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MARKET WATCH 14 JUNE, 2017

NATIONAL

INTERNATIONAL

Textile traders not to seek GST registration

Surat: Despite Goods and Services Tax Council accepting the demand to bring down GST rates on textile job work from 18 per cent to 5 per cent, a section of traders in the country's biggest man-made fabric (MMF) wholesale market in Surat have appealed to their fellow traders to stop purchasing fresh stock of grey to oppose the central government's failure in providing relief under GST to them. Vyapari Sangarsh Samiti (VSS), which was formed on Saturday under the leadership of Tarachand Kasat, leader of the trading community, has appealed to the traders to abstain from purchasing grey fabrics and registering under GST. A meeting called by textile traders association was stormy with most traders wanting to launch an agitation. It was unanimously decided in the meeting that the traders will adorn black ribbon on June 14 and keep the textile markets shut on June 15. The MMF sector in the city manufactures around four crore metres of grey fabric per day on more than 6.5 lakh powerloom machines. A delegation of Federation of Surat Textile Traders Association (FOSTTA) had gone to Gandhinagar on Friday to represent the higher GST rates to deputy chief minister Nitin Patel and member of GST Council from Gujarat, DP Vaghela. The FOSTTA office-bearers demanded that there should be uniform GST in the entire textile value chain, otherwise it will dent the margins of the traders and weavers leading to job losses in the industry. However, most of the textile traders in the market are unhappy with the leadership of FOSTTA. During the meeting on Saturday, the traders shouted slogans against FOSTTA and demanded a separate committee to fight out the GST issue. Vyapari Sangarsh Samiti president Tarachand Kasat told TOI, "We are demanding uniform GST structure in the entire textile value chain. The traders will have to pay 5 per cent GST, but they won't be able to get input tax credit. On the other hand, the cloth manufactured by composite units will be much cheaper. This will lead to joblessness in the sector. We have appealed the traders to clear their old stock and payments. After the bandh on June 15, we will meet the officials concerned in the government. If the GST Council fails to accept our demand for uniform GST in textile sector, we will launch an indefinite agitation from July 1."

Source: The Times of India

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Traders oppose 5% GST on textiles, threaten strike

Surat: Some textile traders, who are opposed to the implementation of Goods and Services Tax (GST) because it will usher in purported transparency, will be going to New Delhi on Tuesday to convince the central government to not levy even 5 per cent GST on textiles. They owe allegiance to South Gujarat Textile Traders Association (SGTTA), one of whose sections has given a call for strike on June 15 against the implementation of GST from July 1 in the country. There are about 80,000 textile traders in 120 textile markets in the city which have a daily turnover of Rs 100 crore."Some traders belonging to our association believe that once GST is implemented, inspector raj would return. It will be difficult for people to maintain books of accounts," SGTTA president Sanvarlal Budhiya said. He has an annual turnover of Rs 3 crore. A trader, who has annual turnover of about Rs 8 crore, said, "We are not liable to pay GST. We pay income tax and that should be enough."A processor said, "This is political. These people are more inclined towards Congress.

Source: Times of India

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Domestic units face closure as govt cuts import duty on blankets

Prime Minister Narendra Modi’s ‘Make in India’ slogan seems to have evaporated into thin air for over four crore workers engaged in the country’s textile and mink blanket manufacturing units, as these industries are staring at a bleak future due to the Central government’s decision to cut the levy of import duty and GST from 29% to 16% on all imported blankets and fabrics. The GST Council’s decision to decrease the customs duty and other taxes under the GST regime is set to result in shutting down of over 50 largescale mink blanket manufacturing units in the country, as these units won’t be able to compete with cheap imported mink blankets after the GST rollout. These units produce nearly 1.5 lakh mink blankets every day, out of which 15% are exported to North America, Europe, Russia and Australia. “How can we compete with mink blankets imported from China as these would be cheaper by at least 13% due to decreased duties on imported blankets from July 1. We will be left with only two options. Either, we will be forced to shut down our units or we will have to import blankets from China and stop domestic production. This will lead to unemployment of thousands of workers currently engaged in the mink blanket manufacturing industry,” said Abhishek Vij, Director of Jalandhar-based Shital Fibres Ltd., a mink blanket manufacturing unit that contributes around 70% in India’s mink blanket exports. The company produces nearly 45,000 blankets daily. “Cutting down of import duty, cess and GST on imported blankets from 29% to 16% will be disastrous for domestic textile and blanket manufacturing units. We will raise the issue with Union Finance Minister Arun Jaitley soon and request him to review the decision,” said Ramesh Jagota, president, All India Mink Blanket Manufacturers’ Association. He said the textile industry employs nearly six crore workers. “Under the GST regime, not only mink blanket industry will suffer huge losses but the textile, yarn and fibre industries, too, will also incur losses,” he added.

