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MARKET WATCH 17 JUNE, 2017

NATIONAL

INTERNATIONAL

Jharkhand has the best textile policy in India

Prime Minister Narendra Modi, will inaugurate the Textiles India 2017, touted to be one of the largest global exhibitions of its kind, to be held from 30 June to 2 July at Mahatma Mandir in Gandhinagar, Gujarat. Union Finance Minister Arun Jaitley, is expected to address the Valedictory Session. Spread over an area of about 125,000 square metres, over 1200 national and international exhibitors, 2500-plus global buyers from about 60 countries, and 15,000 domestic footfalls, a litany of industry leaders, technical experts and senior policymakers from the Union as well as the State Governments, the exhibition will bring all stakeholders under one roof. “This is a mega international textile event which will showcase India’s strength in the entire gamut of textile and apparel value chain – from fibre to fashion. 24 round tables by industry associations and councils will be held. Topics of sectoral importance will be discussed. Right from R&D to processing to verticals like wool, silk and MMF will all be discussed. 6 conferences will be chaired by Union ministers where topics on how to take India to the next level of export will be discussed. 4 country sessions will be held” said Babni Lal, Economic Advisor, Union Ministry of Textiles, at a Road Show on Textile India organized by CII in Ranchi today. ISEPC and CTR&TI will co-organize the event. “The key objectives of the Textiles India 2017 are to showcase India’s strength and establish the country as a global sourcing and investment destination,” Babmi Lal said. “It will also bring all sectors such as handicraft, handloom, jute, apparel and fashion under a single roof. This will draw the attention of world leaders and attract foreign buyers and in the process take India textiles on the global map,” she explained. “There will be thematic display of textile and apparel, handicrafts products, dedicated pavilions for startups, skills, R&D, sustainability, best display and design etc. along with fashion shows,” Lal informed to more than 65 stakeholders at the Road Show and press conference. According to the Economic Advisor, from the textile perspective, Jharkhand is extremely important. She went ahead to say that Union Minister Smriti Irani has coined the term Momentum Textile especially for Jharkhand. Sanjay Seth, Chairman Khadi Board mentioned that Jharkhand has the best textile policy in India and it is soon to be the Tasar capital of the world. K Ravi Kumar, IAS Director Industries mentioned that it is time for Jharkhand to increase its reach to the world by attending the Textile India 2017. Partnerships and joint ventures should be explored at the event. He further said that it is time for local industries in Jharkhand to expand their business therefore participation in Textile India 2017 is a great opportunity. Dhirendra Kumar, Jharkhand Khadi Gram Udyog Board advisor and Renu Gopinath Pannicker, CEO Jharcraft were also present.

Source: The Avenue Mail

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Union Textile Minister urges Kerala handloom and textile sector to avail central benefits

THIRUVANANTHAPURAM: Tagged on the theme `from Farm to Fiber and Fabric to Fashion', Textiles India 2017, a first ever International Expo and Mega event to showcase India's strength in the Textile and Apparel Value Chain will be inaugurated by Prime Minister Narendra Modi on June 30, informed Union minister of State for Textiles, Ajay Tamta. The three-day mega event will begin at Mahatma Mandir at Gandhinagar inhere on Friday. Gujarat with international conferences and cultural show. It will have 24 Round table seminars with the participation of global and national leaders of industry, technical experts and senior policy makers from the Union and State Governments, said Union Minister Ajay Tamta. The event will also have an international exhibition at When asked about the Union Ministry's support for crisis-ridden traditional handloom and handicraft industry of Kerala, Minister Ajay Tamta told TOI that as many as five Helipad ground in Gujarat with the participation of almost all states across the country and over 2500 international buyers from 61 countries, he said. MOUs had been signed with handloom sector industries of states including "Textiles Ministry funded the setting up of Common facility Centre equipped with testing facility for raw materials and finished products in Kerala. Even support is offered for online facility for product promotion with subsidised loans from banks," Minister Ajay Tamta said. Kerala for enhanced production and marketing facilities. Further he said, handloom production is enhanced with power looms and for that 50 percent subsidy is offered for general category applicants, 90 percent subsidy for ST and 75 percent subsidy for SC applicants. In addition, 10 percent subsidy is offered in procurement of yarn and solar powered looms are promoted, the Minister said. The Union government has supported the Textile Ministry by setting aside Rs 6000 crore to develop textile sector and to host this expo, he said. "Many creative talents from the handloom and textile sector in Kerala are yet to come forward to avail the supportive schemes of the Union Ministry. Among the States, Kerala is also participating at the international expo from June 30 in Gujarat to showcase its traditional handloom and value-added products," the Minister said. The mega expo is aimed at improving textile market and to enhance the exports of the country. It will be held in Helipad ground in about 1, 25,000 square metres area spread across 13 Halls. Over 1200 exhibitors will showcase their products and services which will have the participation of 11 export promotion councils, 17,000 domestic buyers and over 2500 international buyers from more than 60 countries including USA, UK, Germany and France, Union Textile Ministry officials said.

