According to the labour ministry sources, the tepid start is because of the slow implementation of the scheme and not enough publicity for it. The special package for the garment sector unveiled by the Modi government in June last year doesn’t appear to have made instant appeal to the firms in this labour-intensive industry. Despite a crucial component of the package that the government will bear the entire 12% employer’s contribution to the employees provident fund (EPF) for the first three years, just 20 units have availed themselves of the benefit so far and only 4,300 people have got jobs. Under the Pradhan Mantri Rozgar Protsahan Yojana, the government bears 8.33% of the employer’s contribution to EPF in other sectors. According to the labour ministry sources, the tepid start is because of the slow implementation of the scheme and not enough publicity for it. “The scheme, approved by the Cabinet in June, got other necessary clearances only in August. EPFO had to ready the software and so the enrollment started only from October onwards. Finally, in December, fund disbursements by the government started,” a ministry official said. The software was also such that even a slight incompatibility between the credentials of the employee, as provided by employer, and his/her Aadhaar card details would automatically reject the enrollment, he said. The Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) scheme for the apparel sector was subsequently extended to the made-ups sector too. A budget of `6,006 crore was approved for the scheme, with the objective of creating 1 crore new jobs, additional exports of $30 billion and `74,000 crore more investments over three years. According to government’s estimate, for every `1 crore investment in the garment sector, a minimum of 70 new jobs are created as compared with 10 in steel and 25 in automotive sectors. Analysts said the package did not yield the desired results as sectoral players were perhaps more comfortable with the informal nature of the jobs in the sector since it reduces their burden of complying with labour rules. However, official sources said the number of PMPRPY beneficiaries would go up in the coming months as the government has now decided to bear employers’ contribution of 8.33% of basic pay to the Employees’ Pension Scheme (EPS) for new employees under the PMRPY even if new posts are not created by the firm. The benefit was earlier available only for new posts created. The package for the sector included making EPF optional for employees earning less than Rs 15,000 per month. The idea was to ensure there is more cash in the hands of such workers. Sources said even this has come a cropper since the proposal needs an amendment to the EPF Act and even the process for the same has not started yet. For the proposal to take effect, the EPFO needs approval of its highest decision-making body, the Central Board of Trustees (CBT), to be followed by the Cabinet’s approval and vetting by the law department before it could be tabled in Parliament. Many trade unions are, however, not happy with the proposal, as they think that it would deprive the workers of even a modicum of social security. The package for the garment sector, which policymakers want to be extended to other employment-intensive sectors like leather and footwear, included introduction of fixed-term employment (in line with the seasonal nature of the industry), additional interest subsidy incentives under the technology upgradation fund scheme and enhanced duty drawback coverage for exports.
Source: Financial Express
Summers can be handled better by opting for loose, light-coloured natural fabrics.(Shutterstock) It’s best to wear natural fabrics to beat the heat and to keep skin problems at bay, say experts. Vandana Anurag, founder of The Parisian Boudoir and Salesh Grover of OSL Luxury Collections, have shared ways in which you can deal with sweat:
1) Loose clothes don’t touch your body and allow your body to breathe. Believe it or not, but loose fitting apparel like peplum tops, flowy tops or loose pants will always keep you cooler than a pair of skin tight tank and fit denims. Loose clothing works best for summers. (Shutterstock)
2) Keep yourself cool by switching to breathable and sweat absorbing fabrics. Always dress up in clothes with natural fabrics it will keep your temperature low.
3) Avoid wearing dresses with embellishments as they weigh down your clothes and leads the fabric to touch your skin, trapping the body heat. Embellishments also don’t let air pass through the fabric, thus causing sweating. Stick to light clothes and embellishment-free clothes. (Shutterstock)
4)Wearing a light coloured and relaxed fit T-shirt can save you from sweating. They can be played around in different styles.
5) Summer style is incomplete without chinos and denim shorts. When it comes to shorts, fit and length is the key. You can pair up denim shorts with cotton Polo T-shirt to get the comfort and style.
Source: The Hindustan Times
NEW DELHI: After having opted for multiple rates under the upcoming goods and services tax (GST) regime, India is now looking to keep variations in rates on the same types of products at a minimum to ensure that the tax structure does not get any more complicated. For example, all types of footwear or mobile phones could attract the same rate. “Single rate for one product group will bring simplicity in the structure and make implementation easier,” said a government official, adding that differing rate structures within one segment could lead to unnecessary disputes and litigation. GST is expected to be rolled out on July 1. Globally, most regimes have a single rate. India has adopted a four-tier tax structure of 5%, 12%, 18% and 28%. The rate applicable on most products will be 18%. The highest rate has been pegged in the GST law at 40%. Many experts have said this structure will undermine the basic tenet of GST — a simple structure with at most two rates.
