The textile industry of India has urged the government to place all products across the textile and apparel value chain under the lowest slab of the Goods and Services Tax (GST). The industry seeks 5 per cent taxes without exemptions in order to avoid all possibilities of tax evasion. The applicable rates are currently between 5 and 7 per cent. The Clothing Manufacturers Association of India (CMAI) said in a representation to the commerce ministry that low GST rate for the textile sector will boost domestic textile production and encourage voluntary compliance. The move will also help the country generate 35 million jobs and attract investments worth $200 billion by 2025. The demand is essentially being made as the textile sector is the second largest employer after farming. It employs 45 million people directly and 60 million people indirectly. The textile sector also contributes 10 per cent in India's total manufacturing. Textile items weightage in the Consumer Price Index is of 7 per cent. A uniform GST rate of 5 per cent without exemptions will put an end to blocked input taxes and tax cascading. It will also increase revenue for the government. The tax revenue across the sector could increase by Rs 7,000 crore with a uniform GST rate and 50 per cent industry compliance, said Rahul Mehta, president, CMAI. A GST rate structure with multiple rates could result in distorting production and consumption, and compromise fibre neutrality. Producers could move on to manufacture products using fabrics that fall under the lower slab, according to a report in a leading daily. A uniform GST rate can lead to a promising future for the textile sector, added Mehta. By extending a uniform GST rate to fabrics, which are currently exempted, could result in the government generating Rs 10,850 crore even with only 50 per cent compliance.
Source: Fibre2Fashion
Apparel exporters in Tirupur have set their sights on making the cluster a ‘zero defect textile manufacturing hub’ in India. To achieve this vision, they have sought government support for a one-time intervention. Recalling Prime Minister Narendra Modi’s call for making Indian manufacturing sector “zero defect and zero effect” from the ramparts of Red Fort last August, Tirupur Exporters’ Association president Raja M Shanmugham told this correspondent that Tirupur industrial cluster is best suited to implement the initiative. NIFT-TEA role Knitwear fashion institute NIFT-TEA, founded by exporters, is already involved in running several projects of the government, including skill development initiatives, with the support of the Centre and state. “The institute, in our perception is in a unique position to undertake this exercise of making Tirupur cluster a zero defect textile manufacturing hub, albeit with support from all the stakeholders,” Shanmugham said. A NIFT-TEA study has revealed that at least two lakh employees will need to be upskilled in the Tirupur Apparel cluster.“There is a need to modify the existing skill development scheme guidelines to include “Skill Up gradation” as the focus is now only towards creation of new skilled labour. “As more than 80 per cent of the industries in Tirupur are categorised as MSME (Micro Small Medium Enterprises), they lack the scale for undertaking efficiency improvement initiative. Even a cursory review of the operation of the units here would reveal that there is huge scope for improving the operational efficiency of MSMEs. These units are not generally keen to take a professional approach because of their size, knowledge levels and capacity to absorb costs,” he said. “A massive state-funded initiative is the need of the hour to make the cluster a zero defect manufacturing hub. Even a 10 per cent reduction in wastage/ defects would result in a saving of ₹2,000 crore a year, notwithstanding the additional growth in business volume,” he added.
Source: Business Line
The Indian Texpreneurs Federation (ITF) has urged the state government of Tamil Nadu to introduce a 3-year textile policy to support the industry. The state has a robust eco-system for manufacturing textiles and garments and the government should introduce a policy to help sustain as well as improve the existing production units in the state. States such as Madhya Pradesh, Maharashtra, Gujarat and Telangana already have such policies, which are bringing textile investments into these states. The federation also said that various states including states that have cotton offer capital subsidies, giving a price advantage to textile units. With the new textile policy, the government should help improve technology in manufacturing units of the state and work towards making them more energy efficient. Area under cotton in Tamil Nadu should also be increased. Some of the other measures include skill development initiatives, promoting 'Made in Tamil Nadu' brand and working towards the growth of Tiruppur, Karur and Erode clusters, according to a report in a leading daily. The federation also wants the state government to support the e-commerce sector and promote textile items made of man-made fibres. It seeks a policy that is along the lines of the Central government's textile policy. The government should also set up a task force to discuss its growth plans with the industry. Members of ITF will meet the state's CM and other ministers to propose the introduction of the textile policy.
