NEW DELHI : The Centre is preparing to wean off textile and clothing exporters from direct subsidy schemes and replace them with indirect benefits as it may not be possible for the country to push the World Trade Organisation (WTO) deadline for abolishing export sops beyond next year. “The Commerce and Textile Ministries are already examining alternative schemes that are allowed by the WTO such as ones for quality upgradation and subsidising capital expenditure. However, the changes would happen gradually and there will be no immediate withdrawal of popular schemes like interest subvention or Merchandise Export from India Scheme,” a government official told Business Line. Delays in implementing WTO deadlines do not usually have an immediate negative repercussion on the erring country as disputes filed by other members take a couple of years to get resolved. If found guilty of bending rules, the erring country gets some more time for making the requisite changes in its rules. The US has been continuously asking India to re-haul its textile export policy. According to US calculations, the country should have done away with all forms of export subsidies for the sector by 2015.
US argument
According to the US argument, the WTO secretariat released calculations showing that India had reached “export competitiveness” in textiles and clothing no later than 2007. Since WTO rules gave members eight years from that date to phase out export subsidies, the transition period ended in 2015. New Delhi’s argument is that since the WTO undertook a computation of India’s world trade share following a member’s request only in 2011, and determined that it had retained competitiveness on the basis of data of 2009-10, it can be inferred that the phase-out period would end in 2018. India’s annual exports of textiles and garments are pegged at over $35 billion accounting for about 5 per cent of world trade share. “Although by our own admission the period for doing away with export sops in textiles is 2018, we don’t want exporters to panic as they are already reeling under the burden of GST. We can start the process of phasing out the schemes at our own pace next year,” the official said adding that a message is being given to textile exporters that the export incentives that they have got used to will ultimately have to go. Two popular export sops enjoyed by textiles and garments producers are the interest subvention scheme, where the government bears part of the interest burden on loans, and the MEIS scheme where en-cashable scrips are given based on the value of the exports. “Although direct export sops will be phased out, the government has no intention of reducing the total support extended to the textiles industry. Schemes of equal value or more will replace the ones that are phased out,” the official said.
Source: Business Line
The textile sector of Gujarat has urged the government to impose import duty on Chinese fabrics to protect small and medium companies. Pandesara Weavers' Cooperative Society Ltd and Southern Gujarat Chamber of Commerce and Industry (SGCCI) have already submitted presentations to the commerce ministry and the Confederation of Indian Industries (CII). SGCCI has said that Chinese fabrics are heavily under-voiced. The import has already reached Rs 5,500 crore, but it could be over Rs 10,000 crore. The Chinese government provides subsidies to the country’s textile sector and SGCCI has provided a list of all the benefits that they enjoy, said media reports quoting PM Shah, president, SGCCI. These subsidies reduce production cost per unit in China, thus making it difficult for Indian powerloom weavers. “The fabric quality imported from China is of synthetic fibre and man-made as cotton is costly in China as compared to India. This synthetic fibre fabric has created an increase in demand in the SMEs of Surat. This imported fabric is highly under-invoiced and would be valued around Rs 10,000 crore,” said Ashish Gujarati, president, Pandesara Weavers' Cooperative Society Ltd. India is losing out on the output despite possessing the production capacity, resulting in unemployment in the sector, said Gujarati. Fabrics imported from China are being priced anywhere between Rs 5 and Rs 15 per square metre, which is very cheap. Gujarati said that the fabrics should be priced at a minimum of Rs 50 per metre. He added that immediate steps should be taken to curb imports and halt clearance of undervalued fabrics by imposing heavy import duties apart from levying duties on man-made and fibre based fabrics. Import of fabrics should only be allowed under the automatic advancement scheme for the actual users, said Gujarati.
