Uttar Pradesh government is working on offering a slew of incentives to investors in the textile sector, which Chief Minister Yogi Adityanath says will be the state’s second-largest employment provider after agriculture. According to the draft policy, it will provide special incentives to investors in Bundelkhand, eastern UP and central UP as well as the west UP areas barring areas under the Noida, Greater Noida and Yamuna Expressway Development authorities. The government will facilitate private or government land to investors for setting up their units. It will also give assistance in setting up textile complexes, clusters for units of small and medium sizes, as well as textile parks, the draft says. The government is likely to announce its list of incentives in the form a policy for textile, handloom and silk in the coming weeks. Textile Minister Satyadev Pachauri said the policy is being finalised and state cabinet will approve it soon. In his speeches, Adityanath has stressed that the sector has much potential to create jobs. “We need to sign Memorandums of Understanding (MoUs) with textile mills in the state so that they can train youths. The mills that are not running need to be re-started. This can be done by the government or through PPP(Public Private Partnership) model,” he said at a state government programme on skill development on July 15. At the same programme, he had said his government had set a target of providing jobs to 70 lakh youths in next five years. Pachauri, an MLA from Govindnagar in Kanpur, the erstwhile hub of the textile industry in the state, said the government said private investors should show interest. “The government can only provide assistance. It does not have the resources to revive the mills on its own. We are focusing on promoting more investment in the textile sector from private sector. For that, we will provide incentives to smaller units as well as big units,” said Pachauri. The draft of textile policy states that UP imports two-third of textile raw material and textile products. The policy aims to promoting all aspects of handloom, textile and sericulture, from the production of raw material to preparation of the final product. Pachauri said the government is planning to start two silk reeling units in the state so that the farmers could supply their raw materials there instead of selling it to units in other states. He said incentives will also be provided for restarting shut powerlooms.
Other points
• n 100 per cent waiver of stamp duty for new textile units
• n Extension of existing units in Bundelkhand and eastern UP
• n 75 per cent waiver in central UP and western UP (barring Noida, Greater Noida and Yamuna Expressway authorities)
• n 100 per cent waiver of stamp duty for new cocoon production units and reeling units of silk.
• n Refund 90 per cent of net state GST from unit that will invest more than Rs 5 crore in Bundelkhand or eastern UP, for 10 years from the date of the first sale of its products.
• n Refund will be 75 per cent in of net state GST from unit in central UP and west UP (except the Noida, Greater Noida and Yamuna Expressway authorities).
• n Provisions for rebate in electricity duty and mandi fees
• n Subsidies on loans taken for investment in the textile units, in paying a certain share of Employee’s Provident Fund for those units employing 200 or more untrained workers
Source: PTI
The Indian government has taken a decision to organise workshops to make the people aware about Goods and Services Tax (GST). The Centre and states have been organising GST awareness campaigns through workshops all across the country to spread awareness on GST. They are being conducted in a town hall format by the field formations of CBEC. The Power Point presentations and resource material for the workshop have been provided by National Academy of Customs, Indirect Taxes and Narcotics (NACIN), said Santosh Kumar Gangwar, minister of state for finance in a written reply to a question in Rajya Sabha. All field formations are involved in conducting these workshops, and even though a city-wise record is not maintained, an online portal has been especially created by the Directorate General of Systems, Central Board of Excise and Customs (CBEC) for online reporting of awareness campaigns all over India. The website, apart from capturing data of the events held, also provides information to the public on upcoming events (date and place) for their convenience. A typical GST Awareness workshop is conducted for half a day (about 3 hours). A total of 5,198 workshops have been held till date (28.07.2017) all over India in almost all cities. These workshops were started in a structured manner from last week of March 2017, added Gangwar. Numerous senior officers of CBEC, Commercial Taxes Department and officers trained by NACIN are conducting these workshops.
