Several Union ministers, key policymakers and representatives of the global textile and apparel industry will deliberate on the issues facing the sector at the upcoming mega textile event ‘Textile India 2017’. The 3-day international event, to be held in Gandhinagar during June 30-July 2, is expected to suggest a 10-year roadmap for the sector’s growth. Textile India 2017 will, for the first time, mark the positioning of an annual textile trade event in the country on the annual calendar of global trade events. There will be a mega exhibition which will showcase the strength of the textile-garment value chain in India. The event will provide an excellent platform for B2B interactions and for exploring investments and technological tie-ups across various segments in the textiles value chain. Alongside, an international conference will be held with participation from global and national leaders of industry, technical experts and senior policy makers from the Union and state governments. It is likely to witness participation of several dignitaries including Union textiles minister Smriti Irani, MSME minister Kalraj Mishra and power minister Piyush Goyal. Discussions would be centred on making India a global sourcing hub and an investment destination, exploring the growth potential of technical textiles, identifying productivity and product diversification challenges for natural fibres, and skilling requirements in high value chain. Further, given the mutual complementarities between the textile industries of India and China, leading Chinese textile companies and industry associations have been invited to attend the upcoming textile event. Earlier this week, the Consulate General of India in Shanghai organised a roadshow in Zhejiang’s Shaoxing to spread awareness amongst Chinese textile companies about the event. Nearly 120 textile companies from fabrics, machinery and yarn sector participated at the Shaoxing roadshow. A detailed presentation on the overall scope, scale and participation guidelines for Chinese companies was made by Pushpa Subrahmanyam, additional secretary, ministry of textiles. She also answered queries of Chinese companies on issues related to investments in textile practice in India. (
Source: Fibre2Fashion
Over the past few years, Indo Count Industries has been growing by leaps and bounds under its Chairman Anil Kumar Jain. The company charted an expertly planned growth path and has been forging ahead at great pace, thus boosting the stakeholder’s value as well as morale Over the past few years, Indo Count Industries has been growing by leaps and bounds under its Chairman Anil Kumar Jain. The company charted an expertly planned growth path and has been forging ahead at great pace, thus boosting the stakeholder’s value as well as morale. Growing from a $4 billion market to $13 billion in the US by diversifying into newfangled products has been one of the many feats Indo Count achieved in the last few years. Besides diversifying its product range, the company has expansion plans in Europe and Australia too. The company is also looking at expanding capacity at its Kolhapur plant, from 68 million meters to approximately 110 million meters over the next two years. The capital-light business model has helped the company gain better visibility in the home textiles business. The company has outpaced the clocked revenue of Rs 2,213 crore resulting in a 24 per cent growth during fiscal 2016. Moreover, its highest ever EBITDA and PAT showed a remarkable growth of 51 per cent and 82 per cent, respectively. The secret behind the phenomenal growth of the company is beyond hard work and astute business decisions. In their own words, the company could achieve such exemplary success through tighter operating controls, prudent raw material sourcing, new customer additions, increased capacity utilisation followed by expansion in bed-linen capacity, new positioning in the mid-to-high end segment, a make-to order approach, superior product mix and strictly controlled overheads. Undoubtedly, the turnaround is noteworthy, especially when most of India’s textile companies are still in the spinning business and haven’t managed to make the shift to value-added products. In the capital-intensive spinning business, capacity needs to be added regularly. And single-digit margins mean that without going into further debt, it is nearly impossible for textile companies to add this capacity. This means profitability is always low. Yet, Indo Count’s method were a departure from the tried and tested ways. It has chosen to evolve in a distinct manner. Since 2011, the revenues have risen 25.5 per cent annually to Rs 2,070 crore with profits reaching Rs 250 crore in the year ended 31 March 2016. Last fiscal, Indo Count planned to stock its own brand at various retail outlets in the US. For the Indian markets, it tied up with Asim Dalal, to set up The Bombay Store, to market an exclusive range of bed sheets as a premium product — priced between Rs 2,000 and Rs 9,000 — through Indo Count Retail Ventures, in which Dalal holds a 20 per cent stake. In the next five years, the company aims to clock Rs 500 crore in revenues from its Boutique Living brand. Bringing in innovation in its every day culture has helped Indo Count stay milestones ahead of the competition. While some factors, like cotton prices, are beyond its control, the company says it does everything to ensure that nothing like the forex derivative loss happens anew, even as they integrate more into the global supply chain of their retail partners. In 2016, Indo Count launched three new lifestyle brands — Boutique Living, Revival and The Pure Collection in the US market. These brands are scheduled to be launched in other markets in 2018. While Indo Count has carved a distinct niche, challenges in the home market, still persist. Limited visibility and awareness in India are likely to hamper its expansion plans and growth. Not to mention the higher cost of capital and internal duty structure, in turn, resulting in high pricing of essential raw materials for man-made fibres. How Indo Count maintains its growth pace remains to be seen.
Source: Business World
India’s 2016-17 cotton imports are set to jump more than a third from a year ago to a record 3 million bales as the rupee’s rise makes buying overseas cheaper, senior industry officials and executives said. The strong rupee - now at its highest level in 18 months - has also braked cotton exports from the world’s biggest producer of the fibre, a trend that has helped rival suppliers in Brazil, the United States and some African countries boost their own exports. ‘Usually (textile) mills in southern India import cotton,’ said K Selvaraju, secretary general of the Southern India Mills’ Association, in a recent interview. ‘This year mills from even the north are importing. Overseas supplies have become competitive due to the strong rupee.’ India’s currency has risen 4.8 per cent so far in 2017 versus the US dollar. Indian mills have contracted to import around 1.5 million bales and another 1.5 million bales will be imported by end of the current crop year, ending September 30, Selvaraju said. That total of 3 million bales would be 36 per cent more than the 2.2 million bales imported in the 2015-16 crop year, with stocks coming mainly from African countries, the United States, Brazil and Australia. Tightness in domestic supply is also boosting imports, as Indian farmers hold off on deliveries in the hope of achieving higher prices later in the crop year. Usually Indian mills import cotton in the second half of the crop year as domestic supplies dwindle. But this year they began importing in January as local prices jumped due to limited supplies, said Chirag Patel, chief executive of Indian exporter Jaydeep Cotton Fibres. The state-run Cotton Advisory Board has forecast production of 35.1 million bales in the current crop year, but industry officials say production is likely to be around 34 million bales as output was hit in southern states of Andhra Pradesh and Tamil Nadu by a drought. The rampant rupee has also dented cotton exports from India. ‘Because of currency fluctuation right now Indian cotton is not competitive in the world market,’ said Jaydeep Cotton Fibres’ Patel. ‘Traders want to export but they couldn’t sell.’ The country has so far contracted to export 4.5 million bales in the current crop year, and total exports in the season could be around 5 million bales, down 30 per cent from a year ago, he said. Pakistan, Bangladesh, China and Vietnam are key buyers of Indian cotton.
Source: New Age BD.
