Opposition members in the Rajya Sabha on Thursday raised the issue of problems being faced by textile manufacturers and traders owing to Goods and Services Tax (GST) implementation. Some MPs also demanded that the sector be exempted from the new indirect tax. Ananda Bhaskar Rapolu from Telangana highlighted the grievances of the handloom, power loom and the textile sector as a whole. “About 70 lakh workers are employed in the power loom sector. They are worried about the excessive slabs of the GST as it is hampering their livelihood. As a result, the entire textile sector is in agitation mode,” he said. Mr. Rapolu said in Gujarat’s Surat and Maharashtra’s Bhiwandi, lakhs of workers were agitating. “Mahatma Gandhi wore handloom clothes. The sector needs to be protected." Ahamed Hassan and Sukhendu Shekhar Roy raised the issue of strikes by traders in West Bengal, while member Ritabrata Banerjee said the State’s tailoring industry has also been affected. “The complexity of GST rules, the problem in maintaining GST audit and registration process has hit business and jobs of Ostagar (tailors),” he said.
Source: The Hindu
The Opposition in Rajya Sabha raised Thursday the issue of protests by textile manufacturers and traders against GST, saying the new tax would adversely affect the industry, especially the handloom segment. Several Opposition members raised the matter during zero hour, with some demanding that the textile sector be exempted from the GST net. Highlighting the recent protests, Congress’s Anand Bhaskar Rapolu said GST will disturb the handloom sector and demanded the sector be removed from its ambit and that GST on the powerloom segement be lowered. TMC members Ahamed Hassan and Sukhendu Shekhar Roy referred to the strike by readymade garment shopowners in West Bengal. Senior Congress MP Ahmed Patel said the imposition of GST on the textile sector will make it uncompetitive. CPM leader C P Narayanan demanded that items relating to the disabled people should removed from the GST net. Another member, Ritabrata Banerjee spoke about the complexities in the new indirect tax regime which came into force from July 1. Rajeev Shukla of Congress said there was lack of coordination between the Centre and the states on the implementation of GST.
Source: The Indian Express
Since the cluster is functioning under 90 days credit format (in the value chain), such a high GST will put the sector under financial stress, which will render people jobless going forward, Rajendran said. Nearly 2,000 working units of the knitwear/readymade garment cluster in Tirupur, employing more than a lakh people, have called for a day’s strike on Friday to protest against the GST Council’s decision to place them under the 18% slab. Among various jobs at Tirupur, knitting, dyeing and compacting attract only 5% of GST, while other work such as printing, embroidery, button fixing, checking, ironing and packing are attracting 18%. Even finished garments will attract only 5% of GST and there is no logic in bringing these small and tiny job working units under 18%, said PS Rajendran, president of New Thiruppur Hosiery Garments, Small Manufacturers Association. “We have called for a day’s strike on Friday to protest against the GST Council decision to put the above mentioned jobs under 18% of GST, which is uncalled for and unprecendented,” Rajendran pointed out. Since the cluster is functioning under 90 days credit format (in the value chain), such a high GST will put the sector under financial stress, which will render people jobless going forward, he said. A senior official at Tirupur Exporters’ Association (TEA) told FE: “Levying 18% on our work will disturb the seamless credit flow defeating the very objective behind GST.” The official further said that due to the global economic situation, many foreign buyers have started operating on credit basis where payments for exported goods are realised from 90-150 days from the date of shipment. This credit period is generally passed to every segment of the value chain whereby job workers are paid with credit terms of around 90 days. “In this scenario, the situation where small and tiny job workers have to shell out 18% immediately at the end of the month despite their payments being realised much later, will create a huge working capital blockade causing financial stress to these micro and small industries,” he added. According to TS Srikant, president of Tirupur Export Knit Printers Association, all micro units are running with capital investments of Rs 50,000 to Rs 50 lakh a month and on a 90-day credit format. “The imposition of 18% GST has created a huge burden and may lead us to shut shops,” he said.
