GST Council clears all 9 rules for new tax regime at Srinagar meeting Here are rates of all the items as fixed by GST Council GST meet kicks off in Kashmir Valley amid tight security GST all set for July 1 rollout but casts shadow on state budgets GST Council to decide on rates in May. The Goods and Services Tax (GST) Council, at its meeting in Srinagar on Thursday, approved rates for about 1,200 items, boosting the chances of a July 1 roll-out and also sending a signal to the industry to be ready for the indirect tax regime. In a bid to ensure that the GST was non-inflationary, the Council, chaired by Union Finance Minister Arun Jaitley and comprising representatives of other states, kept more than 81 per cent of the items in the tax bracket of 18 per cent or lower. “We have approved rates for 1,211 items… Six categories are yet to be finalised. This will be taken up tomorrow (Friday), along with services,” said Jaitley. The complete list of the rates for these items was released late at night. Friday will be the second day of the 14th meeting of the Council. On Thursday, it also approved eight of nine GST rules, sending one to the legal committee for vetting. Taking into consideration food consumed by the poor, foodgrain and milk have been exempted from taxes. Cereals will be taxed at 5 per cent. About 60 per cent of the items will be in either the 12 per cent or 18 per cent tax brackets. *TV, refrigerator, washing machine, vacuum cleaner, AC; **3% cess for small diesel cars, 1% for small petrol cars and 15% for luxury cars *TV, refrigerator, washing machine, vacuum cleaner, AC; **3% cess for small diesel cars, 1% for small petrol cars and 15% for luxury cars Only 19 per cent of the items will be in the 28 per cent slab, the highest rate. “Revenue neutrality will be maintained. There is no increase in the tax rate for most items. In fact, for many commodities, the rate has come down as the cascading tax will be lowered,” said Revenue Secretary Hasmukh Adhia. He added evasion would be checked and tax buoyancy would go up. Coal will be taxed at 5 per cent, against the current 11.7 per cent, but there will be an additional cess. Hair oil and toothpaste will be taxed at 18 per cent, lower than the current tax incidence of about 23-24 per cent. Sugar, tea, coffee and edible oil will be taxed at 5 per cent. All capital and intermediate goods will be in the 18 per cent tax slab, lower than the current 28 per cent. “While food items and capital goods could be cheaper, there are many items in the 28 per cent bracket. These will be costlier,” said Bipin Sapra, partner, EY. Pratik Jain of PwC-India said the categorisation of rates at the four-digit level will be a simplification in the tax structure over the current system. “It would help reduce litigation,” he added. With only six weeks to go for planned roll-out of the GST, clarity on rates was crucial.
Source: Business Standard
New Delhi: As farmers prepare fields for kharif sowing, the government is considering increasing the minimum support price (MSP) of cotton by Rs160 per quintal to Rs4,320 for the 2017-18 crop year beginning July. Reuters It is also planning to promote Bt cotton variety developed by the government research body ICAR and expects increased area coverage and better output on hopes of good southwest monsoon that has already hit Kerala in advance. For the ongoing 2016-17 crop year, MSP of medium staple cotton has been fixed at Rs3,860 per quintal and long staple cotton at Rs4,160. According to sources, the Agriculture Ministry has proposed increase in cotton MSP by Rs160 per quintal for the 2017-18 crop year, based on the recommendation of the Commission for Agricultural Costs and Prices (CACP). It has moved a Cabinet note for inter-ministerial comments on fixing MSP at Rs4,020 per quintal for medium staple cotton and Rs4,320 per quintal for long staple cotton for the 2017-18 crop year. www.citiindia.com That apart, sources said since much of the cotton area is under Bt cotton seeds of private companies, the government is planning to promote first generation Bt cotton variety developed by the Indian Council of Agricultural Research (ICAR) and has asked National Seed Corporation to ensure sufficient supply in the ensuing kharif season. With higher MSP and normal monsoon forecast, area under cotton is expected to increase next year. In 2016-17, cotton area had dropped to 102.78 lakh hectares, but output rose by 8.57 percent to 32.58 million bales (of 170 kg each) due to good yields. Home
Source : First post .com
A new era of industrialisation has begun in Jharkhand, chief minister Raghubar Das said on Thursday while laying foundation of 21 ventures and inaugurating three projects here at Hotwar. Nineteen companies are setting up 21 projects that include textile, food and feed processing, pharmaceuticals, waste management, health, footwear, warehouse and logistics at an estimated cost of Rs 710 crore. This would generate over 21,000 direct employment. “The projects are taking ground 90 days after signing memorandum of understanding (MoU) at the state’s maiden Global Investors’ Submit (GIS) held from February 16-17 this year,” Das said, adding, “30-35 more projects will come up by July this year.” The state government had signed 210 MoUs worth Rs 3.10 lakh crore during the GIS, which was participated by 11,000 Indian and 600 foreign delegates. Government officials claimed the MoUs were divided into two categories—short term and long term. Over 100 short term MoUs would be implemented within a year, officials claimed. Earlier, Jharkhand was criticised for signing MoUs only but not making them operational. “We had signed MoUs with the companies for not making headlines but to end poverty, unemployment and check migration from the state,” Das said, adding, the state is ready to achieve Prime Minister Narendra Modi’s ‘Make in India’ dream through ‘Make in Jharkhand’. He said hundreds of Jharkhand youths migrate to other states for employment and they faced social and economic exploitation. “The scenario is changing. Now, they will get job in their home state. We will soon bring back 600 youths, who had migrated to Gurugram for jobs, and they will be employed here,” he said. Jharkhand’s image has improved over the two and half years and it has become more conducive for industrialisation. “We worked on 18 different policies and made them industry friendly. Chief minister and bureaucrats are also available 24x7 to listen and help the companies interested to invest in Jharkhand,” Das said, adding, there is no land crisis in the state and companies would be provided within a month of their requisition. The state has also given much focus on skill development and provisioned Rs 700 crore in the budget for current fiscal. The investors would not face skilled manpower crisis, Das said. He added around 1,000-1,500 jobs would be created under Start Up India initiative in a couple of weeks. Some of the leading companies who are setting up the projects in the state, are Orient Craft, Shahi Exports, Kaveri Agri Warehousing, Dev Aahar Food Industries, Shaw Pharma, Matrix Clothing, Pragati Beverages and Thriveni Apparels. Orient Craft Limited (OCL) would set up a textile park on 25 acres of land at Hotwar at an investment of Rs 200 crore, which would create 15,000 direct jobs. OCL chairman-cum-managing director Sudhir Dhingra said, “I had met Jharkhand chief minister in July last year. He had said the migration rate of youth in Jharhand is high and he wanted their ‘ghar wapsi’ and job creation for them. This impressed me and prompted me to start textile unit in the state.” Dhingra said garment industry is a job intensive sector, which creates 50 times more jobs than the other general industry. “Work on the textile park will begin in two weeks and the world class plant will be operational in six to seven months,” he said. Amit Oils Private Limited’s, managing director, CP Agarwal, said they would set up units of rice bran oil with 300 tonne per day capacity, edible oil refinery with 100 tonne per day and cattle feed with 200 tonne per day capacity. The project would create 1,000 direct jobs and 1,000 indirect jobs.
