MARKET WATCH 20 APRIL, 2017

NATIONAL

INTERNATIONAL

Textile India 2017 to be world’s first B2B event, push PM Modi’s export vision

India will soon showcase to global consumers its prowess in the textile sector while pushing Prime Minister Narendra Modi’s vision of “farm to foreign” policy. The Textiles India 2017 will be the first ever global business-to-business (B2B) event in the country that will bring domestic producers closer to global buyers. The e-commerce sector has been growing exponentially in the recent years as aspiring Indians are buying salt to software online. The textile sector is also rising on the new digital wave with Amazon, Flipkart, AV Birla group, Tatas and ebay vying with each other to grab a higher share of online fashion. There’s room for everyone: How Mumbai’s chawls have been housing people for 117 years.  Speaking at a curtain raiser function, Union textiles minister Smriti Zubin Irani said the spectrum of Indian textiles was extremely diverse and its history world-renowned. Textiles India 2017 holds the promise of becoming a landmark annual trade event for the Indian textiles and apparel industry at the global level. India’s textile sector is a major contributor to the overall industrial production, exports and employment. The event will also demonstrate Modi’s dream of building a global supply chain as he had said “from farm to fibre, fibre to factory, factory to fashion and fashion to foreign.” Textile India will display more than a thousand stalls and will witness the presence of over 2,500 international buyers, agents, designers, retail chains from across the world, and 15,000 domestic buyers.

Source: Hindustan Times

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Textile traders feel the pinch, urge PC to revoke order

Surat: Over 65,000 traders in more than 165 textile markets on Ring Road have been affected due to the ban imposed by the city police on the entry of transport vehicles delivering unfinished polyester fabric. The Federation of Surat Textile Traders' Association (FOSTTA) and the Vepar Pragati Sangh (VPS) has urged the city police commissioner Satish Sharma to revoke the 10-day-old ban on Wednesday. FOSTTA office-bearers said that the ban on transport vehicles delivering unfinished grey fabrics has been implemented strictly on the entire Ring Road, which houses over 165 textile markets. The decision was taken to streamline the traffic problems on Ring Road. However, around 65,000 textile traders have started feeling the pinch as the unfinished fabrics are delivered directly from the powerloom units to the textile mills, which has increased the issues of theft, lower quality fabrics and the cut by the tempo drivers in the goods delivery. President of FOSTTA, Manoj Agarwal said, "Incidents of theft, lower quality fabrics supplied to the mills and the cut by the tempo drivers in the goods have become common from the last 10 days. The traders have started incurring heavy losses as the goods are delivered directly to the mills. Thus, we have requested the police commissioner to allow the tempos in the markets, so that the goods are checked and verified by the traders on the spot." Agarwal added, "Even the business has gone down as the buyers from other cities get an impression that the markets are in recession mode as there are no movements of transport vehicles. However, they (buyers) are asking for huge discounts on the purchase of fabrics from the traders." President of Vepar Pragati Sangh, Sanjay Jagnani said, "The entire textile chain has got disturbed due to the ban orders on transport vehicles in the markets. The entire market looks deserted throughout the day and the traders are facing huge losses. The police department must re-think on the ban orders."

Source: The Times of India

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Textile mills in UP to reopen: Minister

Lucknow: A dialogue is on between Uttar Pradesh and the central governments to reopen textile mills in the state, Industrial Development Minister Satish Mahana said on Tuesday. “The state government is alive to the needs and problems of the industrialists and will extend all possible cooperation in activating the closed textiles mills,” Mahana told IANS. He said he Minister of State Suresh Rana met union Textiles Minister Smriti Irani in New Delhi on Monday and requested her to initiate the process to restart the closed textile mills in the state. A plan to revive the mills, he said, would soon be prepared.

Source: India New Wire Service

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Modi to address 'Textile India' conference on June 30

The conference will provide a platform to connect with global manufacturers, investors and buyers in the textiles sector and is expected to draw participation from around 25 countries. Prime Minister Narendra Modi will inaugurate Textiles India, a mega event showcasing the country as a global sourcing hub on June 30, where several Union Ministers and key policy makers will deliberate upon issues and challenges faced by the sector. The three-day conference will be attended by Union Ministers including Finance Minister Arun Jaitley, Textiles Minister Smriti Irani, Road Transport and Highways Minister Nitin Gadkari and Commerce Minister Nirmala Sitharaman, among others. File photo of Union Textile Minister Smriti Irani The valedictory session will be chaired by the Finance Minister Arun Jaitley. Senior Ministers like Venkaiah Naidu, Nitin Gadkari, Nirmala Sitharaman, Rajiv Pratap Rudy, Anant Kumar, J P Nadda, NITI Aayog CEO Amitabh Kant and many other dignitaries have confirmed their participation," Irani told reporters. She was speaking at a curtain raiser conference for the Textiles India in New Delhi on Tuesday evening. "We have partner states in Assam, Andhra Pradesh and Jharkhand. Maharashtra Chief Minister Devendra Fadnavis and Goa Chief Minister Manohar Parrikar have also confirmed their participation," Irani said. "There is a recognition that the textile industry is potentially one of the largest in the country with a huge employability potential and that is the potential of India that we seek to leverage at the Textiles India 2017," she added. The conference will be based on themes such as: India as a global sourcing hub and an investment destination; exploring growth potential of technical textiles; and carving a niche market globally for handcrafted goods. It will also explore productivity and product diversification challenges for natural fibres; skilling requirements in high-value chain in the textiles sector and the potential for growth of man-made fibre in India. Around 2,500 international buyers and over 1,000 international and domestic exhibitors are expected to take part in the event.

