The government will announce a package for the powerloom sector on April 1, Textiles Minister Smriti Irani informed the Lok Sabha on Thursday. The policy will reportedly be announced by Prime Minister Narendra Modi in Surat, ahead of the Gujarat Assembly polls scheduled to be held later this year, according to sources. In reply to another supplementary, Irani said the Centre will facilitate Tangaliya weavers in Surendranagar, Gujarat, in purchase of looms, by providing them an assistance amounting to 90 per cent of the price of looms. On a question related to the weaver community, Irani said 30 per cent family members of weavers do not go to school and just one per cent complete graduation. She said the Development Commissioner for Handlooms under her Ministry had entered into two separate memoranda of understanding with IGNOU and the National Institute of Open Schooling on August 7, 2016 for providing education to handloom weavers and their children through open schooling and distance learning. Irani said the Indira Gandhi National Open University (IGNOU) has identified two academic programmes — Bachelor Preparatory Programme and Computer Literacy Programme. “So far, 6,175 students have been enrolled from the weavers community in these programmes,” she added.
Source: Business Line
The share price of textile companies jumped by up to 10 per cent on Thursday, on the expectation of a sharp recovery in textile and apparel export in the coming months, due to less shipment from China. The domestic market is also gradually overcoming the dull demand sentiment which had arisen out of demonestisation of high-value currency notes in November 2016. The share price of Trident jumped by 9.8 per cent to close on Thursday at Rs 87.90. Garden Silk and Banswara Syntex rose seven per cent and 5.6 per cent to Rs 33.65 and Rs 151.30, respectively. Garware Synthetics and Nahar Spinning rose by 4.9 and 2.6 per cent. Trade sources believe India's share in the global textile market would rise after China's decision to reduce energy and personnel-intensive industries, including textiles and apparel. With around 39 per cent market share, China leads in global textile export. India's share is five per cent. "While the domestic market suffered a temporary setback, with the entire trade at a standstill following demonetisation of high-value currency notes, it is gradually coming back on track. Steady business growth was witnessed in January and February, after subdued sales in November and December. With the wedding season on, we expect sales to remain up this season," said Rahul Mehta, president, Clothing Manufacturers' Association of India. Industry sources said even if one per cent of China's market is captured by Indian exporters, there would be a big boost to our overall shipment in the sector. Textile scrips rise on revival in sentiment A recent study by ratings agency ICRA said the global apparel trade remains under pressure, having contracted for a second year in 2016, owing to subdued demand in key importing countries. While the volume growth was marginally positive, primarily aided by a recovery in demand from Europe, realisations fell. Further, the latest trends point to a modest recovery so far in 2017. "Amidst the weak and volatile phase in global apparel trade, India's exports remain flat and unencouraging, growing by a tepid one per cent (in dollar terms) for a consecutive year in FY17. This, however, needs to be looked into in conjunction with the decline in global apparel trade in value terms during the period," said Jayanta Roy, senior vice-president at ICRA. The pace of growth for other Asian apparel exporters Bangladesh, Cambodia, and Vietnam had also moderated in the past two years, though they continue to grow at a relatively better pace than India's. Even so, the scrapping of the proposed Trans-Pacific Partnership has weakened prospects for Vietnam, which augurs well for India, as the risk of increased competition from Vietnam has abated to an extent, for now. Given the global trend, domestic market-focused apparel manufacturers are expected to do relatively better than exporters in FY17, too, though less so because of the demonetisation effect in demand. China was earlier known for low production costs and a stable currency. It experienced a record rise in production costs (21 per cent over 2013-15) and is trying to mitigate the volatility of its currency, the yuan. "China's competitiveness in cotton textiles is dropping rapidly, while India's competitiveness is steadily improving. This has offered an opportunity for Indian textiles on the market share of China in the developed world, especially the European Union and the United States, which cumulatively comprise around 60 per cent of the global export market," said Akhand Pratap Singh, an analyst with Axis Securities.
Source: Business Standard
NEW DELHI: Finance minister Arun Jaitley has said legislation related to goods and services tax (GST) will have to be passed in the ongoing budget session, pointing out that the Centre and the states would otherwise lose their right to collect indirect taxes after September 15. Replying to debate on the budget in Rajya Sabha on Thursday, Jaitley said four bills supporting the Constitution amendment law on GST enacted last year will be introduced in the Lok Sabha shortly. The government wants to roll out GST from July 1 this year and would need to get the relevant laws passed in the ongoing budget session to meet the deadline. The session ends on April 12. The Constitutional Amendment law for GST was notified on September 16, 2016 and it provides for one year to switch over to the new indirect tax regime. “After September 15 this year, the legal entitlement for collection of taxes will end. So, the alternative system has to come in place before September 15,” Jaitley said. The government lacks a majority in the Rajya Sabha and therefore will need cooperation from the opposition. The finance minister also said banks will be given more capital if needed, and claimed that the demonetisation was a big shock to the shadow economy and that formalisation of economy will increase going ahead. The upper house passed the budget later in the day. The union cabinet had cleared the GST laws earlier this week. The laws were cleared by the GST Council earlier in the month. Jaitley said of the nine bye-laws that need to be framed for GST, four have been approved and the remaining five would hopefully be approved by March 31. The cleared laws are Central Goods and Services Tax Bill 2017, Integrated Goods and Services Tax Bill 2017, Union Territory Goods and Services Tax Bill 2017, and Goods and Services Tax (Compensation to the States) Bill 2017. Jaitley said food items and many other essential items used by common man will remain zero rated under GST. He said petroleum products and alcohol will come under GST once states and GST Council arrive at a consensus on the rates to be imposed. These are part of GST "but till all the states, the GST Council agree, we won't start imposing tax on these," he said. Jaitley said a decision on including land in GST will be taken a year after the implementation of the new tax system. He said trucks will not have to queue at state borders once GST is there and an expert group has been set up to deliberate how tolls that impede free movement of goods and services can be removed.
