Photo: Shutterstock After a strong start this festive season, textile and apparel manufacturers and retailers suffered a sharp contraction in demand due to the liquidity crisis following demonetisation of high value currency notes in November 2016. If the latest study by Edelweiss Securities is an indication, India's leading pure fashion and lifestyle company, Aditya Birla Fashion and Retail (ABFRL), has lost Rs 100 crore in sales across all its textile business verticals due to demonetisation. The producer of India's most admired apparel brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and Pantaloons has posted 4.8 per cent growth in revenue (y-o-y) and 8.8 per cent dip in EBIDTA. "ABFRL saw a strong start to the festive season till first week of November 2017, after which the growth trajectory was largely impacted by demonetisation. The wholesale channel has largely reverted to normal in Q4FY17 and up-stocking should start in Q1FY18, resulting in better growth. The company has reduced working capital by Rs 50 crore compared to FY17 start, and has increased inventory turns.Store rationalisation is largely complete. Anchored by revival of Madura and Pantaloons, we are confident of a strong growth trajectory coming back starting Q1FY18," said Abneesh Roy, analyst with the situation in branded fabric and fashion design leader,Edelweiss Securities. Raymond Ltd was similar. The company said in an investor presentation available on the Bombay Stock Exchange website that its branded textile segment declined during the October-December 2016 quarter mainly due to lower sales volume following demand contraction. Raymond's wholesale and MBO (management by objectives) channels were affected most due to the cash crunch. Raymond's branded apparel segment, however, grew in single digits following a recovery in retail apparel sales. The company also opted for cost optimisation initiatives, apart from renegotiating with vendors for credit period extension. Sameep Kasbekar, an analyst with Emkay Global Financial Services Ltd, said the 18 per cent decline in the revenue and 33 per cent fall in net profit of Monte Carlo Fashion's for October-December 2016 quarter were "below estimates". "While inventory build-up and demonetisation impacted the quarter, there are indications of retail channel inventory declining by 10-15 per cent following liquidation in Q3FY17. This bodes well for Monte Carlo. Restocking of inventory in the retail / wholesale channels, increased penetration and product diversification will drive growth going forward," said Kasbekar. Following two consecutive years of weak winters, there was substantial build-up of inventory in the wholesale channel. Accumulation of inventory coupled with demonetisation impacted the MBO channel resulting in a decline of 23 per cent y-o-y to Rs 160 crore. Monte Carlo Fashions expects to report a y-o-y decline in revenues for FY17, but remains focused on growing its cotton segment by penetrating the west, south and central regions of India. Demonetisation blues did not spare even synthetic textiles manufacturers. Indo Rama Synthetics, India's largest dedicated polyester manufacturer, posted an over 400 per cent increase in its losses during the October-December 2016 quarter to Rs 37.95 crore from a mere Rs 7.75 crore in the corresponding quarter last year. Its revenue, however, reported a marginal decline to Rs 623.92 crore during the October-December 2016 quarter from Rs 663.25 crore in the same quarter last year. "The synthetic textiles industry witnessed a sharp increase in oil prices in the last three months and consequent increase in raw material prices such as PTA and MEG. But because of demonetisation impact, the increase in the price of raw material could not be passed on to customers. As of now, with some improvement in financial markets and also increase in cotton prices the cost is being passed on. Also there was sizeable drop in volume terms immediately after demonetisation, leading to negative financial impact which is now slowly getting back to normal. There has been dumping of polyester fibre from China & other countries for more than one year which has been putting pressure on prices and impacted the margin," said O P Lohia, Chairman & Managing Director, Indo Rama Synthetics, Textiles and apparel manufacturers and retailers eagerly await implementation of the Goods and Services Tax (GST) for uniform pricing of goods across the country.
