Mumbai: Apparel makers and wholesalers say the implementation of the goods and services tax has brought business to a standstill as their unregistered suppliers and customers try to stay out of the ambit of the new tax regime. “There are about 25% of dealers who don’t pay tax at all,” said Suresh Chhatwani, owner of Mumbai-based Surkan International which makes, supplies and exports readymade women’s garments. About “10-20% of my business comes from unregistered dealers, who only want to deal in cash. What happens to my business if they refuse to comply with GST?” According to Chhatwani, while high end, branded apparel makers will benefit from the 28% tax rate, prices of small, local apparel brands will rise as implementation of GST will erode their thin margins. Wholesalers in the apparel business usually earn around 10-15% margin, he said. “These people (unregistered dealers) do not even have an agreement on the houses they live in, no ration card, no sales tax numbers, what will they do with GST?” said another distributor and supplier of women’s readymade garments from Mumbai who did not want to be named. “Officially, these dealers are making a lot more than Rs20 lakh a year (the turnover limit under which a business need not register for GST),” the distributor said, adding that he expects supplies from such dealers to be disrupted for another month to a month-and-a-half. It is not just suppliers, some small garments shops, too, are unwilling to make non-cash payments for stocks. “If customers are not wanting to pay in cash or register, then there is a problem,” said Arnav Goyal, owner of Kanha Fashion that makes and supplies women’s wear to retail outlets. “Customers are unwilling to buy (stock) in the market right now.” Businesses in the industry have been splitting their holdings so that each is under the Rs20 lakh turnover limit, said another distributor who did not want to be named. “There are a number of factors that are at play,” said Anita Rastogi, indirect tax partner at tax advisory firm PwC. “One is ignorance on how the GST works; the second is that these businesses are very cash dependent; it is hard to convince them to move on from cash. Also, there are unfounded rumours in the market that there are 37 returns to file,” she said, adding that rather than three returns a month, the GSTR-1, 2 and 3 were parts of the same monthly tax return to be filled at three different times of the month. The unorganized sector makes up about 85% of the total Indian retail market, according to a January 2016 report by India Brand Equity Foundation, and is expected to reach 87% by 2019. Of women’s apparel, the fastest growing apparel segment in India, only 11% is made up by the branded market, as per a June 2017 report by Avendus Capital.
Source: Livemint
Chennai: Tamil Nadu’s textile cluster, which includes Coimbatore, Erode, Tirupur, Salem, Namakkal and Karur, is upset over the goods and services tax (GST) rates imposed on textile manufacturers, including job workers, who were so far exempted from any form of tax. While the principal manufacturers are to pay GST at 18%, job workers will have to pay 5%. Job workers produce goods on behalf of principal manufacturers using raw materials supplied by them. The GST Council had initially placed an 18% tax on job work too before reducing it to 5% following protests. The Erode Handloom Cloth Merchants Association, which is again appealing to finance minister Arun Jaitley to withdraw the 5% GST rate on textiles, is planning an indefinite strike from Wednesday if its demand is not accepted. P. Eswarmoorthy, secretary of the Chennimalai Powerloom Association, said the power loom sector will be badly hit by GST. Chennimalai, in Erode district, is a handloom and power loom hub, employing over 15,000 people. Erode district has more than 300,000 people directly or indirectly engaged in the sector. “The power loom sector at Chennimalai is more of a cottage industry and more than 80% of the products are sold in weekly shandies,” said Eswarmoorthy. “The government should have at least streamlined the process in a phase-by-phase manner before implementing it. This sector is already struggling and for something that remains as an unorganized sector, the GST taxation procedure is too complicated,” Eswarmoorthy said, pointing out that the textile industry is the second largest employer in India, after agriculture. Tirupur, a knitwear and hosiery hub that earned Rs.25,000 crore through exports and posted domestic revenue of Rs12,000 crore in 2016–17, is dependent on job works at various levels of garment manufacturing for more than 80% of its production. The industry is still trying to break even after demonetisation and the hurried implementation of GST without any preparedness has made things worse, said an industrialist from Karur, which is a hub for home furnishing textiles. He spoke on condition of anonymity. Tamil Nadu accounts for one-third of the textile business in the country. The power loom sector in Tamil Nadu provides employment to around 914,000 workers, and there are over 1,800 textile and spinning mills located in the state, according to the Tamil Nadu government. The Southern India Mills Association had expressed disappointment to the centre for not considering its demand of reducing the GST rate of 18% on man-made fibre and that on blended spun yarn to 12%. Some industrialists also said that since Tamil Nadu had been opposing GST for a long time, the state government was not prepared for its roll-out. Recently, leader of the opposition and working president of Dravida Munnetra Kazhagam (DMK) M.K. Stalin blamed the state government for not having created awareness among traders, which has led to protests against the GST in the textile, fire crackers, entertainment and other industries. The textile industry in Tamil Nadu, which had joined the other states on a three-day strike against GST rates, also demanded that the state government remove certain municipal taxes, which will be a burden in addition to GST. The tax on the job works will mean a huge burden on micro, small and medium enterprises, or MSMEs, which form a huge chunk of the state’s substantial textiles sector. Job workers, who are the core of the industry and are largely part of the unorganized sector, have been brought into the tax net for the first time, a move that would hurt the sector, say industry stakeholders.