Source: Financial Express
MUMBAI: The Centre has created a detailed road map for goods and services tax (GST) audits barely 20 days after the levy’s rollout, listing risks, target industries and even potential auditees for officials examining corporate India’s transition to the new regime. In the past week, the government has reached out to tax commissioners on the audit process, highlighting the risk areas. Beginning next week, therefore, officials could visit companies to assess whether the transition from the multiple to the single producer levy from July 1 stuck to the rule book. Their mode of inspection will also be very different from the traditional script. "They would focus on credit transfer or transition from the old tax regime to GST. The government already has the requisite sets of data in place for this," a tax official told ET on the condition of anonymity. The government has shared sector-wise "risk factors" companies might exploit to avoid paying GST. According to the tax official quoted above, categorisation or risk evaluation for these audits has been created by using Big Data analytics. The government has used statistics of the last two financial years to create the audit checklist. In the internal government note shared with middle-rung tax officials, they have also been told to cause the “least inconvenience” to auditees and to even educate the taxpayers, especially small and medium enterprises (SMEs). Industry experts, however, pointed out that a granular scrutiny could mean additional tax-related effort at many companies, as the GST audits would also take earlier taxes into account while evaluating the transition.
‘Extra book-keeping effort’
“The decision to focus on risk-based parameters in determining the audit plan is good. However, since the audits to be undertaken now would focus on earlier legislation such as excise and service tax, taxpayers will grapple with both the earlier legislation and the new legislation (GST) simultaneously,” said MS Mani, partner, GST, Deloitte India. “It would significantly increase the focus and time taken to attend to tax matters.” A list of auditees, made up of large, medium, and small-scale companies across the country, was also shared with the tax commissioners. “Most of the companies have manipulated the system while transitioning credits from excise and service tax to GST. This is what would be the focus of the tax audits initially,” a senior tax official told ET. Tax officials have been asked to first examine a specific list of companies. This was disclosed in an official communication by the director general of audit, central taxes, on July 12, with several mid-level tax officials being informed this week. Big Data analytics are being used by the tax departments since 2016. The tool is deployed to find outliers in any industry, and the gap from industry based average taxes is used to determine targets for further scrutiny. “The government would have comparables. Say, if 10 consumer goods companies of a particular size pay Rs 50 crore in taxes, it is unlikely that one company, of the same revenue size, would pay Rs 1 crore. Data analytics could easily point out such anomalies, and the lens would then be on such companies,” a person in the know said.
Source: Economic Times
India is under pressure to agree to eliminate import duty on at least 90 per cent of its traded goods as part of the Regional Comprehensive Economic Partnership (RCEP) pact being negotiated by 16 countries, including China and ASEAN members. Trade ministers from all member-countries, which include South Korea, Japan, Australia and New Zealand, will meet in Hanoi this week to push the negotiations forward. “New Delhi is firm about not opening its market extensively to at least China and offer the country much lower concessions by working out country-specific deviations.
Philippines suggestion
But what has made the negotiations tougher is the ‘opt out and reciprocity’ flexibility suggestion made by the Philippines,” a government official told BusinessLine. The ‘opt out and reciprocity’ principle proposes that if a country cannot agree to what the majority of members were ready for, it can opt out from that provision and wait for a time till it is ready to sign up. In the previous negotiating round earlier this month, the Philippines reportedly told the Trade Negotiations Committee that 14 to 15 countries had agreed to slash 90 per cent of applied tariffs to zero once the RCEP comes into force, but if some countries were not ready, they could opt out and join later.
Yes to ASEAN, no to China
“It is difficult for India to agree to eliminate duties on 90 per cent of items for all members,” the official said. “While it might still be considered for ASEAN countries, with which India already has an ambitious free trade agreement in place offering concessions on over 80 per cent items, it will be impossible to agree to such deep cuts for China, as there won’t be an economic or a political mandate for it domestically.” It is also difficult to give such liberal market access to New Zealand and Australia, with which India is yet to sign bilateral free trade agreements, he added. New Delhi seeks to protect its markets from China, New Zealand and Australia by seeking ‘deviations’, under which it would offer certain members smaller concessions than those offered to all countries. This could mean a higher number of items protected from tariff cuts or a longer implementation period (more than the normal 15 years), but there is no agreement on the issue yet. Commerce Minister Nirmala Sitharaman will be in Hanoi for the inter-sessional ministerial of RCEP countries, beginning Monday, where attempts will be made to get a final structure of concessions in place.