SURAT : Union minister for Textiles, Smriti Irani will announce the package on powerloom sector from Bhiwandi in Maharashtra in presence of Maharashtra chief minister Devendra Fadnavison April 1. The country's largest powerloom sector in the city is eagerly waiting for the ministry of textiles, Government of India for the big ticket announcement of a package for the powerloom sector on April 1. Official sources said that Union minister for textile Smriti Irani will be announcing the package of powerloom sector from Bhiwandi in Maharashtra and that she will connecting live through the video conferencing with Surat, Malegaon and Erode—the four biggest power loom and weaving industry in the country. Union minister of state for textiles, Ajay Tamta and joint textile commissioner, SP Verma will be present at the event for the launch of the package for the powerloom sector. Irani will connect with Tamta and others in different centres through the video conferencing linkage to announce the scheme. Talking to TOI, Navsari MP, CR Paatil said, "Around four to five schemes for the powerloom sector will be announced on April 1. Textile minister Smriti Irani will announce the package from Maharashtra and will connect live through video conferencing in Surat and other textile centres"
Source: The Times of India
NEW DELHI: India's garment shipments are hardly picking up owing to a strong rupee and depreciation of currencies of its competitors like China, Bangladesh and Vietnam, apparel exporters' body AEPC said today. In a statement, the Apparel Export Promotion Council (AEPC) called for a carefully considered strategy and a pragmatic approach to arrest the rise of the rupee. "Despite government's intentions and support to the industry, exports are hardly picking up. The primary reason is a strong rupee and depreciation of currencies of our competing countries like China, Bangladesh and Vietnam," AEPC said. "Chinese Yuan depreciated by 13 per cent, Bangladesh Taka by 6 per cent and Vietnam Dong by 7 per cent whereas India's rupee hardened by almost 6 per cent over the last 3-5 months". Moreover, it said, China got the highest foreign direct investment during this period. The apparel industry was very hopeful after the special package offered to it in June 2016, where significant financial and investment incentives were offered, besides critical labour flexibilities, with the aim to generate 100.3 lakh additional jobs and USD 30.04 billion additional exports, AEPC said. "The growing cotton prices and rupee appreciation is not only going to nullify the intended impact of the package, but also weaken India's position against our competitors, if left unchecked," cautioned AEPC Chairman Ashok Rajani. "Also, I request government to fast track the roll out of the special package with full reimbursements of the reimbursement of state levies (ROSL) claims and implementation of the optional PF provision provided in the package," said Rajani. Cotton prices have increased by 24.7 per cent on an average, across all categories in the last one year. In fact some categories have seen hike of up to 35 per cent, he added. India's readymade garment (RMG) exports were to the tune of USD 1.60 billion in February 2017 with the growth of 5.05 per cent against the corresponding month of February 2016 which was USD 1.52 billion. In rupee terms, the exports stood at Rs 10,764.56 crore in February as against Rs 10,424.28 crore in the corresponding month of 2016. The country's RMG exports during April-February were to the tune of USD 15.544 billion, increasing by 0.57 per cent compared to the same period of previous financial year. The government has set a target of USD 30 billion for garment exports by March 2019. India's apparel industry provides jobs to 10.5 crore persons, directly and indirectly. Each Rs 100 crore of apparel production generates Rs 30 crore of labour income.
Source: The New Indian Express
India’s cotton imports may jump more than a third from a year ago to a record 3 million bales as the rupee’s rise makes buying overseas cheaper Pakistan, Bangladesh, China and Vietnam are key buyers of Indian cotton. Photo: Bloomberg. Mumbai: India’s 2016-17 cotton imports are set to jump more than a third from a year ago to a record 3 million bales as the rupee’s rise makes buying overseas cheaper, senior industry officials and executives said. The strong rupee—now at its highest level in 18 months—has also braked cotton exports from the world’s biggest producer of the fibre, a trend that has helped rival suppliers in Brazil, the United States and some African countries boost their own exports. “Usually (textile) mills in southern India import cotton,” said K. Selvaraju, secretary general of the Southern India Mills’ Association (SIMA), in a recent interview. “This year mills from even the north are importing. Overseas supplies have become competitive due to the strong rupee.” India’s currency has risen 4.8% so far in 2017 versus the US dollar. Indian mills have contracted to import around 1.5 million bales and another 1.5 million bales will be imported by end of the current crop year, ending 30 September, Selvaraju said. That total of 3 million bales would be 36% more than the 2.2 million bales imported in the 2015-16 crop year, with stocks coming mainly from African countries, the United States, Brazil and Australia. Tightness in domestic supply is also boosting imports, as Indian farmers hold off on deliveries in the hope of achieving higher prices later in the crop year. Usually Indian mills import cotton in the second half of the crop year as domestic supplies dwindle. But this year they began importing in January as local prices jumped due to limited supplies, said Chirag Patel, chief executive of Indian exporter Jaydeep Cotton Fibers. The state-run Cotton Advisory Board has forecast production of 35.1 million bales in the current crop year, but industry officials say production is likely to be around 34 million bales as output was hit in southern states of Andhra Pradesh and Tamil Nadu by a drought. The rampant rupee has also dented cotton exports from India. “Because of currency fluctuation right now Indian cotton is not competitive in the world market,” said Jaydeep Cotton Fibers’ Patel. “Traders want to export but they couldn’t sell.” The country has so far contracted to export 4.5 million bales in the current crop year, and total exports in the season could be around 5 million bales, down 30% from a year ago, he said.
Source: Livemint
The goods and services tax (GST) Council on Friday cleared rules on five aspects of the new indirect tax regime and tentatively approved four sets of norms. This follows the clearing of the GST Bills by the Lok Sabha and the focus shifting to rules and the fitment of rates. The Council’s next meeting on May 18 and 19 in Srinagar will take up the four sets of norms (tentatively approved on Friday) and item-wise rates. This will leave six weeks for businesses to prepare for these changes before the planned roll-out on July 1. The five sets of rules the Council cleared are on registration, returns, payment, refunds and invoices. They were approved earlier, too, but were changed in bits and pieces to bring them in sync with the four Bills cleared by the Lok Sabha. The latter will be discussed and passed in the Rajya Sabha when Parliament reconvenes on Wednesday, after a short break. The other four it approved were with regard to input tax credit, valuation, transitional provisions and composition, Union Finance Minister Arun Jaitley told reporters. They will be put in the public domain for suggestions for them to be taken up at the next meeting in May. The Council will consider the fitment of items in the five slabs — zero, five per cent, 12 per cent, 18 per cent and 28 per cent. ‘Sin’ and luxury products such as tobacco, cigarettes, coal, luxury cars and aerated drinks will attract a cess over the peak rate of 28 per cent. The issue is if the fitment of rates and the four sets of rules are settled by May 19, businesses get one-and-a-half months to prepare for these changes. If these are delayed, they are left with even less time. However, an official in the finance ministry said the rate fitment would largely be a mechanical exercise. This means the items will attract the GST rates that correspond roughly to the present indirect tax incidence. Even so, rules on input tax credit and transition are relevant and these might be cleared only in the next Council meeting. Also important are rules on valuation. Businesses want to know what happens to their inter-branch transfers. Kerala Finance Minister Thomas Isaac said: “We must not delay the GST roll-out.” Delhi Deputy Chief Minister Manish Sisodia agreed. “We are all ready for July 1,” he said. Parliamentary Affairs Minister Ananth Kumar said once the Bills got the presidential assent and were notified, the legislative assemblies of states would need to pass their state GST Bills soon after, preferably by calling a special session. In the Rajya Sabha, Opposition parties, particularly the Congress, Trinamool Congress and Left, have indicated they might move amendments to the Central GST and Integrated GST Bills. They are saying the existing Bills have made the GST Council superior to Parliament, as the government would go by the Council’s recommendations on setting the rates. However, the GST Bills are money Bills. This means the Lok Sabha can reject any amendments the Rajya Sabha might adopt.