Source: Business Standard
Jharkhand has immense potential to grow in the textile sectors, which is likely to be the second largest employer in the state. The tassar silk industry of the state is progressing fast and employs close to 1.8 lakh farmers and about 30,000 weavers. The state will also receive the Centre's help for further development of its textile and silk industry. The textile, apparel and footwear sectors of Jharkhand have the potential to become the second largest employers after agriculture, according to investors participating in the Global Investors' Summit held in Ranchi. Union textiles minister Smriti Irani called Jharkhand the tassar capital of India, which has a market in multiple countries like US, UK, Australia, Germany and Switzerland. She promised that the Centre will help develop the silk and textile industry of the country. "The soul of Jharkhand lies in its handloom legacy," said Irani. She also launched the ‘Bunkar Samwardhan Sahayata Yojna’ to assist weavers and to offer 90 per cent subsidy to differently-abled persons. Chief Minister Raghubar Das spoke about the state's potential to grow in the textile and footwear sectors at the Summit and also called on the Centre to set up a footwear design development institute in the state. The tassar production of the state has increased from 143 metric tonnes in 2007-08 to 3,238 metric tonnes in 2016-17, said Dr Ajit Kumar Sinha, director, Central Tassar Research and Training Institute. Sinha added that byproduct from tassar production usually goes to waste, but it can be used for making various products. Sudhir Dhingra chairman and managing director of Orient Craft Limited said that the company will generate lakhs of jobs in the state. He added that Jharkhand has a great future in the garment and footwear sectors. His company is willing to invest Rs 3,000 crore and establish six skill development centres. (KD)
Source: Fibre2Fashion
NEW DELHI: The European Union today pressed India to extend by six months its bilateral investment pacts with several EU-member countries which are expiring soon, saying absence of the treaties could adversely impact trade ties and FTA talks. A high-level European Parliament delegation, here to gauge India's views about the Trump administration and discuss various key issues concerning India-EU ties, also expressed concern over situation in Jammu and Kashmir and called for improvement in ties between India and Pakistan. Chair of the EU delegation for relations with India Geoffrey Van Orden said EU wants New Delhi to renew the investment deals first to take forward the stalled FTA talks. "It will be helpful if trade and investment pacts can be extended for six months. The issue has become a problem for the FTA talks," he told reporters. India's existing trade and investment pacts with The Netherlands have come to an end in November while while similar pacts with several other EU countries will expire in the coming months. Orden said expiry of the pacts will make it difficult for the European countries to go for fresh investments in India, adding the EU want India to first give the extension to the pacts and then move ahead with the FTA which is known as EU-India Broad-based Trade and Investment Agreement (BTIA). On Kashmir, he said EU is always sensitive about issues relating to human rights violations, adding certain forces do not want India-Pakistan relations to improve. He said there ware "serious problem" of Pakistan containing terrorists and that Prime Minister Narendra Modi had showed his resolve to improve ties with Islamabad. Orden said the aim of the delegation is to understand India's views on the Trump administration, discuss issues relating to Pakistan and matters concerning India-EU ties. The delegation is meeting Finance Minister Arun Jaitley, Commerce Minister Nirmala Sitharaman and Minister of State for External Affairs V K Singh during which the issues are likely to be flagged. The BTIA talks have been stalled since May, 2013, when both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector. Launched in June 2007, negotiations for the proposed agreement have witnessed many hurdles as both the sides have major differences on crucial issues. In the EU-India Summit in Brussels, the two sides had failed to make any announcement on resumption of the negotiations as many bottlenecks still remain. The two sides are yet to iron out issues related to tariff and movement of professionals but the EU has shown an inclination to restart talks. Besides demanding significant duty cuts in automobiles, the EU wants tax reduction in wines, spirits and dairy products, and a strong intellectual property regime. On the other hand, India is asking for granting 'data secure nation' status to it by the EU. The country is among nations not considered data secure by the EU. The matter is crucial as it will have a bearing on Indian IT companies wanting market access.
Source: The Economic Times
Economic growth is likely to have slowed down to 6.5 per cent in the third quarter (Q3) of 2016-17, down from 7.2 per cent in the third quarter of 2015-16, as economic activity is likely to have been disrupted after demonetisation, says Icra. Gross domestic product (GDP) grew by 7.3 per cent in the second quarter of FY17. GDP estimates for the third quarter are due to be released on February 28 by the Central Statistics Office (CSO). Gross value added (GVA), which excludes product taxes and subsidies, is expected to slow down to 6.2 per cent in Q3FY17, down from 6.9 per cent in Q3FY16, says the rating agency. In its recent assessment, the Reserve Bank of India (RBI) had also lowered its estimate of GVA to 6.9 per cent for FY17, marginally lower than the CSO’s Advance Estimates, which had pegged GVA to growth at seven per cent. “Icra expects the note ban to selectively affect some of the sub-sectors of industry and services, dampening the expansion of the GVA at basic prices to 6.2 per cent in Q3FY17 from 6.9 per cent in Q3FY16,” says Aditi Nayar, principal economist at Icra. Industrial growth is expected to slow down to four per cent in Q3FY17, down from 8.6 per cent for Q3FY16, with GVA by the manufacturing sector forecasted to decline sharply to five per cent in Q3FY17, down from 11.5 per cent registered over the same period in the previous financial year. While the mining sector is expected to do better, largely on account of recent uptick in commodity prices, the cash-intensive construction sector is expected to be worst hit after November 8, says Icra. With household consumption likely to have been curtailed, the services sector growth is also expected to ease to eight per cent, down from 9.1 per cent. While bank deposits have surged, non-food credit has plunged to 5.3 per cent. Icra points out that “high growth of the government of India’s non-interest non-subsidy revenue expenditure and cargo handled at major ports, as well as the mild turnaround in service sector exports, would have supported the overall service sector expansion in Q3 FY2017.” The agricultural sector is likely to spring a surprise. “the robust kharif harvest is expected to contribute to a turnaround in the performance of agriculture, forestry and fishing to a growth of five per cent in Q3FY17 from the one per cent contraction in Q3FY16” says Nayar. But while output may show higher growth, the crash in prices of vegetables post note ban could have impacted farmer incomes and thus depressed rural demand. While analysts are eagerly awaiting the third quarter numbers to assess the extent of disruption in economic activity after demonetisation, Nayar sounds a note of caution. “Since the early estimates of quarterly GVA would rely heavily on available data from the formal sector, which is expected to have weathered the note ban better than the informal sector, the first estimates of Q3FY17 GVA growth may not fully capture the impact of the note ban. Subsequent estimates that draw from wider data sources, may well revise Q3 FY2017 growth downward,” she says.