Source: The Tribune

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Lower GST on job work of textile yarn to help SMEs: CITI

New Delhi: Reduction in the goods and services tax (GST) rates on job work of textile yarn and fabric manufacturing to 5% from 18% will give a leg-up to small and medium-sized enterprises (SMEs) in power loom, knitting and processing sectors, the Confederation of Indian Textile Industry (CITI) on Tuesday said. According to CITI chairman J. Thulasidharan, reduction of service tax on job work would bring relief to the textile industry from the extra burden, as bulk of the work is with SMEs and carried out through job works. A job work involves a manufacturer sending goods out of the factory for specialised processing job without having to pay taxes. The move “would now help SMEs of power loom, knitting and processing sectors not to face much financial burden”, he said in a statement. Job work in the textile sector is taken as services and was subject to 18% goods and services tax (GST), Thulasidharan said. Under such situation, the manufacturer who does not have integrated composite units to complete the process of embroidery, printing and finishing as per the market requirements would have been in a great loss, he added. The CITI chairman also welcomed the decision of the GST Council for increasing turnover limit from Rs50 lakh to Rs75 lakh under the composition scheme for traders and manufacturers. This is seen as helping micro, small and medium enterprises (MSMEs) grow their business and carry out their activities efficiently. However, the chairman suggested reduction in GST on speciality textile fabrics, man-made fibres and yarns.

Source: Livemint

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Garment units in a fix over confusion in GST rates on job work

The GST Council on June 11 said tax on services by way of job work in relation to textile yarn and fabrics had been brought down to 5%, but the sector suspects it could fall in 18 per cent bracket. Claiming that the the confusion over tax rates on job work on garments has not been addressed, the textile industry. At the June 11 meeting, thehas knocked the doors of the Ministry, seeking a clarification on the issue. GST Council had said that services by way of job work on textile yarns (other than man-made and filament) and textile fabrics would be brought down to five per cent from 18 per cent.  But the textile sector thinks that processes such as stitching, printing, embroidery might still attract 18 per cent, not five per cent. Their reason for their worry these processes come into play after the fabric is converted to a garment. A senior industry representative from Tirupur says this confusion has arisen because the notification calling for a reduction in the GST rate from 18 per cent to five per cent stops at the fabric level and is silent on the rate applicable on job work carried out on garments. Tirupur Exporters Association has made a representation urging the government to clarify the actual rate applicable to such job work. Confederation of Indian Textile Industry's (CITI's) Chairman, J Thulasidharan said that the industry is apprehensive about the made-up and garment sector, as the job work on these still comes under the 18 per cent tax slab. "This will have a serious implication on the cost of the final goods of made-up and garments, rendering them uncompetitive in the domestic and international markets," he said, adding that these products ought to be brought under the five per cent GST slab. Specialty textile fabrics like impregnated, coated, covered or laminated remain under the 12 per cent GST slab which is unsustainable and will have huge bearing on the final cost, Thulasidharan said. The Confederation's unfulfilled demand of reducing GST on man-made fibre and yarns to 12 per cent or refund of inverted tax at the fabric stage will be a win-win situation both for industry and Government once implemented, Thulasidharan said. It would enable textile manufacturers to absorb the cost and the government not lose out on revenue either. As an alternative, the industry suggested that if the government is unable to revise the MMF rates, then it must allow refund of unutilised credit accumulated at the stage of fabric manufacturing to the extent of five per cent. This has been provided for under the GST Act, where GST Council has been empowered to recommend the refund of unutilised credit under inverted duty structures.

Source: Business Standard

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GST to have negative impact on oil and gas industry: Report

New Delhi: The Goods and Services Tax (GST) will adversely affect the oil and gas industry as the sector will have to comply with both the current tax regime and the GST framework, according to a report. The government is expected to roll out the GST, which will subsume 16 different taxes, from July 1, 2017. Next meeting of the GST Council is scheduled to be held on June 18, when it will take up lottery taxes and e-way bill. "The oil and gas industry would have to comply with both the current tax regime as well as the GST regime leading to double compliance cost because five petroleum products viz crude oil, natural gas, motor spirit, high-speed diesel and aviation turbine fuel have been excluded from the GST, while other products such as LPG, naphtha, kerosene, fuel oil etc are included," the Icra-Assocham said in a joint report. Besides, it will result in non-creditable tax costs where an oil and gas company will pay the GST on procurement of plant, machinery and services, and will be unable to get credit on sale of the finished products (which are out of the purview of GST) as the input GST would not be credible against the excise duty and value added tax levied on these fuels, the report said. Additionally, as services contribute a significant proportion to the upstream companies capex and opex, the increase in tax rate from 15 per cent to 18 per cent would impact the upstream companies adversely, it said. In the gas utilities segment, the report warned that gas marketers will face complexities as they will pay the GST on transmission tariffs, while sale of natural gas is outside the purview of GST. Further, the PNG in industrial and commercial sectors is likely to become less attractive as fuel, because effective tax rate on competing liquid fuels has reduced from 26-28 per cent to 18 per cent and consumers paying VAT on PNG will not be able to get input tax credit as most of their finished goods would fall under the GST regime. Thus, PNG sales could get adversely impacted, it added.