Source: Business Standard
NEW DELHI: The GST Council cleared the bulk of the rules framework that constitutes the nuts and bolts of the goods and services tax regime, days after the Lok Sabha approved crucial laws related to it. The quick decision by the GST Council on Friday brightens the chances of the new tax being rolled out from July 1 though industry has stepped up the demand for a September 1start to give it more time for preparation. The council will take up on May 18-19 the last big remaining task of fitting individual goods into the four tax slabs already decided. The council approved five rules dealing with registration, refunds, returns, invoice-debit and credit note payments that have been amended in line with changes to the GST laws. GST Council clears bulk of rules for new tax regime In addition, it approved the draft of four remaining rules out of the total nine. "Draft rules for input tax credit, valuation, transition and composition scheme have been approved by the council," finance minister Arun Jaitley said after the meeting. These drafts will be made public so that industry can give inputs and the final draft will be up for approval at the next council meeting to be held on May 18-19 in Srinagar. The Lok Sabha had on March 29 approved the four GST laws — central GST, integrated-GST, union territory - GST and compensation. These now have to be approved by the Rajya Sabha, which should not pose a problem as these are Money Bills. The next meeting will also take up the crucial issue of deciding the slabs that goods and services will be slotted into. The council has finalised a four-tier tax structure of 5%, 12%, 18% and 28%, but the highest rate has been pegged at 40%. With the next council meeting more than a month away, achieving the deadline may be difficult, experts said. "Given the fact that the council is meeting next on May 18-19 to finalise these rules and rates would be finalised thereafter, implementing GST from July 1may be extremely difficult for the government," said Pratik Jain, indirect tax leader, PwC. "One could expect that the voices for September 1 implementation would get stronger over the next few days." MS Mani, senior director, Deloitte Haskins & Sells, concurred with Jain. "Today's announcement of the draft rules together with the GST legislations approved two days back gives businesses a very short window of three months to prepare," he said. "Since the rates would be known only by end of May, a process-based systematic approach by businesses is the need of the hour."
Source: The Economic Times
Finance Minister Arun Jaitley on Friday introduced in the Lok Sabha a taxation-related Bill that seeks to, among other things, provide for levy of integrated goods and services tax (iGST) and GST compensation cess on imported goods. The levy of integrated GST and GST compensation cess on imported goods — through an amendment to the Customs Tariff Act — is expected to provide a level-playing field to the domestic industry once the GST regime gets introduced in the country. Integrated GST (iGST) will replace the current countervailing duty once the GST system, scheduled to roll out in July, gets implemented, according to tax experts. iGST will be levied on reverse charge mechanism in the sense that the importer would initially bear the tax. Under the proposed GST framework, basic customs duty on imports will remain outside and not get subsumed into GST. The new Bill — Taxation Laws (amendment) Bill 2017— also provides for continuation of levy of central excise on petroleum crude, motor spirit (petrol), high speed diesel, aviation turbine fuel and natural gas, tobacco and tobacco products. It also seeks to amend the Customs Act to include “warehouse” in the definition of “customs area” and ensure that an importer would not be required to pay the proposed integrated GST at the time of removal of goods from a customs station to a warehouse. Taken together, the Bill seeks to amend the Customs Act 1962, the Customs Tariff Act 1975, the Central Excise Act 1944, the Finance Act, 2001 and the Finance Act, 2005 and to repeal certain enactments. The Bill also seeks to abolish certain cesses or surcharges that are levied or collected as duty of excise or service tax under various Acts, such as on water consumed by certain industries and local authorities under the Water (Prevention and Control of Pollution) Cess Act 1977.
Source: Business Line
After a brief overnight pause, the rupee today strengthened by 7 paise to end at a fresh 17-month high of 64.85 on bouts of dollar sellling from banks and exporters. (Reuters) After a brief overnight pause, the rupee today strengthened by 7 paise to end at a fresh 17-month high of 64.85 on bouts of dollar sellling from banks and exporters. The domestic currency largely withstood the mid-session discomfort in the midst of excess volatility and movements of the greenback in global trade. This is the highest closing of the rupee since October 23, 2015, when it had closed at 64.83. The overnight bullish dollar sentiment has been carried forward to the Asian session following impressive US economic news and expectations of tighter pace of monetary tightening by the Fed. Fresh bout of dollar selling by exporters and persistent foreign capital inflows largely aided the recovery, a forex dealer said. Meanwhile, domestic bourses succumbed to fag-end profit taking despite a strong start on investors caution amid soft Asian session, snapping a three-day spectacular rally driven by optimism surrounding the GST. After a steady start at 64.92, the rupee bounced back and moved in a tight range of 64.79 and 64.9850 most part of the day with wide swings. It finally ended the day at 64.85, revealing a smart gain of 7 paise, or 0.11 per cent at the Interbank Foreign Exchange (Forex) market. Over the quarter, the home currency has strengthened by a whopping 307 paise or 4.52 per cent induced by a crucial victory for BJP in a key state election and big foreign inflows into markets. In worldwide trade, the dollar index, which tracks the US currency against a basket of six major rivals, was down 0.11 per cent at 100.35. The RBI, meanwhile, fixed the reference rate for the dollar at 64.8386 and for the euro at 69.2476. In cross-currency trade, the rupee also bounced back against the pound sterling to close at 80.93 from 81.00 per pound and continued to rule firm against the euro to finish at 69.31 compared to 69.75 earlier. It also strengthened further against the Japanese Yen to settle at 58.01 per 100 yens from 58.44 yesterday. On the equity front, the flagship Sensex retreated by 26.92 points to end at 29,620.50 after briefly reclaiming its previous record closing high, while broader Nifty ended flat at 9,173.75. In the forward market, premium for dollar drifted further due to sustained receivings from exporters. The benchmark six-month premium for August declined to 128-130 paise from 130.5-132.5 paise and the far-forward February 2018 contract also slipped to 279-281 paise from 284-286 paise on Thursday. On the global commodity front, crude oil prices fell back from an overnight three-week high as cautious investors indulged in profit-booking at higher levels, though both US crude and international benchmark Brent traded well above the psychological USD 50/barrel mark.
Source: Financial Express
Foreign investors gorging on Indian stocks and bonds have put the rupee on course for its best first-quarter performance since 1975. The currency, Asia’s best performer this month, has rallied 4.7 per cent since December 31, as a thumping win for Prime Minister Narendra Modi’s party in state elections boosted bets for continuation of the government’s reform agenda, luring overseas funds. The Reserve Bank of India’s (RBI’s) intervention in currency markets may intensify if inflows rise, according to Standard Chartered Plc. “Change in sentiment toward India after the state elections and high real rates have attracted large portfolio flows into equity and debt,” said Gopikrishnan MS, Mumbai-based head of foreign exchange, rates and credit for South Asia at Standard Chartered. “Market action indicates that RBI has been intervening and we think they could continue to do so if the flows continue.” Foreign holdings of rupee-denominated government and corporate bonds climbed by Rs 35,940 crore ($5.5 billion) this quarter, with Rs 27,200 crore coming in March alone, the most for any month in Bloomberg-compiled National Securities Depository’s data going back to mid-2011. Overseas funds have poured $6.1 billion into Indian stocks since the year-end, of which $4.5 billion has come this month. The Federal Reserve's dovish tone on future rate hikes, which contributed to a weaker dollar, also burnished the allure of assets in emerging markets. The rupee climbed 0.1 per cent to 64.8850 per dollar in Mumbai on Friday, taking its gain this month to 2.8 per cent. The three-month advance is the biggest for any quarter since the period ended September 2012. The S&P BSE Sensex of shares has rallied more than 11 percent this year, set for the best quarter since the period ended June 2014. “Unlike in the past, RBI’s intervention in the currency market has not been aggressive enough this time around,” HDFC Bank economists led by Abheek Barua wrote in a report received by email this week. “The fair value of rupee has changed from around 67 to 65 currently.” The currency “could trade higher in the 65.50-66.00 range by May or so,” Gopikrishnan of Standard Chartered said. Yields on local sovereign bonds, among the highest in Asia, are another reason for foreign investors to flock to India. The 10-year yield jumped 46 basis points last month, the most since July 2013, after policy makers unexpectedly signaled an end to its monetary easing cycle. It has fallen 13 basis points this month, helped by the inflows. At 6.74 per cent on Friday, India’s 10-year government notes pay 432 basis points more than similar-maturity US Treasuries.
