Surat: Textile traders Hundreds of traders had assembled at the Goodluck textile market on the Ring Road to attend a public meeting called by the Vyapari Sangarsh Samiti (VSS) on Wednesday. VSS has appealed all the traders in the 165 textile markets on Ring Road, Salabatpura and Sahara Darwaja to keep their shops shut for a day. and powerloom weavers will observing a complete shut-down on Thursday to press for their demand for exemption from the Goods and Service Tax (GST). Addressing the gathering, VSS leader Tarachand Kasat, who is also an active member of BJP said, "We want the textile sector to be exempted from GST and instead demand turnover tax. We thought the BJP government will bring 'Achhe Din', but we are heading towards 'Aafat Ke Din' (days of disaster)" Kasat said that the textile traders community had played an important role in supporting Modi as the PM during the 2014 Lok Sabha election. Now, the traders have been left in the lurch and even the union finance minister Arun Jaitley is not ready to listen to the cascading effects of the GST implementation in the textile sector. "FM is least bothered about the survival of the industry in the GST regime," he said. At present, the traders have to deal with the return goods phenomenon, which is persistent in the market since quite a long time. There is around 50 per cent return of the goods. In such condition, it is going to be a difficult for the traders to calculate the GST. Kasat stated that the bandh has been supported by around 80 textile associations across the country. The leaders from the textile associations will be meeting in New Delhi from June 16 to June 26 to represent the GST issue to the government. "If there is no result, we may launch indefinite strike starting from July 1," he said. Another VSS leader, Sanjay Jagnani said, "There will be demonstrations in all the textile markets against GST starting from Thursday between 4 pm to 6 pm. There are many traders, including myself, who have decided to sit on the indefinite hunger strike from July 1." Jagnani added, "No trader will take the registration under GST" Meanwhile, the powerloom industrial estates in Sachin GIDC, Hojiwala Estate and Pandesara have also supported the bandh call. The textile processing units have, however, abstained from the agitation.
Source: The Times of India
Federation of Indian Exports Organisation (FIEO) has asked the government to include textile job works such as cutting or garmenting, embroidery under the 5 per cent goods and services tax (GST) slab. The industry body has demanded cutting or garmenting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting to be brought under the lowest GST bracket as such works are highly outsourced by garment manufacturers. "The above job work in cotton, blend, MMF, should be included under 5 per cent GST uniformly for yarn, fabric, garments, and made-ups, whether woven or knitted and irrespective of fibre-base," FIEO said in a letter sent to finance minister Arun Jaitley on Wednesday. FIEO said the apparel manufacturing industry heavily depends on job works and they should not be left out from the overall 5 per cent tax treatment for the sector.
Source: Business Standard
Handloom weavers of Kannur, a Kerala district known for quality handloom, are mounting the bogey of e-commerce in a big way - they have started selling products including shirts with traditional designs through e-commerce giants like Amazon. The sector has been in crisis due to lack of demand among the new generation and lack of marketing avenues. The district administration has initiated steps to help the handloom sector regain its reputation. Weavers are being trained in creating attractive designs and the administration is helping them tie up with e-commerce giant Amazon to start with to get a wider and direct market for their products, an agency report said. The “Cannloom” brand products including men’s formal shirts in cotton and linen and with traditional designs of Kerala’s popular martial art “Kalaripayattu” and “Theyyam” (a popular ritual form of worship of North Kerala) and cotton dhotis are already being sold on Amazon, according to the report. District Collector Mir Muhammed Ali said “Cannloom” brand with shirts having “Kalari” and “Theyyam” designs, went online on May 14, 2017 on Amazon and the response had been encouraging. Presently, 80 weavers and workers of Kuthuparamba Weavers Cooperative Society had gone online with the two products while 16 other weavers’ societies had completed training at National Institute of Fashion Technology (NIFT) and would launch their products soon online. Launching the products on a major platform like Amazon was an unexplored territory and a first by a weavers’ society in the state, Ali told a news agency. “We started by designing attractive handloom bags and as we moved on we wanted to combine looms and lores of the region and thought of taking “Kalaripayattu” and “Theyyam” motifs, which are part of Kannur’s tradition,” he said. Each shirt has a unique tag, which means each product was one of its kind. There are plans to bring sarees, towels and bags with unique traditional designs of Kannur online, he said. While “Theyyam” shirt is pure handwoven linen priced at Rs 2,000, the “Kalari” shirt costs Rs 1,500 and ordinary handloom shirt, Rs 1,200. “We are in talks with Amazon to reduce their fees which will cut prices by 10-12 per cent,” he said. So far, the handloom products were being sold across the counter with sales being significant only during the festival seasons of Onam and Christmas. The new endeavour will help remove middlemen with benefits going directly to society’s weavers, the report said. According to Kuthuparamba Weavers Cooperative Society secretary Sujesh, products worth Rs 15,000 have already been sold by selling through Amazon. “There is good demand for the products and weavers have realised that with changing times and habits, there is need to incorporate new designs to attract more customers,” he said. There are also plans to sell products through Flipkart and Myntra. Anusree, who is designing the products, said efforts were on to launch Theyyam-inspired sarees, cotton dhoties with traditional printed borders of Theyyam and Kalari. “We are in the process of doing a complete collection of shirts, dhoties, and sarees of ‘Theyyam’ and ‘Kalari’ designs by Onam,” she said. Work on some 120 shirts had been completed. Initially, the weavers were hesitant with the new ideas, but with enquiries pouring in, things were changing, the 25-year-old designer who has passed out of National Institute of Design, Mumbai, said and added there were plans to incorporate printed shirts with contemporary motifs like wifi symbols to attract youngsters. (SV)
Source: Fibre2Fashion