Source: Fibre2Fashion
The oversight body to be set up by the Centre under a new law to manage and administer 11 of the 12 major ports will have wide scope and “full teeth”, unlike the “toothless” rate regulator it will replace. This has triggered a backlash from private cargo handlers, who term it a “draconian” step. The Major Ports Adjudicatory Board, to be led by a presiding officer and two other members, will have the powers of a civil court under the Code of Civil Procedure, 1908, while trying a suit. It will also be deemed a civil court under Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. While the existing Tariff Authority for Major Ports (TAMP) deals only with rate setting for port trusts and private firms operating at these ports, the adjudicatory board will have larger scope. TAMP has been called a “toothless” regulator since it lacks powers to enforce its orders. Private operators, either individually or under the banner of the Indian Private Ports and Terminals Association (IPPTA), have often hauled TAMP to court over its rate cuts. Many such cases are yet to be decided on by the courts and till such time, private operators get to levy rates prevailing prior to the reductions ordered by TAMP. Sufficient competition Private operators have been lobbying for dismantling TAMP, arguing that there is “sufficient competition” in the sector for levying market determined rates. The board of a port authority will have the freedom to set rates on its own for services run by it, but with prospective effect, according to the Major Ports Authorities Bill. The port authority will also have powers to fix tariff for prospective PPP projects, which will only act as a reference tariff for purposes of bidding. PPP operators will be free to set rates based on market conditions when they start operations. Hence, existing private operators covered by the rate setting guidelines of 2005, 2008 and 2013 and tariff orders issued by TAMP under such guidelines will continue to be regulated by the new adjudicatory board. “This provision just results in shifting the tariff fixation responsibility to the same authority under a new name,” IPPTA, an industry lobby, said while opposing the continuation of tariff regulation and fixation by the adjudicatory board. “It is self-defeating. Continuance of the function of tariff fixation by the adjudicatory board is also, to concessionaires in major ports, discriminatory, given that state ports which handle more than 50 per cent of the country’s EXIM trade have the freedom of market determined tariff.” The provisions of this section appear not only to empower the adjudicatory board to perform the existing functions of TAMP but in fact enlarges the scope to include, for example, adjudication on disputes or differences concerning agreements between major ports and private operators.” While the proposed law vests the adjudicatory board with judicial powers to decide on disputes, it does not mandate any PPP concessionaire to refer disputes to the board. It provides an option to PPP concessionaires to refer disputes arising out of concession contracts to the board. “It is only when the concerned party refers the dispute to the adjudicatory board, the order passed by it would be final and binding on disputing parties,” the Shipping Ministry said while allaying the fears of private operators. “This clause is very draconian as it takes away the right of the concessionaires to approach the courts to seek relief. This clause must be deleted,” IPPTA said.
Source: Financial Express
One of the key benefits of the goods and services tax (GST) is the end of cascading of taxes, or there will not be any tax on tax. The cascading is avoided through full credit for taxes paid on inputs.
ET-PwC analysis explains how this mechanism will work
Source: Economic Times
Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for taxpayers under the composition scheme, non-resident taxpayer, taxpayer registered as an “input service distributor”, a person liable to deduct or collect the tax (TDS/TCS) and a person granted Unique Identification Number. So taxpayers are required to file returns depending on the activities they undertake.
However, for the first two months, the return filing process has been simplified by requiring all taxpayers to provide just the summary details in form GSTR-3B while the forms for outward and inward supplies—GSTR-1 and GSTR-2, respectively—can be filed 25 days after they are first due.
Here's a guide for you:
Source: Economic Times
Aditya Birla Fashion and Retail, Aditya Birla Fashion, Madura stores, Shital Mehta, Pantaloon Fashion Retail, ABFRL, Madura, GST rates Advertisement ABFRL is downsizing its chain of retail stores as part of a restructuring exercise. Aditya Birla Fashion and Retail is downsizing its retail chain of stores as a part of its restructuring exercise. Shital Mehta, chief executive officer, Pantaloon Fashion Retail, said on Thursday the company has shut 54 Madura stores and one Pantaloons store in Q1FY18. There are around 2,000 Madura and 213 Pantaloons stores operational in the country. “ABFRL will continue its focus to consolidate its operations in Madura and may shut few more stores in the coming quarter. It is an ongoing process and the consolidation was started last year. There will be some store closures in the next quarter before the operations stabilise. Pantaloons will not witness too many store closures maybe 1 or 2 non-performing stores will be shut in the financial year,” Mehta said on a post earnings conference call. While the company plans to shut loss-making stores, it also plans to add 100 to 150 Madura stores and around 40 to 50 Pantaloons stores in FY18. As of June 30, the company has total debt of Rs 1,800 crore comapred to Rs 2,000 crore debt in Q1FY17. “Our debt may go back to Rs 1,900 crore to Rs 2,000 crore by the end