GST COUNCIL TO DECIDE
The GST Council now has to decide which goods and services go into which slabs. The highly anticipated tax reform is expected to lift economic growth by 1-2 percentage points by removing inter-state barriers thus slashing cost and boosting efficiency.
ONE GOOD, MULTIPLE RATES
Currently, both the value-added tax structure in states as also the central excise structure is laden with divergences in rates within a particular category. In some cases, the divergence exists in terms of value even within the same harmonised system of nomenclature (HSN) code. For example, footwear, biscuits, electric lamps, spectacles have differential rates within one HSN code under central excise. Mobiles above a certain price are liable to a higher rate in some states. Pastries, sweet biscuits and cakes attract 6% excise duty, but for those containing chocolate or having a chocolate coating this is 12.5%. Packaged biscuits with a retail price not exceeding Rs 100 per kg are not levied any tax. While 6% excise is levied on leather footwear, other kinds attract 12.5%. In addition, there is a value-based rate as well – nil for retail prices of up to Rs 500 and 6% for Rs 500 to Rs 1,000. Similar duty differentials exist in the case of certain filaments and lamps, mobiles and spectacles frames. The government has been bombarded with petitions, in some cases backed by lawmakers, seeking exemptions for one segment in the same product group.
ONE RATE
While the final call rests with the GST Council, the apex decision-making body for the proposed tax regime, key stakeholders is veering round to the view that multiple rates within single product groups need to be avoided. There have been demands from sectors such as biscuits for value-based differential treatment by exempting those priced below Rs 100 a kg and tax those above it. Experts said uniformity in structure will help keep litigation at bay. “Uniformity in rates of various products in a commodity group will keep the structure neat and free from classification disputes,” said Bipin Sapra, partner, EY. “Tax based on value or MRP (maximum retail price) of the product would unnecessarily complicate the system and the value itself would need to be revised year after year,” said Pratik Jain, leader, indirect taxes, PwC. “Having a uniform rate for a particular HSN classification is definitely a good idea... It will be simple, uniform and less litigation prone.”
Source: Economic Times
Indian taxpayers typically wait till the last moment to file their tax returns. This habit is expected to linger in the regime of the goods and services tax (GST), which would be rolled out on the goods and services tax network (GSTN) throughout the country. The GSTN anticipated this last-minute rush and designed its system to withstand a massive surge in transactions in the last few days. “We have designed the system in a such a way that almost 50 per cent of the registered taxpayers with the GSTN can upload their files (invoices) concurrently in the last few days. Though it may take some time to process all files simultaneously, our system will not crash,” a confident Prakash Kumar, chief executive officer of the GSTN, told Business Standard, while demonstrating how the system would work. Kumar said the GSTN had set up servers in Delhi and Bengaluru to handle the transactions through its portal. It is creating a capacity to handle three billion invoices a month. Officials are also planning to launch awareness campaigns to educate taxpayers on uploading invoices in a timely manner. The ideal situation would be if taxpayers upload their invoices daily. Currently, around eight million traders and companies are registered with various state governments and the Centre. Of these, 5.65 million have registered with the GSTN. These taxpayers have been allotted a GST identification (ID) number — a 15digit number based on their income tax permanent account number (PAN) and the state of registration. This number serves as a unique identifier of the company and is used to track its transactions on both sides — as a buyer and as a seller. Under the GST regime, a taxpayer will typically have to fill two types of returns each month — GSTR-1 for outward supplies made by the taxpayer and GSTR-2 for inward supplies received by the taxpayer. In GSTR-1, the firm will have to list invoice details. It will have to give the GSTN company ID of the firm to whom it is selling goods as well as details of the supplies. The data will reflect in GSTR-2 of the company to which it is selling. On the basis of the supply side data, firms will be able to avail themselves of input tax credit. Take, for example, the case of Maruti Suzuki. The company will upload invoices from outward sales in GSTR-1 and inward supplies received in GSTR-2. The details filled by Maruti in GSTR-1 will reflect in the GSTR-2 of its counterparts, and vice versa. Now, firms have the right to either accept the information uploaded by its counterparty, edit it or reject it. If both parties accept the bills, another form, GSTR-3, will be automatically generated for claiming input tax credit. Deadlines have been set to file these returns. GSTR-1 has to be filled by the 10th of the month, while GSTR-2 is to be filed by the 15th. Every company would be required to file these three tax returns every month and all invoices will have to be uploaded in the system. As companies can avail themselves of input tax credit only after their counterparties have uploaded their invoices and/or accepted them, the system has an inbuilt incentive for companies to push their counterparties to upload their tax details. There are also other forms such as GSTR-5 for non-resident foreign taxpayers and GSTR-10 for government entities. On the GSTN dashboard, a firm will be able to see the various taxes it has paid, notably Central GST, State GST, Integrated GST, and cesses. Officials of the GSTN said that the proceeds of the State GST would be routed to states via the Reserve Bank of India. Firms will also be able to see the mismatches in the receiver and supplier data on their dashboard. A segmentwise breakup of invoices — business-to-business, business-to-consumer, exports, imports, etc — is also available. The GSTN has also tied up with the Customs authority to be able to access data in order to maintain the integrity of the entire chain. To deal with teething issues, big companies such as Maruti Suzuki or Hindustan Unilever, which generate hundreds and thousands of invoices, can use the services of GST Suvidha Providers (GSPs), which would act as intermediaries between companies and the GSTN. And those concerned about the integration of small and medium-sized companies into the system, officials in the GSTN expect GSPs to assist a wide variety of taxpayers, including small and medium enterprises and small retail vendors. This would entail assistance in rearranging the purchase, sales register data in the GSTcompliant format, and integration of their accounting packages/ enterprise resource planning with the GST system.
