India has extended the anti-dumping duty on viscose filament yarn from China by one year. The duty will now be valid till May 3, 2018. The decision by the Revenue department was taken after the sunset review investigation initiated by the commerce ministry recently. The duty ranging from 5.04 per cent to 16.90 per cent was imposed in May 2012. The anti-dumping duty, initiated by the country’s revenue department in 2012, was valid for five years, according to a report by a leading daily. The investigation was carried out by a designated authority. The report said that the petition seeking sunset review investigation was filed by Kesoram Rayon (unit of Cygnet Industries, a wholly-owned subsidiary of Kesoram Industries, and Indian Rayon, a unit of Aditya Birla Nuvo. Century Rayon, a division of Century Textiles and Industries, had supported the petition. (SV)
Source: Fibre2fashion
The Asia and Pacific region continues to deliver strong growth, in the face of widespread concerns about growing protectionism, a rapidly aging society, and slow productivity growth, says latest regional assessment released by the International Monetary Fund (IMF). The Regional Economic Outlook estimates 5.5 per cent growth this year for the region. The region registered 5.3 per cent in 2016. Growth is expected to remain strong at 5.4 per cent in 2018, as the region continues to be the leader of global growth, the report states. The report also cites the more favourable global environment with growth accelerating in many major advanced and emerging market economies—notably the United States and commodity exporters—as supporting Asia’s positive outlook. “The signs of growth in the region are encouraging so far. The policy challenge now is to strengthen and sustain this momentum,” said Changyong Rhee, director of the IMF’s Asia and Pacific department. In China, the region’s biggest and the world’s second largest economy, policy stimulus is expected to keep supporting demand. Although still robust with 2017 first quarter growth slightly stronger than expected, growth is projected to decelerate to 6.6 per cent in 2017 and 6.2 in 2018. This slowdown is predicated on a cooling housing market, partly reflecting recent tightening measures, weaker wage and consumption growth, and a stable fiscal deficit. Japan’s growth forecast for 2017 has been raised to 1.2 per cent with support from expansionary fiscal policy and the postponement of the consumption tax hike (from April 2017 to October 2019). The expansion would slow down to 0.6 per cent in 2018 as the boost from the fiscal stimulus wears off. The outlook for other Asian economies is also positive, but with some exceptions. India’s growth is expected to rebound to 7.2 per cent in fiscal 2017-18 as the cash shortages accompanying the currency exchange initiative ease. In most of the Southeast Asian economies, growth is expected to accelerate somewhat, supported by robust domestic demand—an important driver of growth in these countries. Meanwhile, growth in Korea is projected to remain subdued at 2.7 per cent this year despite the recent pick up in exports, mainly owing to weak consumption. The region’s outlook, however, is clouded with uncertainty. A sudden tightening of global financial conditions could adversely impact Asian economies with high external financing needs and weak private sector balance sheets, including by triggering capital outflows and unwinding of productive investment projects. Asian economies are especially vulnerable to protectionism because of their trade openness and integration to global value chains. A global shift toward inward-looking policies could suppress Asia’s exports and reduce foreign direct investment to Asia. Furthermore, a bumpier-than-expected transition in China or geopolitical tensions in the region could also weaken near-term growth.
Source: Fibre2fashion
Textiles exporters who are focusing on the western market should explore the opportunities in Japan, according to Joint Director of Textiles Committee K.S. Muralidhara. Textiles Committee and QTEC (Japan Textiles Products Quality and Technology Centre) conducted an industry capacity building programme here on Wednesday. Mr. Muralidhara, who was in the city for the event, told The Hindu that the potential for exports to Japan is huge. Of the total textile and clothing exports from India, just about 2% goes to Japan. Of the total textile and clothing imports by Japan, only 1% is from India. The major supplier to Japan is China and Japan is now looking at suppliers from other countries too. But, the Japanese buyers want the products to be tested at QTEC laboratories as their quality requirements are high and some of the standards are different from those accepted in the western markets. The Textiles Committee has 19 laboratories in the country with equipment to test standards for exports to the western markets mainly. “We will look at upgrading the laboratories jointly with QTEC or QTEC can set up its laboratories in the facilities that we have,” he said. This will be a follow up to the capacity building programmes. Mr. Muralidhara said that when the Indian Prime Minister visited Japan last November, Textiles Committee and QTEC signed an agreement to sensitise the industry here on quality and regulatory requirements of the Japanese market and their standards. The capacity building programmes are conducted as part of the agreement in nine cities, including Coimbatore. It will conclude in Mumbai next week, he said.