Source: Business Line
Surat: Powerloom weavers are reeling under shock after senior officer of customs, central excise and service tax revealed there is 18% GST on any jobwork done on polyester yarn. Until now, the powerloom weavers were under the impression that the weaving sector attracts 5% GST for manufacturing grey fabric from yarn. At the seminar organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) on 'Impact of GST on weaving industry' on Thursday, deputy commissioner of customs, central excise and service tax, Sachin Singh clarified that any jobwork done on yarn attracts 18% GST. Noisy scenes were witnessed at the SGCCI's auditorium at Nanpura after Singh revealed the GST tax structure from yarn stage to traders. "The yarn attracts 18% GST and any jobwork done on yarn also attracts 18% GST. The 5% GST is only on the finished fabric processed by textile mills and the end product sold by traders," said Singh. Industry leaders stated that the 18% GST rate would collapse the powerloom sector. There will be huge loss in terms of input tax credit, which has no provision for refund under the GST law. Ashish Gujarati, president of Pandesara Weavers' Cooperative Society Ltd, said, "This is bad news for the entire powerloom sector. Until now, we were under the impression that weavers will have to pay 5% GST. But, today we have received clarification that the GST rate is 18%. If this is so, the industry is certainly going to collapse." Gujarati added, "The weavers doing jobwork will be finished. The master weavers were not giving jobwork to weavers after the announcement of GST rate, which was assumed at 5%. Now, you can just imagine the situation at 18% GST rate."
Source: The Times of India
Ethiopia, one of the fastest growing countries of Africa, is seeking India's investment in its textiles industry. For this, a workshop on the investment opportunities in Ethiopian textiles will be held on July 21, 2017. The session will be hosted by Ethiopian Investment Promotion and International Trade Centre and The Southern India Mills' Association. The investment promotion workshop will provide a platform for engagement between Indian textile industries and a high-level Ethiopian delegation to explore partnerships in the sector. It will also raise awareness of existing opportunities for investment in Ethiopia with a particular emphasis on the textile and garments. The session would highlight key factors that serve as Ethiopia’s comparative advantages in the cotton, textile and apparel sector. Ethiopia is expected to become a sourcing hub for the global textile and garment industry within the next decade. With a workforce of more than forty-seven million, the country offers a large supply of valuable human resources at affordable wages. With electricity tariffs at $0.04 per kWh, industries have been able to achieve greater competitiveness over their counterparts elsewhere. Investors engaged in manufacturing are also able to import capital goods for an indefinite period free of customs duties.
Source: Fibre2Fashion
Despite the special package for the textile and garment sector unveiled by the Modi government in June last year, fresh employee registrations from the sector under the employees provident fund (EPF) scheme have been just 40,800 so far. The relevant scheme, Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY), was expected to create 1 crore new jobs, increase India’s export of textiles. Despite the special package for the textile and garment sector unveiled by the Modi government in June last year, fresh employee registrations from the sector under the employees provident fund (EPF) scheme have been just 40,800 so far. Though this is a far cry from what policymakers envisaged, there has been a marginal pick-up in recent months — in the first eight months of the scheme, a little over 1,000 people had got added to the EPFO by textile companies. The relevant scheme, Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY), was expected to create 1 crore new jobs, increase India’s export of textiles and garments by $30 billion and result in `74,000 crore of investments in the employment-intensive sector over three years. Under PMPRPY, the government will bear the entire 12% employer’s contribution in the textile sector to the retirement fund for the first three years, against 8.33% for other sectors under the wider Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). Sources in the labour ministry said 2.72 lakh new employees have enrolled with the EPFO since PMRPY was announced in the Budget for 2016-17. “The PMPRPY scheme has had a slow start, but it is now in picking up and more workers will get enrolled under EPFO in the coming weeks,” said an official. The official said the rise in number could be attributed to more awareness of the scheme, attractive benefits for the employers and the EPFO’s amnesty scheme that remained valid for six months till June last. Under the amnesty scheme, the government bears employers’ contribution of 8.33% of basic pay to the Employees’ Pension Scheme (EPS) for new employees even if new posts are not created by the firm. The benefit was earlier available only for new posts created. The government is also likely to unveil a logo and a revamped awareness programme for the PMPRPY scheme soon. After the Cabinet approved the PMPRPY scheme in June last year, three months went by to get other necessary clearances and finally, the enrolment started only from October last year. Fund disbursements by the government started from December only. PMPRPY scheme for the apparel sector was subsequently extended to the made-ups sector too. A budget of Rs 6,006 crore was approved for the scheme. With the broader aim of universalising the scheme for all eligible workers, EPFO launched an amnesty scheme first in January for three months to rope in both past and new workers. Later, it extended the scheme for three more months. Under the amnesty scheme, an employer does not have to pay damages and administrative charges for not registering past workers (workers with work experience) with EPFO. Employers need to remit only their contribution and 12% interest on the amount. If employees’ contribution was not collected, this doesn’t have to be paid.