Source: One India

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Rising rupee sees pressure for export support

With the rupee expected to continue strengthening in the short term, a demand for further tariff support to select sectors has risen. "The worst is still to come. With the currency appreciating at a fast clip, while those of major competitors steadily go down, competitiveness of Indian goods will go down," says Ajay Sahai, director-general of the Federation of Indian Export Organisations. Major exporting sectors such as engineering products, readymade goods and automobiles are expected to come under the pressure of reduced earnings and potential drops in orders. It doesn't help that these major foreign exchange earners are also price-sensitive. They need to be given support, Sahai argues. However, with the Merchandise Exports from India Scheme covering nearly 8,000 product categories, chances of further support are slim. Under this scheme, the government provides duty benefits to exporters at two per cent, three per cent and five per cent, depending on the product and country exported to. "The scheme has already been widened last year, in September and November. We are not looking at an expansion soon." a senior commerce ministry official said. The rupee has risen in value by more than five per cent since January against the dollar. It closed at 64.57 on Wednesday. A weaker currency is an advantage for export; it makes import, foreign travel and education more expensive. "If current conditions persist, the benefits emerging from the textile (support) package will be lost within the next two months," said Rahul Mehta, president of the Clothing Manufacturers Association of India. T S Bhasin, chairman of the Engineering Exports Promotion Council, says the rupee is certainly over-valued, as the current rally in the stock markets is liquidity-driven and not backed by domestic corporate earnings. Economists have predicted a further strengthening, owing to rising investor confidence in India. "India is a net importer and a stronger rupee will help in reducing trade deficits, as well as keep domestic inflation in check. The focus should be on specific sectoral interventions," says Devendra Pant, chief economist at India Ratings. The rupee has gained steadily in recent weeks as foreign portfolio investors have pumped money into the stock and bond markets, amid improving growth prospects. "Forex reserves have increased by almost $10 billion between end-January and end-March," says a report from rating agency ICRA. The country rose by one spot to eighth rank in the 2017 AT Kearney Foreign Direct Investment Confidence Index, where investors had favourable responses on current governance and regulatory issues. In the past few days, the government has taken measures towards depoliticising of rail freight and passenger fares, listing of state-owned enterprises, introducing a dynamic pricing of petrol and diesel, and on a new schedule to control the fiscal deficit. Commerce and industry Minister Nirmala Sitharaman had recently suggested the focus be on better infrastructure and reduced logistics cost, rather than on the currency exchange rate where boosting of export was concerned. Adding that low labour costs allowed Indian exporters a relative advantage.

The World Trade Organization has pegged higher growth in 2017 at 2.4 per cent, up from the tepid 1.3 per cent in 2016. India's merchandise exports grew 27.6 per cent in March, the final month of the 2016-17 financial year, the steepest rise in a little over five years. However, this failed to help outbound shipment cross $300 bn in FY17, for a second straight year. Exports were $305 bn in 2011-12 and remained a little over $300 bn in the next three years. And, declined to $269 bn in 2015-16.

Source: Business Standard

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Global Crude oil price of Indian Basket was US$ 53.24 per bbl on 19.04.2017

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$ 53.24 per barrel (bbl) on 19.04.2017. This was lower than the price of US$ 53.50 per bbl on previous publishing day of 18.04.2017. In rupee terms, the price of Indian Basket decreased to Rs.3436.26 per bbl on 19.04.2017 as compared to Rs. 3454.49 per bbl on 18.04.2017. Rupee closed stronger at Rs. 64.54 per US$ on 19.04.2017 as compared to Rs. 64.57 per US$ on 18.04.2017. The table below gives details in this regard:

Particulars    

Unit

Price on April 19, 2017 (Previous trading day i.e. 18.04.2017)                                                                

Pricing Fortnight for 16.04.2017

(March 30, 2017 to April 11, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  53.24             (53.50)  

52.87

(Rs/bbl

                 3436.26        (3454.49)       

3423.86

Exchange Rate

  (Rs/$)

                  64.54              (64.57)

64.76

 

Source: PIB

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Tamil Nadu : ‘Resolve wage issue in powerloom sector’

Leading trade unions have called for intervention by the district administration to resolve wage issue between powerloom owners and workers in Chennimalai area.

Strike

The workers struck work earlier this month in protest against reduction of wages by the employers in contravention of the agreement on remuneration and bonus reached during October 16. The employers had reduced the wages citing rise in yarn prices, and pressurising the workers to abide by the reduction. But, the trade unions have been emphasising that the agreement on wages and bonus made once in three years based on several factors, including prevailing price of essentials, must not be flouted at any cost.