Source: Fibre2fashion
A large number of traders, especially from the textile sector, are enrolling themselves under the GST. Over 90 per cent of the VAT dealers have switched over to the new tax system. After holding protests for long against the imposition of the GST on unstitched clothes, textile traders have started approaching the District Excise and Taxation Office to get themselves registered. Once known as the Manchester of India, the holy city-based textile industry is now known for shawl, tweed, blazer, blanket, besides suiting and shirting. The traders are grappling with myriad problems like cost and quality amid global competition. A leading yarn manufacturer, Kamal Dalmia, said apart from five per cent GST on unstitched clothes, cotton and natural yarn, which were not covered under excise tax, would be charged five per cent GST and man-made yarn 18 per cent. In addition, apparel and readymade garments valuing less than Rs 1,000 will be charged five per cent and the products above Rs 1,000 will invite 12 per cent tax. Job work on apparel will attract 18 per cent GST. He said the spate of taxes on the textile sector would make the readymade garments fall under the luxury segment. District Excise and Taxation Commissioner (DETC) Harvinder Singh said textile traders, who had been resisting the new tax, were now getting themselves registered for the GST. Out of 20,798 VAT dealers, over 19,000 have been registered under the GST. Among them, a considerable number of traders deal are related with the textile sector. He informed that many VAT dealers had become ineligible to be listed under the GST due to their low annual turnover. Earlier, a dealer with over Rs 5 lakh taxable turnover used to get VAT registration. Now, only those dealers with over Rs 20 lakh turnover can apply for the GST. The GST has provided respite to marginal traders, he added.
Source: The Tribune
SURAT: A group of textile traders running the anti-GST movement in the market have cancelled the proposed protest programmes including public meeting and rally after the city police commissioner denied permission on Wednesday. Sources said that the anti-GST traders had organised a public meeting on Thursday and a rally on August 4 to protest 5 per cent GST on MMF fabric. The protest programmes were organised to exert pressure on the Central Government and the GST Council to accept their demands at the upcoming meeting on August 5. Meanwhile, majority of the textile traders who are back to business after the 18-days long indefinite strike that ended on July 18, have heaved a sigh of relief after the permission to hold a public meeting and rally was denied by the police commissioner. Textile trader, Hitesh Sanklecha, who is leading the anti-GST movement said, "We have put off our public meeting and rally events after we were denied permission by the police commissioner. We do not know under which circumstance, the police commissioner denied the permission, but we will adhere to the law and order arrangements."
Source: The Times of India
The GST Council in likely to consider this week lowering of tax rates for job works for making garments to 5 per cent from 18 per cent, a source in the finance ministry has said. The panel, headed by Finance Minister Arun Jaitley and comprising of representatives of all the 29 states, is also likely to consider removing anomaly in taxation in cases where the intermediate goods are taxed at the highest bracket than the tax on final output, the source said. It will be the first full fledged meeting of the GST Council, chaired by Jaitley and comprising state counterparts, after the roll out of the new indirect tax reform on July 1. The Council had on July 17 discussed, via video conferencing, hiking cess rate on cigarettes as there was some anomaly in the rate fixed earlier. Apart from reviewing the roll out of the Goods and Services Tax (GST) regime, the 19th meeting of the Council on August 5 may take a look at streamlining the anomalies raised by the industry over the past one month, said sources, who did not want to be named. Currently, services by way of job works in relation to textile yarns (other than man-made fibre/filament) and textile fabrics attract 5 per cent GST. Other job works in relation to garments attract an 18 per cent levy. Sources said the Council may look at streamlining it and being all job works, including for making garments from fabric, under the 5 per cent slab. "This would help the textile sector as the final product was taxed between 5-12 per cent," the source said. As per the rates decided by the Council, in the textiles category, silk and jute fibre have been exempted, while cotton and natural fibre and all kinds of yarns will be levied a 5 per cent GST. Man-made fibre and yarn will, however, attract a 18 per cent tax rate. All categories of fabric attract a 5 per cent rate. Man- made apparel up to Rs 1,000 will attract a 5 per cent tax and those costing above Rs 1,000, will attract 12 per cent. JD SA
Source: PTI