Source: Hindustan Times
The denim industry which represents below 10% of the textile market is likely to face deterioration in credit profile in the absence of improvements in realisations in FY18, says India Ratings and Research (Ind-Ra). The sectors operating margins are expected to fall to 10%-11% in FY18 (9MFY17; 12.6%) due to cost inflation amid surplus capacity in denim standard products which have low cotton content. Ind-Ra estimates prices to moderate in 2HFY18, highlighted in the report 'Stable Input Prices, Fiscal Incentives to Support Textile and Cotton in FY18'. However the denim surplus situation and inventory losses are likely to pressurise margins. Moreover, the man-made industry demands a level playing field for the taxation of cotton, which is exempt from indirect taxation. If cotton is brought under the Goods and Services Tax (GST) then cotton fabrics including denim sector's profitability may come under pressure in the transitory period. The agencies denim peer set average EBITDA margins deteriorated in 9MFY17 to 12.6% from FY16's 13.2%. The fall in margins is on account of players' inability to completely pass on the increase in cotton prices, on the back of high competitive pressure, similar to the situation in FY14. Raw cotton prices have increased by 32.8% yoy in March 2017 and Ind-Ra expects it to remain elevated until 1HFY18. For Denim manufacturers' cotton forms more than 35%-40% of the total raw material requirement. The agency notes that for many of the basic denim fabric manufacturers catering to domestic consumption average realisations remained steady, despite higher cotton prices in 9MFY17. However, some of them have been able to increase realisations for 4QFY17 partly passing the cost inflation with a lag. Denim garments players are likely to perform better than fabric players, as the retail margins may sustain as fabric prices remain under pressure. Ind-Ra expects the denim sector to post robust volume growth of over 10%-15% in line with the past trend along with rising disposable incomes, rapid growth of the retail sector, westernisation trend, young population demographics, and versatility of denim as a fabric. However, Ind-Ra views that the capacity addition is growing at a faster rate. Moreover, the existing capacities will face competition from new-age cost efficient plants. The denim fabric industry is cyclical in nature and is characterised by periods of excess capacity followed by narrowing the demand-supply gap. The apparent short project pay-back has encouraged a number of denim fabric manufacturers to put up additional capacity, higher than the estimated demand growth. Further capacity additions are likely to keep the domestic competitive pressures heightened. As per CMIE data, a moderate level of new capacity ramp-up is underway in FY18. This includes capital expenditure for expansion and backward integration by a few companies namely, Nandan Denim Limited, Raymond Uco Denim Pvt Limited and RSWM Limited ('IND A+'/Stable). Overall, the credit profile for most players has come under pressure also due to the stretched working capital cycle and debt-led capacity expansion in the backdrop of operating margin pressure. Aggregate peer set net leverage (Net Debt/EBITDA) increased to 4.59x in 1HFY17 compared to 2.83x in FY16. The working capital cycle has got stretched to 61 days in 1HFY17compared to 54 days in FY16, on account of the high credit period and inventory holding for the new capacity ramp-up. Increased competition in the international arena and higher receivable days will impact the exports profitability. However, Ind-Ra believes the credit profile of value-add export-oriented manufacturers will remain robust. Industry players with diversified revenue lines with a mix of man-made textile products are better placed than the pure denim players. Also, companies with strong liquidity, low leverage and short working capital cycle are better placed to face the challenging times. Ind-Ra's rated portfolio includes Sangam (India) Ltd. (SIL; 'IND A+'/Stable), Aarvee Denims Limited, ('IND tA-'/Negative), RSWM Limited and Ultra Denim Private Ltd ('IND BB-'/Stable). Financials of Nandan Denim Ltd, Jindal Worldwide Limited and KG Denim Limited also formed part of the peer set for this study.
Source: Business-Standard
Apparel Manufacturers of India will conduct its 11th edition of trade fair in Kochi next month. Starting June 6, the three-day event will be held at Le Meridien. More than 60 renowned apparel brands will showcase their festive collections. According Umesh Bani, Key Organiser, Apparel Manufacturers of India, there has been a tremendous response in the earlier trade fairs held over the last three years with the participation of more than 700 retailers.