Source: Livemint
“Is service charge in restaurants included in the Goods and Services Tax?” “What tax has been fixed on vegetables?” “Can we continue to use credit cards for payments or will banks charge GST on it?” “Can I continue my business even though I have not received the final GSTN registration?” These are some of the queries that the Finance Ministry and State government officials have been trying to respond to over the last few days following the rollout of the Goods and Services Tax. While some are genuine queries by common people and businesses concerned about how the new levy will impact their lives, social media like Twitter, Facebook and WhatsApp too has been flooded with questions, jokes and rumours about GST. “Like it was seen at the time of demonetisation, even now there are new rumours floating everyday about GST. Keeping these under control has been key to ensure the smooth roll out of the tax,” said a senior government official. Sources said that the issue of creating more awareness on the new tax was also flagged at the review meeting called by Cabinet Secretary PK Sinha on Monday.
‘Disability tax’
On Tuesday, the Finance Ministry again refuted concernabout a “disability tax” or that assistive devices and rehabilitation aids for physically challenged persons have become more expensive under GST. “The five concessional GST rate on such devices and equipment will result in a win-win situation for both the users of such devices, the disabled persons, as well as the domestic manufacturers of such goods,” it said, adding that the prices of such equipment will also decrease,” it said in a statement. Late on Monday evening too, it denied rumours that GST was being levied on temple trusts while churches and mosques were exempt. “This is completely untrue because no distinction is made in the GST law on any provision based on religion,” it said, urging people not to circulate rumours on social media. Earlier, Revenue Secretary Hasmukh Adhia also busted seven misconceptions regarding GST. Officials said that as part of their outreach programme, the Central Board of Excise and Customs and State tax officials have also been creating awareness about GST. “It is not only businesses and companies that have queries but many individuals have also been posting comments as they are worried about higher prices,” said an official. To dispel myths about inflation under GST, the government has also released the new tax incidence on items of common use such as groceries, hair oil, toothpaste and LPG stoves. Till now, CBEC has also conducted over 4,800 awareness programmes on GST across the country. Private agencies and firms such as the Confederation of All India Traders and Tally Solutions have also been conducting such camps.
Source: Business Line
Two state governments, Maharashtra and Tamil Nadu, have started imposing taxes outside the national goods and services tax (GST), something the Centre says they can do. The Centre says states may impose mandi (wholesale markets) tax and vehicle registration fee, besides raising entertainment tax beyond the GST rate. On Tuesday, the Maharashtra cabinet decided to raise the one-time registration fee on private two-wheel and four-wheel vehicles by two percentage points, for new ones registered in the state. This is to compensate for a combined revenue loss of Rs 600-700 crore annually that it will lose on local body taxes and octroi after GST implementation. The increase is across vehicle categories. It has, however, capped the tax for imported cars at Rs 20 lakh, as against the earlier charge of 20 per cent of the total car cost. A report by news agency PTI stated the tax on two-wheelers and three-wheelers had been raised from the existing 8-10 per cent to 10-12 per cent; for petrol-driven cars, from 9-11 per cent to 11-13 per cent; for diesel-run cars, from 11-13 per cent to 13-15 per cent; for CNG/LPG cars, from 5-7 per cent to 7-9 per cent. Tamil Nadu has announced it will levy a 30 per cent state entertainment tax over and above the GST rate of 28 per cent on theatres. The double taxation will make tickets in Tamil Nadu more expensive than in neighbouring states. Theatre owners said they could not do business if they have to pay 58 per cent tax on a Rs 100 ticket and would have to close. For years, movie tickets in Tamil Nadu have had a cap of Rs 120. Meanwhile, in Delhi, Union revenue secretary Hasmukh Adhia said states were well within their rights to increase vehicle registration fees, entertainment tax and stamp duty. What was barred was any entry tax on goods movement. "How proper or improper it is (states increasing fees and taxes) is not for the Centre to judge," said Adhia. Octroi, he said, now subsumed in GST, was big income for Maharashtra. On the Tamil Nadu move: "The Constitution gives powers to state governments to impose additional tax in certain categories." After objections from some state governments, the GST Council had earlier decided on two rates for cinema tickets. Those costing up to Rs 100 now draw 18 per cent GST; those over Rs 100 attract 28 per cent. Since local body taxes will be subsumed under GST, states will be free to impose an additional tax over 28 per cent on entertainment to fund state local bodies, the Council had decided. Cinema is the only category where such a carving has been created by way of law.
Source: Business Standard
Textile merchants of Surat and Ahmedabad are set to prolong their ongoing agitation against implementation of the goods and services tax (GST). Traders are sticking to their demand for exemption for the industry for at least one year to understand and implement the new rules. Over 80,000 merchants of Surat have refused to open their shops since the last three days and are threatening to keep their shutters down indefinitely if the government does not consider their demand. Nearly 30,000 merchants from Ahmedabad too have joined the protest from Tuesday. “Process of GST is too tedious for small merchants. We need some time to understand it and we are only demanding one year for that. The governments of Japan and Germany had given exemptions to facilitate implementation. Then, why our government is not considering our demand? Traders are not against the law,” said Tarachand Kasat, president of Vyapari Sangarsh Samiti (VSS). It may be mentioned that the ongoing strike in Surat had taken a turn for the worse on Monday when police resorted to lathi charge on thousands of traders who had gathered in the heart of the city in a bid to force them to reopen their establishments. Kasat said, “it is difficult to say that how long we will continue our protest but merchants are not happy with government’s attitude. They are small traders and want some time to understand the new things. Textile industry is the second-largest employer in India after agriculture, and the government is not even listening to our demand.” However, the agitation is peaceful in Ahmedabad so far. Textile traders assembled in the main cloths market in Ahmedabad and chanted slogans against the GST. The merchant associations also met the Gujarat chief minister Vijay Rupani, deputy chief minister Nitin Patel and officials of GST council to represent their demand. Gaurang Bhagat, president of Maskati Cloths Merchants Association, said, “We have met the state government to do the needful in our demand but so far our experience is disappointing.” Textile traders in Ahmedabad are planning to review the situation on Wednesday before deciding their future course of action. The association is preparing a fresh representation to the Union government.
