SURAT: Powerloom weavers in Pandesara and Ved Road industrial areas will be able to procure yarn-raw material for the polyester fabric-at concessional rates with the ministry of textiles increasing the corpus fund for India's first yarn banks in the city from Rs 1 crore to Rs 2 crore. At the recently announced Power Tex India — a central government package scheme for powerloom sector — the corpus fund for the yarn banks in Surat has been increased to Rs 2 crore each and bank guarantee reduced from 50 per cent to 25 per cent. Two years ago, the central government had sanctioned two yarn banks in the powerloom clusters of Ved Road and Pandesara, country's largest man-made fabric (MMF) centre. The ministry of textiles had formed two special purpose vehicles, Ved Road Art Silk Small Scale Co-operative Federation and Pandesara Weavers Co-operative Society for setting up of the yarn banks. These banks were started with an initial corpus fund of Rs 1 crore for purchasing yarn from open market and selling at concessional rates to their initial 1,000-member weavers. The yarn banks provide an opportunity to the weavers to arrest the price fluctuations and check the presence of middlemen. The yarn banks allow the weavers to procure yarn on credit and repay the amount in instalments. Surat has around 5.5 lakh powerloom machines which produce three crore meters of fabrics every day and employ around seven lakh workers. An official of Ved Road Art Silk Small Scale Co-operative Federation said there were more than one lakh weavers in Ved Road and Pandesara clusters and that the yarn bank is able to cater to only 100 units initially. The yarn is procured from frontline spinners in bulk quantity at concessional rates. The yarn bank serves twin purposes. Firstly, it gets yarn samples from around the world and store them. The domestic industry can get access to yarn samples of global standards and do further research and come out with innovative products. Second is the price benefit. Pandesara Weavers Cooperative Society president Ashish Gujarati told TOI, "We are happy that the corpus fund at the yarn bank has been increased from Rs1 crore to Rs2 crore. We were able to cater to only 100 weavers at the bank, now around 200 will be able to get assistance. We have demanded that the corpus fund be increased to Rs15 crore."
Source: Times of India
Surat: The country's largest man-made fabric (MMF) wholesale market in Surat is hit hard following the indefinite strike called by truck owners in south India to protest mainly the proposed 50% hike in the third party insurance premium. Industry sources said that south India is the big market for saris and dress material with the daily supply to the tune of over Rs 30 crore. Out of the total four crore meters of fabric production in the city, around 25% is meant for the supplies to South India markets including Chennai, Andhra Pradesh and Telengana. "Lorries are not going to southern states from the city. Trucks which have national permit have been diverted. All south India bound trucks and lorries have stopped. And there is no movement from south India also," said president of Federation of Surat Textile Traders Association (FOSTTA), Manoj Agarwal. Agarwal added, "South India is the big market for the textile traders. We have been sending around Rs 35 crore worth of textile goods to south India states per day. The truckers' strike has affected the business of the traders here." President of Surat Textile Goods Transporters Association (STGTA), Yuvraj Deshle said, "We can't take risk by accepting the delivery of textile goods towards the south India states. The truckers' strike has entered into its third day and it is going to continue till their demands are not met. We have stopped taking bookings for south India."
Source: The Times of India
The Goods and Service Tax (GST) will bring a paradigm shift in indirect taxation regime thereby auguring an era where transparency in tax compliance will lead to the improved revenue to the Exchequer leading to overall growth of the economy. Indian textile Industry the second largest industrial sector after Agriculturein terms of employment generation and is a priority sector identified by our Hon’ble Prime Minister since textile industry plays a very important role in the development of Indian economy with respect to GDP. On one side its organized sector consists of large scale Fibre Yarns@fabyarns.in apparel and garment manufacturers which implement modern state of art machinery and techniques on the other side its unorganized or decentralized sector representing about 76% of textile production consists of smaller units.Apart from this hundreds of thousands of textile traders spread across the country. To bring this gigantic number of units made up of production units and traders into making them tax compliant is a mammoth task. In case it is not successful it could prove to be detrimental to the organized sector which has invested huge amounts of money and could bring additional flow of investment to a halt. It may be recalled that the textile industry which was flourishing till 1980s was brought to its knees by the unorganized sector which is due to the nature of small composition of units. They do not come under the ambit of labour laws like Provide Fund and Employees State Insurance Schemes meant for the benefit of the employees and also evade taxes. As a result hundreds of composite mills closed down in 1980s as most of the unorganized sector was concentrated in powerloom and fabric finishing sector who by their very nature of being small in size could get away without being tax compliant. Another big challenge is the long-value chain of the textile industry of which about 90% is in the unorganized sector. This could prove to be the biggest challenge as most of the small weaving units may have a turnover below the threshold limit and there is a serious possibility of the VAT chain being broken. The absence of fibre-neutrality in India is also posing a threat to Indian synthetic textile industry. Depending on how the GST is structured it is likely to treat all fibres in the same way whether cotton based or based on man-made fibres. There will thus be adjustments within the textile sector even if the overall textile sector demand does not get affected by the transition to GST rate. The cotton textile industry presently has a lower effective tax rate as compared to the synthetic textile industry. The uniform GST rate is therefore likely to lead to higher increase in prices of cotton textiles as compared to synthetic textiles. As a result cotton textile manufacturers can be expected to increase blending of synthetic fibres with cotton fibres. The cotton synthetic fibre mix is at present 60:40 in India whereas world over it is 40:60. The Government needs to bring fibre-neutrality so that this ratio is at par with the world. As CGST and SGST rates are likely to be higher than the current textile sector rate this will result in the higher revenue to the Central and State Government and textile prices will increase. This will adversely affect demand for textile products. Our estimates based on time series on private final consumption expenditure on clothing shows that demand elasticity with respect to implicit price deflator or of clothing relating to implicit price deflator of all goods is low. Therefore the magnitude of effect will be low. This will be further mitigated because estimates indicate that GST will have an overall positive income effect which will improve the demand for clothing and thus create positive impact for textile sector. Supply chain of Textile Industry is loaded with input and output across state boundaries to reach the ultimate consumer. Octroi and Entry Tax are the bottlenecks credit of which is not allowable thus form the part of the cost. Subsume of Octroi Entry Tax etc into GST will remove the cascading effect at the distribution stage. The textile industry is characterized by larte inter-state movements both in respect of inputs and finished products. It also draws inputs from many other sectors consisting of both goods and services including dyes and chemicals petroleum products and transport services. There is a large inter-face between organized and un-organized sectors. Given the inter-state and inter-industry movement of goods and services and interdependence of organized and unorganized sectors in the textile industry GST will have significant effects on the growth and productivity of the textile sector. Looking to above the entire textile value chain right from the raw material stage to the stage of garmenting to be brought
Source: Tecoya Trend