Source: Business Standard
Before the Goods and Services Tax (GST) reform is rolled out, India should take cautious lessons from other nations which have also introduced similar legislation, industry leaders have warned. A report released on Monday by the Confederation of Indian Industry and tax consultancy major Deloitte, which incorporates the views of Chief Financial Officers (CFO) of major companies, said the experience of other nations like Malaysia, Canada resonated with challenges currently being faced by India. With the GST Council approving on Saturday a draft law that seeks to compensate states fully in case of revenue loss as a result of GST, the tax reform is widely expected to come into usage by July 1. The report also revealed that almost 57 per cent of all surveyed CFOs felt that GST will have the biggest potential impact on operations with wide repercussions for cash flow, tax accounting, supply chains, procurement as well as the technology framework. On this note, the report called for adequate preparation and advance knowledge of the tax laws and rules is crucial for the success of GST. "As an industry, we also need to do our planning correctly basis the legislation. Going forward, we may not need to have warehouses for commercial considerations and will keep them only when needed." Rajiv Batra, CFO, Cummins group of companies said. In the case of more financially integrated Malaysia, which had introduced a new GST in April, 2015, the report pointed out that more than one and half years were given to private businesses to prepare. However, the move was not seamless with significant business disruption. "The need for preparation may be even greater in India than Malaysia since the proposed tax is much complex than the Malaysian tax, with a dual GST regime and levy of GST on inter-state supplies of goods and services, including intra company stock transfers." the report said. On the other hand, a plethora of exemptions for various sectors as well as diverging rates for member states have served to overly complicate the similar VAT regime in the European Union, it added. Back in India, the GST council is expected to perform the strenuous task of fixing tax rates for different goods and services by fitting them into the four approved slabs of 5, 12, 18 and 28 per cent. It will also have to approve three other laws, the central, state and integrated GST respectively when it meets on March 4-5, paving the way for the legislations to be brought to Parliament by around March 9. The situation is similar to Canada where the federal structure has mandated that different provinces have a wide range of differing rates. As a result, businesses have an equally wide range of tax problems on account of interpretation issues, the report said. With all provinces deciding to retain an older and separate retail tax structure, there is two levels of levies which are charged on the same.
Source: Business Standard
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$ 54.97 per barrel (bbl) on 20.02.2017. This was higher than the price of US$ 54.56 per bbl on previous publishing day of 17.02.2017. In rupee terms, the price of Indian Basket increased to Rs. 3681.51 per bbl on 20.02.2017 as compared to Rs. 3657.88 per bbl on 17.02.2017. Rupee closed stronger at Rs. 66.98 per US$ on 20.02.2017 as compared to Rs. 67.05 per US$ on 17.02.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 20, 2017 (Previous trading day i.e. 17.02.2017) |
Pricing Fortnight for 16.02.2017 (Jan 28, 2017 to Feb 13, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.97 (54.56) |
54.67 |
|
(Rs/bbl |
3681.51 (3657.88) |
3683.12 |
|
|
Exchange Rate |
(Rs/$) |
66.98 (67.05) |
67.37 |
Source: PIB
SURAT: About 60-odd textile dyeing and printing mills at Sachin GIDC industrialists making representation to GIDC officials Sachin GIDC Industry sources said the water supply was severed two months ago following repair work ofare on the verge of closure following acute shortage of water for the last two months. Forget about running the mills, thousands of workers employed in the mills are not even getting water to drink. A delegation of textile processors from Sachin GIDC on Monday submitted a memorandum to the notified area officer (NAO) of Sachin GIDC for resuming water supply at the earliest, or else the mills will have to down their shutters. Chalthan Sachin Textile Process Industries Welfare Association (STPIWA) president Vinodcanal which was undertaken by the irrigation department. Textile mills have been spending lakhs of rupees to purchase water from private tankers and are operating units at 50% capacity. Each of the textile mill has incurred losses to the tune of Rs30 lakh in the last two months taking total losses to the tune of over Rs20 crore, industry sources said. Agarwal he said a project for the supply of tertiary treated water has been submitted to thetold TOI, "For the last 10 days, the units are getting water supply for one hour in a day. The lake from where the water is supplied to the units is not getting enough water. Thus, we have asked the notified area authority to restore water supply or else the industry will have to shut down." Agarwal added, "The units require around 60 million litre per day (MLD) of water, against which around 50% is managed through private tankers. This is a huge additional cost for unit owners, which is getting unbearable now." Surat Municipal Corporation (SMC) and the unit owners are eagerly waiting for its final nod. "If we get 35 MLD tertiary treated water from the SMC, rest of the water requirement will be met from the notified area authority's pipeline network," Agarwal added.