Source: Fibre2Fashion
On the occasion of the 126th birth anniversary of the architect of the Indian constitution Dr. B. R. Ambedkar the Union Textiles Minister Mrs. Smriti Zubin Irani distributed benefits under welfare schemes of the Ministry to beneficiaries belonging to Scheduled Castes from various parts of the country. In a special programme held in Vigyan Bhawan New the Minister also interacted through videoconferencing with handloom weavers handicraft artisans silk reelers and skill development trainees at various locations in five states apart from the beneficiaries who were present at the function in Delhi. The Minister recalled the testimony of a weaver from Odisha who has been able to double his monthly income from Rs. 4 000 to Rs. 8 000 with the help of Pradhan Mantri MUDRA Yojana. She also noted the story of a labourer’s son from Indore who was able to get placed under ISDS and is now able to dream of a better future. Mrs. Irani also spoke of a girl from Bareilly who demonstrated the benefits of the improved artisan tool-kit via video-conference to the Minister and others present here. Encouraging her to be an instructor as well Mrs. Irani directed the officials to utilize her skills in communicating the benefits of improved toolkits to other artisans. Stating that Dr. Ambedkar dreamed of an India where every Indian would be able to contribute to nation building by one’s own honest efforts and education the Minister appreciated everyone associated with the textiles sector for their contribution in the economic empowerment of people such as these. An MoU was signed on the occasion between Development Commissioner (Handlooms) Ministry of Textiles and National Schedule Castes Finance and Development Corporation Ministry of Social Justice & Empowerment. Mrs. Smriti Zubin Irani said that the MoU is a great example of collaboration within the Government. Noting that the year is being observed as ‘Garib Kalyan Varsh’ the Minister said that the efforts by the Government under the leadership of PM Shri Narendra Modi to join people using AADHAAR and MUDRA is leading to the direct transfer of benefits to the bank accounts of the poor. The Minister noted that her Ministry is making special Continued on Page 4 efforts for the welfare of about 20 lakh Scheduled Caste citizens working in handicraft handloom and sericulture sectors. She said that the Government has decided to provide 100% subsidy to SC weavers for construction of work-shed. She also recalled the launch of PowerTex India for strengthening of power loom sector stating that 75% subsidy is being given to SC beneficiaries for upgradation of powerlooms. The Minister announced that the Government has decided to provide 75% subsidy in fees for school education via NIOS and university education via IGNOU for families of SC weavers and artisans. The Union Minister for Social Justice & Empowerment thanked the Union Textiles Minister for working at a fast pace for welfare of SC beneficiaries in the textiles sector. He said that the MoU signed today would advance the welfare of people belonging to Scheduled Castes in line with the governance philosophy of ‘Sabka Saath Sabka Vikas’. The Minister also underscored that the Ministry of Textiles has a significant role to play in the fulfillment of this goal. Textile Ministry making special efforts for welfare of SC beneficiaries Continued from Page 1 Col 6 The Textiles Minister interacted with beneficiaries of silk projects in Jammu and Nainital and distributed cheques and tool kits to five beneficiaries of silk projects. She also distributed improved tool kits to five SC artisans after interacting with beneficiaries in Bareilly Handicrafts Mega Cluster.Mrs. Irani also interacted with MUDRA loan handloom weaver beneficiaries at Bargarh Odisha and distributed MUDRA loans to four handloom weavers and three handicraft artisans online.sumangal@gmail.com the occasion. The Minister interacted with ISDS beneficiaries at Indore and distributed ISDS certificates to 5 ISDS trainees belonging to Scheduled Castes. Besides many artisans handloom weavers silk reelers and ISDS trainees from various parts of India belonging to Scheduled Castes Central Silk Board K M Hanumantharayappa Secretary Textiles Mrs. Rashmi Verma Secretary Ministry of Social Justice and Empowerment Mrs. G. Latha Krishna Rao and other dignitaries were also present on the occasion.
Source: Tecoya Trend
Powerloom unit owners and workers in Coimbatore and Tirupur districts will go on a relay hunger strike from tomorrow as tripartite talks to find a solution to the wage issue of job working units remained inconclusive. The units have been on an indefinite strike from April 2. The talks were convened by Coimbatore District Collector T N Hariharan, in which officials from the Labour Department, representatives of textile manufacturers and job working units participated. At the meet, held in the presence of both Collectors, demands were put forth for payment of full wages as agreed in 2014 in as manufacturers had reportedly stopped paying the new wages after a few months. R Palniswamy, president of Coimbatore district powerloom job working unit association, allged that despite going on an indefinite strike and staging various types of agitations, the manufacturers had refused to pay full wages and also arrears, even as the new wage settlement is to be reached this year. This had led to lot of financial difficulty to owners, who run nearly two lakh power looms,he said,adding the association had for long remained silent, considering the prevailing political situation in Tamil Nadu, but had gone on indefinite strike from April 2. Government officials and representatives of powerloom owners association participated in the talks today, whereas only a few manufacturers attended, as a result of which the issue could be discussed in detail. In view of this the collector postponed the talks to April 24, he said, adding that unit owners decided to observe relay hunger strike from tomorrow onwards.
Source: Business Standard
India's annual rate of inflation, based on monthly wholesale price index (WPI), increased to 5.70 per cent for March 2017 over corresponding month of the previous year. The index for textiles sub-group rose by 0.2 per cent to 142.9 in March from 142.6 in February 2017 due to higher price of tyre cord fabric (5 per cent) and man-made fibre (1 per cent). Build up inflation rate in the financial year 2016-17 so far stood at 5.70 per cent compared to a build up rate of minus 0.45 per cent in the same period of the 2015-16. Annual rate of inflation was 6.55 per cent for February 2017 and minus 0.45 per cent in March 2016. Meanwhile, the official WPI for all commodities (Base: 2004-05 = 100) for the month of March, 2017 declined by 0.1 per cent to 185.3 from 185.5 for the previous month, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry. The index for manufactured products (weight 64.97 per cent) for March, 2017 declined by 0.1 per cent to 158.7 from 158.8 for the previous month. The index for textiles sub-group rose by 0.2 per cent to 142.9 from 142.6 for the previous month due to higher price of tyre cord fabric (5 per cent) and gunny and hessian cloth, man-made fibre, jute yarn and cotton fabric (1 per cent each). The index for primary articles (weight 20.12 per cent) declined by 0.2 per cent to 257.5 from 258.1 for the previous month. The index for fuel and power (weight 14.91 per cent) also declined by 0.1 per cent to 203.7 from 203.8 for the previous month due to lower price of bitumen and furnace oil. However, the price of LPG and aviation turbine fuel moved up. Meanwhile, the all-India consumer price index (CPI) on base 2012=100 stood at 3.81 (provisional) in March, 2017 compared to 3.65 (final) in February, 2017 and 4.83 in March, 2016, according to the Central Statistics Office, ministry of statistics and programme implementation.