Source: Hindu Business line
The Government of India, through the textiles committee, has decided to sign a memorandum of understanding (MoU) with Japan Textile Products Quality and Technology Centre (QTEC) to jointly establish and encourage quality compliance activities. In this context, 'Industry Capacity Building Programme' are being organised at nine major textile centres in India. The textile and clothing industry of India is aiming to increase its exports to Japan, complying with quality requirements of the Japanese market. Thus, it was decided to extend helping hands to the Indian textile trade and industry, for better understanding of quality culture in Japan, particularly concerning textiles and apparels. The MoU is expected to usher in a new beginning in the international trade of textile and clothing from India to Japan as Indian industry is marching ahead. Trade and Industry appreciated the initiative taken by the Government of India and the textile committee which will bring in sizeable difference in the international trade, said Ajit B Chavan, secretary, textiles committee. Chavan added that a major reason behind sub-optimal level of exports to Japan from India is lack of awareness about the Japanese textile quality requirements in Indian textile industry. Subrata Gupta, joint secretary, ministry of textiles, said that by changing the mind-set, India can compete with Japanese quality requirements and hence enhance our quantum of textiles exports. Vijay Mathur, additional secretary general, AEPC, in his special address, presented a case study of M/s Neetee Clothing Pvt Ltd, Gurgaon, outlining how an Indian exporter met both the quality and process requirements of Japanese market. Toshiki Tasaka, director, overseas coordination department of QTEC; and Kei Funaki, ASEAN and South Asia regional manager, overseas coordination department, QTEC deliberated in depth on the subjects – difference of quality requirements between Western buyers; quality and compliance in Japan and JIS Overview; and the banned substance in Japanese market. Japanese delegates also discussed Japanese market requirements in terms of quality, makeup, benchmarking tools, Japanese industrial standards and various other compliances. The capacity building programmes are being organised as part of an earlier MoU that was signed between the textiles committee of India and Japan's QTEC back in November 2016.
Source: Fibre2fashion
The G20, which is clear that tax evaders deserve no refuge, is now batting for tax certainty to foster entrepreneurship, investment and growth. A subtle shift in its otherwise dismal perception of businesses became evident when financial leaders, who met at the German resort town of Baden-Baden, endorsed a report on the subject in March. They also vowed to track the progress on tax certainty in 2018. The group’s call for a predictable tax regime is well-timed, coming as it does when companies are grappling with a new set of global tax rules being adopted by governments, including India’s, to fight tax evasion. Global corporations worry that the new rules — to make them pay their share of taxes and do so in markets they make profits — will raise their tax outgo and compliance burden.
Finger on Tax Trigger
Will it give rise to tax terrorism, and drive investor sway from investing in growing markets? These are concerns that governments must address. The report on tax certainty prepared by the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD), based on a survey of many businesses, serves as a useful guide for India’s policymakers and tax administrators to shape a more certain tax environment. The reason: the country has adopted a slew of new tax policies, such as the general anti-avoidance rules (Gaar), to curb sharp tax practices. A law to fight black money is in place. India has also reworked its tax treaty with Mauritius and has now agreed to ink a multilateral pact to modify many tax treaties to curb misuse. Aligning domestic policy to global rules is in order. So is the move to create a Unique Legal Entity Identifier to make companies identify their real beneficial owners. Soon, the Centre and the states will also roll out the goods and services tax (GST), the biggest indirect reform to create one market. Reforms are welcome. But the challenge is to implement them in a consistent way without fuelling more disputes. Tax administrators must ensure a level playing field that eliminates harmful tax competition. It must address the genuine concerns of businesses as well, writes Akhilesh Ranjan, head of India’s International Tax Division, in his preface to ‘Information Exchange and Tax Transparency’ by his colleague Rahul Navin that argues for effective use of information sharing to fight tax avoidance. Data shows that over six lakh appeals relating to the Centre’s direct and indirect tax were pending, with a total disputed amount of about .₹ 8.2 lakh crore, at the end of 2015. Understandably, policy think tank Niti Aayog worries over the rise in tax disputes, saying it leads to uncertainty both for taxpayers and the government. Sensibly, it endorses reforms in tax administration — such as creating separate verticals for dispute resolution — recommended by the Shome panel. Disputes have risen as India’s income-tax law has become cumbersome over the years. The dispute resolution mechanism, too, has some distance to go. Quasi-judicial bodies such as the authority for advance rulings, which allow investors to know their tax outgo ahead of a transaction, must be up and running. Surely, it cannot give rulings if, say, the chairman’s appointment is pending. That’s uncertainty for an investor. The IMF/OECD report offers practical tips for governments to adapt to new tax policies: make tax laws simple, create a robust and time-bound dispute resolution mechanism, and have a predictable tax administration. India should blindly follow them.
Well-Stitched Gaar-ment
It would be comforting to investors, for example, if the government were to disclose its level of preparedness for the Gaar that entails tax officers collecting proper evidence before lifting the corporate veil to scrutinise any deal. Else, it will lead to unwarranted disputes. Similarly, intensive training of tax officers is needed for handling GST as teething problems are inevitable during the rollout. The RBI’s latest report on state finances has a concise analysis on ways to create an efficient common market. Rightly, it favours a simple GST de- sign to avoid classification disputes. Ideally, most products and services should attract the standard rate of 18%. RBI also underscores the need for timely dispute resolution, saying that’s a “prerequisite for the overall efficiency of tax administration and a conducive business environment”. With multiple stakeholders, disagreements may arise at several levels: between the Centre and states, between states, and between taxpayers and tax authorities. The RBI suggests practical ways to minimise disputes. It reckons that transparency in rules and procedures, easy availability of information and cooperation among stakeholders may help in preventing disputes. Outreach by tax authorities and guidance in filing returns will also help. The legal infrastructure — a national appellate tribunal to adjudicate technical disputes relating to assessments, a settlement commission and the facility for advance ruling on GST dues — should be functional. What is the recourse if disputes cannot be resolved within the GST Council? Not just the Centre, states also need to realise that certainty of the tax regime is a must for India to have an appeal as a place for doing business.