Source: Financial Express
The cotton output is estimated at 337.25 lakh bales for the 2016-17 crop year as per the June estimates. The cotton output is estimated at 337.25 lakh bales (one bale is of 170 kg) for the 2016-17 crop year as per the June estimates. This June estimate is similar to the May projection, Cotton Association of India (CAI) said on Thursday. In its May projection, CAI had estimated 336.25 lakh bales for the 2016-17 crop year, beginning from October 1. Cotton production stood at 337.75 lakh bales the previous crop year, CAI added. The projected balance sheet drawn by the CAI estimated total cotton supply for the season at 409.25 lakh bales while the domestic consumption is estimated at 305 lakh bales. As per the CAI estimate, over 95 per cent of the crop for the season has already arrived in the market.
Source: moneycontrol.com
Government reviews the cotton availability position from time to time. Adequate availability of cotton is ensured through domestic production and textile mills are able to source their requirement of cotton from the domestic market. In this regard, Government of India had directed Cotton Corporation of India Ltd. to sell its stock of cotton (cotton season 2015-16), purchased under MSP, to Spinning Mills in the Micro Small Medium Enterprise (MSME) category to contain fluctuation in cotton prices. There is no shortage of cotton/yarn in the country. The details of policy initiatives/schemes/incentives/subsidies/working capital/interest subvention that are being provided to the domestic manufacturers/exporters are as under: i) The Government has been implementing various policy initiatives and schemes like Technology Upgradation Fund Scheme (TUFS), Schemes for the development of the Power-loom Sector, Schemes for Technical Textiles, Scheme for Integrated Textile Parks (SITP) and Scheme for Integrated Textile Processing Development (IPDS) to enable the textile industry, including the small industries, to upgrade and make them competitive. ii) The Government has also launched a Rs. 6000 crore Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivize production and employment generation in the garmenting Sector. These initiatives and schemes will help in the development of the downstream value added segments which in turn will create increased demand for yarn and thereby lead to increased production of yarn. iii) Government has introduced special packages for apparel and made-ups sector in June, 2016 and December, 2016 respectively which include schemes like Amended Technology Upgradation Fund Scheme (ATUFS), Pradhan Mantri Paridhan Rojgar Protsahan Yojna (PMPRPY) and Scheme of Rebate of State Levies (RoSL) on export of garments. Besides, with a view to modernize textile industry, increase production and global competitiveness schemes such as Schemes for Technical textiles, Scheme for Integrated Textile Parks (SITP) and Integrated Skill Development Scheme are also being run by the Government. iv) MEIS Scheme under new Foreign Trade Policy 2015-20 v) Restoring Interest rate subvention for pre and post shipment credit for the textile sector vi) Expanding the scope of Merchandise Export from India Scheme (MEIS) since 29.10.2015 to 110 new tariff lines and increasing rates or country coverage or both for 2,228 existing tariff lines. vii) Increased Duty Drawback rates for some textile articles viii) Market Access Initiative (MAI) and Market Development Assistance (MDA) Scheme ix) Duty Free import of trimmings, embellishments and other specified items under Export Performance Certificate Entitlement Scheme. The above information was given by the Minister of State, Textiles, Shri Ajay Tamta today, in a written reply to a Lok Sabha question.