Source: Fibre2Fashion
The CMD, National Scheduled Castes Finance and Development Corporation (NSFDC) under Ministry of Social Justice and Empowerment and Development Commissioner (Handlooms) under Ministry of Textiles signed a Memorandum of Understanding (MoU). The objective of signing this MoU is to help Scheduled Caste weavers and their families by promoting production and marketing of high value quality Handlooms products at Block level Cluster in various States like Gujarat, Maharashtra, Rajasthan, Odisha etc. Handlooms Sector is a part of Textile Industry, the second largest economic activity after agriculture. There are around 44 lakh Handloom weavers in the country out of which 3.90 lakh are Scheduled Caste Weavers. Under the cluster approach, new strategy for promoting production and marketing of high value quality handloom products shall be adopted to ensure more earnings of the Scheduled Caste Handloom Weavers. In this endeavor, both the MoU signing parties shall popularize the schemes of DC (Handlooms) amongst the SC weavers through Awareness Programmes and advertisements in electronic/print media in SC weavers concentrated areas and collaborate for capacity building including skill upgradation and economic development of SC weavers and their families for achieving the desired outcome. Exhibitions/Fairs shall be organized by both the parties for providing marketing assistance to SC weavers for enhancing their earnings. Both the parties shall also organize relevant skill development programmes for up-gradation of skills of the scheduled caste weavers in clusters and also for sharing knowledge and experience. This endeavour shall enable scheduled caste weavers to sharpen their skills for production and marketing of high value quality handloom products and better marketing linkages and therefore to have more income.
Source: Business Standard
In the current fiscal, abof.com, the online fashion store of the Aditya Birla Group plans to grow revenues three times over the previous fiscal. The store currently retails about 125 brands, and will also add US brand Forever 21, in the near future. Despite plans to increase business three times, the portal does not expect capital requirement to grow. This was informed by abof.com CEO Prashant Gupta to a news agency who also added that the gross merchandise value (GMV) of the ecommerce store in its peak month was Rs 25 crore in fiscal 2016-17. "We are not focused on discounting goods, but for the next 3-5 years will have to discount goods to a smaller extent to stay in the game," Gupta informed.
Source: Fibre2Fashion
Traditionally designed Indian textiles boast of motifs representative of the Indian culture. Flowers, fruits, birds or animals: here are some of the popular motifs and the idea or belief that they signify. The most basic unit of a design or the smallest unit of a pattern is a motif. Often inspired by nature and also socioeconomic, cultural or religious factors, the motifs on traditional Indian apparel are all distinct and mostly very colourfully represented. Part of the Indian fashion regime since ancient time when kings ruled the country, these motifs are often also a representation of the different styles from an era gone by. Also derived from architectures and religious philosophies, birds, flowers, fruits and even animals have stories to tell, beliefs to share and this list below shares the most common of these motifs.
Peacock motif
Found in paintings from the Indus Valley Civilisation, Buddhist sculptures, artefacts from the Gupta period and Mughal miniatures, peacock inspired designs have been found in art from different ages. Although the fact that it represented the same idea is not certainly known, the national bird is now a symbol of immortality, courtship and fertility. Motifs of the peacock are found commonly on traditionally designed fabrics with more embellished designs on bridal wear as in some cultures, the peacock signifies the completeness of being a woman. It is also believed to carry a sense of energy that comes from its renewal of feathers every year.
Parrot motif
Symbolising passion and courtship, a motif of a parrot is commonly found in artwork telling the story of Lord Krishna and his lover, Radha, a tale well recited in Hindu epics and sagas. Generally found on textiles from West Bengal, Gujarat and Rajasthan, the bird also represents lovers’ associations and is often used in couture designed for both brides and grooms.
Goose or Hansa motif
A representation of spiritual purity, the artwork of a goose has been found in pottery from the Indus Valley and on wall depictions at the popular Ajanta caves in Maharashtra. Commonly found in paintings from pre-Mughal times, this motif is now mostly found on textiles from the south of India in form of Kasuti embroidery and kalamkari prints.
Lotus motif
The motif of the kamal or the lotus flower is one of the most popular motifs used in Indian art and textiles. A symbol of the eternal order of the union of earth, water and sky, it represents the power of life. The flower is represented with both its opening and closing petals indicating the ups and downs of life and the revamping of one’s characteristics. Its petals also represent the multiplicity of the universe. There are various forms of lotus motifs like astadal padma – eight petal motif – to the satadal – hundred petal motif . It also symbolises prosperity and material wealth, associated closely with the Indian goddess Lakshmi. All these spiritual aspects are often emphasised on Indian saris, notably with kantha embroidery.
