Approach involves incentivising expansion of production base for quality manufacturing of handicraft. The new textiles policy will focus on a three-pronged approach to boost the growth of Indian handicraft sector, which is facing tough competition from international players. According to sources, the approach involves incentivising expansion of production base for quality manufacturing of handicraft products used for interior decoration and lifestyle purposes. "We are focusing on promoting premium handicraft products for the niche market along with preservation and protection of heritage and endangered crafts," a senior Textile Ministry official told PTI. The new policy aims to achieve $300 billion textiles exports by 2024-25 and envisages creation of additional 35 million jobs. The Textiles Ministry is currently engaged in consultation with stakeholders including states and working out the financial implications of the policy with its finance counterpart. It had set up an expert committee headed by Ajay Shankar, member secretary, national manufacturing competitiveness council, for review and revamp of the textile policy 2000.
Source: Business Standard
In a push towards cooperative federalism, 19 states are ready with export strategies prepared in consultation with the Centre, a senior official in the commerce ministry said. This development will pave way to boost India’s exports, he said, adding that timely identification of state-specific impediments towards exports would allow faster resolution. The Centre has assisted these states by sharing with them a template of the export policy document and involving organisations such as the FIEO and IIFT. These states account for more than 90% of the country’s exports. The initiative was launched to empower states in leveraging their strengths and work with the Centre to remove gray areas. A number of states such as Arunachal Pradesh were unable to come up with export policies as they have few items to offer at globally competitive rates. Not having direct access to sea also proved to be a disadvantage. At present, the Centre is assisting six such states to prepare export plans. The Centre believes that having separate export policies will help states identify potential products as well as find out scope for adding values to products meant for exports. For instance, Madhya Pradesh is a leading producer of soya, which is in high demand in various countries. But the quality of soya demanded by these countries are often of high value, and so MP needs to channelise its investments towards adding value to soya it is currently producing. Also, very often exporters face problems in meeting product standard requirements of importing countries. A case in point is shrimp. Shrimp produced in Kerala used to have high antibiotic content, and Japan had put a ban on the product and started importing from Vietnam. It was only after remedial measures were undertaken to produce antibiotic-free shrimp in Kerala that exports to Japan resumed. But by that time, Vietnam pipped India as the top shrimp exporter to Japan. These issues would be better identified and taken care of by states if a separate export policy is in place.
Source: Financial Express
NEW DELHI: The tax department will waive interest liability if the principal demand of capital gains tax is paid by companies like Cairn India and Vodafone plc. The Central Board of Direct Taxes (CBDT) on March 24 issued a circular for waiver of interest in disputed tax demand in different scenarios. In cases where tax liability arose because of retrospective amendment to the law or a court ruling, the interest payable on the demand will be waived, it said. "However, no reduction or waiver of such interest shall be ordered unless the principal demand... stands fully paid or satisfactory arrangements for payment of the principal demand have been made," CBDT guidelines to Chief Commissioner of Income Tax and Director General of Income Tax said. The guidelines came seven weeks after the Direct Tax Dispute Resolution Scheme, announced by Finance Minister Arun Jaitley on February 28 last year, closed. The scheme, which closed on January 31, provided for waiver of interest and penalty if the principal amount involved in retrospective tax cases is paid and all appeals against the government challenging constitutional validity of back-dated amendment to Income Tax laws are withdrawn. Vodafone faces Rs 14,200 crore tax bill for failing to collect taxes when it paid $11 billion to acquire Hong Kong-based Hutchison Whampoa's 67 per cent stake in India mobile-phone business in 2007. UK's Cairn Energy plc has been slapped with over Rs 29,000 crore in tax demand including Rs 10,247 crore in principal due, for alleged capital gain it made in 2006 when it transfered its India business into a new subsidiary, Cairn India, and got it listed. Simultaneously, the tax department also raised a tax demand of Rs 20,495 crore on Cairn India for failing to deduct withholding tax on alleged capital gains made by its erstwhile parent company Cairn Energy in 2006-07 when it reorganised India business. While the tax scheme that closed on January 31 primarily targeted Cairn Energy and Vodafone, the new guidelines will be applicable for Cairn India as well as Vodafone. Neither Cairn Energy nor Vodafone participated in the scheme that closed on January 31 and have dragged India to arbitration contesting the demands. The tax department in the guidelines said the cases where the interest can be waived include ones where tax was not deducted because of an order passed by the High Court but the same has been reversed by "any retrospective amendment of law or a decision of the Supreme Court of India or a decision of a larger bench of the jurisdictional High Court." Earlier this month, tax tribunal ITAT upheld levy of Rs 10,247 crore capital gains tax on UK's Cairn Energy Plc but has held that interest cannot be charged on it as the demand was raised using retrospective tax legislation. The tribunal had also said that Cairn India should have withheld tax on capital gains made by its parent company. The guidelines state that interest can be waived in cases where tax deduction at source could not happen because of seizure of books of accounts and other documents by the Income Tax department. The same can also be done in cases where the default is related to "non-deduction or a lower deduction of tax in respect of a payment made to a non-resident (including a foreign company) being a resident of a country or specified territory outside India with whom India has entered into an agreement." Commenting on the circular, Amit Maheshwari, Partner Ashok Maheshwary and Associates LLP said: "The interest waiver process will become much faster and efficient. Even existing unresolved waiver requests are covered and this will provide an efficient and quick resolution".