Source: The Hindu
The Goods and Services Tax (GST) Council will decide on applicable tax rates for commodities on May 18, said M Vinod Kumar, Chief Commissioner of Central Excise here. Addressing a workshop on GST, organised by the Bangalore Chamber of Industry and Commerce (BCIC), Kumar said, “In all probability, we will freeze the allocation of commodities into the agreed tax rates under the GST, which is widely expected to be rolled out post July 2017.” Commodities allocation “While tax bands have been declared, the commodities allocation will be completed shortly. However, the declaration of the commodity-wise allocation will be done closer to the rollout date,” he said. He said the “general expectation is that rates are likely to be fixed as close to the existing aggregate incidence of tax for goods and services. There will also be a cess on sin goods and services which will be imposed on the small set of identified commodities.” Trial run initiated On the preparedness of GST network, Kumar said beginning May 1, the government has initiated the GSTN trial run. He said “a few thousand GSTN trial runs have already begun and that is the reason why the registration for the GSTN system has been put on hold for a short period.” Kumar said “If GSTN is not in place and adequately tested, smooth integration of the GST law may be very difficult. Substantial migration and integration work has already been completed.” Kumar added that with the introduction of the GST, the industry would benefit immensely.
Source: Business Standard
The LDF government in Kerala today wanted the Centre to consult it before signing the Regional Comprehensive Economic Partnership (RCEP) agreement, saying it would have adverse impact on the agriculture sector in the state. Replying to a notice for an adjournment motion over the agrarian crisis in the state Assembly, Agriculture Minister VS Sunilkumar said the RCEP agreement would result in the import of cash crops, milk products, rubber and tea without duty. “This is going to aggravate the crisis already faced by the farming sector due to the adverse impact of previous treaties such as WTO and ASEAN,” he said.
Rubber Board head office
Referring to the reports on the move to shift the Rubber Board headquarters from Kerala, he said the state government cannot accept this at any cost. “Kerala produces 90 per cent of the total rubber production in the country,” the minister said. Alleging that the Centre was showing “step-motherly” attitude towards the state on matters related to agriculture, Sunilkumar said the state would give a detailed letter to the Centre explaining its position on the issue.
Farmers in dire straits
On the Opposition charge that the state government had shown lukewarm response to the problems faced by rubber growers, he said a total of ₹704 crore had been released under the ‘production incentive’ scheme in the last one year. The leader of the Opposition in the Assembly, Ramesh Chennithala, said state farmers are facing serious crisis and sought immediate intervention of both state and central governments. As an immediate relief, he said, agriculture loans up to ₹ 2 lakh should be written off and a permanent price stabilisation fund should be launched for all agricultural crops.