Mango motif
The motif of a mango, commonly called paisley or mankolam in Sanskrit and ambi in Punjabi, is found on a wide variety of Indian textiles. Considered as a symbol of fertility, it is done in various textile arts such as chikankari embroidery from Lucknow or kantha embroidery from Bengal. A tree laden with flowers and fruits with birds in its branches and animals sheltering under it indicates that all is well with life on Earth. A shankh or a shell symbolises the sounds of the cosmic space, an elephant denotes power and the rudraksh, a bead associated with Indian deity Shiva demotes an ascetic charm. The motifs surfaced on Indian textiles are many with each representative of a meaning, which many believe to emanate a vibe on the person who adorns it.
Source: Media India Group
Seventeen Indian textile manufacturers have participated in the 6th edition of International Apparel and Textile Fair (IATF) held at Dubai from April 8. Organized by Nihalani Events Management, IATF 2017 showcased Spring/Summer 2018 pre-collections and Autumn/Winter 2018 highlights. There were more than 100 exhibitors from various countries around the world. Over 2,980 buyers visited the fair and were mainly from GCC countries, including the buyers for different brands of Apparel and Landmark Groups which are two of the biggest companies dealing with garments in the UAE. Other buyers came all the way from Kuwait, Saudi Arabia, Lebanon, Oman, Qatar, India, China. African countries, Europe, the US and Australia also attended the two-day fair. “We are proud to continuously bring in and introduce prominent manufacturers from all across the globe to the clothing and textile buyers and retailers not only in Dubai or the UAE or the GCC (Gulf Cooperation Council), but the whole of the Middle East and North Africa region. We are glad with the support that we are getting ever since we had started this show in 2014,” Dilip Nihalani, IATF’s show director, said. UAE is world’s 11th biggest apparel importer with more than four billion US dollar import value. Next to London, Dubai is the second global city having the highest percentage (55%) of international retailers and according to a report by 2018, Dubai will replace Paris as the third most popular and must-visit tourist destination in the world.
Source: Indian Apparel
India's cotton production is projected to grow by two percent to 5.9 million tons while production in China could reach 4.8 million tons in 2017/18 as area expands by three percent to 3 million hectares after five seasons of contraction. After declining by three percent to 5.1 million tons in 2016/17 due to high domestic and international cotton prices, India's mill use is projected to recover by one per cent to 5.2 million tons in 2017/18. India's exports are projected to decline by 23 percent to 960,000 tons in 2016/17, partially due to the delay in harvesting earlier this season, International Cotton Advisory Committee (ICAC) stated. Despite a below normal monsoon forecast likely to impact production, 2017-18 could turn out to be a better year for India's cotton heavy textile sector. Estimates peg cotton prices at below Rs 40,000 per candy of 356 kg mark or Rs 20,000 per bale of 170 kg in the coming weeks, turning out to be competitive for textile mills, thereby enhancing mill uptake. Also the Indian textile industry's cotton use is now projected to recover by 1 percent to 5.2 million in 2017/18. In addition, cotton imports from key markets like China and Vietnam are also set to grow by 4-6 per cent, thereby increasing India's position in domestic and global cotton market. Similarly, according to an Angel Commodities' report, cotton prices have begun showing a downward trend, recently spot prices of cotton bale at Rajkot fell to Rs. 20,630 per bale of 170 kg, from Rs. 21,060. However, expectation of higher cotton demand from China and forecast of El Nino during the later part of current month may still keep cotton prices higher. The Cotton Association of India (CAI) has maintained its estimate for production of cotton in the country in 2016-17 for October to September at 34.1 million bales where one bale is 170 kg, as it had projected in January. In 2016/17, farmers continue to realize better price for their produce since the cotton prices have remained firm. The cotton arrivals are in full swing now and gap of arrivals as compared to last year has narrowed down considerably in the preceding period, as per Angel Commodities' report However, cotton prices for rest of the season will be driven by the export demand from the country which is expected to be good due to China demand. In domestic market, prices are expected to stabilize in coming months due to sufficient availability. CCI has also been purchasing cotton at commercial rates during the current season and might have procured more than 100,000 bales bales which will be available for the textile mills later in the season.
Source: YNFX.
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 17.04.2017. In rupee terms, the price of Indian Basket increased to Rs.3515.92 per bbl on 17.04.2017 as compared to Rs. 3511.07 per bbl on 14.04.2017. Rupee closed at Rs. 64.41 per US$ on 17.04.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 17, 2017 (Previous trading day i.e. 14.04.2017) |
Pricing Fortnight for 16.04.2017 (March 30, 2017 to April 11, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.59* |
52.87 |
|
(Rs/bbl |
3515.92 (3511.07) |
3423.86 |
|
|
Exchange Rate |
(Rs/$) |
64.41 |
64.76 |
Source: PIB
India-based fashion and apparel retailer V-Bazaar, incorporated in 2016, is eyeing to earn Rs. 500 crore in revenue by 2020 and plans to add 45 new stores in Tier-II and III cities in Indian states like Jharkhand, Gujarat, Uttarakhand and Rajasthan, as well as Bihar and Uttar Pradesh in the next three years. “We would add around 40-45 more stores by 2020 and take our store count to 56-57 by the end of FY 2019-2020,” V-Bazaar Retail Chairman and Managing Director Hemant Agarwal was quoted as saying in a statement issued by the company. Currently it operates 14 stores in in Bihar and Uttar Pradesh that earned Rs. 44.8 crore in revenue during the financial year 2016-17. Men’s apparel section contributes 40 per cent of the total revenue while ladies and kids apparel make 25 per cent and 23 per cent in contribution, respectively. 12 per cent revenue comes from general merchandise.