Mumbai: More than 31% of the chief financial officers (CFOs) from various companies feel implementation of GST is challenging and manufacturing is the most affected sector, according to a recent survey. Further, over 54% CFOs believe that the impact of demonetisation has been neutral, while 56% are “highly optimistic” of the country’s macro-economic growth in the next 4-5 years, the Deloitte Annual CFO survey said. “The country remains optimistic about economic prospects, as it remains buoyant post demonetisation and amongst global uncertainties,” the survey report noted. Given the macro-economic trends that point to a possible global growth revival, there will be opportunities to increase exports and investment which have been a concern for the past few quarters, it said. Technological upgradation is among the key focus area of most CFOs, followed by analytical solutions. Other focus areas include cyber risks, cloud solutions and social media marketing among others, the report noted. As far as investments are concerned a majority of the CFOs are focused on consumer and market expansion, followed by technology and innovations, the survey noted. With the Indian economy adopting GST, companies have shifted their focus to supply chain modification, inventory cost management which might disrupt their working cycles, the report observed. “This change could fuel inflation in the economy as the tax burden has risen. However, it is believed that better flow of input credit will negate the impact of higher rates on services,” it said. Nearly 51% of the CFOs said that there is high credit availability at cheaper cost, better than last year’s expectations of 28 per cent. The key focus area for 44 per cent of the CFOs is current geographies in lieu of entering new markets; of whom more than 50 per cent CFOs are from energy, manufacturing, technology, media and telecommunication sectors. The survey represents the view point of over 200 CFOs in India. The respondents include listed and unlisted companies, from both private sector and PSUs; Indian companies and the MNCs headquartered in India as well as overseas.
Source: PTI
The Haryana government’s Skill Development and Industrial Training Department is considering providing skill training to about 1,33,100 youth this fiscal as part of efforts to augment employment opportunities in the state, according to a news agency report. The sectors include garment and textiles, beauty and wellness, agriculture and retail. The Haryana Skill Development Mission (HSDM) will impart training to 50,000 and the remaining will be trained by different government departments. Out of the 50,000 targeted by HSDM, 14,000 would receive training under the centrally-sponsored state-managed component of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and 5,000 through Driver Training Schools. There is also a proposal to set up branches of National Institute of Fashion Technology, National Institute of Design (NID), Multi Skill Development Centre, Pradhan Mantri Kaushal Kendra (PMKK) and India International Skill Centre (IISC) in the state. The HSDM has listed 23 training providers which would impart training as per National Skills Qualifications Framework (NSQF) in several fields, including telecommunication, security, healthcare, automotive, banking, financial services and insurance, logistics, electronics and plastic manufacturing, the news agency report quoted a Department spokesman as saying. Under the Smart Gram Initiative, a skill training centre has been set up in Daula village of Gurugram district in which youth of five villages adopted by the Indian President are being given training. Apart from this, the Haryana Vishwakarma Skill University (Transit Campus) has been made operational from Gurugram.
Source: Fibre2Fashion
AHMEDABAD/COIMBATORE : Notwithstanding crop damage due to floods in Gujarat, the largest cotton producing state, India’s cotton output in the forthcoming 2017-18 season starting October is seen increasing by 10-15 per cent on rise in acreage across the country. Besides, a favourable monsoon in most parts of key growing states such as Maharashtra and Andhra Pradesh, and in North India, is aiding the output. The cotton trade estimates the output to be higher, by 10-15 per cent, for 2017-18 over last year’s output of 337.25 lakh bales of 170 kg each. Per the Union Ministry of Agriculture, cotton had been sown on 111.55 lakh hectares till July 28, as against 92.33 lakh hectares witnessed for the same time last year, thereby indicating an increase of close to 21 per cent in the acreage. Maharashtra has registered kharif cotton sowing of over 38.47 lakh hectares, while in Gujarat the area stood at 25.84 lakh hectares. However, with the recent flooding in the key growing regions of Gujarat, the authorities expect a damage of about 30 per cent to the crop in the State. “Trade and government estimates put the acreage growth at about 20 per cent. But we still have monsoon days left and it is unpredictable about the rain fury in other parts. Hence, estimating the output may be speculative,” said Nayan Mirani, President, Cotton Association of India (CAI), the apex trade body. “However, considering the existing factors and the rainfall, the acreage will comfortably increase by 10-12 per cent and we will have almost equal increase in the production volume too,” he added. Kharif cotton sowing is completed in most parts of the country and fresh arrivals are likely to begin by mid-September. J Thulasidharan, Chairman, Confederation of Indian Textile Industry, said the cotton crop situation would be clear only by end August. “The crop needs some rain during August-September, and the pest attack also happens after 140 days of the crop. The changes in the crop will have to be assessed at regular intervals,” he said and added that a small portion of the area (around 6 lakh hectares) stood damaged in Gujarat, but re-sowing has commenced. “We will have to wait and see.”