Recently, pharmacists in many cities sent out mailers to some of their regular clients, especially senior citizens. Stock up on your essential drugs, the customers were told. The ‘advisory’ was not triggered by any trouble at the manufacturing end, but by apprehensions arising from the July 1 rollout of the Goods and Services Tax (GST), India’s biggest-ever indirect tax reform. The druggists were not sure if they would have adequate stocks of medicines, as they were worried about how consignments manufactured before July 1 would be treated under the new tax regime. This concern over tax credit for old stocks cuts across sectors. More importantly, manufacturers are not sure how the GST rates that have been announced will affect prices. In fact, some two-wheeler manufacturers are even wooing customers by asking them to beat the GST and purchase bikes for a lower price now instead of buying in July. While most sectors seem to be welcoming of the GST, they are unsure of how the implementation would take place. A few pharmacists BusinessLine spoke to, however, were sure that the confusion would be sorted out within a few days of the GST kicking in. There is also the worry that not everyone in the value chain is GST-compliant. Chandrakant Salunkhe, President, SME Chamber of India, says the B2B business is being affected due to the switch-over. Large companies want their suppliers to be GST-compliant, while many of them are not geared up for the new tax system. Some companies, he says, have postponed their procurement to get the benefit of lower taxes when GST kicks in. Large-volume businesses such as paper and cement trade are going slow due to concerns over losses in compensation during the transition. Traders prefer to keep stocks low to avoid confusion when GST kicks in. Dealers and distributors, especially in the FMCG sector, have restricted fresh purchase of stocks from manufacturers. In the consumer durables industry, retailers are running discounts and special promotional schemes to dispose of existing stocks. It is the same with branded apparels. Says Ashok Goel, Vice-Chairman and Managing Director, Essel Propack, a leading manufacturer of packaging material, “Companies are doing inventory correction before the [GST] rollout. We saw this in May and we are seeing it in June. We believe that in the final 10-15 days before the GST kick-off, we will see a complete lull as dealers will stop picking up stocks. But we expect to see a quick recovery in July and we anticipate a huge surge in demand.” Automobile parts suppliers say there will be no major change in their supply to the vehicle manufacturers. However, a few vehicle manufacturers want to make invoices only till June 25, due to concerns over credit as a consequence of the transition. The CEO of a leading tier-2 supplier to Tata Motors says there has been no rescheduling of parts supply, but feels there will be a slowdown in the last week of June. At the same time, there is fear that the GST will push out small-scale traders in the retail business and the space will be dominated by larger players. “This would pose a bigger threat to small-scale traders and the situation may lead to a trade imbalance,” warns KM John, Secretary, Ernakulam Merchant Chamber of Commerce.
Source: Business Line
The Goods and Services (GST) Council has already acted on more than half of the industry representations it had received during its last meeting, but tax experts say the Council is likely to make more changes to the rate structure for a few sectors, given their genuine grievances. The Council will meet for the 17th time on June 18. Sources said it was expected that the Council could consider representations from car lease rental companies, distributors with imported transition stock and the fertiliser industry. Last Sunday, the Council revised downwards the rates for 66 items against representations received for 133 items. Additionally, it had to also raise the revenue cap for composition scheme to Rs 75 lakh annually from Rs 50 lakh. While the Council had revised rules for claiming input credit on excise paid on the stock of goods that will transition from the current regime to GST on July 1, there was no relief for those who are holding imported stock. The rules say that a distributor or retailer can claim credit of excise duty paid partly or fully depending on the type of stocks, but the manufacturer of the goods need to be domestic. The same facility has not been extended to goods manufactured outside the country. For imported goods, a distributor/retailer pays customs duty as well as countervailing duty (CVD) but can’t avail input credit for the latter unless the council changes its stance. “CVD is similar to excise duty but while those stocking goods made in the country would be able to avail credit for excise duty already paid, those holding stock of imported goods stand to incur substantial losses,” Pratik Jain, national leader of indirect tax at PwC said. The electronics industry with imported goods are likely to be hit hard as their goods would become more expensive than those made in the country. The industry has made representations to the Council to find a way out. Similarly, the car lease rental firms have petitioned the Council to either give them credit for excise duty paid on cars or waive the central GST. Currently, the car leases are subjected to VAT and service tax amounting to an effective tax rate of 28%. According to GST provisions related to leasing of motor vehicles where the right to use is being transferred, these leases will be taxed at the same rate as the vehicle, ranging from 29% to 43% depending on the size of the vehicle. Although this problem will be taken care of once these companies start using the vehicles manufactured post July 1 as input credit for GST paid will be available, the sharp jump in levies may result in cancellation of existing leases. This hit on the sector is estimated to be nearly `1,800 crore, Jain said. Additionally, the fertiliser sector has also petitioned the Council regarding its unique problem, whereby it would be saddled with accumulated input credit. Since fertiliser companies sell their product at a lower price while the rest of the amount is refunded to them by the government through subsidies, its output liability will be much lower than the available input credit as the subsidy payment will not be taxed under GST.
Source: Financial Express
How will GST reduce prices through taxing only the value added?
Let us first understand how the current system works. A manufacturer pays central excise at 20 per cent on a shirt of value ₹100. At the time of sale, another tax VAT is to be paid at 15 per cent to the State government, which should be ₹15 in this case. But the State government charges VAT not on the ₹100 but on ₹120 which is the value of shirt plus the central excise tax that was already paid. So, the VAT rate of 15 per cent in effect becomes 18 per cent, leading to a higher price of the shirt. The current system has many such inconsistencies. GST resolves the issue by integrating tax systems of central and State governments by introducing a facility to set off taxes paid across the value chain. Consider a simple three-stage operation of a small shirt-making unit owned by a person called Ria. She buys fabric from John, makes shirts and sells them to Vijay, the retailer who finally sells shirts to the end consumers. The GST rate for fabric is 5 per cent and garments is at 18 per cent. If John, Ria and Vijay are located in the same State, the transactions among them will be considered under the intra-State sale provisions and GST payable would be the total of CGST and SGST. If one of them is located in a different State, the transaction will be considered inter-State and GST payable would be the IGST, which would be the total of CGST and SGST. The tax liability would remain same in both cases. Let us see the how the GST is paid at each stage of business operation.