Memorandum submitted

A memorandum to this effect was submitted to District Collector S. Prabakar by M. Sengottaiyan, Coordinator of All Trade Unions Joint Action Committee encompassing All India Trade Union Congress, Indian National Trade Union Congress, Anna Thozhilsangam Peravai, and Labour Progressive Front.

Source: The Hindu

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Rajasthan : State inks MoU for Rs 2,000 crore MRO facility

Summary: The MoU again on Wednesday for the Rs 2000 crore MRO is beginning to create an impression that the BJP government will try to leverage these MoUs for electoral gains as the assembly elections are due late next year. Jaipur: Rajasthan government on Wednesday entered into an agreement with Shri Vallabh Pittie (SVP) Group to set up an aircraft maintenance, repairing and overhaul (MRO) facility in Jhalawar with an investment of Rs 2000 crore which is expected to create about 2000 new job opportunities.The MoU was signed in the chief minister's residence between RIICO chairman Umesh Kumar and the officials from SVP Group, which has already invested Rs 445 crore in a yarn manufacturing unit in Jhalawar, the assembly constituency of chief minister Vasundhara Raje.While the government did not announce the deal publicly, sources said both the state and the company will create a special purpose vehicle to implement the project, which will be developed in phases and completed in 7 years' time.He said currently there two MRO facilities in the country in Hyderabad and Bengaluru but the proposed facility at Jhalawar will also handle high-end operations for which the airline operators currently take their aircraft to overseas MRO facilities.Another official said SVP Group has roped in experts from Air France to create and operate the MRO hub that will have advanced engineering capabilities and testing facilities for aircraft.Rajasthan government on Tuesday signed a revised MoU with HPCL for a crude oil refinery at Barmer that proposed to invest over Rs 43,000 crore in the project. Jaipur: Rajasthan government on Wednesday entered into an agreement with Shri Vallabh Pittie (SVP) Group to set up an aircraft maintenance, repairing and overhaul (MRO) facility in Jhalawar with an investment of Rs 2000 crore which is expected to create about 2000 new job opportunities.The MoU was signed in the chief minister's residence between RIICO chairman Umesh Kumar and the officials from SVP Group, which has already invested Rs 445 crore in a yarn manufacturing unit in Jhalawar, the assembly constituency of chief minister Vasundhara Raje. While the government did not announce the deal publicly, sources said both the state and the company will create a special purpose vehicle to implement the project, which will be developed in phases and completed in 7 years' time.He said currently there two MRO facilities in the country in Hyderabad and Bengaluru but the proposed facility at Jhalawar will also handle high-end operations for which the airline operators currently take their aircraft to overseas MRO facilities. Another official said SVP Group has roped in experts from Air France to create and operate the MRO hub that will have advanced engineering capabilities and testing facilities for aircraft. Rajasthan government on Tuesday signed a revised MoU with HPCL for a crude oil refinery at Barmer that proposed to invest over Rs 43,000 crore in the project. The MoU again on Wednesday for the Rs 2000 crore MRO is beginning to create an impression that the BJP government will try to leverage these MoUs for electoral gains as the assembly elections are due late next year.

Source: TOI, NYOOOZ

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Deafening power looms muffle desperation in India's textile hub

SURAT, India (Thomson Reuters Foundation) - Udhiya Behera sat in a windowless room in the Indian textile hub of Surat, staring blankly at a small television as the ground shook with the noise of power looms on the floor below. For Behera, though, this was a moment of late-evening calm in a room he shares with 35 others, just off a lane crammed with frenetic, sleepless looms. "I operate 12 power looms through the day and the sound bothers me a lot. My head hurts," Behera, 45, told the Thomson Reuters Foundation, speaking loudly to be heard over the din that enveloped the room. "It is quieter here." Nearly 8 million people, mostly migrants from the eastern state of Odisha, like Behera, work on 600,000 power looms in the Western city of Surat in conditions that damage their hearing and often ruin their health. While the workers said they choose to work here due to a lack of jobs at home, campaigners also suspect that some are trafficked across India. "The older workers become the recruiters. These are poor people hit by crop failure and cyclones and need work," said Umi Daniel, a migrant rights activist with Aide et Action in Odisha. The fabric they weave is durable, easy to care for and low cost, which has led to its popularity in both the Indian and international markets. India exports $6 billion worth of synthetic fabric per year. This is used worldwide - in Europe and the United States for "wrinkle-free" school and hotel uniforms, and by the garment hubs of Bangladesh and Vietnam in high-street fashion.