Source: Business Standard
The government on Friday notified a simpler, one-page form for filing income tax returns while making it mandatory to quote Aadhaar number and disclose bank deposits of more than Rs 2 lakh post demonetisation. The Income Tax Return Form-1 (Sahaj) will replace the 7-page form, removing a plethora of columns on deductions from income claimed. Sahaj can be filed by an individual having income of up to Rs 50 lakh from salary, house property and interest. Currently, SAHAJ (ITR 1) is filed by salaried employees and ITR 2 by individuals and HUFs whose income does not include income from business. The government has done away with form ITR 2A (used by individuals & HUFs not having income from business or profession and capital gains and by those who do not hold foreign assets). Sahaj makes quoting of 12-digit biometric identifier Aadhaar number mandatory along with Permanent Account Number (PAN) and also seeks details of cash in excess of Rs 2 lakh that was deposited in bank accounts in the 50-day post demonetisation window. ITR 2 and ITR 3 have a Schedule AL requiring assessees to declare their assets and liabilities at the end of the fiscal. Only 6 crore out of 29 crore persons having PAN file income tax returns at present. The e-filing facility for ITR-1 is enabled from April 1 and ITRs can be filed till the stipulated deadline of July 31. While the old ITR form too had column to quote Aadhaar, the government has through an amendment to the Income Tax Act this week made quoting it mandatory. "The Central Board of Direct Taxes has notified Income- tax Return Forms (ITR Forms) for the Assessment Year 2017-18. One of the major reforms made in the notified ITR Forms is the designing of a one page simplified ITR Form-1 (Sahaj)," CBDT said in a statement. In the new form, parts relating to tax computation and deductions have been rationalised and simplified for easy compliance. Besides personal details, an income tax filer needs to disclose only his income from salary or pension, one house property and other sources like interest. Thereafter, deduction claims are to be stated, followed by computation of taxable income. Bank details are to be filled in the column following that. Details of advance tax, self-assessment tax payments and tax deducted at source come next. In the column for providing bank details, cash deposited in excess of Rs 2 lakh during November 9 to December 30, 2016 has to be mentioned. The rationalised ITR will "reduce the compliance burden to a significant extent on the individual tax payer," the CBDT said, adding that the move would benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form. Instead of 20 columns of deductions in the old form, only four deductions claims in respect of Section 80C, 80D, 80G and 80TTA need to be filled. "Simultaneously, the number of ITR Forms have been reduced from the existing nine to seven forms. The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalised and a single ITR-2 has been notified in place of these three forms," it said. Consequently, ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively. There will be no change in the manner of filing of ITR Forms and all the returns are to be filed electronically. However, where return is furnished in ITR-1 (Sahaj) or ITR-4 (Sugam), an individual of the age of 80 years or more, an individual or HUF whose income does not exceed Rs 5 lakh and who has not claimed any refund in the return of income, have an option to file return in paper form. At the time of filing the form, the taxpayer has to fill in PAN, Aadhaar number, personal information and information on taxes paid. TDS will be auto-filled in the form. Post July 1, as per amendments to the Finance Bill 2017 as passed by the Lok Sabha, it would become mandatory for an assessee to provide the Aadhaar number or the number showing that he has applied for Aadhaar in the ITR. Also ITR 4 (filed by Individuals & HUFs having income from a proprietary business or profession) will now be known as 'Sugam' and ITR-4S will be substituted. "Going forward for AY 2017-18, the benefit of using the simplest ITR form i.E. ITR-Sahaj shall not be available to the following category of taxpayers: those earning total income of more than Rs 50 Lakh, those earning dividend income of more than Rs 10 lakh and those whose total income includes cash credits, unexplained investments, unexplained money etc," said Nangia & Co Partner Suraj Nangia. Similarly, ITR 4 (Sugam) cannot be used by the following category of taxpayers -- those earning dividend income of more than Rs 10 lakh, those whose total income includes cash credits, unexplained investments, unexplained money etc. "Owing to the aforesaid changes, taxpayers earning income for these sources will have to file a more detailed form containing disclosure in respect of their assets and liabilities, bank accounts etc," Nangia said.
Source: Business Standard
The growth of eight core sectors slipped to over one-year low of 1% in February mainly due to decline in output of crude oil, natural gas, refinery products, fertilisers and cement. The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 9.4% in February 2016. The previous low of 0.9% was recorded in December 2015. In January 2017, these sectors grew by 3.4%. The core sectors, which contribute 38% to the total industrial production, expanded 4.4% in April-February this fiscal compared to 3.5% growth in the same period previous financial year, according to the data released by the commerce and industry ministry today. Commenting on the data, rating agency ICRA said: "We expect the IIP to post a subdued volume growth in February 2017." However, coal and steel recorded positive growth during the month. The output of crude oil, natural gas, refinery products, fertilisers and cement contracted by 3.4%, 1.7%, 2.3%, 5.3% and 15.8%, respectively during the month under review.
Source: Business Line
The Bhilwara-based company has completed 23 years and has grown into a Rs 900-crore firm that makes cotton yarn in single, multi-fold slub, compact, core spun and Elitwist yarns Son of an employee at textile fabric maker LNJ Bhilwara, Dinesh Nolkha grew up listening to stories about clothing and textile mills. A chartered accountant by education, Nolkha wanted to create something of his own. In 1993, 22-year-old Nolkha decided to become an entrepreneur in a family of service men. “I decided to pursue my ambition and named the company after my younger brother, Nitin,” says Nolkha, managing director of Nitin Spinners. Brother Nitin is now executive director of the company. The Bhilwara-based company has completed 23 years and has grown into a Rs 900-crore firm that makes cotton yarn in single, multi-fold slub, compact, core spun and Elitwist yarns. Nolkha started this company with an initial investment of Rs 3 crore. “Our business saw a severe downturn in 2008 that lasted till 2012 due to derivative losses,” he recalls. “I took it as a learning experience and stopped speculating on raw-material. We have improvised our hedging strategy, which is one of the core reasons behind our fast growth,” says Nolkha. From 2011 to 2016, Nitin Spinners’ revenue growth stood at 15.67 per cent, whereas its profit (after tax) growth stood at a whopping 247.45 per cent. This clearly reflects that the company has improved its profit margins as revenue growth is less than profit growth. “Better hedging strategy, cost optimisation and happy clients are what contributes to our profitability,” says Nolkha. About 65 per cent of the company’s production is exported to over 50 countries including the US, EU, Africa, Middle East and far east. However, with growing quality consciousness among Indian consumers and their increasing spending power, the domestic market is an equally attractive business opportunity. “Till 2009, we were totally export oriented. But realising the changing demands of Indian consumer, we turned our heads towards the domestic market. It constitutes about 35 per cent to our revenues now.” Started with just 70 employees, the company today employs over 3,200 people. The office premises, however, remain the same. “There is an attachment with this place. We have seen our business expanding,” says the humble, 46-year-old Nolkha. But then, his business has always done well, he says. The compounded annual growth rate was always about 20 per cent. “We have respected the basics. The ideal to follow is to keep customers happy. No firm with satisfied customers can fail or go into losses,” asserts Nolkha. Further, the company’s exposure to foreign markets is believed to have made it future ready. “With growing mall culture in India, we are better prepared to understand the demand, and we have leveraged our learning to impress local clients here.” Born in 1970 in Bhilwara, Nolkha is a member of the Institute of Chartered Accountants of India (ICAI) and the Institute of Cost & Management Accountants of India (ICMA). He was ranked 4th on all-India basis in ICMA final exams in 1991 and 43rd in ICAI final exams in 1992. Nolkha was always good in studies, and now he has proved his mettle in business too. Nitin Spinners has been awarded the Texprocil Silver trophy for second highest exports in the category of grey fabrics for 2006-07 and 2007-08 and the Bronze for 2010-11, 2014-15 and 2015-16. The government of Rajasthan has also awarded the company with the State award for excellence in exports for 2007-08, 2010-11 and 2013-14.