Stage 1: Raw material Purchase. John sells fabric of value ₹1,000 to Ria. He pays GST of ₹50 at 5 per cent on the fabric value of ₹1,000. The total price of fabric shown by John in the invoice given to Ria would be ₹1,050. This includes the basic value of the fabric at ₹1000 and the GST paid of ₹50.
Stage 2: Manufacturing and sale. Ria manufactures shirt using fabric bought from John. Here, she adds ₹100 as value during the conversion of fabric to shirts. Ria pays GST of ₹18 on the value added ₹100. The total price of the shirt shown by Ria in the invoice given to the retailer would be ₹1,168. This includes the basic value of the shirt at ₹1,100 ( ₹1000+100) and GST paid of ₹68 ( ₹50+₹18).
Stage 3: Retail sale. Vijay adds his margin of ₹200 in the price of the shirt. He pays GST of ₹36 on this value (GST at 18per cent on ₹200). The total price of the shirt shown by Vijay in the invoice given to a customer would be ₹1,404.
This includes the basic value of the goods at ₹1,300 ( ₹1,000+₹100+₹200) and GST paid of ₹104(₹50+₹18+₹36). The end consumer pays ₹1,404 for the shirt. This includes the GST of ₹104.
What stands out here? The supplier, manufacturer and retailer, each pays GST only on the value added by them. No one pays GST on the value that includes the tax paid earlier as it happens in the current system.
Source: Business Line
While the Centre has made it clear that the states announcing farm loan waivers will have to do so from their own resources, it on Wednesday sought to play its part in assuaging farmers’ woes. Short-term crop loans of up to Rs 3 lakh will continue to attract a subsidised rate of 7% this fiscal and farmers making “prompt” repayments will get the loans at just 4%, as the Cabinet on Wednesday approved a proposal to extend its interest subvention scheme for such loans to 2017-18. The Cabinet also cleared a proposal to introduce a Bill in Parliament for setting up a resolution corporation to deal with bankruptcy in banks, insurance companies and other financial entities. The Financial Resolution and Deposit Insurance Bill, 2017, is aimed at inculcating discipline among financial service providers in the event of financial crises by “limiting the use of public money to bail out distressed entities”. Once cleared by Parliament, the new law for financial firms will complement the existing insolvency and bankruptcy code (which is meant for dealing with non-financial entities) and will provide a comprehensive resolution framework for the economy. Although the government’s move to keep the cost of short-term crop loans cheap comes as a breather for farmers struggling to cope with a fall in prices of some commodities, the cost to the government on account of the move is estimated at Rs 20,339 crore in 2017-18. The Cabinet also decided to provide farmers loans for post-harvest storage of their produce at a subsidised interest rate of 7% for six months. For those farmers adversely affected by natural calamities, the government has decided to give a 2% interest subsidy for first year on the restructured loan amount. The institutional credit will help farmers shift from unorganised sources of credit (where they are forced to borrow at exorbitantly high rates of interest) to institutional ones. Since crop insurance under the Pradhan Mantri Fasal Bima Yojana is linked to availing of crop loans, the government’s latest decisions will benefit farmers. In recent months, farmers from Madhya Pradesh to Tamil Nadu to Punjab have been demanding complete waiver of loans, citing lower realisations. Uttar Pradesh has already announced waiver of farm loans of Rs 36,360 crore; although Maharashtra is yet to announce how much loans will be waived, reports suggest that these would be around Rs 35,000 crore. Interest subsidies and loan waivers are sure to put a question mark on the credibility of the fiscal consolidation exercise to be undertaken by both the Centre and the states in 2017-18, more so when government spending has been a prime driver of the economy as private investments falter. The Centre aims to cut the fiscal deficit to 3.2% of GDP in 2017-18 from 3.5% in the last fiscal, while states, according to the NK Singh panel, need to cut their fiscal deficits by 16 basis points a year from 2.98% in 2016-17 if they want to achieve the current debt-to-GDP ratio of 21% again in 2024-25. States that have fared commendably on the fiscal front between 2004-05 and 2013-14 reported slippages since then as their tax revenue growth plateaued; the consolidated fiscal deficit of states is reckoned to be not less than 3.4% of GDP in 2016-17 and the target of 2.6% for the current year looked optimistic even before the loan waiver packages. Through the subvention scheme, the government offers an interest subsidy of 2% per annum for short-term crop loans of up to Rs 3 lakh per farmer on the condition that the lending institutions make short-term credit available at the ground level at 7% to farmers. An additional 3% interest subsidy is provided to the “prompt payee farmers”. The interest subvention scheme, which has been continuing since 2006-07, will be implemented by the National Bank for Agriculture and Rural Development (Nabard) and the Reserve Bank of India. The RBI last month had asked banks, as an interim measure, to continue to give the discount on interest on short-term crop loans in 2017-18. However, RBI governor Urjit Patel had earlier questioned the policy of loan waiver and interest subsidies. He had said “steep interest rate subventions and large credit guarantees impede optimal allocation of financial resources and increase moral hazard” and, as such, these don’t solve the sector-specific issues. Even former RBI governor Raghuram Rajan had in 2014 said interest subventions and loan waiver could distort the price of credit and also lead to misuse of such schemes. SBI chairman Arundhati Bhattacharya, too, recently said waiving crop loans disrupts credit discipline as borrowers expect more more such relaxations in future. The government has raised the farm credit target to Rs 10 lakh crore for the current fiscal, against Rs 9 lakh crore for 2016-17.