Latest Comment - the Industries thee are crippled by strike -

Expo will have thematic display of textile and apparel, handicrafts, handloom, jute, pavilion for Start-up's, Skills, R&D Sustainability, best display and design, Fashion Show's, B2B and B2G Meetings, four Country Sessions, six State Sessions and Seminars on ASEAN India and Common Wealth. Interactive conferences will be chaired by seven union ministers on various themes including India as global sourcing and investment destination, productivity challenge for natural fibres, exploring textiles growth potential and skilling needs in high value chain of textile sector. The valedictory session will be addressed by Union Finance Minister Arun Jaitley.

Saranathan Lakshminarasimhan

"Textiles business based on its utility value is 10 times stronger than steel industry. Geotextiles finds its application in roads and construction industry as it offers strength and durability, due to its light weight and durability it finds application in aircraft manufacturing and defence industry," the officials said.

Source: The Times of India

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Textiles India 2017 to boost export: Minister

Thiruvananthapuram : Over 1,300 exhibitors will showcase their products and services at the three-day 'Textiles India 2017 fair' at Gandhinagar in Gujaratfrom June 30 to July 2. More than 2,500 international buyers from 60 countries are expected to attend the event. Addressing a press conference as part of the mega event's road show here, Minister of State for textiles Ajay Tamta said that the objective was to bring the various textile value chain and handicrafts sector into one umbrella for its collective growth. "We expect that the export of both textiles and handicraft products will go up after the event', Tamta said. Another major focus was to establish India as a major global sourcing for textiles and investment destination, he said. Lot of business can be created through the B2B-B2G-G2g meetings, MOU's can be singed for export orders', he said. "This maiden initiative to be inaugurated by Prime Minister Narendra Modi is a collaborative effort of 24 Export Promotion Councils under the Ministry of Textiles and with Confederation of Indian Industry as Industry partner," he said. More than 2,500 international buyers from 60 countries, including 40 from key buyers from USA, UK, Germany and France and 15,000 plus domestic buyers will be attending the show. With an exhibition area of about 1,25,000 square meters spread across 13 Halls, over 1300 plus exhibitors will showcase their products and services. Participating states are Gujarat as host state, Assam and Andhra Pradesh as partner States, Karnataka, Jharkhand, Maharashtra and Telangana as Focus States for Textiles India 2017.

Source: PTI

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Huge scope for textile production in Goa: Irani

Irani said that chief minister Manohar Parrikar and his cabinet colleagues have been invited to the international conference and exhibition on textiles from June 30 to July 2 at Gandhinagar, Gujarat. "Under the textiles ministry, I have been engaging with the chief minister's office. Technical textiles have huge scope in Goa. We have the first ever international conference and exhibition hosted by India, where we have participants from 60 countries, and we can encourage those in the field of technical textiles, which is a sunrise sector to come and invest in Goa," Irani said.

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Goan ministers are all sleeping these days. Outsiders dictating terms for Goans. Examples ; beef eaters should be hanged. A technical textile is a textile product manufactured for non-aesthetic purposes. Currently, technical textile materials are most widely used in filter clothing, furniture, hygiene medicals and construction material. Stating that her ministry is keen on revival of the craft of weaving the Kunbi saree fabric, Irani said, "The curtain raiser of the textile event featured the Kunbi saree in Delhi and we found people even from outside Goa who are making Kunbi sarees. I have just met the art and culture minister and I have appealed to him that if there are people who want to revive it in Goa or outside Goa, the government of India is happy to extend its support, especially for the revival of skills and crafts."