of financial year as we plan to expand,” Mehta added. Mehta said, GST has been rolled out across the value chain with minimal disruption to business. Final GST rates have been largely neutral for the industry as a whole with 5% tax (below Rs 1,000), 12% tax (above Rs 1,000) and 28% on leather accessories. “Organized value players have benefited from lower rates and we have cut rates in our Pantaloons stores by 2% to 3% on an average to pass on the benefits to our customers.” However, premium brands have been marginally impacted, Mehta said. In the first quarter of FY18, ABFRL reported a loss of Rs 20 crore compared to a loss of Rs 21 crore in Q1FY17. Revenues for the quarter rose 25% year-on-year to Rs 1,769 crore. The company’s Ebitda was up 7.8% year-on-year to Rs 82 crore. The Ebitda margin in Q1FY18 was 4.6% compared to 5.4% in Q1FY17. ABFRL’s like-to-like growth was 14% in Q1FY18. Results for Q1FY17 did not incorporate the financials of F21 acquired in Q2FY17 and the newly launched Innerwear business, the company said. In the quarter, Lifestyle brands registered a revenue growth of 14% driven by the retail like-to-like growth of 21%. Ebitda of Lifestyle brands grew 17%. Pantaloons continued its growth momentum with a revenue growth of 27% in Q1FY18 on a like-to-like growth of 14%. Pantaloons reported a 78% growth in Ebitda. Fast Fashion segment revenues tripled in Q1 due to addition of Forever 21; other businesses grew by 63%, the company said.
Source: Financial Express
Guwahati will host the National Handloom Day celebrations on August 7 for the first time with handloom products by artisans from the seven north eastern states all coming for display. The day will also see a fashion show. The development is part of the new focus on the north east by the government which wants to promote states’ rich art and craft culture. According to an agency report, the office of the Development Commissioner (Handlooms) under the Union Textiles Ministry is coordinating the event which will also see screening of a film made by Umrao Jaan fame director Muzaffar Ali showing the distinct handloom products from the region bearing Geographical Indication status. "The focus will be on the seven north eastern states so that each and every state is given due recognition by displaying their handloom and silk products," development commissioner (Handlooms) Shantmanu told a news agency. However, the Sant Kabir and national awards will not be presented to handloom workers on the occasion, as the government has decided to club these awards with the Shilp Guru awards for handicraft artisans, which will be presented at a function in the national capital, the report said. Artisans across the north east region spin magic weaves and craft goods which serve as a means of their livelihood. August 7 holds a special significance in India's freedom struggle as the Swadeshi Movement was formally launched on this day in 1905. The movement was marked with revival of domestic products and production processes, the report said.
Source: Fibre2Fashion
Aditya Birla Fashion and Retail, Aditya Birla Fashion, Madura stores, Shital Mehta, Pantaloon Fashion Retail, ABFRL, Madura, GST rates Advertisement ABFRL is downsizing its chain of retail stores as part of a restructuring exercise. Aditya Birla Fashion and Retail is downsizing its retail chain of stores as a part of its restructuring exercise. Shital Mehta, chief executive officer, Pantaloon Fashion Retail, said on Thursday the company has shut 54 Madura stores and one Pantaloons store in Q1FY18. There are around 2,000 Madura and 213 Pantaloons stores operational in the country. “ABFRL will continue its focus to consolidate its operations in Madura and may shut few more stores in the coming quarter. It is an ongoing process and the consolidation was started last year. There will be some store closures in the next quarter before the operations stabilise. Pantaloons will not witness too many store closures maybe 1 or 2 non-performing stores will be shut in the financial year,” Mehta said on a post earnings conference call. While the company plans to shut loss-making stores, it also plans to add 100 to 150 Madura stores and around 40 to 50 Pantaloons stores in FY18. As of June 30, the company has total debt of Rs 1,800 crore comapred to Rs 2,000 crore debt in Q1FY17. “Our debt may go back to Rs 1,900 crore to Rs 2,000 crore by the end of financial year as we plan to expand,” Mehta added. Mehta said, GST has been rolled out across the value chain with minimal disruption to business. Final GST rates have been largely neutral for the industry as a whole with 5% tax (below Rs 1,000), 12% tax (above Rs 1,000) and 28% on leather accessories. “Organized value players have benefited from lower rates and we have cut rates in our Pantaloons stores by 2% to 3% on an average to pass on the benefits to our customers.” However, premium brands have been marginally impacted, Mehta said. In the first quarter of FY18, ABFRL reported a loss of Rs 20 crore compared to a loss of Rs 21 crore in Q1FY17. Revenues for the quarter rose 25% year-on-year to Rs 1,769 crore. The company’s Ebitda was up 7.8% year-on-year to Rs 82 crore. The Ebitda margin in Q1FY18 was 4.6% compared to 5.4% in Q1FY17. ABFRL’s like-to-like growth was 14% in Q1FY18. Results for Q1FY17 did not incorporate the financials of F21 acquired in Q2FY17 and the newly launched Innerwear business, the company said. In the quarter, Lifestyle brands registered a revenue growth of 14% driven by the retail like-to-like growth of 21%. Ebitda of Lifestyle brands grew 17%. Pantaloons continued its growth momentum with a revenue growth of 27% in Q1FY18 on a like-to-like growth of 14%. Pantaloons reported a 78% growth in Ebitda. Fast Fashion segment revenues tripled in Q1 due to addition of Forever 21; other businesses grew by 63%, the company said.