Source: Business Line
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$ 48.18* per barrel (bbl) on 10.05.2017. This was higher than the price of US$ 48.14 per bbl on previous publishing day of 08.05.2017*. In rupee terms, the price of Indian Basket increased to Rs. 3108.10 per bbl on 10.05.2017 as compared to Rs. 3091.17 per bbl on 08.05.2017. Rupee closed weaker at Rs. 64.51 per US$ on 10.05.2017 as compared to Rs. 64.22 per US$ on 08.05.2017**. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 10, 2017 Previous trading day i.e. 08.05.2017*) |
Pricing Fortnight for 01.05.2017 (April 12, 2017 to April 26, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
48.18* (48.14) |
52.36 |
|
(Rs/bbl) |
3108.10 (3091.17) |
3374.60 |
|
|
Exchange Rate |
(Rs/$) |
64.51** (64.22) |
64.45 |
Source: PIB
The government on Wednesday approved the appointment of West Bengal cadre and 1982 batch officer Sanjay Mitra as the next defence secretary of the country. He will get a fixed tenure of two years as the defence secretary. Mitra, who was holding the charge of secretary in the ministry of road transport and highways till now, has been appointed officer-on-special-duty in the defence ministry and will assume charge on May 24 when incumbent G Mohan Kumar retires. The defence ministry brought out its new procurement policy during Kumar’s tenure but without a key chapter on the strategic partnership model to identify Indian firms that can forge alliances with foreign defence contractors to build high-tech defence systems in the country. Some of the key deals sealed during his term include contracts for Rafale warplanes, Chinook heavy-lift choppers, Apache attack helicopters, advanced medium-range surface-to-air missiles and M777 ultra-light howitzers. However, plans to buy new anti-tank guided missiles, very short-range air defence systems, light machine guns, new assault rifles and other weapons are yet to materialise. The implementation of the one rank, one pension scheme and the recommendations of the 7th Pay Commission report for the armed forces also caused a great deal of heartache in the armed forces. The budget allocation for the armed forces was also not in line with military’s expectations and insufficient to power its modernisation drive. India’s two surgical strikes into Myanmar in 2015 and in PoK a year later took place during his term. Shipping secretary Rajive Kumar has been given the additional charge of the post of secretary, road transport and highways.
Other appointments
Another notable appointment cleared by the government on Wednesday is that of Anant Kumar Singh, a 1984 batch IAS officer of Uttar Pradesh, who has been appointed as the secretary in the textiles ministry in place of Rashmi Verma who moves to the similar position in the ministry of tourism. Anant Singh is the first officer from the 1984 batch to get the secretary-level appointment among all the empanelled officers. Singh, while working as the additional secretary in the home ministry, was transferred to the ministry of petroleum following the sacking of then home secretary LC Goyal early in the fixed tenure of two years. The appointments committee of the cabinet has also approved Rajiv Srivastava, a 1981 batch IAS officer of Rajasthan cadre, to be the next secretary in the ministry of woman and child development where incumbent Leena Nair has moved to ministry of tribal affairs. The appointments panel, that consists of Prime Minister Narendra Modi and home minister Rajnath Singh, has also approved Jagdish Prasad Meena for the post of secretary in the department of consumer affairs. At present,he is serving as the special secretary in the ministry of food processing industries. Electronics and information technology secretary Aruna Sundararajan will hold the additional charge of secretary, department of telecommunications, till the appointment of a regular incumbent, the order said. The government has also appointed Jammu and Kashmir cadre and 1984 batch BR Sharma as additional secretary in the home ministry, a vacancy caused due to abrupt transfer of M Gopal Reddy to his parent cadre of Madhya Pradesh.
Source: Economic Times
Four years ago when the India’s external finances were going through a mini-crisis and the ~/$ rate was close to 70 no one would have predicted that today it would be around 64. Even as recently as January this year, the ~/$ rate averaged 68 for the month. Nor is this strengthening of the rupee limited to the rupee-dollar parity. The Reserve Bank of India’s 36-country, trade-weighted (2004-05 base) Real Effective Exchange Rate (REER) index, which takes into account exchange rate movements with respect to 36 trading partners/competitors and adjusts for inflation differentials, also shows a pattern of strengthening from 103 in 201314 to 112 in 2015-16 and further to 118 in March 2017. What’s going on? In some government quarters there is considerable satisfaction about this strengthening of the rupee in recent years and months. It is attributed to “strong fundamentals” of good growth, low inflation, fiscal consolidation and low current account deficits (CADs) in the balance of payments (well below 2 per cent of gross