Source: Economic Times

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Yogi Adityanath offers sops for private textile parks in UP

Under the new policy, the government will give 100 per cent stamp duty exemption to those investors who buy 50 acres and above land to develop textile parks in the state. The Yogi Adityanath-led state government in Uttar Pradesh has given the go-ahead to develop private textile parks on expressways and national highways. Approving the draft of the UP Textile, Handicrafts and Sericulture Policy 2017, Chief Minister Yogi Adityanath has directed officials to identify locations on the expressways and national highways, including Lucknow-Kanpur, Kanpur-Allahabad, Chitrakoot-Jhansi-Lalitpur, Varanasi-Allahabad, Delhi-Meerut, Delhi-Moradabad , Bareilly-Moradabad-Bijnore, Meerut-Nazibabad, Gorakhpur-Varanasi and Gorakhpur-Faizabad. "Our aim is to attract FDIs and private investors to boost the textile industry in Uttar Pradesh. Those who are willing to invest in this sector will be given tax and other sops. The government has already made provisions for the same in its draft policy," said the CM. Under the new policy, the government will give 100 per cent stamp duty exemption to those investors who buy 50 acres and above land to develop textile parks in the state. Investors will also get waiver on interest on loans taken for buying land and construction of staff quarters and hostels.

Source: DNA

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GST to be death knell for Surat's Rs 50,000-cr textile industry

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% bracket Dhiraj Shah, managing director of Shalon Industries, is worried he will have to pay a higher goods and services tax (GST) rate on synthetic yarn while the fabric he makes will attract a lower rate. With an annual turnover of Rs 500 crore, Shah’s unit makes synthetic fabric in Surat, Gujarat, and has a 1 per cent share of the city’s Rs 50,000-crore textiles business. Shah has two problems. He will collect 5 per cent GST from his buyer and pay 18 per cent duty on raw yarn. Also, his finished goods will face competition from cheap, imported fabric, which will attract an import duty of 15 per cent. At present, there is no excise duty on fabrics. Surat produces 40 million metres of fabric every day, 20 per cent in composite mills that do all the value addition in-house. For these units, the accumulated duty credit and the additional working capital cost will be around 3 per cent.  The other 80 per cent of Surat’s fabric is made in powerlooms and shuttle-less looms, which face an even bigger disadvantage post-GST.  “After GST, we will have to pay 18 per cent duty on yarn and another 18 per cent for job work of twisting and weaving. This will result in our costs going up by about 10 per cent," said Ashish Gujarati of the Aditya group, which has 150 powerlooms in Surat. “Post-GST, imports of fabrics from China will cause severe damage to Indian fabric makers. The Indian weaving industry, especially the man-made fibre knitting and weaving units in Surat, Bhiwandi and Ludhiana, are already reeling under pressure and cheap imports from China will only add to their woes," said Sri Narain Aggarwal, chairman of the Synthetic and Rayon Textiles Export Promotion Council. He explained the current taxes on imports of fabrics were 26.5 per cent: 10 per cent import duty, 12.5 countervailing duty and 4 per cent special additional duty. After the GST, imports will attract a tax of 15 per cent and as a result, imported fabric will become 11 per cent cheaper.  Cotton textile makers will not be affected because the GST rate on both yarn and fabric is 5 per cent. At present, most imports are from China, and it may make sense for countries like Bangladesh, Sri Lanka and Vietnam to start exporting fabric to India. Annual fabric imports stood at $700 million, or Rs 4,500 crore, which the trade expects will rise manifold. Aggarwal suggested that fabric imports be allowed only to actual users and CVD should be replaced with 23 per cent duty. Surat’s textile industry employs 1 million people, has 150 wholesale textile markets, 50,000 wholesale traders and 20,000 manufacturers, including powerloom owners. The powerloom industry is fragmented with 2.7 million units employing 6.5 million workers in manufacturing hubs in Surat, Bhiwandi, Ichalkaranji, Malegaon, Tirupur and Coimbatore. Surat accounts for a quarter of the country’s total powerlooms. Another issue will be that of selling synthetic yarn blended with cotton. Aggarwal’s said since cotton yarn would attract a 5 per cent GST rate and synthetic yarn 18 per cent, blended yarn with high polyester content could be sold as cotton yarn. Aggarwal suggested a 12 per cent GST rate for blended yarn.