Source: Business Line

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GST blues: MSMEs in TN halt production

Micro units that are into manufacture of products are in a fix. Industry insiders say that a number of units have halted production at least a fortnight ahead of the GST rollout, fearing loss of input tax credit on the inventory held by the them. Suresh Krishnan R, Proprietor, Gramma Weighing Technology, said that they have relinquished the stock on hand and halted production for the time-being. The company, which is into making of electronic weighing machines for the industry and retailers, sells 60 to 70 machines a month. “We have done close to 100 this month and stopped production. Orders continue to flow, but we are not executing them for the present,” Krishnan told this correspondent. He voiced concern on the 28 per cent rate-fitment under GST for weighing machines. Some have voiced anxiety over payment of wages to the workers. “Just because we do not want to hold inventory and have halted production for the present, we cannot deny the workers their wages,” said another, preferring anonymity.

Discount offers

While the manufacturing sector is indulging in a go-slow tactics to control the closing stock volumes, the traders, particularly those dealing in white goods, are making discount offers. Notwithstanding the stand taken by the trading community/ dealers and manufacturers of products, those in the services space also seem to be putting off any commitment for now. Those in the know of development within industry circles say this would impact rotation of funds and business.

Source: Business Line

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PowerTex India Scheme for ‘Knitting’ in offing: TxC

Government is looking at proactive measures in the textile sector. It has recently launched PowerTex India a comprehensive scheme for powerloom sector development and was now working towards launching a PowerTex India Scheme for ‘Knitting Sector’ informed Dr. Kavita Gupta Textile Commissioner here. Addressing the ‘India & South Asia Textile Summit’ organised jointly by The Textile Association of India (TAI) and ECV International - China Dr. Gupta informed the delegates that India has an efficient textile supply chain and the roll out of GST would help the industry grow. GST will make the entire value chain more integrated comprehensive and consolidated. It will help the industry reap the benefit of the entire integration into GST pattern she added. India Dr. Gupta said was well poised to enter into new frontiers of the textile industry in the global market and was ready in terms of its own potential and competence. Stating that China was vacating space in the textile sector because it was shifting to highly technology based industries Textile Commissioner pointed out that India has an opportunity to enter more fruitfully in the global textile and clothing market. She advocated having alliance with other countries particularly with China to produce textile machinery in India. India is a big importer of textile machines from China. It is time to develop joint ventures to manufacture these machines in India to make it price competitive Dr. Gupta said. Textile Commissioner said that it was high-time to learn from each other experiences to see what is it that we can further develop ourselves to become more productive efficient and competitive and come closer in the prevailing textile scenario. Mr. Arvind Sinha President TAI felicitating Dr. Kavita; Textile Commissioner at the Textile Summit Earlier Mr. Arvind Sinha President;Gautam Dalmia  informed that world was facing many issues since last one year. Global macro economic conditions are volatile geo-political tensions and polarisation safety and security issues with impact on travelling and buying shifts in consumer behaviour very competitive market high pressures of margins politicians and public opinions in major countries not in favour of globalisation transpacific partnership deals TPP in the freeze possibilities of renegotiation of NAFTA and Brexit among others are the few happenings which will destroy the globalisation process. He further informed that total exports and imports of textiles and apparels were expanding with increasing population. There is shift from China to Vietnam Cambodia Bangladesh. Investments are taking place in Africa coming from India China Turkey and other nations. USA is also becoming an attractive destination for textile investments with many US States declaring 99 years of Tax Treaties. In the above scenario Asian textile trade has to introspect seriously. Hence TAI and ECV has organised the summit in order generate information and knowledge and also explore opportunities between Asian nations and go for consolidation.

Source : Tecoya Trend

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Economic data deceive to dispirit

The data are dispiriting. The good news is that they are deceptively dispiriting. Consumer prices for May show inflation at the lowest level since 2001, at 2.18%. A good harvest, in combination with the lingering effects of the disruption of rural financial linkages by demonetisation, has pushed food price changes into negative territory. This, naturally, has caused distress on the farm. Capital goods production has shrunk in April, as compared to the year-ago level. Basic and intermediate production, too, dragged. All manufacturing output has grown by only 3.1% in April, marginally faster than the 2.7% growth of March. If prices and industrial data alone mattered, we are staring at a picture of stagnation. Fortunately, there are other indicators that tell a positive story. Agricultural output is bound to register a healthy growth, when the numbers are totted up. The fall in prices reflect, in part, bumper harvests in many commodities. That apart, freight movement and fuel consumption are definitely on the rise, signalling increased economic activity. The Railways’ earnings from moving passengers and goods are up more than 9% in May, as compared to May 2016. The total cargo handled at major ports was up 5.56% in May, in volume terms. Growth in container movement was even greater. Fuel consumption in the economy went up by 5.4% in May. Demand for diesel, the bulk fuel, went up 8%, while the demand for petrol rose 15.9%. These volume growth figures have finally recovered from a demonetisation-induced slump in demand. True, the economy is not powering ahead as it should, to generate the jobs India’s demography calls for. Nor is it faltering. What can transform this middling growth is a big push to investment, particularly, private investment. That is hobbled by the twin-balance sheet problem: bad loans on the banks’ books and unserviceable loans weighing down India Inc. It is welcome that the government and the RBI are taking steps to tackle this. Resolution of bad loans and freeing up banks to resume lending hold the key to vigorous growth of the economy.