Source: Apparel Resources
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1110.55 |
USD/Ton |
0.33% |
4/17/2017 |
|
VSF |
2264.65 |
USD/Ton |
-2.50% |
4/17/2017 |
|
ASF |
2221.10 |
USD/Ton |
0% |
4/17/2017 |
|
Polyester POY |
1168.62 |
USD/Ton |
2.55% |
4/17/2017 |
|
Nylon FDY |
2685.65 |
USD/Ton |
-1.07% |
4/17/2017 |
|
40D Spandex |
5371.29 |
USD/Ton |
0% |
4/17/2017 |
|
Polyester DTY |
2395.31 |
USD/Ton |
0% |
4/17/2017 |
|
Nylon POY |
1371.86 |
USD/Ton |
0.53% |
4/17/2017 |
|
Acrylic Top 3D |
2975.99 |
USD/Ton |
-1.44% |
4/17/2017 |
|
Polyester FDY |
5821.32 |
USD/Ton |
0% |
4/17/2017 |
|
Nylon DTY |
1400.89 |
USD/Ton |
1.58% |
4/17/2017 |
|
Viscose Long Filament |
2511.44 |
USD/Ton |
-1.70% |
4/17/2017 |
|
30S Spun Rayon Yarn |
2888.88 |
USD/Ton |
-1% |
4/17/2017 |
|
32S Polyester Yarn |
1713.01 |
USD/Ton |
0% |
4/17/2017 |
|
45S T/C Yarn |
2685.65 |
USD/Ton |
0% |
4/17/2017 |
|
40S Rayon Yarn |
2351.75 |
USD/Ton |
0% |
4/17/2017 |
|
T/R Yarn 65/35 32S |
1843.66 |
USD/Ton |
0.79% |
4/17/2017 |
|
45S Polyester Yarn |
2250.14 |
USD/Ton |
0% |
4/17/2017 |
|
T/C Yarn 65/35 32S |
3048.57 |
USD/Ton |
-0.94% |
4/17/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
4/17/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
4/17/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
4/17/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
4/17/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
4/17/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14517 USD dtd.
17/04/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan’s polyester staple fibre industry struggling for its survival as almost a third of total annual installed capacity of around 800,000 tonnes already closed and moreover its gross margins continue to be under pressure owing to a several factors like cheaper and under invoiced imports from China and volatility in raw material prices. In February last year, imposition of anti-dumping duty in the range of 2.8pc and 11.5pc on low-priced PSF imports from China, for five years and rebounding global crude oil prices have helped manufacturers slightly improve their capacity utilisation and gross margins over the last one and a half years. Yet the future of the industry, according to a senior executive of Ibrahim Fibres, continues to depend on creation of a ‘level playing’ field for local producers. Owing to unfair competition from China, Dewan Salman Fibres shut down in 2009 and Pakistan Synthetic in 2015. If the Chinese continued to dump their surplus production in Pakistan for another few years, the remaining factories will also be forced to close down, the executive said on condition of anonymity. At present, the three players — Ibrahim Fibres, ICI and Rupali Polyester — are using less than three quarters of their operational capacity of 537,000 tonnes a year because of competition with Chinese imports. According to a report by Pacra, a local credit rating agency, the industry’s revenues dropped about 6pc to Rs44.16b and gross margins were -0.8pc at the end of June 2016 from Rs46.94b and -0.9pc a year ago, despite a 5pc increase in capacity utilisation to 73pc from 68pc. Lower crude prices are blamed for the drop in revenues The share of local producers in the market grew by over 11pc to 400,000 tonnes in 2016 from 360,000 tonnes the previous year compared with a drop of more than a fifth in imported PSF sales. Historical data shows that the domestic PSF industry’s earnings were as high as Rs64.91bn and gross profit margins 1.3pc in 2014, Rs57.11bn and 4.3pc in 2013 despite lower capacity utilisation of 68pc. The local industry saw its prices drop from $1.8 per kilo in 2013 to $1.1 in 2016 with a commensurate decline in imported Chinese PSF from $1.5 a kilo to $0.9. Domestic PSF producers also enjoy 7pc duty protection against imports in addition to anti-dumping duty imposed by the National Tariff Commission last year. But manufacturers contend that the impact of duty protection and anti-dumping duty is nullified because of under-invoicing and smuggling of PSF imports from China. A senior official of ICI, which has been acquired by the Younus Group, said that currently, the Chinese product costs less than a dollar a kilo compared with the local PSF price of more than $1.25. China sells almost 80pc of its PSF at premium prices around the world and dumps the remaining in countries like Pakistan at less than the price of the raw materials used in manufacturing. Ibrahim Fibres’ executive said that the industry had invested massive amounts of money in their PSF manufacturing facilities. Their company had invested Rs22bn to complete their third plant in 2015 to expand capacity but they are unable to operate at their full operational capacity due to unfair foreign competition. Compared with the world cotton and synthetic fibre mix of 25:75, the use of man-made fibres by Pakistan’s textile industry remains 80:20. The textile manufacturers and exporters often blame the higher-than-world prices of locally produced synthetic fibres because of tariff protections to the manufacturers for its lower use by the textile industry. It is totally misleading to blame them for the low use of synthetic fibres by local textile producers. The demand for polyester staple fibre has been stagnant for several years because of massive import of PSF-based fabric and garments from countries like China and Thailand etc. Today if they are forced to shut shop the Chinese exporters will sharply increase their prices. This was seen happening after the closure of Deewan Salman when China raised its prices by Rs. 20-30 a kilo to take advantage of shortages in the Pakistani market. He said that it was important to save the domestic industry to protect jobs. They don’t want a ban on imports, but want protection against unfair competition and practices to protect their investments as well as jobs associated with this industry. According to Industry sources, 90pc of the PSF-based textile products made in Pakistan are used in the domestic market. Therefore, it is grossly unfair to suggest that the lower use of synthetic fibres by the local industry is hurting the country’s textile exports. The ICI official said that the protection to the local PSF industry doesn’t hurt exporters. To use imported synthetic fibres for exports they can make use DTRE scheme as there’s no restriction on that. If textile exports are declining it is because of other factors like outdated technology, inefficiencies, low value-addition, small size of factories, etc. Besides, the government’s bias for imports rather than support for local manufacturing, inconsistent export policies, overvalued rupee, taxation, higher cost of doing business, etc have worsened the situation. According to Ibrahim Fibres’ executive, they need higher anti-dumping duties and tariff protection to compete with Chinese dumping as India provids 10pc protection to its industry and Korea 8pc. As the domestic industry was internationally competitive in spite of being at a very large cost disadvantage because of higher energy prices, higher freight cost, increase in duty to 5pc from 3pc on import of raw material (PTA), underdeveloped upstream petrochemical industry, unskilled workforce, and poor infrastructure compared with the other regional players.
