 tonnes a month this year," said Premasish Das, Director for Asia and Middle East downstream oil markets at consulting firm IHS. Naphtha is required for India's growing petrochemicals and gasoline capacities. In January, Oil and Natural Gas Corp (ONGC) stopped exporting naphtha from Hazira in western India after diverting the fuel to a cracker operated by ONGC Petro additions Ltd (OPaL). In the past, ONGC has exported one or two 34,500-tonne naphtha cargoes a month from Hazira. Indian Oil Corp (IOC), which sold at least 460,000 tonnes of gasoline-grade naphtha in 2016, only makes sporadic offers from Paradip after a gasoline-making unit started up. "Growing Indian naphtha demand affects Asia. OPaL, for instance, will buy naphtha from others and not just from ONGC," said a Singapore-based source, whose company purchases from India. Reliance Industries would also be importing heavy naphtha once its new paraxylene plant is fully commissioned, traders said. Asia's 2017 monthly net supply deficit is expected to rise to 4.2 million tonnes versus 4 million tonnes last year, said Das. The Middle East and Europe Mediterranean will fill the gaps but the tightness could persist for the next three months due to refinery maintenance and low-arrival levels of Western cargoes. "Naphtha strength should last through April and even May," said a second Singapore-based source, who also buys Indian naphtha. "The current tightness has more to do with unplanned outages and winter," said Das. On a global basis, naphtha market will be oversupplied until at least 2020, IHS Markit said in a press statement.
Source: REUTERS
China, which is heavily investing in textile manufacturing facilities is setting up textile park in its province bordering the south Asian nation at Xinjiang, a leading trade body said on Wednesday due to this Pakistan’s struggling textile industry would face a new threat of further losing its market share, as it is likely to give a heavy blow to Pakistani textile exports. The Karachi Chamber of Commerce and Industry (KCCI) said that the anticipated glut of textile and garment from the Xinjiang textile park in the export as well as domestic markets of Pakistan poses a serious threat to Pakistan’s textile sector already struggling to remain afloat. The KCCI, which represents more than 50,000 businesses across the city, said that China’s textile-ware from Xinjiang passing through China-Pakistan Economic Corridor (CPEC) to the Middle East and North Africa (MENA) region would experience a further reduction in costs in terms of transportation. It said China is giving primary importance to its Xinjiang province, bordering Pakistan, under the CPEC. The province accounts for 60 percent of China’s seven million tons of cotton production. The under-developed province is seeing a rapid industrialization under China’s plan of developing it into a major textile exporting hub. The world’s second biggest economy is investing $27 billion in Xinjiang’s transport infrastructure for better regional connectivity in 2017 alone, while a $2.8 billion is being invested into standard garment factory constructions. By 2020, Xinjiang is expected to produce about 500 million garments a year. China is also building a 3,000-kilometre long road from Gwadar in Pakistan to Kashgar in China. The route would cost-effectively connect the China’s western and central regions to MENA. Textile exports contribute around 60 percent to the Pakistan’s total exports, which are already on the declining trend owing to a host of factors, including high production cost and lack of government incentives. A $1.7 billion textile package, recently announced by the government, doesn’t match the incentives provided to textile exporters by China, the Karachi Chamber said. Pakistan would simply not be able to compete with the Chinese exporters. Pakistani markets are already awash with hordes of low cost Chinese products, which are already manufactured in the country. Chances are high that Pakistan would be experiencing a similar influx of goods under China’s transit trade. The trade body, however, urged the government to smartly negotiate and exploit CPEC to achieve maximum economic strategic depth for Pakistan and to make all transactions transparent. It called for improvement in competitiveness of textile production and diversification in the country’s exports. Infrastructural improvement will encourage green-field industrial setups, but it is the focus on high tech and value additive industries that will provide the real platform for competitive trade in the global economy. According to KCCI, CPEC will support Pakistan’s economy through a series of developments in energy and transportation sectors. In fact, if sensibly utilized, CPEC provides Pakistan with an exceptional opportunity to become a developed nation.