Market looking good
Meanwhile, considering the increase — both in area and production — in the global cotton scenario, the market, he said “looks good at this juncture”. “Forward contract rates for September–October delivery stand at around ₹39,000-39,500 a candy, while the December delivery quotation is still lower at ₹37,000 a candy,” Thulasidaran said. Mills will benefit only if the rates are stable, he added. “The situation is comfortable. Mills need not panic,” said K Selvaraju, Secretary-General of the Southern India Mills Association, referring to the current season.
Low availability
However, trade sources revealed that current stock position has deteriorated and cotton availability is low. “The stock position is very weak at present and we fear that if fresh arrivals don't start from Punjab by mid-September there will be a short-term rally in prices. So, in the near term, we do not see prices falling as a result of the higher production outlook,” said Arun Dalal, a cotton expert based in Ahmedabad. Meanwhile, the International Cotton Advisory Committee (ICAC) has predicted uncertain cotton prices for the year 2017-18. The benchmark Cotlook A index is likely to hover around 69 cents/lb during the year.According to ICAC, world cotton production may increase by 8 per cent to 24.9 mt on the increase in the world cotton area by 8 per cent to 31.7 million hectares. India is expected to remain the world’s largest producer in 2017-18 with output rising 6 per cent to 6.1 mt. On the consumption front, ICAC has predicted world cotton consumption will rise by 2 per cent to 25 mt , while that for India is likely to increase by 2 per cent to 5.3 mt in 2017-18. India’s exports are forecast to rise by 2 per cent to 930,000 tonnes, ICAC noted.
Source: Business Line
The Association has not only planned presentations on cotton from India but has also scheduled one-on-one meetings and discussions with the Asia heads of these companies. A group of cotton ginners from Maharashtra will visit Singapore to explore possible deals for Indian cotton. A 15-member delegation of the the Khandesh Gin/Press Factory Owners Association has planned to tap a couple of the world’s largest agri-commodities companies located out of Singapore.“A delegation has planned to visit Louis Dreyfus Company and Olam International, which are among the biggest companies globally and among the largest buyers of agricultural commodities. This is an exploratory visit to check out what kind of parameters would Indian cotton would need so that such large buyers become interested in Indian cotton,” Pradeep Jain, president of the Association told FE. The Association has not only planned presentations on cotton from India but has also scheduled one-on-one meetings and discussions with the Asia heads of these companies. “We also plan to invite Asian heads of these companies to India so that they can see the quality of Indian cotton for themselves,” he said. Earlier, the association members have held meetings to discuss cotton trade and cotton samples of the region were displayed to potential buyers in Bangladesh, Pakistan and Vietnam. According to Jain, members of the association had also visited China a few years ago to study the requirement for cotton in that country. A team visited Chinese buyers, traders, ginners and warehouses and provided samples of their cotton which was tested by Chinese experts. This was followed by a visit to the Jalgaon region by Chinese traders and ginners as well as their visits to Indian farms. China has been the biggest importer of cotton from India until now. Louis Dreyfus Company ( LDC) is active in the domestic trade of corn, sugar, wheat and cotton in China, grains in Australia and cotton, grains, oilseeds and sugar in India. The company’s distribution and import activities in the region include grains, sugar, oilseeds and cotton. It exports grains from Australia to destinations including Asia, the Middle East and Europe. Olam International is a leading agri-business firm operating from seed to shelf in 70 countries, supplying food and industrial raw materials to over 23,000 customers worldwide. The association members have