Source: Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.74 per barrel (bbl) on 19.07.2017. This was higher than the price of US$ 47.36 per bbl on previous publishing day of 18.07.2017. In rupee terms, the price of Indian Basket increased to Rs. 3070.82 per bbl on 19.07.2017 as compared to Rs. 3046.92 per bbl on 18.07.2017. Rupee closed stronger at Rs. 64.32 per US$ on 19.07.2017 as compared to Rs. 64.33 per US$ on 18.07.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 19, 2017 Previous trading day i.e. 18.07.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.74 (47.36) |
|
(Rs/bbl) |
3070.82 (3046.92) |
|
|
Exchange Rate |
(Rs/$) |
64.32 (64.33) |
Source: PIB
The commission is expecting Rs 3,000 crore turnover in financial year 2017-18. In a renewed bid to Make khadi popular, Khadi and Village Industries Commission (KVIC) is joining hands with leading apparel companies like Arvind, Raymond and Aditya Birla Fashion Retail (ABFR). These companies will procure khadi from KVIC and will make and launch designer apparels with khadi mark. “We are joining hands with the leading apparel brands to promote and increase the sell of khadi. KVIC has signed agreement with Arvind, Raymond and ABFR. We will supply khadi to these companies and they will design and sell it in their outlets across India,” said V K Saxena of KVIC. According to KVIC, there are some khadi institutions which do not have enough works to do. These kind of agreements will increase their income as well as artisans income. Raymond has already placed order of Rs 5 crore. ABFR has visited some khadi institutions to collect samples of the fabric. Saxena added, “Involvement of corporates in khadi industry shell help the artisans to generate more income. This will increase the demand of khadi and khadi institutions will get more orders.” The commission is expecting Rs 3,000 crore turnover in financial year 2017-18. It was about Rs 2,005 crore in 2016-17. The KVIC is targeting Rs 5,000 crore turnover by end of 2020. Raymond is planing to launch khadi products in October this year. Initially, it will launch in India only and from next year the Raymond khadi garments will be launched in overseas market. Gaurav Mahajan, president of apparel business at Raymond said, “We are planning to launch our khadi cloths under the brand name of Raymond Ready to Wear in October this year. We hope to do a business of Rs 60-70 crore from khadi this year.” The company would be sourcing around 400,000 metres of khadi from khadi institutions and it is expected to create three million man hours of employment for khadi weavers. Similarly, ABFR also planning to introduce khadi cloths under Peter England brand by end of this year. It is mandatory to have khadi mark to sell khadi products. KVIC has served notice to Fabindia for selling ready-made cotton garment as khadi products without appropriate approvals in February this year. The commission also asked Arvind not to sell khadi products without KVIC permission. The company had done fresh application to get the Mark which was accepted by the KVIC recently.
Source: Financial Express
Huntsman Textile Effects, leading global provider of high quality dyes and chemicals to textiles and related industries, has bagged an award for sustainability. The recognition by Dyestuff Manufacturers Association of India (DMAI) is for outstanding contribution in supporting environment, health and safety and sustainability for the textile industry. Further, the company has also been honoured for its excellence performance in exports of dyestuffs by a large scale unit. The awards were presented at the 67th annual general meeting of DMAI in Mumbai. Huntsman Textile Effects received the awards based on criteria such as innovation, creativity, development and quality. “We are honoured to receive the prestigious awards and are grateful to be recognised again this year,” said Nipun Soni, site manager for Huntsman Textile Effects’ Baroda plant. “This acknowledgement reaffirms Huntsman Textile Effects’ focus on innovation and continuous improvement in safety and hazard controls to meet industry demands. We continue to draw on the expertise of our people and established processes in product stewardship.” Winners of the DMAI awards 2016 were determined by judging panel from chemical, pharma, dyes and dye intermediates manufacturing industries among others. This is the second consecutive year when Huntsman Textile Effects has been presented DMAI awards. Last year, Huntsman was presented with awards for the same categories.