HEARING LOSS

Textile weavers are exposed to around 102-104 decibels of sound according to a study by India's National Institute of Occupational Health, much more than the legally permissible 90 decibels and putting them at severe risk of hearing damage.Sanjay Patel of migrant labour rights group Aajeevika Bureau said: "Those working here for 10 to 12 years are not able to hear well. Many are unable to work beyond the age of 45, and return to their villages." Patel said that many mill units do not fulfil basic safety guidelines such as giving out ear plugs. Most units register as shops or other establishments rather than factories, which would mandate them to limit exposure to high noise levels to eight hours and pay extra for overtime. Yet labour department and local government officials said they had not received any noise-related complaints from workers. "We only get complaints of non-payment of wages that we settle," said P.D. Patel, an inspector with Surat's civic body, which is responsible for checking the units. The penalties for exploitation offer little deterrent however. Nearly 200 employers were penalised with fines between 25 and 750 rupees ($0.40 to $11.60) in 2016 for violating guidelines on work hours or not giving lunch breaks, Patel said.

DISEASE AND DEATH

Bikes, trucks, vans and cars ferrying around colourful fabrics are a common sight on Surat's streets. But just a few miles from the bright, bustling markets are soot-covered buildings, surrounded by piles of rotting waste and filth, where the workers live. Poor nutrition, a lack of basic hygiene, long work hours and unsafe sexual habits have made thousands vulnerable to a cocktail of diseases - from HIV/AIDS to tuberculosis. A local government office in Surat has received more than 40 death compensation applications from families of power loom workers over the last two years. "The deaths were recorded as natural. Those who died were in the 40-59 age group," an official said. Officials in Surat said most cases of tuberculosis involve migrant workers, who work on the looms until they fall ill. "There are no deaths in the power loom units. They occur only when workers go back home," said Gagan Sahu, a professor at South Gujarat University and textile industry specialist.

MOVING GOALPOSTS

When Vipra Padhyali, 40, started work in a loom unit 25 years ago, he worked four machines and found it manageable. "But about a decade ago, they told me if I operated more machines, I would produce more cloth and earn more money. So I agreed," Padhyali said, who now walks up and down all day between the 12 looms that he operates. Power loom workers here are paid less than 2 rupees ($0.03) for every metre of cloth they produce. They make roughly 500 to 600 rupees ($8-9) a day. "When I worked on three machines, I was paid 80 paisa ($0.01) per metre, but when they increased my machines to six, they cut the price to 70 paisa," said Debakar Behera, who is also a migrant from Odisha. Debakar quit and he now drives an auto rickshaw. But most people cling to their jobs out of desperation. "We found workers who had worked 72 hours at a stretch as they were covering for an unwell friend or a roommate," said Sahu. "Workers hardly have any bargaining power - their payments, working hours and living arrangements are compromised. They are leading miserable lives." Officials said power looms without shuttles, which generate much less noise and produce better quality fabric, are available but are unaffordable to most unit owners. Padhyali blames his work for hearing loss and constant exhaustion. "I cannot sit as I have to ensure the thread on all the machines remains straight, that there is no fold in the fabric," he said. In his dim room, surrounded by images of Indian gods that he prays to daily, Behera said he longs to go home to his village healthy, find work and escape the numbing sound of this life.

Source: Reuters

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Raymond to raise Rs. 150 cr via NCDs

NEW DELHI: Textile and apparel major Raymond today said its board has approved raising up to Rs. 150 crore through issuance of non-convertible debentures on a private placement basis. “The committee of directors approved issue of non-convertible debentures (NCDs) aggregating up to an amount of Rs. 150 crore on a private placement basis,” Raymond said in a BSE filing. However, the company did not elaborate on the purpose of raising funds. Shares of the company were trading down 1.22 per cent at Rs. 720.90 apiece on the BSE.

Source: Business Line

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Handloom brand Tantuja forays into US market through Amazon

Handloom products brand Tantuja produced by the West Bengal State Handloom Weavers' Cooperative Society, which was earlier available only on Amazon India, will now also, be available in the US market through Amazon's Global Selling Program. This association will help the society to tap a wider customer base with a huge demand for traditional Indian products. West Bengal is known for the rich tradition of handloom weaving. Jamdani, Tangail, Baluchari and Daccai are some of the most popular heritage handloom saris from West Bengal. Amazon India has launched an impressive selection of products across categories with brands such as Biba, Fab India, Himalaya Amul, and 24 Mantra Organic to name a few. Through its Global Selling Program, Amazon offers end-to-end product solutions by enhancing seller enrolment services like imaging, logistics, and helping them connect with the right advisors to get assistance on tax and remittance matters.

Source: Fibre2Fashion

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Smriti Irani join foundation stone laying ceremony for CETP Bhuj

Union Textile Minister Smt. Smriti Zubin Irani joined the foundation stone laying ceremony for the Common Effluent Treatment Plant (CETP) designed by NITRA at Ajrakhpur, Bhuj (Gujarat) on 18th March 2017 The 150 KLD CETP project has been assigned to NITRA for implementation by Ministry of Textiles through Handicrafts Mega Cluster Mission (HMCM). NITRA designed a modern treatment scheme integrated with water reclamation for the CETP. The project includes 6 months post-commissioning hand-holding support to be provided by NITRA. The Brief outline/benefits of the project are:

• Capacity enhancement: effluent treatment capacity for the block printing cluster in Ajrakhpur will increase from present level of 50 KLD to 200 KLD