ON DEMONETISATION
Jaitley said the government stands by its decision on demonetisation as “it was eminently required in the larger interests of the Indian economy” though given the large use of cash some problems are inevitable. He said cash accounts for 12.2% of the GDP, something that is not there in any country. Jaitley said “a shock was necessarily required to be given into the system” but dismissed criticism that it has caused large disruption to the economy. The finance minister said only 76 lakh people out of a population of 125 crore pay tax and out of that 61 lakhs are salaried people. He said the demonetisation has given a big shock to the shadow economy and with the focus on digitisation, the size of formal economy will increase going ahead.
Source: Economic Times
India’s proposed trade facilitation agreement (TFA) in services is headed for a tough negotiating process at the WTO, said Commerce and Industry Minister Nirmala Sitharaman. Lessons learnt from negotiations on the trade facilitation pact in goods would play a crucial role in the services’ pact’s success, she added. “We find that the countries that are driving the services industry and those with inputs from knowledge based spectrum are not willing to support a TFA in services. The lessons that have been learnt from coming to a consensus on TFA in goods through a dialogue process are very crucial,” Sitharaman said while addressing a workshop on TFA in services organised by the Commerce Ministry and the World Bank on Thursday. Interestingly, it is not just developed countries but many developing countries as well that might require coaxing to give their consent to a TFA in services. New Delhi recently gave a formal presentation on its proposal at the WTO which evoked a mixed response from members. Several African countries including South Africa, which have been traditionally on the same page with India on most issues at the WTO, reportedly expressed their reservations on the compliance cost of such a pact. While the EU broadly welcomed India’s proposal, it may not be willing to extend special and differential treatment to the country which is reserved for the developing world, which could be a problem, a government official told BusinessLine . Turkey, Argentina and Brazil came out in support of the proposal. The Minister hoped that the negotiating process would not get stretched. “I hope it will not take too long because the disillusion that multilateral institutions are delivering slowly cannot be afforded any longer in the political reality of the globe today,” Sitharaman said. India’s proposal on TFA in services was not specifically about new market access in services but was about removing hurdles, she added. Measures proposed by India include clarity in work permits and visas, simplification in rules of temporary stay, rationalisation of taxes, fees and charges and sorting out social security contribution issues for short-term workers, among others.
Source: Business Line
Rupee appreciation and firm cotton prices undermine home textile exporters’ profitability, but investors are attaching little importance to these emerging risks. A firm rupee, higher raw material prices (cotton) and subdued demand in the key export market (US) are doing little harm to home textile exporters’ stocks. Even as the rupee appreciated 3.8% against the US dollar in the last three months and cotton prices rose 20% from a year ago, shares of Indo Count Industries Ltd, Trident Ltd, Himatsingka Seide Ltd and Welspun India Ltd gained 20-40% in the last three months. The rupee appreciation and firm cotton prices undermine home textile exporters’ profitability. JM Financial Institutional Securities Ltd warns that cost pressures can impact India’s competitive advantage. “Higher Yuan depreciation vs. INR (Indian rupee) appreciation and reduced cotton price spread between India and China is impacting the Indian advantage,” adds JM Financial. To be sure, companies get to pass on the costs. But that happens with a three-six months’ lag. In the meantime, they will have to absorb the cost pressures. The recently notified duty drawback scheme is expected to provide some cushion, but as one analyst with a domestic broking firm points out, cost pressures outweigh the benefits from the scheme. Still, as can be seen from the gains in share prices, investors are attaching little importance to these emerging risks. Why? There are two reasons. One, many see the cost pressures as transitory and not risky yet. One analyst says the situation can turn adverse if the rupee continues to appreciate, say 5-6% from hereon. Pawan Jain, president (corporate affairs) at Trident, says that while cotton prices remained firm on tight supplies, as the new crop arrives he expects the cotton prices to turn range bound. The second and another important reason for the resilience in the home textile stocks is consolidation in the market. According to Jain, organized and large firms are gaining market share in the export market. So, even as the US market is not seeing notable growth, companies like Trident see much scope for market share gains, he adds. Also providing growth and earnings visibility is backward integration and capacity expansion. Himatsingka Seide expanded sheeting capacity (bed linen) and is aiming to commission spinning capacity, which helps in backward integration, next fiscal year. Similarly, Indo Count Industries is expanding bed linen capacity and is planning to build a new plant. Analysts expect the new capacities to help these firms improve profitability and market share. “(Indo Count) expects 10-12% volume growth in FY18. Also, Indo Count believes its volume growth has the potential to grow at a higher rate post FY18,” IDBI Capital Market Services Ltd said in a note. Of course, the new capacities will be of no help if the market situation deteriorates or the rupee appreciation and cotton price rise intensifies. But if the external environment does not turn for the worse, home textile makers can overcome the current cost pressures with scale benefits. The key is market share gains. “Ability to garner incremental market share in the context of the recently added capacity by Indian players will be the key monitorable, going forward,” adds JM Financial.