also been involved in a mentoring effort to improve productivity of cotton after they discovered that cotton from Gujarat commanded a higher price. What began as an effort to mentor some 40 farmers in 10 talukas of Jalgaon district resulted in 50-70% improvement in productivity. Traders across the country are reported to have struck deals for over 3 lakh bales of new cotton crop in the last few days in a price range of Rs 37,000-Rs 39,500 a candy. According to senior members of the Ginners Association, the deals should be ready for delivery in September to December time frame. Most of the contracts have been struck with buyers in China, Vietnam, Pakistan and Bangladesh. The country’s cotton production in 2017-18 (Oct-Sep) is likely to be 375 lakh bales, up 12% from the current season. In the current year, cotton exports from the country are likely to touch 63 lakh bales, lower from 72 lakh bales in 2016-17.
Source : Financial Express
New Delhi: Branded clothes from Baba Ramdev, coming soon to an apparel store near you. After food, medicines and cosmetics, the yoga guru-turned-tycoon who discovered the business potential of everything homegrown is ready to raid the next big consumer market: branded apparel. Ramdev’s Patanjali Ayurved Ltd is preparing to launch its ‘swadeshi” line of clothes for men, women and children by April, his spokesperson S.K. Tijarawala said. The sales target for the first year: Rs5,000 crore. “Patanjali will have different products in each category—value-for-money clothes for the masses and apparel that would have the snob value meant for the classes. We’ll start with woven clothes, knitwear and machine-made apparel, including denims,” said Tijarawala. While Patanjali is working on a suitable brand name aligned with its ‘swadeshi’ agenda, ‘Paridhan’ (apparel) is one option, Tijarawala said, adding “we may have more than one brand”. The apparel line will initially be made available across 250 exclusive retail outlets in April 2018, said Tijarawala. Besides the wide network of Patanjali stores, they will also be sold at other apparel retailing outlets across the country, including Kishore Biyani-led Future Group’s Big Bazaar. Patanjali, he said, may also look at selling them through retail outlets managed by state-run Khadi and Village Industries Commission (KVIC). There are 15,000 KVIC outlets across the country. Patanjali already has a tie-up with Big Bazaar. In October 2015, Future Retail tied up with Patanjali to promote, distribute and market the latter’s products across its outlets in 243 cities. Patanjali has already teamed up with a few hundred handloom weavers in northern India. In an interview to Mint in May 2015, Ramdev had said his company would work with handloom weavers to save them from distress and revive the khadi industry. “Besides, we will have arrangements with apparel makers, and we will set up our own manufacturing units for making clothes,” said Tijarawala, declining to share investment details. Patanjali is entering a market projected to grow over 9% every year till 2022 from about Rs2 trillion in 2012, according to a 2013 report by retail consulting firm Technopak. “Extending brands beyond core is always challenging,” said Rajat Wahi, partner, management consulting at Deloitte India. “But the company has shown strong marketing acumen before and has its own fan following, which may be helpful,” he said.
Patanjali, which started off with ayurvedic medicines in 2006, makes a wide variety of packaged goods now, ranging from toothpastes and skin creams to biscuits and noodles. Every year, Ramdev has announced Patanjali’s entry into new business areas as part of his agenda to challenge what he calls the dominance of multinational companies in India. Last month, it entered the private security business through a subsidiary, Parakram Suraksha Pvt. Ltd. The firm also said it may buy into infrastructure companies with stressed assets, Mint reported on 17 July. Patanjali Ayurved reported sales of Rs10,561 crore in the year to 31 March, almost five times its 2014-15 sales of Rs2,006 crore. It aims to cross Rs20,000-25,000 crore in sales by 31 March 2018, Ramdev said on 4 May.