Source: Financial Express
India's cotton production will recover more than had been expected, with relatively high prices of the fibre boosting its appeal to growers – but the impact will be felt in terms of reduced import ideas than a boost to exports. The US Department of Agriculture's New Delhi bureau raised to a three-year high of 29.0m bales its forecast for 2017-18 cotton output in India, the top producer of the fibre. The upgrade took the figure 1.0m bales above the USDA's official forecast, and a little ahead too of a 6.29m-tonne (28.9m-bale) estimate from Cotlook, which the group restated on Friday. The bureau said its revised estimate followed farmer interviews which revealed a "strong preference" for growing cotton, given higher profitability prospects compared with alternative crops such as pulses.
Cotton vs chickpeas
Although India's government has raised the minimum support prices for oilseeds by 6% and pulses by 8%, ahead of the improvement of 4% for cotton, farmers are "still likely to receive higher returns" from the fibre, and expected to raise sowings, the bureau said. Farmers' preference for cotton also follows a bad experience from 2016-17, when government efforts to boost pulse and oilseeds output through raised minimum support prices turned sour. "The market was unable to absorb the production which led to a fall in prices below the minimum support price along with reports of limited government procurement. "This year, farmers across various states have shifted area from pulses, soybeans, and groundnuts to cotton." As an extra support to Indian cotton output prospects, the country has enjoyed an improved monsoon. "With the timely onset of the monsoon and prospects for normal rainfall, yields are expected to be higher in most of the cotton growing states."
'More expensive, less competitive'
However, the raised output will not be reflected in increased export prospects for India, which vies with Australia for second rank in world shipments, behind the US. A 5% rise in the rupee against the dollar since January has made India's cotton "more expensive and less competitive in the international market", the bureau said, noting that exports of cotton yarn had already "slowed down considerably". Shipments may also suffer temporary hiccups from the introduction at the start of this month of a new goods and services tax regime. "There may be some execution delays that create short-term disruptions for exports in 2017-18."
Import slowdown
Instead, the bureau forecast the extra supplies being evident in reduced import needs, as the boost to output, from an estimated 27.0m bales in 2016-17, weighs on prices and prompts Indian mills to focus more on domestic supplies. The bureau forecast Indian cotton imports next season at 1.50m bales, 250,000 bales below the USDA's official estimate. "Still, there are a number of mills that will continue to import specific cotton grades for their export commitments." This season, mills have been importing in particular "Australian and American cotton due to price parity while getting minimal contamination, higher yarn realisation, and better quality product compared to the domestic crop".
Source: Agrimoney.com
MUMBAI: Genetically modified or Bt cotton is no longer resistant to pink bollworm - a major pest in Mahahrashtra, prompting the state government to write to the Union government to seek its intervention. A research report by Dr K R Kranthi, former director of Central Institute of Cotton Research (CICR), shows that pink bollworm has developed resistance to Bollgard-II Bt cotton not only in Maharashtra but other cotton-growing states as well. Bollgard-II is the Bt hybrid variety that was introduced in 2010. "There are only two benefits of Bt cotton. One, it controls bollworm, due to which the yield is protected. Two, it reduces use of insecticides meant for bollworm control. Currently, cotton growers do not get either benefit," Dr Kranthi told TOI via email. Bijay Kumar, principal secretary, agriculture department, said, "There are nearly 85 private Bt cotton seed-producing companies in the state and we have been getting several complaints of crop failure from farmers. In most cases, we cannot do much to help affected farmers. We want the Central government to come up with a clear set of guildelines for us in this situation." The issue assumes significance given that Maharashtra is the largest cotton-growing state in the country. Nearly 40 lakh hectares or 35% of the cultivatable area is under cotton production. Nearly 96% cotton-growing farmers in the state use BG-II Bt cotton seeds for cultivation. Last year, nearly 90% of cotton farms in Jalna were affected and farmers had approached the state government seeking compensation for the losses they had incurred. It could not do much, though. The state government has found itself in a tight spot and asked the Union government to denotify Bt cotton seed varieties prone to pink bollworm. The government also wants the Centre to undertake an awareness campaign across the state on failed resistance of the Bt variety to pests so that farmers can make an informed choice. Half of the crop in the state comes from Vidarbha and the rest from Khandesh and Marathwada. Pink bollworm is a small, thin, gray moth with fringed wings-the most damaging of all pests that attack cotton crop in the country. The female moth lays eggs on cotton balls and larvae emerge only to destroy entire fields by chewing through the cotton lint to feed on seeds. Vijay Jawandhia, a farmer leader and a cotton farmer from Vidarbha, said, "The pest attacks the crop at the fag end of the season, around 90 days after it is planted. The first picking cycle begins after 110 days, so the farmer has only 20 days to spot the pest and take preventive steps." He added that it leaves the farmer with very little time to react and any delay can ruin the entire crop. After introducing Bollgard in 2002, a stronger version-Bollgard II-was introduced in 2010. It was instrumental in pushing up cotton production as pest attacks could be contained, which was one of the main reasons why genetically modified cotton or Bt cotton was introduced throughout the country. The cost of insecticides and pesticides, which would constitute to nearly 40-45% of the total cost of production, was also projected to be reduced by use of Bt seeds. For these benefits, companies manufacturing these seeds charged farmers a higher sum. A 425gm packet of BGII Bt seed cost between Rs 925 and Rs 1,050, which is nearly three times the cost of regular seed packets. At least three packets are required for one acre of land. "Since the past few years these benefits have been slowly fading away, but the cost of the seeds are still the same," said Jawandhia. Some of the seed company officials say that farmers do not follow precautions like sowing non-BT seeds along the periphery of fields and also not to keep the crop for more than 160 days, which makes it more prone to pests.