The Financial Resolution and Deposit Insurance Bill, 2017
According to a government statement, the Financial Resolution and Deposit Insurance Bill, when made into law, will lead to the repeal or amendment of resolution-related provisions in sectoral Acts as listed in Schedules of the Bill. It will also result in the repealing of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, to transfer the deposit insurance powers and responsibilities to the resolution corporation. “The Resolution Corporation would protect the stability and resilience of the financial system; protecting the consumers of covered obligations up to a reasonable limit; and protecting public funds, to the extent possible,” the government said in a statement. The Bill aims to help maintain financial stability by ensuring adequate preventive measures, while at the same time providing necessary tools for dealing with crisis. The Bill aims to strengthen and streamline the current framework of deposit insurance for the benefit of a large number of retail depositors. Further, the Bill seeks to decrease the time and costs involved in resolving distressed financial entities, according to the statement.
Source: Financial Express
According to Angel Commodities, Cotton futures are expected to be under pressure on reports of good sowing progress and higher stock levels in the country. MCX cotton fell more than 1.2% on Tuesday on anticipation of good production in the next season as sowing progress in the country starts in a brisk manner. As per latest data from Agricultural Ministry, cotton is planted in 14.1 lakh hectares (l ha) till last week , higher by 43 % compared to last year acreage of 9.87 l ha for same period. In Haryana, acreage was at 630,000 ha, up 28% on year, while in Punjab, the area under cotton was up 52% at 382,000 ha, the data showed. As per ICAC, Cotton area in India is forecast to expand by 7% to 11.3 million hectares, and production could increase by 3% to 6 mt in 2017/18. ICE futures dropped to their lowest since end - January on Tuesday on expectations of a robust harvest. Moreover, lower U.S. export outlook for the new crop, weighed on the prices. Net upland sales for the 2016 - 17 crop last week was totaled 82,700 running bales, down 26% from the previous week. US sowing data showed 92% of cotton crops were planted in the US by the week ended June 12, up from 80% in the previous week. USDA June report draw a bearish trend (from 14 million to 13.5 million bales) for the US cotton exports while ending stocks at 9 year high at 5.5 million bales. Speculators reduced a bullish stance in cotton futures and options to the lowest since November 2016.
Outlook
Cotton futures are expected to be under pressure on reports of good sowing progress and higher stock levels in the country. Normal monsoon forecast and higher prevailing price of cotton may encourage farmers to plant more cotton as prices of oilseeds and pulses are at multi year lows.
Source: moneycomtrol.com
The increase of the world fiber market consumption was 1.5% up to 99 million tons in 2016e according preliminary calculation. Oil-based synthetic fibers had the biggest share with 62.7%. Cellulosic and protein-based fibers consist of cotton (around 24.3%), wood-based cellulose fibers (around 6.6%), other natural fibers (around 5.3%) and wool (around 1.1%) Synthetic Textile Fiber Market deals with developing and manufacture of synthetic fibres also known as man-made fibres. The synthetic fires are discovered by several scientists. The most common synthetic textile fibers are polylactide, olefin, spandex, nylon, lyocell, lurex, luminex, ingeo, acrylic, aramid, tencel, acetate, rayon, and polyester fiber. Synthetic Textile Fiber Market brought a revolution in the textile industry. Synthetic Textiles show special functions such as stretching, waterproofing and stain resistance. Sunlight, moisture, and oils from human skin cause all fibers to break down and wear away. Synthetic materials withstand the damage from water or stains. Natural fibers tend to be much more sensitive than synthetic blends. This is mainly because natural products are biodegradable. Natural fibers are susceptible to larval insect infestation. But synthetic fibres are not a good food source for fabric-damaging insects. These abilities make synthetic fibres more durable than the natural fibers. Synthetic fibres pick up the dyes easily, and also have special qualities which make them most preferable and suitable textiles for fashion industry. Synthetic textile fiber are abundant in nature as they are not based on any crops or agricultural products. They are employed in almost every fiber industry. These factors drive the growth of the Synthetic Textile Fiber Market. North America is the leading region in the Synthetic Textile Fiber Market. Latin America and Europe are next to it. With rising green fibers usage and environmental regulations the market is expected to be mature in near future. Fewer regulations and rising demand make Asia-Pacific as the fastest growing market. The synthetic textiles also have some disadvantages. Synthetic Textile Fiber burn faster than natural fibers. Synthetic textiles are not skin friendly so they can’t be worn for longer period. Synthetic materials are non-biodegradable in comparison to natural fibers. These factors hinder the growth of Synthetic Textile Fiber Market. Scientists are focusing on developing the new kind of synthetic fibres which are eco-friendly to develop the future growth.