The 12th Edition of Fibres & Yarns will open its doors to trade visitors in Mumbai from 6th to 8th April 2017 at the World Trade Centre in Mumbai. The forthcoming edition has received overwhelming exhibitor response which has resulted in opening up of a new hall at the exhibition. The fair will now be held in 2 Halls of World Trade Centre. The New Hall (Hall Number 2) will have exhibitors from overseas particularly China. The repeat exhibitors at the show are nearly 95%. These repeat exhibitors who have been participating at the exhibition since its 1st edition will display their latest fibres yarns and fabric collections in Hall Number 1. It may be noted here that the Indian textile and clothing industry has tremendous potential to scale new heights in the international markets. The prime reason is not only the abundant availability of all types of fibres and yarns such cotton viscose and polyester fibres and yarns in the domestic market but the availability of all these raw materials at prices “lower” than international markets. Even today all fibres and yarns manufactured in India are available to the textile and clothing value chain as prices which are below the international markets. This price edge needs to be leveraged by the Indian value chain to expand its foot-print in the global markets. The price advantage alongwith with abundant availability is the most lethal competitive factor in favour of India. This is precisely the reason that Indian textile and clothing exports have been increasing to the international market. To make available these fibres and yarns to the downstream fabric garment and home textiles value chain leading fibre and yarn producers from Indian and abroad will unveil their latest and innovative collections at the 12th Edition of Fibres & Yarns which is scheduled to take place in Mumbai from 6th to 8th April 2017. Leading specialty fibers and yarns manufacturers from India and abroad will be display: Silver Yarn Soyabean Milk and Bamboo fibers (From China) Nylon Micro fibers Modal and Tencel Fibers Fire Retardant Viscose Hi-tech Polyester fibers and filaments for functional fabrics Pure Silk Linen and Jute Yarns. The largest collection of Fancy Yarns for woven and knit wears will also be displayed by prominent Indian and Foreign Exhibitors. The aim of the exposition is to bring different types of fiber and yarn manufacturers on one platform where weavers knitters and garment brand managers get an opportunity to have a look at the latest and specialty yarn collections for conversion into innovative fabrics and garments. It is a fact that fashion starts with the selection of the right raw materials. And in case of textile and clothing fibres and yarns are the most important raw materials which are converted into the final garment or home textiles. The forthcoming event has been scheduled at a time when the industry is planning its production prorgammes for the coming seasons ahead and the Fibers & Yarns Expo gives them an opportunity not only to see the yarns but also have the fabric samples of the displayed yarns and fibers. Sourcing of the yarns thus becomes handy for the visitors and they can commit their requirements directly to the manufacturer. It may be noted here that the demand for textile and clothing in on rise globally and India market is the forefront. Despite the upheavals which we have witnessed globally and within India the state of Indian textile and clothing industry has remained strong — and it will continue to become stronger thanks to the burgeoning domestic market. This is a reality. And there is every reason to be confident about the long-term prospects of our industry. Says Mr. Rakesh Sharma Executive Director Tecoya Infotech – organiers of Fibres & Yarns 2017 Expo: “Considering that Indian GDP will continue to remain upwards of 7% and India having the Extra hall opened at Fibres & Yarns Expo Continued from Page 1 Col 6 world’s largest population below the age of 40 years estimated at over 200 million and having above average purchasing power the business opportunities within the domestic will touch a mammoth level. The growth of our economy and the rising desires and aspirations of young Indian will ensure that the demand for textile and clothing keeps on surging year after year.” The domestic industry has to satisfy the demand of discerned Indian consumer who is scouting for clothing like stylish causal cozy and functional and make use of these demands as the lead to drive the consolidation and development of the different industry segments like fabrics designs brands and sales and service. Indian population has developed an urge to splurge. It is following consumption-centric culture. Today India is home to the ‘Worlds Youngest Population’ and textile industry is uniquely positioned to benefit from this fashion oriented Generation Next. Of the 1.15 billion population 54% of Indians are under 25 year of age. This young economically empowered population is driving increasing consumer demand. And increasing urbanization increasing income and rising aspiration for a better life especially among the lower economic strata are some of the factor reshaping the Indian consumer market. The result of this change is a new Indian consumer who is more discerning than ever ready to place his money on brand and quality and eager to explore the organized retail market. With nearly 40% of the merchandise at the 400+ Indian malls and millions of retail stores are apparel and home textiles the opportunities are more than brighter for the Indian textile and clothing industry. This clearly indicates that India textile industry is expected to see strong demand and continued growth in years to come.
Source: Tecoya Trend
A heat wave combined with a lack of rain has companies across southern India bracing for possible water supply cuts and electricity shortages. The affected area represents a fourth of the nation’s manufacturing output, and includes global auto giants, textile makers and technology companies. The culprit is the weather pattern known as El Nino, and could add to the risk factor for India’s growth. Winter rains fell short and there is also the potential for deficient summer rainfall. “It’s going to be volatile,” Ashok Rao, whose Bengaluru-based company KGK Engineering makes aeronautical and vehicle parts, said last week by phone. “We need to see how we can mitigate the situation coming up in May. Water is still flowing in our factory taps. What if it doesn’t?” Rao’s operation is one of the nearly 89,000 registered factories across the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala and Puducherry that form India’s southern peninsula. The failure of the northeastern or winter rains already led to severe water shortages in 2016, the world’s hottest year on record. More alarm bells rang in February. Grasim Industries Ltd., controlled by the Aditya Birla Group, shut its 73,000 ton-a-year rayon grade pulp unit in Karnataka, citing “severe drought conditions.” The company owned by billionaire Kumar Mangalam Birla is bringing in raw materials from Canada and Sweden for its viscose staple fiber unit, spokeswoman Pragnya Ram said from Mumbai. Reservoirs Low Reservoirs in southern India held only 14 percent of their storage capacity as of March 30, according to government data, and 91 of the major reservoirs across India now have a third of their storage potential.Water shortages in prior years have sparked social unrest. There’s also been disputes between states over sharing rivers or between farmers and cities vying for the resource. The risk now is the economic impact spreads to India’s most industrialized states including Maharashtra and Gujarat amid concerns El Nino will hurt summer rains, the main source of water for drinking, irrigation and industry. Drought-like conditions in 2014 and 2015 across 11 of India’s 29 states likely cost the economy $1 trillion, according to the Associated Chambers of Commerce & Industry in India. During times of low rainfall, states often prioritize drinking water and farming needs over industrial supplies. ‘Higher Costs’ “If there’s a drought, companies will have to pay higher costs for sourcing water,” said Chakri Lokapriya, Mumbai-based managing director of the Indian arm of TCG Group which manages $3 billion in assets. “It will affect the companies and may marginally dent profitability.” Factory shutdowns, even if temporary, could hurt tax revenue, adding to Prime Minister Narendra Modi’s challenge in narrowing the fiscal deficit. It could add to the burden of paying drought relief amid increased demands to waive farm loans.
In 2015, the federal government allotted $1.6 billion in drought assistance to 11 Indian states. The government released 30.8 billion rupees ($474 million) in assistance last week. In Tamil Nadu, home to auto giants including BMW AG, Renault SA and Nissan Motor Co., small industries are looking to move operations to other states, according to K. Raghunathan, president of the Chennai-based All India Manufacturers’ Organisation, which says it represents as many as 100,000 small firms. Tamil Nadu accounts for almost 10 percent of India’s manufacturing. “Industries dependent on water are already hit,” Raghunathan said by phone from Chennai. “Dyeing, food processing and cement units have reported shortages. Farmers are moving to places like Tirupur and Sivakasi to look for jobs in small factories after crops failed.” This will be the third year in the last five that India may witness below-normal rainfall, said Jatin Singh, chief executive officer at private forecaster Skymet Weather Services. While monsoon rains were normal in 2016 they weren’t enough to replenish reservoirs or groundwater levels, Singh said. Beer makers in southern India are monitoring water levels, said Shivlingaiah, secretary general of the Karnataka Brewers and Distillers Association which represents 42 companies. “If summer rains fail, ground water levels will also deplete.” Although industry accounts for only 8 percent of India’s water use, authorities are reluctant to cut the more than 80 percent that goes for irrigation and domestic use. Last summer, the western state of Maharashtra reduced water supplies to companies by as much as 50 percent. This year the situation could worsen because the earlier droughts have already weakened agricultural resilience, Singh said. Farms employ half of India’s working population. Amid shortages, KGK Engineering has shifted to using groundwater to cut reliance on state supplies. “It’s the calm before the storm,” said Rao.
“Every year the situation is worsening. The problems seems local but it’s impact will be much bigger.”
