The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 12 JUNE, 2017

 

NATIONAL

INTERNATIONAL

Textile industry worried over 18% GST on manmade fibre; fear job cuts

New Delhi: Expressing concerns over the government's decision to impose 18 per cent GST on manmade fibre, the textile industry said the levy will dent the margins of firms manufacturing synthetic yarn and could lead to job losses. The industry is also uneasy about the effect on jobs like weaving, knitting, cutting and packaging, which it fears could hurt the small units badly. Manmade fibre fabric and yarn, along with dying and printing units and embroidery items will attract 18 per cent levy under the Goods and Services Tax (GST) regime slated for a rollout from July 1, leading to an increase in input costs. "The 18 per cent service tax will impact a lot. This is a big worry as presently there is no tax on job work. It will mainly affect the small and medium scale exporters engaged in job work activities," Cotton Textiles Export Promotion Council Chairman Ujwal Lahoti told PTI. He said there is also a possibility of job losses in the industries manufacturing synthetic fibres. Confederation of Indian Textiles Industry Chairman J Thulasidharan observed that the 18 per cent GST rate on manmade fibre and synthetic yarn would have inverted duty structure problem as the fabric would attract only 5 per cent GST rate. He also pointed out that the high GST rate can also lead to an increase in input costs and adversely affect the entire textile value chain. Echoing similar views, Southern India Mills Association Chairman M Senthilkumar said the GST rate would have inverted duty structure problem. The industry fears that high tax rates will intensify the tough competition it faces from countries like Bangladesh, Vietnam and China by leading to cheaper imports, increase the prices of textiles products and hit the business of domestic manufacturers.

Source: Economic Times

Back to top

Textile traders demand withdrawal of GST

Vijayawada: Andhra Pradesh Textiles Federation (APTF) state president B Malleswara Reddy on Sunday demanded that the Central government immediately withdraw the Goods and Services Tax (GST) to be imposed on textile business from July 1 this year.

Highlights:

• Vow to continue struggle till the Centre concedes their demand

• Say tax rules give room to corruption and harassment by tax officials

• Express concern that livelihood of lakhs of people depending on the trade like tailors will be affected by the GST

• Malleswara Reddy said nearly one crore people are directly or indirectly depending on the textile trade and related activities in Andhra Pradesh and many families would be affected by the GST. Textile traders from 13 districts of Andhra Pradesh attended the meeting held at the Krishnaveni wholesale textile complex in One Town on Sunday and discussed their problems arising out of GST from July 1. Several hundred textile traders who came from all the districts expressed apprehensions that the prices of cloth and garments would increase with the GST, which will ultimately affect both businesses and consumers. Malleswara Reddy said as per the GST, taxes will be levied on yarn, manufacturing, dying, additional work on the cloth like embroidery, etc. He said the government could collect taxes at the manufacturing stage without collecting GST from the retailers. Recalling that Chief Minister N Chandrababu Naidu as Opposition leader had extended his support to the textile traders when the Congress government increased VAT, he said as the Chief Minister he should take the responsibility and put pressure on the Centre to withdraw the GST on sale of textiles, cloths and garments. APTF general secretary B Venkata Narasimha Rao said that textile traders had already taken the issue to the notice of finance minister Yanamala Ramakrishnudu and asserted that textile traders would continue their agitation till the Union government withdrew GST on textile traders. He said the GST would ultimately lead to corruption. He further added that tailors, retail traders and others depending on the profession would be severely affected by the GST.A textile trader B Ramakrishna said there were some clauses in the GST which can be used to harass textile traders, who can also be arrested for not complying with the rules incorporated in the GST laws. He said as per the GST, five per cent tax is levied on the purchase of textiles below Rs 1,000 and the tax rate would jump to 13 per cent if the total sales exceed Rs 1,000. The textile traders resolved to continue their struggle till tax is withdrawn on the trade.

Source: The Hans India

Back to top

GST on textiles: Uniform tax rate through the entire chain is need of the hour

In a welcome move, the government has addressed the issue of fibre neutrality in the recently announced Goods and Services Tax (GST) rates on textiles. Fibre neutrality was a long-pending demand from leading trade associations, export councils, and local trade bodies of textile-centric states, though the target has moved from fibre to fabric. While being a highly decentralised sector, textile is the country's second-largest employment generator, involving multiple processes — from fibre to garment. The product changes lots of hands till it is ready to be worn by the consumer. The involvement of a large number of people in different processes – as traders, jobbers, and convertors – requires a uniform rate of tax through the entire chain of conversion from fibre to ready-to-wear fashion garment. This issue needs to be addressed by the GST Council. Currently, the GST rate on fabric is fixed at five per cent, while at the job stage – such as processing, embroidery or other value additions (each of these being a manufacturing activity by itself) – it is deemed to be a service and, therefore, attracts 18 per cent tax. The present GST rates create accumulated credit in the hands of weavers at the time of selling greige fabric to traders (merchant manufacturer) because the input-stage credit on man-made filaments and artificial yarn is 18 per cent, whereas the GST rate on greige fabric stands at five per cent. Similarly, when traders (merchant manufacturer) send the fabric for further job work – dyeing, printing, embroidery, and other value additions – they are deemed to be a service (job work) and are liable to a GST tax rate of 18 per cent. This results in accumulated credit in the hands of traders, where their input tax credit is 18 per cent at the processing and value addition stage, but they have to pay five per cent on processed and value-added fabric. It would have been better if accumulated tax credit in textiles was refundable in the hands of the weaver or the trader, or both. Another serious anomaly is the probable tax rate on imported fabric, which, if charged at five per cent, will create a further recessionary trend in the domestic textile industry. At present, fabric imports from China account for Rs 2,56,900 crore annually. The fabric is being imported at a compounded import duty of approximately 26.75 per cent and has caused almost 25 per cent of the domestic weaving sector to shut down. Under the new GST tax structure, imported fabrics can be imported at a basic rate of customs duty, which is 7.5 per cent plus the five per cent GST rate. Therefore, under the new regime, domestic fabric is not going to be cheap while imported fabric will be cheaper. A specific rate of duty needs to be imposed during import of fabric so that the domestic industry gets a level playing field. Let us hope that the GST council shall come out with some remedies that shall help the textile industry adopt the GST regime without further price rise till the fabric stage.