Source: Whatech.com
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$ 46.48 per barrel (bbl) on 14.06.2017. This was lower than the price of US$ 47.23 per bbl on previous publishing day of 13.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 2989.06 per bbl on 14.06.2017 as compared to Rs. 3043.64 per bbl on 13.06.2017. Rupee closed stronger at Rs. 64.31 per US$ on 14.06.2017 as compared to Rs. 64.45 per US$ on 13.06.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 14, 2017 Previous trading day i.e. 13.06.2017) |
Pricing Fortnight for 01.06.2017 (May 12, 2017 to May 29, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.48 47.23 |
51.67 |
|
(Rs/bbl) |
2989.06 (3043.64) |
3331.68 |
|
|
Exchange Rate |
(Rs/$) |
64.31 (64.45) |
64.48 |
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1114.21 |
USD/Ton |
1.34% |
6/14/2017 |
|
VSF |
2176.93 |
USD/Ton |
0% |
6/14/2017 |
|
ASF |
2324.02 |
USD/Ton |
3.27% |
6/14/2017 |
|
Polyester POY |
1135.53 |
USD/Ton |
0.52% |
6/14/2017 |
|
Nylon FDY |
2662.33 |
USD/Ton |
0% |
6/14/2017 |
|
40D Spandex |
5221.70 |
USD/Ton |
0% |
6/14/2017 |
|
Polyester DTY |
2500.53 |
USD/Ton |
3.66% |
6/14/2017 |
|
Nylon POY |
1390.00 |
USD/Ton |
1.07% |
6/14/2017 |
|
Acrylic Top 3D |
2838.84 |
USD/Ton |
0% |
6/14/2017 |
|
Polyester FDY |
5824.76 |
USD/Ton |
0% |
6/14/2017 |
|
Nylon DTY |
1360.58 |
USD/Ton |
-1.07% |
6/14/2017 |
|
Viscose Long Filament |
2500.53 |
USD/Ton |
0% |
6/14/2017 |
|
30S Spun Rayon Yarn |
2838.84 |
USD/Ton |
0.52% |
6/14/2017 |
|
32S Polyester Yarn |
1684.18 |
USD/Ton |
0.17% |
6/14/2017 |
|
45S T/C Yarn |
2706.46 |
USD/Ton |
0% |
6/14/2017 |
|
40S Rayon Yarn |
2985.93 |
USD/Ton |
0% |
6/14/2017 |
|
T/R Yarn 65/35 32S |
2309.31 |
USD/Ton |
0% |
6/14/2017 |
|
45S Polyester Yarn |
1838.63 |
USD/Ton |
0% |
6/14/2017 |
|
T/C Yarn 65/35 32S |
2279.90 |
USD/Ton |
0% |
6/14/2017 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
6/14/2017 |
|
32S Twill Fabric |
0.86 |
USD/Meter |
0% |
6/14/2017 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
6/14/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
6/14/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
-0.22% |
6/14/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14709 USD dtd. 14/06/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
ICE cotton futures fell to a 4-1/2-month low on Wednesday on expectations of increased production in the United States. Government data on Monday showed that as of June 11, 92 percent of the U.S. crop had been planted compared to a 5-year average of 90 percent. "There is some concern regarding the size of the U.S. crop and potential exports. We think the crop is rated in better condition than what it is. But, that's what the USDA has published and market is going to trade," said Louis Rose, co-founder and director of research and analytics at Rose Commodity Group, said in a note. "There is certainly an opportunity for the market to go up with so much unfixed positions, but it is going to be temporary." Cotton contracts for December settled down 0.87 cent, or 1.21 percent, at 70.95 cents per lb. It traded within a range of 70.86 and 72 cents a lb. Prices hit a low of 70.86, its worst since January 24. "The hot temperatures forecast into the weekend over the High Plains of Texaswill surely have all the bulls chirping buy cotton, its burning up out there. However, the charts are telling us a completely different story," Jobe Moss, a broker with MCM Inc in Lubbock, Texas, wrote in a note. The daily and weekly trends have solidly turned down, Moss added. Total futures market volume fell by 10,404 to 37,025 lots. Data showed total open interest gained 472 to 234,543 contracts in the previous session. Certificated cotton stocks deliverable as of June 13 totaled 468,011 480-lb bales, up from 458,935 in the previous session.
Source: The Times of India
In addition to people feeling the heat, our industry is feeling the heat of load shedding too. Last week, the Pakistan Apparel Forum issued a statement highlighting the 7-8 hours of load shedding in industrial areas of Karachi, where production has been scaled down by 40 percent. This statement came a day after the Commerce Minister said that an increasing trend in exports is being observed since the announcement of the PM’s export package! First things first; so far, there isn’t enough evidence to suggest any ‘rebound,’ as the Commerce Minister likes to claim (Read: “Textile exports 10MFY17,” published on May 24, 2017). That’s because there remains a divide between implementation and policy. The new budget didn’t introduce anything new either, and the exporters’ claims are still pending. The cotton production was, despite an improvement over the previous year, also underwhelming, and has resulted in the cotton ginners successfully lobbying for an import duty. Now, given the resumption of load shedding in Ramadan, it appears that matters will only be worse before they can get better. In addition to Karachi, industrial load shedding is taking place in Punjab as well, from Iftari to Seheri, as per a source in APTMA. Prior to the holy month, both Punjab and Sindh were receiving a steady supply of electricity. In Ramadan, however, the government diverts the supply of electricity from the industry to consumers. Energy has long been a core issue for the industry. Even when there is no load shedding, the tariff is the highest in the region. The textile industry claims to pay 100 percent of what it consumes from WAPDA, yet it is being charged Rs3.6 as theft surcharge. The gas-pricing issue persists as well; Punjab is getting RLNG for Rs1050, whereas Sindh is getting Sui gas for Rs 600. It’s understandable that the government diverts the electricity from industry to consumers, but it doesn’t seem to be working for the consumers even! Why are the consumers suffering as well? Where are all the megawatts going that the sitting government so proudly likes to flaunt? It’s unfortunate that the load shedding epidemic has gotten so bad that both the industry and the everyday consumers are currently at a loss.