Source: Financial Express
Two year ago, when the deadly White Fly insect pest struck, it left not only Punjab’s cotton growers, but also its ginning industry, devastated. Out of the 275 ginning units then — there were 422 in 2006-07 — all but 59 shut up shop. As farmers lost confidence in growing the crop after suffering heavy yield losses, cotton acreage in the state plunged from 4.36 lakh hectares (lh) in 2015-16 to 2.56 lh in the last season. The drop was even more, when seen against the 6.14 lh area in 2006-07 at the height of the ‘Bt revolution’. But that mood of despair seems to be giving way to guarded optimism in the new kharif season. Many farmers in Punjab’s cotton belt — covering the southern districts of Firozpur, Faridkot, Fazilka, Muktsar, Bathinda, Barnala, Mansa and Sangrur — are planning to sow the fibre crop again after harvesting of wheat towards mid-April. While the state’s agriculture department expects the sown area to increase to 4 lh, even ginners and traders are confident about it crossing 3.5 lh. The change of mood has had mainly to do with prices. Prices of kapas (raw un-ginned cotton) averaged Rs 6,000-6,200 per quintal in 2016-17, compared with Rs 3,800-4,200 in the previous year. But more striking was yields: Many farmers harvested yields of 11-12 quintals per acre, compared to the state’s normal average of 7-8 quintals. In fact, Punjab’s cotton production (in terms of lint fibre) actually rose from 7.50 lakh bales (of 170 kg each) in 2015-16 to 9.5 lakh bales in 2016-17, despite a sharp fall in area. Prices and yields apart, awareness about White Fly control measures appears to have also played a part in the return of confidence among farmers in cotton. In 2015-16, nearly a third of the 4.36 lh area sown under the crop was seen to have faced total devastation due to the pest, which sucks the sap from the phloem tissues that carry nutrients from the leaves to other plant parts. Even in the remaining two-thirds area, yield losses were placed at roughly 25 per cent. “When White Fly attacked my 6.5 acres under cotton in 2015, I had to plough half of the crop back into the field, as it was 100 per cent damaged. Yields from the remaining crop, too, could not even cover my production costs. I pledged never to grow this crop again,” says Ravi Kant from Nihar Khera village in Khuian Sarwar tehsil of Fazilka district. This same farmer, however, intends to cultivate cotton on seven out of his 20-acre land in the coming season. He attributes this to the awareness campaign by experts from the Punjab Agricultural University and the agricultural departments of both Punjab and Haryana: “They taught us that there should be no wild vegetation around cotton fields. We were also told to monitor nearby kinnow plantations and vegetable fields, especially of baingan (brinjal), kaddoo (pumpkin) and palak (spinach), which harbour the pest. Sukhjeevan Singh from Ghaso Khana village of Bathinda’s Talwandi Sabo tehsil is another farmer, whose four-acre cotton crop was completely destroyed in 2015. He reduced the cotton area in his 18-acre holding to only 1.5 acres last year. But the 18 quintals kapas yield that he got from the 1.5 acres has led to his decision to grow cotton again on four acres this time. Rajwinder Singh from Bhai Bakhtaur in Maur tehsil of Bathinda estimates that 70 per cent of farmers in his village, which has about 2,000 acres of agricultural land, will return to cotton this year. They had all opted for paddy cultivation last year after the severe White Fly attack infestation of 2015. “Our area is better suited for cotton. We went to paddy out of sheer desperation and it was hardly remunerative,” he points out. According to Sukhdev Singh Sidhu, joint director of Punjab’s agriculture department, there has been concerted effort over the last one year to deploy “cotton scouts” to survey villages and keep regular vigilance on the pest. “This year, we have launched a weed eradication programme in the eight cotton belt districts. The idea is to root out any host plants on which the white flies flourish. The district collectors themselves are taking monthly reviews,” he adds. All this is also good news for Punjab’s ginning industry, which used to employ 40,000 people a decade ago. That number has since dropped to 5,000-6,000. Suresh Kumar Gupta, the owner of Punjab Spintex Limited, a Bathinda-based textile company and who also runs a ginning factory, says that he used to previously procure 60 per cent of his kapas requirement locally. But in the post-White Fly attack period, that proportion has fallen to 20 per cent. “I am now sourcing lint for my spinning (yarn-making) unit from Gujarat and Maharashtra, which costs me Rs 4 per kg more. But I have no option because there is not enough kapas, due to which my ginning factory’s lint production has declined from 15,000 kg to 5,000 kg daily,” he adds. That situation should improve at least a little this year.
Source: The Indian Express
Textile and apparel maker Raymond is repositioning its menswear brands even as it enhances product portfolios. Apart from ceremonial and ethnic wear, a range of accessories and footwear offerings will be added across the four brands -“Raymond” brand of ready-to-wear apparels, Park Avenue, ColorPlus and Parx - over a period of time. While, Raymond and Park Avenue – catering to the luxury and premium segments respectively – will see “significant enhancement” in ceremonial and casual wear, ColorPlus and Parx – in the premium and mid-level segments – will witness “calibrated extensions of formal products”. According to Gaurav Mahajan, President, Apparel Business, Raymond Ltd, ethnic wear will be a big addition under the Raymond brand, while other brands will have extended offerings to be made into “full wardrobe” ones (having all possible product ranges). “We are in the midst of repositioning our four major brands to expand and extend the portfolio. Each brand will be positioned differently to target a larger market. Each will be a full wardrobe offering and additions could include footwear, accessories, moving beyond casual wear, and so on,” he told BusinessLine. The idea behind repositioning brands is to ensure that they do not cannibalise each other while targeting specific audiences, market sources said. For example, while Raymond will look at the luxury-to-premium segment with a classic range of offerings targeting the mature audience. ColorPlus, also targeting the premium segment, will focus on leisure and smart casual segments. Park Avenue will focus on the “quirk” content, but targeting the premium segment, while Parx will target youngsters, be more experimental in designs and casual by nature. “We are looking to create enough separation between the brands,” Mahajan pointed out, while maintaining that “price” and fashion preferences and not cannibalisation is the reason for re-positioning. Currently, Park Avenue accounts for 45 per cent of the Raymond apparel portfolio, while ColorPlus and Parx contribute 25 and 15 per cent, respectively. Raymond ‘Ready-to-wear’ accounts for the remaining 15 per cent. The company will also look to focus on both retail and digital expansion. Its omni-channel strategy is also being put in place over the next 12 months. Market sources claim that Parx is being slowly pushed with primary focus online. The other three will focus on offline growth. Mahajan, however, has a different take. “There may be increased traction for Parx over a period of time in one channel because of the customer we are targeting. But its not that we will ignore or focus on one particular channel,” he points out. According to him, Raymond will focus on all channels to push sales of its four brands.