Source: Livemint
The clackety clack as the wooden reed pushes the just-woven length of cloth into place, the zoom of the pen-like shuttle in between the sheets of thread, the clang of the weaver’s feet against the wooden paddle... these sounds were an integral part of 1010 Colony, a village in Erode district, two decades ago. Today, most of the looms in the village, named after the 1010 families of weavers that inhabit it, have fallen silent. But, IT professional-turned-entrepreneur C Sivagurunathan is gradually rousing the looms from their sleep through his venture, Nurpu. “Today is my last day at work,” says Sivagurunathan. He has submitted his resignation at a Chennai-based IT firm and is waiting to shift to 1010 Colony. “All arrangements have been made.” The shift from a high-paying career to an enterprise that borders on the revolutionary is a major one, but Sivaguru handles it with a cool head. “My life has been defined by the people I met. Nammalvar ayya, Theodore Baskaran... Sivaraj of the Cuckoo Movement for Children... they have a lot to do with the way I think and work,” says Sivaguru. The 30-year-old hails from a family of weavers in Thudupathi in Erode. “I’ve grown up surrounded by the sights and sounds of the hand loom. Our family wove dhotis and towels. I remember seeing the paavu (hank) being wound and my grandfather prohibiting me from touching the naada. It would be sharp, for the loom to function well.” But as power looms took over the jobs of traditional handloom weavers, many took up jobs in the textile units that came up in the region. “They live like machines there,” says Sivaguru. “A weaver who worked in a factory told me how they were forced to leave their mobile phones outside when going in to work. Even if there was a death in the family, they would come to know of it only after the end of the shift,” he says. Sivaguru wants to change this “failed system”. His initiative is focussed on 1010 Colony, where he has convinced a handful of weavers to take orders from him. “Today, only 10 families in the village weave,” he says. Nurpu connects weavers and customers in the bigger cities — Sivaguru markets his products through social media and in places such as Chennai to create demand. Once that’s set, his profit will be divided amongst the weavers and himself. Nurpu was launched on October 2, 2016. But, Sivaguru spent months travelling around the villages in and around Erode to understand what he was getting into. “I visited Arachalur, Kangeyam, Chennimalai, Kallipatti... it was the same story everywhere. Those who once wove dhotis now employed their looms to weave doormats. And a majority of them were caught in the mechanical life of the spinning mills,” he says. The travel only cemented Sivaguru’s desire to creating an initiative that would help weavers. “I visited the Janapada Seva Trust’s weaving centre and school for weavers in Melkote in Karnataka,” says Sivaguru. “It was an eye-opener.” He saw how the Trust worked with 10 women weavers. “Their curriculum consists of the kind of thread, the tools to be used...” Sivaguru wants to follow their system of rewarding weavers. “I hope to establish a school for weavers as well,” he says. Right now, though, he is busy taking Nurpu’s products to cityfolk. “We weave khadi saris, dupattas, running fabric, dhotis and towels,” he says. Extracting an earthy-brown dupatta with a tie-and-dye pattern at the border, he explains how its colour came from the kadukkai seed. “For pink, we use pomegranate seeds and onions. We extract dyes from flowers and plants for various shades,” he explains. Sivaguru knows he will have a tough time convincing each of the families in 1010 Colony to get back to weaving. “But, if we give them an idea of what they can earn in Nurpu’s system, I’m sure we can revive what was lost.”
Why handwoven khadi?
According to Sivaguru, it is a fabric that breathes and is ideal for our weather. By wearing the fabric, we not only support an eco-friendly lifestyle, but several families of weavers.
Source: The Hindu
Demand for disposable nonwovens is forecast to grow at a healthy rate in the coming years according to Technical Textile Markets report from the UK-based information company Textiles Intelligence. Such growth will be due in part to greater demand among the growing upper and middle classes in Asia for consumer goods which offer higher performance and are of higher added value such as diapers and feminine hygiene products. At the same time the market for flushable wipes is growing strongly. Reflecting the potential for growth in these markets anant Bhadigar number of the leading nonwoven fabric producers are investing in new production lines in a bid to take advantage and increase sales. At the same time the new lines are providing producers with the latest technologies which are enabling them to produce thinner lighter weight fabrics that are cheaper to produce and satisfy demand for hygiene products which are less bulky. The world’s largest nonwovens company Berry Plastics has announced plans to install a new line in the USA in order to offer its customers softer materials. Also following the installation of a new carding line at its site in Terno d’Isola Italy the company has launched several new products for the hygiene market. Kimberly-Clark is adding new lines for making baby wipes and diaper pants in Singapore as it continues to look to emerging markets for growth in its consumer products businesses. it is adding new capacity for making products using its proprietary Coform technology in four countries namely Brazil Colombia Singapore and South Korea. Fitesa has made a number of recent investments in spun melt technology. Among these is a new line which came on stream in Peine Germany in early 2017 following the completion in 2016 of new lines in Cosmópolis Brazil and José Iturbide Mexico — which came hot on the heels of an investment in the previous year in Norrköping Sweden. Looking ahead the company is likely to invest in a new line in 2019 in Simpsonville South Carolina although it has not come up with a specific time frame. Also looking to the future Glatfleter plans to invest US$80 mn in a new line for making airlaid nonwovens in Fort Smith Arkansas USA. Production on the line is expected to start in late 2017 or early 2018. Meanwhile a number of new investments by Suominen are nearing completion. These include a large production line in Bethune South Carolina as well as upgrades in Spain and Brazil. Output from the line in the USA will be aimed mainly at the growing market for flushable wipes while the investment in Spain will be targeted at increasing production of nonwovens for industrial wipes and medical nonwovens markets. In Brazil Suominen is aiming to expand its product portfolio and strengthen its position in the South American market for wipes. In particular it intends to open up supplies of wipes to markets for medical and hygiene nonwovens.