• Environment protection: will restrict open discharge of effluent - curtail environmental hazards

• Ground water saving : use of lesser water as treated water is recyclable for use in washing & other operations

• Energy conservation: reduction in ground water lifting through pumping

• Investment opportunity: increase in cluster production / more units to set up in the area - attract investment & buyersFinancial and economical gain : increase in turnover, creation of employment opportunities & overall business growth

 

Source: NITRA

Textile Raw Material Price 2017-04-19

Item

Price

Unit

Fluctuation

Date

PSF

1112.31

USD/Ton

0%

4/19/2017

VSF

2275.51

USD/Ton

0%

4/19/2017

ASF

2253.70

USD/Ton

0%

4/19/2017

Polyester POY

1177.74

USD/Ton

0%

4/19/2017

Nylon FDY

2660.82

USD/Ton

-1.08%

4/19/2017

40D Spandex

5379.80

USD/Ton

0%

4/19/2017

Polyester DTY

2951.62

USD/Ton

-0.98%

4/19/2017

Nylon POY

5830.54

USD/Ton

0%

4/19/2017

Acrylic Top 3D

1410.38

USD/Ton

0%

4/19/2017

Polyester FDY

2515.42

USD/Ton

0%

4/19/2017

Nylon DTY

2428.18

USD/Ton

0%

4/19/2017

Viscose Long Filament

1381.30

USD/Ton

0%

4/19/2017

30S Spun Rayon Yarn

2893.46

USD/Ton

0%

4/19/2017

32S Polyester Yarn

1715.72

USD/Ton

0%

4/19/2017

45S T/C Yarn

2689.90

USD/Ton

0%

4/19/2017

40S Rayon Yarn

1846.58

USD/Ton

0%

4/19/2017

T/R Yarn 65/35 32S

2253.70

USD/Ton

0%

4/19/2017

45S Polyester Yarn

3053.40

USD/Ton

0%

4/19/2017

T/C Yarn 65/35 32S

2355.48

USD/Ton

0%

4/19/2017

10S Denim Fabric

1.36

USD/Meter

0%

4/19/2017

32S Twill Fabric

0.85

USD/Meter

0%

4/19/2017

40S Combed Poplin

1.18

USD/Meter

0%

4/19/2017

30S Rayon Fabric

0.66

USD/Meter

0%

4/19/2017

45S T/C Fabric

0.67

USD/Meter

0%

4/19/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14540USD dtd.

20/04/2017) The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Brazilian export of textiles to Arab region up 87pc

Brazilian exports of textiles and clothing to the Arab region surged during the first two months of 2017, increasing by 87.5 per cent compared to its performance during the same period in 2016, according to the Arab Brazilian Chamber of Commerce (ABCC). The huge demand for synthetic fabric and sisal rope used in ships and rigs led the increase in total sales reaching $3 million up from $1.6 million in January and February 2016, said a statement from ABCC. The Brazilian Textile and Apparel Industry Association (ABIT) reported that sales from rope exports accounted for $1 million, while beachwear, textile yarns and inner garments also rose during the two months, it said. ABIT’s survey of exports include various parts in the production chain including raw materials such as fibres, yarns and filaments as well as technical and non-fabric industrial textiles, and clothing, it added. Arab countries continue to be one of Brazil’s largest market for clothing, particularly for segments such as party wears, children’s and beach wears. Based on ABIT’s latest data, the UAE has the highest imports of Brazilian textiles and clothing during this period, followed by Algeria, Egypt, Morocco, and Lebanon, said a statement. To boost the Brazilian textile and apparel industry exports, ABIT and the Brazilian Trade and Investment Agency (Apex-Brazil) have launched the Texbrasil programme which serves to benefit affiliated exporters, it said. Statistics showed that companies which have participated in the program expanded their export markets to Arab countries by 40 per cent in 2016, valued at $2.9 million in 2015 to $4.1 million in 2016. Michel Alaby, secretary general and CEO, ABCC, said: “Brazil’s textile exports performance during the first two months of the year signify the steady growth of the country’s market share in the sector as the Arab World continues to look for quality materials, not only in raw materials but also with finished goods.” “The Arab consumer base has a discerning taste for luxury and exclusivity in clothing and apparel and this segment remains promising for the Brazilian export sector,” he said. “It is worth noting that the continued support of industry groups coupled with innovative business strategies, have played an important role for the growth of the Brazilian textile in the Arab region,” he added.

Source: Trade Arabia

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China gets a polyester prince with textile IPO

Zhuang Kuilong, chairman of textile maker and distributor Xinfengming Group Co., saw his wealth surge almost 60% after the company’s shares began trading on Tuesday Founded in 2000, Xinfengming is China’s second-largest polyester filament manufacturer by capacity. Photo: Nelson Ching/Bloomberg Hong Kong: A revival in China’s polyester industry has produced a new billionaire. Zhuang Kuilong, chairman of textile maker and distributor Xinfengming Group Co., saw his wealth surge almost 60% after its shares began trading on Tuesday in Shanghai. The increase gave Zhuang, who owns 45% of the Tongxiang-based business, a net worth of at least $1.7 billion, according to the Bloomberg Billionaires Index. He owns the shares along with his wife and son, according to the company’s initial public offering prospectus. Founded in 2000, Xinfengming is China’s second-largest polyester filament manufacturer by capacity, and sells its products across southeast China and in 12 countries globally, according to its website. The company had revenue of 17.5 billion yuan ($2.5 billion) in 2016, according to the prospectus.