Source: Yarns and fibres
The Spring edition of PH Value China International Knitting Fair, sponsored by China National Textile and Apparel Council (CNTAC ) and organized jointly by the Sub-council of Textile Industry, CCPIT (CCPIT TEX ) and the China Knitting Industrial Association (CKIA ) will take place this March in Shanghai. According to organizers, PH Value is committed to the knitting clothing and accessories, showing the latest developments in product and technology, coupled with fashion highlights in trend forecast. The show created to directly support the growth of the Chinese knitting industry is a unique platform for the exhibitors to meet potential customers, explore new market opportunities, and learn the next season’s trends. The organizers endeavor to make it a bridge for both exhibitors and buyers to develop win-win cooperation and support the growth of Chinese knitting industry. PH Value is also seen as a service platform for the industry, inviting agents, retailers, franchisers, wholesalers, department stores, chain supermarkets, trade companies, as well as e-buyers to network with the attending brands. In addition, the exhibitors will share more than 100,000 professional visitors with the other four international shows taking place simultaneously. These include Intertextile Apparel Fabrics, CHIC, Intertextile Home Textiles and Yarn Expo. China International Knitting Fair Spring edition of PH value will be held from 15-17 March at at the National Exhibition and Convention Center in Shanghai.
Source: Yarns and fibres
Greek enterprises from the textile industry facing very serious problem of high energy cost which is hitting their competitiveness to other global market. For which a meeting was held between the presidency of the Association of Greek Textile Industries (SEVK) and Environment & Energy Minister George Stathakis on Tuesday. The Association during the meeting, presented a fully-detailed memorandum with the industry’s positions and recommendations over a series of measures needed to rescue textile industries and to become a growth tool for the economy once again. The Association repeatedly underlining the very serious issue of high energy cost that burdens productive activity and undermines development of the sector, presented a series of proposals, such as harmonizing high-voltage and low-voltage charges, adopting new directives on state support in energy and environment, a strict timetable of actions to adjust the domestic electricity market to requirements of an EU Target Model and rescheduling of the existing debt of the industry. Lack of strategic planning by governments to support Greek production, combined with a wave of imports of textile products from countries with cheap labour and energy cost, hit the sector, closing down large traditional factories and raising unemployment in the country. The Association said that Industrial activity, including the textile industry, is down 70-80 percent since 1980.
Source: Yarns and fibres
Zimbabwe needs to revive manufacturing output and exports to stave off an economic collapse. The loss of export earnings has caused Zimbabwe’s gross domestic product to shrink by almost a third. Sweden’s new ambassador to Zimbabwe, Sofia Calltorp, said that she would immediately start working to restart stalled investment here and resume exports from the southern African country that plummeted after the controversial land grab programme. Welcoming pledges from President Robert Mugabe for improved cooperation after presenting her credentials at the State House on February 9, Calltorp — who has great experience from both the political arena as well as from the humanitarian field — said she also hoped for a “new phase of cooperation”, and that Zimbabwe’s exports of clothing and textiles to Sweden, currently averaging a meagre $15 000 per annum, could be raised. Several big Swedish companies are already present in Zimbabwe and they will continue to encourage Swedish investors to engage with the Zimbabwean market. They will together with Open Trade Gate Sweden (OTGS) similarly continue to assist Zimbabwean producers and manufacturers that are keen to export to Sweden or to partner up with Swedish companies. OTGS provides requisite market intelligence to Zimbabwean companies, particularly those with the potential as well as the capacity to export to Sweden and the European Union (EU). ZimTrade, in collaboration OTGS and the Embassy of Sweden in Zimbabwe, will host a seminar on ‘How to Export to Sweden’ at the Holiday Inn in Bulawayo where participants from the clothing, textiles as well as leather sector are expected to attend. Sweden’s commitment to Zimbabwe was also reflected in its development cooperation with Zimbabwe. Each year Sweden provides $20-25 million in development assistance to the country via the United Nations (UN) and civil society.