Source: Business Standard

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Meghalaya to seek GST exemption for textiles

SHILLONG: Meghalaya will seek exemption for textiles from GST in the meeting of the GST council scheduled to be held in Delhi on Sunday. Taxation Minister Zenith Sangma, who will attend the GST meet, said on Thursday that currently 12 per cent tax is imposed on textiles and Meghalaya, with the support of other northeastern states, will seek exemption. Sangma said the GST council should exempt hand-woven fabric from the purview of GST as a large number of people in the North East depend on textiles for their livelihood. “The Centre can impose tax on specially designed fabrics, but the hand-woven textiles should be exempted from GST,” he said. Sangma said Meghalaya will also seek reduction of tax on products of soft wood as the current tax is 28 per cent.

Source: The Shillong Times

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MoS allays fears on GST

Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal today sought to allay the fears of traders on implementation of the Goods and Services Tax. He was participating in a conference organised by the Institute of Cost Accountants of India here. The issues raised by the textile and automobile industry would be discussed during the next round of GST Council scheduled to be held on July 18, he said. On steps taken to provide GST in rural areas, he said GST Suvidha Providers would be set up in those areas which lack basic infrastructure. GST Suvidha Providers are set up to provide convenient mode to taxpayers and other stakeholders. The Suvidha Provider are selected by GST Network.

Source: Business Standard

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Mumbai cloth shops to be shut

Cloth merchants in Mumbai have decided to keep their shops shut for a day on June 16 to oppose the Centre’s move of bringing the textile industry under the Goods and Service Tax. Sixteen associations of cloth merchants from the city and outskirts have formed a Joint Action Committee of Textile Traders Association and decided not to seek GST registration. Bharat Merchants Chamber, a leading body of textile merchants in the city, says bringing the industry under the GST would hit it badly. It further says GST has been imposed on the textile industry by way of bypassing the existing laws. The group says the industry is very unorganised and mostly uneducated or poorly educated people are engaged in over 45 lakh looms across the country. Around ten crore people are directly or indirectly involved in the industry. If the GST were to be imposed on the textile industry, it would affect these ten crore people. So it wants the government to do away with its decision to cover the industry under GST. Textile traders refuse to seek GST registration as the textile industry has always been exempt from any tax under the provisions of the Essential Commodities Act 1957.

Source: Fashion United

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Rupee recovers 10 paise to 64.43 on robust exports data

The rupee today staged a mild recovery after yesterday's plunge and closed higher by 10 paise at 64.43 against the US dollar, taking cues from encouraging export numbers for May. The domestic currency had plunged by 23 paise to over 2-week low of 64.53 a dollar yesterday after the US Federal Reserve hiked rate by 25 bps as widely expected and maintained a hawkish tone going forward. Heavy capital outflows alongside near-term consequences of the Federal Reserve rate hike largely kept forex market undertone shaky in early trade even today. Though, the home currency made a strong comeback in late afternoon trade after the dollar gave up its strong gains against major global currencies, bolstering Asian currencies. The rupee resumed sharply lower at 64.65 from overnight closing level of 64.53 at the Interbank Foreign Exchange (forex) market due to strong dollar demand amid volatile currency market sentiment. It drifted further to hit an intra-day low of 64.74 in mid-morning trade and largely traded range-bound within quiet trading conditions. However, staging a rebound from initial slide, the rupee touched a fresh high of 64.40 in fag-end trade before ending the day at 64.43, showing a gain of 10 paise, or 0.15 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 64.5883 and for the euro at 72.0482. Giving a boost to forex trade, the official data showed country's exports rising by 8.32 per cent to USD 24 billion in May, though the trade deficit too widened to touch nearly 30- month high of USD 13.84 billion, mainly due to increase in gold imports. India's imports too increased by 33 per cent to USD 37.85 billion in May this year. The domestic equities, despite a strong start, endured yet another sluggish session today on the back of heavy profit-taking in healthcare and technology counters after recent strong rally amid lack of supportive cues. After witnessing extreme volatility in late trade, key benchmark indices settled on a mixed note. Foreign funds and investors sold shares worth of net Rs 645.35 crore yesterday, as per the provisional figures. On the global front, the dollar slipped lower against other major currencies, pulling away from a recent two-week high as investors were preparing for a fresh batch of US data due later in the day, after strong economic reports boosted US optimism. The dollar index, which tracks the US currency against a basket of six major rivals, was down by 0.21 per cent at 97.29. Meanwhile, the Bank of Japan held monetary policy steady in its June board review. In cross-currency trades, the rupee bounced back against the pound sterling to settle at 82.28 from 82.40 per pound and maintained strong momentum against the euro to finish higher at 71.99 from 72.00. It also recouped against the Japanese Yen to close at 57.85 per 100 yens from 58.64 earlier. In forward market today, premium for dollar displayed a lacklustre trend owing to lack of market moving factors. The benchmark six-month premium payable in November was quoted unchanged at 134-136 paise, while the far forward May 2018 contract edged higher to 280-282 paise from 279-281 paise yesterday. On the international commodity front, crude oil prices regained some lost ground from 2017 lows on Friday but an ongoing supply excess put them on track for their fourth consecutive week of losses despite OPEC-led production cuts to support the crude market. The brent crude futures were up 42 cents at USD 47.34 per barrel in early Asian trade.