Source: Business Standard

Back to top

GST blues: Tamil Nadu textile hub fears 20-30% MSMEs may shut shop

Tirupur, a textile hub in southern Tamil Nadu, is worried about the 18 per cent Good and Services Tax (GST) rate fixed for different segments in the production chain. This will put pressure on the working capital of the job working units, forcing them to exit the business eventually and affecting the entire industry. The sector expects at least 20-30 per cent of the city's units to close down due to practical difficulties. Tirupur's textile industry does business worth over Rs 50,000 crore every year, including revenue earned from exports. The industry also employs over 1,000,000 people. Raja M Shanmugham, president, Tirupur Exporters Association, said that over 80 per cent of the units in the Tirupur cluster are dependent on the job works to carry out the various stages of garment manufacturing. The sequence of activates, from the yarn stage to garment, is knitting; bleaching; dyeing; calendaring or compacting; printing; garmenting; embroidery; and value-added activities like embellishment, glasswork, ARI work, thread work. The product is normally transported from one stage of processing to the other at least five to seven times before getting packed for shipment or for domestic sales. In almost every stage now, 18 per cent GST will be applicable. South India Hosiery Manufacturers Association President A C Eswaran added that the 18 per centmay increase costs by around two-three per cent. However, the worry is not limited to costs, according to T R Vijaya Kumar, managing director, CBC Fashions (Asia) Pvt ltd. "Somehow, we can manage through refund or passing on to the buyer. The worry is over the fate of hundreds of micro and small units, which were never under any tax purview so far," Kumar explained. GST rate on 'services' would affect the hosiery sector badly since most of the work in the production chain is usually outsourced by the main manufacturing units. Such work is handled by cottage units, which mostly do not have any exposure to computers or paper works related to tax. "They are scared and worried due to GST. Assuming they can handle this, the biggest challenge is working capital that will lead to units closing down," said Eswaran, who owns the Viking textile brand. "These units need to pay the tax every 7th of next month after GST, whereas their collection from vendors range from 60-90 days. This will lead to working capital burden," added Kumar. "It will be unbearable for them to bear the brunt of such a high levy of tax," said Shanmugam. K Selvaraju, secretary general, The Southern Indian Mills Association, said that the industry hoped that textile job work would be exempted from service tax. This is essential as most of these units are MSMEs and due to the predominantly decentralised nature of the industry, especially the powerloom, knitting, processing, and garmenting sectors. Selvaraju stated that the 18 per cent GST rate levied on man-made fibre and synthetic yarn would have inverted duty structure problem as the fabric would attract only five per cent GST rate. The association expects around 30-40 per cent stoppage of production in powerloom and garment knitting, which will put pressure on the industry.

Source: Business Standard

Back to top

GST rings in early on high streets

The Goods and Services Tax (GST) is bringing in early bonanza for shoppers of branded apparel and fashion accessories across high streets and malls. "End of season sale" of fashion retail brands, which typically starts in July every year, has mostly been advanced to June this time as companies want to clear their inventory before GST kicks in next month. Brands such as Puma, Bata, ONLY, Jack & Jones, Vero Moda, Louise Philippe, Van Heusen, Benetton and US Polo have already begun their sales across major cities. Retail chains such as Pantaloons, Lifestyle and Shoppers Stop are yet to come out with their formal end-of-season sale, but they have already started giving discounts on select brands in the range of 20-40 per cent. According to the store manager of a Louis Philippe outlet in New Delhi’s Connaught Place, the outlet has an inventory of 10,000 pieces. “The management has ordered us to clear old stock as products will have new price tags starting July. So, we have started offering discounts between 30 and 40 per cent on all merchandise from today. This is a pre-GST sale,” he said. In Mumbai, Louis Philippe has started a preview of the sale, offering "buy three, get two free". It was a similar story at Van Heusen, or US Polo or Bata. "Though the difference between old and new rates are not much, there would be some compliance issues if we do not liquidate old merchandise," said an executive at textile major Arvind. The government announced a GST rate of 12 per cent for any apparel costing above Rs 1,000 and 18 per cent for footwear above Rs 500. This is expected to either push up the prices of products marginally unless retailers absorb the increase. "Retailers are saying they are advancing end of season sale due to GST, but I do not know how much GST has contributed to their decision," according to Anupam T, vice president at Oberoi Mall in Goregaon area of Mumbai. Mukesh Kumar, senior vice-president at Mumbai-based Infiniti Malls, said apparel brands were already prepared for the higher rates under the GST. "They have not kept higher stocks anyway. They know they have to advance the sale to clear the existing stock," Kumar said. While food and grocery chains are yet to come out with any sale, analysts expect destocking to happen there as well. "Destocking will happen in second half of the month. Companies are aware of retailers’ concern and do not want a situation of stock-outs. They are willing to compensate wherever there is compliance and data," said Abneesh Roy, senior vice president of institutional equities at Edelweiss Securities. However, retailers contested that view. Rakesh Biyani, joint managing director at Future Retail, said there was sufficient input credit which would bridge the gap between old rates and new rates. "The difference between old and new rates in apparel is just 0.9 per cent. So there is not much burden,” Biyani said. Neville Noronha, managing director and chief executive of D-Mart, pointed out that the value retail chain works on an optimal inventory of 30 days. "We anyway don’t keep much inventory. Reducing it further would lead to losing sales," he said.

Source: Business Standard

Back to top

GST won't be taxing: Meghwal

Taking into consideration the plight of trade and industry over the Good and Services Tax (GST) rates for a smooth transition to the new indirect tax regime, Arjun Ram Meghwal, Minister of State for Finance and Corporate Affairs, today said his ministry was seeking inputs from stakeholders from over 600 districts and would submit the report by June 14 to BJP national president Amit Shah. Addressing mediapersons at the Chandigarh Press Club, Meghwal said: “A number of trade and industry associations have expressed concern and have also been calling for a review of the rates of various items where they feel that the proposed rate under the GST is higher than the existing ones. So, we are taking the stakeholders’ feedback.” But the final call would be taken by the GST council for certain goods on the basis of representations made by the industry, industry associations and traders. The next meeting of the council will be held on June 18. On being asked about the industry, which has made reservations on the proposed tax structure rates, he added, “Textile is one of the sectors, where we have seen representatives from the industry, especially from Surat and Rajasthan, seeking lower rates. The other one is the marble industry from Rajasthan where the industry stated that only 5-10 per cent units were paying excise duty while the remaining were exempted from the excise net because of the SSI exemption available up to the turnover of Rs 1.50 crore.” Manmade fibre fabric and yarn, along with dying and printing units and embroidery items, will attract 18 per cent levy under the Goods and Services Tax (GST) regime. In teh textile sector, garment manufacturers and cloth manufacturers want different rates. Also, the GST on marble has gone up to 28 per cent from the current tax incidence of 5 per cent. The traders and industrialists are seeking lower rates. Later while interacting with the industry members at the CII, Meghwal said: “The GST is the biggest economic reform to achieve a level-playing field with the developed nations of the world.” To create awareness and dispel doubts on the system, he said the finance ministry had advised the trade and industry bodies, along with its three technical institutes — Institute of Chartered Accountants of India, Institute of Company Secretaries of India and Institute of Cost Accountants of India — to organise awareness campaigns.

Traders air grievances

The executive body of the Chandigarh Beopar Mandal (CBM) met Arjun Ram Meghwal, Minister of State for Finance, and raised issues related to traders with him. Anil Vohra, president of the CBM, gave a charter of demands to the minister. Vohra said: “Our traders should not be harassed by the GST.” He said before the GST, there was no tax on the textile industry and under the single taxation system, 5 per cent tax has been imposed on the wholesale and retail cloth merchants. The minister also assured the CBM of considering its demands saying he would talk to the Punjab Governor. Sanjay Tandon, president, BJP, Gian Chand Gupta, State Minister of Haryana, and Adviser, CBM, Asha Kumari Jaiswal, Mayor, were present at the meeting. Assures traders of addressing their concern; says stakeholders’ feedback being taken.