domestic product [GDP]) for four years in a row. While there may be some merit in this point of view, it should not distract policymakers from other pertinent factors and perspectives. First, as noted, some of this rupee strengthening is quite recent, in the last three or four months. It appears to be due to a number of factors, including a reversal in the initial, Donald Trump electionrelated strengthening of the dollar, a recent downward correction in oil and other commodity prices and the return of foreign portfolio inflows into India after their withdrawal in the initial weeks following the November 2016 demonetisation. The point is short-run factors such as these may or may not persist in the medium-term. From a policy-perspective it is crucially important to take a medium-term view of the exchange rate policy based on a good understanding of past trends and factors (and their consequences) and reasonable judgements about possible future trajectories. Second, the history of global economic development since 1950 does not support the view that long periods of a “strong” currency have been good for growth and development of nations. On the contrary, the best practitioners of sustained rapid growth, mostly East Asian economies such as Japan, South Korea, Taiwan, China and Thailand, generally eschewed currency “strength” and opted to maintain competitive exchange rates to help gain market share in global trade. In India too, periods of good growth in exports and trade were generally associated with periods of realistic exchange rate policies. This is hardly surprising, since theory indicates that a currency depreciation is equivalent to the imposition of a tariff on imports of goods and services and a subsidy to exports, while a currency appreciation “subsidises” imports and taxes exports. Of course, the trade performance of a country is not solely dependent on currency policies. Many other factors come into play, including global economic conditions, fiscal policy, infrastructure (quality and quantity), foreign trade policies, investment climate, skill development, and ease of doing business, to mention a few. But surely, currency policy is an important determinant. Nor are the consequences of currency policy limited to trade performance. An overvalued currency can be a strong disincentive to the development of “tradeable” sectors, notably industry and agriculture. This is of vital importance to India, where rapid growth of these sectors offers the best hope for generating decent job opportunities to a growing, low-skilled and underemployed labour force. Third, let us briefly review our external sector experience over the past decade to see what guidance we can glean (see table). A striking feature of the past decade has been high levels of merchandise trade deficit recorded, ranging between 6 to 11 per cent of GDP and averaging above 8 per cent. We have been able to sustain this because of the high levels of “Net Invisibles” earnings, constituted mainly by software exports and remittances from abroad, which, together, have averaged around 6 per cent of GDP per year. Much of the decade, certainly between from 2005-2013, overlapped with the China-fuelled commodity “super-cycle”, which kept oil and other commodity prices high. As a substantial net importer of petroleum products, significant strain on our external finances was inevitable. But in the years leading up to the 2013 “mini-crisis”, the REER was also allowed to appreciate from 100 in 2008-09 to above 110 in 2010-12. This may well have compounded the oil-price strain, since the non-oil trade deficit also rose to a peak of nearly 5 per cent of GDP in 2011-12 and 2012-13, contributing to the record CADs of above 4 per cent of GDP in those years. These unprecedented CADs were brought under control in 2013-14 through strong measures to curb gold imports. In the years since then we were blessed, fortuitously, by the collapse in oil and other commodity prices, which (mainly) reduced merchandise imports from a peak of over 27 per cent of GDP in 2012-13 to 19 per cent in 2015-16. But for this large terms of trade windfall, our external finances might have been far less comfortable. Certainly, there was no positive adjustment through exports, which remained stagnant in value, and dropping, as a share of GDP, from 17 per cent in 2013-14 to less than 13 per cent in 2015-16. Even non-oil exports declined from 13.5 per cent of GDP to 11.2 per cent over the two years, partly because our policy authorities (government and the RBI) allowed the REER to climb back up to 110 and higher. Looking ahead, if oil prices remain around $50/barrel or lower, and our authorities continue to encourage a “strong” rupee, then external finances will deteriorate only gradually, as goods exports, software exports and remittances (the three big forex earners) all decline slowly, as shares of GDP. Greater damage would be inflicted on the dynamism of the “tradeable sectors”, and hence, on job creation by them. Of course, if oil and other commodity prices perk up in the near term, then trade and CADs will widen quicker and the rupee will weaken more swiftly. That may not be such a bad outcome!