Source: Business World
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1131.86 |
USD/Ton |
-0.64% |
3/30/2017 |
|
VSF |
2495.89 |
USD/Ton |
-0.29% |
3/30/2017 |
|
ASF |
2220.18 |
USD/Ton |
0% |
3/30/2017 |
|
Polyester POY |
1151.45 |
USD/Ton |
-0.19% |
3/30/2017 |
|
Nylon FDY |
3337.53 |
USD/Ton |
0% |
3/30/2017 |
|
40D Spandex |
5296.52 |
USD/Ton |
0% |
3/30/2017 |
|
Polyester DTY |
2394.32 |
USD/Ton |
0% |
3/30/2017 |
|
Nylon POY |
1407.57 |
USD/Ton |
0% |
3/30/2017 |
|
Acrylic Top 3D |
3656.77 |
USD/Ton |
0% |
3/30/2017 |
|
Polyester FDY |
5818.91 |
USD/Ton |
0% |
3/30/2017 |
|
Nylon DTY |
1407.57 |
USD/Ton |
0% |
3/30/2017 |
|
Viscose Long Filament |
3148.89 |
USD/Ton |
0% |
3/30/2017 |
|
30S Spun Rayon Yarn |
3047.31 |
USD/Ton |
-0.47% |
3/30/2017 |
|
32S Polyester Yarn |
1734.06 |
USD/Ton |
-0.33% |
3/30/2017 |
|
45S T/C Yarn |
2699.05 |
USD/Ton |
0% |
3/30/2017 |
|
40S Rayon Yarn |
2321.76 |
USD/Ton |
0% |
3/30/2017 |
|
T/R Yarn 65/35 32S |
1915.45 |
USD/Ton |
0% |
3/30/2017 |
|
45S Polyester Yarn |
2263.72 |
USD/Ton |
0% |
3/30/2017 |
|
T/C Yarn 65/35 32S |
3206.93 |
USD/Ton |
-0.90% |
3/30/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
3/30/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
3/30/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
3/30/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
3/30/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
3/30/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14511 USD dtd. 31/3/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The European Union offered Britain talks this year on a future free trade pact but made clear in negotiating guidelines issued on Friday that London must first agree to EU demands on the terms of Brexit. Those include paying tens of billions of euros and giving residence rights to some 3 million EU citizens in Britain, the proposed negotiating objectives distributed by EU summit chair Donald Tusk to Britain's 27 EU partners showed. The document, seen by Reuters, also sets tough conditions for any transition period, insisting Britain must accept many EU rules after any such partial withdrawal. It also spelled out EU resistance to Britain scrapping swathes of tax, environmental and labor laws if it wants to have an eventual free trade pact. The guidelines, which may be revised before the EU27 leaders endorse them at a summit on April 29, came two days after Prime Minister Theresa May triggered a two-year countdown to Britain's withdrawal in a letter to Tusk that included a request for a rapid start to negotiations on a post-Brexit free trade deal. "Once, and only once we have achieved sufficient progress on the withdrawal, can we discuss the framework for our future relationship," Tusk told reporters in Malta -- a compromise between EU hardliners who want no trade talks until the full Brexit deal is agreed and British calls for an immediate start. "Starting parallel talks on all issues at the same time, as suggested by some in the UK, will not happen," Tusk said, while adding that the EU could assess as early as this autumn that Britain had made "sufficient progress" on the exit terms in order to open the second phase of negotiations, on future trade. Brussels has estimated that Britain might owe it something of the order of 60 billion euros on departure, although it says the actual number cannot be calculated until it actually leaves. What it does want is to agree the methodology of how to work out the "Brexit bill", taking into account Britain's share of EU assets and liabilities. Britain disputes the figure but May said on Wednesday that London would meet its "obligations". Her spokesman responded to Tusk on Friday by saying: "It is clear both sides wish to approach these talks constructively, and as the prime minister said this week, wish to ensure a deep and special partnership between the UK and the European Union." The Union's opening gambit in what Tusk said would at times be a "confrontational" negotiation with May's government also rammed home Brussels' insistence that while it was open to letting Britain retain some rights in the EU during a transition after 2019, it would do so only on its own terms. Britain would have to go on accepting EU rules, such as free migration, pay budget contributions and submit to oversight by the European Court of Justice -- all things that drove last June's referendum vote to leave and elements which May would like to show she has delivered on before an election in 2020. Existing "regulatory, budgetary, supervisory and enforcement instruments and structures" would apply after Brexit, Tusk's draft guidelines stated in reference to a transition period that diplomats expect could last two to five years beyond 2019.
"NO DUMPING"
It also stressed that a future trade pact, allowing for not just low or zero tariffs on goods but also regulatory alignment to promote trade in services, should not allow Britain to pick and choose which economic sectors to open up. That would prevent London giving undue subsidies or slashing taxes or regulations -- "fiscal, social and environmental dumping", in EU parlance. The negotiations will be among the most complex diplomatic talks ever undertaken, and the EU guidelines are only an opening bid. EU officials believe they have the upper hand in view of Britain's dependence on exports to the continent, while British diplomats see possibilities to exploit EU states' differences. Tusk and Maltese Prime Minister Joseph Muscat, who holds the Union's rotating presidency, warned against such efforts and insisted the EU would negotiate "as one", through their chief negotiator, former French foreign minister Michel Barnier. He expects to start full negotiations in early June. In a move to avoid long-running disputes between Britain and Spain over Gibraltar holding up an orderly exit, Tusk proposed that Madrid should have a veto over the future application of any EU-U.K. treaty to the territory -- but only after Brexit. Tusk spelled out priorities for the withdrawal treaty, which Barnier hopes can be settled by November 2018, in time for parliamentary ratification by Brexit Day on March 29, 2019:
- the EU wants "reciprocal" and legal "enforceable" guarantees for all EU citizens who find their rights to live in Britain affected after a cutoff on the date of withdrawal
- businesses must not face a "legal vacuum" on Brexit
- Britain should settle bills, including "contingent liabilities" to the EU
- agreement on border arrangements, especially on the new EU-U.K. land border in Ireland, as well as those of British military bases on EU member Cyprus.