Source: Financial Express

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Global Crude oil price of Indian Basket was US$ 45.60 per bbl on 15.06.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 45.60 per barrel (bbl) on 15.06.2017. This was lower than the price of US$ 46.48 per bbl on previous publishing day of 14.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 2931.34 per bbl on 15.06.2017 as compared to Rs. 2989.06 per bbl on 14.06.2017. Rupee closed stronger at Rs. 64.28 per US$ on 15.06.2017 as compared to Rs. 64.31 per US$ on 14.06.2017. The table below gives details in this regard:

 Particulars    

Unit

Price on June 15, 2017 Previous trading day i.e. 14.06.2017)                              

Crude Oil (Indian Basket)

($/bbl)

             45.60                (46.48)

(Rs/bbl)

            2931.34           (2989.06)

Exchange Rate

  (Rs/$)

             64.28                (64.31)

Source: PIB

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Vidarbha farmers avoiding tur, betting on cotton

Nagpur: Left disappointed with poor rate fetched by the tur crop, Vidarbha farmers are once again betting high on cotton. According to initial reports of sowing trends, cotton-growing area is expected to increase bringing down area where tur will be grown. Traditionally, cotton has been the mainstream crop of Vidarbha and is also linked with the agrarian crisis here. Experts fear higher dependence on cotton will make the region's farmer vulnerable. Reducing tur production can once again bring the availability to moderate levels. There are chances that tur may be costly again next year. There was a major shift to tur in the last two years after rates of the commodity touched Rs200 a kg in retail market. The area under this pulses went up substantially for the Kharif season of 2016-17 with farmers hoping to once again a handsome price. However, it led to a glut with tur being sold even less than the minimum support price (MSP) of Rs5,050. Farmers are not happy with the pace of procurement at government's MSP centres. Traders say sale of tur seeds are back to the pre-2015 level. According to sources in the agriculture department, initial trends show that tur will come back to its inter-crop status — grown between two lines of cotton or soyabean. Final figures will be compiled by the agriculture department only by July end. Analysts say cotton got a price of Rs5,500 a quintal as against close to MSP of Rs4,000 in earlier years. Last year's trends have prompted farmers to go for cotton. "However, this can be a risky proposition as cotton rates are subject to manipulation by market forces," say experts. "An increase in area under cotton is not desirable. Indian Council for Agriculture Research (ICAR), has already warned about resistance developed by bollworm to genetically modified Bt cotton. After pink bollworm, the crop may be susceptible to other varieties of the pest, which hits the output," said Kishore Tiwari, the director of Vasantrao Naik Shetkari Swavalamban Mission (VNSSM). The area under soyabean is also being replaced with cotton as the crop did not fetch a good price last year. "Farmers in areas like Buldhana and Washim districts, which predominantly grow soyabean, have increased the area under cotton," said Tiwari. Sharad Chandak, of Nagpur Agro Dealers' Association, said when compared to last year the sale of tur seeds has reduced by 40%. " At the same time, there is a fall in sale of cotton seeds too but that does not mean that the area under cultivation has come down. There are reports of rampant business going on in the grey market. Round-up resistant, a genetically modified cotton seed, which has not been approved by the government so far is being sold unofficially. The seed is resistant to weed killers," said Chandak. Roshan Kothari, a dealer in Wani tehsil of Yavatmal district, reported a reduction of 25% in the sale of tur seeds in the region. "It may be too early to get the exact figures, but initial reports say the sale of tur seeds is down as compared to the previous year. This also means that it can be back to the normal level maintained a couple of years ago. The supply too will come down but only as compared to the last two seasons. The increased production had led to a surplus availability of the commodity," said Madhav Shembheker, the managing director of Ankur Seeds. "I am not sowing tur even in a single acre of land this year. Last year's stock itself has not been sold entirely yet," said Nitin Khadse of Jalka village in Yavatmal district. "The area under tur has come down substantially, as farmers have been left discouraged with last year's situation," said Vijay Ingole, a farmer in Achalpur Tehsil of Amravati district.