Source: Financial Express
After yoga, the Narendra Modi government will promote khadi as an international brand, with a focus on the diaspora. According to a strategy approved by the Centre, the ministry of micro, small and medium enterprises (MSME) might encourage and incentivise Indians settled abroad or those of Indian origin to operate khadi outlets and shops. In the first phase, the ministry plans to exhibit ‘Brand Khadi’ in all embassies and consulate offices, either within the premises or outside. The exhibitions would showcase khadi products and items, with details on production and value for villages. In the second phase, the ministry plans to target the diaspora through regular interventions and exhibitions, besides participating in their social functions, to publicise khadi. In the third and final stage, there would be collaborations with the department of commerce to boost export of khadi. The proposal was recently approved by Kalraj Mishra, the minister for MSME. “A lot of efforts have been made to take khadi abroad as a brand from India but none could succeed. This time, a fullfledged action plan has been devised, with fixed timelines, to ensure khadi becomes India’s next big soft power after yoga,” Shailesh Vats, spokesperson of the ministry, told Business Standard. The central government aims to increase the production of khadi to ~2,000 crore in terms of market value in 2017-18, described as helping to generate additional employment of 1.95 million people, primarily in rural India. In 2014-15, production was estimated at ~880 crore in market value; in 2015-16, at ~1,066 crore, in 2016-17, to ~1,396 crore. Sales were ~1,170 crore in FY15 and ~1,510 crore in FY16. In FY17, it jumped 32.8 per cent to ~2,006 crore, minister of state for MSME, Giriraj Singh, told Parliament recently. The Centre has granted financial assistance of ~25 lakh per unit in urban areas and ~20 lakh in rural areas for renovation and modernisation of sales outlets under the Khadi and Village Industries Corporation. It has also signed agreements with the National Institute of Fashion Technology, the Aditya Birla Group and Raymond to boost the quality and sales of khadi products.
Source: Business Standard
NEW DELHI: India is considering developing a web portal to obtain a more accurate measure of factory output, a move that comes after the government revamped the index of industrial production (IIP). Factories will be able to directly furnish monthly production data on the portal, officials said, explaining that this will make the IIP more robust and reduce discrepancies in quick and revised estimates. The proposed online data collection will spell a departure from the current practice of the statistics office sourcing factory data from 14 agencies including various government departments and industry associations. The idea behind the portal is to reduce dependence on source agencies, reduce inconsistencies and the vast discrepancies in various estimates, said one of the officials, who did not wish to be identified. For instance, the IIP for February was revised from 1.9% to 0.8%. At present, agencies such as the departments of industrial policy and promotion, and fertilisers, along with the Tea Board and Office of Textile Commissioner supply data to statistics office through e-mail, fax or post. The IIP has invited repeated criticism for not adequately capturing the ground situation, both due to data collection issues and the composition of the index. There have been large differences at times between the rates of manufacturing output growth reported by IIP and those emerging out of the Annual Survey of Industries, which comes about two years after the end of the financial year concerned. However, the idea of a portal is at a nascent stage and the statistics ministry is yet to work out how detailed the portal will be. “It is still in designing stage. The problem is to get our source agencies on board,” the official said. Another person aware of the procedure said the problem with the current system is that agencies and factories don’t submit their data on time despite beings sent reminders. An online system could replace these manual reminders with auto generated ones. “It is a positive move especially for reducing time lags. It will improve the accuracy of IIP by doing away with intermediaries and faster data collection would lead to quicker processing. So, it will enrich the database,” said DK Joshi, chief economist at Crisil.