Source: The Times of India
Over 45 lakh hectares were sown in the cotton-growing regions of the country, said MS Ladhaniya, director of CICR, adding that this does not mean that the acreage is likely to be doubled by the end of July. Cotton planting in the country has doubled in terms of area compared to the same period last year. Good monsoon and high prices for cotton have prompted more and more farmers to opt for cotton over pulses and soya, top officials of the Central Institute of Cotton Research (CICR), Nagpur, said. Over 45 lakh hectares were sown in the cotton-growing regions of the country, said MS Ladhaniya, director of CICR, adding that this does not mean that the acreage is likely to be doubled by the end of July. A clearer picture will emerge in the next 15-20 days, he said. Ladhaniya is of the opinion that the acreage is likely to go up to 120-122 lakh hectares for the cotton season of 2017-18. As per the data released by the agriculture ministry, an unprecedented increase in cotton sowing has seen the area under kharif cultivation going up by nearly 20%. With most parts of the country receiving good rains as the first month of monsoon activity comes to a close, there is an indication that sowing will pick up momentum in the coming weeks. Sowing of cotton so far has been particularly impressive with its acreage registering an increase of almost 2.5 times over the same period last year. A substantial increase in cotton cultivation in Maharashtra (an increase of 6.51 lakh hectare) and Telangana (3.16 lakh hectare) has ensured that the acreage under cotton increased to 46 lakh hectare from 19 lakh hectare this week the previous year. So far, farmers have planted 222 lakh hectare under different crops, nearly 19% higher than the 187 lakh hectare planted by this time last year. Sowing of kharif crops begins in June and continues through July as the monsoon progresses across the country. During the kharif season, farmers typically plant around 1,060 lakh hectare. By this time of the year, the normal or five-year average of sowing area is 220 lakh hectare. According to Ladhaniya, sowing operations have already been completed in the North, including Punjab, Rajasthan and Haryana. Sowing is picking up in Maharashtra, Andhra Pradesh, Telangana and Gujarat. As per the initial indications during the current season, the cotton area sown would be around 6 lakh hectare in Haryana (against 4.98 lakh hectare during 2016-17) and 4 lakh hectare in Punjab (as against 2.56 lakh hectares in 2016-17). In Punjab, cotton is likely to make revival in several south-western districts where paddy was grown in the past years. In Rajasthan, the area under cotton is expected to remain static at around 4.5 lakh hectare. “Strong domestic prices are likely to influence the decision of farmers to allocate greater area to cotton. Farmers who opted to soybean and pulses – competing crops of cotton – during 2016-17 are likely to switch back to cotton since the returns from these crops were low despite bumper yields,” Ladaniya said. Meanwhile, the Cotton Association of India (CAI) said that cotton exports of India are likely to see a decline of 17% in the 2016-17 season. India exported 72 lakh bales of cotton in 2015-16 and CAI has estimated that the exports will touch 60 lakh bales in the ongoing season. The CAI has placed its cotton crop estimate for the season at 336.25 lakh bales of 170 kg each.
Source: Financial Express
The Karnataka High Court on Tuesday permitted a garment unit situated in Bellandur lake’s catchment area to resume operations and directed the Bangalore Electricity Supply Company Ltd (Bescom) to restore the electricity connection. A Division Bench comprising Chief Justice Subhro Kamal Mukherjee and Justice P.S. Dinesh Kumar passed the interim order on a petition filed by M/s Shahi Exports Pvt. Ltd., which was ordered to be closed by the Karnataka State Pollution Control Board (KSPCB) following directions by the National Green Tribunal to close industrial units in the catchment area of the polluted lake. During the hearing, counsel for the garment unit pointed out that it is situated in Arikere on Bannerghatta Road, which is eight kilometre away from Bellandur lake, and also submitted a test report certifying that the discharge is within the norms. Observing that the unit is not directly discharging any effluent in the lake, the bench gave liberty to the KPSCB to inspect the unit in the presence of all the parties involved. The unit employs around 8,000 people.
Source: The Hindu
Keen on fast-tracking the negotiations on the Regional Comprehensive Economic Partnership (RCEP), India on Tuesday invited companies from Asean countries to invest in numerous sectors here. Talking at the 9th edition of the Delhi Dialogue, a conference in which policymakers converge to discuss a range of issues relating to India-Asean relations, external affairs minister Sushma Swaraj said: “We place Asean at heart of our ‘Act East Policy’ and centre of our dream of an Asian century. Asean and India are natural partners that share geographical, historical and civilisational ties.” “We are making efforts on all fronts to enhance physical and digital connectivity,” said the minister, adding that future focus areas of cooperation between Asean members and India can be described in term of 3C’s- commerce, connectivity and culture.” According to the minister connectivity is the core focus area for India. “We are making progress in enhancing the physical and digital connectivity.” The Delhi Dialogue is being organised by the MEA in collaboration with the Observer Research Foundation (ORF), Federation of Indian Chambers of Commerce and Industry (Ficci), and other bodies of the Asean countries. Asserting that in the last three years, the government has undertaken a number of initiatives to boost the economy, Sushma said: “India is one of the fastest growing major economies in the world.” The minister pointed out to the senior leaders of the Asean countries that the government has introduced a series of reforms to improve the business environment here, including the recent launch of the goods and services tax (GST).
Source: Financial Express
The textile trade between India and Russia currently stands at $161 million, but has the potential to reach more than $1 billion with a huge market of winter wears in Russia, said J K Dadu, additional secretary, Union ministry of textiles while speaking at a country session on the second day of Textiles India 2017. With over 10 months of extreme cold climate in Russia, India can has the potential to cater to this weather through items such as leather jackets, caps, boots, pashmina shawls and various other woolens, which it can export. Also with Russia's push to become environment friendly, India can provide it with jute bags, Dadu added. Experts at the session also discussed how high import duties in Russia are impeding exports from India.