Source: The Times of India

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Global Textile Raw Material Price 2017-06-15

Item

Price

Unit

Fluctuation

Date

PSF

1116.28

USD/Ton

0.13%

6/15/2017

VSF

2185.47

USD/Ton

0.34%

6/15/2017

ASF

2251.70

USD/Ton

-3.16%

6/15/2017

Polyester POY

1136.15

USD/Ton

0%

6/15/2017

Nylon FDY

2678.49

USD/Ton

0.55%

6/15/2017

40D Spandex

5224.54

USD/Ton

0%

6/15/2017

Polyester DTY

1398.12

USD/Ton

0.53%

6/15/2017

Nylon POY

2840.38

USD/Ton

0%

6/15/2017

Acrylic Top 3D

5827.93

USD/Ton

0%

6/15/2017

Polyester FDY

1376.04

USD/Ton

1.08%

6/15/2017

Nylon DTY

2516.61

USD/Ton

0.59%

6/15/2017

Viscose Long Filament

2413.59

USD/Ton

-3.53%

6/15/2017

30S Spun Rayon Yarn

2855.10

USD/Ton

0.52%

6/15/2017

32S Polyester Yarn

1692.46

USD/Ton

0.44%

6/15/2017

45S T/C Yarn

2707.93

USD/Ton

0%

6/15/2017

40S Rayon Yarn

1839.63

USD/Ton

0%

6/15/2017

T/R Yarn 65/35 32S

2281.14

USD/Ton

0%

6/15/2017

45S Polyester Yarn

2987.55

USD/Ton

0%

6/15/2017

T/C Yarn 65/35 32S

2310.57

USD/Ton

0%

6/15/2017

10S Denim Fabric

1.37

USD/Meter

0%

6/15/2017

32S Twill Fabric

0.86

USD/Meter

0%

6/15/2017

40S Combed Poplin

1.19

USD/Meter

0%

6/15/2017

30S Rayon Fabric

0.66

USD/Meter

0%

6/15/2017

45S T/C Fabric

0.67

USD/Meter

0%

6/15/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14717 USD dtd. 15/06/2017). 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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PHMA appreciates sales tax cut in raw material supplies

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has appreciated Pakistan government's move to lower sales tax on raw material supplies to 1 per cent for 5 export sectors. This was announced during final approval of budgetary proposals for 2017-18 by the National Assembly. However, the government is yet to release exporters' claims. Earlier this year, an incentive package worth Rs 180 billion was approved by Pakistan prime minister Nawaz Sharif for exports. Under this package, the government has approved for sanction of Rs 4 billion against the total claim of over Rs 24 billion, said PHMA chairman Adil Butt, according to Pakistan media reports. “When reservation was raised during the sixth meeting of the Federal Textile Board last week, Finance Division officials assured the textile exporters that funds would be released for duty drawback from allocations under federal budgets as well as supplementary grants based upon the claims submitted in the State Bank of Pakistan," said Butt. Further, the exporters are yet to receive their drawback of Local Taxes and Levies which is outstanding since many years. Butt has requested the government to revive the value-added textile industry and return the claims to the exporters. With insufficient finance, it has become difficult for the value-added textile exporters to compete in the global marker with other countries, he stated.