Source: Business Standard
Barely surviving: Most of the looms at Pontex have fiallen into disuse because of maintenance issues and shortage of raw material. | Photo Credit: T_Singaravelou Shortage of yarn and fall in output have pushed Pontex, Ponfab to the brink The famed handloom sector in Puducherry, a traditional avocation right from the French period in the Union Territory, is now on the verge of extinction because of dwindling number of weavers in all the cooperative societies coupled with acute shortage of raw material and rapid fall in production. After agriculture, the handloom sector was the largest employer in Puducherry with over 10,000 workers registered with the 13 primary weavers’ cooperative societies of Pontex. Pontex was started in 1957 to ensure continuous employment for weavers in the city by arranging regular supply of yarn. The handloom fabric produced by the weavers attached to 13 primary weavers’ cooperative societies was supplied to Pontex for distribution under various government schemes of the Departments of Social Welfare and Adi Dravidar Welfare. Similarly, the Pondicherry Cooperative Handloom Export Development Project, popularly known as Ponfab, was established in the 1980s to cater to the overseas markets. But all these major handloom weavers’ bodies are now in serious financial crisis. The availability of yarn and other raw material for Pontex and Ponfab has reduced and the two major cooperative bodies are at the fag end of their survival.
Vanishing tribe
According to CPI(M) secretary R. Rajangam, “An artificial shortage of looms and other requirements has been created in Pontex landing the weavers in poverty. As against 10,000 weavers at its peak, the cooperative now has only 1,000 workers. Most weavers have left the avocation for good because of lack of proper wages.” Weavers complain that lack of proper administration and planning and want of encouragement of the handloom sector has been chiefly responsible for the present situation of shortage of yarn and other requirements. “The apex cooperative weavers’ society at Thattanchavady has 100 looms. But only 40 of them are operating and the rest are idle because of shortage of yarn. If one part is available, the other part is missing which only cripples the operation of the unit,” says V. Manoharan, a weaver. The situation is similar in all weavers’ cooperative societies in Puducherry. For weavers, the wages mainly depend on the output. “When there is work, we get a maximum of ₹150 a day. “The supply of yarn is erratic and we get work only for four months in a year. We received our wages last on March 21. We have borrowed money from private lenders to meet the family’s daily expenses,” say P. Muthu and his wife M. Selvarani of Bahour.