Source: Business Standard
NEW DELHI: The onus of driving big-bang labour reforms, which could bring India’s hiring norms in kilter with flexible global practices, rests with the states now as the Centre lacks the required Upper House majority to push such a bill, and isn’t keen on an encore of the experience on the land acquisition law. Furthermore, with the National Democratic Alliance (NDA) in power in a number of big states, New Delhi believes it will be easier to drive legislative changes in labour laws at the state level to enhance the ease of doing business. A senior government official told ET that the Centre is not immediately keen on bringing labour law amendments to Parliament. “Some work has been done on codifying labour laws and reducing 44 legislations into four codes. However, in terms of progress on legislative action, it is still an issue whether it will pass the muster in Rajya Sabha, because NDA by itself does not have the numbers, and, therefore, there is some hesitation,” the official quoted above said. He was responding to a question. The labour ministry is ready with the two labour codes, one on wages and the other on industrial relations, for several months now. The ruling NDA had attempted to steer changes in the United Progressive Alliance’s (UPA) land acquisition law under pressure from states, but the lack of adequate numbers forced it to backtrack. Amendments are now under the consideration of a joint parliamentary committee. The BJP-led NDA government, after coming into power in 2014, had brought in nine main amendments to the 2013 legislation through an ordinance, and subsequently as part of a The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Second Amendment) Bill, 2015. However, due to stiff opposition from various political parties, the government agreed to drop most of its contentious amendments to the Land Acquisition Act of 2013, bringing back the crucial. The official said that the way forward for labour reforms in the country is through states. “We are now encouraging other states to take the Gujarat approach and at least bring in flexible labour laws in the special economic zones. Once the principle has been established through Gujarat’s reforms, the Centre will give the permission. If we have three-four states doing this, competitive pressure will build on the others to act,” he said.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1049.655 |
USD/Ton |
-0.68% |
5/10/2017 |
|
VSF |
2236.851 |
USD/Ton |
-0.64% |
5/10/2017 |
|
ASF |
2287.524 |
USD/Ton |
0% |
5/10/2017 |
|
Polyester POY |
1056.894 |
USD/Ton |
-1.08% |
5/10/2017 |
|
Nylon FDY |
2446.782 |
USD/Ton |
-1.74% |
5/10/2017 |
|
40D Spandex |
5356.86 |
USD/Ton |
0% |
5/10/2017 |
|
Polyester DTY |
1288.542 |
USD/Ton |
-0.56% |
5/10/2017 |
|
Nylon POY |
2750.82 |
USD/Ton |
0% |
5/10/2017 |
|
Acrylic Top 3D |
5791.2 |
USD/Ton |
-0.25% |
5/10/2017 |
|
Polyester FDY |
1331.976 |
USD/Ton |
0% |
5/10/2017 |
|
Nylon DTY |
2302.002 |
USD/Ton |
-2.45% |
5/10/2017 |
|
Viscose Long Filament |
2461.26 |
USD/Ton |
0% |
5/10/2017 |
|
30S Spun Rayon Yarn |
2866.644 |
USD/Ton |
0% |
5/10/2017 |
|
32S Polyester Yarn |
1654.8354 |
USD/Ton |
-0.17% |
5/10/2017 |
|
45S T/C Yarn |
2678.43 |
USD/Ton |
0% |
5/10/2017 |
|
40S Rayon Yarn |
1809.75 |
USD/Ton |
0% |
5/10/2017 |
|
T/R Yarn 65/35 32S |
2244.09 |
USD/Ton |
0% |
5/10/2017 |
|
45S Polyester Yarn |
3011.424 |
USD/Ton |
-0.48% |
5/10/2017 |
|
T/C Yarn 65/35 32S |
2330.958 |
USD/Ton |
-0.62% |
5/10/2017 |
|
10S Denim Fabric |
1.3479018 |
USD/Meter |
0% |
5/10/2017 |
|
32S Twill Fabric |
0.8455152 |
USD/Meter |
0% |
5/10/2017 |
|
40S Combed Poplin |
1.1712702 |
USD/Meter |
0% |
5/10/2017 |
|
30S Rayon Fabric |
0.6529578 |
USD/Meter |
-0.22% |
5/10/2017 |
|
45S T/C Fabric |
0.6630924 |
USD/Meter |
0% |
5/10/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14478 USD dtd. 10/05/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Vietnamese textile and garment industry needs to diversify its raw material import sources if it wants to develop, a senior industry figure has said. Nguyễn Thị Tuyết Mai, deputy general secretary of Việt Nam Textile and Garment Association (VITAS), said with exports of US$28.5 billion last year, Việt Nam is one of the five biggest exporters in the world. But to achieve this, the country imports large volumes of feedstock including yarn, fabric and others, she said. “Depending on one or two sources will limit manufacturers’ production capacity and development. Seeking new sources is necessary for the industry to lessen its dependence on traditional sources in ASEAN and China.” Members of VITAS and the HCM City Association of Garments, Textiles, Embroidery and Knitting (AGTEK) agreed that India is one of the best alternative choices. Phạm Xuân Hồng, chairman of AGTEK, said many Vietnamese garment companies have visited India to explore co-operation opportunities and returned impressed with the country’s garment and textile industry. Many raw materials available in India fit their needs, he said. “For a long time, Việt Nam has imported garment and textile raw materials from China. It is now time to upgrade technologies as well as have more raw material sources.” Mai said establishing co-operation