Source: Economic Times
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$ 49.38 per barrel (bbl) on 26.07.2017. This was higher than the price of US$ 47.92 per bbl on previous publishing day of 25.07.2017. In rupee terms, the price of Indian Basket increased to Rs. 3181.31 per bbl on 26.07.2017 as compared to Rs. 3084.05 per bbl on 25.07.2017. Rupee closed weaker at Rs. 64.42 per US$ on 26.07.2017 as compared to Rs. 64.36 per US$ on 25.07.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 26, 2017 Previous trading day i.e. 25.07.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.38 (47.92) |
|
(Rs/bbl) |
3181.31 (3084.05) |
|
|
Exchange Rate |
(Rs/$) |
64.42 (64.36) |
Source : PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1224.95 |
USD/Ton |
0% |
7/27/2017 |
|
VSF |
2346.28 |
USD/Ton |
0% |
7/27/2017 |
|
ASF |
2190.84 |
USD/Ton |
0% |
7/27/2017 |
|
Polyester POY |
1236.05 |
USD/Ton |
-0.95% |
7/27/2017 |
|
Nylon FDY |
3064.22 |
USD/Ton |
0.49% |
7/27/2017 |
|
40D Spandex |
4959.01 |
USD/Ton |
0% |
7/27/2017 |
|
Polyester DTY |
2368.48 |
USD/Ton |
0% |
7/27/2017 |
|
Nylon POY |
1583.92 |
USD/Ton |
-0.47% |
7/27/2017 |
|
Acrylic Top 3D |
3182.65 |
USD/Ton |
0% |
7/27/2017 |
|
Polyester FDY |
5684.35 |
USD/Ton |
0% |
7/27/2017 |
|
Nylon DTY |
1450.69 |
USD/Ton |
-0.51% |
7/27/2017 |
|
Viscose Long Filament |
2797.77 |
USD/Ton |
1.07% |
7/27/2017 |
|
30S Spun Rayon Yarn |
2975.40 |
USD/Ton |
0% |
7/27/2017 |
|
32S Polyester Yarn |
1825.21 |
USD/Ton |
-0.16% |
7/27/2017 |
|
45S T/C Yarn |
2738.56 |
USD/Ton |
0% |
7/27/2017 |
|
40S Rayon Yarn |
1909.59 |
USD/Ton |
0% |
7/27/2017 |
|
T/R Yarn 65/35 32S |
2294.47 |
USD/Ton |
0% |
7/27/2017 |
|
45S Polyester Yarn |
3123.43 |
USD/Ton |
0% |
7/27/2017 |
|
T/C Yarn 65/35 32S |
2264.86 |
USD/Ton |
0% |
7/27/2017 |
|
10S Denim Fabric |
1.38 |
USD/Meter |
0% |
7/27/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
7/27/2017 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
7/27/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
7/27/2017 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
7/27/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14803 USD dtd. 27/7/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Islamabad: Islamabad Chamber of Small Traders (IST) on Thursday lauded the decision of the government to provide Rs15 billion to the textile sector under the PM’s package. Textile sector is the mainstay of the economy which must be supported and the decision will infuse confidence in this sector which continues to lose the competitive edge in the international market, it said. The government should try the full implementation of the package and resolve the issue confronting textile sector that includes energy crisis, energy price, refund and taxation issues, said IST Patron Shahid Rasheed Butt. He said that decision to release Rs15 billion by August 14th is laudable and it should be implemented within time to give a message that government is giving priority to facilitating the textile sector. The move comes at a time when country’s overall exports have gone down from around $24 billion to around $20 billion per annum over the past few years of which textile exports constituted more than half of the total shipments. Shahid Rasheed Butt said that exports continue to slide since years while imports and trade deficit has crossed all the limits pushing country at the brink.The government should take steps to control imports and boost exports otherwise the country will face very serious problems, he added. He said that government has announced two packages for exporters but could not implement it which resulted in uncertainty among the exporters.The government had fixed the annual deficit target at $20.5 billion but missed it by a wide margin.