Source: The Times of India
Rising arrival put pressure on cotton price on Monday. With this, downtrend in foreign markets and slow export demand also weighted the cotton price.Trader said, Gradually cotton arrival has improved in this month from 35,000 bales to 45,000 bales a day in Gujarat. Similarly, supply of cotton in India has gone up to 1.90 lakh bales. Gujarat Sankar-6 cotton decreased by Rs. 300 to Rs. 41,800-42,300 per candy of 356 kg. Kapas or raw cotton was declined by Rs. 15 toRs. 1,050-1,120 per 20 kg and gin delivery kapas was quoted Rs. 1,120-1,165 per 20 kg. The Cotton Association of India (CAI) has estimated 341 lakh bales of cotton production for the year 2016-17. The association has however increased cotton consumption for the ongoing crop year to 295 lakh bales against its previous estimate of 290 lakh bales.
Source: Business Line
Kolkata: Creating environment-friendly apparels with eco-friendly fibres was the main theme of the annual fashion show titled 'Tomorrow Makers' organised by the International Institute of Fashion Design (INIFD) recently in Kolkata. And, the student designers literally travelled the world to draw inspiration from prison attire to Raja Ravi Verma, from Australia to Africa to Indonesia, from social functions to traditional head gear, from musical instruments to the huqqa, and more. Designers Sharbari Datta and Agnimitra Paul, actor-director Arindam Sil, and actress Tanusree Chakraborty were the guest judges. Mainak Mitra, HOD (Fashion Department), INIFD said: "This year, the participants of Tomorrow Makers have focussed on creating environment friendly apparels with eco-friendly fibres". The entire event was divided into 30 sequences, each with a separate theme. Among them, 19 were created by students of the fashion department, Kolkata Campus, two from the textile department, and two by students from the Lucknow campus. Mahasweta Sinha, HOD Textile Department, INIFD said: "The textile department of the Lindsay Street campus focused on the different shades and shapes of nature." This year's fashion show focused on some unconventional themes reflected through the dresses presented, the backdrops, music and lighting. In a sequence called Trapped Inmates, the collection was inspired by the black and white striped uniform worn by prisoners. Another drew instantiation from legendary painter Raja Ravi Verma and his muse Sugandha. The Demasoni Cichlid from Lake Malawi, Africa chose to focus on sharp looks, bright colours and fish patterns. Models attired in billowing Balloon Dog dresses inspired by the works of US artist Jeff Koons walked the ramp for the Jeff Koons Balloon Dog'. Vibrant nature and her denizens were reflected in Enchanted Forest. Even ideas such as the Arabic Huqqa, the Australian wind instrument Didgeridoo of the Japanese Gangsta Manga were creatively incorporated into aspects of dress designing. Other sequences drew inspiration from ideas such as Tokhme Morgh - a Persian tradition of egg decoration during New Year; Indonesia's traditional Legong Dance, Mexican Calavera, Kokoshnik - a traditional Russian headdress, etc. A lot of attention was paid to use props and colours to bring out the innate qualities of the original themes. It was interesting to see how the INIFD designers took inspiration from Australia's aborigine art and used dot paintings of lizards, crocodile, fish, trees, etc. in their Batik work on cotton muslin and malmal. The winners in various categories included Director’s Choice for best stylization: Huqqa; Best Design Collection Fashion, Best Fabric Development, and Comercially Viable Design: Didgeridoo; Best Design Textile: Dot to Do; Best Ramp Appeal Fashion: Calavera; and Best Ramp Appeal Textile: Swarupa. Apart from this, Apsaras of Cambodia swept away numerous awards as runner ups in various categories. Patron Susan Mantosh, who also showcased five collections based on Kantha said, “The techniques of this hereditary craft is usually passed down from mother to daughter but tonight I decided to present n entire new twist to how Kantha is perceived. Young singer Charishma regaled the guests with her renditions. (Reporting by Sagar Ghosh)
Source: India Blooms News Service
Telangana government will come out with a comprehensive policy to help handloom and powerloom weavers and workers lead a comfortable life, said Chief minister K Chandrasekhar Rao. He said that adequate funds would be allocated to help the community particularly handloom workers in Siricilla and Pochampally . A policy will be framed for promoting Narayanpet, Gadwal and Pochampally sarees as they enjoy international reputation and demand. Powerlooms will be upgraded on par with the Rapier looms to improve quality and production. The government will ensure each worker earns a monthly income of Rs 15,000 and will put in place a thrift scheme to encourage savings. Uniforms for schoolchildren, blankets and cloth needed for government hostels will be procured from the weavers in the state. This step will ensure adequate work for the handloom and powerloom sectors in the state. Also subsidies will be given on yarn and chemicals. The CM announced that an apparel park will be set up in Siricilla and the Siricilla powerlooms will be integrated with the Warangal textile park. The government will plan a three-pronged strategy for the Padmashali community as there is a need to encourage such art. Each powerloom has been advised to produce a different type of cloth, design, size and texture. The silk and Ikkat sarees produced in Narayanpet, Gadwal and Pochampally have a good reputation. In the past people used to go to Kanchi for wedding sarees and now they are going to Pochampally and it is a matter of pride for them.