Source: Economic Times

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Global Crude oil price of Indian Basket was US$ 47.23 per bbl on 13.06.2017

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 maintained at the same level at US$ 47.23 per barrel (bbl) on 13.06.2017, as on 12.06.2017. In rupee terms, the price of Indian Basket increased to Rs. 3043.64 per bbl on 13.06.2017 as compared to Rs. 3038.56 per bbl on 12.06.2017. Rupee closed weaker at Rs. 64.45 per US$ on 13.06.2017 as compared to Rs. 64.34 per US$ on 12.06.2017. The table below gives details in this regard:

 

Particulars    

Unit

Price on June 13, 2017 Previous trading day i.e. 12.06.2017)                              

Pricing Fortnight for 01.06.2017

(May 12, 2017 to May 29, 2017)

Crude Oil (Indian Basket)

($/bbl)

             47.23                  

51.67

(Rs/bbl)

            3043.64           (3038.56)

3331.68

Exchange Rate

  (Rs/$)

             64.45                (64.34)

64.48

Source: PIB

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India ratifies two key ILO conventions on child labour

India on Tuesday ratified two key ILO conventions on child labour, according to a statement issued by the International Labour Organisation (ILO) in Geneva. Labour Minister Bandaru Dattatreya, who is Geneva, said the ratification reaffirmed India’s “commitment to a child labour free society”. According to ILO, “the Government of India deposited with the International Labour Office the instruments of ratification of the two fundamental ILO Conventions concerning the elimination of child labour, the Minimum Age Convention (No 138) and the Worst Forms of Child Labour Convention (No 182).” India is the 170th ILO member state to ratify convention No 138, which requires states to set a minimum age under which no one shall be admitted to employment or work in any occupation, except for light work and artistic performances. In addition, India is the 181st member to ratify convention No. 182, which calls for the prohibition and elimination of the worst forms of child labour, including slavery, forced labour and trafficking; the use of children in armed conflict; the use of a child for prostitution, pornography and in illicit activities (such as drug trafficking); and hazardous work. Welcoming India’s move, ILO Director-General Guy Ryder said: “Today, India’s ratifications of Conventions 138 and 182 solidifies further — in treaty obligations — that commitment to the global fight against the scourge of child labour in all its forms. “They also represent a positive step on the country’s path towards full respect for fundamental rights at work.”

Source: Business Line

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Why India should set store by its FTA with EU

The gains accruing to India in business services and textiles outweigh possible losses in automotives and machinery sectors. During the latest intergovernmental talks between India and Germany, the media was abuzz with talk of resuming negotiations on the EU-India Free Trade Agreement, dormant since 2013. Though the EU-India strategic partnership has been in existence since 2004, with a focus on security, trade and cultural exchange, it looks more promising on paper than it really is when compared to the breadth and depth of relationship shared with the US and the UK. There are some exceptions such as defence cooperation, where the Indo-French relationship is decades-old. In addition, Germany has grown to become India’s most important trading partner in EU.

New equations

Recent developments such as Brexit and an isolationist Trump have prodded EU to diversify its economic relationships. The discourse on free trade in Europe, politically difficult a year ago with widespread street protests against the proposed Transatlantic Trade and Investment Partnership (TTIP), has taken an about-turn as seen in the success of Macron’s election campaign based on more globalisation and openness. How this would translate into a push for an FTA with India remains to be seen. India has been active in its free trade discussions, concluding deals with many South Asian countries. Regional Comprehensive Economic Partnership talks are gaining momentum. Indian exports, though, have not benefited immediately following its agreements with ASEAN as well as those with Malaysia or Thailand. Some sectors, such as plantation, have been affected.

Win-win situation

The Bertelsmann Stiftung, a German not-for-profit foundation, recently launched a study on potential effects of the EU-India FTA based on economic modelling by the IFO Institute for Economic Research in Munich. The results point to benefits for both partners with EU gaining by $ 22.5 billion (0.14 per cent increase) and India by $28.4 billion (1.3 per cent increase). Due to the difference in size of populations and economies, the per capita increase for India would be $22 as against $44 for the EU. Within the EU, Ireland and Belgium would gain the most in relative terms and Germany the most in absolute terms with its GDP gaining by almost $5 billion (not considering the UK).  As for sectors which would gain or lose from this FTA, India would gain the most in business services ($6.4 billion) and textiles/apparels ($6.6 billion). Automotive and mineral sectors would lose $1.6 billion and $1.1 billion respectively. Increased competition in the machinery and equipment sector would cause losses of almost $500 million. The automotive and textile sectors contribute significantly to GDP as well as export. The textile industry employs relatively low skills as compared to automotives. With increasing automation, and smart machines and low-cost competition from other South and South-East Asian countries, the textile industry can face strong headwinds.