Source: News International
Some German buyers have cancelled trips to Turkey after the rise in political tension between Ankara and Berlin, Seref Fayat, head of the Turkish Clothing Manufacturers Association, said on July 25, according to Reuters. The reorientation and toughening of Germany's foreign policy towards Turkey has included stark warnings to business travellers and tourists to show extra caution when it comes to visiting the country, given the great number of arrests amid its longrunning state of emergency. German Finance Minister Wolfgang Schaeuble has even warned that Turkish President Recep Tayyip Erdogan is “jeopardising the centuries-old partnership”between Turkey and Germany with the lack of regard being shown for human rights under his crackdown. "We may not be able to achieve our annual export projection for the year if the expected improvement doesn't take place with our biggest customer Germany," Fayat reportedly added. Germany is the Turkish textile industry's largest export market, while the textile industry accrues the second largest share of Turkey's export revenues, trailing only the automotive industry. In H1, Turkey's textile export value declined by 6% y/y to $8.2bn despite an 8% annual growth in overall export volume. In 2016, Turkish textile exporters fell $1bn short of their target with an annual realisation of $16bn. The failure was blamed on the July 15 failed coup attempt that temporarily derailed the economy. The EU accounted for a 70% share in Turkish textile exports last year with Germany alone buying consignments worth $2.5bn. Fayat expects the domestic textile market will grow around 10% y/y to TRY60bn (€14bn) in 2017.
Source: Intelli News,
rel exports to Japan, Bangladesh's most promising export destination in Asia, dipped 3.88 percent in fiscal 2016-17, which exporters blame mainly on the terrorist attack in Gulshan last year that killed seven Japanese nationals. Exports of garment products to the far-eastern nation -- whose apparel market is worth about $40 billion a year -- raked in $744.47 million last fiscal year, according to data from the Export Promotion Bureau. “The slowdown in shipment growth to Japan is temporary,” said Tareq Rafi Bhuiyan, secretary general of Japan Bangladesh Chamber of Commerce and Industry, adding that Japanese retailers have once again started coming to the country to place orders. Not only clothing retailers, but Japanese multinationals that have operations in Bangladesh for many years have expanded their operations and some are on their way to investing more after the Holey Artisan Bakery attack, he said.
Bhuiyan went on to cite the recent survey by the Japan External Trade Organisation in which Bangladesh was the top investment destination for Japanese entrepreneurs out of 20 Asia and Pacific countries. Japanese retailers are more thorough than others: they physically survey the production units to verify the compliance standards. “This was one of the major reasons for slowdown in garment export to Japan last fiscal year. Many Japanese retailers either deferred their trips to Dhaka or cancelled them altogether after the attack,” Bhuiyan said. Garment shipments to Japan from Bangladesh began after the adoption of 'China Plus One' policy by the Japanese government in 2008 to reduce overdependence on China for goods like apparel, electronic gadgets and home appliances. The 'China Plus One' policy was supplemented by the relaxation of the Rules of Origin by Japanese government for least-developed countries, which worked in Bangladesh's favour. Bangladeshi garment manufacturers have been enjoying zero-duty benefit on apparel exports to Japan even if the raw materials were imported. The fiscal stimulus package introduced by the government for new markets in 2009 has also helped in boosting exports to Japan. The government has been handing out cash incentives upon export to destinations other than the US, the EU and Canada. “We have to work a lot to grab more market share in Japan,” said Syed Mohammad Tanvir, director of Pacific Jeans, a leading garment exporter. Pacific Jeans' shipments to Japan are increasing but slowly, he said, while declining to share any figure. Until now, Japan imported 95 percent of its annual requirement for garment items from China, he said.
Overall exports to Japan also declined 5.6 percent to $1.01 billion in fiscal 2016-17. Japan is the only destination in Asia where Bangladesh's overall exports crossed the $1 billion mark in each of the previous two years.