Source: Yarns and fibre
In a bid to protect the interest of thousands of weavers and artisans of the State, Chief Secretary Aditya Prasad Padhi has directed the Handlooms, Textiles and Handicrafts Secretary Chithra Arumugam to take up GI Registration of unique textile products of the State with the Textile Committee. The textile design products like Odisha Ikat and Sambalpuri Bandha saree, qualify for Geographical Indication (GI), for GI Registration. Experts in this sector feel that these products are associated to a particular geographical area and GI has been taken as one of the Intellectual Property Rights (IPRs). Experts in the State strongly feel that IPR protection could save the niche market and livelihood of the weavers and artisans of the State associated with the product. Accordingly, the State Government has decided to take up this initiative to protect the IPR of these unique products, said officials sources. Ministry of Textiles recently constituted the Textiles Committee to support the weavers, artisans of hand woven and handcrafted textile products for protection of IPR of the unique textiles. It is noteworthy that Odisha has been producing several unique textile products but they lack GI registration, said the sources. Trade Related Intellectual Property Rights (TRIPS) Agreements signed under the Framework of the World Trade Organisation (WTO) has included GI as one of the IPRs. India, being a signatory to the agreement has also enacted GI Act, 1999 and Rule 2003 for protection of GI designated products of the country.
Source: Yarns and fibre
Russia has once again taken the crown from Saudi Arabia as the world’s biggest oil producer. The two countries are global leaders in crude production by a wide margin, trading the top spot from time to time. Russia produced 10.49 million barrels per day (bpd) in December, down 29,000 barrels a day from November. Saudi Arabia’s output dropped to 10.46 million bpd from 10.72 million bpd, according to Monday's data from the Joint Organizations Data Initiative in Riyadh. This was the first time Russia became top producer since March 2016. Riyadh’s crude exports fell to eight million bpd from 8.26 million bpd in November, the biggest monthly slide since May 2003. The United States is in third place, producing 8.8 million bpd in December. At the same time, America is neck-and-neck with China as the world's largest crude importer, buying 7.88 million bpd of crude last year. The growth in US production mostly came from the Texas’ Permian Basin and Eagle Ford regions, which have better quality oil. However, local refineries can’t process it because they are geared to process poorer quality crude from Canada and Venezuela. The US producers export the higher quality oil and import what they need from abroad. The Organization of the Petroleum Exporting Countries (OPEC) and oil producers outside the cartel led by Russia have agreed to prop up prices by cutting production by almost 1.8 million barrels per day during the first half of the year to curb a global oversupply. On Monday, Brent crude was trading at $56.18 per barrel, while the US benchmark West Texas Intermediate rose to $53.69.
Source: Business Standard
The exports of apparel and textiles from the UK have increased by 7.05 per cent to £9.1 billion in 2016, compared to exports of £8.5 billion in 2015, figures released by the UK Fashion & Textile Association (UKFT) show. The European Union was the biggest market for UK's textiles and apparel, accounting for 74 per cent of all UK textile and apparel exports. UK's textile and apparel exports have grown over the last five years. During 2012-2016, apparel exports alone have risen by 41 per cent to £6.2 billion, up £1.8 billion, UKFT data revealed. This rise in exports is due to a number of effects including an increased interest in heritage UK manufacturing, the creativity of British fashion designers as well as the importance of the UK as a key apparel trading hub. UK apparel and textile exports to the EU rose from £4.9 million in 2012 to £6.7 billion in 2016, representing an increase of £1.8 billion or 36 per cent. Meanwhile, the UK trade deficit, which reflects the difference between imports and exports, increased to £15.4 billion in 2016, up from £15 billion in 2015. This figure represents an increase in the value of imports from £23.4 billion in 2015 to £24.5 billion in 2016. Export is a fundamental part of UKFT’s activities, utilising the largest amount of Department for International Trade TAP grants of any industrial sector. In the fashion and textiles industry, for every £1 the government invests in trade show support, almost £70 comes back to the UK in export revenue. This season UKFT has taken 650 British companies to international shows including Pitti Uomo, Berlin Fashion Week, Paris Fashion Week, New York Fashion Week and Premiere Vision. (RKS)
Source: Fibre2Fashion
As the US and Brazil need not to pay any duty on cotton exports to Bangladesh for its clothing industry, they also should offer duty-free access of Bangladeshi finished clothing products to their markets, said manufacturers. Bangladeshi RMG products currently do not have duty-free access to these markets, even though the two countries enjoy duty-free access in Bangladesh for their cotton exports. Moreover, the US suspended their Generalised System of Preferences (GSP) facilities for Bangladesh on June 27, 2013. In a letter sent to the US ambassador to Bangladesh on February 16, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Siddiqur Rahman asked to have duty-free access to the US for Bangladeshi RMG products made from the cotton that is exported from the US. A similar proposal was sent to the Brazilian government via the Ministry of Foreign Affairs on Sunday. “Bangladesh has long been importing cotton from the US to make apparel for export… We firmly believe that cotton import from the US will grow significantly if the apparel products made of the US cotton receive favorable treatment in terms of tariff in accessing the US market,” the BGMEA president said in the letter. Bangladesh is the second largest cotton importer in the world; the country imported 6.1 million bales of cotton last year. There are 430 textile mills in Bangladesh with 11.50 million spindle capacity. Siddiqur said if the US government extended