Source: Economic Times
Donald Trump sacks FBI director James Comey: Read full letter Limits of Trump's unconventional approach Trump crisis: Markets rule out impeachment, but stay cautious on a slippery slope Bond yields, Rupee to see higher impact due to Budget than markets. The Indian rupee lost more than one per cent of its value on Thursday on panic buying of dollars on news that there were chances that US President Donald Trump could be heading for an impeachment over alleged conversations with Russian government representatives. The market had built up a huge short position on the rupee, expecting it to fall after a stellar run in the last one week. Rupee rose to a 21-month high of 64.05 a dollar on May 15. Those short positions were covered on Thursday, said currency dealers. “Most likely a foreign investor, or a group of investors, liquidated their holdings. Some private and foreign banks were on a buying (dollar) spree,” said a senior currency dealer with a foreign bank who did not wish to be named. Foreign investors, who have heavily invested in Indian assets, are sensitive to any news coming from their home markets. Demands have been raised to impeach US President Donald Trump following a memo by sacked Federal Bureau of Investigation (FBI) director James Comey. Now, the investigation in Russian role in Trump’s election has been handed over to former FBI director Robert Mueller. According to currency dealers, the market was largely expecting the local currency to fall, but the magnitude was a bit surprising. Rupee lost about 69 paise, or 1.06 per cent, of its value against the dollar on Thursday, its sharpest decline in percentage terms since August 24, 2015, when it had lost 1.22 per cent.
Trump, Rupee
Technical charts show rupee should touch 65.10 level, erasing all gains it had in the last few trading sessions. The Reserve Bank of India (RBI) probably did not intervene much in the market, but the central bank is expected to come heavily in the market once rupee value nears the technical level as after this, the market enters into a panic mode. The central bank has been buying bonds in the last few sessions to build up its reserves. As on May 5, India’s foreign exchange reserve was at a record $375.72 billion. All currencies in the region fell against the dollar, but rupee’s fall was the sharpest in the region on Thursday. After rupee, the South Korean won was the biggest loser, losing 0.57 per cent against the dollar. Dollar index, which measures the greenback’s strength against major global currencies, rose 0.05 per cent. According to IFA Global, a treasury advisory firm, exporters should book their exposures and also book some of the long-term exposures, while importers should hedge their positions at around the current level.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1078.04 |
USD/Ton |
1.37% |
5/18/2017 |
|
VSF |
2199.63 |
USD/Ton |
-0.33% |
5/18/2017 |
|
ASF |
2294.00 |
USD/Ton |
0% |
5/18/2017 |
|
Polyester POY |
1074.41 |
USD/Ton |
0% |
5/18/2017 |
|
Nylon FDY |
2439.19 |
USD/Ton |
0% |
5/18/2017 |
|
40D Spandex |
5342.99 |
USD/Ton |
0% |
5/18/2017 |
|
Polyester DTY |
2468.23 |
USD/Ton |
0% |
5/18/2017 |
|
Nylon POY |
1292.19 |
USD/Ton |
0% |
5/18/2017 |
|
Acrylic Top 3D |
2686.02 |
USD/Ton |
0% |
5/18/2017 |
|
Polyester FDY |
5778.56 |
USD/Ton |
0% |
5/18/2017 |
|
Nylon DTY |
1335.75 |
USD/Ton |
0% |
5/18/2017 |
|
Viscose Long Filament |
2294.00 |
USD/Ton |
0% |
5/18/2017 |
|
30S Spun Rayon Yarn |
2845.72 |
USD/Ton |
0% |
5/18/2017 |
|
32S Polyester Yarn |
1659.52 |
USD/Ton |
0.26% |
5/18/2017 |
|
45S T/C Yarn |
2686.02 |
USD/Ton |
0% |
5/18/2017 |
|
40S Rayon Yarn |
1800.36 |
USD/Ton |
0% |
5/18/2017 |
|
T/R Yarn 65/35 32S |
2250.45 |
USD/Ton |
0% |
5/18/2017 |
|
45S Polyester Yarn |
3005.43 |
USD/Ton |
-0.48% |
5/18/2017 |
|
T/C Yarn 65/35 32S |
2337.56 |
USD/Ton |
0% |
5/18/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
5/18/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
5/18/2017 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
5/18/2017 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
5/18/2017 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
5/18/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14519 USD dtd. 18/05/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A private sector partnership entered into by the Nigerian Export Promotion Council in 2016 is already yielding edible fruits, writes Peter Uzoho Nigeria’s textile and apparel industry covers the entire clothing value chain, and has a strong potential for growth due to availability of cotton and the country’s large market-size represented by over 170 million inhabitants, who provide a natural market for textiles and apparels. Moreover, there is also the scope to export Nigerian textiles and apparels to other markets, especially to the USA under the African Growth and Opportunity Act (AGOA). The decline of the industry, which started from 2003, has resulted in Nigeria spending over $2 billion annually on imported textiles. However, with the Federal Government Intervention Fund of N100 billion for the cotton, textile and garment industry introduced in 2010, the sector has started picking up. Recent figures from the Manufacturers Association of Nigeria (MAN) revealed that the capacity utilisation in the sector has increased tremendously from 29.10 per cent in 2010 to 49.7 per cent in 2011 and currently put at 50.2 per cent. The industry is dominated by foreigners, though it harbours various classes of players, individual investors, partnerships and government involvement in the industry. Several bigger mills swathe all the sectors while some smaller mills survive by servicing and feeding the bigger players. Some of the players are from Hong Kong, India, UK, China, Japan and even Colombia. However, the sector lacks the presence of a virile garment making industry. To help solve this problem, the Nigerian Export Promotion Council (NEPC) established its fashion training facility, the Human Capital Development Centre (HCDC) in 2006. The centre is located in Apapa, Lagos, and has over 150 sewing machines, pattern making and cutting tables. It has the primary objective of promoting garment making skills, creating job opportunities and upgrading the technical skills to improve quality, productivity and efficiency level of the garment industry. It also supports the goal to establish the garment manufacturing industry as valuable with the hopes of boosting non-oil exports. On May 12, the HCDC saw its second set of students officially end training classes; 64 students, of which 16 are industrial pattern makers and 48 are sewing machine operators, successfully completed the intensive eight week training session. The classes were facilitated by Style House Files, a fashion business development agency, in partnership with the Nigerian Export Promotion Council (NEPC) and Vlisco Nigeria, the Dutch wax and design brand. The programme experienced a higher success rate in comparison to previous editions with a five