Source: Business Recorder
The European Union restored GSP+ to Sri Lanka on 19 May 2017. The EU has three GSP schemes. The GSP scheme for the least developed countries with a per capita income below USD 1,025 provides zero duty access to the EU market. The ‘general GSP’ scheme for lower-middle income countries with a per capita income between USD 1,025 and USD 4,035 allows access the EU market on payment of a concessionary import duty. These two EU-GSP schemes have undoubtedly helped many developing countries to build export industries. The EU’s GSP+ scheme allows lower-middle income countries which would normally be charged a concessionary import duty, to enjoy zero duty access to the EU market – but at a heavy price. Applicants for GSP+ must ratify 27 international conventions and place themselves under the political supervision of the EU. As a result, only nine countries including Sri Lanka have joined the GSP+ scheme. Fulfilling the conditions to qualify for GSP+ could cause permanent damage to a country’s political, legal and institutional framework, which is why my government allowed GSP+ to be withdrawn in 2010 without agreeing to the political demands the EU made for the continuation of GSP+ such as instituting war crimes inquiries against our armed forces and greater devolution of power. After we lost GSP+ in 2010, we came under the general GSP scheme and our exports were charged a concessionary rate of duty by the EU. Since GSP+ was restored to Sri Lanka last month, the government has said that there will be a boom in exports of everything ranging from fisheries products to apparel and other industrial goods to Europe. Hopes have been generated of foreign investors flocking to Sri Lanka to make use of duty free access to the EU market. The government keeps telling the people that our entire future can be built upon GSP+. However, it should be understood that GSP+ offers only temporary economic benefits. The EU’s GSP schemes are governed by Regulation No: 978/2012 of the European Parliament and the Council of 25 October 2012. A country can benefit from GSP+ only so long as it is a lower-middle income country with a per capita income less than USD 4,035. Upper-middle income countries above that threshold are not entitled to any EU-GSP scheme at all, and goods from such countries are charged the full import duty by the EU. Sri Lanka’s per capita income was USD 3,843 in 2015 and USD 3,835 in 2016 which means that we are just USD 200 away from the threshold of USD 4,035 which will make us ineligible for any kind of EU-GSP scheme. How close are to that threshold can be gauged from the fact that during my nine years in office, our per capita income grew by an average of USD 286 per year. After Sri Lanka reaches the USD 4,035 mark in a particular year, we will be under observation for a further two years and then given a grace period of about one year before being taken out of all EU-GSP schemes. Georgia, which used to be a GSP+ recipient, crossed the USD 4,035 threshold and was declared ineligible for both the general GSP and GSP+ schemes by the EU with effect from 1 January 2017 by EU Commission Delegated Regulation No: 2015/1979 of 28 August 2015. The EU-GSP schemes were always designed to take a country gradually from zero duty to paying a concessionary duty and later to paying the full duty. Zero duty access or concessionary duty access under the EU’s GSP schemes was never meant to be perpetual. Countries lose GSP concessions as their economies grow. At times such concessions can be withdrawn by the donor countries for other reasons as well. In 2005, the quota system for apparel imports into the USA which countries like Sri Lanka relied on heavily, was abolished. The government should not create unrealistic expectations about GSP+ among the public. Programmes should be started to help businesses prepare for the inevitable transition to a future without any EU trade concessions, through the diversification of products and markets. Yet our apparel exports to the USA continued to grow. Our export industries have certain marketable strengths such as the absence of child labour, adherence to high environmental standards and comparatively good working conditions for employees. Buyers can thus rely on getting an untainted product from Sri Lanka. Since we are very close to the USD 4,035 per capita threshold, we should prepare for a future without any GSP concessions from the EU, by building on the strengths we already have. Ironically, the transition to a future where we will have to pay the full import duty to the EU would have been easier if we had simply remained within the ‘general GSP’ scheme paying a concessionary duty until we cross the USD 4,035 mark. It should be borne in mind that because GSP+ was restored to Sri Lanka, once we cross the USD 4,035 mark, we will have to make a sudden transition from enjoying zero duty status to paying the full import duty. The government should inform the people and the export industries that we are on the verge of losing not only the recently restored GSP+ but the ‘general GSP’ concession that we had since 2010 as well. Since we are very close to the USD 4,035 per capita threshold, we should prepare for a future without any GSP concessions from the EU, by building on the strengths we already have The government should not create unrealistic expectations about GSP+ among the public. Programmes should be started to help businesses prepare for the inevitable transition to a future without any EU trade concessions, through the diversification of products and markets. Providing low interest capital to modernize factories, tax incentives for expansion, upgrading the skills of the labour force may be some of the measures needed to facilitate this transition. It is hoped the government will give due consideration to these matters. GSP Plus systemis a partnership that helps our people Statement issued by Finance and Mass Media Minister, Mangala Samaraweera in response to a recent statement made by former President and Kurunegala District MP Mahinda Rajapaksa on GSP+ concession. Mr. Mahinda Rajapaksa and his advisers, instead of working to take our country to the heights that our country could have achieved soon after the conclusion of the conflict in 2009, chose to run our country to the ground. He made our country heavily indebted on the one hand, having borrowed at exorbitantly high, commercial rates; while taking decisions that made Sri Lanka withdraw from the international stage, on the other, thus making our country and our people isolated and shunned by the world. He hides the fact that time after time, major donor countries voted against Sri Lanka at the time, in international financial institutions. Having eventually lost an election which he himself called for, ahead of time, he appears to still not be able to come to terms with that loss. His hunger for power makes him and his advisers continue to indulge in the lies, tricks and games that were so much a part of his regime and so much a part of his personality. Just recently, we saw how he lied to the people about his travel to Japan. He said that he was travelling to Japan at the invitation of the Emperor of Japan! The Embassy of Japan responded to a question from a journalist denying this. Why resort to this kind of lying to hoodwink the people, Mr. Rajapaksa? If you are in fact a follower of the teachings of Gautama Buddha as you try to show the people, isn’t it about time, at least at this stage of your life, to try to abide by even one of the five precepts, and refrain from indulging in lies. For this government, the GSP Plus system is a partnership that helps our nation and our people regain their due place once again on the international stage as a respected nation. Mr. Rajapaksa, in a statement titled ‘Government should not create unrealistic expectations about GSP Plus’ says that obtaining the GSP Plus facility is trivial, since Sri Lanka is very close to passing the threshold of