Source: The Tribune

Back to top

Textile traders urge exemption

Vijayawada: Andhra Pradesh Textile Federation (APTF) president Busireddy Malleswara Reddy demanded that the Union and state government should exempt GST tax on textiles. He opined that imposing of GST would wreck small and medium textile traders. He inaugurated APTF office at Sri Krishnaveni Whole Sale Clothes Market in Panja Centre, here on Friday. Later, speaking to newsmen, he said that from yarn to retailer 30 to 35 per cent to 35 percent tax would be imposed under GST.  “Union government decided to impose 18 per cent tax on yarn, 12 per cent on readymade garments and 5 per cent on retailer sales. This is a critical situation for traders, we will convene a state-level meeting, here on June 11,” he informed. Reddy stated that the federation would organise a protest until the centre rolls back GST tax on textiles. He recalled that at the time of VAT, the traders were on protest till the tax was cancelled.

Source: The Hans India

Back to top

DGFT creates GST Facilitation Cell for exporters

DGFT has constituted a GST facilitation cell in DGFT Headquarters to assist and advice exporters , trade and industry for smooth transition from present regime to GST regime w.e.f. 1st July 2017.The GST facilitation cell is headed by Mr Nikunj Kumar Srivastava, Add DGFT and comprises two other officers Mr Rakesh Kumar Joint DGFT(r.kumar73@nic.in), Mr Kaushlendra Pratap Singh Deputy DGFT(Kaushlendrap.singh@nic.in. Exporters can email their queries concerning GST and pertaining to FTP. Similarly all regional offices of DGFT have constituted GST facilitation cell and the cell would headed by head of the regional office i.e. Add DGFT/ Joint DGFT with other two officers of the rank of Deputy DGFTor Asst DGFT. Recently, DG, DGFT also convened a meeting of stakeholders (FIEO/ trade/ industry) on 9 th June to understand the issues being faced by them in GST system. These issues have been taken up with department of revenue and GSTN, who have informed that most of the issues have already been resolved. Earlier, DGFT, jointly with FIEO, had also organised an outreach program on 2nd June, 2017 to educate the exporters about GST regime. This program was attended by large number of exporters. Shri Ajay Bhalla, Director General DGFT himself addressed the exporters and explained them about all aspects of GST including benefits that will accrue to them because of automatic and quick refund of all taxes paid on inputs. DG also responded to many queries of the exporters regarding various export promotion schemes, filing of GST returns and claiming refund. Shri Tejpal singh, Addl DG, DGEP and Shri Yoginder Garg commissioner customs were also present in the workshop, who made detailed presentation on GST. It may be noted that earlier Department of Commerce had announced to align the mid-term review of Foreign Trade Policy with roll out of GST for the convenience of exporters and industry.

Source: PIB

Back to top

Assam government to formulate new textile policy soon

Chief Minister Sarbananda Sonowal asked the officials to devise strategy to project the handloom products of the state at the India-International Textile Summit, 2017, to be held in Gujarat.  Assam government today said it will enact a new textile policy in the near future for production and marketing of handloom products in the global market. “Government of Assam will soon formulate a textile policy for giving a major fillip to handloom and textile sector in the state,” an official release said. The proposed policy will focus on integrating production and marketing of handloom and textile products, empowering weavers and making a niche for handicrafts of the state in the world market, it said. “Chief Minister Sarbananda Sonowal directed this while reviewing the activities of the handloom and textile department today. He also directed the department to set up a state of the art emporium showcasing unique and attractive fabrics of all communities of the state shortly,” the statement said. Sonowal asked the officials to devise Sonowal asked the officials to devise strategy to project the handloom products of the state at the India-International Textile Summit, 2017, to be held in Gujarat. The textile summit, to be inaugurated by Prime Minister Narendra Modi, will see participation of 28 countries like China, the US, the UK, Australia, Germany, Sweden, Spain, Kanada, South Korea, Russia, South Africa, Brazil, France, the Netherlands, Vietnam and Hong Kong. Referring to the vast potential of the sector in the state, Soonowal advised the department to formulate pragmatic strategies to empower the rural weavers, marketing of the products as well as motivating young entrepreneurs to take up the trade.

Source: PTI, Financial Express

Back to top

Smriti Irani to Firstpost: Involving weavers in policy implementation the way forward for Indian textiles

Union Textile Minister Smriti Z Irani isn't coy about her image that she maintains. A feisty leader, Irani essays her new assignment after her abrupt exit from the Ministry of Human Resource Development with usual aplomb. She has learnt on the job that weaving of yarn is intricately linked to India’s social, political and spiritual legacy. Did she know about it when she was moved to this department? “My boss knew it,” she tells Firstpost’s Pallavi Rebbapragada and Ajay Singh. When you were given the Ministry of Textiles after the Cabinet reshuffle in July 2016, people declared it a demotion. What did you feel about the switch? Had I remained in the HRD, my view of administration would have remained myopic. My previous ministry offered me a social sector overview of the country, but education is just one social aspect. This new assignment gives me a more expansive economic perspective on India as it involves dealing with a high-end industry and large corporations, small and medium scale enterprises, and weavers and artisans. On the one hand, you are discussing viscose with the Aditya Birla Group, on the other hand, you’re talking to a Benarasi weaver about craft.

What were your first impressions about the sector?