Source: The Hindu
Creator and her craft - Renuka Reddy with her work in the background Artist Renuka Reddy on how she has connected with her roots by using a technique practised by indigenous artisans in the 17th Century “I was inspired with the way Indian craftsmen had beautifully interpreted designs which came from the West. Even though they were not familiar with the flora and fauna, they interpreted them in their own way. This led to creation of exotic designs in both West and India. This made me ask myself if it is possible to reproduce 17th Century chintz in contemporary times,” says Renuka Reddy, craft and textile specialist for two decades. Bowled over by the beauty and workmanship of historic chintz, Renuka has gone the extra mile by using traditional methodology practised by indigenous craftspersons . This entailed putting handspun and handwoven cotton cloth inside a bucket full of buffalo milk and later sheep dung before exposing it to sunlight. All this was necessary to present chintz — hand-painted, resist and mordant dyed cotton cloth — in its original avatar. This textile revivalist single handedly working on mastering this technique for the past six years at her studio in Bengaluru is showcasing 17 work at her solo exhibition, The Art of Hand Painted Chintz, at New Delhi’s Gallery Art Motif. While taking a look at her work, one can only speculate identity of timeless flowers. Red rose is palpable but others have been created through imagination. Leaves look like botanical drawings and branches are extension of undulated trees. “I am focusing more on technique than art form here. The works are reproductions of works done by Indian artists,” says Renuka, whose Chintz project could not have materialised without mastering wax resist technique on cotton. Explaining how she combined her extensive studies and work in textiles to follow on the footsteps of Indian artisans of the 17th Century, Renuka, , says: “I was inspired by book ‘Chintz, Indian textiles for the west’ penned by Rosemary Crill, former curator at Victoria and Albert Museum, London. “Rosemary gave me a lot of support. But I could not find craftsperson who could do this intricate work. So I did a lot of research for six years. I went through thousands of research papers of international journals. Working in Faureia Automotive Seating in the U.S. helped me in writing scientific thesis and this prepared me how to plan. My job was to evaluate properties of technical textiles. I could not have done all this without experience. Describing Chintz as a tedious process involving chemistry and plenty of patience, Renuka says: “To get chintz one has to expose cotton cloth to harsh sunlight for 21 days. The challenge before me how to ensure that the dyed colour survived after three weeks in sunlight. So I had to do lot of experimentations and find my own way. The process involves step by step approach. I soaked and rubbed cotton cloth with myrobalan and buffalo milk, which due to its fat content allows cotton to become paper like. Later, the handspun and handwoven cloth was dried under sun. This was crucial as it allowed mordants and dyes to be painted on cloth without spreading. Black outlines were drawn with fermented iron while red outlines were drawn with alum mordant. Cloth was washed and dyed in a bath of madder to develop reds and deepen black. Wax resist lines were painted on the cloth to get the fine white lines, which is a quintessential characteristic of chintz. Cloth was treated with buffalo milk to prepare it for painting blues and yellows. Wax lines were again painted to retain the white background colour in blue and green areas. Cloth was finally washed again and treated with sheep dung and sunlight for the last time.” What’s next? “My next big challenge is mastering indigo. Indian artisans would cover all areas of the cloth and dip in indigo. They were so good in it that there were no cracks,” she says with pride.
Source: The Hindu
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 54.59 per barrel (bbl) on 14.04.2017. This was lower than the price of US$ 54.92 per bbl on previous publishing day of 12.04.2017. In rupee terms, the price of Indian Basket decreased to Rs.3511.07 per bbl on 14.04.2017 as compared to Rs. 3552.86 per bbl on 12.04.2017. Rupee closed stronger at Rs. 64.32 per US$ on 14.04.2017 as compared to Rs. 64.69 per US$ on 12.04.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 14, 2017 (Previous trading day i.e. 12.04.2017) |
Pricing Fortnight for 16.04.2017 (March 30, 2017 to April 11, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.59 (54.92) |
52.87 |
|
(Rs/bbl |
3511.07 (3552.86) |
3423.86 |
|
|
Exchange Rate |
(Rs/$) |
64.32 (64.69) |
64.76 |
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1106.92 |
USD/Ton |
-2.24% |
4/16/2017 |
|
VSF |
2322.72 |
USD/Ton |
-6.98% |
4/16/2017 |
|
ASF |
2221.10 |
USD/Ton |
0% |
4/16/2017 |
|
Polyester POY |
1139.58 |
USD/Ton |
-1.07% |
4/16/2017 |
|
Nylon FDY |
2714.68 |
USD/Ton |
-18.70% |
4/16/2017 |
|
40D Spandex |
5371.29 |
USD/Ton |
1.37% |
4/16/2017 |
|
Polyester DTY |
1364.60 |
USD/Ton |
-3.09% |
4/16/2017 |
|
Nylon POY |
3019.54 |
USD/Ton |
-17.46% |
4/16/2017 |
|
Acrylic Top 3D |
5821.32 |
USD/Ton |
0% |
4/16/2017 |
|
Polyester FDY |
1379.12 |
USD/Ton |
-2.06% |
4/16/2017 |
|
Nylon DTY |
2554.99 |
USD/Ton |
-18.89% |
4/16/2017 |
|
Viscose Long Filament |
2395.31 |
USD/Ton |
0% |
4/16/2017 |
|
30S Spun Rayon Yarn |
2917.92 |
USD/Ton |
-4.29% |
4/16/2017 |
|
32S Polyester Yarn |
1713.01 |
USD/Ton |
-1.26% |
4/16/2017 |
|
45S T/C Yarn |
2685.65 |
USD/Ton |
-0.54% |
4/16/2017 |
|
40S Rayon Yarn |
1829.14 |
USD/Ton |
-4.55% |
4/16/2017 |
|
T/R Yarn 65/35 32S |
2250.14 |
USD/Ton |
-0.64% |
4/16/2017 |
|
45S Polyester Yarn |
3077.60 |
USD/Ton |
-4.07% |
4/16/2017 |
|
T/C Yarn 65/35 32S |
2351.75 |
USD/Ton |
1.25% |