Source: Business Standard
President Donald Trump will order on Friday a comprehensive study to identify every form of “trade abuse” that contributes to US deficits with foreign countries, Commerce Secretary Wilbur Ross said. Trump also will take steps to toughen enforcement of trade penalties just a day after announcing the date for a meeting with Chinese President Xi Jinping, leader of the country Trump has blamed most frequently for trade deficits and job losses. Ross said the two executive actions weren’t intended as a warning to China. The trade study, to be completed within 90 days, will examine deficits “country by country and product by product” to assess the extent they are caused by “cheating or inappropriate behaviour,” Ross said. He said the findings, which also will cover currency misalignments and "constraints" imposed by the World Trade Organization, will help guide Trump’s trade policies. Trump also will announce Friday an order to strengthen enforcement of existing countervailing duties and anti-dumping penalties against foreign products to address under-collection, said Peter Navarro, director of the White House National Trade Council. Anti-dumping penalties target exporters that sell goods below the cost of production and countervailing duties are intended to compensate for foreign-government subsidies to producers. Navarro said such duties have been under-collected by a cumulative $2.8 billion since 2001. Last year, the nation collected $1.5 billion in the penalties, he said. Trump made addressing what he called unfair foreign trade practices a centerpiece of his presidential campaign. One of Trump’s first acts as president was to withdraw from the Trans-Pacific Partnership trade deal his predecessor negotiated. Yet key promises such as renegotiating Nafta, imposing border taxes on companies that move production overseas and labelling China a currency manipulator remained unfulfilled. Trump sent out a tweet Thursday evening suggesting he remains irritated with China over trade. “The meeting next week with China will be a very difficult one in that we can no longer have massive trade deficits and job losses,” Trump said via his Twitter account. “American companies must be prepared to look at other alternatives.” China is the biggest US trade partner, as well as the nation running up the biggest deficit in trade of goods — $347 billion in 2016, almost half of the US total. But China also is among the top three export markets for 33 states. At a White House briefing for reporters previewing Friday’s actions that began barely 15 minutes after Trump’s tweets on China, Navarro dismissed questions about whether the orders should be read as a warning to the nation. “Nothing we’re saying tonight is about China,” Navarro said at a Thursday evening briefing. “Let’s not make this a story about China. This is a story about trade abuses.” Navarro said the administration will seek better collection of duties imposed as trade penalties by directing the secretary of Homeland Security to work with the US Trade Representative and Commerce Department to impose bonding requirements and take other legal actions based on risk assessments. Another goal is to step up the seizure of counterfeit and pirated goods, Navarro said. The White House on Thursday also distanced itself from a document suggesting it was softening its goals for a renegotiation of Nafta. A letter sent to key members of Congress as part of a consultation process required before triggering a renegotiation suggested the administration would seek more modest changes and would leave in place controversial pieces of the trade deal, including an arbitration panel that lets investors bypass the court system to redress claims under the pact. White House press secretary Sean Spicer on Thursday said the letter “is not an accurate statement of where we are at this time.”
TOUGH ON TRADE
The US President Donald Trump will take steps to toughen enforcement of trade penalties The study will examine deficits “country by country and product by product” to assess the extent they are caused by “cheating or inappropriate behaviour” Commerce Secretary Wilbur Ross said the findings, constraints imposed by the WTO, will help guide Trump’s trade policies Anti-dumping penalties target exporters who sell goods below the cost of production & strengthen countervailing duties
Source: Business Standard
It is very important that there should be right to form trade unions, hold collective bargaining and right to organise trade union, according to Lietz European Union wants that a common standard be maintained to ensure equal rights for workers employed in the country’s Export Processing Zones (EPZs) and beyond. Arne Lietz, a member of the European Parliament and head of visiting EU parliamentary delegation, came up with the call at a press conference after a meeting with the Bangladesh Garment Manufactures and Exporters (BGMEA) in the capital on Monday. The delegation is on a fact-finding mission and it is a follow-up visit of the members that took place last year. “There are different issues on the table that need to be aligned. We have to have same standard, said Arne Lietz. It all about the citizen, the citizen should have same rights. They should have rights of union, rights to be educated and gender equality in all fields, said Lietz. And therefore, the EPZs have to acknowledge that the framework is much bigger and important to translate the result into reality, said the delegation head. In line with the EPZ Act, workers at EPZs factory practice labour rights issue under Workers Welfare Association (WWA).The workers rights groups and global buyers are also demanding direct trade union outside of EPZs. It is very important that there should be right to form trade unions, hold collective bargaining and right to organise trade union, according to Lietz. “So we are welcoming more workers to participate in union to stabilise themselves,” said the EU parliament member. He also said: “Our business model in EU relies on strong labour unions.” The EU Commission also called for an amendment to the 2013 Labour Act to address the issues relating to freedom of association and collective bargaining, investigating acts of anti-union discrimination and imposing fine or criminal sanctions. The workers rights of trade union came under the spotlight following the labour unrest at Ashulia in Savar last December. The incident raised a question over workers rights as the owners fired workers following the incident. “We have broadly and openly discussed labour rights issues especially in the Export Processing Zones (EPZs) in the meeting,” said BGMEA president Siddiqur Rahman. “I hope we have been able to make them understand where the RMG sector was before the Rana Plaza incident and where it is now in terms of workers rights and safety.” The delegation has expressed satisfaction over the progress, the BGMEA leader claimed. “To protect the RMG industry, we will have to do something and I will not say that a lot of good works have already been done,” he said. “The delegation also called for steps to make the trade union registration process easy, stop abuse of workers and amend Labour Act,” BGMEA vice-president Mahmud Hasan Khan Babu told the Dhaka Tribune. In response to their call, BGMEA told the delegates that it wants to introduce sectoral trade union in RMG sector to ensure transparency. The clothing manufacturers and exporters association also demanded an explanation of abuse as there is no harassment in the factory now. According to the Export Promotion Bureau (EPB), Bangladesh’s export to EU countries stood at $18.68 billion in the last fiscal year, which is 54.57% of the total export of $34.24 billion. Of the total amount, $17.15 billion came from the apparel products, which is about 62% of the total RMG export of $28 billion.
Source: Dhaka Tribune.
The company reported a 3.4% drop in net profit in the December to February period Swedish clothing giant Hennes and Mauritz (H&M) on Thursday announced the launch of its eighth fashion brand as tough market conditions in the US and Central Europe hurt profits. The company reported a 3.4% drop in net profit in the December to February period, the first quarter of the company’s financial year, due to the combination of a slower than expected rise in revenues and seasonal discounts. “To meet the rapid change that is going on in fashion retail we need to be even faster and more flexible in our work processes, for example as regards buying and allocation of our assortment,” CEO Karl-Johan Persson said in a statement. H&M posted a net profit of 2.45bn kronor (256m euros, $275m), while turnover was up eight percent to 46.98bn in the same period. Sales increased by four percent in local currencies, but the group has a target of 10 to 15% per year. “For fashion retail in general, market conditions were very tough in many of our large markets in central and southern Europe and in the US, and this was reflected in our sales,” Persson said. H&M’s share price dropped in response to the announcement, falling by 5.7% on the Stockholm stock exchange, vastly underperforming an overall market down just 0.8%.
Source: Dhaka Tribune.
LONDON--(BUSINESS WIRE)-- Although the European textiles and apparel market is experiencing a downward trend in the recent year, many major European textiles and apparel players still hold their strong positions in the global market. Details on several major textile and apparel markets in Europe, including Italy, France, and Spain are some of this week’s featured stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to discover high quality leads, contact prospects, and source quotes. Register today to connect with over seven million companies around the globe. Italian Apparel Industry Aiming to Strengthen Its Global Position The Italian apparel industry has a well-established reputation for its premium fashion products in the global market. The total value of Italy’s apparel market was estimated at USD 36.6 billion in 2016, and is expected to reach roughly USD 42 billion by 2020. After the consecutive years of decline in its domestic market due to the country’s economic downturn, the Italian government recently announced a budget allocation of €35 million to promote the country’s fashion and apparel industry as well as fashion exports in the international market. Fashion and Apparel Industry in France Remains Strong. The fashion and apparel industry in France is now valued at approximately €150 billion, or 2.7 percent of France’s GDP. The fashion industry in France has faced multiple challenges recently, such as economic downturn and several terrorist attacks, which have led to reduced domestic and tourist spending. Although the domestic market for the French fashion industry is shrinking, the sales of French fashion products, especially luxury fashion items, still remain high in the global markets, particularly in emerging markets such as China and Japan. Spanish Textiles and Apparel Industry Welcomes Much-Needed Recovery the Spanish textile industry is finally recovering as the number of textile firms stopped falling for the first time in nearly a decade, raising the country’s textile exports total by 7%. This recovery is largely due to the success of ‘fast fashion’ and the country’s economic rebound. Almost 4,000 textile firms currently remain in Spain; this number is expected to remain stable for at least the next year. These surviving firms are focusing heavily on exports, which has helped create new business opportunities and markets for Spain to export their textiles and Spanish fabric. BizVibe is home to 150,000+ apparel and textile companies across 200+ countries, covering all sectors. The BizVibe platform allows you to discover the highest quality leads and make meaningful connections in real time. Claim your company profile for free and let the business come to you.