Source: PTI
Ahead of the implementation of the Goods and Services Tax (GST), Finance Minister Arun Jaitley has given his nod for the reorganisation of the field formations of the Central Board of Excise and Customs (CBEC). The CBEC is being renamed as the Central Board of Indirect Taxes and Customs (CBIC), after getting legislative approval. For this purpose, the Central Board of Revenue Act, 1963, is expected to be amended in the coming days. The existing formations of the central excise and service tax under the CBEC have been re-organised to implement and enforce the provisions of the proposed GST laws, an official release said. The CBIC will have 21 zones, 101 GST Taxpayer Services Commissionerates comprising 15 sub-commissionerates, 768 divisions, 3,969 ranges, 49 audit commissionerates and 50 appeals commissionerates. This will ensure rendering of taxpayer services to all taxpayers through an indirect tax administration structure with a pan-India presence. For a robust IT network, the Directorate General of Systems under the CBEC is being strengthened. The Directorate General of Taxpayer Services is being expanded for greater outreach for facilitating smooth transition for the taxpayers to the GST environment, the release added. The existing training establishment, to be renamed the National Academy of Customs, Indirect Taxes and Narcotics, will have an all-India presence, to enable capacity building of the employees of the indirect tax administration of the Central and State governments and members of trade and industry. The renamed Directorate General of Goods and Service Tax Intelligence is also being strengthened and expanded.
Source: Business Line
Mexico is fast emerging as a major trade partner for India. India’s exports to Latin America as a whole declined in 2016. But exports to Mexico have increased by an impressive 22 per cent from last year ($2.77 billion) and doubled from $1.56 billion in 2012. (see table) In Latin America, Mexico overtook Brazil ($2.3 billion) in 2016 as the largest market for India's exports. The context is hugely significant. Mexico is keen to strengthen its economic partnership with large markets such as India, after Donald Trump’s trade threats. The Mexican ambassador to India has invited Indian IT professionals to use Mexico as the base for near-shore US operations, after Trump’s H-1B visa restrictions.
Trade specifics
Mexico has emerged as the biggest market for India’s vehicle exports. (see table) Mexico accounts for 13 per cent of India’s global exports of vehicles which stood at $14.98 billion in 2016. This is remarkable in view of the fact that Mexico itself exports $80 billion of vehicles and is the fourth largest exporter in the world. India’s vehicle exports to Mexico have increased by an incredible 56 per cent from 2015 ($1.17 billion), 83 per cent from 2014 ($1 billion) and from a mere $397 million in 2012. Besides vehicles export of $1.83 billion in 2016, India’s exports to Mexico included engineering goods, chemicals, textiles, plastics ($83 million) and pharmaceuticals ($47 million). India’s imports from Mexico were $2.44 billion in 2016, down from $3.44 billion in 2014 due to the drastic fall in the prices of crude oil which accounts for 60 per cent of India's total imports from Mexico. Crude imports in 2016 were $1.48 billion, down from $2.74 billion in 2014. India is the third largest destination for Mexican crude exports which have the potential to increase in the coming years. The other major import items are: engineering products, ($593 million), gold ($77million), chemicals ($76 million), optical products ($57 million), and ores ($54 million).
Mexico’s economy
Mexico is the second largest market in Latin America with a population of 126 million and a GDP of $1.15 trillion. It is politically stable with democratic credentials. The macroeconomic fundamentals are healthy and strong. The average inflation in the last decade was just 4.3 per cent. The Mexican economy grew over 2 per cent in the last two years, while Latin America as a whole suffered GDP contraction in 2015 and 2016. Mexico’s GDP growth rate in 2017 is projected to be around 2 per cent. Mexico is the largest trading nation in Latin America, accounting for about 40 per cent of the region’s external trade. Its market is open with low tariffs and a predictable, investor-friendly policy regime. In the last four years, it has carried out many reforms, opening up hitherto restricted sectors such as energy. It has become a manufacturing hub of the Americas with a global leadership position in some consumer appliances; it is competitive in aerospace and high-tech industries. Manufactured products account for over 80 per cent of exports, unlike the South American countries which are dependent on exports of raw materials and commodities. Mexico is blessed with rich reserves of gold, silver, copper and other minerals as well as oil. However, Mexico has its its own share of challenges which include drug-related violence and Trump’s threats to deport Mexicans from the US and disrupt NAFTA. Thirteen Mexican companies have invested about a billion dollars in India. Around 40 Indian companies have invested in Mexico in pharmaceuticals, auto parts, IT and chemicals. Indian companies use Mexico as the platform for access to the markets of North and Central America with whom Mexico has signed FTAs. Indo-Mexican trade of $5.82 billion in 2016 can touch $10 billion in the next five years. Given the importance of Mexico for India’s trade, it is imperative for India to sign a free trade agreement to remove tariff disadvantages faced by India’s exports vis-à-vis exports from the 45 countries which have signed FTAs with Mexico.
Source: Business Line
A thousand jobs at discount clothing retailer Store Twenty One, which has nine branches in the East Midlands, are at risk after it was revealed that the struggling firm is in talks with its lenders. It is reported that Store Twenty One’s owners are in talks with lenders State Bank of India after struggling to meet rent payments agreed last year when the business went through a company voluntary arrangement (CVA). Althought Store Twenty One hasn’t yet broken the terms of its CVA, it is thought that the quarterly rent date due at the end of March could force its Indian owners to shut stores. The CVA deal last year allowed the retailer to shut 77 shops and an agreement with landlords for 17 of its 202 stores to take a 25pc rent cut. Landlords for more than 80 other stores were asked to accept monthly rents rather than quarterly payments. Store Twenty One, which is headquartered in Solihull and can trace its roots back to 1932, was a listed company until 2002, but then fell into administration in 2006. It was bought by Indian textile manufacturer Grabal Arok in 2007, but has failed to make a profit since. If the CVA fails, reports say it is likely that Store Twenty One will be placed into administration.