Source: Business line
Countries often join trade negotiations as they consider trade deals ‘insurance policies’ against friction in bilateral ties. But since many countries do not have congruence in their foreign and trade policies, trade negotiations propelled by geostrategic motives often result in shallow deals limited to marginal increases in market access. Strategic pressures to conclude trade agreements preclude the possibility of these being comprehensive frameworks for generating meaningful trade and cross-border movement of capital and people. The 16-country RCEP negotiations involving ASEAN, India, China, Japan, Korea, Australia and New Zealand, is a pertinent example. The RCEP took off for preserving the geostrategic sanctity of the ASEAN-led regional economic order at a time when it was threatened by the TPP. The collapse of the TPP has focused additional attention on RCEP and its economic architecture. Many RCEP members are keen on quick conclusion of the deal in a show of regional solidarity by limiting its ambitions to a common schedule promising more tariff cuts. But a hurried deal for safeguarding strategic insurance might be difficult to sell to domestic constituencies of many members who would be unconvinced with its economic prospects. Indeed, this is where for a RCEP member like India foreign and trade policy priorities sharply diverge. At RCEP, India is unwilling to yield ground on tariffs till it is assured of easier movement for its professionals. The Indian resistance can be traced to the disappointment with outcomes of earlier FTAs with RCEP members. India has several FTAs with many RCEP members. These include goods and services FTAs with ASEAN and bilateral trade deals with Singapore, Malaysia, Japan and Korea. Most of these FTAs initiated in the last decade were motivated by India’s desire to integrate deeper with Southeast Asia and become an important strategic actor in the Asia-Pacific. India’s geo-strategic ambitions were complemented by several Southeast Asian countries that yearned for a more ‘active’ India in the region for counterbalancing a rising and assertive China. Trade and economic cooperation was the most virtuous way for realising India’s geo-strategic ambitions. Indeed, as India and many of its ‘suitors’ from the region began working on trade agreements, simultaneous diplomatic initiatives saw India becoming dialogue partner of the ASEAN and a member of the East Asia Summit. India’s existing FTAs with RCEP members have increased India’s trade with the region. However, Indian industry has not been favourably disposed to these FTAs. It has held the view that these FTAs have largely increased imports into India rather than increasing Indian exports to regional markets. This could be partly true, given that large cross-border businesses like automobiles have set up assembly bases in India and are extensively importing parts and components from the region. At the same time, the fears of the Indian industry could be exaggerated as studies point to limited use of most FTAs given lack of greater knowledge about them on part of businesses. Nonetheless, Indian industry has remained largely cynical about prospects of India’s FTAs with the region with the impression extending to RCEP as well. From a negotiating perspective, it is important for India to ensure that RCEP does not become another deal that fails to enthuse domestic constituencies. India’s negotiations for market access suffer from the handicap that in several industries, particularly farm products, Indian tariffs still remain bound at higher rates than those in the region. Many of these products figure in sensitive or negative lists of India’s tariff commitments in existing FTAs with Southeast Asia thus leaving considerable room where countries from the region can demand tariff cuts from RCEP. ASEAN and other members are pressing for a composite tariff schedule at RCEP that would eliminate more than 90% tariffs on traded goods. For India, this implies slashing tariffs on the sensitive lists. It would enhance criticisms of India’s FTAs primarily facilitating imports. Greater market access by slashing sensitive tariffs is acceptable only if India is granted equally meaningful reciprocal access elsewhere. And this is where India’s demand for greater mobility for its professionals assumes significance. Some of India’s FTAs with the region, such as the services agreement with ASEAN and the bilateral FTAs with Singapore and Malaysia, have provisions for movement of professionals. But these have not produced the mobility that India expected. This is not surprising since ASEAN, as a region has made little progress on movement of people within itself. Notwithstanding the near-term goals of the ASEAN Economic Community and a common ASEAN market, seamless movement of people remains a major problem. Regional negotiators therefore are unwilling to commit on the Indian demand. Despite joint business groups like the India-Malaysia CEOs forum urging for reciprocal movement of professionals, it is an issue where most RCEP members are on the same page and unwilling to commit on market access for skilled labour. But India’s posture remains hard, as it feels let down by the region in its commitments on this subject in the existing FTAs. It rues the fact that its tariff concessions have not been reciprocated by similar concessions for professionals, particularly in the FTA with ASEAN. For several past FTAs with the region, geo-strategic compulsions prevailed on India’s trade negotiators to concede and compromise on demands. But RCEP negotiations are proving to be different till now. The political drivers of ‘Act East’ haven’t been successful in softening India’s tough stand. Indeed, notwithstanding harmonious external relations, RCEP exposes the deep rift between India and Southeast Asia on trade that, while always perceived, was never so conspicuous. The rift symbolises the divergence between India and most of the Asia-Pacific region on trade issues. Trade liberalisation, for most of the region is confined to negotiating ‘at the border’ market access by chopping tariffs. For India, however, trade liberalisation extends to deeper ‘beyond the border’ access for its skilled people. This is a gap that foreign policy imperatives can hardly hope to bridge.
Source: Financial Express
World cotton prices may remain under pressure as the International Cotton Advisory Committee (ICAC) has projected higher global production of the fibre crop against stable mill consumption. across the globe. Also, the ICAC noted that higher prices during 2016-17 came as an encouragement for growers to expand cotton area in 2017-18. ICAC estimates global cotton production to rise 1 per cent to 23.1 million tonnes in 2017-18 on the back of high prices in 2016-17, which encouraged farmers to plant more cotton globally. Farmers’ preference for cotton due to higher returns was also reflected in the initial sowing trends in North India, where area under the crop is likely to see a sharp revival, with a 20-30 per cent rise in the acreage from 1.196 million hectares witnessed last year. India is the largest cotton producer in the world with an over 20-25 per cent share in production. It also has the largest area under the crop, hovering at 11-12.8 million ha. India’s production is projected to rise 2 per cent to 5.9 mt, while in China it could rise 4.8 mt in 2017-18, as area increases by 3 per cent to 3 million hectares after five seasons of contraction, said ICAC. Also, in the US, high yields and firm prices are likely to encourage farmers to take up cotton, subsequently increasing the sowing area in 2017-18. However, US production is expected to remain unchanged from 2016-17 at 3.8 mt as the average yield is assumed to be closer to the five-year average. According to ICAC, world mill consumption of cotton in 2016-17 is expected to remain unchanged at 24.1 mt due to weak economic growth and competition from polyester.
Source: Business Line
Ganesh Kumar Gupta, chairman, Akaash Textiles Pvt Ltd, and Vijay Silk House Group, Mumbai, has taken over as the new president of the Federation of Indian Export Organisations (FIEO) from this month for a period of two years. The Federation also nominated M Rafeeque Ahmed of Farida Group as its new vice president at the 240th Managing Committee Meeting. Gupta has worked for the overall growth, development and exports of the textile industry for over 4 decades. He has also earlier held the post of president, vice president, regional chairman (WR), FIEO chairman, Textile Committee chairman, SRTEPC and Silk Export Promotion Council director, ECGC and member, National Productivity Council. A great votary of aggressive marketing for exports, he has also aggressively taken up many issues of the exports sector and brought them to logical conclusions. Associated with the leather industry for more than 4 decades, Ahmed has played a crucial role in the overall growth and development of the industry. Before his stint as vice president, FIEO, Ahmed has held several key positions including president and regional chairman (SR) of FIEO president, All Indian Skin and Hide Tanners and Merchants Association chairman, Tamil Nadu State Council of FICCI chairman, CLE and chairman, FDDI, ministry of commerce & industry, Government of India. Gupta expects the merchandise exports to be around $315 billion and services exports to about $185 billion in FY 2017-18. The Federation expects to end the fiscal 2016-17 with an export of about $270-275 billion as against $262 billion in the previous year, with a growth of around 3-4 per cent for the year in the merchandise sector whereas in services sector FIEO is expecting an export of $160 billion in 2016-17. The new FIEO president is of the view that as we had already touched the $300 billion merchandise exports in the past, we should look at more aggressively increasing our exports with previous 6 months specially the February exports showing an impressive double digit growth of around 17.5 per cent. Gupta also feels that a greater emphasis needs to be given to exports in the new GST regime with liquidity being the key challenge for the exporters. He also said that in the upcoming mid-term review of the Foreign Trade Policy, there is a need to look at further diversifying the product basket focusing more on high-tech products where India's share in global trade is very low, to further compete in the international market.
Source: Fibre2fashion
LONDON (AP) — The 19-country eurozone economy has just enjoyed its strongest quarter for nearly six years, a closely watched survey showed Wednesday. In its wrap-up of economic developments in March, financial information company IHS Markit said its composite purchasing managers’ output index — a broad gauge of economic activity — rose to a 71-month high of 56.4 in March from 56.0 in February. Though that’s slightly down on the initial estimate of 56.7, the index remains well above the 50 mark that indicates expansion. The firm said output growth was registered across manufacturing and services, with the rates of expansion running at near six-year highs for both sectors. It estimates that quarterly economic growth is running at a more than healthy 0.6 percent, with the upturn broad-based across the region. Though the eurozone emerged from recession years ago, its rates of growth have been generally modest. “Most welcome for a region still suffering near-double digit unemployment is a rise in the survey’s employment index to its highest for almost a decade, suggesting we should expect to see the jobless rate fall further in coming months,” said Chris Williamson, the firm’s chief business economist. While the growth outlook appears to be improving, the firm says inflation pressures remain elevated and look set to feed through to higher consumer prices in the months to come. However, few economists think the European Central Bank will start withdrawing its stimulus measures until later this year, not least because policymakers want to be sure that inflation is heading back toward more normal levels. A recent uptick in inflation has been largely due to rising oil prices, evidenced by the fact that the core rate, which strips out volatile items such as food and energy, remains stubbornly low.