Source: Tecoya Trend
India on Thursday notified the Third Protocol amending the existing India-Singapore double taxation avoidance agreement (DTAA). With this move, the provisions of the Third Protocol -- signed in December 2016 -- has become law in India. The India-Singapore DTAA at present provides for residence based taxation of capital gains of shares in a company. The Third Protocol amends this DTAA with effect from April 1,2017 to provide for source based taxation of capital gains arising on sale of shares in a company. It may be recalled that the Third Protocol had come into force on February 27 and Singapore had on March 1 made an announcement in this regard. The Central Board of Direct Taxes (CBDT) on Monday said in a statement that the change to source based taxation on capital gains arising on sale of shares in a company would curb revenue loss, prevent double non-taxation and streamline the flow of investments. Singapore was the largest foreign direct investor into India for the period April 2015 to March 2016, and one of the biggest portfolio investors in Indian markets. The Third Protocol preserves the existing tax exemption on capital gains for shares acquired before April 1,2017, while providing a transitional arrangement for shares acquired on or after April 1,2017. In order to provide certainty to investors, investments in shares made before April 1, 2017 have been grandfathered subject to fulfilment of limitation of benefits clause. The Third Protocol also inserts Article 9(2) in the DTAA which would facilitate "relieving of economic double taxation in transfer pricing cases". This is a taxpayer friendly measure and is in line with CBDT's commitments under the Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement procedure (MAP) access in transfer pricing cases, the CBDT has said.
Source: Business Line
The companies dealing in women apparel and kids wear food & hospitality industry utensils & kitchenware machine- tools handtools gifts and handicrafts health and beauty products consumer goods food and beverages FMCG agro products ayurveda and herbal products hardware will participate in the event. Over 30 Indian companies will take part in the India Sourcing Fair to be held in the Sri Lankan capital from on Friday, showcasing the latest range of textile fabrics, industrial fabrics, home textiles among others. The fair is being organised by the India Trade Promotion Organization from March 24 to 26, the Indian High Commission here said. The companies will be showcasing the latest range of textile fabrics, industrial fabrics, specialty fabrics, made- ups & home textiles like bed linen kitchen linen bath linen living & dining linen and technical textiles etc. at the Expo. On March 27 and 28, the IITExpo 2017 COLOMBO Exhibition cum Buyer Seller Meet would be organised, the High Commission added. It is being organized by the Powerloom Development & Export Promotion Council under Ministry of Textiles, India.
Source: PTI
Pressures such as the virtual freeze in corporate capital expenditure and slowing retail loan growth, particularly post the cash crunch arising from demonetisation and banks’ inability to lend given their still burgeoning bad loans, have led to a continuous weakening of overall growth of credit, or non-food credit, in recent months. In fact, this metric has come off from a 9.1 per cent year-on-year growth in the quarter ending March 2016 to four per cent in the latest December quarter. It fell further to 3.5 per cent in January. In this backdrop, most experts believe that credit growth could lag behind gross domestic product (GDP) growth in FY17 after growing at about 1.2 times GDP growth for the past many years. In fact, during good times, this metric has even grown at 2.5 to three times India’s GDP growth. For FY17, the Street expects credit growth to be anywhere between 4.2 per cent and 6.5 per cent. This stacks up lower than the Bloomberg consensus estimates of 6.8 per cent GDP growth this financial year. “While there has been a two-three per cent growth impact due to demonetisation levels, we believe a larger growth drag comes from corporate deleveraging, which is unlikely to abate soon,” says Adarsh Parasrampuria, a banking analyst at Nomura. "Slowing mortgages could be a medium-term risk, especially if government incentives are not able to revive housing demand," he adds. So far, the growth of mortgage loans has come down to 10 per cent in FY17, from 15.2 per cent in the same period for the previous financial year, estimate analysts. “Lower capex (capital expenditure) activity, UDAY repayments and risk aversion by banks towards large credit will keep overall credit growth muted,” believe analysts at domestic brokerage Prabhudas Lilladher. Importantly, as the fall in bond yields outpaced that in bank interest rates, this financial year witnessed a significant jump in corporate borrowings via bond issuances. According to Securities and Exchange Board of India (Sebi) data, bond issuances by private sector stood at Rs 4.79 lakh crore in the first nine months of FY17 and have already surpassed the full-year figure of Rs 4.58 lakh crore witnessed in FY16. However, even if one includes this in overall credit growth, the number is still at a multi-year low and could be, at best, in line with GDP growth. This is because bond markets are a relatively smaller part of overall credit and hence cannot make much difference to the overall number. The non-food credit stood at Rs 65.79 lakh crore till December 2016 — much higher than bond issuances (including public) of Rs 5.08 lakh crore. Borrowings from international markets via external commercial borrowings and other instruments too have not grown in the past four-five months and reflect the stagnant credit needs of corporates. Tirthankar Patnaik, India Strategist, Mizuho Bank, says, “Private companies’ capacity utilisation is still at about 70-72 per cent levels. Unless this metric goes up to 80-85 per cent, corporate capex will not pick up. If consumption growth remains at current levels, capacity utilisation will definitely start moving up. This process might take another one to one-and-a-half year.” Given that credit growth is the fuel for any economy, improvement in this metric is crucial. Weakening credit growth also indicates that there could be further downside risks to current GDP growth estimates.