Chinese Capacity

Xinfengming’s shares jumped by the daily limit for the second session since their debut on Tuesday. The stock is up more than 58% at 42.26 yuan as of Wednesday. Many Chinese polyester manufacturers are recovering from a recent period of overcapacity, Li Xuan, an analyst at China International Capital Corp. (CICC), said. Li said global demand for polyester fibre is expected to grow faster than the capacity of Chinese manufacturers, which is driving enthusiasm for the shares. Most of the demand for polyester fibre comes from the production of apparel, garments and home furnishing by manufacturers based in China, India and southeast Asia, according to a November 2016 report from IHS Markit. China alone accounts for 65% of global consumption. “The manufacturing capacity of the whole industry in China is rising at 3% per year,” Li said. “Global demand is growing at 5 to 6%, so we can see the Chinese polyester manufacturers are recovering in a positive direction from the overcapacity damage in 2015.”

Source: Livemint

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Bangladesh : Need to safeguard the EU GSP facility

Following a grim warning from the European Union (EU) of pulling Bangladesh out its trade benefits under Generalised System of Preferences (GSP), the government formed a working committee this week to help address the issues raised by the Sustainability Compact and the International Labour Organisation (ILO). The committee will reportedly assess the progress so far made and fine-tune the remaining issues. It will also coordinate among the authorities to prepare the paper to be presented in the next Sustainability Compact and the ILO conference to be held on May 18 and mid-June next respectively. A delegation of Members of European Parliaments (MEPs), in its recent visit to Bangladesh last month, pressed for the full implementation of Sustainability Compact and addressing the ILO concerns before the next meeting to sustain the duty-free facilities under the EU's EBA (Everything But Arms) regime. The EU countries reportedly receive regularly reports of harassment, intimidation and repression of trade unions, as well as restrictions on trade union activities. There is no denying that an atmosphere of tension is prevailing in the country's apparel sector following the EU warning of temporary withdrawal of GSP benefit if Bangladesh fails to address labour rights issues and comes up with a proper plan of action within a certain timeframe. The EC warning letter said if the progress is not enough, its monitoring could eventually lead to the launching of a formal investigation which could result in temporary withdrawal of preferences. In the letter, the EC mentioned that it would be essential for Bangladesh to remain eligible for the EBA regime and they need to demonstrate that Bangladesh was taking concrete and lasting measures to ensure the respect of labour rights. It may be mentioned here that Bangladesh-made products, including apparel, enjoy duty-free facility under the EU GSP. More than 60 per cent of the country's total exports are destined to markets of the member-states of the EU. The country is by far the largest EBA exporter to the EU, accounting for 65.7 per cent of EBA exports with a value of over 14.6 billion euro. The country's apparel makers have recently moved forward to address certain conditions of the ILO, related to workers' rights, in the wake of the recent EU warning. They have already discussed the issues among themselves and decided to do everything possible to avert any untoward move from the EU. On the other hand, the government has taken steps to ensure the workers' trade union rights in the country's EPZs. However, it is assumed that full implementation of the labour law in the EPZs may take some more time. 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 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. Analysts suggest that both the exporters and the government should take prudent steps for safeguarding the EU GSP facility. Suspension of the trade facility by the EU, they fear, might create an adverse impact on the country's overall trade and economy, including bank and insurance sectors.

Source: Financial Express Bangladesh

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Iran initiates measures to regulate garment imports

Iran has introduced measures to systemise import of foreign clothing brands. The measures which require “customs post-clearance audit” for several foreign clothing brands are designed to support domestic garment industry and prevent smuggling. Clothes had the largest share of the commodities smuggled into Iran during the fiscal March 2015-16. The measures by the Islamic Republic of Iran Customs Administration were unveiled during a meeting attended by representatives of the Ministry of Industries, Mining and Trade, the Association of Textile Industry Producers, Iran’s Apparel Union and customs officials, according to a report in Iranian media. The report said that “customs post-clearance audit” would now be carried out for several foreign clothing brands. Customs post-clearance audit refers to controls undertaken after the clearance of the goods and is designed to verify the accuracy of the data declared and confirm the proper implementation of customs and other legislation, the precise payment of duties, taxes and other charges. It said the order registration of clothes would be carried out by the Ministry of Industries, Mining and Trade only after the license holders register the imported brand. Brand registration is only possible through collaboration with the parent company. Likewise, order registration certificates will only be issued for the official license holders. Authorities would also prevent installation of billboards advertising clothing trademarks or brand-names that do not have a license holder retailer in Iran. Importers are also required to record the global trade item number for branded items of clothing and their official prices as set by the parent company. GTIN is an identifier for trade items used to find out product information in a database.