Source: The Business Desk
To encourage more individuals to file returns and widen the tax net, the government is set to introduce a single-page income tax (I-T) return form from April 1. This will be for those with annual salaried income up to Rs 50 lakh, much higher than Rs 5-lakh limit proposed in the Union Budget, Revenue Secretary Hasmukh Adhia told Business Standard. He added this would only be for those with salaried and one house rent income. There are 290 million PAN card holders (the I-T dept identification) but only 60 mn return filers. Currently, the I-T form is three pages. It was simplified two years ago, when a controversial provision for mandatory disclosure of foreign trips and dormant bank accounts was removed. “To expand the tax net, I also plan to have a simple one-page form to be filed as I-T Return for the category of individuals having taxable income up to Rs 5 lakh, other than business income,” Finance Minister Arun Jaitley had announced in the 2017-18 Budget. Of the 7.6 million individual assessees who declare annual income above Rs 5 lakh, 5.6 mn are in the salaried class. For those with annual income of over Rs 50 lakh and up to Rs 1 crore, a surcharge of 10 per cent will be imposed; 15 per cent for those over Rs 1 crore. The surcharge is estimated to generate additional revenue of Rs 2,500 crore. Many salaried people do not file returns as it is cumbersome. And, their I-T dues are already taken through Tax Deduction at Source (TDS), which is 37 per cent of gross direct tax collection. Its contribution during 2015-16 was Rs 3.25 lakh crore, growth of 11.6 per cent over the previous financial year. TDS payers might have a tax liability on account of income from other sources, which quite a few avoid paying. Those who do not file their I-T returns (ITRs) on time will have to pay a penalty of up to Rs 10,000 from the 2018-19 assessment year (AY). It will be Rs 5,000 if the return is furnished after the due date but on or before December 31 of the AY. However, for payers with total income not exceeding Rs 5 lakh, the fee for late return filing will be Rs 1,000. An individual whose income exceeds Rs 2.5 lakh in 2016-17 is required to file an ITR. The number of non-filers with potential tax liabilities has risen from an estimated 2.21 million in 2014 to 5.89 million in 2015. Non-filers in 2013 were 1.22 million. The direct tax collection target for 2016-17 is Rs 8.47 lakh crore, about 14.1 per cent more than a year before. “Increasing the coverage with a simplified ITR is a good move. It will ensure many of the salaried who do not file a return feel encouraged to do so. A lot of details are already there in the system, doing away with the need to fill the details yourself. With more information with the government, in future there might not even be a need to file a return,” said Neeru Ahuja of consultancy Deloitte. A person with annual income up to Rs 5 lakh and filing return for the first time would not be subjected to any scrutiny in the first year, unless there is specific information with the department regarding high-value transactions.
Taxing Matters
10% surcharge for those with income above Rs 50 lakh and up to Rs 1 crore
15% surcharge for those with income above Rs 1 crore
Rs 2,500 crore additional revenue from the surcharge
Rs 10,000 fine for those who do not file their Income Tax Returns (ITRs) on time, from 2018-19 assessment year
Rs 5,000 will be imposed if the return is furnished after the due date
Rs 1,000 in penalty for small taxpayers with total income not exceeding Rs 5 lakh
Rs 1,000 for late filing of returns
Source: Business Standard
Union finance minister Arun Jaitley on Monday discussed issues related to goods and services tax (GST) and other economic matters with Maharashtra Finance Minister Sudhir Mungantiwar, representatives of industries and bankers. In the meeting here, representatives of sectors such as shipping and ports, gems and jewellery, petroleum, agriculture and fertilisers and entertainment gave their representations on GST to Jaitley. “Besides GST, issues related to onion exports, farmer suicides and development of agriculture sector in the state were discussed,” Mungantiwar told reporters after the meeting. A request was made to Jaitley to consider reduction in the high interest rate at which loans were sanctioned to the state by the Centre in the past, he said. “The interest rates were very high 10 years back when loans were given to the state by the Centre. We have made a request to review those rates and align them with the current levels,” Mungantiwar added. Jaitley gave an assurance that the Centre would look into all issues concerning the state and address them, Mungantiwar said. The meeting was also attended by State Bank of India Chairman Arundhati Bhattacharya and ICICI Bank head Chanda Kochhar, among others. Last week, Jaitley had said he was hopeful of the GST rollout from July 1.He had said the new regime will create one of the world’s biggest single markets, make commodities cheaper and tax evasion difficult in the country.