To understand why the sector was stagnating, we combed government files of the last five years and detected misgovernance. Of approximately 40 schemes, 22 used to be surrendered each year. To ensure that authorised funds reach the weavers, we enrolled them in Direct Benefit Transfer schemes and eliminated middle-men. For instance, NGOs that had been receiving government funds for years were asked to disclose details of the communities they had been supporting. I travelled to places like Bhiwandi in Maharashtra and Surat in Gujarat to invite medium-level weavers to become a part of policy-making and implementation because it is entrepreneurship that will drive the economic revolution. In Benaras, I noticed that the weavers took loans to buy new looms. In order to establish comprehensive outreach, the government now offers 90 percent on the purchase of a new loom to weavers who have adapted their skill set to include new design and marketing techniques taught at government centres. The National Textile Policy will soon be implemented. How will it consolidate a sector as intricately diverse as this one? A one-size-fits-all policy will not work. Policy takes time in terms of consultation, but the government cannot remain stagnant while consultations are on. While developing the PowerTex India, a comprehensive scheme for powerloom sector development (that features in-situ upgradation of plain powerlooms, group workshed scheme, yarn bank scheme and pradhan mantri credit scheme for powerloom weavers, facilitation, IT, awareness and market development), we ensured that it was implemented on 1 April and no time was wasted. The scheme gave impetus to smaller units wherein shut downs were much more compared to the larger units. We will soon be coming out with a knitwear package. In both cases, stakeholders have been invited to be part of policy-making, especially small- and medium-scale enterprises that need a healthy environment to prosper in. Ours is not a ministry working independently of what is happening on ground. In order to standardise quality and protect weavers, why doesn’t the National Handloom Act make the handloom mark compulsory? Thousands of workers who are falling out of work because technology is disrupting the industry – from digital block printing done on rotary machines in Sanganer in Rajasthan to the invasion of Chinese silk in the Benaras and Tamil Nadu’s Kanjivaram silk markets. A geographical indication (GI) is a name or sign used on certain products, which corresponds to a specific geographical location or origin (e.g. a town, region, or country) and we have been emphasising on the GI tag. A lot of protectionism can be ensured without going to Parliament and tweaking the National Handloom Act. Law and order is a state issue and when governments are alerted about spurious articles being promoted, they alert the state. Similarly, regarding dumping of fabric from an international venue, we alert our colleagues in commerce and the Directorate General of Foreign Trade takes action. We cannot interfere because of World Trade Organisation constraints, but we ensure that the DGFT is in conversation with the industry. We ensure that weavers and artisans registered on our portal can put out their products on commercial sites so the buyers know these products are quality-certified. The Indian Handloom Brand lets manufacturers pick up the weavers’ produce directly. Biba, a women’s clothing brand, picked up 8 lakh metres of cloth directly from the weaver. We now have Allen Solly and Peter England shirts being made by Indian weavers. Will legalising the use of powerlooms for handloom threads further weaken the handloom sector? The raw material base of the handloom industry – several region-specific cotton varieties suitable for handloom weaving – has been destroyed. Cotton cultivation is now dominated by American cotton varieties not suitable for handlooms and, more recently, by the problematic genetically modified BT cotton. There’s more and more desire in the world for a sustainable developed product. For instance, Suvin is a long staple cotton variety that is better than Egyptian cotton, which design patrons in London and New York swear by. Like a mother cannot differentiate between her children, I can’t pick cotton over man-made fibre. We benefit as a nation if we make India the global sourcing hub. For too long, the poverty and drudgery behind handloom has been sold internationally. There are economic issues confronting industries abroad too, but you only hear stories of pride and legacy. What we need to do is sell our pride and legacy in a handcrafted market that stands at Rs 37,000 crore. (Anant Kumar Singh, secretary, Ministry of Textiles, sat by Irani's side in a cotton dhoti and kurta, validating and reinforcing her beliefs through his presence). Sabyasachi Mukherjee, a name famous in international design circles, says he is snobbish about his Indian legacy. The Narendra Modi government has made big efforts to make khadi a "zero-effect, zero-defect" global product by harnessing solar energy to power charkhas across the country to enable hand-spun khadi to become the zero-carbon footprint green fabric of India. How has it made khadi competitive in terms of reducing the cost of yarn and production? In 2017, does khadi symbolise self-reliance yet again? I’ve watched the growth of khadi, it's done tremendously well because the prime minister has continuously appealed to the public to embrace the fabric. Once you have a larger consumer base, industry shows interest in being a part of a trend that is popular nationally, larger volumes are demanded, and as a result, prices of raw materials becomes competitive. The government has fixed a 5 percent GST rate on cotton fibre, yarn and fabric against the current prevailing rate of ‘nil’. Silk and jute have been kept in the ‘nil’ category under the GST. Man-made or synthetic fibre yarn will attract 18 percent GST. Instead of uniformity, is the differential treatment for cotton and synthetic fibre on GST rate an opportunity lost for a uniform rate for textile sector? Man-made fibre, synthetics and cotton have never been on the same platform in our country. We’ve never had fibre neutrality. Earlier, if you included state and national taxes and mandi taxes, you would pay around 35 percent. Now, GST has fixed it at 18 percent. Industry should be celebrating. One of the biggest advantages of the GST regimes starting 1 July is that garments below Rs 1,000 will come in the five percent bracket. It’s a big opportunity and boon for the consumer. How can the role of state-owned emporiums, like Mrignayanee in Madhya Pradesh, Garvi Gurjari in Gujarat and Gangotri in Uttar Pradesh, go beyond showcasing local produce? Instead of museumising handicrafts and textiles, how can a stronger, wider and more sustainable internal market be developed by these institutions? It is incumbent on the state to take measures to promote its crafts. I’ve seen Mrignayanee and Biswa Bangla from Bengal (which was a niche, high-end brand) do well. Today, tourists coming from the UK and the EU want to understand the life of a weaver or an artisan, and even international tour operators want to offer that experience. We've had a meeting with the Ministry of Tourism and have said that if there's any tourist circuit you want to do in conjunction with all the textile clusters, we are more than happy to do this. The Indian fashion market is already worth $67 billion, making it as valuable as the combined size of 15 of the biggest West Asian countries, or about a fifth the size of the US or China. By 2020, it should reach $88 billion. The design fraternity feels that textile revivalism is a slow process and involves a great deal of investment of time and money, some invest up to two years to understand and revive a weave. What kind of support will be extended to the big and small private players? The government has no role when a designer wants to go work with a weaver. We have had situations where a particular weaver has told us that the designer has stolen his design, as he had no Intellectual Property Right (IPR) over his creations. In such a situation, it is not the designer but the weaver who needs handholding. Each weaving centre has a desk that ensures that the weavers’ ancestral patterns are protected. Anavila Misra (known for her linen sarees) went to Bengal to work with weaver communities and catalogued it. The designer did not ask for protection. Sanjay Garg (founder of contemporary Indian textile brand Raw Mango) accompanied me to Surendranagar district in Gujarat and expressed an interest in wanting to work with the Tangaliya tribes. Rajesh Pratap Singh (who excels in menswear) has been using Suvin for quite some time, but The Cotton Association of India wasn’t aware of this till recently.

What is the challenge of bringing young people into the weaving fold, and the importance of developing service centres in the states – with good infrastructure and equipment – to empower the youth with technical skills? The only way you can make craft a passion is if you emphasise on productivity and economic impact. Some families are recognising the value of this by ensuring that each successive generation has broader skill sets, from being able to engage their customers in English or explain the history and origin of the product they are interested in. New people must also come forward, learn and make textile a part of their legacy. Speaking of weaving service centres in states, those are 28 in number and a committee that features Laila Tyabji and Jaya Jaitley (craft reformers), Anavila Misra and Sabyasachi, is coming forward, inspecting and ensuring that material is made available. Meetings are being held on high levels to ensure threads reach the weavers on time.