Source: The Daily Star
A SMALL-SCALE business entrepreneur dealing in leather garments has called on Government to assist small and medium entrepreneurs (SMEs) with capital to enable them expand their operations and contribute to youth employment. Victor Njekwa is one of the few Zambian SMEs that is slowly penetrating the leather industry by making products such as belts, wallets, school shoes, sandals and slippers. Mr Njekwa, who is based in Livingstone, said leather value chain has the potential to create jobs, and contribute to poverty reduction and wealth creation. “The demand for leather garments is on the increase with orders received from lodge owners, who sell to tourists. “Cold season is a peak period when the city receives a lot of tourists and also boost my business,” he said. Last year, Mr Njekwa was one of the participants that took part in the Leather and Textile Expo organised by the Ministry of Commerce in Lusaka that attracted about 121 SME exhibitors, six large companies and eight statutory bodies. At the expo, whose theme was “Enhancing competitiveness of the leather and textile sectors through value addition”, Mr Njekwa was presented with an award worth K10, 000 of inputs for emerging the best theme interpreter. Mr Njekwa is also one of the few Zambian SMEs that have participated in the trade mission to the Democratic Republic of Congo organised by the Ministry of Commerce, Trade and Industry which he described as a very good market for entrepreneurs. He urged SMEs to seize the DRC market, saying it is so huge that it can consume majority of Zambian products. Meanwhile, Makaladi Anafi, a Mazabuka trade dealing in raw hide, has bemoaned the low demand of the commodity, which is now fetching K45 following Government’s decision to impose a ban on export of hide. “Many people have stopped trading in raw hide because it’s difficult to find market. The price has dropped from K100 to K45,” he said.
Source: Zambiua Daily Mail
A trial of new cotton technology as a wet season crop has been picked in the Ord Valley but results won’t be known until later this year. The genetically modified variety Bollgard 3 was planted at Ceres Farms in February and picked last Tuesday and Wednesday. It has shown a greater resistance to insects compared with non-GM and Bollgard 2 varieties. CSIRO principal research agronomist Stephen Yeates said samples would now be sent to a cotton research facility in NSW and processed through a gin. Until then, he said, they wouldn’t quite know how good the yield is. “We were hoping within 10 to 15 per cent of the top growing areas in NSW, which is the top in the world for yields,” Mr Yeates said. “We were the last people to pick cotton so we’re in the queue for the testing. “Most of Australia picked in April and May, a couple of months before.” Mr Yeates said the results from the trial should be back in October. He said there had been a lot of interest from growers and plenty of community support for the trial. “It was pleasing because it was quite challenging to grow in the wet on a small scale but Matt Gray did a fabulous job to beat the weather,” Mr Yeates said. “The local community here has been fantastic and Penny Goldsmith (from Ord River District Co-operative) has helped out and done a lot of the hard yards.” Cotton was previously grown in the Ord but needs a large scale of operation of more than 10,000 hectares to be viable for the valley. Kununurra Agricultural Investments has flagged its the possibility of building a gin and growing cotton on Carlton Plains and Mantinea. Such a move could benefit smaller growers who could grow their own wet season cotton crop and get in on the market.
Source: The West Australian
KARACHI: Federal Secretary for Textile Hassan Iqbal on Thursday assured the representatives of value added textile sector of resolving their grievances relating to his ministry and also to campaign for them to get relief from other concerned government departments as well. The government had released Rupees four billion on July 26, for payment of refund claims by exporters and industrialists, and the amount would be paid soon, he said. The Secretary was speaking at a meeting with representatives of various value-added textile associations led by Muhammad Jawed Bilwani, Chief Coordinator of Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and Chairman Pakistan Apparel Forum, here at PHMA House. Other leading textile exporters included Rafiq Godel, Khwaja M. Usman, Saleem Parekh and Riaz Ahmed. Muhammad Jawed Bilwani and Chairman, PHMA South Zone, Riaz Ahmed briefed the Secretary Textile on the issues facing the value-added textile sector and the textile industry in general. These mostly related to Federal Board of Revenue and high cost of inputs ; making them uncompetitive in the international market which had caused decline in the country's exports. They gave presentations comparing the cost of inputs and growth of textile industry and the exports against Pakistan's regional competitors including China, India, Bangladesh, Sri Lanka and Vietnam. The business leaders said that Pakistani businessmen had made investments in Sri Lanka, Bangladesh and other countries finding more incentives there. They urged the government that utilities tariff be separated for export oriented industries on the pattern of fertilizer and agriculture sectors. This would increase the rate of conversion of cotton or value-addition boosting the textile exports of the country. They also demanded the payment of all the refund claims of the business community especially the exporters so that they could continue their business operations and the exports of the country might not be affected further. They also demanded the release of the remaining amounts linked to first textile policy and the second textile policy, and under the Prime Minister's Exporters Package. Federal Secretary for Textile Hassan Iqbal said that the government intended to pay off the refunds at the earliest possible. The government and the textile ministry were trying their best to strengthen textile sector, which had big share in the country's economy. FBR had assured that Rupees twenty billion would be paid as refunds before August 14, 2017, he added. He informed that during June 2017, textile exports had gone up by 16 percent and hoped that textile exports would be increased as there was twenty percent increase in cotton crop in Punjab and more crop in other areas of the country.