Source: Livemint
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$ 51.24 per barrel (bbl) on 01.08.2017. This was higher than the price of US$ 50.80 per bbl on previous publishing day of 31.07.2017. In rupee terms, the price of Indian Basket increased to Rs. 3282.97 per bbl on 01.08.2017 as compared to Rs. 3255.21 per bbl on 31.07.2017. Rupee closed stronger at Rs. 64.07 per US$ on 01.08.2017 as compared to Rs. 64.08 per US$ on 31.07.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 01, 2017 Previous trading day i.e. (31.07.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
51.24 (50.80) |
|
(Rs/bbl) |
3282.97 (3255.21) |
|
|
Exchange Rate |
(Rs/$) |
64.07 (64.08) |
Source: PIB
India’s approach to trade policy was almost exclusively shaped by the nature of our pre-liberalisation economy in 1981 when I was a young delegate to the GATT in Geneva. We maintained high tariffs, a variety of non-tariff barriers, and sought periodic recourse to quantitative restrictions for balance of payments purposes. We were sceptical about the use to which trade could be put for the development of the country. The GATTs preamble calls for: “Raising the standards of living, ensuring full employment and steadily growing volume of real income”.... Through “reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international commerce”. The above rationale for trade policy is as valid today as it was then. India’s trade to gross domestic product (GDP) ratio has meanwhile climbed from 10 per cent in the 1990s to about 50 per cent now. In other words, in a $2.4-trillion GDP economy, the external sector, i.e. the value of trade in goods and services and the value of remittances could be as high as $1.2 trillion. We need to take international trade more seriously. One story from 1982 in Geneva needs to be recalled. The United States made a determined push to get trade in services included in the GATT, which was then a legal framework to deal with international trade goods only. A discussion between Bill Brock (the US trade representative) and Shivraj Patil (Indian minister of state for commerce) merits recall:
After a brief exchange of pleasantries, Mr Brock enquired, “Mr Minister, what is India’s position on services?” Mr Patil said, “Non negotiable”. “In that case,” responded Mr Brock, “I don’t see why I should be wasting your time and mine.” Services account for nearly 57 per cent of India’s GDP today. How much has changed between 1982 and 2017? At the highest political level, that of the prime minister, the articulation of trade policy objectives has been bold and ambitious. The new Foreign Trade Policy announced in April 2015 defined objectives in terms of increasing share of India’s global trade from 2.1 per cent to 3.5 per cent and doubling exports to $900 billion by 2020. The World Trade Organization (WTO) is moribund. Countries have no choice but to engage through plurilateral arrangements/agreements in the WTO and through regional and free trade agreements (RTAs/FTAs). We have refused to participate in the pluri-lateral trade in services agreement (TISA) or the ITA-2 at the WTO. We have also been extremely cautious and wary about the proposal to discuss e-commerce in the WTO. It is entirely understandable for trade negotiators to make the assessment that rules in a particular area or sector may not be in our best interests. Not participating in pluri-lateral initiatives is, however, not the answer. Why? Simply because the other participants will go ahead and negotiate disciplines and rules by themselves. Our participation would, at the very least, ensure the flagging of our concerns, calibrate the pace of negotiations, and the shaping of outcomes reflecting our interests. Not to want to negotiate is defeatist. It also overlooks the basic dynamic of these processes which are complex, long drawn out and represent compromises amongst a coalition of the willing. The current narrative is not credible. Our manufacturing sector is crying out for reform. There is a problem on account of imports at “less than normal value” or “dumped” from China or elsewhere. The answer is to use trade remedies and engage China at a sufficiently senior and strategic level and possibly restrict imports from there. We are doing quite well from several of the RTAs/FTAs that we have signed as with Asean, Malaysia, Singapore, Japan and South Korea. The rate of growth of our exports under these has ranged from 6.4 per cent to 36.4 per cent. Imports have also gone up. Most are of what a healthy fast growing economy requires. Let us not blame these for disruption caused by imports from one particular source. The flawed narrative on international trade in India and elsewhere has been shaped and influenced by different actors. It is, therefore, reassuring to find an Indian businessman, now heading the International Chamber of Commerce recently make the following points: We have failed to tell the story behind global trade in a way that resonates with the public at large. Two, an inability to communicate why trade matters has allowed myth, apprehension and superstition to dominate public discourse and three, governments must chart a new course for global trade policy makers that puts inclusion at its heart. Well put. We do ourselves and India great disservice if we continue to perpetuate a flawed narrative on trade, one based on myths rather than facts.