Source: Firstpost

Back to top

Travancore Rayons staff welcome government decision

The more than 2,000 employees at Travancore Rayons Limited have welcomed the decision by the State government to finally settle the company’s financial dues and wind up the unit. The government order, issued last Friday, said it had sanctioned a total of ₹70.34 crore for the final settlement of dues. Of this, ₹36.20 crore will go into the settling of dues with banks and other financial institutions. The remaining portion of the money, ₹34.14 crore, will go into paying off the employees, including their EPF and ESI contributions. The unit has been shut since 2001, but since then there have been several attempts to revive the unit with the employees seeking a stay on the winding up orders after it was referred to the Board for Industrial and Financial Reconstruction. The government expects that the High Court will permit the official liquidation of the company once the institutions to which the land has been pledged are paid their dues. The government will take back 65 acres of land on which the unit is located. Out of the total 73 acres, five acres were used to set up a sub-station of the Kerala State Electricity Board. A total of 2,020 employees and their families will benefit from the settlement. Some of the employees have passed away. There are 545 employees who continue to be on the rolls of the company, said sources in Travancore Rayons Samarkshana Samithi. The Samithi has welcomed the government move and said it had come at the end of 16 years during which period hopes of revival continued. The State government had also roped in the Kerala State Industrial Development Corporation for settling the company’s dues. Travancore Rayons Limited, near Perumbavoor, had its glorious days in the industrial history of Kerala as the first maker of cellulose-based viscose filament yarn. The company was, however, locked out in 1984 to be reopened two years later. However, hopes of revival soon faded.

Source: The Hindu

Back to top

Leading textile company blends textile and technology to create 3D rug

While curling up in bed with a book might be an idea that would appeal to many, what if the bed itself turned into a story book? Hinging on this rather ambitious premise, the creators of SpinTales set out to make the world's first augmented reality linen. From the house of WelSpun, India's leading textile empire, the products - a duvet and a rug - have blended textile and technology to create augmented reality home décor - to further entertainment and learning for children, besides comfort, of course. The products make use of the concept of pop-up story books to translate the same on the fabric, with the help of an interactive app. The illustrations on the rug and the duvet form two distinct templates for the stories to unfold. The artwork on the duvet takes you back to your own childhood picture book reading days, with its detailed drawings of roads and castles and gardens in vibrant hues. If it reminds you of Walt Disney cartoons you watched as a child, there's good reason for that. The illustrations, in fact, have been done by artists, who have previously worked with the iconic banner. The products are connected to an app, called SpinTales, available on both Apple and Android devices. Once you have made the purchase, the QR code on the packaging needs to be scanned through the app. The process lets you set up a verified account linked to your email, under which you can set up as many users as you want. The template on the fabric is duplicated in the app, and it is through the latter that the characters on the fabric come alive when the device is scanned over the fabric. A story-telling voiceover accompanies the visuals. The duvet comes with three stories - each one a spin-off of a classic English fairy tale. There's Little Red, a take on Little Red Riding Hood, Three Pigs, a revised version of Three Little Pigs and Magic Bean, based on Jack And The Bean Stock. The characters in each story navigate on the landscape provided by the real duvet, and if one is sitting on the duvet, they become a part of the story that is being told - that's where the augmented reality aspect comes in. For instance, the wolf in Little Red will ask questions like, 'Do I look like Grandma?', or instruct you not to tell Little Red, where he's lurking around. The stories are woven in a manner, where the narrative often breaks into activities children can engage themselves in. When Red Riding Hood goes to visit grandma in Little Red, there's a mini lesson in making cookies. There are also pointers on the app that educate further on what one sees. What widens the scope of the experience further is that each time you are likely to scan a different spot on the fabric and let the story take off from there. The rug follows the same concept but is more activity oriented, wherein a character called Milo imparts yoga classes, among other things. The set up for both products is such that the child will be compelled to move around, rather than sit at one place and watch the stories unfold. At Rs 7,000 for each product, the price tag is premium. However, the experience it contains might just justify it. One thing is for sure: With this duvet and rug, your child wouldn't want to delay bedtime anymore.

Source: Mid-Day

Back to top

Cotton area up 50% in Punjab as farmers expect better returns

The area under cotton cultivation has increased by 50% in Punjab. From 2.57 lakh hectares last year, cotton has been sown on 3.82 lakh hectares this year. The last year’s dip was attributed to farmers switching to paddy after the whitefly attack that destroyed over 60% of the cotton crop causing an estimated loss of Rs 4,200 crore in Bathinda, Mansa, Muktsar and Fazilka districts, also known as the cotton belt of Punjab. Director, agriculture, JS Bains said awareness camps and high prices — between Rs 6,000 and Rs 6,500 per 100kg — for their produce last year encouraged more farmers to go for sowing cotton this year. “Per hectare yield in 2016 was 756kg as compared to 197kg in 2015. We held training sessions for farmers on preventive practices to avoid whitefly attack,” said Bains. “Our surveillance teams kept us updated about growth cotton sowing area. We had familiarised farmers to preventive techniques like yellow trap which kept the whitefly away from the field,” he said, adding that the cultivable area is likely to increase to six-lakh hectare by the next year. Cotton farmers say they have bought seeds and pesticides prescribed by the Punjab Agricultural University, Ludhiana, and expect a bumper crop this year.

‘BREAKING WHEAT-PADDY CYCLE’

The Cotton Corporation of India (CCI) also attributed better prices to increased cotton acreage. CCI bathinda branch manager Brijesh Kasana said: “The average price offered for cotton was Rs 5,500-Rs 5,600 a quintal and last year it jumped to Rs 6,500. The farmers realised this and they have sown the crop expecting similar dividends this year too,” he said. The government wants to revive cotton production to end the wheat-paddy cycle, he said, adding the area is not suited to paddy cultivation due to depleting water table.

‘MORE OF A COMPULSION THAN CHOICE’

“The input cost of growing water-guzzling paddy is more than cotton,” said Ram Singh of Behnibagah village in Mansa. Cotton cultivation needs less water and thus involves no fuel cost for running submersible pumps, he added. “The choice to grow cotton is more of a compulsion than choice due to poor supply of canal water,” said farmer Joginder Singh of Makha village, adding that the underground water is not suitable for the cotton crop.

Source: Hindustan Times

Back to top

'Demand for garments growing thanks to digitisation, social media'

KOCHI: Changing consumer preferences in garments have put apparel manufacturers in a spin with an increase in inventory and a need for focussed planning, says the Apparel Manufacturers of India. “With fashions changing fast, especially the availability of imported apparel brands, the shelf life of designs has reduced, posing a challenge to the domestic garment industry,” Nikhil Furia, core team member of AMI said. “Today there are many foreign brands in the market and they are upgrading consumer preferences. This ensures growth and the consumer is ready to spend more,” he told BusinessLine in an interaction. The demand for garments has been growing, especially with digitisation, social networking sites and apps ensuring that people look their best. Earlier, there were only two order bookings – in summer and winter. Today, it happens every quarter with the launch of new designs, he said. The growth rate in menswear brands is at 7-10 per cent, while women's and kidswear constitutes 15-20 per cent. The Indian apparel and textile industry is the second largest after agriculture, he added. Furia was in Kochi for the AMI fair, a B2B meet organised by manufacturers and traders to expose their brands to retailers, multi-brand outlets and store chains ahead of the Onam festival season. The fairs have been organised in Kochi, Chennai and Hyderabad. Since most of the apparel manufacturers and traders take their orders in a fragmented manner, the idea is to give them a platform where all the retailers find the best fashion options from Mumbai at one place, one time, he said. He pointed out that there was a growing presence of retailers at such B2B meets, and the last meet organised in Chennai witnessed the participation of more than 700 retailers, placing orders worth ₹50 crore. Buoyed by the response in B2B meets in South India, he said AMI intends to take the fair to international destinations such as Sri Lanka and Africa.