Source: YNFX
The government has sought suggestions from stakeholders to formulate a new industrial policy to promote manufacturing and job creation in the country. The new policy also aims at aligning with the government's flagship programmes such as Make in India, Skill India, Startup India and the foreign direct investment norms. "The government is formulating a new industrial policy. To this effect, your inputs are valuable to us," the Department of Industrial Policy and Promotion (DIPP), under the commerce and industry ministry, said. The DIPP has already constituted six groups for preparing a framework of the policy. Besides taxation, MSME (micro, small and medium enterprises) and innovation & technology, the groups would prepare reports on infrastructure, intellectual property rights (IPRs), ease of doing business and employability of future workforce. The new policy would completely revamp the industrial policy of 1991, an official said. Members of these groups include government officials, academicians and representatives of professional firms. The draft of the policy should be ready by September.
Source: Indian Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1130.68 |
USD/Ton |
0.66% |
7/4/2017 |
|
VSF |
2231.90 |
USD/Ton |
0.33% |
7/4/2017 |
|
ASF |
2180.34 |
USD/Ton |
0% |
7/4/2017 |
|
Polyester POY |
1171.19 |
USD/Ton |
0.63% |
7/4/2017 |
|
Nylon FDY |
2740.15 |
USD/Ton |
0.54% |
7/4/2017 |
|
40D Spandex |
5082.54 |
USD/Ton |
0% |
7/4/2017 |
|
Polyester DTY |
2357.12 |
USD/Ton |
0% |
7/4/2017 |
|
Nylon POY |
1524.76 |
USD/Ton |
0.98% |
7/4/2017 |
|
Acrylic Top 3D |
2872.74 |
USD/Ton |
0% |
7/4/2017 |
|
Polyester FDY |
5833.87 |
USD/Ton |
0% |
7/4/2017 |
|
Nylon DTY |
1388.49 |
USD/Ton |
0.53% |
7/4/2017 |
|
Viscose Long Filament |
2533.90 |
USD/Ton |
0% |
7/4/2017 |
|
30S Spun Rayon Yarn |
2887.47 |
USD/Ton |
0.51% |
7/4/2017 |
|
32S Polyester Yarn |
1705.23 |
USD/Ton |
0% |
7/4/2017 |
|
45S T/C Yarn |
2710.69 |
USD/Ton |
0% |
7/4/2017 |
|
40S Rayon Yarn |
3049.52 |
USD/Ton |
0% |
7/4/2017 |
|
T/R Yarn 65/35 32S |
2312.92 |
USD/Ton |
0% |
7/4/2017 |
|
45S Polyester Yarn |
1841.50 |
USD/Ton |
0% |
7/4/2017 |
|
T/C Yarn 65/35 32S |
2283.46 |
USD/Ton |
0% |
7/4/2017 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
7/4/2017 |
|
32S Twill Fabric |
0.85 |
RMB/Meter |
0% |
7/4/2017 |
|
40S Combed Poplin |
1.19 |
RMB/Meter |
0% |
7/4/2017 |
|
30S Rayon Fabric |
0.66 |
RMB/Meter |
0% |
7/4/2017 |
|
45S T/C Fabric |
0.68 |
RMB/Meter |
0% |
7/4/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14732 USD dtd. 04/07/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
LAHORE: Consumers in Pakistan face customs duty rates nearly four times more than the global average, which makes goods more expensive, according to a new study by UHY, an international accounting and consultancy network. The study found that customs duties in Pakistan average seven percent of the total value of imported goods, whereas the global average in this regard is 1.8 percent of the total value of. This means that Pakistani consumers pay relatively higher prices for the goods than the consumers in many other parts of the world –including many developed economies. UHY studied customs duties levied by 22 economies around the world as a percentage of the total value of their imports, as a simple indicator of the impact of a country’s trade barriers. The report points out that since 2006, Pakistan has been a member of South Asian Free Treaty Area (SAFTA) which also includes Bangladesh, Bhutan, India, Nepal, Sri Lanka, and Maldives. Ibne Hassan, a member of UHY affiliated firm in Pakistan, said that customs duties can be a burden on the consumers and can often make everyday items more expensive. He said motivation to adopt a protectionist stance to protect jobs and nurture jobs can be very compelling. However, there is often a price to pay through higher costs of goods. This tends to be particularly a huge burden on the budgets of low income consumers. Such policies could end up having an impact even on those industries that the governments are trying to protect, potentially effecting efforts to stimulate competitiveness or drive innovation. Former president of the Institute of Chartered Accountants of Pakistan Naeem Akhtar Shiekh said, “We have seen many industrial sectors losing global competitiveness when governments gave heavy protection to domestic industries producing basic raw material for the main industries. This effectively increased the price of basic raw material much above the global rate.” Pakistani textiles, he added, suffer mainly because of the protection provided to the local industry making manmade fibre. The result was that Pakistan has no presence in the global markets in blended textile products made with manmade fibres and cotton. “Today, we have restricted our textile exports to cotton-based products only. The share of cotton-based products in global textile trade is only 20 percent,” Shiekh added. Consumers in the US, UK and other developed economies benefit from half the customs duty rates compared to the global average, which enables them to save significant amounts of money, according to the UHY study. The report further found that among the major emerging economies, Brazil imposes relatively high rates with duties worth 7.6 percent of the total value of imports. UHY found that customs duties in the G7 are, on average, just 0.8 percent of the total value of imported goods. The global average is 1.8 percent of the total value of imported goods. This means that consumers in the G7 typically pay comparatively lower prices for goods than consumers in many other parts of the world – including many emerging economies - where costs are pushed up by higher import taxes. In the US, where protectionism has been rising up the political agenda, raising the possibility that higher import duty may be levied; customs duties are currently worth just 1.3 percent of the value of imported goods. This compares to 1.8 percent in China. European countries generally impose comparatively low rates - the European average is 0.4 percent - so British consumers could be at a significant disadvantage if the UK fails to keep duties at a similar level on leaving the EU. In the UK, where Brexit is also creating uncertainty over the future of UK trade deals, customs duties are currently even lower, worth just 0.5 percent of the value of imports. The study pointed out that many free trade blocs, particularly the EU have helped in keeping low tariffs. Experts say that free trade agreements are becoming increasingly critical as well as a contentious policy area. They said some free trade agreements are under review because of protectionists move on the part of some governments. The study of 22 economies revealed that the lowest tariff on imports is in France and Poland that generate only 0.3 percent customs revenues on their total imports. Bangladesh levies highest import duties on its imports that average 12.1 percent. In India the average import tariff is 6.6 percent.