A loss of $1.6 billion is not an existential threat to the $74-billion Indian automobile industry and the chances of being more tightly integrated with the global value chain would make up for the losses. However, a government aiming to strengthen local manufacturing should strengthen the automotive sector through skill development and innovation, especially in emerging electromobility to fully utilise the potential of such an FTA. The benefits for India from a trade agreement with the EU cannot be measured just by the growth of one sector or another. Access to a large market would pay off in the future, especially when Indian firms improve their productivity, and can compete with European players. A step-by-step easing of tariff and non-tariff barrier would allow a gradual growth in productivity and the resilience to compete with global markets.

India should take a leap of faith with a region with which it shares economic and political values — more so in a world faced with a US administration in favour of protectionism and a China with hegemonic ambitions.

Source: Business Line

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Please note! Imported garments to become 5-6% cheaper with GST

Imports are likely to remain 5-6 per cent cheaper than locally made apparel, despite the goods and services tax providing input credits to the textile industry. Apparel imports are subject to a countervailing duty (CVD) of 6 per cent on cotton and 12.5 per cent on polyester, which importers receive as a central value-added tax credit. The CVD is optional at a flat 2 per cent if the importer does not claim a set-off against input costs. The government has provided a 40 per cent abatement on this optional flat duty, which works out to 0.8 per cent. Thus, the total applicable tax is 1.2 per cent for importers who do not claim the set-off. This apart, importers pay a 4 per cent special additional duty (SAD) without any duty protection, which after considering cesses, works out to over 5 per cent. “The government had levied this duty as protection for domestic players. With the GST, this duty protection will be removed and imported garments will be 5-6 per cent cheaper. The government has fixed 5 per cent as the GST rate on all textile products and apparel,” said Rahul Mehta, president, Clothing Manufacturers Association of India. The textile industry fears an increase in imports from Bangladesh and China, where the cost of manufacturing is lower due to cheaper labour. “The GST subsumes all taxes, including protections. Garment imports will become cheaper due to removal of the SAD,” said an official from the Cotton Textiles Export Promotion Council. The textiles ministry has set an export target of $45 billion for FY18, marginally lower than the $48 billion set for FY17. The government plans to present a new textiles policy by September. It is also organising Textiles India 2017, a seminar to bring global buyers under one roof, between June 30 and July 2 in Gandhinagar. While 61 countries have booked pavilions, 1,900 stalls are expected to be booked by state governments and industry players. “Our aim is to increase textiles exports and create a competitive environment. We would like states to take such initiatives to help the industry showcase its products directly,” said Anant Kumar Singh, secretary in the textiles ministry. Singh said his ministry had done some work on the new textiles policy, which would focus on India’s competitiveness in the world market.

Effective levies on imported garments

Before GST

* Countervailing duty include excise

* Optional duty of 2% with abatement of 40% on it (i.e. 0.80%) means effective duty of 1.2% without Cenvat credit duty on cotton 6% and polyester 12.5% with Cenvat credit

* 4% of special additional duty, which along with cess, educational cess

* Thus, duty protection of 5.5% from cheap import and others wok out to Rs 5.5%.

After GST

* All duties subsumed in 5% of the GST

* No protection, as both domestic manufacturers and importers would require to pay same duty for both domestic manufacturers and importers

Source: Business Standard

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Let competition set fair prices under GST

Chief Economic Advisor Arvind Subramanian’s reported suggestion to have a ‘sunset clause’ in the anti-profiteering rule under the Goods and Services Tax is welcome. The rule creates an oversight authority to ensure that producers and service providers pass on reduced tax burdens to consumers. This holds potential for abuse and would lead to disputes. Ideally, the rule must be scrapped. The second best option is to set a deadline – nine months to a year – for its withdrawal. The idea of enforcing the rule initially is to help consumers get the benefit of lower prices during the transition to the new tax system. Retail prices will come down as GST subsumes indirect taxes and cuts out the cascade of multiple taxes that products bear, lowering production costs. The government must amend the Central GST law to incorporate a sunset clause to ensure that the rule is scrapped within a year. It should rely on competition and the market mechanism to set fair prices. Allowing easy entry and exit rules will foster competition. There is no rationale for yet another authority to deter price gouging. India has an institutional structure, the Competition Commission of India, to tackle market abuse arising from lack of competition. Let the CCI probe if there is collusion or abuse of market dominance in any industry. It is wholly redundant to propose, say, a body under the Central Board for Excise and Customs to investigate cases of flawed competition and failure to pass on reduced tax burdens. It could be source of harassment, as industry apprehends, drawing on past bitter memories. The tax burden can itself be lowered if the tax base for GST is widened. This is eminently feasible when large chunks of the economy are included in the tax base and exemptions are kept to the minimum.