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$ 49.49 per barrel (bbl) on 24.03.2017. This was lower than the price of US$ 49.64 per bbl on previous publishing day of 23.03.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3239.41 per bbl on 24.03.2017 as compared to Rs. 3247.61 per bbl on 23.03.2017. Rupee closed weaker at Rs. 65.46 per US$ on 24.03.2017 as compared to Rs. 65.42 per US$ on 23.03.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 24, 2017 (Previous trading day i.e. 23.03.2017) |
Pricing Fortnight for 16.03.2017 (Feb 25, 2017 to March 13, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.49 (49.64) |
53.70 |
|
(Rs/bbl |
3239.41 (3247.61) |
3583.94 |
|
|
Exchange Rate |
(Rs/$) |
65.46 (65.42) |
66.74 |
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1133.89 |
USD/Ton |
-0.64% |
3/26/2017 |
|
VSF |
2500.36 |
USD/Ton |
-0.29% |
3/26/2017 |
|
ASF |
2224.16 |
USD/Ton |
0% |
3/26/2017 |
|
Polyester POY |
1153.51 |
USD/Ton |
-0.19% |
3/26/2017 |
|
Nylon FDY |
3343.51 |
USD/Ton |
0% |
3/26/2017 |
|
40D Spandex |
5306.01 |
USD/Ton |
0% |
3/26/2017 |
|
Polyester DTY |
2398.61 |
USD/Ton |
0% |
3/26/2017 |
|
Nylon POY |
1410.09 |
USD/Ton |
0% |
3/26/2017 |
|
Acrylic Top 3D |
3663.32 |
USD/Ton |
0% |
3/26/2017 |
|
Polyester FDY |
5829.34 |
USD/Ton |
0% |
3/26/2017 |
|
Nylon DTY |
1410.09 |
USD/Ton |
0% |
3/26/2017 |
|
Viscose Long Filament |
3154.53 |
USD/Ton |
0% |
3/26/2017 |
|
30S Spun Rayon Yarn |
3052.77 |
USD/Ton |
-0.47% |
3/26/2017 |
|
32S Polyester Yarn |
1737.17 |
USD/Ton |
-0.33% |
3/26/2017 |
|
45S T/C Yarn |
2703.88 |
USD/Ton |
0% |
3/26/2017 |
|
40S Rayon Yarn |
2325.92 |
USD/Ton |
0% |
3/26/2017 |
|
T/R Yarn 65/35 32S |
1918.88 |
USD/Ton |
0% |
3/26/2017 |
|
45S Polyester Yarn |
2267.77 |
USD/Ton |
0% |
3/26/2017 |
|
T/C Yarn 65/35 32S |
3212.68 |
USD/Ton |
-0.90% |
3/26/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
3/26/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
3/26/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
3/26/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
3/26/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
3/26/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14537USD dtd. 26/3/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
If cotton prices remain stable from here on, it will help contain raw material costs for a few quarters ahead Higher domestic demand for textiles and garments and higher exports will improve demand for yarn, whose price (40s count) is up by around 14% over 12 months. Photo: Bloomberg Southern India Mills Association’s (SIMA’s) statement assuring spinning mills of stable cotton prices and supply should provide mills some comfort. The sharp 10-15% rise in cotton prices in the domestic markets between October and February had led to concerns about cotton supplies for the season. But latest estimates indicate that cotton production of around 34.5 million bales for the 2016-17 season should be more than adequate to meet the demand from spinning mills. This should check a further rise in the price of cotton. Moreover, international prices are expected to be benign as well, thanks to a bumper crop in Australia, an 18% increase in production in the US and restricted imports by China. If cotton prices remain stable from here on, it will help contain raw material costs for a few quarters ahead. Meanwhile, higher domestic demand for textiles and garments and higher exports will improve demand for yarn. Price of yarn (40s count) is up by around 14% over 12 months. Leading mills such as Vardhman Textiles Ltd, KPR Mills Ltd and Ambika Cotton Mills Ltd have reported double-digit year-on-year (y-o-y) growth in sales over the past three quarters, although exports have been subdued during this period. And despite the high cotton prices and the challenges related to demonetization, these companies managed stable operating margins over the past three quarters in the range of 18.5% to 20%. Thanks to the robust performance, stocks of these firms have rallied substantially in the past year and are now trading close to the 52-week high prices. To be sure, stocks of spinning mills still trade at relatively low valuations of 10-12 times estimated one-year forward earnings. The cyclicality and vagaries of the cotton crop tend to suppress valuation. And while SIMA’s assurance of stable cotton supply may support stock prices, the upside may well be limited for the above-mentioned reason. For any re-rating, investors will look for news of higher yarn exports on the back of higher global demand.
Source: Livemint
Known for her quirky and colourful prints, Masaba Gupta's new range is a mix of playful polkas with tinges of pink and silver foil. Masaba Gupta’s love for denim is a well-known fact. Fashion designer Masaba Gupta, who has collaborated with an ongoing Denim Festival in Mumbai, says denims are loved the world over. The Denim Festival at the High Street Phoenix in Mumbai, is exhibiting the evolution of denims in collaboration with Masaba and other brands like Gas, Wrangler, Jack & Jones, Only, Forever New, Lee, Vero Moda, Celio and Pepe Jeans. These are exhibiting the evolution of denims. “The Denim fest is a great fashion initiative. It’s a nice way of celebrating denims which are a universal favourite apparel which is agnostic of trends and genders. Since my new collection is all about denims, I can very well relate to the fest,” Masaba Gupta told IANS. Known for her quirky and colourful prints, Masaba Gupta’s new range is a mix of playful polkas with tinges of pink and silver foil. “The denim range is specially tailored with silhouettes like relaxed jackets, button down skirts, bow tops, oversized trousers and bustier and the denim sari perfect for the summer stroll,” she said. The fest, which started on March 22, will end on March 30.
Source: The Indian Express
The Ministry of Industry and Trade says it is enhancing partnerships with local textile and apparel sector in a bid to improve quality of products. The partnership between the government and private sector is aimed at fast-tracking the ‘Buy Kenyan, Build Kenya’ initiative, CS Adan Mohamed said. “One of the most interesting and new developments that you will see is the recent waiver of duties and taxes on the apparel, clothing and garments that will be captured in our Export Processing Zone entities that will now be sold in the Kenyan market without VAT and without duties,” Mohamed said. Speaking during a tour of Athi River-based Hela Clothing Ltd, Mohamed said it expects good news for the sector at a time when the Textile and Apparel industry globally expects a tougher year due to uncertainties of the global economy. The $6 million (Sh617.70 million) undergarment production facility has so far exported $1.5 million (Sh154.43 million) worth of undergarments in 6 months to US clothing conglomerate Phillips-Van Heusen Corporation through its well known brands such as Calvin Klein and Victoria Secrets. “Their export target of $50 million (Sh5.15 billion) worth of intimate goods to the US and Europe in 2017 is representative of the type of new investments we encourage,” he said. “That the company will be employing 5,500 workers by 2018 is the direct effect of our efforts to spur industrialisation.” This is the country’s first undergarment production facility which is also aimed at slicing Kenya’s clothing import bill currently at over $815 million (Sh83.86 billion). The ministry will host a clothing fair set between March 29 and 31 at the KICC grounds. The exhibition will showcase high fashion, top quality apparels including trousers, shirts, jeans, jackets and undergarments. “Today, a pair of jeans manufactured here by some of our export processing entities that retails in the US between $48 ( Sh4,939.2 )and $50 ( Sh5,147.5 ) will be made available for Kenyans for as low as between Sh400 and Sh600,” Mohamed said. He sought to assure Kenyan textile and apparel manufacturers of government support ahead of a relatively tougher year. This is due to a stronger US dollar, implications of the US new administration’s new policy regime on African Growth and Opportunity Act and the stalling European Union’s Economic Partnership Agreement deal with the East African Community.