Source: Business Recorder
NEW YORK—“Fashion is perpetually new,” said Guglielmo Olearo, international exhibitions director of the Première Vision New York textile show, which took place July 18–19 at Pier 94 in Manhattan. In its 35th edition, Première Vision featured 322 exhibitors from around the world—including producers of textiles, leather, trimmings and accessories—as well as fashion designers looking for suppliers and inspiration. “Today fashion is finding a new business model,” said Olearo. “They need to adapt, reengineer their systems.” Olearo said there are two big market trends. “The first is linked to sustainability—to smart products, taking care of the environment. The other macro trend is re-shoring,” he said, referring to the shift toward more local manufacturing by some companies in the fashion industry. Though large, high-volume fashion brands will likely continue production in China and elsewhere overseas, “in Europe, the surrounding countries like Bulgaria, Romania and North Africa are fully booked now,” Olearo said. “The time-to-market has to be quicker than in the past because the collections are renewed with higher frequency.” Indeed, local manufacturing is a focus of Première Vision’s partnership with the Council of Fashion Designers of America. Now in its second year, the partnership also supports emerging designers with scholarships and low-minimum orders. Though most exhibitors at PVNY are international, “we host companies from the New York area that are specialized in garment manufacturing,” Olearo said. One such company was New York Binding Co., which creates custom trimming, embellishment, pleating and more from its factory in Queens. NYBC came to Première. Vision as part of CFDA’s Manufacturing Initiative. “They’re showing a lot of support to manufacturing businesses here and enabling them to grow and stay current,” said Anni Levin, who handles social media and marketing for NYBC. Another New York–based company at this edition of Première Vision was Vespertine, which manufactures reflective bicycle apparel using sustainable fabrics in Manhattan’s garment district. “The idea is that it’s beautiful clothing with the added bonus of being reflective at night,” said designer Sarah Canner. She comes to the show twice a year because “it brings all the vendors together and makes it so much easier. I’m sort of a one-man band. Seeing the fabrics in real life is always exciting.” One textile producer she connected with this season was Tintex, a Portugal-based company that supplies high-end brands such as Armani, Burberry and Ralph Laurenand recently strengthened its commitment to sustainability. “People think something sustainable is not beautiful,” said Ana Silva, head of sustainability for Tintex. Ricardo Silva, head of operations for Tintex, pulled out a sample of organic cotton with a lustrous finish and a textured jacket made from the recycled fabric Ecotec. “When they feel the fabric and learn about the technical performance and the process behind it, they are really amazed,” he said. Olearo believes that these developments in the fashion industry are helping to reach today’s more-conscious consumers. “They are extremely informed thanks to social media and new technology,” he says. “You have to make people go, ‘Wow!’” Heather and Kevin Maldonado, owners of Studio Bert Forma, were at Première Vision New York with French mills Velcorex and Philea, Korean mill DK&D and Turkish mill Bezsan Tekstil. Studio Bert Forma is based in Los Angeles with an office in New York. Kevin Maldonado said the mood among designers and fabric buyers seemed more upbeat than in recent seasons. “The nice thing is with all the shows, most of our major customers came,” he said. Among the brands spotted at the show were Trina Turk, Marciano, NYDJ, Bonobos, Nau, Cuyana, Banana Republic, Tommy Hilfiger and Diane Von Furstenberg.
Source: Apparel News