Source: YNFX
Both the government and the apparel makers have moved forward to address certain conditions of the International Labour Organization (ILO), related to workers' rights, in the wake of the recent warning on withdrawal of the European Union's (EU) GSP facility for Bangladesh. The European Commission (EC) recently issued the warning on temporary withdrawal of the Generalised System of Preferences (GSP) benefit for the country, if it fails to address the labour rights issues and come up with a proper plan of action in this regard within a certain timeframe. "We have taken the latest warning seriously, and are trying our level best to address the issues concerned," Labour Secretary Mikail Shipar told the FE. He further said: "The EU's GSP is important for us, as the EU is the major destination for Bangladeshi exports." The government has already advanced one step regarding ensuring the workers' trade union rights in the country's Export Processing Zones (EPZs), and full implementation of the labour law in the EPZs may take some more time. The government is going to discuss the issues relating to possible amendments to the labour law in the ensuing meeting of the National Tripartite Committee, he further said. Besides, the government has also initiated the process of establishing a database to look into the trade union registration activities, especially the complaints made by the workers to this effect. The government has recently formed a Tripartite Advisory Committee for the garment sector to address the labour-related issues, Mr Shipar added. On the other hand, the apparel makers have already discussed the issues among themselves and decided to do everything possible to avert any untoward move from the EU. "We are also serious about the EU's concern, and going to put forward our opinions and suggestions to the government shortly," said Mahmud Hasan Khan, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The industry insiders, however, said since the concerns expressed by the ILO and the EU are very much related to the factories operating in the EPZs, the apparel units outside the EPZs do not have much to do in this regard. According to them, exports from the factories of the EPZs account for only 8.0 per cent of the total exports, so the industry does not want that the country's total exports get affected by the EPZ-related labour issues. "We will lose our competitiveness, if the EU withdraws its GSP for Bangladesh. Duty at the rate of 12.50 per cent has to be paid by the importers," a fish exporter said. Nearly 80 to 85 per cent of the country's total frozen fish and shrimp exports go to the EU, he added. Meanwhile, experts suggested that both the exporters and the government should take prudent steps for safeguarding the EU GSP facility. According to them, suspension of the trade facility by the EU might create an adverse impact on the country's overall trade and economy, especially on bank and insurance sectors. "Bangladeshi relevant authorities should take immediate steps to address the concerns and let the EU know about the country's time-bound plan of actions in this regard," said Mustafizur Rahman, distinguished fellow of the private think-tank Centre for Policy Dialogue (CPD), while talking to the FE. Bangladesh is the EU's 33rd largest trade partner in goods, and the country's exports to the EU are dominated by clothing and textile. Bangladesh fetched $17.15 billion, 61 per cent of its total garment exports, from exporting garment items to the EU in the fiscal year 2015-16. The EC's latest warning has come following suspension of Bangladesh's GSP benefit by the US government in June 2013. After the US GSP suspension, the EU earlier reminded Bangladesh of taking necessary measures for ensuring workplace safety and labour rights in order to retain its GSP benefit in the EU markets.
Source: The Financial Express Bangladesh
Domestic production of cotton yarn and cotton cloth during first eight months of current financial year grew by 0.67 percent and 0.43 percent respectively as compared the production of the corresponding period of last year. According the computation of Quantum Index Numbers of large scale manufacturing industries released by the Pakistan Bureau of Statistics about 2.285 million tons of cotton yarn produced during the period from July-February, 2016-17 as compared the production of 2.269 million tons of same period of last year. Cotton yarn production during the month of February, 2017 was recorded at 287,100 tones as against the production of 281,185 tons of same month of last year. Meanwhile, cotton cloth production in the country during the period under review was registered at 696,750 thousand square meters as compared the production of 693,733 square meters of same period of last year. On month on month basis, cotton cloth production was recorded at 87,300 square meters in month of February, 2017, as compared the production of 86,100 square meters of same month of last year. However, in last 8 months jute goods production decreased by 18.76 percent in last eight months as about 43,709 tons of jute goods were produced as against the 42,721 tons of same period of last year.