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$ 49.64 per barrel (bbl) on 23.03.2017. This was higher than the price of US$ 49.44 per bbl on previous publishing day of 22.03.2017. In rupee terms, the price of Indian Basket increased to Rs. 3247.61 per bbl on 23.03.2017 as compared to Rs. 3237.55 per bbl on 22.03.2017. Rupee closed stronger at Rs. 65.42 per US$ on 23.03.2017 as compared to Rs. 65.49 per US$ on 22.03.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 23, 2017 (Previous trading day i.e. 22.03.2017) |
Pricing Fortnight for 16.03.2017 (Feb 25, 2017 to March 13, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.64 (49.44) |
53.70 |
|
(Rs/bbl |
3247.61 (3237.55) |
3583.94 |
|
|
Exchange Rate |
(Rs/$) |
65.42 (65.49) |
66.74 |
Source: PIB
NEW DELHI: At least 30 per cent family members of weavers do not go to school and just one per cent of them complete graduation, Textiles Minister Smriti Irani said today. Irani said in Lok Sabha that the Centre had recently conducted a study which found that at least 30 per cent family members of weavers in the country do not go to any school and only one per cent of them studied and completed graduation. She said during Question Hour that the government has taken a number of steps for the welfare of weavers as well as their family members. The Minister said the Development Commissioner for Handlooms under Ministry of Textiles has entered into two separate MoUs with the IGNOU and the National Institute of Open Schooling (NIOS) on August 7, 2016 for providing education to handloom weavers and their children through open schooling and distance learning. "IGNOU offers continuing education programmes and NIOS offers secondary and senior secondary level education. The MoUs further provide for exploring new courses especially relevant to the aspirations of handloom weavers for career progression," she said. The Minister said all the willing handloom weavers and their children who fulfill the eligibility conditions of these institutions can avail the learning opportunities. IGNOU has identified two academic programmes - Bachelor Prepatory Programme and Computer Literacy Programme. So far 6,175 students have been enrolled from weavers' community in these programmes. "Rs 10 lakh has been sanctioned to NIOS for conducting the survey in connection with the designing of courses exclusively for handloom weavers and their children," she said. Irani said to promote the weaving industry and sharpen the traditional skills of the weavers, 288 block level clusters under the National Handloom Development Programme and the Comprehensive Handloom Cluster Development Scheme have been taken up during 2015-16 and 2016-17. "Under Block Level Clusters various interventions such as skill upgradation, technology upgradation, setting up of Common Facility Centres, including Common Service Centres, engagement of textile designer-cum-marketing executive, construction of worksheds, appointment of Cluster Development Executives etc., are taken up," she said. Replying a supplementary, Irani said the central government will facilitate Tangaliya weavers in purchase of looms, by providing them an assistance amounting to 90 per cent of the price of looms.
Source: The New Indian Express
COIMBATORE When there is surplus cotton in the country, why are mills importing the fibre? Spinners: are quick to provide the answer: High trash content, rampant adulteration and abnormal moisture content. A cross-section of spinners BusinessLine spoke to said that mills in Tamil Nadu have stopped procuring cotton from Gujarat, in particular, and reduced the quantity purchased from Maharashtra due to quality issues. Said Indian Cotton Federation President J Thulasidharan: “They mix quality cotton such as Sankar 6 with Comber Noil and card waste. In Maharashtra, when demand surges, ginners sell cotton without removing trash. While 2 per cent trash is permissible, in recent months it has soared to 7 per cent. Many traders also liberally douse kapas with water, adding to the moisture content.” The industry fears this could adversely affect the India Cotton branding initiative. “It could be a threat to the entire textile value chain,” said Thulasidharan, who is also the Managing Director of Rajratna Mills (P) Ltd. The ICF has estimated cotton production for the 2016-17 season at 320-330 lakh bales and consumption at 295 lakh bales.
Surge in imports
According to Thulasidharan, contracted import volumes could easily touch a record 30 lakh bales. “Mills in Tamil Nadu invariably take the lead in importing the fibre, but this year, spinners in the North have also taken to imports as the realisation is 3-4 per cent better than the domestic fibre.” Thulasidharan urged urgent government intervention. “The Cotton Control Order should be brought back and ISI standards enforced. Such measures will not just conserve forex reserves, but also help every stakeholder in the textile value chain.” He rued that despite being the largest producer of cotton and the biggest exporter of yarn, India continues to depend on the US, West Africa and Australia for supply of quality fibre. “Cotton farming is sustainable with minimum support from the government. The present state of affairs though would push farmers away from cotton cultivation,” he said.
Source: Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1132.64 |
USD/Ton |
-0.64% |
3/23/2017 |
|
VSF |
2497.61 |
USD/Ton |
-0.29% |
3/23/2017 |
|
ASF |
2221.71 |
USD/Ton |
0% |
3/23/2017 |
|
Polyester POY |
1152.24 |
USD/Ton |
-0.19% |
3/23/2017 |
|
Nylon FDY |
3339.83 |
USD/Ton |
0% |
3/23/2017 |
|
40D Spandex |
5300.17 |
USD/Ton |
0% |
3/23/2017 |
|
Polyester DTY |
2395.97 |
USD/Ton |
0% |
3/23/2017 |
|
Nylon POY |
1408.54 |
USD/Ton |
0% |
3/23/2017 |
|
Acrylic Top 3D |
3659.29 |
USD/Ton |
0% |
3/23/2017 |
|
Polyester FDY |
5822.92 |
USD/Ton |
0% |
3/23/2017 |
|
Nylon DTY |
1408.54 |
USD/Ton |
0% |
3/23/2017 |
|
Viscose Long Filament |
3151.06 |
USD/Ton |
0% |
3/23/2017 |
|
30S Spun Rayon Yarn |
3049.41 |
USD/Ton |
-0.47% |
3/23/2017 |
|
32S Polyester Yarn |
1735.26 |
USD/Ton |
-0.33% |
3/23/2017 |
|
45S T/C Yarn |
2700.91 |
USD/Ton |
0% |
3/23/2017 |
|
40S Rayon Yarn |
2323.36 |
USD/Ton |
0% |
3/23/2017 |
|
T/R Yarn 65/35 32S |
1916.77 |
USD/Ton |
0% |
3/23/2017 |
|
45S Polyester Yarn |
2265.28 |
USD/Ton |
0% |
3/23/2017 |
|
T/C Yarn 65/35 32S |
3209.14 |
USD/Ton |
-0.90% |
3/23/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
3/23/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
3/23/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
3/23/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
3/23/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