Source: The News International
LAHORE - The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT) have decided to give a practical shape to the MoU signed between the two associations in March 2016 to promote cooperation between Pakistan and Chinese textile and apparel companies. The decision was taken in a meeting of PRGMEA office-bearers and CCCT delegation here at a local hotel. The meeting was also attended by Commerce Minister Khurram Dastgir and Board of Investment (BOI) Chairman Dr Miftah Ismail. The CCCT delegation, led by its vice chairman Wang Vu, visited Pakistan on the invitation of PRGMEA to carve out plans and strategies for implementation of the last year’s MoU. Dastgir and officials’ team of his ministry also briefed the Chinese delegation about the overall situation and development trend of Pakistan’s garment sector and textile industry. He urged the foreign investors to take advantage of lucrative investment policy of Pakistan by investing in its various sectors to the mutual benefit of all. On the occasion, BOI Chairman Dr Miftah said all sectors of economy were open for investment and level-playing field was provided to local and foreign investors. Addressing the meeting, PRGMEA Central chairman Ijaz Khokhar said that today’s interaction with CCCT delegation will help in giving practical shape to the previous MoU. “We hope to reach towards more simplified and prompt result bearing operational strategies that will lead us to the implementation of the MoU for establishment of joint ventures, exchange of information and technology, fairs, training and visits from both sides,” he added. Khokhar said, “Apparel industry of Pakistan is optimistic that this meeting will help building mutually beneficial dimensions for both sides and we have chalked out the road map for regular meetings in future which would strengthen bonding between CCCT and PRGMEA.” “It is the first time that a Pakistani garment sector body signed such an agreement with the overseas stakeholders for strengthening mutual trade of garment and textile,” he added. He said the PRGMEA appreciates efforts of both the governments for paving the track that cads towards economic growth of both the nations by signing a landmark CPEC which is undoubtedly the mega project so far, that will trigger numerous opportunities of economic cooperation and collaboration for non-government sector as well. “We at PRGMEA initiated agreement with CCCT aiming to expand cooperation between Pakistan and Chinese apparel industry by exchanging marketing strategies through close liaison between PRGMEA and CCCT on permanent basis,” he said. CCCT Vice Chairman Wang Vu said that Pakistan being one of top five cotton producers has great potential for growth of value-added garments and apparel industry. He invited PRGMEA to lead delegation to China for B2B meeting at Canton Fair being held at the end of October 2017. He said that CCCT is one of the organisers of Canton Fair, having 12,000 members and most of them will be in Canton Fair. He said that in line with the MoU the CCCT already cooperated with Ecommerce Gateway from Pakistan from 2016 and be co-organiser of its Textile Asia and CFT Asia in China. “We hope we will continue cooperation on this fair and conduct textile exhibitions in future and lead the visiting groups to hold annual meeting and making investment in textile research and development in Lahore or Karachi.”
Source: The Nation
KARACHI: The leading stakeholders of cotton sector have urged Ministry of Textile and Cotton Crop Assessment Committee (CCAC) for taking corrective measures to avoid possible damage to crop following recent rains and possible virus attack. Representatives from All Pakistan Textile Mills Association, Pakistan Cotton Ginners Association, Karachi Cotton Association, Pakistan Yarn Merchants Association and Sindh Agriculture Forum to provide technical assistance to growers and provincial research and extension officials for better scouting standing crops in Sindh and Punjab stations besides provision of certified cotton seed. The representative from Crop Reporting Service Department Punjab also informed some cotton growing areas have been reported prone to virus attack. CCAC has already set 13.75 cotton bales for crop season 2017-18, while cotton was sown over 2.950 million hectares depicting 3 percent less than the target. However, the current rains could possibly damage standing cotton crop in parts of Punjab and Sindh stations. However the chances of Cotton Leaf Curl Virus attack could be controled to maximum extent but boll worm and mealy bug damage on crop could not be ruled out. The Punjab province was expected to produce around 10.18 million bales of 170 kilogrammes while Sindh to produce around 3.69 million bales. Farmer members from Punjab stressed for intervention of Trading Corporation of Pakistan at the earliest as cotton season was ending soon. The benefit of intervention price for seed cotton should be assured for farmers, they maintained.