Source: Financial Express
Malaysia recently marked two years of introduction of the goods and services tax (GST), the latest country to do so in 2015. The country’s Minister of International Trade & Industry, MUSTAPA MOHAMED in an interaction with Subhayan Chakraborty and Sudipto Dey, shares the lessons from Malaysia’s GST experience, along with its role in the current round of Regional Comprehensive Economic Partnership (RCEP) negotiations. Edited excerpts: India is in the process of introducing the GST. Are there any lessons from the Malaysian experience that India could use? First, it is the engagement with the public. Second, GST became unpopular with the public, as some section of business took advantage of the tax to raise prices. So, we had to bring in anti-profiteering measures. The public wanted the government to come down hard on those who took advantage of the system. (With the GST) there is risk of inflation but that is just one-off. How much time did the Malaysian industry get to be ready for the new tax? In our case, the GST was conceived years ago. So, the industry had sufficient time to adjust – at least 18 months (from the time the rates were announced). We may have lost some political capital since the time the GST was introduced but our Prime Minister was courageous. We could have been populist — not taken this route, but we did the right thing for the long term. Have the government revenues gone up sizeably because of the GST? Yes, they have. Earlier many — such as those in the informal/black economy — were not paying taxes. The GST has taught entrepreneurs to be disciplined and maintain proper accounts. Still, some people blame everything on the GST. We have had the GST for two years and it is still not over yet. Without the GST, we would have been in serious trouble. (Globally) the price of oil and gas has come down. Our revenue from oil has come down drastically. Our Prime Minister is on record to say that the GST has saved us from a very challenging fiscal situation. But people don’t like it. Awareness and education of the public (on the GST) is tough but crucial. The Malaysian PM has lent a big push to the current round of RCEP negotiations. How feasible is the target of finishing negotiations by this year-end or early next year? Firstly, all of us are committed, not just Malaysia or the Association of Southeast Asian Nations (Asean). More than 16 countries have kept talking. It’s a very important agreement, now that protectionist noises are coming from many directions in the world. Secondly, we have met several times — 17 times over the past many years with ministers having met three to four times. When the two PMs met, they also discussed it. Thirdly, we know this is going to be the biggest trade deal in the absence of the Trans-Pacific Partnership. RCEP is very inclusive — it includes China and India. Of course, we have to narrow the gaps. We have our own position, while Asean and India have theirs. The next ministerial meet is in late May. Between now and then, we have to see what can be done. We all have ambitions. We’ll try hard, but it can’t be a perfect agreement and we’ll have to accept that. We have this small window but with commitments from all major countries, it’s tough, but doable. On that note, how comfortable is Malaysia with India’s demand to make services trade a part of the final agreement? There have been some proposals on services. India, we know, has a strong position in services and it has also made some concessions on goods in this regard. It’s difficult among Asean countries, as there’s a big divide on services. Perhaps there can be a middle path. Malaysia has been chairing the discussions on services and therefore, we understand the issues quite well. There have been proposals on the table as well as compromises. So far, those compromises do not seem to be working. So, we have to revisit those. We know India is very aggressive on it. We also know some RCEP countries are accommodating.
What is the kind of tariff liberalisation for goods that can finally be achieved?
There have been a lot of conversations on that and it is going to be as liberal as possible. We are almost there on goods, but it’s not final. It’s safe to say that on goods, there has been more progress than on services Is Malaysia looking to diversify its export basket to India beyond palm oil and crude? Indian palm oil producers have complained of Malaysian producers dumping cheap oil in the Indian market. It is private sector driven but we are keen on doing that. It depends on what you want and what you produce. It’s a question of demand and supply. Palm oil is an important component of our trade with India, apart from electrical items and refined petroleum products. These make up almost 60 per cent of our trade.
Source: Business Standard
Renowned international textile firms are to step up importation of organic cotton products from Uganda, a move that is expected to boost the sector. Textile importers from Germany, Denmark and other European countries, during a tour of Western Uganda Cotton Company (WUCC) in the south-western Uganda district of Kasese last week, said they were impressed with the quality of Uganda's cotton that they were receiving from the country. "I import 500,000 T-shirts per year, but now I want to grow it to one million pieces annually next year 2018. When you ask me why, I will tell you it is because Uganda has good cotton with production facilities," said Joern Otto, the vice president for sourcing at Bonprix Company, which is based in Hamburg, Germany. Otto, however, noted that Uganda's textile industry still needs more support. "Uganda's textile sector looks good, but it needs more technical support in the form of training workers," he said. The investors who were taken through the cotton ginning process by an official from WUCC, Walter Obonyo, also commissioned Hanne nursery and primary school in Nyamirangara, Kasese. The community-based school, which was started by cotton farmers, was named after one of the visiting investors, Hanne Gottorp Larsen, who is funding the construction of the school. Jas Bedi, the director of Fine Spinners Uganda Ltd (FSUL), said he had come with investors from Europe to show them the kind of impact the trade in cotton was having on poor communities. "I have come with my customers from Europe to see where the T-shirts come from and where the cotton for making T-shirts comes from. We also want our farmers to get a win-win situation," said Bedi. Fine Spinners took over Tri-Star Apparel and recently Phenix Logistics garment industries. Bedi said a diagnostic study on revamping the productivity of the textile firm has been done. "Our investment model in Uganda is based on a model of value addition on Uganda's cotton. Within the next three months, you will see a lot of activity," Bedi said. Bedi said Fine Spinners is working with Cotton Development Authority to improve the cotton yields. Statistics show that cotton prices are rebounding. While commissioning the school, the resident district commissioner Kasese, Maj James Mwesigye, urged the German investors to come and invest in Kasese district. Paschal Kilolo, the Kasese district assistant inspector of schools, said there are 240 acres of land at the Kasese industrial and business park that investors can apply for. "We have salt, copper and cobalt here. We also have coffee and cotton. So, people should come and develop this land," Kilolo said. Despite the unpredictable weather conditions that keep on affecting the yields, cotton prices have been on the increase. Farmers received Shs 2,500 per kilogramme this season compared to Shs 1,500 around the same time last year. The increase in prices and the introduction of the fast-yielding cotton variety, which takes four months as opposed to about seven initially, is encouraging farmers to grow cotton. Uganda's Vision 2040 highlights the importance of manufacturing and value addition in enabling the development of an export-led and an internationally competitive economy, which is able to spur growth. State minister for microfinance Haruna Kyeyune Kasolo said during the recent handover of Phenix Logistics to Fine Spinners that investors are expected to support government's efforts in promoting production of textiles using Uganda's organic cotton. This, he added, would increase Uganda's export earnings.
Source: AllAfrica.com
New Chinese investments in the field of textiles are coming soon to Egypt's Suez Canal economic region, an Egyptian official said on Saturday. Ahmed Darwish, head of the Suez Canal Economic Zone (SCZone), said during a business conference held in Cairo that a number of investment contracts would be signed in the SCZone with Chinese international firms. At the two-day first round of the Belt and Road Industrial and Commercial Conference, held under the slogan of "Egypt ... Your Gateway to BRICA," the Belt and Road Industrial and Commercial Alliance, Darwish said that the SCZone has become largely attractive to investors, particularly those of China. He added that China's TEDA Corporation, one of the oldest industrial developers in the zone, has been developing an area of over 7 square km in Ain Sokhna district of the Suez Canal Corridor east of Cairo. The SCZone chief hailed TEDA's work in the region that attracted some 68 enterprises, including Jushi, a fiberglass giant from China. Proposed by Chinese President Xi Jinping in 2013, the Belt and Road Initiative is meant to revive the ancient trade way known as the Silk Road, including land and sea trade routes between China and countries in Asia, Africa and Europe. The first round of the annual Belt and Road Industrial and Commercial Conference is organized by Egyptian Businessmen's Association and China Federation of Industrial Economics, Egypt and China being the founding members of BRICA. Held under the auspices of the Egyptian Ministry of Trade and Industry, some 150 Egyptian businessmen and 160 others from the BRICA states took part in the conference, besides large financial institutions including China Development Bank, Industrial and Commercial Bank of China, African Development Bank and the Common Market for Eastern and Southern Africa.