The uniqueness and universality of the identifier are useful in establishing which product in one database corresponds to which product in another database, especially across organisational boundaries, the report said. The measures also say that order registration procedures must be conducted in the name of license holder retailer and the value of all brand-name garments must be announced in the database of IRICA’s Single Window System. The importers of trademarked clothing must register by September 22 their orders. IRICA has already banned the import of clothes through land and water borders in separate guidelines. Recently, the customs administration announced that customs controls will be exercised and customs duties will be collected at the ports of entry of free trade zones. Customs and border protection equipment were only installed at FTZs’ ports of exit up until now. According to the Headquarters to Combat Smuggling of Goods and Foreign Exchange, clothes had the largest share among all the commodities smuggled into Iran during the fiscal March 2015-16, accounting for $2.36 billion or 41 per cent of all the smuggled goods. Over 8.5 million items of clothing were seized during March 2016-17 compared to 9.9 million confiscated a year before. (SV)

Source: Fibre2Fashion

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First fortnight of April sees few cotton trades in Brazil

In the first fortnight of April, only a few trades were registered in the Brazilian cotton market and that too mainly for short term deliveries. Growers remained firm were firm in terms of asking prices, although quality of cotton was low, while cotton processors were cautious regarding new purchases, all of which slowed down trade in the fortnight.

In order to meet demand, the user textile industry resorted to purchases from trading companies and traders. The CEPEA/ESALQ Index for cotton type 41-4 in 8-day payment terms and delivered in São Paulo, declined 0.8 per cent between March 31 and April 13, closing at BRL 2.7429 per pound on April 13. Data released by CONAB on April 11 informed that despite the 2.6 per cent reduction in the cotton planted area in the 2016/17 season in Brazil, production may increase by 14.3 per cent compared to the previous season, as productivity is expected to increase 17.3 per cent, resulting in yield of 1,583 kilos per hectare.

Source: Fibre2Fashion

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Indonesia : Saving the planet with slow fashion

Curator Aprina Murwanti was probably the only person who was sad upon hearing the news that President Joko “Jokowi” Widodo wore a green bomber jacket at a press conference in November last year. “Why didn’t he wear a jacket from a local brand?” she asked, knowing that the bomber jacket was a product of the Zara fashion label. It seems the president loved the attire so much he wore it again when introducing two baby goats at the palace in his recent video blog (vlog). Aprina, however, does not blame Jokowi, assuming the president did not know that Zara, one of the world’s largest fashion retailers, is the pioneer of fast fashion. Fast fashion refers to the mass production of ready-to-wear fashion items that mimic current trends. The production method was once lauded for democratizing high-end lifestyles. However, the expedited process to get new trends to market as quickly and as cheaply as possible, causes many destructive impacts globally, particularly on the environment. The new exhibition, “Fast Fashion — The Dark Side of Fashion and Slow Fashion Lab,” at Gudang Sarinah in South Jakarta, discusses the negative effects of fast fashion, while promoting slow fashion as its opposite and alternative. Curated by Aprina and German Claudia Banz, the exhibition is part of IKAT/eCut, the Goethe-Institut project, aimed at exploring the past, present and future of textiles in Southeast Asia, Australia, New Zealand and Germany. The exhibition features documentaries, photography and fashion brands and details the history and statistics of fashion. “The alternative to fast fashion is slow fashion. If we care about the four pillars, — ecology, economy, society and culture, we should choose slow fashion,” said Aprina. Slow fashion, which represents sustainable and conscious fashion, challenges fast fashion, by encouraging manufactures and consumers to respect people, the environment and the products themselves. For Aprina, slow fashion and fast fashion are also about the behavior of consumers themselves. “When we have a dress with a hole torn in it and we go to a tailor to repair it, that action is also slow fashion,” she said. Aprina understands that the word ‘slow fashion’ is not yet familiar to most people. However, dressmaking skills are a form of slow fashion, which, for centuries have been passed down by our ancestors, including hand-crafted batik. Sustainable cover: A 'Tortoise' jacket by Auguste Soesastro.(JP/A. Kurniawan Ulung) However, many traditional batik manufacturers have abandoned their old batik-making processes in favor of quicker and cheaper methods by using chemical substances. “In Pekalongan, Central Java, I met batik makers whose hands were swollen because they are often exposed to chemicals,” she said. “They are also badly paid. In a workshop, I meet a worker who told me that she was paid Rp 10,000 [less than US$1] to 30,000 a day.” In Pekalongan, batik makers still use naphtol as a coloring agent for dyeing batik. The chemical substance has been banned in the United States and Europe and has polluted local rivers.  “The river is smelly,” Aprina recalled from her visit to the city in 2016. According to environmentalist Lucy Siegle, the textile industry is among the top 10 industries that pollute and consume the most water. Recent World Bank statistics state that approximately 20 percent of global industrial water pollution comes from the textile industry.