Source: Yarns and fibres
LONDON--(BUSINESS WIRE)-- The textile and apparel industries in Central American countries are becoming increasingly competitive in the global market. Due to their geographic proximity neighbouring the US – the world’s largest textile and apparel market, trading with the US has become a huge impact on the development of textile industries in this region. However, not everything is so rosy for the other North American neighbour, Canada, whose textile and apparel market has been growing slowly. Details about the textile and apparel industries in Canada, Mexico and Honduras are some of this week’s featured stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to connect with over seven million companies around the globe. Canada textile and apparel market declines, while technical textile production rises Canada’s textile and apparel industry has declined over the last decade, due to the decrease of domestic demand and the shift to manufacturing technical textiles, while imports of clothing, textile and footwear reached an all-time high in 2016, reaching CAD 2.1 billion, reported by Apparel Textile Sourcing Canada (ATSC). Despite the slowdown in Canada’s textile and apparel industry, the country still holds its position as one of the leading technical textile producers in the world, and remains as the second largest (behind Mexico) trading partner for US exports of textiles and apparel. Mexico’s textile and apparel industry still strong while uncertainty remains Mexico’s textile and apparel industry accounts for 6% of the country’s total GDP and 20% of all manufacturing employment. The country’s textile and apparel export value has surpassed USD 7 billion per year since 2013, growing about 2.4% annually. Focusing on technology and innovation is one of the strategies for Mexican textile and apparel manufacturers to survive the competition from other developing nations. The competitive labour costs and geographic proximity to the US have made Mexico one of the largest textile and apparel trading partners of the US. However, with Donald Trump’s policy to impose a higher duty on exports from Mexico, the future of Mexico’s textile and apparel industry may face some uncertainty. Honduras sets to double its textile exports. Honduras’ exports of textiles and clothing. The country’s location in the centre of the Americas gives Honduras’ textile industry a competitive advantage, while with the US withdrawing from the Trans-Pacific totalled about USD 4.1 billion in 2016 and is expected to grow by 10% in 2017, reaching a total USD 4.5 billion. The country has recently launched ‘Honduras 2020’, which is a USD 3.4 billion project for boosting the country’s textile and apparel industry. The project aims to double Honduras’ apparel exports by the year of 2020. Partnership (TPP), Honduras could benefit from less competition with Asian textile suppliers when exporting textile and apparel products to the US. BizVibe is home to 50,000+ apparel and textile companies across 200+ countries, covering all sectors. The BizVibe platform allows you to discover the highest quality leads and make meaningful connections in real time. Claim your company profile for free and let the business come to you. About BizVibe BizVibe is home to over seven million company profiles across 700+ industries. The single minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.
Source: Yahoo Finance
The 11th edition of the Dhaka International Yarn & Fabric Show 2017 - Winter Edition (Winter DIFS 2017) and Dhaka International Denim Show 2017 twin fairs are currently going on in Bangladesh. The four-day exhibition aims to promote communication and business cooperation between textile and apparel companies of China, Bangladesh and other countries. Organised by Conference & Exhibition Management Services Ltd (CEMS) and China Council for the Promotion of International Trade (CCPIT-TEX), the exhibition is meant for the RMG sector of Bangladesh. The Winter DIFS 2017 is a one-stop biggest marketplace of Bangladesh for textile business as well as presenting the latest fabrics and trends. Over 300 exhibitors from around the world are presenting their up-to-date fabrics, which are ready-to-use for garments, accessories, industrial use and various applications, according to the organisers. The Winter DIFS 2017 is fully equipped with all ranges of textile products enhanced with the latest technology. It is setting a new definition of smart fabrics in order to satisfy the growing demand of the buyers. CEMS Global has launched its own denim exhibition for the first time to meet the needs of a demanding and versatile industry. The denim show is a great avenue for drawing huge visitors from the ever expanding denim industry of Bangladesh. The Winter DIFS 2017 is a part of a series of exhibitions being organised by CEMS-Global in Bangladesh, Brazil, India, Indonesia, Singapore and Sri Lanka. (KD)
Source: Fibre2Fashion