3/23/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14521 USD dtd. 23/3/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile and clothing exports fell 2.53 per cent year-on-year to $1 billion in February, mainly driven by lower proceeds from raw material and low value-added products such as cotton yarn and fabrics, the Pakistan Bureau of Statistics said on Wednesday. The decline in export proceeds was also evident in rupee terms. However, exports of value-added products grew during the month, both in terms of value and quantity. Product-wise details show that exports of readymade garments rose 5.3pc while that of knitwear grew 2pc in February. Exports of bed linen edged up by 2.7pc while those of towels fell 3.9pc in February. In primary commodities, exports of cotton yarn witnessed a year-on-year decline of 11.5pc, while those of cotton cloth and yarn (other than cotton’s) dropped 14.8pc and 46.6pc, respectively. Exports of made-up articles, excluding towels, increased 2.2pc and that of tents, canvas and tarpaulin grew 28.7pc. Proceeds from art, silk and synthetic textile declined 18.2pc while those from raw cotton also recorded a year-on-year increase of 13pc. One reason why Pakistan’s exports of textile products are in decline is that the preferential access to the European Union under the GSP+ scheme hasn’t helped boost proceeds due to slump in demand. In the eight months to February, the value of exported textile and clothing products fell 1.74pc year-on-year to $8.214bn. Overall export proceeds in July-February were down 3.9pc to $13.317bn. Last year, the government announced a textile policy that gives a 4pc rebate on the exports of readymade garments on a 10pc incremental increase over the preceding year, 2pc on home-textiles and 1pc on fabric. No support was announced on raw material or yarn exports. Under this policy, the government paid out Rs2.5bn to exporters in the preceding fiscal year. This shows the policy worked to some extent and promoted exports of value-added textile products. From Jan 15 onwards, the government has not only increased the rebate to 7pc for readymade garments, but it has also allowed cash support of 4pc on yarn and grey cloth under a Rs180bn package announced by the prime minister. One reason for the textile package — from January 2017 to June 2018 — was the need to counter the rising cost of production.
Source: Dawn
The Development Committee Members of European Parliament (MEP) have voted for binding rules on labour and environmental standards, and human rights in the garment sector's supply chain, using the Organisation for Economic Co-operation and Development (OECD) guidelines for the textile industry as a model. The adopted report calls for a mandatory set of rules. The report sought rules from the European Union (EU) Commission so that all players in the textile and clothing industry supply chain respect the labour and human rights of their workers. It also adds that the EU should lead by example and purchase their textiles from sustainable and fair producers. The Socialists and Democrats (S&D) are at the forefront of the fight against unsustainable work in order to avoid further tragedies such as the 2013 Rana Plaza factory collapse in Bangladesh. "National initiatives like the German Partnership for Sustainable Textiles are a good and important base for a European initiative. The Commission must present an EU-wide regulation because trade does not only concern national markets. Trade policy is European policy," said S&D MEP Arne Lietz. "The EU is a significant market for textile products and therefore it bears a great responsibility for the working conditions in third countries. We need decent working conditions in accordance with International Labour Organisation (ILO) standards," said Norbert Neuser, S&D MEP and coordinator for international development. The MEPs had stated in a resolution voted recently that the EU Commission should propose rules obliging all players in the textile and clothing industry supply chain to respect the labour and human rights of their workers. They also advocated introducing EU tariff preferences and labels for sustainably-produced textiles. Textile workers around the world, many of whom are young women and children, suffer long working hours, low wages, uncertainty, violence and hazardous conditions. These practices also harm the EU industry, as they result in social dumping, MEPs noted in a non-binding resolution adopted by 14 votes to 2 with 8 abstentions. To make the industry more responsible and prevent tragedies like the 2013 Rana Plaza factory collapse in Bangladesh, MEPs suggest a series of proposals such as a legislative proposal for a binding due diligence system, based on OECD guidelines, that covers the whole supply chain. This should focus on women's and children's rights and acknowledge existing national initiatives, once they have been audited. The EU should ensure that 'hot spot' textile exporting countries that have preferential access to the EU market comply with obligations and the Commission should offer tariff relief for proven sustainable-produced textiles. EU member states should also promote the right to association and collective bargaining and an obligation to investigate accidents properly in their trade relations with developing countries. Making the 'social impact of production' visible on clothes can increase consumer awareness and help to bring about lasting change. EU institutions and Parliament’s political groups should also set a good example in their public procurement of textiles, including merchandising, according to the MEPs
Source: Fibre2Fashion
ISLAMABAD - Pakistan’s major export-oriented sectors are still showing negative growth despite they have received zero-rating facility from the government for the ongoing financial year. Earlier, the five export-oriented sectors including textile, leather, carpets, surgical and sports sectors had demanded zero-rating facility from the government to enhance the country’s exports. They were of the view that exports are declining due to the non-availability of zero-rating. The government had accepted their proposal and announced zero-rating for the exports oriented sectors of the country. However, exports from these sectors remained negative during the year 2016-17. The latest official data of Pakistan Bureau of Statistics (PBS) showed that textile exports went down by 1.74 percent to $8.2 billion during first eight months (July-February) of the present fiscal year from $8.4 billion of the corresponding period of previous year. In textile sector, exports of raw cotton decreased by 49.27 percent, and cotton yarn’s exports down by 6.14 percent. Similarly, exports of cotton cloth, yarn, knitwear and art silk and synthetic also recorded negative growth during the period under review. The government had recently announced an incentive package worth of Rs180 billion to boost the textile exports. The government believes that exports would enhance in the months to come due to the incentive package. According to the PBS data, the exports of other manufacturing group including carpets, sports good and leather goods also registered negative growth. Exports of carpets, rugs and mats came down by 17.86 percent, sports goods exports down by 5.49 percent and leather exports also showed negative decline during July-February period of the ongoing financial year. The exports of surgical goods had also reduced by 5.33 percent to $221.6 million during July-February period of 2016-17 as against $234 million of the corresponding period of the previous year. The Senate Standing Committee of Commerce in last week recommended the government to announce a package for the other exports sectors as it announced for textile sector in order to boost the country’s overall exports. Pakistan's overall exports had come down by 3.9 percent to $13.32 billion during July-February period of the current fiscal year from $13.86 billion of the preceding year. However, imports have shown a massive increase of 15.99 percent and reached $33.52 billion during July-February of this fiscal year from $28.9 billion during the same period in the previous year. The country's trade imbalance has been recorded at $20.2 billion during July-February of the year 2016-17 as against $15.04 billion in the corresponding period of the last year.