Source: The Star Kenya
Spain's textile exports, which account for 60 percent of sector-wide sales, rose by 7.0 percent last year. Photo: Josep Lago/AFP Spain's textile sector, flush with the glittering success of brands such as Zara, is beginning to recover from a crisis sparked by cut-throat competition from Asia that destroyed a third of its firms in less than a decade. Inditex, owner of a range of brands such as Zara, Massimo Dutti and Bershka, easily beat its closest rival, Sweden's H&M, in terms of earnings last year, booking a bottom-line net profit of over €3.0 billion ($3.4 billion). Thanks to the success of Inditex's "fast-fashion" brands, along with that of two other major Spanish high street clothing retailers, Mango and Desigual, Spain is a key player in the global fashion sector. Clothing and textiles account for nearly three percent of the country's gross domestic product. And in terms of sector sales, Spain is Europe's fifth-largest producer behind Italy, Germany, Britain and France, according to Spanish textile association Texfor. Texfor calculates that the number of Spanish suppliers of fabric, fibres and accessories such as buttons has plunged by about a third since 2008. The Spanish sector, like its counterparts in other western countries, has been hit by fierce competition from Asia, as well as a slump in demand due to the global economic downturn. Spanish textile firms were slow to innovate and adapt to the increasingly fast-changing demands of the fashion industry, said Antonio Valdivia, professor in strategy and marketing at the EAE Business School.
Many company bosses in the sector still have "a mentality of industrialists, not of entrepreneurs," he complained. But last year, the number of textile firms stopped falling for the first time since 2008, stabilising at around 3,500 companies. The sector is benefitting from Spain's economic rebound - growth stood at 3.2 percent in 2016, double the eurozone average -- and the disappearance of less competitive firms. "The firms that survived were those that were export-orientated, able to diversify their order book" and respond more quickly to customers' demands, said Manuel Diaz, the head of the CIE, the body that represents Spain's main textile firms. Spain's textile exports, which account for 60 percent of sector-wide sales, rose by 7.0 percent last year. Indeed, Spain now ships raw fabric to Morocco - the number one destination for Spain's textile exports - where it is transformed into clothes for major international brands. After having "neglected" Spanish suppliers in the past, major retailers such as Inditex and Mango have started using them more and more, but there is still room for improvement, Diaz said. Inditex says the number of Spanish suppliers that it uses, not only for textiles, has increased by nearly nine percent since 2012.
Higher added value
The focus on international sales adopted by major fashion retailers has also pushed smaller firms to modernise and shift their focus to activities with higher added value, analysts said. "I would rather see 50 people busy doing high-level graphic design than 50 people sewing T-shirts," said Frederic Sabria of the IESE business school.
Companies have also diversified away from fabrics destined only for fashion and now also make "technical" fabrics for the automobile, agriculture or sports sectors. Products with a higher added value represent 60 percent of the output of Spain's textile firms, according to Texfor chief, Andres Borao. The textile sector hired 45,000 people in 2016, 3.7 percent more than in the previous year, welcome news in a country grappling with the EU's second-highest jobless rate of 18.6 percent. While most new hires in Spain are offered temporary contracts, the majority of those hired by the textile sector last year were given open-ended contracts, said Borao."That's satisfying," he said.
Source: The Local Spain
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, with Sheikh Hasina, Prime Minister of Bangladesh. Over the years, bilateral relations between Bangladesh and the UAE have grown in depth and dimension Forty-six years ago, on March 26, 1971, the father of the nation Bangabandhu Sheikh Mujibur Rahman declared Bangladesh an independent and sovereign country. The country became free on December 16, 1971 after a nine-month war that saw bloodbath and enormous sacrifice of the people of Bangladesh. It is an interesting coincidence that on that very month, on December 2, 1971, the United Arab Emirates was established under the able leadership of the UAE's founding father, the late Sheikh Zayed bin Sultan Al Nahyan. Both the countries thus started their independent statehood at the same time with the same aspiration for peace, progress, social justice and development. The UAE was the first Gulf country to recognise Bangladesh and establish diplomatic relations. Bangladesh opened its embassy in Abu Dhabi on March 23, 1974. Bangabandhu Sheikh Mujibur Rahman even visited the UAE in 1974 and held a historic meeting with the late Sheikh Zayed bin Sultan Al Nahyan. This laid the foundation of the relations between the two countries based on shared faith, history, culture and traditions. The Bangladesh Consulate General in Dubai was opened in July 1980. There has always been an exchange of visits at the highest level between Bangladesh and the UAE. The most important one from the UAE was the historic visit of the late Sheikh Zayed bin Sultan Al Nahyan in 1984, when he stayed in Bangladesh for 10 days. This significantly boosted Bangladesh's relations with the UAE. As a sign of love, respect and friendship of the people of Bangladesh, Sheikh Zayed was then gifted a piece of land near the panoramic coastal city of Chittagong, in the south of Bangladesh. Over the years, bilateral relations have grown in depth and dimensions. This is evident from the widening bilateral cooperation between the two countries in areas such as economic, trade, investment, employment of Bangladeshi manpower, education, tourism, and culture. The two countries are also working closely in different international and regional areas. In recent years, the relations between Bangladesh and the Gulf countries, particularly with the UAE, figures prominently in Bangladesh's foreign policy. As members of the United Nations, OIC and other international forums, Bangladesh has convergence of views on major regional and international issues. Both Bangladesh and the UAE are committed to maintaining international and regional peace, security and development, and they have supported each other's candidature in different world bodies and worked together on various issues of mutual interest on numerous occasions. Bangladesh has extended unilateral Visa on Arrival (VOA) facilities to the citizens of the UAE. This enables any UAE passport holder (regular, official/ service or diplomatic) to travel to Bangladesh without prior visa as VOA would be issued at immigration counters at all the international airports and land ports. All these have contributed to establishing a solid foundation for the political relations between the two countries.