Source: Economic Times

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Global Textile Raw Material Price 2017-06-13

Item

Price

Unit

Fluctuation

Date

PSF

1100.17

USD/Ton

0%

6/13/2017

VSF

2178.26

USD/Ton

0%

6/13/2017

ASF

2251.85

USD/Ton

-3.16%

6/13/2017

Polyester POY

1130.34

USD/Ton

1.05%

6/13/2017

Nylon FDY

2663.96

USD/Ton

0.56%

6/13/2017

40D Spandex

5224.89

USD/Ton

0%

6/13/2017

Polyester DTY

1376.13

USD/Ton

1.08%

6/13/2017

Nylon POY

2840.57

USD/Ton

1.05%

6/13/2017

Acrylic Top 3D

5828.33

USD/Ton

0%

6/13/2017

Polyester FDY

1376.13

USD/Ton

1.63%

6/13/2017

Nylon DTY

2502.06

USD/Ton

0%

6/13/2017

Viscose Long Filament

2413.75

USD/Ton

-3.53%

6/13/2017

30S Spun Rayon Yarn

2825.86

USD/Ton

0%

6/13/2017

32S Polyester Yarn

1682.27

USD/Ton

-0.35%

6/13/2017

45S T/C Yarn

2708.11

USD/Ton

0%

6/13/2017

40S Rayon Yarn

1839.75

USD/Ton

0%

6/13/2017

T/R Yarn 65/35 32S

2281.29

USD/Ton

0%

6/13/2017

45S Polyester Yarn

2987.75

USD/Ton

0%

6/13/2017

T/C Yarn 65/35 32S

2310.73

USD/Ton

0%

6/13/2017

10S Denim Fabric

1.37

USD/Meter

0%

6/13/2017

32S Twill Fabric

0.86

USD/Meter

0%

6/13/2017

40S Combed Poplin

1.19

USD/Meter

0%

6/13/2017

30S Rayon Fabric

0.66

USD/Meter

0%

6/13/2017

45S T/C Fabric

0.67

USD/Meter

0%

6/13/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14718 USD dtd. 13/06/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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RMG exports support Bangladesh credit profile: Moody's

Bangladesh's (Ba3 stable) sovereign credit profile is supported by the robust growth of an economy that is bolstered by garment manufacturing industry exports, says a recent report. However, weakening inflows of remittances from overseas-based workers could hurt consumption. The RMG industry makes up about 70 per cent of Bangladesh's total exports. The ready-made garment industry of Bangladesh also accounts for significant foreign investment inflows. While the agricultural sector is still the biggest employer in Bangladesh, the garment industry employs over three million workers and offers continued opportunity for labour productivity gains that will support future economic development and growth, according to the 'Government of Bangladesh - Garment Industry Sustains High GDP Growth But Lower Remittances Pose Downside Risks to Consumption' report by Moody's Investors Service. "Bangladesh will continue to invest in its garment manufacturing sector to capitalise on its strong comparative advantage of abundant low-cost labour," said William Foster, vice president and senior credit officer at Moody's. "It will remain a leading global supplier of basic garments and the industry will continue to drive the nation's growth, exports and job creation." The country's focus on low-value garment exports helps to insulate it from the impact of higher trade tariffs that could result from greater protectionism globally. Nonetheless, while Bangladesh's garment industry benefits from some of the lowest wage levels in the world, the country's overall economic competitiveness lags that of its peers such as Vietnam (B1 positive), Cambodia (B2 stable) and Sri Lanka (B1 negative). When factoring in the quality of its physical infrastructure, skill levels and transparency of the business environment, the country's low competitiveness hampers the ability of its economy to absorb shocks, notes the report.

Source: Fibre2Fashion

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Bangladesh, Vietnam surpass India in knitwear export

Bangladesh and Vietnam has leaped ahead of India in knitwear export over the past decade, said The Hindu citing sources. Export share of Bangladesh in cotton underwear in US market had grown from 5.5 per cent in 2005 and presently grown to 16.4 per cent. In the same period, cotton-made underwear garment exports from Vietnam grew exponentially from a minuscule 0.3 per cent to 20.9 per cent. But, the market share of cotton-made underwear garments from India to the United States was 3.9 per cent in 2005 and presently grown to 9.9 per cent.

Source: Financial Express Bangladesh

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Bangladesh : Cotton import on the rise