per cent dropout rate and 98 per cent daily attendance. In a remarkable feat, 100 per cent of the students proceeded into the industrial training phase where they produced a ready-to-wear collection. The top five students from the training – Grace Ogwu, Simon Nneamaka, Bolaji Busari, Bukola Kumolu and Anu Akinrinwa – will be presented with machines and the best student will also get a cash prize from Vlisco as part of its ongoing support to the apparel production sector. The HCDC is part of the NEPC efforts to develop capacity for the garment sector. It was in February 2016 it engaged Style House Files to manage the centre. Under the arrangement, Style House Files will manage the HCDC and run training programmes that meet international standards for developing the skills of practitioners in the garment-making sector to meet the requirements of the fashion industry for exports. Speaking with journalists during a tour of the facility in 2016, the Executive Director/CEO of NEPC, Mr. Olusegun Awolowo said, “Nigeria is awash with creative talents in the fashion industry, whose designs can compete anywhere globally. However, there is a wide gap in production and finishing, which affects the marketability of garments made in Nigeria at the international market. Nigeria needs to participate more in the global market for garments, which was about $800 billion in 2015 and expected to reach $1trillion by 2020. The purpose of this centre is to build capacity of Nigerian garment producers in apparel production for local but particularly the export market.” In her remarks, Founder of Style House Files, Mrs. Omoyemi Akerele, said, “We are excited about this opportunity to partner with the NEPC on developing capacity for the garment sector. We will bring our experience and knowledge of the industry to bear on the management of the Centre. Our testimonial speaks of successfully creating a revolution in the Nigerian Fashion Industry by using our powerful knowledge to brainstorm truly innovative concepts and execute them professionally with enthusiasm that is yet to be surpassed.” NEPC recently relocated the Human Capital Development Centre to its office complex at Apapa, Lagos. The Centre was originally set up over 10 years ago in Ikoyi, as the AGOA Human Capital Development Centre, in partnership with the United States Agency for International Development (USAID). NEPC intends to reach out to national and international development partners to support funding requirements for training at the Centre. Already, the United Nations Industrial Development Organisation (UNIDO) is in talks with NEPC to collaborate on the Centre. NEPC is Nigeria’s apex agency for the promotion of non-oil exports. It promotes the development and diversification of Nigeria’s export trade; assists in promoting the development of export-oriented industries and plays a leading role in the creation of export incentives.
Source: This Day Live
A worker of old could only run two machines simultaneously. Now, one worker can operate 8-10 machines or even up to 12 machines at once. Therefore, when the spectre of Industry 4.0 sweeps across, a huge volume of workers will become superfluous. Industry experts and sector insiders assume that Industry 4.0 will only affect specific sections of the value system, having little to no effect on activities higher up on the value chain – such as the design phase. Pham Xuan Hong, chairman of the Ho Chi Minh City Association of Garment- Textile- Embroidery- Knitting (AGTEK), told VIR that some of their member units have invested in state-of-the-art equipment, but investment volumes remain modest. For instance, Viet Tien Garment Corporation has bought automatic equipment for certain stages of their shirt production process, and Hoa Tho Corporation spent a large sum to modernize their suit production facilities. Hong argued that about 50-100 steps are involved in making garment items, thus businesses will gradually automate their production processes ad hoc. “The top concern of textile and garment firms at present is to ensure stable production and incomes for labourers,” Hong said. Echoing his view, a source from French lingerie maker Scavi said that it is nearly impossible to automate the design process, as it caters to ever-changing fashion trends and customer tastes. The company has invested heavily in new equipment and technologies in the past, but mainly for specific parts of production. A recent International Labour Organization report shows that Industry 4.0 might make redundant 65 per cent of labourers in the textile, garment, and footwear industries in Indonesia, 86% in Vietnam, and 88% in Cambodia. Vinatas’ deputy chairman Truong Van Cam said that the consequences might not be so serious, and the automation rate varies based on the production stage. Experts, however, warned that textile and garment firms must find suitable growth paths for themselves. Hong from AGTEK suggests making full use of current production capacity to increase accumulation and prepare resources for technology innovations. “Two essential factors for businesses in the sector are investment capital and labourer skills,” Hong said, adding that most textile and garment businesses are concentrating on changing their business management methods. Additionally, they are also paying more attention to increasing sales in the domestic market.
Source: Vietnamnet.vn
With the development of cotton crops in the 2016/17 season coming to an end, Brazil’s Centre for Advanced Studies on Applied Economics has noted that nearness of the new crop increases dispute between purchasers and sellers. The harvesting period is approaching in many regions of the country. Liquidity, however, was low in the first fortnight of May. While sellers were willing to trade the remaining batches from the 2015/16 season at firmer prices, purchasers were retracted, working with the product previously purchased, the centre said. The development of crops has been satisfactory in almost all Brazilian regions and a good or excellent crop is expected. Thus, purchasers believe the entry of the new crop in the second semester may push down quotes. Sellers aim at selling a higher percentage of the output through contracts. Between April 28 and May 15, the CEPEA/ESALQ Index, 8-day payment terms, for cotton type 41-4, delivered in São Paulo, increased a slight 0.14 per, closing at 2.7679 BRL (US $ 0.8906) per pound on May 15. In April, 30.9 thousand tonnes of cotton were exported (Secex data), 4 per cent lower than in March/17 and 24.4 per cent down compared to the volume shipped in April/16. From August/16 to April/17, exported shipments totaled 554.5 thousand tonnes, 36.3 per cent lower than that in the same period last season (between August/15 and April/16). As for importations, Brazil purchased 4.8 thousand tonnes of cotton in April, 43.1 per cent lower than in March/17. However, from August/16 to April/17, the volume reached 29.5 thousand tonnes, much larger than 3.8 thousand tonnes from August/15 to April/16.