Rana Abdul Sattar (PCGA), Ghulam Rabbani (PYMA), Shakeel Ahmad of Agri Forum and Qamar Qureshi of Economic Forum Pakistan were of the view that agri-scientists to check the effects of pesticides in oil and cake produced through cotton crop by applying a number of poisonous sprays. Pakistan is a signatory to various international laws/obligations so we should focus on producing better cotton which could not only benefit farmers in reducing cost of production but also be exported at higher prices. The representative from Agriculture Department Khyber Pakhtunkhwa said cotton crop was sown at an area of 3,690 hectares. Farmers of the area were not much educated in cotton crop management and due to non-existence of cotton ginning factories in the province thus farmers were reluctant to grow cotton.
Source: Daily Times
That Pakistan needs to find new products and markets to export aren’t exactly an epiphanic policy advice. The advice is decade-old at the very least; it can be traced way back to central bank’s State of Economy (SoE) reports during the Shamshad Akhtar years. So when the central bank’s latest SoE report advises the government to diversify its products and markets, the bank is not really saying anything new. The only difference is that ten years ago the consequences of failure to diversify was more of a warning than a reality; today’s those warnings have come to life. Pakistan’s weakness in the management of exportable economy is visible across the board. At the one end, the central bank does not expect any “bright prospects” for wheat exports, even though a bumper crop is being added to the already sufficient stockpile, “as the price differential between domestic and international market is unfavourable at this stage.” At the other end, despite excess stock in hand, the sugar industry could not exploit export opportunities “due to quantity restrictions and short time limit, despite possessing ample carryover stocks and record production.” Meanwhile, “unavailability of logistic infrastructure for exports” coupled with its higher domestic production cost made fertilizer exports rather challenging, whereas the story of falling cement export is already quite well known. The central bank’s SoE 3QFY17 also highlights how Pakistan’s export recovery lags behind its peer economies. “Like many other emerging markets (EMs), Pakistan also faced a challenging export environment over the last two years. However, many of these external dynamics had reversed by mid- 2016”, due to a confluence of factors, from which Pakistan’s export recovery hasn’t benefited as much as her peers have. One reason behind Pakistan’s weak export recovery is that’s her clothing and home textile products are fetching lower unit values in the key EU market than those of its competitors. The SBP says “both the product quality and competitive pricing issues seem to be at play here”. It’s another thing that the central bank conspicuously remains silent on the exchange rate’s impact on exports. The graph reproduced from central bank’s latest SoE report shows that Pakistan’s high value-added exports to advanced economies face tough competition from her competitors. To make products more attractive and maintain their product share in the international market, Pakistan’s exporters slash their prices, says the SBP. “This situation has been clearly visible in the EU market this year, where Pakistani exporters have received lower unit prices for clothing items (both knitted and woven clothes), as compared to their regional competitors.” Bear in mind that this performance is despite a host of policy support measures available to the textile industry. Short of a miracle, the dynamics underpinning weak exports aren’t going to change anytime soon. Finding new markets and new products to sell overseas isn’t going to happen without improving governance, institutions and policies. All these things are slow, difficult and often painful – and least likely in the last year of government especially when the ruling family is struggling for its survival in the courts. The moral of the story: package-based export policy and management is not going anywhere anytime soon.
Source: Business Recorder
The readymade garment (RMG) industry forms the backbone of export and economic growth in Bangladesh. The country is second largest garments exporter in the world behind China. However, even with ultra-low wages, its competitiveness is being hurt by several issues. In early June, the government decided to reduce corporate tax on the industry from 20% to 15% with tax on green garment factories even lower at 14%. However, industry leaders think the government needs to do more in terms of infrastructure modernization and streamlining of port operations. They are also pressing for even lower tax rates due to the negative impact they have witnessed on garment exports as global growth has tapered. Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association, told local media that the garment industry had been growing at a rate of 13% for the past ten years, but in recent months, this has slowed down considerably to less than 3%.
Rising cost of production and other inefficiencies
In an interview with local media, Rahman said that the cost of production has been rising by 18% per year while the price of apparel has not risen and has even fallen in some cases. While Bangladesh may continue cornering a large share of the low-value garment market, a continued rise in production costs, without the benefit of reduced taxes or an increase in global prices, would lead to declining profitability and reduced export income. Another infrastructure bottleneck that has been hurting the RMG industry is airport authority inefficiency which leads to delayed receipt of samples from buyers, resulting in late execution of orders. Though samples are expected to reach manufacturers within 24 hours of arriving, at present it takes over ten days. Rahman said that this is costing the industry $1 billion annually.
Poor environment for workers
Bangladesh was recently ranked among the worst countries in the world for workers according to the ITUC Global Rights Index 2017. Among the ten worst countries in the world for workers, Bangladesh was ranked alongside Guatemala, Kazakhstan, and the United Arab Emirates.
The report noted that, “Only about 10 per cent of Bangladesh’s more than 4,500 garment factories have registered unions, as the labor law requires an unreasonably high 30 percent of workers to agree to form a union and mandates excessive registration procedures, while the government has vaguely defined powers to cancel a union’s registration.” These issues arguably cause a degree of harm to the business aspects of Bangladesh in general and the RMG industry in particular. Without concrete steps by the government, the industry may fall well short of its potential, and see the country miss out on potential investment. Though the industry is critical to the country, attention is also being placed on diversification.