Source: Business Recorder
Vietnam earned 6.84 billion USD from garment and textile exports in the first quarter of this year, a rise of 11.2 percent year on year, according to the Vietnam Textile and Apparel Association (VITAS). Currently, Vietnamese garment and textile products have been available in 40 countries and territories over the world, with major markets including the US, Japan, the Republic of Korea, China and the EU. Most businesses have had orders for the second quarter this year. However, orders have been in shorter and shorter terms with price not increasing. The VITAS urged enterprises to optimize the capacity of their equipment to reduce production costs and seek orders for high-quality products. This year, the garment and textile industry has set a target of reaching a growth rate of 6.5-7 percent compared to 2016 with the total export earning of over US$30 billion.
Source: YNFX
Vietnamese textile and apparel export was stable with turnover hitting US$6.84 billion in the first quarter, a year on year increase of 11.2 percent, reported Vietnam Textile and Apparel Association. Most businesses have had orders for the second quarter this year. Vietnamese garment products have been present in over 40 countries and territories including the US, Japan, South Korea, China and the EU. However, orders have been in shorter and shorter terms with price not increasing. Therefore, the association advised businesses to fully exploit the efficiency and capacity of machines and equipment to reduce costs. This year, the garment and textile industry has set a target of reaching a growth rate of 6.5-7 percent compared to 2016 with the turnover topping US$30 billion.
Source: SGGP
YORKSHIRE’s textile industry is staging a revival with help from a project that was set up by the former Cabinet minister Sir Vince Cable. The Textiles Growth Programme, a private and public sector partnership which was established by Sir Vince when he was Business Secretary, is helping to create jobs through a grant-funded scheme. It supports capital projects, skills training and research and development in the textile industry. Altogether, 113 textiles manufacturing businesses across West Yorkshire have invested £44.5m in the Textiles Growth Programme over the last four years, which has unlocked more than £10m in grants through the Government’s Regional Growth Fund. This has helped to create 1,124 jobs and 166 apprenticeships in the industry, a growth programme spokesman said. Bill Macbeth, the managing director of the Huddersfield-based Textile Centre of Excellence, which has more than 100 textiles manufacturing businesses in its membership, said: “The Textiles Growth Programme has illustrated the willingness and capacity of companies to invest in the sector. “It’s also been instrumental in increasing the Government’s awareness of the strength of the sector and its potential for growth.” Mr Macbeth said the sector must move forward to develop its plans for skills development, export and innovation. “This is particularly important as we prepare for Brexit negotiations,’’ he added. Sir Vince Cable said: “The textile industry was widely thought to be extinct in the UK, but some outstanding entrepreneurs, using new technology plus modest Government help under coalition industrial strategy, have turned things around. Reshoring is real and growing.” Lorna Fitzsimons, the founder and director of the Textiles Growth Programme, said the programme had been launched five years ago, to recognise the opportunity for increasing UK fashion and textiles manufacturing. She added: “This started us on a journey which led to the most extensive study on supply and demand for UK fashion and textiles manufacturing in decades. “There is still more to do but this is a success story no one saw coming.” Textiles production in the UK was worth £9.1bn in 2016, according to research from the Textiles Growth Programme. The programme focused on LEP (local enterprise partnership) areas, which had previously had a history of textile manufacturing, including West Yorkshire, Greater Manchester, Lancashire, Leicestershire, Nottinghamshire and Derbyshire. Exports of UK fashion and textiles have increased by 28 per cent since 2012, with 26 per cent of these exports heading to customers outside the European Union, the growth programme’s research found.
Source: Yorkshire Post
The polyester staple fibre industry is in trouble because its gross margins continue to be under pressure owing to a variety of factors like cheaper and under-invoiced imports from China, and volatility in raw material prices. With almost a third of the country’s total annual installed capacity of around 800,000 tonnes already closed, the industry is struggling for its survival. Indeed, the imposition of anti-dumping duty in the range of 2.8pc and 11.5pc on low-priced PSF imports from China, for five years, in February last year and rebounding global crude oil prices have helped manufacturers slightly improve their capacity utilisation and gross margins over the last one and a half years. Yet the future of the industry, according to a senior executive of Ibrahim Fibres, continues to depend on creation of a ‘level playing’ field for local producers. “We have seen Dewan Salman Fibres shut down in 2009 and Pakistan Synthetic in 2015 owing to unfair competition from China. If the Chinese continued to dump their surplus production in Pakistan for another few years, the remaining factories will also be forced to close down,” the executive said on condition of anonymity. At present, the three players — Ibrahim Fibres, ICI and Rupali Polyester — are using less than three quarters of their operational capacity of 537,000 tonnes a year because of competition with Chinese imports. According to a report by Pacra, a local credit rating agency, the industry’s revenues dropped about 6pc to Rs44.16b and gross margins were -0.8pc at the end of June 2016 from Rs46.94b and -0.9pc a year ago, despite a 5pc increase in capacity utilisation to 73pc from 68pc. Lower crude prices are blamed for the drop in revenues. With almost a third of the country’s total annual installed capacity of around 800,000 tonnes already closed, the polyester staple fibre industry is struggling for survival The share of local producers in the market grew by over 11pc to 400,000 tonnes in 2016 from 360,000 tonnes the previous year compared with a drop of more than a fifth in imported PSF sales. Historical data shows that the domestic PSF industry’s earnings were as high as Rs64.91bn and gross profit margins 1.3pc in 2014, Rs57.11bn and 