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1236.13 |
USD/Ton |
0% |
7/20/2017 |
|
VSF |
2346.43 |
USD/Ton |
0.32% |
7/20/2017 |
|
ASF |
2190.99 |
USD/Ton |
0% |
7/20/2017 |
|
Polyester POY |
1247.24 |
USD/Ton |
0% |
7/20/2017 |
|
Nylon FDY |
2946.00 |
USD/Ton |
0.51% |
7/20/2017 |
|
40D Spandex |
5033.36 |
USD/Ton |
0% |
7/20/2017 |
|
Polyester DTY |
5684.74 |
USD/Ton |
0% |
7/20/2017 |
|
Nylon POY |
1458.19 |
USD/Ton |
0% |
7/20/2017 |
|
Acrylic Top 3D |
2709.13 |
USD/Ton |
0.27% |
7/20/2017 |
|
Polyester FDY |
2368.64 |
USD/Ton |
0% |
7/20/2017 |
|
Nylon DTY |
1591.43 |
USD/Ton |
0% |
7/20/2017 |
|
Viscose Long Filament |
3079.23 |
USD/Ton |
0.73% |
7/20/2017 |
|
10S OE Cotton Yarn |
2147.32 |
USD/Ton |
0% |
7/20/2017 |
|
32S Cotton Carded Yarn |
3425.65 |
USD/Ton |
-0.02% |
7/20/2017 |
|
40S Cotton Combed Yarn |
3965.99 |
USD/Ton |
-0.02% |
7/20/2017 |
|
30S Spun Rayon Yarn |
2975.60 |
USD/Ton |
0% |
7/20/2017 |
|
32S Polyester Yarn |
1835.70 |
USD/Ton |
0% |
7/20/2017 |
|
45S T/C Yarn |
2738.74 |
USD/Ton |
0% |
7/20/2017 |
|
40S Rayon Yarn |
3123.64 |
USD/Ton |
0% |
7/20/2017 |
|
T/R Yarn 65/35 32S |
2324.23 |
USD/Ton |
0% |
7/20/2017 |
|
45S Polyester Yarn |
1939.32 |
USD/Ton |
0.77% |
7/20/2017 |
|
T/C Yarn 65/35 32S |
2294.62 |
USD/Ton |
0% |
7/20/2017 |
|
10S Denim Fabric |
1.38 |
USD/Meter |
0% |
7/20/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
7/20/2017 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
7/20/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
7/20/2017 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
7/20/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14804 USD dtd. 20/7/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
ICE cotton futures hit one-month highs on Thursday after a positive weekly exports sales report from the U.S. government suggested higher demand for the natural fiber, with prices further supported by a sagging dollar. The December cotton contract on ICE Futures settled up 0.87 cent, or 1.28 percent, at 68.98 cents per lb. It traded within a range of 68.10 and 69.25 cents a lb, its highest since June 21. "Today’s report is supportive for December futures," said Louis Rose, co-founder and director of research and analytics at Rose Commodity Group. The U.S. Department of Agriculture early on Thursday reported net upland sales of 27,200 running bales for 2016/2017 crop year, up noticeably from the previous week. For 2017/2018 net sales of 166,200 were also significantly higher from the previous week. Exports of 280,500 bales were up 44 percent from the previous week, the report showed. "U.S. cotton exports are likely to remain strong. The improving macroeconomic environment in the U.S., EU and China should support demand," Societe Generale said in a note. The dollar fell to its lowest in nearly two years against the euro on Thursday. The dollar index was down 0.49 percent. "The dollar is sharply lower and the Chicago grains are higher which are lending some powerful support to cotton," said Keith Brown, principal at cotton broker Keith Brown and Co in Moultrie, Georgia. U.S. corn and soybean futures rallied on Thursday to their highest respective levels in more than a week, supported by forecasts for hot weather that will stress crops in key growing regions, traders said. "There's beginning to be some belief that the crop is not as robust as one might think. There been a lot of hail and there has been too much heat in some areas," Brown added. Total futures market volume rose by 5,796 to 17,048 lots. Data showed total open interest gained 488 to 216,590 contracts in the previous session.
Source: Reuters
ISLAMABAD: In a mammoth blow to exports, Pakistan has lost its textile export share in global market by 23 percent from 2.2 percent to 1.7 percent raising questions on economic and trade policies of government functionaries, unfolds the latest presentation on restoration of viability and growth of textile industry prepared by Aptma. “The investment in textile and clothing massively declined by 44 percent in 2016-17 on account of which, the country’s textile production capacity has got impaired by 30-35 percent owing to which 150 industrial units have become non-functional resulting in 30 percent unemployment. More shockingly, the textile industry of Pakistan lost 15 percent technological edge advantage over competitors.” Following the non-performance of the textile sector on account of highest cost of doing business in the region, Pakistan is now facing the highest ever trade deficit of $35.609 billion and external deficit has swelled to $16.305 billion. The Aptma presentation also mentions as to how the other competitive countries have performed far more better than Pakistan showing that Vietnam is the country that ranked first showing 107 percent in growth in textile and clothing exports followed by Bangladesh with growth of 64 percent in exports of the said items, India with 31 percent, Sri Lanka 20 percent growth whereas Pakistan stayed in the red zone with negative growth of 11 percent. Aptma also came down heavily on the government saying that the bilateral trade agreements meaning by that free trade agreements (FTAs) finalized with various countries are faulty and failed to provide the level playing field to the real stake holders, export- oriented industrial sector. The country's perception stagmatised with law and order situation owing to which the militants