About BizVibe
BizVibe is home to over seven million company profiles across 700+ industries. The single-minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.
Source: Yahoo Finance
Batik which is recognized as a World Cultural Heritage by the UNESCO and manufactured by using a technique of wax-resist dyeing applied to cloth. There are numerous countries as well as some regions in Indonesia that manufacture batik but the most famous batik originates from the island of Java (The New York Times) - Textile producers in Central Java are keen to expand their export market to the Middle East, the Indonesian Textile Association (API) in Central Java stated. "We already have a good demand for our exports from the Middle East countries. However, so far, they have yet to become the main export market for the Central Java textile products," chairman of API Central Java Agung Wahono said here, Friday. Currently, the regions main textile export market are the United States, China and Japan, which have higher export value compared to other commodities. A data of the Central Bureau of Statistics (BPS) showed that Central Javas textile and textile products export in February 2017 had reached US$181.86 million. Export value of other products such as wood and wood products during the period amounted to US$77.87 million and the value of manufactured products reached US$56.09 million. Export to Turkey and Egypt contributed the highest value compared to other Middle East countries. Export to Turkey in February reached US$8.08 million or some 1.96 percent of the total export from Central Java. Export to Egypt amounted to US$5.16 million during the same period, or some 1.21 percent of the provinces total export. "We have understood the demand trend in the Middle East countries. We hope that better trade relations with Middle East countries will enhance our export to the region," he said.
Source: Netralnews
Southwest cotton acreage responds to better prices, compared to other commodities, as well as recent good yields. Recent improvements in cotton prices, limited opportunity to make a profit with other commodities, and memories of good to excellent yields from 2016 still fresh in their minds are factors supporting Southwest producers’ decisions to increase cotton acreage for 2017. The gloomy outlook for wheat could be a big factor as producers who planted wheat last fall may opt to terminate the crop, graze it or abandon it and plant cotton. “There will be a lot of wheat going to cotton,” says Randy Boman, Oklahoma State University Extension state cotton lead, Altus, Okla. Oklahoma cotton farmers produced record yields last year, the second year in a row with better than average production. The recent surge in cotton prices, to the mid 70 cents a pound range, also makes cotton more promising than grain sorghum or other summer crop options. “I bet 450,000 acres of cotton in Oklahoma will be close,” Boman says. “Some are thinking 500,000.” Texas acreage will rise, too, up from estimates as late as January 2017. “The cotton acreage increase is somewhat dependent on the region within the state and the crops grown within the rotation with cotton,” says Gaylon Morgan, Texas A&M AgriLife Extension state cotton specialist, College Station. “There was not much appetite for wheat in the fall of 2016 or sorghum in spring of 2017, so, this is where cotton will pick up most of its acres.” Morgan says his “best guesstimates” on acreage increases is “based on feedback from colleagues across the Rolling Plains, East and South Texas.” Morgan’s estimates are: Rolling Plains acreage increase will range from 20 percent to 30 percent across the Northern, Central, and Southern Rolling Plains. “I think 25 percent is a good estimate. Blacklands: Expect a range of 20 percent to 25 percent; Coastal Bend and Upper Gulf Coast: Likely range is 10 percent to 15 percent with 15 percent more likely; Rio Grande Valley: “I anticipate about a 35 percent increase from the low of 130,000 acres in 2016 to about 180,000 in 2017. Seth Byrd, AgriLife assistant professor and Extension cotton specialist in Lubbock, expects a significant jump in High Plains cotton acreage. “These are my estimates from what I’ve heard: The High Plains total planted acres will be around 4 to 4.2 million acres, a 14 percent to 20 percent increase from 2016. While the big chunk of the acres will continue to be in the Southern High Plains, the Northern High Plains/Panhandle will probably see the biggest jump in terms of percent increase in acres from 2016.” Latest USDA estimate shows an increase of 1.2 million acres in Texas, a 22 percent jump over last year.
Source: Southwest Farm Press
The US economy showed rigourous consumer spending in the fourth quarter and slowed less than was previously reported. GDP increased to an annualised 2.1 percent up from previous estimate of 1.9 percent. The Commerce Department said that business activity moderated further at the beginning of the year. The economy’s sluggish performance poses a challenge to President Donald Trump. He vowed to boost annual economic growth to 4 percent by slashing taxes, increasing infrastructure spending and cutting regulations.
Source: WSJ
Activity at China’s factories expanded for a ninth straight month in March but at a softer pace as new export orders slowed, a private survey showed, raising questions about whether a recent pickup in global demand is losing steam. The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) fell to 51.2 in March, missing economist forecasts’ of 51.6 and down from February’s 51.7. While the index was still well above the 50.0 mark which separates expansion from contraction on a monthly basis, the rates of growth in output, total new orders, input and output prices all slipped in March from the previous month. Growth in export orders slowed sharply, falling to a three-month low of 51.9 from 53.8 in February. The findings contrast with those of China’s official factory survey on Friday, which showed activity grew the fastest in nearly 5 years in March. It also showed orders improved from home and abroad. But the Caixin/Markit survey tends to focus more on small and mid-sized manufacturers, which may be benefiting less from a months-long construction boom than big industrials such as steel mills. A sub-index of the official survey had showed small companies were still struggling, though conditions were slowly improving. The private survey is also believed to be more reflective of export-oriented firms. CLOUDY EXPORT OUTLOOK While China and other North Asian exporters have seen a strong rebound in shipments in recent months both in value and volume terms, the outlook is being clouded by fears of growing U.S. trade protectionism under President Donald Trump. The Trump administration on Friday slammed China again on a range of trade issues from its chronic industrial overcapacity to forced technology transfers and long-standing bans on U.S. beef and electronic payment services. China’s manufacturing sector has been enjoying its best profits in years as a booming housing market and government infrastructure spending boosted construction. But economists worry that fresh curbs on the heated property market and tighter credit conditions, coupled wit uncertainties about global trade, may intensify pressure on the world’s second-economy later in the year. “Overall, the Chinese manufacturing economy continued to improve, but signs of a weakening have started to emerge ahead of the second quarter. Downward pressure may further increase,” said Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group. The survey showed manufacturers continued to shed staff, and at a slightly quicker pace than the previous month, but the employment outlook remained relatively positive as it was the second-weakest seen in just over two years. On the brighter side, the pace of inventory reduction quickened in March with stocks of purchases and stocks of finished goods both falling into contractionary territory. An industry survey on Friday showed that China’s steel inventory by March 31 was almost 30 percent higher than the same time last year, igniting worries that steelmakers would soon face large destocking pressures.
Source: China’s factory survey
The EU has unveiled its plans for negotiating the big Brexit, after the UK formally filed for a divorce. They show the bloc is ready to talk to Britain about a free trade deal, before both sides agree final terms of the split. But it would be part of a phased approach, dependent on London showing “sufficient progress” in a first round of talks focused on issues including the payment of tens of billions of euros and giving residency rights to some three million EU citizens in Britain. The “document”:http://www.telegraph.co.uk/news/2017/03/31/full-eus-draft-guidelines-brexit-negotiations/ is also understood to set tough conditions for any transition period, insisting Britain must accept many EU rules after any such partial withdrawal. It also spells out EU resistance to Britain scrapping swathes of tax, environmental and labour laws – if it wants to have an eventual free trade pact.