Garment workers shout slogans as they attend a protest rally with red flags demanding the release of 25 of their leaders and reopen the closed factories organised by the National Garment Workers Federation (NGWF) in front of the National Press Club in Dhaka, Bangladesh, 10 February 2017. Photo: Abir Abdullah/EPA Bangladeshi garment workers are living in constant fear of arrest as police hunt those involved in strikes over wages that have disrupted the global textile hub, union leaders said Thursday. Tens of thousands of workers in the industrial town of Ashulia staged mass protests in December demanding a three-fold hike in pay, which can dip as low as $68 a month. The strikes were quashed and some arrests made, and garment manufacturers sacked some 1600 workers. But unions say workers are living in a climate of fear amid a harsh crackdown in Ashulia, where garment factories churn out clothes for some of the world's top-selling brands. "Most union leaders don't live at home because of persistent fear of being arrested," Babul Akhter, who heads a garment workers' federation, told AFP. "Police have shut down union offices. They are even harassing workers who were sacked and went back to their villages." A police chief with the industrial unit in Ashulia refused to comment on the allegations. Human Rights Watch said Wednesday the arbitrary arrest of workers had increased in recent days, saying union representatives were facing "unfair or apparently fabricated criminal cases". Union activist Shamima Nasrin said plainclothes police had raided her home three times since the protests, forcing her to "roam around like a fugitive". In January brands such as H&M, GAP and Primark urged Prime Minister Sheikh Hasina to consider worker demands, but government officials have ruled out any wage hike before 2019. Bangladesh's $30 billion garment industry accounts for 80 percent of its annual exports, but it has a woeful history of poor pay and conditions for its four million workers. The Bangladesh Garment Manufacturers and Exporters Association, which represents the country's 4,500 clothing factories, has labelled the strikes illegal, and warned salary rises would drive retailers in Europe and the US to competitor markets like Myanmar. Protests over poor wages, benefits and working conditions are frequent here, but gained intensity after the collapse of the Rana Plaza factory complex in April 2013, which killed 1,138 people.
Source: Mizzima News
The British fashion industry kicked off its seasonal showcase today urging the government not to damage a thriving sector by cutting immigration and trade ties with the EU after Brexit. "Fashion week is a really great time to understand the power and influence of our industry, as well as our creativity," said Caroline Rush, chief executive of the British Fashion Council (BFC). "We hope that you'll listen as we talk to you about visas, about talent, about tariffs, about frictionless borders, and around IP (intellectual property). "Because this is incredibly important to sustain this incredible industry, that contributes USD 34.8 billion to the British economy and provides 880,000 jobs." Prime Minister Theresa May is due to start negotiations on leaving the European Union within weeks, and has already signalled her intention to impose controls on EU migrants coming to work in Britain. She has said this would likely come at the cost of leaving Europe's single market -- a major concern for the fashion industry, as the bloc accounts for about 70 per cent of British textiles and apparel exports. Over the next five days, London Fashion Week will showcase collections by more than 80 designers and brands, from Versace's Versus to Burberry, JW Anderson, Christopher Kane, Roksanda, and Mulberry. But amid the glamour and the creativity, there is unease about what the future holds. "The overarching feeling at the moment is uncertainty," said Adam Mansell, chief executive of the UK Fashion and Textile Association. Access to the EU's single market is a key issue for the industry, but there are other concerns, such as the skilled labour used in British manufacturing, as well as trade ties with the rest of the world. Mansell noted that British fashion is heavily dependent on imports, particularly large volumes of clothes made in Bangladesh, Pakistan, Myanmar and Turkey -- all currently tariff-free through EU-negotiated trade deals which must now be replaced. While there has been a resurgence in UK manufacturing over the past couple of years, with many high-end brands benefiting from the allure of British heritage, they are often staffed by skilled workers from the EU. "A lot of the product that you'll see on the catwalk in the next few days is actually made in London. And I know several factories in London where the workforce is more than 70 per cent EU," Mansell told AFP. With so many Europeans living and working in British fashion, their status after Brexit has been a priority for many brands and designers, and industry bodies have petitioned ministers to guarantee their right to stay. (This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Source: Business Standard