Boosting trade
Bangladesh concluded a General Trade Agreement with the UAE in 1984 and since then, the trade between the two countries has grown steadily. The two-way trade has significantly increased in the recent years and reached nearly $1 billion in recent years. The principal exports of Bangladesh to the UAE are readymade garments, woven and knitwear, vegetables, frozen fish, jute yarn and twine, home textiles and textile fabrics, fruit juice, tea in packets, terry towels, spices, stainless steel ware, PVC bags, melamine tableware, biscuit, electronics, cables, jute products etc. Bangladesh's import from the UAE includes fuel, mineral oil and products of their distillation, chemicals including fertiliser, bitumen etc. ADNOC and its subsidiary companies are providing Bangladesh crude oil and refined petroleum products. Some vegetable products, plastic articles, cotton and cotton yarn/ thread/ fabrics, iron / steel and its products, electrical machinery and equipments etc. are also re-exported from UAE to Bangladesh. Bangladeshi companies have regularly been participating in Gulf Information Technology Exhibition (GITEX), Gulf Food, Textile fair, Autumn fair and Dubai Shopping Festival etc. To boost up further economic cooperation between the UAE and Bangladesh, two trade and investment agreements, the agreement for the Avoidance of Double Taxation and Fiscal Evasion with respect to tax on income and an agreement on Promotion and Reciprocal Protection of Investment, and a memorandum of understanding between respective federation of chambers of the two countries were signed in January 2011. The agreements had a positive impact on investment promotion, economic cooperation and trade development between the UAE and Bangladesh. To create a platform for Bangladeshi business community and to establish business network to exchange business information, ideas and views among other business bodies, the Bangladesh Business Council has been formed and registered in the Dubai Chamber of Commerce and Industry. There is also a Joint Economic Commission between Bangladesh and the UAE. Regular sessions are held alternately in the two capitals.
Cultural cooperation
Bangladesh and the UAE signed a cultural cooperation agreement in March 1978 and this has provided a broad foundation for cultural activities. Bangladesh Embassy frequently takes initiatives to project Bangladesh's rich art and culture in the UAE through various cultural activities like the visit of a cultural troupe, movie screenings and art exhibition. Bangladeshi artists used to participate in the Sharjah Biennial and are invited regularly to participate in the national day celebrations of the UAE when they perform in various cities throughout the country. A large number of the UAE nationals visit Bangladesh every year to attend the second largest Islamic religious congregation held in Tongi, Dhaka. Carriers from the UAE namely Emirates, Etihad and Air Arabia and Biman Bangladesh Airlines operate 40-50 direct weekly flights between the two countries.
Bangladeshi manpower in the UAE
People of Bangladesh started coming to this region before the 1970s in connection with trade, business and even for tourism. Bangladeshi community began to grow in the UAE after mid-seventies when the country's economy flourished from oil revenue. A group of engineers first came to this land with jobs in the oil and gas, electricity and water sectors in the mid-seventies. Some started business in the construction, trading and other sectors. A reputed Bangladeshi company, the Bengal Development Corporation, was one of the first construction companies which constructed the 250 km highway starting from the Saudi- UAE border in the western region of Abu Dhabi and also later built 5,000 prefabricated low cost housing units in Abu Dhabi in Bani Yas/ Al Wathba and Al Ain areas in 1970s and 1980s. These projects were one of the earliest modern infrastructures of the emirate. A significant number of Bangladeshis have been working in the UAE and they are contributing immensely to the economies of both the countries. Bangladeshi workforce is employed in a variety of areas, both skilled and semi-skilled, in electro-mechanical, hospitality sector, construction sector, and driving and municipal services. Many are engaged in business. Major business categories include small grocery shops to supermarkets/ hypermarkets, big construction companies and large perfume manufacturing companies, auto-electric group, automobile garage/ workshops, and spare parts and building materials shops. Some doctors are running polyclinic and engineers are managing construction companies. Yet others are doing business in garments and textiles, restaurants, travel and tourism. The relations between Bangladesh and the UAE are deeply rooted in shared history, faith and traditions, and are based on trust and confidence in each other. With continuous interaction between the governments and people in various fields, it is becoming multi-dimensional. There are ample opportunities to further expand and consolidate the relations. Both Bangladesh and the UAE are committed and look forward to working together to take the relations to a new height and trajectory.