4.3pc in 2013 despite lower capacity utilisation of 68pc. The local industry saw its prices fall from $1.8 per kilo in 2013 to $1.1 in 2016 with a commensurate decline in imported Chinese PSF from $1.5 a kilo to $0.9. Domestic PSF producers also enjoy 7pc duty protection against imports in addition to anti-dumping duty imposed by the National Tariff Commission last year. But manufacturers contend that the impact of duty protection and anti-dumping duty is nullified because of under-invoicing and smuggling of PSF imports from China. “Currently, the Chinese product is costs less than a dollar a kilo compared with the local PSF price of more than $1.25,” a senior official of ICI, which has been acquired by the Younus Group, told Dawn. “China sells almost 80pc of its PSF at premium prices around the world and dumps the remaining in countries like Pakistan at less than the price of the raw materials used in manufacturing.” Ibrahim Fibres’ executive said the industry had invested massive amounts of money in their PSF manufacturing facilities. “Our company had invested Rs22bn to complete our third plant in 2015 to expand capacity but we are unable to operate at our full operational capacity due to unfair foreign competition.” Compared with the world cotton and synthetic fibre mix of 25:75, the use of man-made fibres by Pakistan’s textile industry remains 80:20. The textile manufacturers and exporters often blame the higher-than-world prices of locally produced synthetic fibres because of tariff protections to the manufacturers for its lower use by the textile industry. “It is totally misleading to blame us for the low use of synthetic fibres by local textile producers. The demand for polyester staple fibre has been stagnant for several years because of massive import of PSF-based fabric and garments from countries like China and Thailand etc. Let me warn you today: if we are forced to shut shop the Chinese exporters will sharply increase their prices. We have seen this after the closure of Deewan Salman when China raised its prices by Rs20-30 a kilo to take advantage of shortages in the Pakistani market.” He said it was important to save the domestic industry to protect jobs. “We don’t want a ban on imports, let me clarify. What we want is protection against unfair competition and practices to protect our investments as well as the 6,000 jobs associated with this industry.” Industry sources say 90pc of the PSF-based textile products made in Pakistan are used in the domestic market. Therefore, it is grossly unfair to suggest that the lower use of synthetic fibres by the local industry is hurting the country’s textile exports. “The protection to the local PSF industry doesn’t hurt exporters. If you want to use imported synthetic fibres for exports you can use DTRE scheme. There’s no restriction on that,” the ICI official said. “If textile exports are declining it is because of other factors like outdated technology, inefficiencies, low value-addition, small size of factories, etc. “Besides, the government’s bias for imports rather than support for local manufacturing, inconsistent export policies, overvalued rupee, taxation, higher cost of doing business, etc have worsened the situation.” Ibrahim Fibres’ executive said the domestic industry was internationally competitive in spite of being at a very large cost disadvantage because of higher energy prices, higher freight cost, increase in duty to 5pc from 3pc on import of raw material (PTA), underdeveloped upstream petrochemical industry, unskilled workforce, and poor infrastructure compared with the other regional players. “But we need higher anti-dumping duties and tariff protection to compete with Chinese dumping. India has provided 10pc protection to its industry and Korea 8pc. Why can’t we have higher protection?” he concluded.
Source: Dawn.com
Officials of a visiting Chinese delegation have expressed the desire to set up textile units in Pakistan. According to them, the Chinese business community is facing high cost of production as well as environmental issues and Pakistan is an ideal place for the relocation of textile industry.There is no better idea thansetting up multidisciplinary, multiple-format, diversified textile enterprises in Pakistan by the business communities of the two countries. The European Union is fast reaching a saturation point as their industry is heading towards collapse due to high cost of doing business, low young population and financial crisis which are travelling from one country to another. The Pakistani industry is facing energy crisis, overlapping tax system, corruption and terrorism. The there is no action plan to streamline industry, investment and trade activities. In this hour of need, the offer by the business community of China is good omen. The visiting Chinese officials have discussed various issues and opportunities of cooperation with their Pakistani counterparts. There is no denying the fact that people to people or business to business contact between Pakistan and China is almost non-existent and it needs to be established. As the government is planning to establish export processing zones and industrial estates along the China Pakistan Economic Corridor, it will be in the best interest of the local investors to set up joint ventures in partnership with the Chinese businessmen. Besides, development of infrastructure is already in process and the government should facilitate the local and foreign investors with tax facilities along with duty-free import of equipment, machinery and raw material. The government’s ease of doing business plan should be made viable with practical steps and not mere through the lip-service. The local and foreign investors should also be treated in the same manners to remove sense of deprivation or the sense alienation from any side. A capacity building programme for the government officials is also need of the hour so that they should work as facilitators and not as trouble makers. It is a positive steps of the government in which it has allowed foreign direct investment in all sectors and has allowed 100 percent foreign equity investment without any requirement of the government permission. The cost of doing business in Pakistan is lower than China and it will be in the interest of Chinese businessmen to relocate their textile units into Pakistan. It is hoped that the export package announced by the government, allowing zero-rated sales tax and other concessions in import of raw material will encourage foreign investors to invest in this sector in Pakistan.
Source: Customs Today