with India is a good idea. Indian products have good quality and prices thanks to the free trade agreement signed between India and ASEAN, she said. Furthermore, garment and textile is among the products on which India would cut taxes in future, she said. “This is an opportunity for Vietnamese to find a new raw material source.” The Indian consulate in HCM City has promised strong support for Vietnamese companies seeking to tie up with their Indian counterparts. The two governments have put garment and textile in the priority list for further development, it said. It hoped a large Vietnamese delegation would attend the 2017 Textile India, a garment and textile exhibition in Ahmedabad, India, from June 30 to July 2, saying there they could find all the products they need from yarn and fibre and cotton. The exhibition would also enable the Vietnamese companies to study the Indian garment and textile industry closely and identify new raw material sources, it added. — VNS
Source: Viet Nam News
Pakistan Government plans to supply 100 per cent certified cotton seeds to farmers during the current Kharif season in order to get maximum output. In this connection, a campaign will be launched so that only certified seeds are sown across the country. Arrangements have been made to make available about 38,000 metric tonnes of certified and approved seeds. The move is aimed at increasing per acre crop output in the country, according to Pakistani media reports. The total requirement of cotton seeds was recorded at 40,000 metric tonnes for the sowing season 2017-18, an official in the Ministry of Textile Industry said, according to the reports. In order to ensure availability of certified seeds, seed dealers have been directed to market cotton seeds as per standard germination of 75 per cent. They have also been asked to ensure the quality and quantity of the, the reports said. During the current kharif season, cotton would be cultivated over 3.118 million hectares of land across the country to fulfill domestic requirements as well as exports, the official said. Cotton crop production targets for the current season have been fixed at 14.40 million bales against 14.1 million bales last year. Cotton would be cultivated over 2.429 million hectares of land in Punjab, 0.650 million hectares of land in Sindh, 0.038 million hectares in Balochistan Province and about 0.001 million hectares in Khyber Pakhtunkhwa province, the official said, according to reports.
Source: fibre2Fashion
Four years ago, the deadly collapse of the Rana Plaza garment factory in Bangladesh pulled back the curtain on the employment practices of the global apparel industry. We had hoped that the tragedy, which killed more than 1,100 workers – the deadliest accident in the industry’s history – would have brought meaningful change to a business long left to its own devices. Unfortunately, our research suggests the opposite has happened. Media reports highlight the industry’s ongoing transgressions in Bangladesh, in particular the persistent reliance on child labor. In 2014, the British current-affairs program Exposure found evidence of children as young as 13 working in factories (often under harsh conditions) producing clothes for retailers in the United Kingdom. Another undercover report by CBS News interviewed a 12-year-old girl who obtained a factory job using a certificate that falsified her age. And journalists from The Australian Women’s Weekly found girls as young as ten stitching clothes for top Australian brands. While the media reports are troubling, they do not provide the entire picture. How many minors and adolescent girls are employed overall in factory jobs? More important, should they be barred from such jobs entirely? Access to factories is restricted, and most employees will not disclose their actual age in the workplace. Indeed, journalists often mask their identity to document abuses. We took a different approach to assess the prevalence of underage workers in the garment industry, and to determine the sector’s value to Bangladeshi society. As part of a recent nationwide census, we collected data from thousands of mothers and girls in Bangladesh’s three industrial districts with the highest concentration of ready-made garment factories (particularly those operating outside the Export Processing Zones): Ashulia, Gazipur, and Narayanganj. The majority of the country’s female garment workers are concentrated in these areas. For comparison, we also carried out interviews in 58 urban areas where garment factories are not located. During our research, we identified 3,367 women and girls in the survey areas who reported being employed in the apparel industry. Of them, 3% were between the ages of ten and 13, and 11% were 14-17 years old. Of the 861 girls below the age of 18 who were engaged in any kind of work, 28% said they worked in the garment industry. Based on this evidence, it would appear that Bangladesh’s garment factories are using child labor (particularly that of young girls) more pervasively than even the most sensational media reports suggest. But for us, the real question is whether this practice should be eradicated or reformed. Global brands relying on cheap labor have promised eradication. In 1992, about 10% of the garment sector’s workforce was below the age of 14. The following year, after the introduction of the Child Labor Deterrence Act in the United States – the so-called Harkin Bill, which barred US imports of products made with child labor – some 50,000 underage workers were removed from the factory floor. Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association has pledged to phase out child labor and put children back in school – female school enrollment is typically lower in areas of high garment-industry employment than in other areas – upholding a 2010 law prohibiting employment of children under 14. Clearly, our data suggest that the industry’s promises have yet to be fulfilled (though the government of Bangladesh claims that there currently is “no child labor” in garment processing units). But that may not be entirely bad for underage female workers in Bangladesh. Thanks to pressure on garment manufacturers in the wake of the Rana Plaza disaster, the industry’s minimum wage was increased 77%, to $68 a month. This has made it more attractive for young girls to take up paid employment in the sector, which, paradoxically, does have some social benefit. The majority of young girls who are working in Bangladesh are from poor families. Even in garment manufacturing areas, relatively better-off families rarely send their daughters to work in factories. Many young women still drop out of secondary school, even without the opportunity to engage in paid work. That often leaves girls with one option: marriage. And in a country where minimum marriage-age laws are rarely implemented, earning a paycheck is the best way to avoid a premature wedding day. In such a situation, when many young girls must choose between factory work and marrying young, banning factory employment for girls under 18 would do more harm than good. To help young girls avoid this choice, and to reduce the presence of minors and young girls in factories, requires greater emphasis on poverty reduction in rural areas. Consumers around the world reject clothing stitched by child labor, which is commendable. Children under 18 should be in school and learning important life skills, not working long hours under difficult conditions. But the lessons from the 2013 tragedy at Rana Plaza are more complicated than much of the international media make them out to be.
Source: The Himalayan Times
The Accord on Fire and Building Safety in Bangladesh has launched a remediation fund to provide financial assistance to garment factory owners to help them improve safety standards. The Accord will directly contribute 50 percent of the remediation fund, according to a statement. However, it did not give details of the fund. “The Accord Remediation Fund will provide qualified suppliers with access to direct funding for 50 percent of the remaining remediation costs for covered factories with no current Accord business,” said Joris Oldenziel, head of public affairs of the Accord at its office in the Netherlands. “This direct support is limited and will be implemented on a 'first-come first-served' basis.” Oldenziel added: “We need to ensure that major and costly safety measures, such as protected fire exits, fire alarms and fire protection systems and structural retrofitting work can and will be remediated urgently.” Local garment makers have spent more than $1 billion for remediation to strengthen workplace safety since the collapse of Rana Plaza in April 2013. The Accord is a legally binding five-year agreement of 220 European retailers and brands and it is entering its fifth year of operation in Bangladesh. The signatory companies are committed to supporting the factories they source from, said the statement of the Accord. In the fifth year, the Accord's major focus will be to establish safety committees at factories and organise training programmes at as many factories as possible. It will also seek to effectively address safety complaints filed at factory-level safety committees or through the Accord safety complaints mechanism. Looking beyond 2018, apparel brands and retailers and unions are in discussions on how to best ensure that safety regulations and rights in the garment industry in Bangladesh are adequately upheld and further developed, the statement said. The Accord wants to extend its tenure by three more years after the expiry of the current agreement in June 2018. “The initiative of forming a separate fund for remediation is too late because many factories are already near completion of the remediation,” said Mahmud Hasan Khan Babu, vice-president of Bangladesh Garment Manufacturers and Exporters Association. So far, no garment factory has received any financial assistance from the Accord signatories for remediation purposes, although they were supposed to provide such support as per the commitments made in the charter of the Accord, Babu added. He said many of the Accord signatories have severed business ties with many factories due to slow progress in the remediation. More than 1,800 factories under the Accord banner have received initial fire, electrical and structural safety inspections. Over 100,000 safety hazards were identified at the factories inspected.