duty-free market access for Bangladeshi RMG products made from cotton produced in the US, it would create a win-win situation for the bilateral trade between two countries. The US is the single largest export destination for Bangladeshi products, especially apparel. According to BGMEA data, in July-December of 2016-17 fiscal year, Bangladesh earned $2.56 billion, a 9.11% decline from the $2.81 billion earnings during the same period in 2015-16. However, in the 2015-16 fiscal year, export to the US saw a 6.36% growth, amounting to $5.62 billion, compared to the $5.28 billion earnings in 2014-15 fiscal year. Brazil has high potential for Bangladeshi apparel products, but the import duty is high, ranging from 30% to 35%, said the BGMEA letter sent to the Ministry of Foreign Affairs. Bangladesh needs to find a way to secure duty-free access to the Brazilian market and the Brazilian government should consider providing duty-free access for Bangladeshi apparel products made from the cotton that Bangladesh imports from Brazil, the letter said. This arrangement would prove profitable for both Bangladesh and Brazil in terms of trade, the BGMEA argued. In July-December of 2016-17 fiscal year, Bangladesh earned $41m from garment exports to Brazil compared to $75m in the same period a year earlier. In FY2015-16, total RMG exports to Brazil reached $120m.
Source: Dhaka Tribune
FAISALABAD: Federal Minister for Commerce Engineer Khurram Dastgir on Monday said the facility of GSP plus granted to Pakistan by European Union would remain intact by December 31, 2023, so Pakistani exporters should fully concentrate on enhancing their exports to the potential markets of EU countries. Addressing a function in Faisalabad Chamber of Commerce and Industry (FCCI), he termed Faisalabad as the engine for the progress and prosperity of Pakistan and said some elements were expressing undue apprehensions about the disruption of GSP Plus facility. He said mid-term review of GSP plus was also scheduled during next year but it did not mean that this facility was being withdrawn. He said, "There is a huge untapped potential to increase trade with eastern EU countries and hence we should fully exploit these available opportunities." The federal minister said the present government had privilege to recruit 13 commercial officers purely on merit basis who had been deputed in various potential countries and the business community should remain in touch with them to fully avail from their expertise. He said the exporters must remain in contact with them while travelling to these countries. He told that few months back he was in Brussels to attend a meeting regarding GSP Plus. During this visit he also chaired a two-day conference of commercial officers deputed in European Union and added that they also responded to the questions asked by representatives of various associations of Karachi on Skype. He said such meeting could also be arranged for FCCI. "Pakistan has inked Free Trade Agreements with China, Malaysia, Sri Lanka and Indonesia which are underutilized," he said and added that the business community should fully exploit these FTAs and he was ready to depute commercial officer from TDAP or from his ministry to guide them in this respect. Khurram Dastgir said the situation had improved in Pakistan as compared to 2013. "We are going to establish a banking system with Iran within next couple of weeks which will open new opportunities for the Pakistani businessmen." He said the federal government had already approved this proposal and work on it would be started as soon as it was signed by the concerned authorities. He said the Prime Minister had successfully made breakthrough in five major fields including restoration of peace, stability in the financial affairs of the government, stability in foreign reserves, switching over to historically lowest interest rate and resolving energy crisis. He hoped that 2017 would be the best year for the economy of Pakistan. He further said the prices of electricity and gas would start decreasing during this year while the construction of motorway up to Karachi would ensure safe and secure connectivity between all parts of the country. He said international flights had already started from the airports of Faisalabad, Multan and Sialkot. Similarly, the stability in the democratic system was yet another achievement of this government, he said and added, "Now we are in a position to request foreign countries that have issued travel advisories to withdraw it as such directives are not feasible in the prevailing circumstances." He asked the businessmen to submit their proposals specifically for the export oriented industry through which the surcharge of Rs. 3.4 could be eliminated for the exporters. Regarding Rs 180 billion textile package, he said the government was not restricted to this amount. "We are ready to pay them much more incentives up to Rs 360 billion provided exporters play their role in doubling their exports." He further clarified the subsidy would be for total export proceeds made up to June 30, 2017. He said in this connection after the approval of government the State Bank had issued a circular however he would try to adopt a system for the payment of subsidy on quarterly basis from next year. About the payment of refund cases Khurram Dastgir said the government had paid refund amounting to 50 billion. He would request the PM to pay yet another big traunch within next few months, he said and intended that all pending refund cases should be disposed of positively before the announcement of next year budget. Regarding duty on cotton yarn, he said he would review these issues in a scheduled meeting of Pakistan Textile Board. About Faisalabad Expo Center, he said that funds from EDF would be released as soon as the land was transferred to the construction company. Earlier, President Faisalabad Chamber of Commerce and Industry Engineer Muhammad Saeed Sheikh presented his address of welcome and underlined various issues faced by the business community of Faisalabad. A question answer session was also held in which Chaudhry Muhammad Nawaz, M Ismael, Dr. Khurram Tariq, Mian Imtiaz Ahmad and Mujtaba Hasan participated. Later, President FCCI presented FCCI shield to the Federal Minister while VP Engineer Ahmad Hasan offered vote of thanks.