The Government of Nigeria has announced that they will move ahead with their plans to revitalize the country’s economy, allocating Nigerian Naira 51 billion in this year’s federal budget to the development and resuscitation of the struggling textile and apparel industry. This comes just a few months after a wage increase for textile workers in Nigeria, showing some promise for the future growth and recovery of this previously flourishing industry. Though the textile industry in Nigeria was once one of the largest sources of employment in the country, it has since has been victim to smuggling, counterfeiting, and unreliable sources of electricity and natural resources. These factors, combined with the hardest-hitting recession Nigeria’s ongoing economic recession (the hardest-hitting one the country has experienced in over 25 years), have made the industry’s recovery extremely difficult. Today, the industry employs no more than 30,000 workers, but government efforts and intervention have the potential to create more jobs and lead the industry back to success. The rocky road to recovery Previous attempts at revitalizing the textile industry in Nigeria have not been successful at returning it to its former glory. Businesses in Nigeria face extremely high interest rates on loans from local banks, causing them to struggle to afford to pay their workers a fair wage or invest in advanced machinery that would increase profitability; additionally, smuggling and the widespread availability of cheap counterfeits have been holding the industry back. More consumers in Nigeria are opting for inexpensive textiles and counterfeit products made in China and other competitor countries over Nigerian clothing and textiles. The high price of cotton has also been an obstacle to successful industry revitalization. Cotton production has been on the decline in Nigeria in recent years, forcing clothing and textile manufacturers to import cotton into Nigeria from other countries. Only 278,313 metric tons of cotton was produced in Nigeria in 2016, according to Naij, and this number is expected to decrease further over 2017 to 272,468 if current trends continue. Having to purchase cotton at a higher cost than they would be able to buy it for domestically drastically decreases the profits of manufacturers. What will this money accomplish? It’s not expected that the N 51 billion will solve all of the industry’s problems, but it will bring some much-needed relief to the textile industry and set the ground for continued efforts at revitalization. This allocation will create textile jobs and will promote the production and purchase of locally-made textiles and Nigerian clothing, giving competition to foreign companies and smugglers. The government is reportedly putting emphasis on job creation, poverty reduction, and trying to establish fair wages across the industry. This allocation will also be used to invest in infrastructure, which is expected to improve overall access to and stability of electricity, and will work to improve cotton quality and increase cotton production. This will allow manufacturers to buy and source cotton domestically rather than pay high prices for imported cotton from other countries. Textile manufacturers will also have a greater ability to invest in the latest production technologies and increase their efficiency and productivity, making them more able to compete with manufacturers in countries like China and India.
SOURCE: BusinessNews Nigeria
Several large Chinese companies have decided to invest in Ethiopia’s textile and apparel industry this year, half of which are in the textile and garment industry. The Ethiopian Investment Commission (EIC) has increased its efforts to attract foreign direct investment (FDI) to the country to compensate for a slight decrease in investments during the first six months of the fiscal year. The EIC is currently targeting large companies that can create jobs quickly, which has attracted organizations like Jiangsu Sunshine Group. That company is planning to invest nearly USD 1 billion in Ethiopia. Ethiopia is becoming popular with textile and garment manufacturers Despite the decline in FDI, which was USD 1.2 billion in the first half of this fiscal year, down from USD 1.5 billion the same time last year, Ethiopia is still one of the fastest-growing countries in Africa. The International Monetary Fund predicts that the country’s economy will grow by 7.5% this year, driven by its low wages, infrastructure developments, and government support for investors. The EIC’s FDI target for the full fiscal year is USD 3.5 billion. Over 100 foreign investors have expressed interest in Ethiopia over the past few months, with 71 of them being from China. Wages in China have doubled over the past 6 years, and are currently 2-5 times higher than those in India and other Southeast Asian countries. In 2015, the country’s textile exports fell for the first time since 2009. With factors such as these prompting organizations to begin moving their manufacturing operations to other countries, Ethiopia is becoming an attractive destination, especially considering that its new initiatives are so favorable to textile companies. Indian investors have also shown a strong interest in the country. Unrest prompts caution from investors, but not withdrawal Ethiopia has faced unrest in the states of Oromia and Amhara over the past year, resulting in damage to several businesses, including some owned by foreign investors. Despite this, none of these investors have chosen to withdraw from the country, though they may be more cautious in their actions for the time being. To compensate for the damages, the Ethiopian government has so far paid out USD 4.4 million to foreign and domestic companies affected by the unrest, and plans to pay more in the future. It is also offering tax relief to affected companies. Despite the difficulties presented by protests in the country and slightly lower investments than the previous year, Ethiopia’s efforts to attract new business are looking effective. With interest from 124 foreign investors so far, the country has considerable opportunity for growth, and the textile and garment industries will be substantial contributors.