Source: Telegraph.co.uk
Ethiopia has extended the nationwide state of emergency declared last year by another four months on Thursday after lifting some restrictions two weeks ago. The country’s parliament unanimously voted for the extension after the State of Emergency Secretariat’s request, Ethiopian state media FBC reported. Defence Minister Siraj Fegessa who heads the Secretariat explained that the existence of people who want to disrupt peace and security as well as the need to end any future insecurity called for the extension, FBC added. On March 15, Fegessa announced the lifting of some restrictions under the state of emergency including ending powers granted to security services, powers to stop and search suspects and powers to search homes without court authorisation. There was also a revocation of the dusk-to-dawn curfew on access to economic installations, some infrastructure and factories for unauthorised people. The parliament advised against human rights violations during the state of emergency. Ethiopia declared a state of emergency on October 9 last year to curb violent unrest leading to damage of properties including those of local and international businesses. Before the State of Emergency was imposed, over 50 people died on October 2 in a stampede at a festival in Bishoftu after police fired teargas and warning shots to disperse protesters at the event. At least 500 people have been killed and thousands arrested in the wave of anti-government protests in the Amhara and Oromia regions over the past months. International bodies including the United Nations and the European Union have called on the Ethiopian government to exercise restraint against protesters.
Source: The Business Ethiopia
IT TAKES at least a month to wash, comb, spin and otherwise prepare fine mohair to become cloth that is stitched into suits by Ermenegildo Zegna, a 107-year-old Italian brand. In Trivero, an Alpine village west of Milan, 150 artisans in an elegant factory work at carding, dying, weaving and warping. As looms rattle, bespectacled women stretch cloth over illuminated screens and check for imperfections. Others use a rack crammed with dried Spanish thistles to remove excess hair from fabric. Zegna, run by its fourth generation of family owners, is distinctive in many ways. Big corporate successes are rare in Italy, which tends to nurture smaller firms. Sales from Zegna’s 500-odd shops worldwide, plus earnings from selling to other producers, amount to an annual €1.2bn ($1.3bn) or so. It controls its entire supply chain, which is unusual even in an industry that cherishes raw materials. Three years ago it bought a 6,300-acre farm with 10,000 sheep in Australia. A spokeswoman brags that vertical integration at Zegna runs “from sheep to shop”. The company is also unusual because it has stayed independent of the few swaggering giants that bestride the luxury-goods world, of which the biggest is LVMH, Bernard Arnault’s 30-year-old conglomerate; it incorporates Louis Vuitton, Dior and many other brands. Other groups include Kering, also based in Paris and the owner of Gucci, and Richemont, a Swiss specialist in watches and jewellery. (The luxury sector is also replete with minnows, of course—single brands with revenues of just a few hundred million euros, such as Versace and Missoni.) But in other ways, Zegna is typical of the luxury business. European manufacturers dominate this €250bn industry, accounting for around 70% of production. And Zegna’s past growth and present challenges are shared by firms of all sizes. Luxury firms have prospered in the past by forging into new markets: first Japan, then America, then China, notes Armando Branchini of the European luxury-brands association in Milan. Jean-Christophe Babin, the boss of Bulgari, an Italian jeweller, says it was the spread of high-end, beautiful malls in Asia that did most for growth. In particular, status-hungry Chinese consumers propelled luxury’s recent long expansion. Olivier Abtan of the Boston Consulting Group in Paris describes ever-richer Chinese consumers, with an utter “lack of inhibition” in displaying their wealth, as the best possible boost that the luxury industry could imagine. The boss of one of the conglomerates recalls how difficult it was to balance rapid expansion of his brands against losing a perception of exclusivity. He resolved the dilemma by taking the theory of the “Veblen good”—one for which demand soars as it becomes more expensive—to an extreme, slapping ever-larger price tags on the firm’s posh handbags and other items. This Chinese boom is over. In the past four years Xi Jinping, China’s authoritarian leader, has cracked down on political rivals suspected of corruption, discouraged ostentatious displays of wealth and turned Chinese tourists off shopping abroad by levying heavier duties on those who return with armfuls of Hermès bags. Worse, because it could be a permanent shift, firms report changing tastes among Chinese consumers. They have been shunning big, shiny logos and—like Western shoppers—are now mixing cheap fast-fashion items with fewer luxury pieces. Last year, estimates suggest, China’s huge luxury market shrank (see chart). Solid economic growth in America in the past few years has helped sustain sales: stockmarkets and appetite for luxury goods reliably rise in step. Some retailers do report a recent uptick in Chinese demand over the past six months. Yet no one expects a return to the glory days. Terrorist attacks in Europe, slower growth in air traffic and lower spending in the region’s airports are also hurting luxury sales. The watch business has been particularly hard hit. In Milan the chairman of a famous Italian fashion brand warns of saturated markets. Adding new shops in China is not viable, he says, when “you already have 200 retailers selling every sort of luxury item”. He expects this year to be much like 2016—flat. Mr Abtan foresees years of modest global growth, perhaps of around 3%. A spokesman at Gucci says that the overall market is growing at “perhaps 1-2%, so the pie is not getting bigger”. The challenge at Gucci, he adds, is to achieve more “sales density” from existing shops. Which kind of firm is best placed to deal with slower growth: giants, minnows or medium-sized firms like Zegna? The advantages of being a conglomerate in luxury include having more muscle to secure brands favoured spots and lower rents inside shopping malls. Luxury groups can also multiply the effect of their marketing and share back-office services. A new argument for independent firms such as Hermès or Prada to join the big groups is the imperative to go digital. Luxury firms were slow to adopt sophisticated digital strategies so long as the going was easy. Only 8% of total personal luxury-goods sales take place online, compared with 16% for the rest of retail (excluding items such as petrol and groceries). But now the industry wants that to change. Michele Norsa, a former boss of Salvatore Ferragamo, an Italian maker of shoes, notes that new online habits are being led by young consumers who account for a growing share of luxury spending. Online markets have appeared for second-hand sales; fancy frocks can be hired for a few nights from websites such as Rent the Runway. The big firms are thinking of how to profit from such new markets—something that small firms might struggle to do. An Italian lawyer who has been involved in several big deals in the luxury sector expects more consolidation, and not only because the industry is slowing. In the online world, firms especially crave fine-grained data about the most attractive customers—for example, on the “super spenders”, the minority of the ultra-wealthy who account for an outsized share of total spending. Until now, brands within groups have jealously guarded customer information from each other. But conglomerates may start sharing. Next month LVMH will launch a common digital platform for its brands that will yield new sorts of data. It will compete with rival luxury sites such as Net-a-Porter, and promote the idea of “omnichannel” shopping (combining online and in-store purchases). A decade ago established brands “didn’t see online platforms as even compatible with luxury products,” says José Neves, the founder of Farfetch, an online seller of luxury goods. Now they see that having their own online presence is essential, he says. Mr Abtan of BCG says the big groups are probably best placed to go down such digital avenues. They can invest and buy expertise to push traffic from websites to shops. Firms of Zegna’s size also need to bring in skills and should be able to afford it. But the minnows may struggle. The next challenge for luxury-goods firms will be about more than controlling supply chains and colonising posh malls. They will have to understand as much as they can about consumers and their digital habits. From “sheep to screen” will soon matter at least as much as “sheep to shop”.
SOURCE: Ecomonist