4/16/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
4/16/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
4/16/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0.12% |
4/16/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
-1.09% |
4/16/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
4/16/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14517 dtd. 16/04/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Garment shipments being stacked at a warehouse. Apparel shipment to potential nontraditional markets declined sharply in the third quarter of the current fiscal year, in a blow to the country's effort to diversify exports base, officials said. Exports to Brazil, Mexico, South Africa and Korea dropped by 26.97 per cent, 16.97 per cent, 16.86 per cent and 14.87 per cent respectively in July-March period of 2016-17 fiscal compared to the corresponding period of last fiscal, according to official data. Shipment to Australia and India declined by more than 7.0 per cent, while exports to Japan and Turkey witnessed a meagre growth of 2.11 per cent and 0.29 per cent respectively in the same period. The nontraditional emerging markets for apparels are Australia, Japan, China, Chile, Brazil, Japan, Russia, South Africa, New Zealand, Malaysia, Korea, India and Turkey. The total exports of readymade garment products to the non-traditional markets grew by 1.57 per cent in the July-March period of the fiscal year 2016-17, according to data. On the other hand, income from some traditional and major markets such as Belgium, the UK, the USA and Canada fell by 6.89 per cent, 6.85 per cent, 7.56 per cent and 6.41 per cent respectively during July-March of 2016-17 fiscal. Recording a slow growth of 2.39 per cent, the country fetched $20.92 billion from apparel exports during July-March period of the current fiscal. Apparel manufacturers attributed sluggish global demand followed by low unit price of garment items and high duty in the nontraditional markets to the dismal growth. They also blamed internal issues such as an increase in cost of doing business and closure of a good number of factories due to compliance requirements to such a situation. They also raised another factor that import from Bangladesh was getting costlier due to a strong local currency against the US dollar. Moreover, the currencies are weaker in the importing countries, especially in Brazil, India, and Turkey, which contributed to sapping demand. Exporters and experts blamed the high duty--33 per cent in Brazil, 30 per cent in both Turkey and Mexico and 40 to 50 per cent in South Africa for the poor exports to those countries. The global demand for apparel is declining in the last couple of years putting a negative impact on local exports, Faruque Hassan, a vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the FE. The price of apparel also fell while cost of doing business has significantly gone up, he added. Currency devaluation in importing countries is another factor, Mahmud Hasan Khan, another BGMEA vice president, said adding local currency still remained stronger than US dollar. Many factories have been shut due to compliance issues, which also left put an adverse impact on the production level, he said. Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), recommended the government's measures for convincing the nontraditional markets to cut duty while reviewing the incentive package to enhance the sector's competitiveness.
Source: The Financial Express Bangladesh
CHITTAGONG, Apr 16: Minister Nurul Islam Nahid has termed the country's readymade garment (RMG) industry a goose that lays golden eggs as some 4.5 million female workers alongside a good total of male ones are employed in this sector. He urged the garment exporters to lay greater emphasis on making the industry reliant on local youths having skills of international standard especially in the field of design and fashion to cope with other global RMG exporters. The education minister said that the foreign experts employed in making newer designs and fashion in the RMG buying houses are earning a lot of money staying herein our country by means of their superior performance. "Our youths can become even better quality masters and experts in the field if provided with proper academic environment which is prevailing in the CBIFT and BUFT as they have developed designs suiting the choice and taste of the foreign buyers," he said. The minister said this while speaking as the chief guest at the fourth anniversary of the CBIFT (Chittagong BGMEA Institute of Fashion and Technology) and passing out ceremony of the first batch trainees who successfully completed four-year BSc Honours course from the institute. The event was organised here Saturday night at the auditorium of Chittagong Club Ltd in the port city. A total of 14 students were given the degree of BSc Honours from the Apparel Manufacture and Technology (AMT) with 12 more from the Fashion Design and Technology (FDT). Presided over by the President of the governing body of the CBIFT and Managing Director of Eastern Group Nasir Uddin Chowdhury, the ceremony was addressed as special guests by Vice-Chancellor of Chittagong University Professor Iftekhar Uddin Chowdhury and BGMEA President Siddiqur Rahman. First Vice-President of the BGMEA in Chittagong Moinuddin Ahmed Mintu and Founder Chairman of the Trustee Board of the BUFT (BGMEA University of Fashion and Technology) Mujaffar Uddin Siddiq also spoke as guests of honour. The minister said there was only one per cent skilled workforce in the country when this government was voted to power. Now the percentage stands at 26. By the year 2020, this figure is expected to stand at 65. "Days will come when we will export quality technicians and skilled manpower in different fields from this country to other countries instead of importing," he hoped.