Source: The Daily Star
FORREST CITY, Ark. (KATV) — Shandong Ruyi Technology Group, the largest textile manufacturer in China, is establishing its first North American facility in Forrest City, a move that is expected to create 800 new jobs. Company leaders and Gov. Asa Hutchinson made the announcement Wednesday afternoon at the State Capitol.
Both parties enter into agreement:
The company, headquartered in China, says it will invest $410 million in Forrest City's former Sanyo manufacturing facility, where Arkansas cotton will be spun into yarn for textile use. Renovations of the building are set to begin late 2017, with production beginning by mid-2018. The company plans on processing more than 200,000 tons of cotton annually from the facility. At the facility, Arkansas cotton will be spun into yarn for textile use. “Ruyi’s decision to locate in Forrest City brings with it up to 800 new jobs along with a significant economic impact on Arkansas’ cotton farmers,” said Governor Hutchinson. “Our business missions to China, along with ongoing work to build relationships with the country’s business leaders, have now resulted in three companies from China’s Shandong Province announcing plans to locate operations in Arkansas. From Sun Paper to Pet Won Pet Products to Ruyi, we have established the state as a leader in foreign direct investment from Asia.” The Arkansas Economic Development Commission says the average pay at the facility will be $15.25 per hour.
Source: KATV
The Association of Italian Textile Machinery Manufacturers (ACIMIT), a private body promoting Italian textile machinery, has announced that 2017 has started offf on a positive note for Italian textile machinery manufacturers. For the first quarter, orders have increased both in Italy and abroad. ACIMIT consists of an industrial sector with 300 manufacturers. The orders index for textile machinery compiled by ACIMIT for the period from January to March, grew 24 per cent compared to the same period in 2016. The index value stood at 113.7 points (basis 2010 = 100). This growth regarded mostly markets abroad, where the index came in at an absolute value of 124.1 points (+26 per cent). In Italy, the increase compared to the period from January to March 2016 was 16 per cent, with an absolute value of 71.5 points. ACIMIT president Raffaella Carabelli said, “Orders for the start of 2017 confirm a positive trend in major foreign markets, and a climate of trust for Italy’s textile industry that is on the upswing. The index data for the first three months of the year confirm the positive signs ascertained by our businesses in various foreign markets.” “A renewed climate of enhanced trust is currently perceived in the textile sector triggered by the government’s commitment to enact a range of significant incentives for the Country’s manufacturing system,” he added. (GK)
Source: fibre2Fashion
The two-day Bangladesh Denim Expo will start in Dhaka on May 17 to showcase denim fabrics, trousers and other products from home and abroad. The exhibition will be held at International Convention City Bashundhara, said Mostafiz Uddin, organiser of the show. Over 10,000 pre-registered visitors, which is double from the last edition, are expected to visit the sixth edition of the expo. This year's show with the theme “Denim Networks” will highlight the importance of the increasingly developed long-term relationships with the retailers and brands. “The response from the participants, buyers and brand is huge. I have to expand the space for the higher demand of booths and stalls,” the organiser said. “I have a plan to expand the space in the next edition of the show, which is scheduled to be held in November this year.” Apart from the local exhibitors, businessmen from China, Turkey, Spain, Italy, Pakistan, Japan, San Marino, Germany, Brazil, India and Hong Kong will also showcase their goods at the expo. Local companies will occupy nine out of the show's 58 stalls and booths while the rest will be used by the foreign firms and exhibitors. The organisers will set up a “Trend Zone” at the show where visitors will be able to gain insight into the denim fabrics, styling and finishing available in Bangladesh. The Bangladesh Denim Times, a magazine for denim professionals and denim lovers, would also be on display at the exhibition. On the sidelines of the expo, a seminar—Sustainable Apparel Forum—will be organised by Bangladesh Apparel Exchange, the country's only private initiative-led apparel sector promoter.
Source: The Daily Star.