Bangladesh's cotton import will creep up to 7.1 million bales in 2017-18, further consolidating its position as the world's largest importer of the fibre, according to the United States Department of Agriculture. In 2016-17, 7 million bales are expected to be imported. One bale equals 480 pounds or 218 kg, and the cotton year begins on August 1 and ends on July 31. Local growers can only supply less than 3 percent of yearly demand, leading to the imports worth over $3 billion. Bangladesh has overtaken China after the latter stopped sourcing for having ample stocks of its own. The demand for the natural fibre is on the rise in Bangladesh as it is the only country that is still mainly dependent on raw cotton for making yarns and fabrics. The other countries have shifted to other manmade fibres like filament, polyesters and viscose, as a result of which the global consumption of cotton is on the decline in recent years. Currently, the ratio of cotton and manmade fibre use is 28:72 worldwide, with a pronounced tilt towards artificial fibres, due to its lower price, improved functionality and ease of use, according to International Textile Manufacturers Federation. However, the ratio is not applicable in Bangladesh yet as more than 90 percent of the yarns and fabrics are made from natural cotton in the country. “We are upbeat about the future trend as cotton consumption is rising from the spinners' end,” said Mehdi Ali, general secretary of the Bangladesh Cotton Association, adding that the demand for both yarn and fabrics is increasing every year. The over 430 local spinning mills can supply nearly 90 percent of the yarn for the knitwear sector and 40 percent of the fabrics needed by the woven sector for higher consumption of cotton. “Many may think that the recent slowdown in garment export will have a negative impact on cotton consumption but that is not true.” Garment shipments have been declining in value but the volumes are increasing, he said. Since the volume is increasing, so is cotton consumption. By the end of 2020, cotton consumption in Bangladesh will hit 7.9 million bales, Ali said. Currently, Bangladesh imports 55 percent of its demand for cotton from India, thanks to favourable prices, geographical proximity, shorter lead time and the quality of the fibre. “We are also looking for alternative destinations as it is not right to depend too much on one country,” Ali said, citing Africa, Australia and the US as the other options that are being looked at. This month's USDA report mentioned of higher forecasts for both global production and mill use in the upcoming 2017-18 crop year. There would be additional harvest of 1.5 million bales from previously forecasted 113.2 to 114.7 million, according to Cotton Incorporated. The rise in the global production figure was primarily a result of heightened expectations of Pakistan, China and Mexico. Last week, cotton traded between 72 cents per pound and 73.2 cents per pound in the future market.

Source:  The Daily Star

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EU seeks greener public textile procurement

BRUSSELS – The European Union has announced a raft of new developments with its voluntary Green Public Procurement (GPP) criteria for textiles products and services. With criteria largely based on the EU Ecolabel criteria for textiles, this is an area with a high public spend, particularly in the uniforms of military, police and hospital staff. With the EU Ecolabel closing in on its 25th birthday, recent changes to EU Ecolabel criteria for textiles have focused on sustainable cottons, recycled synthetics, the recovery of wool waste and man-made cellulosics. The updated criteria aims to reduce the environmental impacts of textiles destined for use in European public sectors. As part of this, public authorities are being encouraged to purchase textiles that contain recycled materials or which are made from fibres that are produced using less fertilisers and hazardous chemicals. Longer lasting fabrics, textiles that use less energy when being washed and services that maximise the recycling potential of textiles are also being encouraged.

Source: Ecotextile News

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BizVibe: China Continues to Set the Standard for the Global Technical Textile Industry

LONDON--(BUSINESS WIRE)--The global technical textile industry is one of the fastest-growing segments in the global textile and apparel industry, with technical textile products experiencing increased demand worldwide. As this market continues to grow, China is expected to remain its leader and meet most of the demand from countries in the US and Europe. Details on this growing industry and its latest innovations are some of this week’s top stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to discover high quality leads, contact prospects, and source quotes. Register today to connect with over seven million companies around the globe. Technical Textile Industry Booming Globally. The global technical textile industry was estimated to be worth USD 142 billion in 2015 and is expected to reach USD 165 billion by 2019. The market is segmented based on application and end-user industry, and is mainly comprised of construction textiles, clothing textiles, geo-textiles, domestic textiles, industrial textiles, medical textiles, sports textiles, and protective textiles. The vast majority of technical textiles come from APAC, which accounts for a share of almost half of the global technical textiles market. China is the largest producer of both woven and non-woven technical textiles in this region, and is currently responsible for 30% of global production. China Dominates the Global Technical Textile Industry China’s technical textiles future is bright – with a large workforce, strong domestic market, and the advancements that it has experienced in textile technology makes the country a very strong competitor in the global technical textile industry. Despite setbacks in terms of reduced textile exports, these qualities have allowed China to continue to thrive in this area. China’s leading position is followed by the Americas with 19% of global production, India with 18%, the EU with 16%, and the rest of the world with 17%. However, most of these regions lack the same benefits China has. For example, Chinese textile factories typically have more employees and equipment than Indian ones; on average, the size of Chinese textile companies is five times larger than companies in India. Medical Textiles are Leading China’s Technical Textile Industry. The top 3 types of technical textiles are leading the industry for China. Medical textiles are currently experiencing the most demand in China’s technical textile industry, and accounts for a large portion of the country’s technical textile exports to countries in Europe and the Americas. This is largely due to the growing need for more effective sterilization, sanitation, and protection against bacteria in healthcare settings in these regions, as well as the increasing use of medical technical textiles in biophysical monitoring systems, patient tracking devices, and other innovative applications in the healthcare industry. In addition to technical textiles companies in China, BizVibe is home to a total of over 140,000 textiles related companies. The BizVibe platform allows you to discover the highest quality leads and make meaningful connections with your companies of interest in real time. Claim your company profile for free and let BizVibe connect you with potential business partners.