Indonesia, home to 13,466 registered islands and 5,590 rivers, has the potential to become one of the biggest slow fashion producers in the world. However, only 2 percent of river water is of good quality, according to a report from the Ministry of Public Work’s Natural Resources General Directorate. Citarum River, the longest and largest river in West Java, is named one of the dirtiest rivers in the world. Sixty percent of local textile factories are located there. The status is worrisome because the 40 million people who rely on the river use 80 percent of their water for drinking, according to Greenpeace. In the past, water and the textile industry had an intimate relationship. The name of Citarum River, for example, comes from the natural dye called Tarum, commonly known as ‘Indigo’. However, in 1905, imported synthetic dyes were introduced to textile manufacturers, replacing the use of natural dyes. To save the planet, many Indonesian designers and brands have joined the slow fashion movement. These brands include Kana from Tangerang, Banten; Osem from Jakarta and Cinta Bumi Artisans from Bali. Many of Kana’s products have one-size-fits-all measurements to avoid excess production. The brand also utilizes less supporting fittings for its products, avoiding zippers, buttons and other materials. It also chooses fabrics that require less water to wash and do not need to be ironed, saving energy and water. “Kana also has a system to accommodate rainwater that is collected in tanks and then used for production,” said Aprina. Over the last five years, slow fashion has become an important discussion topic in Indonesia. Fashion Futures and Sustainable Fashion Forum, for example, was held during Jakarta Fashion Week in October last year. In addition, FAIR, a movement promoting and developing sustainable and ethical fashion, has also been established.

Source: The Jakarta Post

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Myanmar : Clothing industry looks for favoured status

The Myanmar Garment Entrepreneurs Association says it is working for MFN (most-favoured nation) status sothat the CMP (cutting, making and packaging) clothing industry can receive tax reliefs. Myint Soe, chair of the association, said: “I have submitted a plan to ensure the country gets MFN status when CMP products are exported to the US. It is a state-level matter. The tax levied on the CMP products exported to the US ranges from nothing to 5 per cent. Under the MFN system, the taxation rate is higher than 5 per cent.” The US restored the generalised system of preference rights to Myanmar after lifting economic sanctions last year. But clothing is not included on the list of products which can enjoy the rights reinstated by the US. The US will collect a 10-12 per cent tax on exports of cotton clothing and a 37-per-cent tax on nylon garments. High taxation rates serve as a deterrent to garment exports. Khaing Khaing Nwe, secretary of the association, said: “CMP export earnings are expected to reach up to US$2.2 billion this year as it receives more orders from the EU and Japan.” According to the commerce ministry, the export earnings from the CMP exceeded US$1.64 billion between April 2016 and the end of February, up nearly US$1 billion from the same period the previous year. Thirty-three percent of CMP exports go to Japan, 25 percent to the EU, specially Germany, 25 per cent to South Korea, 2.4 per cent to the US and about 2.4 per cent to China.

Source: Eleven Myanmar

BizVibe: Digital Textile Printing Market Poised for Big Growth

Digital textile printing technology, which refers to the inkjet based method of printing colorants onto textiles, has emerged as a new printing trend and has already started to make an impact on the textile world. Details about the growth of digital textile printing and how this technology helps to reduce the negative impact on the environment are some of this week’s top stories on BizVibe.

A recent market report shows that the

Global Digital Textile Printing Market Expects Double-digit Growth Rate in Near Future global digital textile printing market was valued at USD 1.2 billion in 2015, and is expected to reach USD 3.9 billion by 2022, growing at a CAGR of 17.9% from 2016 to 2022. Currently, polyester printing is the largest segment in the global digital textile printing market with around 25% share of the global market. Several factors are fuelling the market, including the growth of the world’s population with higher purchasing power, development of the global textile industry, increased preference for high-quality textile prints, the acceleration in production speeds and reduction in coloration costs, as well as heavy investments in R&D for new digital textile printing technologies. How Digital Textile Printing Helps to Reduce Negative Environmental Impact. Compared to traditional textile printing methods, which use numerous chemicals and create a great deal of waste water, digital textile printing technologies can help to achieve huge reduction in water and power consumption during textile production, therefore is gaining popularity as the industry keeps seeking ways to reduce negative environmental impact. Textile production is currently one of the world’s biggest sources of water waste and pollution, mostly because of dyeing and printing processes. The industry believes that the increasing awareness regarding the environment and sustainability around the world will further facilitate the growth of digital textile printing technologies.

Connecting with textile companies on BizVibe

In addition to the textiles dyeing and printing sector, BizVibe is home to over 150,000 textiles and apparel companies across all sectors. Connecting with any of these companies is simple thanks to the aggregating, categorizing and parsing of data from thousands of sources using machine learning tools and several sophisticated algorithms. This advanced match-making program provides the user with a full set of inbuilt tools designed to connect like-minded business with one another. BizVibe allows you to discover the highest quality leads and make meaningful connections with your companies of interest in real time. Claim your company profile for free and let BizVibe connect you with potential business partners around the world.

About BizVibe

BizVibe is home to over 7 million+ company profiles across 700+ categories. The single-minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.

Source: Yahoo Finance

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