Source: Fibre2fashion
Today, U.S. Trade Representative Robert Lighthizer formally notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA), a trilateral free trade agreement between the United States, Canada, and Mexico. “The U.S. textile industry welcomes President Trump’s decision to renegotiate NAFTA,” said National Council of Textile Organizations (NCTO) President and CEO Auggie Tantillo. “It is in America’s national interest to modernize the agreement,” Tantillo continued. “Let me be clear: NAFTA is vital to the prosperity of the U.S. textile industry, and NCTO steadfastly supports continuing the agreement. With that said, NAFTA can be improved to incentivize more textile and apparel jobs and production in the United States, Canada, and Mexico,” Tantillo added. “Eliminating loopholes that shift production to third-party countries like China and devoting more customs enforcement resources to stop illegal third-country transshipments are two changes that would make the agreement better,” Tantillo said. “We look forward to working with our industry partners throughout the NAFTA region to improve this agreement for all,” Tantillo finished. NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
Source: Textile World
ISTANBUL / TURKEY: Pakistan’s growing Gross Domestic Product is becoming an attraction for Turkish companies as they scout for investments in the country, said Foreign Economic Relations Board of Turkey General Secretary Mustafa Mente. “The potential of Pak-Turk relations is much more than what the bilateral trade volume suggests,” Mente told The Express Tribune. Pakistan is among the first three countries when it comes to initial visits for any elected government of Turkey, he said. “The good news is that many Turkish companies now have their presence in Pakistan and the country’s rising GDP is fast becoming an attraction for them to look for more business avenues,” he added. Mente said the entire South Asian region, which includes Pakistan, India and Bangladesh is unique due to its huge population, almost 1.7 billion, and would be a choice for Turkish companies to invest. But he said distance and cost of travelling will remain issues. “We are also facing the same issue when it comes to the US markets, though there are a lot of opportunities for SMEs and other such businesses.” Pakistan and Turkey are also in negotiation to finalise a Free Trade Agreement to boost bilateral trade. As per the Pakistan Business Council, the current level of bilateral trade between the two countries is $584 million, which has potential to go up to $5 billion. Currently, Pakistan’s exports to Turkey stand at $391 million, whereas Turkey’s exports amount to $193 million. In recent years, few Turkish companies have invested directly in Pakistan, particularly in Punjab, but that is more due to the government’s urge to replicate some Turkish models in the provincial capital. The prime example is of Albayrak that is currently providing its services in transportation and waste management sectors. Some private groups have also invested directly in the electronic goods segment primarily to cover the region due to the upcoming China-Pakistan Economic Corridor, which will connect the region via rail and road links. Mente said that currently negotiations are under way for Foreign Direct Investments in textile sector particularly in fabrics and yarn; however, some technical issues remain unresolved. “Both sides are interested in investing in the textile sector but we have to find common ground,” he said, adding that he was hopeful that the level of Turkish investments in Pakistan as well as Pakistani investments in Turkey will rise across all sectors including health and tourism.
Source: Express Tribune
On April 22, as protesters swelled Earth Day rallies in U.S. cities and around the world, President Trump tweeted that he was “committed to keeping our air and water clean but always remember that economic growth enhances environmental protection. Jobs matter!” His message was eerily similar to assertions by governments in developing countries that environmental standards are less important than attracting jobs. Indeed, over the last few decades many developing countries have adopted loose environmental standards to lure foreign firms to move production there. However, an emerging body of research shows that policies like this also bring heavy pollution to the host countries. In a recent study, my co-author Xiaoyang Li and I found that a significant number of U.S. firms reduce their pollution at home by offshoring production to poor and less regulated countries. The greening of US manufacturing over the past several decades may be partially caused by a growing flow of “brown” imports from poor countries. Cleaner at home, dirty abroad A “jobs-first” policy can add to serious environmental challenges in the host country. For example, one recent study calculates that 17 to 36 percent of four major air pollutants emitted in China come from production for export. Among these export-related emissions, about 21 percent come from the production of goods for the United States. Studies like this suggest that trade can potentially redistribute environmental footprints. This can happen via two pathways. One is for “dirty” firms in rich countries to stay out of the entire value chain that contains the polluting activities. In this case, some rich country customers will stop consuming the “dirty” products, which is good for the global environment. Others will keep consuming “dirty” products imported from poor and less regulated countries. Another way is for firms in rich countries to keep selling the “dirty” products but redesign their production networks. They will offshore production (and jobs) in the “dirty” segment of the value chain to poor countries. They will then import the “dirty” unfinished products from poor countries for further domestic processing in the clean segment of the value chain. Unfortunately, existing studies have not been able to tease apart these two pathways. To find out if some U.S. companies were taking the second route, we obtained data from the U.S. Census Bureau and the Environmental Protection Agency about trade, production and pollution for more than 8,000 U.S. firms with 18,000 U.S. plants. We first found that of all goods imported by U.S. manufacturing firms (not wholesaler or retailers), the share produced in low-wage countries rose from 7 percent in 1992 to 23 percent in 2009. At the same time, toxic air emissions from manufacturing industries in the United States fell by more than half. Industries that experienced the greatest increase in imports from low-wage countries include printing, apparel and textile, furniture, and rubber and plastics. These industries also experienced some of the largest drops in air pollution in the United States. Second, using this unprecedentedly detailed data, we obtained some interesting findings at the firm and plant level. We found that as U.S. firms imported more goods from low-wage countries, their plants released fewer toxic emissions on American soil. In addition, their U.S. plants shifted production to less-polluting industries, produced less waste, and spent less on pollution abatement. In sum, these firms were improving their own environmental performance by shifting to less-polluting segment of the value chain domestically and moving more-polluting activities overseas. To our relief, we found that not all U.S. firms chose to offshore their pollution. In particular, firms that are more productive and invest more in R&D and brand equity offshore less pollution. These firms may find it less costly to renovate production technology domestically to comply with stringent environmental standards. They may also find it more rewarding to do so because consumers become more loyal to their brand for their socially responsible behavior at home. Changing firms’ incentives U.S. companies that offshore pollution are not violating environmental laws either at home or in their host countries. Indeed, rebalancing their global production is a logical response to higher environmental compliance costs in the United States. However, to the extent that U.S. firms can choose either to purchase cheap and “dirty-to-make” goods from low-wage countries or to produce them under stringent environmental standards at home, they are making a strategic decision about the private costs of production compared to the public (and international) costs of pollution. Companies that offshore pollution to less-regulated countries are taking advantage of those nations’ lower environmental and labor standards and letting the host countries bear the associated social costs. Unfortunately, it is not always easy to induce companies to adopt higher standards for their operations in developing countries. After Nike was first reported to have unsafe and abusive working conditions at its foreign plants, it took the company almost a decade to announce that it would raise wages, increase monitoring and adopt more stringent air quality standards in its factories overseas. Similarly, Foxconn – a key supplier to Apple – has incurred heavy criticism over its labor practices in China. The company reportedly has improved its working conditions there, but it has also diversified into other low-wage nations where regulations are more lax, including Malaysia, Mexico, Brazil, Vietnam and Indonesia. Reward social responsibility In a global market where companies compete fiercely across national boundaries, governments should coordinate closely to maintain a regulatory framework that incentivizes firms to undertake more socially responsible actions. Participating in trade agreements with strong environmental requirements, and in global coalitions such as those proposed at the United Nations Climate Change Conferences, is one way to coordinate. Unfortunately, some of the world’s largest economies seem to be stepping in the opposite direction. Jobs are important for both developed and developing countries. In the face of globalization, however, national leaders should focus more on jobs that are sustainable and do not come at the expense of the environment.