Source: Business line

Back to top

Ministry of Home Affairs supports Nagaland Fashion week 2017

 

The Ministry of Home Affairs, Government of India today extended its support towards Nagaland Fashion week 2017. A received from the youth icon of North East, Kiren Rijuju, Minister of State for Home Affairs stated, “Our Government is committed to empower women and provide them equal opportunities in every sphere. Actually, it is only through women’s empowerment that an empowered India can be built. The development of the North East Region is another top priority area of our government and all efforts are being made for comprehensive development of the Region. Therefore, any organization which supplements the efforts of our Government in this regard needs to be complimented.” He also added, “I am told that Delhi Fashion Club, New Delhi apart from focusing on Women empowerment, will be promoting North East culture, textile and tourism internationally through a sequence of events. The Club has rightly recognized the importance of the handicrafts and handlooms industry and the dominant role it plays in the cultural and economic development of the North Eastern States. There are huge employment opportunities which need to be tapped. I am happy to know that Delhi Fashion Club is organizing ‘Nagaland Fashion Week’ at Indira Gandhi National Centre for the Arts, New Delhi in August/September, 2017 to promote artisans from North-East and generate self-employment among them.” The Minister also sent his best wishes for the success of the event.

Source: Morung Express

Back to top

India’s textile heritage showcased online

Google’s “We Wear Culture” project includes digitised exhibits from Indian institutions too. “You might be surprised to find out that your sari, jeans or the black dress in your wardrobe has a century-old story. What you wear is true culture and, more often than not, a piece of art,” Amit Sood, director of Google Arts and Culture, said in a statement. The project includes collections from Chhatrapati Shivaji Maharaj Vastu Sangrahalaya (CSMVS) and varied weaves from across India, from Gharchola to Patola to Temple to Ikat styles, as it traces the story and importance of Indian textiles, the company said. Tribal designs  It showcases designs from north-eastern India, including the weaves of the Nagas, Meiteis and traditional attire from Meghalaya called ‘Dhara’ or ‘Nara’ worn by the Khasi women. The virtual exhibits can be viewed on the project website or through the Google Arts and Culture app. Making a pitch to young users, the website features YouTube personality Ingrid Nilsen in short videos, in which she explains the evolution of the various garments and jewellery.

Source: The Hindu

Back to top

Global Crude oil price of Indian Basket was US$ 47.00 per bbl on 08.06.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.00 per barrel (bbl) on 08.06.2017. This was lower than the price of US$ 48.11 per bbl on previous publishing day of 07.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3024.74 per bbl on 08.06.2017 as compared to Rs. 3101.10 per bbl on 07.06.2017. Rupee closed stronger at Rs. 64.36 per US$ on 08.06.2017 as compared to Rs. 64.45 per US$ on 07.06.2017. The table below gives details in this regard:

 

Particulars    

Unit

Price on June 08, 2017 Previous trading day i.e. 07.06.2017)                              

Pricing Fortnight for 01.06.2017

(May 12, 2017 to May 29, 2017)

Crude Oil (Indian Basket)

($/bbl)

             47.00                (48.11)   

51.67

(Rs/bbl)

            3024.74           (3101.10)

3331.68

Exchange Rate

  (Rs/$)

             64.36                (64.45)

64.48

 

Source: PIB

Back to top

Global Textile Raw Material Price 2017-06-11

Item

Price

Unit

Fluctuation

Date

PSF

1099.35

USD/Ton

0.34%

6/11/2017

VSF

2176.64

USD/Ton

0%

6/11/2017

ASF

2323.71

USD/Ton

0%

6/11/2017

Polyester POY

1117.73

USD/Ton

0%

6/11/2017

Nylon FDY

2617.85

USD/Ton

0.56%

6/11/2017

40D Spandex

5220.99

USD/Ton

0%

6/11/2017

Polyester DTY

5823.97

USD/Ton

0%

6/11/2017

Nylon POY

1353.04

USD/Ton

0%

6/11/2017

Acrylic Top 3D

2470.78

USD/Ton

0%

6/11/2017

Polyester FDY

2500.19

USD/Ton

0%

6/11/2017

Nylon DTY

1353.04

USD/Ton

0%

6/11/2017

Viscose Long Filament

2809.04

USD/Ton

0%

6/11/2017

30S Spun Rayon Yarn

2823.74

USD/Ton

0%

6/11/2017

32S Polyester Yarn

1686.89

USD/Ton

0%

6/11/2017

45S T/C Yarn

2706.09

USD/Ton

0%

6/11/2017

40S Rayon Yarn

2985.52

USD/Ton

0%

6/11/2017

T/R Yarn 65/35 32S

2323.71

USD/Ton

0%

6/11/2017

45S Polyester Yarn

1838.38

USD/Ton

0%

6/11/2017

T/C Yarn 65/35 32S

2279.59

USD/Ton

0%

6/11/2017

10S Denim Fabric

1.37

USD/Meter

0%

6/11/2017

32S Twill Fabric

0.86

USD/Meter

0%

6/11/2017

40S Combed Poplin

1.19

USD/Meter

0%

6/11/2017

30S Rayon Fabric

0.66

USD/Meter

0%

6/11/2017

45S T/C Fabric

0.67

USD/Meter

0%

6/11/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14707 USD dtd. 11/06/2017) The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Bangladesh Export Fears as EU Slaps Security Checks

The EU’s security screening of Bangladesh exports could damage the country’s multibillion dollar textile industry, garment manufacturers alleged on Thursday. Tensions have been running high in recent months following a resurgence of extremist attacks in Bangladesh claimed by Al-Qaeda and Daesh, AFP reported. Last week the EU, which accounts for more than 60% of Dhaka’s $34 billion annual shipments, asked carriers transporting mail and cargo from the South Asian nation to provide an additional layer of screening to check for explosives. “The screening can be performed either at the point of origin (Bangladesh) or at transit prior to the entry into the EU. The implementation will be the responsibility of the carriers/airlines,” the EU delegation to Bangladesh said in a statement. The country annually ships nearly $19 billion worth of goods, mostly garments, to the EU’s 28 member nations. Its 4,500 textile factories are an economic mainstay, creating jobs for around four million workers. But it lacks explosive detection equipment, meaning goods for export may have to be scanned by a third country. “The cost is not only the price but the time as well. It is a slap in the face of our image,” Abdus Salam Murshedy, owner of Envoy Group, a leading garment exporter, told AFP. Exporters fear any slowdown might prompt retailers such as H&M to divert orders to other nations, he added. “We may have to send some products by air instead of regular sea cargo to meet shipment schedules,” said Shahidul Islam, owner of Rupa Knitwear, which sells products to Zara and Lidl. Last year Australia, Germany and the UK banned direct cargo shipments from Dhaka’s international airport over security fears. The country’s Civil Aviation Minister Rashed Khan Menon said the EU made the announcement “suddenly”, with authorities taking steps to prevent any fallout. “The installation of equipment (for explosive screening) may take another two months. Meanwhile, the delivery process may slow down a little bit,” he said. Bangladesh’s economy has been expanding at a fast clip, clocking growth rates of over 7% two years in a row. Meanwhile, foreign direct investment inflows to Bangladesh rose by 4.38% to $2.33 billion in 2016 from $2.2 billion in 2015, while the inflows to developing Asia shrank by 15% to $443 billion during the same year, according to a new report of the United Nations Conference on Trade and Development published on Thursday.