an upper middle income country. He conveniently hides a fundamental issue. A country has to be classified as “upper middle income” by the World Bank for three consecutive years in order to be no longer eligible for the GSP Plus. Even if Sri Lanka were to reach that threshold tomorrow, we would still have access to the advantages of GSP Plus for three years, and for one additional year after the decision is taken to withdraw the benefit. This shows that Mr. Rajapaksa is clearly trying to distort facts because he can’t acknowledge the fact that the National Unity Government has in fact managed to obtain a formidable boost to Sri Lanka’s economy, in application of Article 4(1) of the GSP Regulation of 2012, for at least four years. This period of, at the very least four years, comes just when the European economy starts to show signals of growth recovery. With less unemployment and more consumer demand, this is the moment to join in enhanced partnership with the European Union! But let me add a point. Mr. Rajapaksa’s reasoning that we shouldn’t aspire to a better deal, because some time in the future the economy will grow is callous and insensitive to the workers of our country and their families. It reflects a complete lack of concern for our workers who expect progress in the immediate present, and they deserve progress in the immediate present. So what if Sri Lanka, thanks to the ingenuity and hard work of its entrepreneurs and workers looks poised to cross a certain threshold of average income? Does it mean that we, as a government, should sit on our hands without giving them the opportunity for a better deal that they deserve now in the present? Shouldn’t we help them to reach our national goals sooner rather than later? For this government, the GSP Plus system is a partnership that helps our nation and our people regain their due place once again on the international stage as a respected nation. The idea that GSP Plus puts Sri Lanka “under the supervision” of the EU is simply absurd. By committing to a number of universal human rights principles, we do nothing that was not already recommended by Sri Lankan people who came before the Lessons Learned and Reconciliation Commission (LLRC) to give their input and views. Protecting every citizen from torture is not an alien imposition. It is a sovereign decision from a humanistic nation, towards its own citizens, inspired by the most sacred human values and principles. How ironic that Mr. Rajapaksa who claims to be not just a follower but a guardian of Buddhism in Sri Lanka, does not advocate granting the very basic human rights principles and rights and freedoms to the citizens of this country! Don’t our citizens deserve the highest standards of protection? Don’t our citizens deserve the highest standards of human rights and freedoms? It was incompetence and arrogance of Mr. Rajapaksa and his advisers, and their determination to deny the people of this country their rights that resulted in Mr. Rajapaksa failing to retain the GSP Plus facility. It was ill-advised to not implement the 2011 recommendations of the LLRC, a Commission which he himself appointed, to protect citizens from torture, criminalize disappearances, and fully investigate cases of human rights violations. In fact it was an injustice caused to the law abiding soldiers of this country as well. Having failed himself, and the people of our country, now in 2017, it is simply invidious to criticize a successful measure that the Government seeks to implement for the benefit of the people of our country. We know very well how Mr. Rajapaksa and his advisers tried until the last minute to retain the GSP Plus facility in 2010, and lost. Licking their wounds, they then sought to lie to the people by saying that he decided to not pursue the facility, to avoid damage to the country’s political, legal and institutional framework. He probably still can’t get over those lies. So he keeps repeating them in different formulations and words even seven years later in 2017. For this government, the GSP Plus system is a partnership that helps our nation and our people regain their due place once again on the international stage as a respected nation and a respected people standing shoulder to shoulder with the international community, shedding the pariah tatters that the former government chose to put on our nation and our people. Sri Lanka and the Sri Lankan people deserve the best in the world. Sri Lanka is a proud nation and the Sri Lankan people are a proud people with the self-confidence to speak and act as equals with every country or group of countries in the world. We don’t need to hide from global dialogue in order to feel better. On the contrary, we feel stronger when our laws reflect the best of global humanism, when our citizens benefit from the best law enforcement, when our workers and entrepreneurs see the ports of the world open to the fruit of their efforts. We know very well how Mr. Rajapaksa and his advisers tried until the last minute to retain the GSP Plus facility in 2010, and lost. Licking their wounds, they then sought to lie to the people by saying that he decided to not pursue the facility
Source: Daily Mirror
The Director-General of the council, Dr. Hussaini Doko Ibrahim, while addressing the farmers at the official ceremony held at the Institute of Agricultural Research (IAR), Zaria, recently, said the council was concerned by the declining performance of the Cotton, Textiles and Garment sector (CTG), and was, therefore, motivated to continue boosting cotton production. He said this was to enable idle ginneries starved of cotton seed to come back to operation. “In continuation of the boosting programme, RMRDC presented 5.82 tonnes of cotton seeds to farmers in 2015 and 4.3 tonnes of improved cotton seeds (SAMCOT 8, 9, 10, 11, 12 & 13) to all cotton farmers under the umbrella of National Cotton Association of Nigeria (NACOTAN) in 2016. The council is today providing additional four tonnes of cotton seeds (Samcot 8, 9 and 10) to farmers under the umbrella of the National Cotton Growers Association of Nigeria (NACOTAN) for this year’s planting season,” he said. Dr. Ibrahim lamented that out of the 54 ginneries available in Nigeria, only 22 were functioning, albeit at very low capacity utilisation. He added that this trend had a spirally limiting effect on the cotton value chain development locally, culminating in the folding up of several textile industries (83) between 1995 and 2017, and leaving only 23 functioning at low capacity utilisation. “Ginning capacity of the existing ginneries is about 650,000 tonnes of seed cotton but current production is less than 60,000 tonnes per annum; representing about 10 per cent capacity utilisation,” he stressed. Also speaking, Prof. Ibrahim Umar Abubakar, the Executive Director, IAR, Zaria, stated that the institute had developed six different cotton varieties for local use. He emphasised that the present administration’s focus was on the need for diversification of the economy from oil-dependent to agriculture. He said agriculture was contributing about 45 presently to the nation’s GDP. In an effort to achieve economic diversification, the government has tried to revive cotton production through the activities of the Presidential Committee on Cotton, Textile and Garment (CTG). The director also said there was enormous potential associated with the entire cotton value chain. He, therefore, challenged the private sector, ginners, farmers and all stakeholders to assist in mass production of cotton seeds in order to meet national demand. The President of National Cotton Association of Nigeria (NACOTAN), represented by the National Secretary-General, Alhaji Hassan Buhari, expressed gratitude to RMRDC and other relevant stakeholders for making cotton seeds available to NACOTAN for the 2017 planting season. He, however, challenged government to assist in the area of cotton market to enable cotton farmers market their produce easily.