Source: China Daily
Vietnam is joining negotiations for the Regional Comprehensive Economic Partnership (RCEP), which is expected to bring in numerous benefits to the country's garment, textile sector in terms of cost, market scale, and material supply, according to Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS). The RCEP, if comes into force, will create huge impetus for Vietnamese garment, textile sector as the country will not have to bear many trade barriers, local Bao Cong Thuong (Industry and Trade News) online newspaper quoted Giang as saying on Wednesday. The RCEP covers 16 countries, including 10 members of the Association of the Southeast Asian Nations and their regional trading partners of China, Japan, South Korea, Australia, New Zealand and India. When participating in the RCEP, Vietnam will have a strategic market in Asia with three major benefits. The first thing is lower transportation fees due to geographical proximity. Secondly, RCEP market will help Vietnamese firms with supply of raw materials. Thirdly, the cultural similarities among Asian countries will help the RCEP negotiation and signing processes take place faster, said Giang. According to the VITAS chairman, so far, Vietnamese firms have had orders till the end of August this year. Giang forecast that the garment, textile exports would experience a growth of 13-14 percent in 2017, compared to 9.2 percent in 2016. However, the deeper the integration is, the fiercer the competition will be, said Giang, urging local companies to enhance management to ensure providing products with more competitive price, higher quality, and shorter delivery time. In the first quarter of 2017, Vietnam earned 5.6 billion U.S. dollars from garment, textile exports, up 10.2 percent year-on-year, while spending 2.3 billion U.S. dollars on fabric imports, up 5.5 percent, according to the Vietnam's General Statistics Office.
Source: Xinhua
Workers in textile industry to demonstrate over the failure of the anti-counterfeit taskforce Workers in the textile industry are threatening to demonstrate over the failure of the anti-counterfeit taskforce set up by the government to deal with the proliferation of fake textiles on the market. According to the workers, the government taskforce consisting of security personnel and other industry players has been inactive since the new administration took over in January this year. They want the work of the taskforce re-activated as soon as possible or they hit the street in protest. In a letter to the Greater Accra Regional Police Commander notifying him of the intended demonstration, the Concerned Textile Workers said: “the resolve to embark on the demonstration is to amplify our grievances for the Ministry of Trade and Industry to act swiftly by reconstituting the task force to check the illegal activities of some importers and traders to save our jobs.” The Ministry of Trade and Industry established the Anti Textile Piracy Taskforce in 2010 to clamp down on the activities of fake textile dealers. The mandate of the taskforce is to arrest and prosecute persons involved in the smuggling and trade of counterfeit textiles. “As at now, the operations of the taskforce have stalled for no apparent reason and our union (Textiles, Garment and Leather Employees Union) has not been able to explain the circumstances,” the letter said. The textile industry has over the years been hit by a number of challenges including the smuggling of textile prints into the country mainly from China, which sells at a cheaper price. There have also been concerns about the pirating of local designs a situation the Ghana Federation of Labour has repeatedly said is an infringement of intellectual property, hence illegal. In a letter dated 31st March 2017 to the Minister of Trade and Industry, the Concerned Textile Workers raised claimed the smuggling of fake textiles has increased over the last few weeks as the Easter Festivities approach. “We visited the markets and purchased some of the fake/imitated fabrics at ridiculously cheap prices which render our genuine local products unmarketable,” the letter signed by Ebenezer Asumadu and four other leaders of the Concerned Textile Workers said. They are warning the government that efforts to expand the local textile industry will not materialise unless the problem with fake textiles is dealt with.
“It will be unwise to put money in local textiles manufacturing sector without first eradicating the causes of noncompetitiveness of the local products, specifically counterfeiting and smuggling, aside from the high cost of local products,” they said. “Since the threat of losing our jobs continue to haunt us as workers, we appeal to you to allow the anti-textile piracy taskforce to resume operations without further delay in the interest of sustained functioning of the local textile industry to save our jobs,” the letter to the minister added. The workers say the activities of their employers including the Ghana Textiles Manufacturing Company and Juapong Textiles will soon grind to a complete halt if nothing is done about the situation. “Our union tells us that attention of the Ministry has been drawn to this development but no action has been taken as the distressed manufacturing industry grind to a halt, resulting in the loss of 20,000 jobs,” the letter said. The government is meanwhile assuring the workers it will not allow the textile industry to collapses as it considers it an important sector. Chief Director at the Ministry of Trade and Industry Dawarnoba Baeka in a letter to the chairman of the Textiles, Garment and Leather Employees Union said: “The ministry has always worked closely with your union and other stakeholders to find solutions to challenges in the sector..." “The Ministry attaches great importance to the textiles and garments sector because of its potential for jobs and wealth creation. Indeed, the sector is one of the key sectors of the Anchor Investment Programme under the new Government Industrial Transformation Agenda,” the letter added. It would be recalled that late last year, textile manufacturing firm GTP laid off more than 130 workers over low revenues. The local textile manufacturing sector has struggled to stay afloat over the years as a result of the above challenges. It employed more than 25,000 workers in the 1970s but now provides jobs to less than 2000 people. The more than 130 million meters of fabric it produced has also been reduced to less than 30 million. This has resulted in the collapse of a number of textile manufacturing companies in Tema, Akosombo, and Juapong. Some of the sites which used to host such industries have been turned into warehouses and churches.
Source: GhanaWeb
LAHORE: Khurram Dastgir Khan, commerce minister on Wednesday said the first installment of the Rs180 billion textile incentive package will be disbursed in the coming few days as funds have been released for the purpose. The minister did not give further details. Talking to the journalists at a seminar on the ‘Ease of Doing Business in Pakistan’, Khan said Pakistan Pakistan has been ranked as one of the top ten economies that introduced revolutionary reforms to enhance the ‘ease of doing business’ manifold. “We are focused on improving counterterrorism, law & order, and energy infrastructure since coming into the power in 2013,” Khan said. The minister however, stressed that issues like terrorism and energy crisis could not be overcome overnight. “These issues were developed over generations and will take time before they are completely eradicated, but the government is committed to uproot these menaces from the country,” he said. On energy crisis, the minister claimed the industrial feeders are now free of outages and smooth supply is being ensured to industries around the clock, while domestic outrages will end next year as a number of power projects will come online by then. “We are alive to the fact that energy and law & order are critical for not only the industrial progress but also for the creation of jobs”, the minister observed. Earlier, Governor Punjab Rafique Rajwana in the opening session of the conference highlighted the government’s efforts for creating business-friendly environment. “Foreign investors have once again started reposing their trust in Pakistan. That’s why foreign direct investment is growing in various sectors,” Rajwana said.