Source: The Financial Express Bangladesh
Due to sale pressure observed in major sectors, indices declined sharply, although turnover increased a little bit following the investors' participation. At the end of the session, the DSE broad index DSEX declined 0.93 per cent or 53.03 points to close at 5592.83. According to MTB Capital, the premier bourse opened with a negative mood and continued the falling trend till the closure. "Investors seemed lack of confidence as most of the major and small-cap stocks failed to perform," said the MTB Capital. The shariah index DSES lost 0.62 per cent or 8.11 points to close at 1286.76, whereas the blue chip index DS30 went down by 1.32 per cent or 27.63 points to close at 2059.70. Of 326 issues traded, 90 advanced, 196 declined and 40 were unchanged on the premier bourse. 'Drastic' sale pressure was observed in some heavy weight stocks of bank, NBFI and engineering sectors, according to MTB Capital. "Buying spree of many optimistic investors led the market to witness a turnover of above Tk 7.0 billion," said the MTB capital, adding that such turnover value was not enough to satisfy investors. The turnover stood at above Tk 7.24 billion which is 21.57 per cent higher than the turnover of the previous session. Of total turnover, Tk 203 million came from transactions executed in spot market. According to EBL Securities, the premier bourse edged significantly lower amid vigilance. "The market initiated the day's session with a downbeat tune that continued till the end of session as investors spurred their selling spree over sector-specific stocks, especially from bank, financial institutions and food & allied sectors," said the EBL Securities. Among the major sectors which declined, bank lost 1.4 per cent, engineering 1.0 per cent, financial institutions 2.7 per cent, fuel & power 0.2 per cent, pharmaceuticals & chemicals 0.5 per cent, telecommunication 0.4 per cent and textile 0.3 per cent. Among the gaining sectors, IT and jute advanced 1.8 per cent and 0.2 per cent respectively. Investors' activities were concentrated mostly on textile which contributed 24.50 per cent in market turnover followed by bank 17.0 per cent, financial institutions 12.30 per cent and pharmaceuticals & chemicals 10.20 per cent. LankaBangla Finance topped the turnover chart with a value of Tk 466 million, followed by City Bank Tk 308 million, Evince Textile Tk 243 million, Paramount Textile Tk 187 million and Beximco Tk 176 million. Central Pharmaceuticals was the number one gainer with a rise of 9.80 per cent to close at Tk 32.30, whereas Standard Bank topped the losers' chart after declining 11.02 per cent to close at Tk 11.30.
Source: Financial Express Bangladesh
KARACHI: A large number of workers protested on Sunday against a textile mill for allegedly sacking them unlawfully without paying them their dues. Around 100 workers held a demonstration outside the Karachi Press Club, holding placards against the Rajby Textiles. According to the protestors, the 120 labourers were working at the mill for the past four to 12 years but the company suddenly terminated their permanent employment unlawfully and deprived them of all their legal benefits. They said that since March 2016, they were waiting for their dues to be paid and had moved the labour department, labour courts, National Industrial Relations Commission and Supreme Court as well. They demanded that the company should pay the pending dues amounting to Rs16 million to the workers as well as the gratuity and bonus or else they will resort to protest outside the headquarters of the brands that procure its products from the company. Commenting on the issue, Rajby Textiles General Manager Masood Naqvi said the company did not take any illegal measure and added that the workers were trying to blackmail the company.
Source: The Express Tribune
Despite acknowledging the recent upward trend, earlier in April, the International Cotton Advisory Committee (ICAC) warned that cotton prices will get down next season, regardless the smaller world inventory. The industry body had previously estimated average cotton prices in 2017-18 at 73 US dollar cents a pound, as measured by the Cotlook A index of physical values. If meeting this forecast, prices would come 5 cents lower than the 78 cents a pound expected for 2016-17, on an August-to-July basis, and bring to an end the recovery from the multi-year low of 70 cents a pound recorded last season, summed up analysts from ‘AgriMoney’. The forecast comes amid growing uncertainty in cotton markets, as investors closely watch the dichotomy of the currently strong demand for U.S. exports of cotton and the prospect of a surge in the country's plantings this year. On the latter, the U.S. Department of Agriculture issued in early April a production outlook, pegging cotton plantings this year at 12.2m acres, what implies a 21 percent YoY increase. Furthermore, this estimate means 800,000 acres more than investors had expected, according to a Reuters survey. ”Global consumption may recover by 1 percent in 2017-18… as cotton prices decrease” The ICAC acknowledged that "high yields and firm prices will encourage farmers in the U.S. to expand cotton area in 2017-18". However, the intergovernmental group said that "Production is expected to remain unchanged from 2016-17 at 3.8m tonnes [17.5m bales] as the average yield is assumed to be closer to the five-year average." "Global consumption may recover by 1 percent in 2017-18… as cotton prices decrease, and growth in the global economy is expected to be much stronger in 2017 and 2018." The ICAC's comments come amid significant debate among cotton investors over the significance of the US sowings data, which Rabobank termed a "strong bearish signal" for futures. "With cotton prices particularly attractive against alternative row crops, the market anticipated the increase, but certainly not to the extent of the USDA," Dutch Rabobank anticipated in a market research issued at the beginning of the month. Similarly, Commerzbank said that after the USDA plantings figure, "it is more likely that the 2017-18 crop year will see a marked rise in the US cotton crop", a factor which could provoke selling pressure as speculators unwind a near-record net long in futures and options in the fibre. Looking ahead, the German broker added that "Correction potential… is likely to have materialised by now," Commerzbank said, adding that this "points to another price fall in the short term".