Source: The Nation
LAHORE: Markets are slipping through Pakistan’s fingers both at home as well as abroad not only due to flawed government policies but also because of lethargic private sector that parks resources elsewhere when the times are good and seeks subsidies in the days of distress. According to Transparency International’s corruption perception index (CPI), Musharraf era was the worse. The policies were almost a mirror image of what the present regime is pushing today. The business community’s then resentment against tough audits and relentless raids on their premises by the tax authorities was no different than today. All other governance factors were almost same however, the economy gradually went into top gear post 9/11. It was due in part to a manifold increase in overseas workers’ remittances and the generous contributions made by the global donor agencies. United States of America too lavishly pumped grants into
Pakistan in those days.
It improved macroeconomic indicators and paved way for low interest regime. The businesses benefited from the new global situation. The textile sector minted money and secured state-of-the-art equipment from United States as their well established industries filed bankruptcies. The going was good and new investments at very low costs paid proved to be windfall for the investors. The newly introduced consumer financing products boosted sales of auto and home appliances sector. These sectors also had to increase their capacities. Even while sitting pretty, the textile sector sought and secured subsidies in the form of 6 percent grant for research and development on the exported amount. Since then, investment in all these sectors has been dying down bit by bit. The textile sector is running on up to 12-year old technology, which, in the age of disruptive innovations, is no better than obsolete. The money they accumulated during big time did not go into the upgrading technology but building real estate. A look at the profiles of textile tycoons would reveal that every big house has developed either a huge housing complex or a shopping mall. Well, you cannot export these immoveable assets. They have lost export markets due to low-grade technology and their factories are posting losses, but they have secured their futures through investment in realty. No government has so far been able to devise ideal economic policy. The Federal Board of Revenue (FBR) has always been accused of extortion and corruption. Legal proceedings are inordinately delayed. Police are as corrupt as ever. The SRO (statutory regulatory orders) culture continues to protect the high and mighty just like it did in the past. The manufacturing sector moved on the strength of concessions, waivers and subsidies. The governments the world over do play handholding role to support their domestic industries, but there’s a limit to it. Any industrial sector that fails to achieve global efficiency even after a decade of handholding deserves to be folded. The state can provide concessions to a new sector because of its low volumes and it has to be minimal. When that sector starts growing the subsidy is gradually withdrawn over a period of 5-10 years. Any industry that is unable to operate on its own after ten years of subsidies should be closed down. When governments start subsidising unviable sectors more and more investors start investing in it and as a result the amount of subsidy also increases. A day comes when the government is no longer in a position to provide subsidies. When such a stage comes any sensible financial planner would withdraw all the government concessions before it is too late. Unfortunately, this has not happened in Pakistan. We have been charging full general sales tax (GST) on sugar, beverages, toothpastes, and many items but are afraid to charge full GST on fabric and garments. Planners fail to realise that in any economic distress the first thing that average households stop buying is clothing. This is because they have the option to use the clothing they purchased in the past years. However, if an electric bulb breaks, a fan malfunctions, or sugar runs out then they have no other choice than to get these things immediately. The branded fabrics are sold at up to Rs5000 per meter. The brands start from Rs500 per meter. They are supposed to pay 2 percent GST. When consumers can pay such huge amount for the branded fabric why can’t they pay sales tax to the government. The truth is that pampering the inefficient textile sector would not reduce the trade gap but create a big hole in the government resources. After 60 years of constant concessions it is high time the government reward technology upgrade and value-addition in all industries including textiles.