Source: Fibre2Fashion

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4,000 Tons of Cotton Imported Into Iran

More than 4,000 tons of uncarded and uncombed cotton worth 270 billion rials (over $7.2 million) were imported during the first month of the current fiscal year (March 21-April 20), according to the Islamic Republic of Iran Customs Administration. The imports were from the United Arab Emirates, Turkey, Uzbekistan and Tajikistan, Mizan Online News Agency, affiliated to the judiciary, reported. Managing director of Iran Cotton Fund, Mohammad Hossein Kaviani had earlier said domestic cotton production stood at close to 40,000 tons in the last fiscal year that ended in March 2017. "Our textile industries' need is between 90,000 and 100,000 tons per year. Local production is not sufficient to meet domestic demand. We need to import at least 50,000 tons annually," he said.

Source: Financial Tribune

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Bangladesh : Fresh VAT burden on weavers

Thirty years ago, Nilkamal Basak began weaving the much-coveted Tangail sari to take his family profession forward. He didn't have to pay VAT until the revenue officials last year asked him and his colleagues in Pathrail, Tangail to pay a fixed amount as package VAT against sales of saris. The weavers paid it to avoid any unnecessary hassle. However, they are now confronting a new reality. A flat 15 percent VAT is going to be slapped on their products once the VAT and Supplementary Duty Act, 2012 comes into effect from July 1.

This is not the end.

Local fashion boutiques, the main promoters and sellers of handloom clothes, are also going to be under the purview of 15 percent VAT from the beginning of next month, up from 4 percent. For Nilkamal, this is not good news at a time when the weavers are under pressure from falling demand for sari and influx of Indian saris through legal and illegal channels. The demand for saris is on the wane as more women prefer to wear salwar-kameez. “Prices of saris will rise if 15 percent VAT is slapped on weavers. This would only compound our misery,” said Nilkamal over phone. Also, other handloom fabrics such as lungi and napkin known as gamchha are likely to get pricier due to the introduction of the new VAT system. The 49-year-old weaver said many handlooms became inoperative over the recent years due to falling demand for handmade saris which faced stiff competition from machine-made cheap clothes. He feared the government's latest decision would force many more weavers to quit their profession. “Why will people buy our saris at higher prices when better finished clothes are available at cheap rates? Where will the century-old handloom sector head for?” he questioned.

FASHION HOUSES TO BE HIT

Weaver Alimuzzaman Ripon of Narayanganj and operators of some local fashion houses are worried that imposition of 15 percent VAT will increase prices of locally weaved clothes and reduce the sale. However, the National Board of Revenue (NBR) claims that prices will not go up as businesses involved in the supply chain will get input tax credit which is difficult to get under the existing VAT Act, 1991. To claim the rebate, weavers and firms will have to obtain a Business Identification Number (BIN) online, keep records of their purchases and file returns with the NBR regularly, said revenue officials. Traders, however, said getting the tax rebate would be tough for small and medium businesses and marginal producers like weavers who work in an informal manner in the rural and suburban areas of some districts, including Tangail, Sirajganj and Narsingdi. Nilkamal said it would be difficult for most of the little educated weavers in his locality to maintain records and accounts properly to claim the rebate. He feared this might cause harassment to weavers and create panic. He said weavers usually buy yarn from small sellers who don't have VAT registration. So they will not get VAT invoices. “I don't understand rebate. I'm a weaver and it is my hereditary profession. I know about yarn and colour. Governments in other countries patronise and nurture traditional products. But here we see attempts being made to destroy those,” said an emotional Nilkamal. Weavers said their fabrics and clothes would face an increased competition from imported clothes as importers would get a rebate for having a VAT registration. Azharul Hoque Azad, president of Fashion Entrepreneurs Association of Bangladesh, said imposition of 15 percent VAT would fuel prices of locally weaved clothes and affect the sector that grew over the last two decades. The sector grew due to opening of many new local fashion houses and demands from a section of middle income families. Azharul, also the owner of fashion outlet Sadakalo, said most of the suppliers of local fashion houses are weavers who don't have VAT registration and usually don't keep records. “So, we won't be able to claim rebates. Ultimately, the burden of the additional VAT will fall on the buyers. Customers will lose interest in buying local clothes.” Alimuzzman Ripon, owner of 60 power looms and 40 handlooms, said many weavers would be in trouble if the demand for handloom products plummets. He said weavers don't have work throughout the year. Raghunath Basak, a weaver and wholesaler of sari and other fabrics in Tangail, said a section of customers will pick Indian clothes as the local products would get costlier due to imposition of 15 percent VAT. “This will further affect the local handloom sector. Weavers are already facing a tough competition from traders of Indian saris and fabrics,” he told The Daily Star. He said weavers and people in the value chain of locally made clothes would be benefited if the prices remain low and competitive. Soumik Das of Rang Bangladesh said the government should focus on widening the VAT net instead of imposing a flat 15 percent across the board simultaneously. Ashraful Alam, chief operating officer of the country's largest fashion house Aarong, said there might be some impact on the prices of retail branded garments with the imposition of 15 percent VAT. He said his company was working to evaluate the probable price impact. Talking to this correspondent on condition of anonymity, two NBR officials said any rise in prices of handloom products would affect weavers unless they get rebates. Azharul urged the government to keep handloom products out of the purview of 15 percent VAT to help the tradition continue. He said the government exempted 1,043 items from VAT. “It will not be a big loss for the state if handloom products are kept VAT free.”