Source: Business Standard
ICE cotton futures fell on Thursday as a weekly government report showed a drop in export sales, with a recovering U.S. dollar and favorable weather in top growing regions also weighing on prices of the natural fiber crop. "The immediate nature of the market is that it seems to be following grain markets, currencies and also the good weather (in U.S growing regions)," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. "Sales were good but there were 12 countries that had small cancellations and the most important of those was India," he said. Weekly export sales data from the U.S. Department of Agriculture on Thursday showed net upland sales for the 2016-17 crop last week totaled 120,700 running bales (RB), down 25 percent from the week before. Reductions of 23,300 RB and 12,800 RB were reported for India and Japan, respectively. "The dollar has stopped going down and that seems to have caused some of these commodities to reverse and go down," Varner said. The U.S. dollar reversed early losses against a basket of major currencies on Thursday after stronger-than-expected U.S. economic data put the focus back on a widely anticipated increase in overnight interest rates by the Federal Reserve. * The July cotton contract on ICE Futures U.S. settled down 0.93 cent, or 1.16 percent, at 79.24 cents per lb. It traded within a range of 78.84 and 80.63 cents a lb. * The dollar index was up 0.39 percent. The Thomson Reuters CoreCommodity CRB Index , which tracks 19 commodities, was down 0.40 percent. * Certificated cotton stocks deliverable as of 17MAY17 totaled 387,267 480-lb bales, up from 384,842 in the previous session. * Chicago Board of Trade July soybean futures were down 27-3/4 cents at $9.48 per bushel after dipping to $9.46, the contract's lowest since April 11 * CBOT July corn was down 5-3/4 cents at $3.65-3/4 a bushel, and July wheat fell 1-1/2 cents at $4.25-1/2 a bushel. (Reporting by Nithin Prasad in Bengaluru; Editing by Bill Trott)
Source: Times of India
AS for the Sharif government, it has kept the detailed plans under wraps for fear that questions would be asked by the media and the people which it would be hard put to answer in the limited elbow room it enjoys, hemmed in as it is by the army on one side and the Chinese government on the other. For India, the thought of China at its doorstep is far from comforting. There is the added shock that whatever little chance there was of wresting from Pakistan the control of Pak-occupied Indian territory in Kashmir at some stage would evaporate with the Chinese having a stake in the region. Indeed, India can only pin its hopes on the opposition of Balochis and of people in Gilgit-Baltistan turning acute. But the China-Pak reprisals would be brutal and ferocious. There is no mistaking the fact that the China-Pakistan Economic Corridor with One Belt One Road as its flagship, may virtually convert Pakistan into an economic colony of China. But so blinded is Nawaz Sharif led Pakistan by the short-term benefits that would accrue to Pakistan from a tight strategic embrace of its ally that it is oblivious to the compromises he is making on Pakistan’s sovereignty. The grandiose plan would provide China connectivity from Xinjiang to the Arabian Sea at Gwadar in Balochistan. The range and scope of the plan is breathtaking, showing a deep penetration into Pakistan’s economic life. This could have several implications for India too. The fallout for India could be that it would bring China menacingly close to our borders in the east and west. It would be a virtual ring-fence of India. According to the perspective plan leaked by Pakistan’s Dawn newspaper, much to the Sharif government’s chagrin, thousands of acres of Pakistani agricultural land will be leased to Chinese enterprises for projects ranging from seed germination to irrigation technology. A full system of monitoring and surveillance will be built from Peshawar to Karachi, with 24-hour video recordings on roads and busy marketplaces for law and order. As per the CPEC, those entering agriculture must make the most of ‘free capital and loans’ from the Chinese ministries as well as China Development Bank. The report further states that China, according to the plan, has shown great interest in textiles too. Additionally, the plan also talks about a long belt of coastal enjoyment and many recreational activities and places like cruise homeports, yacht wharfs, theatres, golf courses, spas, hot spring hotels, etc. A national fibre optic backbone will be used not only for internet traffic but also terrestrial distribution of broadcast TV, which will cooperate with Chinese media in popularising China’s culture. Indeed, it would be a multi-pronged Chinese hegemony from economy to culture. Itching to break away from US influence, Pakistan is looking upon the Chinese embrace as a godsend but it would realize later that it has mortgaged its sovereignty to the Chinese. However, then it may be too late. The army, which has power but no responsibility in Pakistan’s scheme of things has been pushing for the CPEC but if and when something goes wrong, it would conveniently pin all blame on the civilian government of Nawaz Sharif. As for the Sharif government, it has kept the detailed plans under wraps for fear that questions would be asked by the media and the people which it would be hard put to answer in the limited elbow room it enjoys, hemmed in as it is by the army on one side and the Chinese government on the other. For India, the thought of China at its doorstep is far from comforting. There is the added shock that whatever little chance there was of wresting from Pakistan the control of Pak-occupied. Indian territory in Kashmir at some stage would evaporate with the Chinese having a stake in the region. Indeed, India can only pin its hopes on the opposition of Balochis and of people in Gilgit-Baltistan turning acute. But the China-Pak reprisals would be brutal and ferocious. It remains to be seen whether India’s access to the seas would be hampered through that route. If India works in tandem with the US, Japan and Australia the freedom of navigation can be hoped for, but US President Donald Trump is on his own ‘trip’ and there is no knowing whether he would be willing to take on the China-Pak axis. As it is, it was disconcerting that the US chose to be represented at the Beijing summit