Source: The News International
Country's export sector has come under a great deal of stress in recent past. In order to improve the situation, Jawed Bilwani, Chief Coordinator, Pakistan Hosiery Manufacturers and Exporters Association (PHMA), in a letter to the Prime Minister, has asked for his direct intervention to salvage the ailing textile sector and warned the government that a widening trade deficit would certainly hit country's foreign exchange reserves. "It is critical that your business-friendly government should also take immediate cognisance of elements which are hampering the pace of textile exports which earn major amount of foreign exchange and revenues for the government." Jawed Bilwani requested the PM to order immediate disbursement of refunds within next ten days. The multiple challenges faced by the textile industry, including a deepening liquidity crunch, high cost of imports and manufacturing and a cut-throat competition with regional countries also calls for intervention to support the textile sector on a priority basis. If refunds of all pending sales tax, customs rebate and WHT were instantly released, it would provide a great relief to textile exporters. Raw material for exports must not be subject to any duty/regulatory duty. Yarn should also be allowed to be imported for manufacturing of goods meant for exports. The government should also reduce rates of utilities, especially power and gas at par with regional competing countries, with declining export sector as separate head of account in tariff structure. Supply of utilities should be ensured to the export-oriented industries throughout the year. He urged the federal government to fix a number of gazetted holidays for workers and expressed concern over frequent Sindh government holidays which hurt the manufacturing sector. The concerns of Chief Coordinator of PHMA over dwindling exports are clearly understandable. If exports of the country continue to fall at the present rate, its implications in terms of foreign exchange reserves, valuation of the rupee, rate of inflation, fiscal position of the country, etc, are not difficult to gauge. Obviously, if such a position continues to persist, a day will soon come when foreign exchange reserves of the country would not be sufficient to sustain the present level of imports of capital goods, raw materials for industry and other essential items. This will badly hurt industrial output and undermine the growth prospects besides worsening unemployment situation and poverty indicators. However, while the concerns of Jawed Bilwani appear to be valid and genuine, his suggestions to raise the level of exports, particularly of textile exports, call for a closer scrutiny. For instance, his proposal to settle the refund claims immediately is right on the spot. It is clear that when the scheme of refund claims was introduced, the government was supposed/bound to carry out its job efficiently and promptly. Besides, the liquidity crunch faced by the manufacturers and exporters due to claims withheld has now started to undermine the growth and export potential of the country. Value-added textile industry is of course the backbone of Pakistan's industry and instant release of refund claims would provide much-needed relief to the textile exporters who would then be more focused on increasing their output. The demand for duty-free import of raw materials for manufacturing goods meant for exports is also quite justified. We also totally agree with the proposal of fixing of the number of gazetted holidays within a year and not announce unnecessary holidays thereafter to keep the wheel of industry moving constantly. The unfortunate aspect is that frequent strikes and sit-ins also add to the problems of industry and cause impediments towards meeting production deadlines. However, the demand for reduced rates of utilities like gas and power, particularly at par with regional countries, and ensuring uninterrupted supply of these inputs cannot be considered for obvious reasons. Clearly, reduced rates of utilities in a particular sector would necessitate higher tariff rates on other sectors to compensate for the lower collections from that sector. Such a policy would become all the more difficult to sustain when power utilities are already facing huge losses. So far as continuous supply is concerned, this obviously cannot be ensured till the country is facing huge shortages in the supplies of gas and power. Jawed Bilwani has, nonetheless, not mentioned the growing protectionism in the world and overvaluation of the rupee which could worsen the potential of export sector a great deal. It was better if he should have also given some attention to these challenges.
Source: Business Recorder
Top Chinese textile and garment suppliers, who have also been key global players, will bring their latest and best functional and environmentally friendly products to the upcoming 121st China Import and Export Fair (the Canton Fair), being organised during May 1-5, 2017 in Guangzhou. Products displayed will include men and women's clothing and kids' wear. Other products to be exhibited by over 5,000 suppliers in the textiles and garments section of the fair include underwears, furs, leather, downs and related products, fashion accessories and fittings, home textiles, textile raw materials and fabrics, sports and casual wear and carpets and tapestries. "The Canton Fair has upgraded from a trade show to an integrated platform for information exchange in the industry. We expect to help our partners achieve their business objectives in every aspect at the fair," said Liu Quandong, deputy director general of the foreign affairs office of the Canton Fair. Ningbo Noble Woolen Garments Industry, a leading Chinese wool and cashmere manufacturer, will make its 24th trip to the Canton Fair. The company has helped its partners in Western Europe, North America and the Middle East expand their businesses. One of its European partners has become the largest wholesaler and retailer for wool and cashmere in the region. Jack Zhu, CEO of the company, noted that buyers and suppliers at Canton fair do not only provide and find premium quality products but are also able to visit factories for business opportunities. "Low price is no longer competitive in international trade. As markets mature, the baseline for success in this industry is to constantly improve intelligent manufacturing capabilities, design, and quality at a reasonable price," commented Zhu. The visitors at the event may look forward to find newly-introduced stylish designs from France, the United Kingdom, and the Netherlands as well as attend forums and summits to explore the latest fashion trends.
Source: Fibre2Fashion
Donald Trump’s meeting with Chinese president Xi Jinping starting Thursday (April 6) at Mar-a-Lago will finally give the US president a chance to meet face-to-face with the leader of the country he has trash-talked ceaselessly, describing it numerous times as the source of “trade deficits and job losses.” Peter Navarro, Trump’s trade advisor, published a diatribe against China in which he repeatedly claims “they took our jobs” and calls on US politicians to restore the country’s manufacturing sector. Trump’s complaints aren’t necessarily entirely wrong—but in economics, as in most of life, timing is everything. Offshoring, globalization, and free trade have undoubtedly moved some American jobs towards China, as US labor unions warned two decades ago. But, these days, the version of China that Trump continues to rail against is increasingly out-of-sync with the China that exists today. Its economy, much as other developed economies have already done, has begun transitioning towards a post-industrial economy. The manufacturing boom that powered China’s economic rise over the last two decades has started to draw to a close—and making goods is getting more expensive relative to other economies. The growth of China’s manufacturing output has slowed over the past half-decade. Production grew 6.9% year-on-year in February this year, compared to over 11% in mid-2013—though those figures may be inflated (government statistics from China can be unreliable). Meanwhile, the number of people employed in manufacturing has just begun to shrink. According to Nicholas Lardy of the Peterson Institute, citing data from China’s National Bureau of Statistics, the total number of people employed in manufacturing dropped for the first time in more than a decade in 2015, from 79.61 million the previous year to 78.4 million. Separate data suggests that this shrinking began even earlier. A government index estimating manufacturing employment has remained below 50 since 2012 a figure below 50 indicates declining employment. In March it finally rose to 50.0. The main reason for manufacturing becoming more expensive is labor costs, which have risen significantly. The country’s shrinking working-age population has made each employee more valuable, and the government has steadily instituted minimum wage raises in order to reduce labor strife. While average worker salaries remain considerably lower than that of the US, numbers from data firm CEIC shows they have nevertheless nearly doubled between 2008 and 2015. The average person working at a state-owned enterprise in 2008 earned 2,408 yuan per month (about $343, using historic currency conversion rates), which rose to 5,169 yuan per month ($749) in 2015. Workers in private enterprises in their home areas, and migrants working away from their official residence, also saw monthly wages go up from roughly 1,400 yuan per month (about $203) to 3,100 yuan per month ($450). The country’s monthly GDP per capita as of 2015 was $669, according to the World Bank. As a result, some Chinese manufacturers are moving to other countries, where labor is cheaper and regulation is even more lax, especially now that Beijing has ramped up efforts to curb pollution. Low-margin industries in particular, like apparel, have fled China for places like Vietnam or Myanmar. In 2013, shoe-maker Crocs and leather goods company Coach said they intend to significantly lower the percentage of their products that are made in China by partner manufacturers, with an eye towards relocating to Southeast Asia (paywall). Overall, China’s economy has shifted noticeably away from manufacturing and towards “services,” which includes everything from hotel front-desk assistants to quantitative analysts. Since 2012, government data suggest that the GDP from services actually exceeds GDP from manufacturing. To this end, China’s economic structure is beginning to look more and more like that of a developed country—just one that’s much poorer, and warped by the state’s unceasing involvement in the market. Meanwhile, to keep up output while mitigating labor costs, China has begun investing heavily in automated manufacturing. Beijing aims to boost output of industrial robots to 100,000 units per year by 2020, a rate it’s currently set to exceed. Last year, industrial robots marked the fastest-growing industrial product made domestically (albeit from a small base). The US, of course, is doing the same. Whatever jobs China took from the US may now also be leaving China, and will probably not come back to either country. Stealing American jobs has “not stopped, but at the very least slowed down to a trickle,” says Christopher Balding, who teaches economics at Peking University in Shenzhen. He points to the asymmetrical investment policies China and the US hold towards one another as a more productive area for Trump to focus on. While the US is barred from investing in countless industries in China, Chinese money flows freely into US real estate, technology companies, film production studios, and universities. But, he said, when it comes to China’s impact on the average American’s economic future, “Trump and Navarro are totally overplaying their hand.”