Source: The Daily Star

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Mimaki Europe makes joint venture with Italian firm Bompan

Mimaki Europe, developer of wide-format inkjet printers and cutting machines, has announced at the Board of Directors meeting on June 13, 2017, that a consolidated subsidiary of the company resolved to establish a joint venture company with Italian firm Bompan S.r.l, the exclusive Italian partner of Mimaki Europe for print & cut equipment sales. Mimaki group recognises that it is essential to encourage the expansion of digital printing in the textile and apparel market (hereinafter referred to as the “TA market”) for sustainable growth in the future. To do so, it is necessary to rebuild the regional sales network and service structure of the TA market. The establishment of this joint venture company is part of this. The joint venture partner Bompan is a leading distributor in Italy, and has established a strong relationship of trust with Mimaki through a business relationship over many years. The joint venture company with Bompan will expand sales of products for the TA market primarily in EU member countries. With the newly established joint venture company, Mimaki will offer total solutions, including pre-processing to post-processing, as a specialised group dedicated to the TA market, and will promote digitalisation of the TA market. The majority of the capital structure of the joint venture company (51.0 per cent) and the majority of the directors, including the president, will be maintained by Mimaki.

Source: Fibre2Fashion

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Kingbird launches high tenacity polyester yarns

Kingbird, a global leader in manufacturing yarns and threads in China, has introduced high tenacity polyester yarns in the North American and European Markets. These are multifilament polyester sewing threads manufactured from the best quality raw material to guarantee stable and high speed stitching and are meant for knitting, weaving and braiding. "All our clients in North America and Europe can now access our super low shrinkage, low shrinkage and normal shrinkage, high tenacity polyester yarns," said Jessica Lee, Kingbird's product manager. "Kingbird's high tenacity polyester yarn is popular for its toughness, exemplary chemical resistance and durability, hence, suitable for functional and technical applications. We are glad to be among the few companies that export world class high tenacity yarns that conform to the ATC, BSCI, Oeko-Tex Standard 100 and SGS requirements," Lee said. The high tenacity polyester yarns are the result of years of research and development and many tests. Kingbird diners vary from 210 to 4000 den. Clients can therefore order for these polyester yarns depending on their unique requirements. Kingbird has incorporated high manufacturing techniques to produce these yarns which are popular for low elongation, unmatched toughness, durability and abrasion resistance. They come in twisted, intermingled or multi-compact options, depending on the intended application. Kingbird high tenacity polyester is a multi-filament yarn with the number of filaments varying from 24 to over 192. The filament cross-section has about five to seven vertices, tenacity of 60 to 80cN/Tex and a titer between one and seven. Kingbird technical team can change these to meet specific needs. Hot air shrinkage for these yearns varies between four and 10 per cent, while stretch recovery is about 250 to 400cN/Tex. With the high-tech manufacturing capability, Kingbird has unlimited options of high tenacity polyester yarns with high strength, durability and great foldability. Some practical applications for these high tenacity polyester yarns include making special footwear, furniture, luggage and many outdoor products.

Source: Fibre2Fashion

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