SOURCE: New Business Ethiopia
Over the past few years, the textile and apparel industry in Lesotho has transformed from being a marginal manufacturing sector to one of the most popular sourcing hubs for the global market. Today, the textile and apparel production in Lesotho has become a globally-integrated sector that assembles textile and apparel products for some of the most famous international brands, and exports to some of the biggest apparel markets in the world. This significant development has been mainly driven by a preferential trade deal with the US – The African Growth and Opportunity Act (AGOA). Established in the early 1980s, Lesotho’s textile and apparel industry had its first leap after investment came from South Africa and Taiwan in the late 1980s. But since the global economic crisis in late 2000s caused textile exports to dwindle, huge amount of textile workers lost their jobs. Then thanks to the African Growth and Opportunities Act (AGOA), a tariff-preference programme launched by the U.S. government in 2004 to support business in Africa, which helped Lesotho’s textile and apparel industry back on its feet, now Lesotho is one of Africa’s largest textile and apparel manufacturers, with most of its garment products exporting to the United States. The Africa Growth and Opportunity Act (AGOA) allows over 6,400 products from eligible sub-Saharan African countries to ship to the U.S. duty-free. Lesotho has certainly taken the most advantage of the AGOA to become the largest sub-Saharan African exporter of apparel products to the US. According to Lesotho’s National AGOA Strategy, Lesotho’s annual textile and apparel exports to the US increased from about $129 million in 2001 to $330 million in 2015. Over 80% of Lesotho-made textile and apparel production exports to the US every year, and many US brands, such as Gap, Levi Strauss, Foot Locker, Timberland and Wal-Mart, are sourcing or manufacturing from Lesotho now. Meanwhile, the Lesotho government is also taking several actions to boost its textile and apparel industry, including improving the business environment, promoting investment and tax concessions. According to the report from Lesotho Textile Exporters Association, the Lesotho government has reduced the corporate manufacturing tax rate from 15% to 0% for companies that export product outside of the Southern African Customs Union (SACU) and to 10% for those that sell products within SACU. Currently, Lesotho’s textile and apparel industry employs more than 44,000 workers, mainly women, which makes the sector the largest employment source in the country. Many of Lesotho’s textile and apparel companies are subsidiaries of large international manufacturing corporations with manufacturing operations across the globe. Apart from the US as the largest buyer of Lesotho’s textile and apparel products, South Africa is the second biggest export destinations for Lesotho’s apparel, and the third is Canada, followed by the EU in the fourth. Nowadays, Lesotho’s textile and apparel products are also favoured by Australia, New Zealand and other African markets. Preferential trade access to the US has been the most important driver and incentive for foreign direct investment for Lesotho’s textile and apparel industry, but the challenges and uncertainty still remain in the sector. The Lack of skilled labour, technology, infrastructure, and advanced management are so far some of the biggest limitations for the sector’s growth.
Source: Lesotho Times