Source: Khaleej Times
The Labor Ministry has unveiled nine measures it wants factories to implement in a bid to protect workers as temperatures soar during the hot season. According to the official announcement, manufacturers in the textile, garment and footwear industry must do more to stop employees from fainting and suffering ill health as a result of working under excessive temperatures. Firms will be required to install and monitor proper ventilation systems, equip workspaces with thermometers to monitor temperatures and set up rooftop water cooling systems to reduce the heat. They must also open windows and doors or put additional fans in the building when the weather is hot and provide sufficient clean drinking water to workers. The ministry directive requires businesses to conduct regular checks of fire prevention systems and educate workers about health and safety procedures. Factories that use flammable chemicals must prepare an emergency response protocol and keep dangerous substances in designated safe areas. The Labor Ministry urged firms to implement the measures as a matter of priority. But a garment worker who gave her name as Sotheary, 32, said her factory in Phnom Penh’s Mean Chey district regularly overheats. Ms. Theary said: “The factory rarely cools the building with water. We bring in our own small fans to put near us and reduce the heat.” She added that workers have asked the employer to install fans or do something about the heat, but their requests fall on deaf ears. I want the factory management to understand the difficulties workers face. We work hard for them, but the owners seem to pay little attention to us,” Ms. Sotheary said. Man Seng Hak, the deputy president of the Free Trade Union, said the ministry’s announcement is nothing new and firms continue to ignore such regulations. “This is just an announcement. Implementation will not be effective if the ministry do not conduct proper inspections and punish those who don’t comply,” he said. He added that the ministry regularly issues directives to manufacturers, but workers continue to faint and suffer health problems. Mr. Seng Hak urged the ministry to penalize factories that don’t protect workers, since too many ignore official orders to improve working environments. In 2016, 1,160 garment and footwear factory workers at 18 factories fainted due to various factors including poor air quality and inhalation of chemicals.
Source: Khmer Times
Bangladesh's denim shipments to the US, its single largest export market, have remained stagnant for the last seven years, hovering around the $400-million mark. In 2010, Bangladesh exported $404 million worth of denim products to the US, and since then it peaked at $455 million in 2013, after which it started sliding, according to data from the United States International Trade Commission. Denim exports to the US in 2015 stood at $430 million, and in the first half of 2016, the figure reached $186.30 million. Exporters blamed the slow growth on the growing popularity of overdyed fabrics and higher imports from the US's neighbouring country Mexico. “Denim shipments to the US were supposed to be higher but for some reasons it did not increase as much as we had expected,” said Kutubuddin Ahmed, chairman of Envoy Group, a major producer and exporter of denim. One of the reasons is the growing popularity of overdyed fabrics, he said. Overdyeing is a process where the fabric is either dyed for too long or dyed a second time. It is most often used on denim to add an overtone of colour to the indigo. In recent years, the US has increased denim imports from Mexico due to competitive prices and shorter lead-time, said Mostafiz Uddin, managing director of Denim Expert. Besides, American retailers get duty benefits for sourcing from Mexico. Bangladeshi garment imports are subjected to 15.62 percent duty upon entry to the US, while Mexico's wares get duty-free access. Moreover, the US itself produces a lot of denim garments, he said. “Although the US does not produce a lot of garment items for export, the American manufacturers, especially those in Los Angeles, make a huge quantity of denim products.” Another important reason for the slow growth of denim exports is that the US retailers purchase low-cost denim products in bulk from China, said Mostafiz, who is also a major exporter of denim from Bangladesh. In 2016, US apparel industry's sales increased 3 percent to $218.7 billion, according to NPD Group, an American market research company with operations in 20 countries. Since 2013, the US apparel market has struggled to go beyond the 3 percent sales growth, it said. “The apparel industry is being pushed and pulled in different directions by consumers who are demanding something different and looking to less-traditional buying channels to find it,” said Marshal Cohen, NPD's chief industry analyst. Meanwhile, after a downward trend in the last four months of 2016, Bangladesh's denim exports to the US started increasing from January this year. In January, Bangladesh exported goods worth $537.6 million, up 30.3 percent from the previous month, according to data from the US Department of Commerce. In 2016, Bangladesh's total exports to the US stood at $5.91 billion, down 1.5 percent from a year earlier. But, in recent months things are turning around, according to Ahmed of Envoy Group. “Now we are receiving a lot of work orders from the US buyers, who previously bought denim from Mexico,” he said. Despite slow growth in denim exports, Bangladesh still remains the third largest supplier in the US market. Only China and Mexico supply more denim to the US than Bangladesh. The share of Bangladesh in the US denim markets is 12.03 percent, while that of China and Mexico is 26.04 percent and 25.40 percent respectively. The wide consumption of denim by fashion connoisseurs globally has created a new opportunity for Bangladesh, according to local manufacturers. Bangladesh presently has around 30 denim producing factories that have about $1 billion of investment locked in.
Source: The Daily Star
Islamabad-The summer garments, fabrics and colours with elegant floral prints and stunning summer shades attracting buyers’ especially young girls all over the country. A report aired by a private news channel said, this is an ideal time to pick summer clothes because anything sold off-season or at the outset of season is available at reasonable prices than in the mid of the season. The newest styles of summer dresses are also available in the markets but mostly summer variety has been retrieved and displayed from last year’s collection, says a shopkeeper at a local market. Fabrics displayed in markets are of various types including thick or thin in a variety of summer colours with mostly floral and small prints while choicest shades of the people are usually light in the season such as pastel, white, off-white and creamy colours. For the last few years, the launching of various brands have offered variety of designs that facilitate the fashion lovers to wear exquisite apparels and get rid of expensive tailoring. Those who want to wear something very extra ordinary and less common; they go to branded outlets as they offer ready to wear apparels and matching accessories to colour the summer apparels, said a Young girl Asma Tahir at garment shop. Lawn and cotton fabric exhibitions are also organized every year in which the textile mills, designers and popular brands contribute a variety of latest prints and styles on discounted rates. The demand of light colours echoes the nature of the season which is the warmest season of the year and people feel comfortable while wearing light colours and soft fabrics. At the mid of March, shopkeepers start putting up summer stuff at their outlets while this year they displayed their collection at the mid of February, said a local shopkeeper. The shopkeepers have also displayed winter items on discounted prices as the season started vanishing and it is also not sure that whether next year these fashions will remain in vogue or not.