Source: The News International
Signs are clear that the country is on its way to overcoming a major constraining factor of its readymade garments (RMG) sector -- concentration on a few traditional markets. The export of its apparel items to new and non-traditional markets is registering a healthy surge. Coupled with this, a more heartening aspect is diversification and adaptation of products in line with market demand. In a situation where exports to the major markets such as the European Union (EU) and North America are likely to experience stagnation, the newer markets mean a lot for the country, not just for sustaining the huge industry and the employment it provides to millions but also for maintaining its robust contribution to the economy. Garment exports to non-traditional markets increased 3.4 per cent year-on-year to $2.08 billion in the six months (July-December) of the current fiscal year (FY). Chances are high that by the end of the fiscal, export figures would look healthy enough to strenthen the belief that the newer markets are potentially capable of contributing to the growth of the industry. Although there is a perception that the government's cash incentive - now reduced to 2.0 per cent from earlier 4.0 per cent - has been responsible for the boost over the past couple of years, industry insiders do not attribute it solely to the cash benefit but to market exploration efforts and simplification of the Rules of Origin by some importing countries as well. Interestingly, while some giant garment exporters comprise the list of non-traditional markets, Bangladesh's largest export destination in the list is Japan. Export to Japan registered a rise of $367.22 million in July-December of the current fiscal over that of the past one. The other markets that have also demonstrated good prospects include Australia, China, Turkey and Russia- to name only the front runners. What is significant about the penetration into non-traditional apparel markets is not only the growth itself but also the opening up of alternative avenues for Bangladesh's apparel products. The overwhelming concentration on the main markets of the EU and the US for decades has, despite consistent growth, been foreshadowed by uncertainties lately. Although these uncertainties stemming from rights issues, workplace environment etc., caused a damper to the sector's future, promises to make amends, coupled with some initiatives taken so far, are supportive of shielding the sector from any major dent. In fact, efforts for diversifying the markets were on for a while, and exports did take place to a large number of markets across the continents, but the prospect of sustaining the market presence for a longer time did not seem convincing. This was because exporters were more focused on bulk orders from their known markets - the US and the EU. With the current levels of growth, prospects of exporting to newer and non-traditional markets on an increased scale should be equally rewarding. Given the prospect, Bangladesh needs to penetrate vigorously into the non-traditional apparel markets, and at the same time retain its stronghold on the EU and US markets.
Source: The Financial Express Bangladesh
Georgia growers can expect to make at least 5 to 6 cents more per pound of cotton than they received this time last year, according to Don Shurley, University of Georgia Cooperative Extension cotton economist. The price is due to many factors, but the main cause is the increase in exports. “Most of our cotton now is exported – about three-fourths of it is going overseas,” Shurley said. “Our exports are doing really well. U.S. quality, especially here in the Southeast, has been just excellent in recent years.” Shurley has been with UGA Extension for more than 26 years and believes that this year represents the best quality of cotton Georgia has produced in that time. Much of that improved quality is attributed to newer varieties and technology associated with those varieties. However, some of the past year’s yield potential was lost due to the late-season drought. The lack of rain prevented some of the yield at the top of the plants from fully developing. But because of the extended drought, growers were able to get into the fields and harvest the crop in a timely manner. “We didn’t have any rain or wind come in and reduce the quality, so the harvest conditions were really, really good,” Shurley said. Additionally, cotton acreage was up last year. Georgia planted 1.18 million acres, compared to 1.17 million acres in 2015, according to the UGA Farm Gate Value Report. This year, however, Shurley projects the acreage in Georgia may decrease due to estimated high peanut prices. “Peanuts are expected to be pretty high-priced this year, so farmers will be tempted to plant more than they did this past year,” Shurley said. “The increased peanut acreage could cut into the amount of Georgia’s cotton acreage.” As for cotton seed, Shurley is still trying to calculate the data and average them together. However, he hasn’t seen an increase in the price of seed or technology fees in recent years. The differences in prices from year to year result from the different varieties of cotton seed combined with newer technology, Shurley said. “For example, if you wanted to go to the store and buy a loaf of bread, that loaf of bread may cost you ‘X’ dollars,” explained Shurley. “If you went back the next year and that loaf of bread was more expensive, you could easily conclude that prices have gone up. However, if the bread is more expensive, but it’s a different type of bread, then you’re not comparing the same thing, just like we’re not comparing the same varieties of cotton and technologies.” Prices may be higher next year, but it would be because a new variety or new technology has been introduced to the market, not because of an overall price increase determined by dealers and seed manufacturers.
Source: University of Georgia
Arrangements are being made to establish the Pakistan Readymade Technical Training Institute (PRITI) that will require an investment of Rs 125 million. Efforts are being carried out to select a suitable site in central area for the institute, which will produce trained workforce for stitching, quality control, pattern designing and sewing machine mechanics. Training will be separately provided to male and female workforce at the institute, said Ijaz A Khokhar, chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) while addressing media persons.
He also said that PRITI will be helpful for exporters dealing in readymade garments industry for employing trained workforce and improve productivity as well as overall quality of the products. Speaking about the Sialkot industry, Khokhar said that close to 50 units in the area produce Martial Arts uniforms, while about 100 units manufacture tracksuits and sportswear.
Source: Fibre2Fashion
Leading third-party certifier SCS Global Services has been approved by Textile Exchange as a licensed certification body for the Responsible Wool Standard. SCS is now authorised to conduct independent certification assessments of wool production under 'Farm Scope' of the standard. SCS is also in the licensing process for 'Processing Scope' of the standard. "We are pleased to be an approved licensed certification body and to be able to participate in this landmark sustainability initiative," said Nicole Munoz, SCS managing director."SCS has a long track record of experience in environmental sustainability certification. We are excited to bring this expertise to the table to further the efforts of this collaboration and partnership with farmers, manufacturers, brands and retailers." Textile Exchange is a multi-stakeholder industry group whose members are located in eight countries and represent all stages of the textile value cycle. The Responsible Wool Standard was developed with broad stakeholder input, including farmers, animal welfare groups and apparel brands. It provides the textile industry with a tool to ensure that wool comes from farms with sustainable land management practices, and from sheep that have been treated responsibly. The final standard was released in June 2016 after two years of development and pilot audits conducted worldwide. SCS provides third-party certification under a variety of internationally sustainable agriculture labels, including SCS Sustainably Grown, Veriflora, Better Cotton Initiative, Fair Trade USA, the Equitable Farm Initiative’s 'Responsibly Grown / Farmworker Assured', the Roundtable for Sustainable Biomaterials, and more. In addition, it provides independent auditing oversight for the sustainability supply chain programmes of several international consumer brands. Its' worldwide network of auditors perform assessments for large, medium, and small farms, as well as farm groups.
Source: Fibre2Fashion