Source: Financial Tribune

Back to top

Pakistan : Textile association wants competitive environment

ISLAMABAD: The chairman of the All Pakistan Textile Mills Association (APTMA) on Sunday called for a more competitive business environment in the country to boost the country’s exports. “We want to compete with regional competitors such as India, Bangladesh, Sri Lanka and Vietnam, said the APTMA’s Secretary General Anisul Haq, adding enhancing the country’s exports would help achieve economic stability and growth. According to Mr Haq, Pakistan needed an export led growth for economic stability in the country. He said that the textile industry contributed almost 60 per cent in total exports of the country and was considered the backbone of the economy. Mr Haq added that he appreciated the Rs180 billion export enhancement package. He explained that the package would bring relief to the textile sector and help enhance the exports. The APTMA’s secretary general stressed on the need to implement the export enhancement package as it would strengthen the country’s economy. He said that the price of energy was an important element of production particularly for spinning, weaving and the processing industry. He added that the availability of energy at regionally competitive prices was important.

Source: Dawn

Back to top

Angola: Textile Industry Rehabilitation With Timid Signals

Luanda — At a time the expansion of the source of foreign values , the country?s textile industry stands out as one of the supporting pillars of the diversification of the economy. The Angolan Government has invested first in recovering the existing plants, and then taking care of the other part of the matter, which is securing of the raw material that will put them to work. It is an option that, right or wrong, only time will tell. The other paths could be putting in place conditions for the production of cotton in the country and only later rehabilitating the factories or, as a third option, handling the process simultaneously. But the government preferred the first option, under a massive 1.2 billion investment in the recovery and modernisation of Africa Têxtil (now Alassola, Benguela), Textang II (Luanda) and Satec (Dondo, Cuanza Norte). Although the three projects are not large enough to substantially change the economic growth forecast, the investment applied represents a remarkable step in the process of diversification of the national economy, taking into account the multiplying effect of these investments in the resurgence of auxiliary industries. In addition to allowing the country to meet its domestic needs, in terms of clothing and sewing, the recovery of these three plants will place Angola in the global clothing and apparel market, thereby inducing the development of the entire value chain of the sector , thus creating thousands of jobs. The process of rehabilitation and modernisation of the country's three main textile factories started in 2012, with the approval of the project by the Angolan Government, reaching its peak in December 2016, with the start-up of the Alassola Textile, in Benguela, versed in production of fabrics for home use. After Alassola, the next to come into operation, in June this year, is Satec, located in Dondo town, Cuanza Norte province, expecting to secure 1,600 new jobs, according to Alexandre da Silva Neto, director of the plant. In the value chain, each of the three plants will focus on one segment to avoid competition among them. Textang II will manufacture fabrics to supply mainly the military, hospitals and schools. Satec will process fabrics for the production of sweaters and jeans, while Alassola will produce sheets, towels and blankets. The full rehabilitation of the factories was boosted by a credit line from the Japanese International Cooperation Bank, brokered by the Angolan Government. The factories have state-of-the-art technology imported from Asian countries, especially South Korea, China and Japan, which currently hold the largest share of the textile market in the world. Of the amount released by Japan's International Cooperation Bank, Usd 410 million have been invested in Satec, Usd 235 million in Textang II and Usd 480 million in Alassola. In this first phase of the plants start-up , the raw material is the great constraint, because 100 percent of the cotton will still be imported. Only Satec will need, annually, 6,300 tons of cotton. For the time being it was imported from India and Greece in enough amounts to ensure the first year of operation. The expectation is that, in the short term, the country will start producing cotton to feed the industry. The diversification of the economy, through the textile sector, with the rehabilitation of the country's three main factories, has always been high on the Government's political agenda. For this reason, on 23 March this year, the 6th Ordinary Joint Meeting of the Economic and Real Economy Committees of the Cabinet Council reviewed the feasibility of the textile industry. In addition to the recovery of the country's three largest textile manufacturing plants, the Government sought to make upstream investments in the raw material production segment by boosting cotton planting. The forecast is to set up a new area of 74,000 hectares in Cuanza Sul province, once the "heart" of cotton production, partially financed by South Korea. With the large-scale cotton re-launch program, the Ministry of Agriculture intends to produce 100,000 tons of cotton per year, 40 per cent of which from small growers and the remainder from large scale plantations. For the 2016/2017 harvest, starting in July this year, 242 more tons of cotton are expected from the provinces of Malanje and Cuanza Sul, which is a residual amount and well below the needs of the three textile plants estimated at 24,000 tons/year. To cover the domestic supply deficit, the three manufacturing plants are resorting to the external market, at a time Angola is troubled by problems of currency, a factor that can increase the production of textiles and make them less competitive in relation to imported clothing.

As a result of this situation, the cotton production programme of the Ministry of Agriculture was born, under coordination of Carlos Canza. The official told Angop that the process involves a cooperative in Malanje, an association of peasants in Cuanza Sul and "Africa Sementes", a company that exploits vast lands in the latter province, to produce seed cotton. Given the market needs for the 2017/2018 crop year, the cotton growing programme is planning to extend the production area from 242 hectares to 1,500 hectares for a harvest of 1,500 tons in an average of one ton/hectare . "In the next agricultural season (2017/2018), estimated at about Akz 530 million, the Agriculture sector is planning to grow in the provinces of Malanje and Cuanza Sul 1,500 tons of cotton in an area of ??1,500 hectares," he announced. Carlos Canza added that for the realisation of this project, 30 tons of seeds have been purchased to be sown as from February 2018. For the gradual progression of the cotton recovery programme in the country, the sector is also planning to cultivate 10,000 hectares of land with the drip irrigation system at the Capanda Agro-industrial Growth Point (Malanje), to be implemented In the near future, by a Japanese company. This project aims to collect 50,000 tons of seed cotton for each agricultural period, in an estimated yield of five per hectare, which will help to respond to the demand of the industrial sector. As to the private sector, the agronomist highlighted the company "Africa Sementes", which has contributed, since 2010, an annual average of two thousand tons of cotton, which were previously exported when the textile industries in the country were inoperative.