Source: fronteranews.com
A FEW miles from what was once the 'wool capital of the world' Charlotte Meek is introducing textiles to a burgeoning workforce. Two days of her busy working week are taken up with teaching industrial sewing machinists who are eager to pick up an important trade and help to swell Britain's textile workforces of the future. The Textile Academy was born out of a £31,000 investment from the Textile Growth Fund. It is being developed by Leeds City College (Keighley Campus) in response to the skills shortage within the textile industry, and has been supported by local employers. Since January, Charlotte has been busy developing and running the course aimed at long-term unemployed. Working with local manufacturers and the Department of Work and Pensions, the academy has, so far, successfully trained six students into full-time work. "When I came out of college in the early 90s, there was a down-turn in the economy and it wiped out much of the textile industry in the UK," explains Charlotte. Historically, Bradford's textile trade diminished due to the impact of cheaper production overseas - but could the city's textile industry be booming again? Charlotte explains it is a nationwide issue. "The other thing is production has been going overseas. Most clothing is being produced overseas, but because China and India are becoming more Westernised wages are going up." Charlotte says, as a result of this, production is gradually returning to the UK but the industry needs skilled machinists to meet the demand. However, a lack of investment in sewing machinists has contributed to the skills shortage the country now faces and is now being swiftly addressed by organisations such as the Textile Academy. "A lot of production is starting to come back to the UK and there are a lot of companies setting up now just to feed the UK production," says Charlotte. Chris Stott, Head of Business Engagement at Keighley College, says: "There is a real growth in textiles around us." He explains how many of the big companies are turning to local manufacturers due to the high quality and also to keep up with the demand created by fast fashion and changing trends. The Textile Academy's 'employer-led model' aims to train machinists with the skills they need to help local companies meet that demand - Chris talks of one company trebling the size of its factory. Yet the stumbling block for many is recruiting machinists. According to Chris one of the issues could be the perception of the textile trade in the past. "I think part of the problem recruiting is they remember the days of working in a mill and it's not like that. The modern textile industry is clean and bright." Chris also believes people may not be aware the textile industry still exists but he says the industry offers people the potential to pursue a successful career. "We have managed to maintain this industry to this day and we are producing these high quality products and making sure they continue to do that and continue to grow by bringing young people in," says Chris. Charlotte says organisations such as Meet the Manufacturer, Make it British are promoting the manufacturing trade and textile manufacturing in the UK. She recently spoke about the skills gap and the future of the textile industry, along with her work with the Textile Academy, at a Meet the Manufacturer Trade Fair in London run by Kate Hills of Make it British. Now Charlotte is busy promoting the profession to her students. "It is a good job, you could earn a good salary being a machinist and you are making something so it is really quite rewarding." Charlotte speaks from experience. Her interest in making and creating is in the genes. Her grandmother, Edna Rogers, was a dressmaker and inspired her own interest in sewing and all things crafty. "She was the biggest influence in my life really and taught me everything I know," says Charlotte. As well as being a trained pattern cutter and dressmaker, Charlotte is also a keen knitter. In a previous interview I learned how crocheting a blanket hadn't just been a satisfying accomplishment for the mother-of-two, it took her mind off the cancer treatment she was undergoing at that time. "When you are learning a craft you have to give it attention. It took my mind off being ill and what I was going through and also it gave me a purpose. It really did help me," Charlotte explained previously. When she isn't passing on her creative skills to others through the course, Charlotte is busy developing her apron business. 'The Stitch Society' is an appropriate brand. Operating out of a studio in Salts Mill, the landmark location within the World Heritage Site, Charlotte is creating a stylish yet practical piece of clothing - perfect for all the makers she meets. Chatting with her customers, Charlotte can tailor-make aprons to suit their requirements; whether it be potters wanting a waterproof pinny, textile artists or weavers wanting to shield their clothes from their work, Charlotte's aprons are designed to help them do their job while being practical and pretty in the process. The most unusual profession Charlotte has catered for is a client who creates model eyes for medics to practice on She explains how the apron she crafted for her has almost 'revolutionised' the way she works. Another client purchased an apron as a gift for his wife who doesn't normally wear one. "She loves it, it makes her feel nice when she is doing jobs," says Charlotte. "Firstly, they are nice to wear and they are really useful." Charlotte is also conscious of the business' environmental footprint and the focus on sourcing British fabrics. She explains how they are looking at ways to use the waste fabric from their apron range such as turning it into tote bags. And she is keen to profile her creations, attending fairs throughout the country in locations such as London, Bath and, closer to home, the Saltaire Makers Fair. The Stitch Society is participating in its first trade fair - The Home and Gift Fair - in Harrogate from July 16 to 19 and has been accepted to do the Selvedge Fair in Pendle in September and the Great Northern Contemporary Craft Fair in October.
Source: Telegraph and Argus
The 41st Texworld Paris will introduce a new segment on denim - Texworld Denim. The four day programme beginning from September 18, 2017 attracts ever-increasing numbers of international manufacturers specialising in fabrics, trimmings and accessories. Over 910 exhibitors from various parts of the world will present at the textile exhibition. "On the occasion of the 41st Texworld Paris show, Messe Frankfurt France is introducing a new segment that goes by the name of Texworld Denim. The denim sector has always provided a tremendous impetus for generating business. Denim has gained even more importance as a staple of our wardrobes. It has become an emotional driver with its language and lifestyle. It is a world of its own that we now wish to showcase separately to accord it due recognition for its traditions and attitudes. This spirit of openness to change and new development is one of the vital aspects of the winning formula provided by Texworld Paris, as indicated by the record number of exhibitors who have registered so far. Texworld Paris has become an unmissable event for the fashion sector," said Michael Scherpe, president, Messe Frankfurt France. Texworld Denim will assemble 80 textile and clothing exhibitors who are experts in denim. Over 100 exhibitors will attend the show for the first time. This new segment will have a new trends forum - created by the artistic directors of the show; Louis Gerin and Gregory Lamaud - and a "social village" enlivened by a diverse programme of meetings and presentations. Accompanied by national groups and associations for the textile industries, South Korea, Thailand, Pakistan and India will again offer pavilions with more than 20 exhibitors. A series of lectures about the latest developments in the sector, news from exhibitors, catwalk shows and the Trends Forum will be held at Texworld Paris 18.
Source: Fibre2fashion.