Source: Business Standard
The US National Council of Textile Organizations (NCTO) has appreciated President Donald Trump’s executive order directing the federal government to investigate violations and abuses of US trade agreements. It has filed public comments in response to a June 29 notice issued by the Department of Commerce and the Office of the US Trade Representative (USTR). NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers. “A thorough investigation of trade agreement abuses and violations is long overdue and we appreciate the President Trump’s desire to finally review this important matter,” said NCTO president and CEO Auggie Tantillo in a press statement. The executive order 13796 was signed by President Trump on April 29 last. Documents associated with this matter are archived under Docket USTR-2017-0010. “If America is to fix the systemic problems that plague the international trading structure and stop trade cheats from driving American production offshore, policymakers need a better understanding of the illegal or unfair trade tactics that are being used to hurt US industry, including textiles,” Tantillo said. US employment in the textile supply chain was 565,000 in 2016. The value of shipments for US textiles and apparel was $74.4 billion last year, a nearly 11 per cent increase since 2009, according to NCTO. The value of US exports of fibre, textiles and apparel was $26.3 billion in 2016.
Source: Fibre2Fashion
The government will allow foreign direct investment (FDI) in the readymade garment sector in special economic zones (SEZ) and high-end fashion items in Bangladesh, Commerce Minister Tofail Ahmed said yesterday. Investors from many countries have been lobbying governments over the years to get permission to invest in the ready-made garment sector outside of the export processing zones (EPZ), but the FDI was confined in the specialised areas. The minister agreed that there is no official bar in investment in the garment sector by foreign entrepreneurs outside of the EPZs, but usually such investment is not allowed outside of the EPZs to protect domestic investors. “However, we will allow FDI in garment sector in the SEZs as the government has been working to develop 100 such economic zones across the country,” the minister said, adding that currently foreign investors were allowed to invest in high-end fashion items even outside of EPZs. No SEZ has started functioning yet although the Bangladesh Economic Zones Authority has been working hard to develop such zones across the country either by leasing out land to individual local companies or to countries like Japan, India and China. Many garment manufacturing companies from China, Japan and Mexico want to relocate their factories to Bangladesh, but the government cannot allow them at a wholesale rate as local entrepreneurs have a lot of investment in the apparel sector, the minister said. The government has already allocated an SEZ for Japanese investors in Bangladesh. The Japanese investors can invest in SEZs in Bangladesh, Ahmed told reporters after a meeting with Japanese Ambassador in Bangladesh Masato Watanabe at his secretariat office yesterday. Currently, the number of Japanese investors in Bangladesh is 350, of which many are big multinational companies, the minister said, adding that even 10 years ago the number of Japanese companies in the country was 50. Bangladeshi exports, especially apparel items, have been increasing to Japan, riding on a zero-duty benefit under relaxed rules of origin of Japan. 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 Bangladesh Export Promotion Bureau. 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. 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 the 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. Not only garment items, shipment of leather goods and leather shoes from Bangladesh to Japan in recent years is on the rise due to the duty benefit and quality products, the minister said. Ahmed said Japan was in the process of investing $6 billion to develop the Matarbari power plant at Cox's Bazar. “Our bilateral relationship is very positive. The relationship between the two countries will grow further in future,” said Watanabe, who will be going back to Japan very soon following the completion of his stint in Bangladesh.