Source: The Nation
Almost half of the 46 textile factories at the Khurrianwala industrial estate outside Faisalabad, to quote the industry sources, have gone out of business over the last several years — mainly owing to severe energy shortages in Punjab. Others are operating at far below their full capacity. Some may argue — and rightly so — that energy crunch wasn’t the ‘only factor contributing to the closure of some of these factories’. But few would dispute the contention that the energy shortages spanning over last one decade have been the single most important reason for the widespread bankruptcies up the textile value chain in Punjab. “Unless a paradigm change is brought about and transparency is ensured, the exporters will never be able to get their refund claims on time” Ever since the energy supplies to the industry have enormously improved after the induction of the imported LNG (liquefied natural gas) last year. Advertisement However, the chances of an immediate recovery of the industry and revival of the closed factories remains far from assured. “We (the textile industry) are just hanging in... in the hope of better days,” insists Khurram Mukhtar whose own company, Sadaqat Limited, was able to survive energy shortages by investing in expensive, alternate sources. “Not everyone could bear the high cost of alternate power generation. So they closed down to avoid their losses as their customers turned to other textile producing countries in the region,” argued Khurram, whose company exports home and other textiles worth $150m a year, while talking to this writer at his factory last week. “If the closed factories resume production and others start operating at the full capacity, we can easily double textile exports from Khurrianwala industrial estate alone to $3bn in no time.” Improved power and gas supplies aside, few believe that that the closed textile units will start to produce for overseas buyers and exports pick up any time soon. “Power and gas are now available to the industry round the clock, the cost of export refinance is at its historic low, banks are flushed with liquidity, and the prime minister has announced a Rs180bn package to lift textile exports. Still no one is investing in the textile manufacturing. Have you ever considered why the textile factory owners are moving away from the manufacturing and investing in other businesses like real estate and retail?,” asked Ajmal Farooq, chairman of the Faisalabad-based Pakistan Textile Exporters Association. These are tough times for Pakistan’s textiles industry, he argued. The industry’s competitiveness in the world markets has in the recent years been eroded by higher-than-regional average cost of electricity and the liquidity crunch it has been facing owing to the delays in the release of export refund claims worth billions of rupees. “Power supply has indeed improved, but its price has also doubled to Rs12 a unit — much above the cost in the competing countries like Bangladesh, and the entire bill of expensive gas imports has been passed down to industrial consumers in Punjab. On top of that massive working capital of textile exporters has been held in sales tax, custom rebate and income tax refund regime, increasing their financial stress. No payment has been made to exporters against the RPOs (refund payment orders) issued since July 1, 2016, despite the law that money should be refunded to the holders of RPOs in 72 hours of their issuance. With 10pc of my sales flowing into refund regime, how can you expect me to survive?,” Ajmal asserted, who estimated that claims of over Rs150 billion had already been accumulated in the FBR’s refund regime. He was of the opinion that the ‘refund money’ should be parked separately by the FBR and must not be shown as part of its tax collection. “Unless this paradigm change is brought about and transparency is ensured, the exporters will never be able to get their refund claims on time.” Sohail Pasha, another exporter from Faisalabad, argued that this was the worst period for the textile industry and exports. “Theoretically the government has zero-rated the textile industry. Practically, we continue to pay myriad of taxes that are never returned to us. For example, the government hasn’t zero-rated energy fuels like coal, furnace oil, etc. Apart from paying international price for gas, we are also being charged for the inefficiencies of the SNGPL. Although the Economic Coordination Council (ECC) had decided that the consumers will pay only actual UFG (unaccounted for gas), we are being charged SNGPL’s average UFGs. Last but not the least, the Punjab Revenue Authority (PRA) is taxing our exports separately. In all, the exporters are paying 11pc of their sales in un-refundable taxes. These taxes are the hidden costs that we cannot export.” The exporters are not much optimistic about the implementation of the Rs180bn export enhancement package announced by prime minister Nawaz Sharif in December. The package allowed the 4-7pc rebate to textile exporters across the value chain rewarding value-addition. Besides, imports of cotton and machinery for the industry was also made duty-free to encourage investment for boosting exports. “Our past experience with the government is not very encouraging. It makes promises with us but never implements them,” PTEA secretary Azizullah Gohir asserted. “The finance division is yet to allocate funds for rebates the package promises to help the industry cut its costs and get back to its feet. No exporter has so far been paid any paisa so far although they already have partially passed the benefit to their foreign buyers to book orders. We don’t know if the government is going to pay what it has promised and when. So far it hasn’t allocated money for this purpose. But we are submitting export realisation documents to our banks.” He reminded that the government also owed Rs40bn to the textile exporters accumulated in the last three years under the textile policy incentives. “The government wouldn’t need to give any support or subsidy packages if it truly zero-rated textile and other exports and reduce the cost of doing business by pulling down the electricity prices to the regional average. Who needs a package if the government cleans up its own mess,” he concluded.
Source: Dawn
Following the increase in forecast for the US cotton crop, the latest US Department of Agriculture (USDA) report now projects global cotton production this season to total 105.7 million bales, up 9 million bales or 9 per cent above the 2015/16 season. Global harvested area in 2016/17 is estimated at 29.2 million hectares, down 4 per cent from the previous season. However, USDA has projected the global yield in this season to be significantly higher at 788 kilograms (kg) per hectare, as against 690 kg per hectare in 2015/16. In 2016/17, production in India is forecast at 27.0 million bales, 2 per cent above last season as a rebound in yield, more than offset a reduction in harvested area, while China’s cotton output is expected to reach 22.5 million bales, also a 2 per cent increase over 2015/16. "For Pakistan, 2016/17 production is forecast at 7.7 million bales, up 10 per cent, while Brazil’s 10 per cent increase will push its crop to 6.5 million bales," USDA said. Australia is projected to produce 4.5 million bales in 2016/17, up a massive 58 per cent over 2015/16, primarily due to an increase in cotton acreage, as rainfall helped increase the lower yielding dryland area.
Source: Fibre2fashion.