About BizVibe

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

Source: Business Standard

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Renminbi’s growing global influence

During 2016, the internationalisation of the Chinese renminbi (RMB) appeared to stall in the wake of symptoms of capital flight, volatility in share markets and the overall and continuing slowdown in the Chinese economy. For example, in 2015, over 30 per cent of China’s foreign trade was settled in its own currency. In 2016 it had fallen to 20 per cent. The RMB had become the sixth-most used currency globally in 2015 but is presently the eighth. There has also been a decrease in RMB deposits in Hong Kong, a good indicator of the currency’s international profile. These are currently estimated at 3.3 trillion yuan against a peak of 4.6 trillion in 2015. Though formal regulations were not changed, Chinese authorities moved in to impose informal restrictions on capital outflows, with greater scrutiny of overseas acquisitions by its large corporations. The equity markets were more tightly regulated but some measures such as putting in circuit breakers to check volatility achieved the opposite and had to be abandoned. All these developments throughout 2016 led analysts to conclude that while the Chinese authorities would loosen capital controls they would not eliminate them and this would mean that the RMB’s emergence as a truly international, freely traded reserve currency was unlikely. There was also the assessment that the objective of political stability and regime survival would always trump that of a truly open and globalised market economy. As one analyst observed, “The RMB will continue to rise in global finance but don't expect it to rule.” There is no doubt that there has been stalling in the RMB’s internationalisation and even some reversals, but a deeper analysis reveals a steady, step-by-step, pursuit of making China a global financial power with its currency taking its place as a premier financial instrument rivalling the US dollar. Here are some developments that one should take note of. The RMB can now be traded in 15 offshore centres, including key markets across the world. London is emerging as the most important offshore centre for both RMB currency trading and for RMB-denominated bond issuance. China has now allowed foreign entry into its huge inter-bank bond market without prior approval and this will help create a large and relatively liquid bond market which is a prerequisite for internationalisation. The share of external holdings of the Chinese government’s bonds now stands at 3.9 per cent of the global total and is expected to increase steadily in the coming years. Another important development is the launch of panda bonds, allowing foreign entities to raise funds through the RMB bonds issued in the Chinese domestic market. China has increased the number and volume of swap arrangements with central banks across the world. There are now 35 such arrangements, and the amount is 3.3 trillion yuans. These are important in enabling countries to bypass the US dollar in financial transactions. They played an important role in helping Russia deal with the sanctions imposed by the West in the aftermath of the Ukraine crisis when Russian companies were cut off from international banking where the US dollar still reigns supreme. China has made systematic efforts to diminish the American hold on global financial and currency markets but these have not received the attention they deserve. The Chinese UnionPay was launched as early as 2002 as an alternative to US-owned credit card payment schemes such as Visa and MasterCard. Over the past few years, the UnionPay logo has become more ubiquitous on ATMs throughout the world. Wherever international credit cards have been compelled by the US government to stop international payments, as was done recently with Russia, the Chinese alternative has become more attractive. Furthermore, in the same direction, the Chinese have established the International Payment System (CIPS) or their own international payments gateway with the objective of establishing some control over financial transfers globally. At present, the American SWIFT network is indispensable to effecting such transfers among banks, but with the CIPS China seeks to challenge that monopoly. A trial run has been instituted with Russia and an MoU has been concluded with SWIFT itself to build this into an efficient and convenient alternative gateway. These moves ride on the sheer size of the Chinese economy, the fact that it constitutes 16 per cent of world GDP and 13 per cent of global trade in goods and services. A mention should be made here of the various financial free-trade zones which have been set up to promote financial liberalisation, but under controlled conditions. The Shanghai FTZ, which was set up on the basis of a negative control list, has been able to develop as a successful international financial and banking centre. The experience gained here has enabled 11 such centres to be set up just in the past two years alone. Clearly, temporary challenges are not holding up the long-term plan from proceeding ahead. The ambitious Chinese One Belt One Road (OBOR) initiative has a significant bearing on the internationalisation of the RMB. One of its stated objectives is the “financial coordination” among participating countries. The OBOR could become an important platform for promoting the use of the Chinese currency in trade settlement among these countries just as it is Chinese financial institutions which will play a major role in financing the various infrastructure projects planned under the initiative. As a senior Chinese banker observed, “We will support more infrastructure projects from the Chinese side. Many countries along the route will be willing to accept RMB as a trading currency.” Another Chinese official stated that “The internationalisation of the RMB is practically an essential part of the China’s OBOR initiative. It will pave the way for capital flows, trade and people-to-people exchanges.” It may also be noted that three institutions which India is a part of, namely the Asia Infrastructure Investment Bank, the BRICS Development Bank and now the Shanghai Cooperation Organisation (SCO) are all expected to play a critical role in the unfolding of the OBOR. Financial coordination is one of the stated objectives of the SCO. How should India formulate its own role in these platforms is a matter which needs careful and well-researched deliberation. Do we ride on the Chinese challenge to the West-dominated global financial and monetary system or are our interests better served by resisting it? Does India itself have ambitions to become a major player in the global financial market? Not confronting these issues will inevitably lead to a default result, that is, a growing Chinese influence on the global financial system which itself is a component of China’s larger geopolitical ambition.

Source: Business Standard

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