Source: Business Recorder
Faisalabad : Minister for Commerce Engr. Khurram Dastgir said that efforts were being made to waive off sales tax and custom duty on import of coal. Addressing industrialists, exporters and tradersat Pakistan Textile Exporters Association (PTEA) office here on Monday, he said that China-Pakistan Economic Corridor (CPEC) project has 70% energy projects, adding that industrial estates and industrial zones will be set up only alongside CPEC when energy will be available. He said that CPEC would bring prosperity, economic stability, elimination of unemployment and poverty besides boosting country’s exports. He said that Peshawar-Karachi Motorwaywould be completed by the start of next year. He said that Prime Minister Muhammad Nawaz Sharif had announced textile package and it was up to business community to get benefits from this package and boost exports. He asked exporters to provide accurate figures of refund claims, adding that figures available with Federal Board of Revenue did not match with them. The minister said that he would request the prime minister and finance minister for early payment of refund claims only when he would receive accurate figures. He said that country’s economy had been strengthened and problems were being solved due to the right steps taken in the right direction by the incumbent government. “We should think about development of the nation as well as the country and not only about the refund claims,” he said adding that there was dire need for the right use of export development fund. The minister said that the government was taking measures for boosting textile exports.
Source: Pakistan Observer
Wool prices strengthen despite rise in Australian dollar due to which for the past week the overall market rose by US16c. Stronger Australian dollar weighed on the local wool market this week. In Euro terms the market was also much stronger with a rise of 21 Euro cents for the week. Australian producers saw a relatively gentle movement of only plus-3c with superfine Merino continuing to lead the way. Further with buyers continuing to target the better tested lots, the 18 micron and finer rose by as much as 30c. Medium Merino fleece wools were relatively abundant and this caused prices to ease slightly with buyers able to pick and choose their purchases. Crossbred wools moved into positive territory again as did the carding sector. AWEX’s northern market indicator closed up 3c on 1521c. The 17 micron indicator closed on 2089c, 18 micron 2008c, 19 micron 1789c, 20 micron 1541c, 21 micron 1436c, 22c micron 1376, 28 micron 685c, and 30 micron 543c. Carding wools have become the first segment of the wool market to reach the same level in US dollar terms as the last peak of 2011. Carding wools have just reached that peak, which means that customers overseas have not paid this much for locks and crutchings in the past decade. Whether this is a peak or just a point on the graph becomes an interesting topic of discussion. Certainly the seasonal demand for cardings is still increasing, and buyer appetites do not usually begin to wane until after Easter. However, given the current high price levels, some say extreme, there is increasing chatter about price resistance and substitution of alternative cheaper fibres taking place. On the other hand Cashmere prices are just beginning to jump upwards as buyers and processors return after the Chinese New Year and scramble to secure available supplies. So an increasing Cashmere price may actually drag the wool price with it, if the market deems wool to belong in the elite fibre category rather than among the commodity fibres like cotton and synthetic – although these fibres are also rising slowly. Despite the probable repositioning of Merino, not all wool, but just the best apparel fibre, a healthy expanding global economy is paramount in order to maintain the upward trend. According to a recent report by ANZ economists Tom Kenny and Giulia Lavinia Specchia a synchronised global upswing is underway. They point out that there has been a notable improvement occurring in emerging markets across Asia and also above trend momentum in all major advanced economies. Global industrial production is currently above trend, according to the report illustrated by recent readings of PMI readings for manufacturing and services hitting fresh multi-year highs in early 2017. While Chinese trade data for January – seen as a barometer of global trade given the sheer size of the Chinese economy – is also topping expectations. It all adds to the belief according to ANZ that the global economy is on the mend after a patchy performance in recent years. If indeed the above positive viewpoint does play out, it may help alleviate some of the fear building along the production pipeline concerning the current high price of wool. In the major wool markets of China and Europe processors are talking about the fact that fabric and garment prices are yet to catch up to the increases of raw material. While those who have been buying greasy or wooltop and selling it on to customers further along the chain are satisfied, and in most cases they have been able to extract a healthy margin, those at the end of the pipeline are less comfortable. In many cases the fabric or garment price was fixed late last year, or at least a portion of it, and there are some difficult discussions taking place about who wears the price increase. It will not be until the new season (July onwards) that a new round of price discussions takes place again for products to be sold in the autumn/winter 2018-19 season. It is expected that many customers will then look for ways to reduce the cost of their product, either by increasing the micron, or by adding cheaper fibres in blends. This may be the trigger to reduce wool prices, or it may mean that the consumer needs to adjust their price point for garments made from the best Merino fibre. A brighter picture for 28-30 micron wools is beginning to emerge. The demand needs to flow along the processing pipeline in order to consolidate the trend, and clear the stock, but with less greasy wool of this type available over coming months, there is a chance that a price recovery may be underway.