SOURCE: WSJ
One of the futuristic promises of 3D printing in fashion was that one day the technology would allow you to walk into a store, give the staff your measurements, and walk out with a garment made on the spot, just for you. We’re not there yet, but the scenario is becoming a reality for 3D knitting, a cousin of 3D printing that uses yarn to produce a complete, three-dimensional item. Rather than the stiff plastic product created by a 3D printer—good for sneakers, less so for clothes—it produces sweaters, jackets, and anything else you could knit. Some brands are already using it in their factories to produce garments. The fall collection of Uniqlo’s U line will include 3D knit items, and the brand is working on a new production system based on the technology. But a couple adventurous labels, including Adidas, are experimenting with 3D knitting on-demand in stores, hinting at a greater role it might play in fashion production and retail in the years ahead. Maybe the most significant effort thus far comes from the Boston-based label Ministry of Supply, which has permanently installed a 3D-knitting machine at its Newbury Street flagship in the city. Aman Advani, a cofounder of the quickly growing label, which makes performance clothes for the office, says it took a 60-foot crane to install the 3,000-pound machine. “This isn’t a niche product,” he explains. “This is step one of a longer route to a sustainable and strong production method that’s here to stay.” The company is betting that in-store production will be the future of retail. In theory at least, the benefits are clear: 3D printing allows shoppers to personalize items to their specifications, meeting the growing demand for customized products. It lets stores carry less inventory, since a garment is only created when there’s a customer ready to purchase it, meaning less risk of stock that doesn’t sell and has to be discounted. And it turns retail into an experience, providing a reason for customers to visit a brand’s brick-and-mortar stores and build a personal connection with it, rather than simply shopping online. Ministry of Supply is starting off with just one 3D-knit item, an office-ready jacket (though the knit and weight make it look more like a cardigan) with plans to expand the offering later. “The fit is spectacular,” Advani says. “It’s built to move around in, so it will tend to look a lot sharper than a traditional cut-and-sew garment.” Shoppers are able to customize the color of the body, the cuffs, and the buttons, though they still have to choose from Ministry of Supply’s standard range of sizes. (The brand plans to also increase customization options, including the fit, as they go forward.) It takes about 90 minutes to knit, then the jacket gets washed and dried so it’s preshrunk. It costs $345, slightly more than the $285 for the non-customized item online. Advani argues that 3D knitting generally makes for a superior product. Unlike cut-and-sew garments, which are assembled from flat pieces of fabric, a seamless 3D-knit garment is designed and produced in one piece, and in three dimensions, matching the shape of the body. The knitting machine is able to create details such as articulated elbows and shoulders that allow a built-in range of movement. It also produces less waste than a traditional cut-and-sew garment, where left over fabric scraps end up being discarded. It’s debatable just how much better a 3D-knit garment than one made with whole-garment or fully fashioned construction, in which the seams are knit, rather than sewn, together. But what Ministry of Supply can clearly offer is a personalized product that’s made on the spot. That promise is attractive enough that Adidas is also testing out 3D-knitting. It’s currently offering the service in a pop-up store in Berlin as part of a strategic push toward faster, more customized production. The German sportswear brand takes the personalization even further: Customers can walk in, get a 3D body scan, and have a merino-wool sweater knitted to their size and color specifications, washed, dried, and ready to go within four hours. The sweaters cost €200 (about $215). Fashion label Eileen Fisher has looked into the possibilities of 3D knitting as well, teaming up with Intel recently to demo the technology at a large trade show in New York. Many of the machines in use, including Ministry of Supply’s, are made by the Japanese knitting specialists Shima Seiki. It’s also the company Uniqlo has partnered with for a joint venture aimed at creating a new production system for knits centered on its 3D-knit printers. To buy one of the machines itself can cost $180,000, a significant investment, especially for smaller brands. Advani jokes that Ministry of Supply only budgeted for one-way transportation on its machine, which is roughly the size of a large dining table. If 3D-knitting proves to be the game-changer Ministry of Supply expects, it will roll out 3D-knitting machines to its eight other stores. “At this point we are pretty convinced that we can get one-quarter, maybe even one-third, of our production done in-store, or even to serve the online market within the next couple years,” Advani says. If that comes to pass, and more labels adopt the technology, it sets 3D knitting on the road to succeeding as the consumer-facing innovation that 3D printing has thus far failed to become. It may still be some time before we are 3D printing clothes in our homes, as the futurist Ray Kurzweil predicted would happen within a decade—but a sweater knitted for you while you wait could be within your reach now.
Source: Yahoo Finance
Last spring, as Tannia Ospina settled into bed after a long day running her children’s clothing business, an Instagram message popped up that made her burst into tears. It was a photo of her 2-year-old daughter modeling a mermaid romper she had sewn in her home, and it was being used to advertise a rip-off of her design, now being sold for a fraction of the price on AliExpress, a site run by one of the world’s biggest technology companies. Ospina, 32, runs Belle Threads from her home in Hasbrouck Heights, New Jersey. She eventually found dozens of similar listings on the site, all selling knockoffs of her work, and all using the photo of her daughter, posted without her permission on the site. She spent months requesting the site to remove the listings, but was met with silence. She quickly learned that she was not the first business to contend with this: The site’s Chinese owner, Alibaba Group, has drawn scorn from many big Western brands that insist it has turned a blind eye toward widespread counterfeiting during its rise to the top of the Chinese online shopping industry. “You think this would happen to Nike or Louis Vuitton,” she told BuzzFeed News. “You wouldn’t think it would happen to small businesses.” Regulators and multinational brands have long criticized Alibaba, which saw 288% year-on-year revenue growth in its international commerce retail business in the last quarter of 2016. That rapid overseas expansion is partly due to AliExpress, the company’s fast-growing site targeting Western consumers.But AliExpress can have a devastating effect on small American businesses like Ospina’s, BuzzFeed News has found. The owners of 29 different US-based children’s boutiques said their designs have been copied and sold on AliExpress, often using their own photography to advertise them. Some stated that Chinese merchants use AliExpress to sell replicas of their goods in bulk to other US retailers, and also go directly to consumers the majority said they got nowhere when they tried to report the issue to the company. While Ospina and the other small-business owners try in vain to stamp out individual copies of their designs, Alibaba has boomed since the company went public on the New York Stock Exchange in 2014. The value of goods sold on Alibaba’s Chinese marketplaces increased from $394 billion in the 2015 financial year to $485 billion a year later. To compare, Amazon reported nearly $136 billion in net sales last year, and eBay reported $79.5 billion worth of goods were sold on its site. By the sheer size of its marketplace, Alibaba is bigger than both eBay and Amazon combined. Policing the world’s largest online marketplace has become an ongoing challenge for the giant luxury goods corporations that own mega-brands like Louis Vuitton and Burberry. But it’s a winnable fight for those businesses, thanks in part to their armies of lawyers and billions in revenue. For a one-person operation in the American suburbs, it’s a completely different kind of battle. “It feels like a game of whack-a-mole but if you don’t do it you’ll be flooded,” said Roxanne Elings, a partner at the law firm Davis Wright Tremaine who helped shut down more than 4,500 Chinese websites selling counterfeit luxury goods. “With a small company, I feel for them, because it doesn’t take much to really hurt. Luxury and fashion companies don’t like it, but they have the resources to keep it at bay. It’s tougher for small companies.”
SOURCE: WSJ