that deliberated on the ‘One Belt One Road’ initiative of China which would develop as a veritable stepping stone to Chinese hegemony in the region. A mature US president would have exercised utmost caution. The CPEC plan envisages a deep and broad-based penetration of most sectors of Pakistan’s economy as well as its society by Chinese enterprises and culture. The leaked Dawn report concluded, “In the areas of interest contained in the plan, it appears access to the full supply chain of the agrarian economy is a top priority for the Chinese.” After that, the capacity of the textile spinning sector to serve the raw material needs of Xinjiang, and the garment and value added sector to absorb Chinese technology is another priority. One shudders to think what impact these measures would have on Pakistan and the negative fallout it would inevitably have on India. India cannot but be wary of Chinese designs but there is precious little that this country can do without the backing of the US, Russia, Japan and Australia. Of these countries, Japan could be relied upon to some extent especially until Abe is at the helm there but understandably, self-interest drives all nations and it would be crucial how the Japanese see their future in the current context. The Russians stood by India through thick and thin but now they seem to see merit in tilting towards China and Pakistan. It would indeed be a major challenge for India to wean them away through deals that may be irresistible. But there is a downside to the hunky dory picture that Pakistan is painting for its people. Apart from a real fear of Chinese colonisation, the security situation in Balochistan, where Gwadar is located, is worsening, with “Islamic State” (IS) claiming two large-scale attacks in the past few weeks. Recently, the group attacked a Sufi shrine in the Lasbela district of the volatile Balochistan province, killing at least 50 worshippers. Insurgency in Balochistan is also gaining momentum with Gilgit-Baltistan resenting the colonization by the Chinese. All in all, it truly is a scenario that is pregnant with grim forebodings.
Source: Northline .com
The government of Germany will provide €7 million to Bangladesh to help with the remediation work of the country's readymade garment sector. As per an agreement signed between German Embassy in Bangladesh and the Economic Relations Division, the grants will help enhance the capacity of some of the commercial banks to address the funding needs of the sector. The agreement was signed by additional secretary of the Economic Relations Division, Muhammad Alkama Siddiqui, and German ambassador Thomas Prinz under the project 'Financing of Environment and Safety Retrofits in the Bangladesh Ready Made Garments (RMG) sector'. The funding is expected to ensure effective usage of credit, improve environment standards and promote safety of workers in the RMG sector, the German embassy said in a statement. The project will help in bridging the knowledge gap in investments and remediation upgrades as well as in the implementation of the investments, added the embassy. Germany is expected to provide €4 million through KfW and €3 million through GIZ.
Source: Fibre2fashion
The Pakistan government plans to reinstate the tariff after a gap of nearly seven months in response to recent large purchases from overseas. It will impose a four percent customs duty and five percent sales tax on cotton import by the middle of July, a statement said on Tuesday. On a proposal by the Finance Division, the ECC (The Economic Coordination Committee) of the Cabinet)) approved the restoration of import duty and sales tax on import of cotton with effect from 15th July 2017, the government statement said. The ECC meeting was chaired by finance minister Ishaq Dar. The decision has been made to boost the confidence of domestic cotton growers during the upcoming sowing season. A decline in cotton production last season forced the government to withdraw import duty and sales tax. The finance ministry had estimated revenue loss of around Rs10 billion following withdrawal of duty and sale tax. Pakistan's cotton consumption is pegged around 15 million bales, while it had produced around 10.5 million bales. The country was the third largest raw cotton exporter, but it has been an importer for the last two years. Last year, Pakistan imported around 2.7m bales from India.
Source: YNFX
Pakistan Yarn Merchants Association (PYMA) urge government to save polyester filament fabric industry from further disaster. In this regard, PYMA has issued an SOS (distress call) to Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar, Commerce Minister Khurram Dastgir Khan and Special Assistant to Prime Minister for Revenue Haroon Akhter. Danish Hanif, chairman PYMA (Sindh-Balochistan Zone), in the ‘SOS’ stated that around 300,000 looms and knitting machines have suspended operations during the last five years, resulting in directly and indirectly affecting a total of around 5 million people. The inefficient and outdated domestic polyester filament yarn (PFY) industry does not meet even 25 percent of the total demand of Pakistan. The PFY attracts 12 percent custom duty versus polyester fibre, which attracts only 7 percent custom duty whereas the raw material and the quantity input to produce both are exactly the same. According to the statement, polyester fiber is consumed by corporate sector versus polyester yarn in small and medium enterprises (SME) sector. In addition, local polyester staple fibre (PSF) production is enough to suffice Pakistan’s requirement, whereas production of polyester yarn is only 25 percent of the required quantity for Pakistan, still import duty of the PFY is at 12 percent compared to polyester fiber at 7 percent. They appeal to the concerned authorities to reduce custom duty on polyester filament yarns (P-FDY and P-DTY) (Chapter 54) from 12 percent to 7 percent and impose no further duty in any form. PYMA added that the ongoing Anti-Dumping Investigation on polyester filament yarn (PFDY/PDTY), which is a basic raw material for the polyester fabric is totally unjustified. The user industry would be unnecessarily penalized even for those products, which are not produced by the domestic industry. As a result, the cost for the end user would increase substantially and that would affect the weaving and knitting industry.
Source: YNFX.