Source: Fashion United.
The textile industry has urged Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar to release funds for disbursement of duty drawback to exporters against realisation of export proceeds, besides paying refunds of sales tax to the exporters against the already issued RPOs to save the industry from the liquidity crisis. In a joint press conference at Aptma House - along with other textile associations including Pakistan Hosiery Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association and Towel Manufacturers Association - All Pakistan Textile Mills Association Chairman Aamir Fayyaz said drawback of taxes, as announced by the prime minister against realisation of exports should be processed immediately. He said the amount to be disbursed over the last three months is estimated at Rs30 billion (Rs 10 billion per month) against the export package of Rs180 billion spread over 18 months period. He said the FBR has exercised unjust tactics to delay refund payment of exporters for the 2016-17 tax period, as it has issued instructions for rolling back of RPOs to all the chief commissioners. He said any such situation would cause serious liquidity crunch for exporters and manufacturers for processing further export orders. Pakistan Hosiery Manufacturers Association Chairman Adil Butt criticised the government asked the finance minister to apologize for not fulfilling the commitments with the industry. He said the government made several commitments on different occasions to facilitate the industry, including payment of sales tax refunds and PM’s Rs180 billion export package, but not a single promise was fulfilled unfortunately. He said the PM’s package for the export-oriented industries will not meet the target unless exporters’ outstanding refunds are cleared along with the release of funds under the PM’s package without any delay. He said that hosiery exporters have not received their rebates and their major portion of working capital is stuck up with the Customs Department. The PHMA chairman said, “Benefit of GSP Plus move from the European Union had been virtually nullified due to our in-competiveness as compared with Bangladesh, India, Sri Lanka and China.” The declining Euro had thrown a big blow on the face of industry and thus the exporters to European countries had to bear big losses. The export package will provide support to the dwindling textile export sector and can put it on right track, he added. PRGMEA former chairman Sajid Minhas, addressing the press conference, said the government was losing its credibility with respect to commitments it has made repeatedly to the industry and exporters. He said immediate steps are needed to address the adverse situation arising out of the liquidity crunch, as the exporters are under the threat of losing their export orders. He pointed out that the prime minister had announced export-led growth package on January 10, 2017. Three months have been passed so far and no payment has been made to exporters against the realisation of exports, he added. He urged the government to act decisively and rescue the value-added textile industry from financial crisis, as worst ever cash flow crunch has brought the largest industry to the verge of disaster. Although very late, but this step of the government will help the whole textile sector, which had become uncompetitive in the international market due to higher cost of production in Pakistan as compared to regional countries, he added. He urged the prime minister to direct the authorities concerned to start releasing the funds under PM’s package.
Source: The Nation.
All Pakistan Textile Mills Association (APTMA) Senior Vice Chairman Zahid Mazhar with a keen interest to accelerate Pakistan’s textile industry invited Chinese investors to take advantage of the liberal trade and investment policies in the country by entering into joint ventures with Pakistani entrepreneurs in the textile industry. Highlighting the trade and investment policies, Mazhar said the government was an advocate of open and deregulated market-driven economy and was creating an enabling environment by investing heavily in infrastructure and capacity building with special emphasis on attracting foreign investment and duty-free import of machinery, equipment and raw material. Tianjin Peoples Association for Friendship with Foreign Countries Vice President Chen Weiming has said that high cost of doing business and environmental challenges in China have made Pakistan an ideal destination for the relocation of Chinese textile industry. The APTMA Chairman ,thus, welcomed Chinese interest in relocating the industry to Pakistan. Mazhar also pointed out that the cost of doing business in Pakistan was lower compared to China, calling it one of the biggest advantages for the Chinese which encouraged them to invest in the textile sector of Pakistan. Briefing on the environment for foreign investment, he said the government had allowed foreign direct investment in all sectors, treated local and foreign investment equally, permitted 100% foreign equity investment, required no government sanction and allowed remittance of royalty, technical and franchise fee, capital, profits and dividends. He stressed that the recently announced export-led growth package including zero-rated sales tax for the textile industry, drawback of local taxes and levies at 4% on yarn and grey fabric, 5% on processed fabric, 6% on textile made-ups and 7% on textile garments against the realisation of export proceeds provided an added advantage for investment in Pakistan. Chinese counterpart Chen said that as the world economy is developing in the face of new challenges and choices, the company is striving to develop import and export trade through the adjustment of industrial structure. Their aim is multidisciplinary, multiple-format, diversified development of modern textile enterprises in the future.