Source: allAfrica.com

Back to top

Innovative Designs signs deal with New Thinking Fashion

Innovative Designs Inc has entered into a sales agreement with New Thinking Fashion USA Inc, a multilevel selling organisation in New York, where it has been in business for the past 14 years. New Thinking Fashion specialises in the sale of finished fabrics to a variety of apparel manufacturers, and will present Insultex to a number of their current clients. Innovative Designs manufactures the Insultex House Wrap, Arctic Armor Line, under the 'i.d.i.gear' label featuring Insultex. Insultex is one of the thinnest, lightest and warmest insulators in the market. "We are confident that we can promote the product to the top name brands in the ladies and men's and outwear trade in the US," said New Thinking Fashion president, Joseph Heaven. Innovative Designs CEO, Joseph Riccelli commented, "We welcome New Thinking Fashion USA to our team. They have the ability to open many doors in the apparel industry."

Source: Fibre2Fashion

Back to top

Vietnam to build fashion design, textile material trading centers

Vietnam's Ho Chi Minh City will build large centers for designing fashion, trading garment, textile material and accessories for the ambition to become the country's future garment, textile material and accessory hub.Ho Chi Minh City has set targets of meeting 80-90 percent of Vietnam's demand for garments and textiles by 2020, and supplying 100 percent of accessories for the country's garment industry, the municipal authorities said Sunday. However, Ho Chi Minh City will not establish large-scale garment and textile industrial parks, because the existing ones can accommodate all relevant enterprises, according to the municipal Department of Industry and Trade. According to approved plans, the city has 23 industrial parks and export processing zones, of which 17 are operational. Most of garment and textile firms are now located in the export processing zones of Tan Thuan and Linh Trung, and the industrial parks of Tan Thoi Hiep, Tan Binh, Tan Tao, Tay Bac Cu Chi and Dong Nam.

Source: Xinhua

Back to top

Cambodia : Garment Factory Suspensions Lifted; Strikers Return to Work

A weeklong garment factory strike over paid leave to vote in local elections came to an end on Saturday, with workers ceding pay for all but one day of the protest period after the government intervened to have 11 workers who were suspended during the dispute reinstated, officials said. The protest began ahead of the commune elections on June 4 after workers at the Southland factory in Phnom Penh’s Pur Senchey district were denied paid leave to return to their respective home communes to vote. On Wednesday, nearly 2,000 garment workers extended the strike after 11 workers—including 10 union activists—were suspended over the dispute, spurring at least 1,000 workers to sign a petition asking for the Labor Ministry’s help. Striking workers stand outside the gates of the Southland garment factory in Phnom Penh’s Choam Chao commune last week to heckle workers leaving for the day. (Hannah Hawkins/The Cambodia Daily) Discussions on Friday between ministry representatives, the 11 suspended workers and factory representatives resulted in the group being reinstated and the strike being called off as of Saturday morning, said Pav Sina, president of the Collective Union of Movement of Workers (CUMW). Negotiations for compensation were dismissed after the group was rehired, he added, but CUMW would “continue following and observing the general situation.” According to Seang Vichet, who was among the group of 11, workers’ pay and annual leave would be cut to compensate for all but the first day of absence from work, while other benefits would not be affected.  “It is a biased resolution that is not acceptable, but we want to be on good terms and we don’t want to continue” the strike, Mr. Vichet said. “The workers also accepted it because they want all of us to be reinstated.” The government-backed Cambodian Union Federation (CUF)—which has allegedly demanded union fees from non-members, according to the petition to the Labor Ministry—did not participate in the negotiations, Mr. Vichet added. Neither CUF president Chuon Mom Thol nor ministry spokesman Heng Sour could be reached for comment. Moeun Tola, executive director of labor rights organization Central, lauded the government’s intervention on behalf of the suspended workers, whom he said had been illegally suspended since the Labor Ministry had not approved the action against the union activists. But considering the losses to both the factory and workers caused by the dispute, the government should outline new election-leave requirements for factory workers ahead of next year’s national election, he added. “The elections are important to people. The government has the obligation to enable people to vote,” Mr. Tola said. “Why not find a win-win way so the workers can work and the companies can operate in a peaceful way?”

Source: The Cambodia Daily

Back to top

East Africa agrees on tax waiver for textile inputs

The six-nation East African Community (EAC) comprising Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda has agreed to a three-year tax waiver of duties and value added tax (VAT) on textile raw materials, fabrics and accessories that are not available locally. This step is expected to reduce the cost of production and also boost local manufacturing. The three-year tax waiver was suggested in a report on the textiles and footwear sector, commissioned by the EAC. As per the EAC directive, the EAC will now shift to a four-band tariff structure for cotton, textiles and apparels to promote cotton yarn and fabric production. While imported raw materials not available in the region would attract zero duty, intermediate inputs would be taxed at 10 per cent, fabrics at 25 per cent, and readymade garments at 40 per cent or $5 per kg. The EAC partner countries have also agreed to adopt a three-year strategy (2017-19) for gradual phase out of used clothing and shoe imports. This will be done through increased tax on these products, compliance with EAC Standards licensing of importers, and categorisation of products per bale of imports, African media reports said. The partner states have also decided to “establish Cotton Lint Banks modelled around Uganda cotton buffer stock model to ensure availability of cotton lint for spinning mills and downstream value addition.” All partner states producing cotton lint will set a target of at least 30 per cent local value addition to domestic cotton lint. This threshold would be increased to 50 per cent within five years, according to the recommendations on the modalities for promotion of textile and leather industries in EAC.

 Source: Fibre2fashion.

Back to top

China's May exports, imports surge, beating expectations

Exports in yuan-denominated terms hit 1.32 trillion yuan (about 194 billion U.S. dollars) last month, up 15.5 percent year on year, higher than market expectations and the 14.3 percent growth in April, according to the General Administration of Customs (GAC). Imports grew 22.1 percent in May, much faster than market forecasts and the 18.6 percent growth in April. This led to a monthly trade surplus of 281.6 billion yuan, in contrast with a 262.3 billion yuan surplus in April. However, the May surplus declined 3.4 percent year on year. Total foreign trade volume reached 2.35 trillion yuan last month, up 18.3 percent year on year. May's data continued the growth in China's foreign trade since the beginning of the year. In the first five months combined, exports increased 14.8 percent from a year ago to 5.88 trillion yuan, and imports jumped 26.5 percent to 4.88 trillion yuan, resulting in a 21.1 percent decline in the trade surplus. During the first five months, trade with the EU jumped 16.1 percent from the same period last year to hit 1.6 trillion yuan. The EU is China's biggest trade partner, accounting for 14.8 percent of the country's foreign trade. Meanwhile, trade with the United States, ASEAN and Japan went up by 21.1 percent, 23.2 percent and 17.5 percent, respectively. Machinery, electronics and clothing exports rose in the first five months, while labor-intensive products such as fertilizer, steel and automobiles saw shrinking orders. A leading indicator for China's exports increased from 40.7 to 41.1 month on month in May, signalling positive export potential.

Source: Shanghai Daily

Back to top