Source: Daily Trust
Prospects for cotton prices may not be as downbeat as some commentators believe, analyst Judith Ganes-Chase said – despite acknowledging that this year US harvest could exceed official forecasts. Ms Ganes-Chase acknowledged the pressures on cotton prices from raised production forecasts for 2017-18, with the US Department of Agriculture on Friday raising its estimate for the world harvest by 1.5m bales to 114.7m bales – a jump in output of 8.7m bales year on year. "The season ahead will start off with a bearish posture given the potential for increased plantings in response to better prices" that have reigned for much of 2017. US farmers, expected by the USDA to raise output by 2.0m bales to a 10-year high of 19.2m bales this year, "are not the only ones with intent to plant more cotton and increase production," said Ms Ganes-Chase, head of J Ganes Consulting. Other major growers, such as China, Pakistan and India, where monsoon rains have got off to a good start, are also seen raising output. And the US harvest could well exceed official expectations, she said. "USDA may have understated the size of the US cotton crop if weather stays favourable as the figures were based on average abandonment and yields," and both results could turn out better than expected. 'Sing a different tune' However, investors, who on Tuesday drove New York cotton futures to their lowest since January, are "considering the worst-case posture", Ms Ganes-Chase said. "The market is pricing in a fairly bearish perspective and with that comes opportunity." Although concurring with ideas that cotton prices may yet fall, flagging in particular the pressure on values as harvests boost world supplies, "thereafter, I would sing a different tune and moderate bearish views".
'Fundamentals less bearish'
Indeed, cotton supply and demand fundamentals are "actually less bearish than they were in March", when the USDA underlined expectations of a rise in US cotton sowings this year, forecasting a rise of 1.16m acres to 12.23m acres in plantings. The US balance sheet at the time included an expectation of a rise in US cotton inventories over 2016-17 which is no longer expected, thanks to strong exports. US inventories are now forecast falling by 600,000 bales this season to 3.2m bales. 'Now, with [2016-17] ending stocks slashed, the increase in supply [in 2917-18] won't seem as monumental." Furthermore, the USDA may have proven too hasty last week in cutting by 500,000 bales, to 13.5m bales, its forecast for US exports in 2017-18. "If the quality of the 2017 crop is excellent, then exports will likely exceed the current view as well preventing a large stock build," Ms Ganes-Chase said, terming the USDA export forecast "conservative".
'Multiple sell trigger levels'
Many other commentators have issued cautions over cotton price prospects, with Dr John Robinson, cotton marketing expert at Texas A&M University warning of a "lot of downside price risk" in the market, while Rabobank termed Friday's USDA data "bearish". Tobin Gorey, at Commonwealth Bank of Australia, on Wednesday restated caution over cotton futures, which closed the last session at four-month lows, for both July delivery and the new crop December contract. The contracts also came close to falling below their 200-day moving averages, a key technical pointer. "Cotton futures are ploughing through multiple sell trigger levels very quickly – the consequence of having gone nowhere new for months," said Mr Gorey. "The forecast fundamentals have been in place for some time for lower prices. Fireworks might still be ahead."
Crop condition overstated?
However, Louis Rose at Rose Commodity Group has taken a more mixed view of the USDA data, underlining that they show growth in consumption as well as production. Furthermore, he flagged some caution over a USDA assessment, in weekly data on Monday, that 66% of the US cotton crop is in "good" or "excellent" condition. "Crop condition ratings continue to seem higher than reports we receive from people with 'boots on the ground' across major US producing regions," Mr Rose said.
"One of our Texas contacts relays that loss of non-irrigated acreage that has been planted, but has yet to emerge, could be significant."
Source: Agrimoney.com
SPGPrints, a leading provider of integrated solutions for textile, label, and industrial markets, is set to showcase its digital inkjet and rotary screen technologies for textile printing, to accelerate the marketing of a range of fabrics at GFT 2017, Thailand’s leading garment and textile printing fair, at Bangkok, July 5 to 8, 2017, in stand E35, hall 104. Taking centre-stage at the booth will be SPGPrints’ Javelin inkjet printer for annual production volumes of up to two million linear metres per year. GFT will also mark the first demonstration of the Javelin in South-East Asia. The Javelin printer features SPGPrints’ unique ink delivery system, Archer technology, featuring nozzles that are 4 millimetres from the substrate – a significantly longer nozzle-fabric distance compared with alternative technologies. This allows a wider range of substrates to be run, minimising the chance of print head damage. Using only six colours, Archer technology enables a gamut wider than the HD-gamut of other digital textile printing solutions. In addition, SPGPrints’ ‘Archer Print Head Program’ provides a two-and-a-half-year guarantee on the print heads in combination with the use of accredited inks. The Javelin printer uses a scanning action with an array of Fujifilm Dimatix Samba print heads, delivering variable drop sizes (2pL-10pL) at resolutions of up to 1200 x 1200dpi, for sharp image reproduction across the 1850mm printing width. In addition, for annual printing volumes exceeding two million linear metres, SPGPrints offers its high productivity, fixed-array PIKE printer. SPGPrints has invested significantly in the development of digital inks that ensure unattended printing, with unrivalled quality and runnability. Jos Notermans, commercial manager digital textiles at SPGPrints said, “SPGPrints’ Javelin and Pike inkjet printers, bringing new design possibilities, rapid turnarounds of short and long runs, and significant production cost reductions, have proven to be a game-changing solution for addressing the value chain’s needs.” SPGPrints also offers a fully controllable, efficient rotary screen process, with solutions covering every step in the workflow. The nickel electroformed NovaScreen and RandomScreen screens are capable of faster print speeds and achieve even paste transfer with relatively low squeegee pressure, resulting in improved paste yields. Thanks to their strength, NovaScreen and RandomScreen screens can withstand the rigours of relatively fast production speeds, handling and multiple re-engraving cycles. Additionally, SPGPrints offers digital imaging solutions for fast rotary screen preparation, with a fast return on investment. SPGPrints’ smartLEX 7043 direct laser exposing system, with its unique multi-beam diode technology, combines long life, economical use of energy, high productivity and resolutions of up to 2540dpi. (GK)
Source: Fibre2Fashion