activities has resulted in barring the investors from traveling to Pakistan through travel adviseries. Though the situation has improved on account of military operations against militants, but there is a need to launch the drive on part of the government to change the country’s perception so that the existing reluctance between the buyers and investors. The presentation also reveals that prime minister’s export led growth package has got reversed as despite the shortage of cotton-- 3.8 million bales, 4 percent customs duty and 5 percent sales tax has been re-imposed. It also mentions that energy cost is more than 30 percent of the total conversion cost in spinning, weaving and processing industries. And the industrial gas tariff of Pakistan is 100 percent whereas electricity tariff is 50 percent higher than the regional competitors. More importantly, gas is burdened with various add-ons, including (GIDC, UFG and cost of supply) and textile industry cannot pass system inefficiencies to its international buyers. Aptma Chairman Aamir Fayyaz, while talking to this scribe, demanded zero rating of raw materials for the textile industry, reducing cost of doing business, resolving the liquidity problems and filling up the policy-implementation dividing immediately to ensure restoration of the industry’s viability and revival of the export potential of the country. Fayyaz said the high cost of doing business, shortage of liquidity, the ongoing policy-implementation divide and realisation of only Rs03 billion out of Rs180 billion textile package are a few major concerns of the industry at present. He added that the viability of the textile industry has been eroded fast but the government was not able to pay required amount of attention to it. He pointed out that the production capacity worth $4 billion has been closed down all across the textile value chain, besides an potential $12 billion exports through conversion of basic textile into the value added garments. He said both the earliest revival and growth of textile industry is a must to steer the industry out of a bad shape and contribute to the exports of the country. He capsuled the dreadful state of affairs in the industry by stating that the production capacity has been impaired by 35 percent across the textile value chain. Textile exports have declined by 11 percent, its global market share has reduced by 23 percent, investment in the sector has dropped by 17 percent and 30 percent of the unemployment has already been redundant. He also pointed out that growth of textile and clothing exports are in negative zone in Pakistan against an exponential growth recorded in the competing countries during 2011 to 2017. He said the energy cost of industry in Pakistan is highest in the region that has reached to 30 percent of the cost in spinning, weaving and processing sectors. Both electricity and gas tariff are higher by 30 and 60 percent respectively in the region. Meanwhile, an additional burden of Rs3.63 surcharges of various nature has crippled the industry, and it is unable to pass on this cost to the international buyers, he added. Seeking revival-and-growth-focused measures to enable this industry to increase production, employment and exports in the larger economic interest, he has demanded full realisation of Rs180 billion textile package announced by the prime minister in January this year, duty/tax free import of cotton and polyester staple fiber, liquidation of all outstanding refunds of sales tax, withdrawal of all electricity surcharges, supply of RLNG at Rs400/MMBTU and strengthening of domestic commerce through tariff/non-affiliated measures to counter informal trade and dumped imports.
Source: The News International
The International Textile Manufacturers Federation (ITMF), an international forum for the world's textiles industry, has themed its annual conference for 2017 on technology, trade, and climate in disruptive times. Experts and delegates from the entire textile value chain will meet and discuss on the topic at ITMF's 2017 annual conference to be held in Bali, Indonesia from September 14-16. In a conversation with Fibre2Fashion, Christian Schindler, Director-General of ITMF, said, "The title of the general theme 'Technology, Trade, Climate: Orientation in Disruptive Times' indicates where the challenges come from. Since the financial crisis of 2008, the world has been changing ever faster driven by technological, political and environmental factors. Many of these factors are disruptive." Adding more on the relevance of the theme, Schindler said, "Fast fashion and e-commerce have transformed the textiles industry fundamentally, Industry 4.0 is becoming a reality much faster than expected, political patterns are undergoing fundamental change (nationalism and protectionism), and environmental challenges are more visible than ever, etc." The ITMF annual conference will also offer smaller committee meetings, workshops and seminars on specific topics that complement the conference. For example, there will be meetings of the Joint Cotton Committee, the Spinners Committee, the Home Textiles Producers Committee, and the Fibres & Applications Committee. Jaap de Hoop Scheffer, former general secretary of NATO and former foreign minister of the Netherlands will speak on Technology, Trade, Climate: Reshaping the Geopolitical Landscape on the second day of the conference.(HO)
Source: Fibre2Fashion