Source: YNFX.
Only one Bangladeshi garment manufacturer could hit $500 million in exports in a year -- a puzzling statistic for a country that is the second largest apparel supplier in the world. There are a bunch of companies whose export receipts amount to more than $400 million but less than $500 million, said Mohammed Nasir, vice-president of the Bangladesh Garment Manufacturers and Exporters Association. Ha-Meem Group, which counts retail giants like Gap, H&M, Mango and Zara as its major buyers, is the only company to have managed to break out from that bracket, according to data from the BGMEA. Established in 1984 on a small scale, the company's annual export receipt stood at $535 million in 2015-16. “I have a target to reach $1 billion in annual exports in the next six to seven years,” said AK Azad, managing director of Ha-Meem Group. It is not an impracticable target as the future export trend is positive, he said. “All we need is political stability in the country.” To achieve that goal, Azad has been strengthening Ha-Meem's capacity, especially to manufacture the denim and woven products. Currently, Ha-Meem Group has 23 units and employs around 50,000 workers. Export receipts of less than $500 million do not mean that the other companies are performing poorly, Nasir said. “Many companies are performing very well and their turnover will even cross the $1-billion mark soon,” he added. One such company that is on the cusp of hitting the milestone of $500 million in export receipts is Nassa Group. “The export growth trend is good. I am very much hopeful that we will reach $500 million in exports very soon,” said Nazrul Islam Mazumder, chairman of Nassa Group.
DBL Group is on the same boat as Nassa.
“I hope my group can cross the $500-million mark next year,” said MA Jabbar, managing director of DBL Group. He went on to state that it will not be long before the other big garment companies hit the milestone like Ha-Meem, as they have the production capacity and the support from international retailers.Bangladesh exported garment items worth $28.06 billion last fiscal year and is chasing a target of $30.37 billion this year. China has a 37.50 percent share of the $450 billion global apparel trade, followed by Bangladesh that has a 6 percent share.
Source: The Daily Star.
All Pakistan Textile Mills Association (APTMA) Senior Vice Chairman Zahid Mazhar with a keen interest to accelerate Pakistan’s textile industry invited Chinese investors to take advantage of the liberal trade and investment policies in the country by entering into joint ventures with Pakistani entrepreneurs in the textile industry. Highlighting the trade and investment policies, Mazhar said the government was an advocate of open and deregulated market-driven economy and was creating an enabling environment by investing heavily in infrastructure and capacity building with special emphasis on attracting foreign investment and duty-free import of machinery, equipment and raw material. Tianjin Peoples Association for Friendship with Foreign Countries Vice President Chen Weiming has said that high cost of doing business and environmental challenges in China have made Pakistan an ideal destination for the relocation of Chinese textile industry. The APTMA Chairman ,thus, welcomed Chinese interest in relocating the industry to Pakistan. Mazhar also pointed out that the cost of doing business in Pakistan was lower compared to China, calling it one of the biggest advantages for the Chinese which encouraged them to invest in the textile sector of Pakistan. Briefing on the environment for foreign investment, he said the government had allowed foreign direct investment in all sectors, treated local and foreign investment equally, permitted 100% foreign equity investment, required no government sanction and allowed remittance of royalty, technical and franchise fee, capital, profits and dividends. He stressed that the recently announced export-led growth package including zero-rated sales tax for the textile industry, drawback of local taxes and levies at 4% on yarn and grey fabric, 5% on processed fabric, 6% on textile made-ups and 7% on textile garments against the realisation of export proceeds provided an added advantage for investment in Pakistan. Chinese counterpart Chen said that as the world economy is developing in the face of new challenges and choices, the company is striving to develop import and export trade through the adjustment of industrial structure. Their aim is multidisciplinary, multiple-format, diversified development of modern textile enterprises in the future.
Source: YNFX.