Source: YarnsandFibers
Manufacturer of water based dispersions and speciality polymers; Synthomer is investing €20 million in its dispersion plant located in Worms, Germany, by adding fully automated production lines for acrylic dispersions. The investment will add 30,000 tons to the existing capacity of the plant, which is Synthomer’s largest acrylic facility in Europe. The expansion which is expected to complete by the third quarter of 2018, will allow shorter supply lead times and meet highest production and quality standards. “This investment further strengthens our pan-European dispersion network across the United Kingdom, Germany, Czech Republic, France, Italy and Spain,” Synthomer said.
Source: Fibre2fashion
The 2017 edition of fashion trade fair, Première Vision Paris closed with a 2.3 per cent rise in visitors over the previous February 2016 edition and totalled 56,250. The show at which Spring 2018 collections were showcased, saw international visitors, who came from 124 countries, accounting for 73 per cent of all buyers visiting the trade show. Exhibitors at the show displayed ready-to-wear garments, leather goods, fashion jewellery, shoes, etc and they ranged from free-lance designers, international groups, small and mid-sized companies, luxury houses, medium and high-end fashion and accessories brands and major retail brands. According to the organisers, in a complex and changing global context, this fine performance reflects not only the attractiveness and strength of Première Vision Paris, but also the effectiveness of its creative positioning, a strategic vector of differentiation and growth.
Source: Fibre2fashion
The four-day mega expo on textile machinery Dhaka International Textile and Garment Machinery Exhibition (DTG) 2017 is set to kick off at Bangabandhu International Conference Center (BICC) in the city on Thursday. Bangladesh Textile Mills Association (BTMA) President Tapan Chowdhury addressing a press conference on the upcoming DTG -2017 in the city on Sunday said that the government is going to establish a LNG terminal in Kutubdia Island to supply imported gas to the industry people as the country fears of finishing its natural gas stock in near future. However, it would be very difficult to remain competitive in the global markets after using LNG in the manufacturing units as it would increase the production cost, said Tapan. They are yet to get any clarification about the possible LNG pricing and other related process although they have heard that per unit gas may cost Tk14, which would hit hard the spinning industry. Tapan, also a former advisor to a caretaker government said that despite political stability and comparatively low bank interest rates, the private sector investment growth is still not up to the expected level. The scarcity of land and insufficient gas and electricity connections are now being considered as the barriers to the private sector investment in the country. Currently, country’s textile industry has an investment of US$6 billion while RMG and textile sector contribute about 86% of total export and textile industry’s contribution to GDP is 13%. As the sector people are not getting the connection for the expansion of their existing business, it would hurt the apparel industry as the textile industry is the source of raw materials for the sector, he added. BTMA along with Yorkers Trade and Marketing Services, Chan Chao International will organise the upcoming DTG show where a total of 1,000 machinery manufacturers from 33 countries will be participating.
Source: Yarns and fibres
Two million dinars has been allocated to train about 2,000 women in the textile sector, by virtue of an agreement between the Ministry of Tourism and Handicraft, and the Ministry of Women, Family and Children, said Director-General of the Textile and Carpet Technical Centre Taoufik Mediouni. At the opening of a national conference organized by the sustainable development association in Sabkhet Séjoumi on the theme "Strengthening the foundations of development in the western region of Tunis governorate", Médiouni added that 30 agreements of principle for capital credits of the Tunisian solidarity bank (BTS) will be granted to several women to enable them to launch projects in the craft sector. He underlined that the ministry is preparing to develop a strategy over the 2016-2020 period based on four axes namely the development of skills, raw materials, research, innovation and the disposal of the traditional product. He added that under the national programme for the promotion of the handicrafts sector due to be launched in October 2017, several reforms will be announced in addition to a change to be introduced in the laws and regulations on the handicrafts sector for its revival. The official announced that a national conference on the promotion of the carpet sector would be held on 23 February.
Source: Yarns and fibres