Source: The Daily Star
For textile producers looking to connect with British brands, the London Textile fair is the essential show to be at. Held at the London Design Centre in Islington, it is in close proximity for buyers from big brands just to hop on a bus or the tube to the event. This year sustainability was definitely on the agenda for many knitters. John Kelley, show organiser and Textile Events owner commented: “All our shows are fully booked.” And certainly, there was a huge range of fabric producers, print studios and accessories and importantly a strong showing of knitters. Exhibitors said that they mostly supplied to fast fashion and mid-market brands such as Topshop, River Island, Zara and Marks & Spencer. More specialist and high end exhibitors mentioned higher brands and independents and start-up designers were visiting their stands. The show draws producers from far and wide such as Handmade in Rajasthan who represented artisanal weavers, printers and embellishers now working with contemporary fashion designers, to Peruvian cotton textile producers. A new exhibitor from Bulgaria, Nitex is ideally positioned geographically for short orders and near shore production. “We ship a lot to Turkey for the German market, and two or three good garment makers in Bulgaria,” the company said. There was genuine quality to the fabrics on show, with real innovations and creativity. One freelance design consultant formerly of Thomas Pink and Aquascutam expressed real excitement about the fabrics he had seen.
Turkish producers dominate
Turkish producers were out in force with some 118+ exhibitors showing and many strong knitted fabric producers. There were also exhibitors across the range of textiles, including cottons, stretch lace, fancy fabrics and a strong showing of Jacquards. Many exhibitors who spoke with Knitting Industry expressed concern about the effect of the political situation and its portrayal in the press was having on connecting to customers and stated that the fair was essential for them to connect with British and European brands. Atakan Kukre of family run business Kukrer Tekstil, from Bursa, said: “This is the first time we are exhibiting. We have had visitors from Europe and UK, it is very useful for us.” Interestingly Turkish exhibitors said that they are still doing bulk, despite the emerging trend for short ordering from near-shore providers. Fatih Eraslan of DILEK a producer of stretch fashion and sports stretch fabrics in Bursa, Turkey said: “We produce 3.2 million metres per year. They are still bulk ordering especially for Mango, we got an order for 100,000 metres.” He noted that of the big brands such as H&M and Zara, they are using Turkish fabrics for Europe as they are paying a higher tag price. “In European countries when I visit stores like H&M stores, Mango, Zara I generally see the Turkish products, so I see our fabrics in these stores in Europe and the UK. When I see H&M etc. in Istanbul I see the products are made in Bangladesh or Casablanca,” Mr. Eraslan said. The Turkish contingent are supported by the Istanbul Textile and Raw Materials Exporters Association iTHiB, who are supporting exhibitors through paying 50% of their stand fee. “We are good in the UK market we work with M&S, ASOS, Ted Baker, Top Shop, New Look, especially River Island and Oasis,” Fatih said.
Sustainable fabrics
One of the interesting trends that knitted fabric producers seemed to be pushing were sustainable fabrics. Jason Body of Urban Fabric Limited representing Italian fabric company Primatex and German company Kindermann said: “It is a struggle to get people to do it and it is quite an investment and I don’t know if the consumer is fully on board with it, it needs to become commercial before anyone does it in a big way.” He added that: “The new collection using wool and recycled cotton from denim, from old recycled denim garments. We have been pushing them to do something recycled, or organic because we are getting asked more and more, we do corduroy and moleskin and part of that collection is organic by Kindermann.” Carmen Pinto from Vilartex, one of 15 Portuguese fabric companies exhibiting, said: “We have been here for four years and this is the first time that people are asking for organic items. Definitely things are beginning to change.” Vilartex have specialist collections of indigo dyed and sustainable fabrics that she says are really attracting customers. However, she says that if fabric producers do not take the initiative about producing sustainable fabrics the market will change even more slowly. “It is something we want to do, we know that the big brands such as Inditex and H&M are now getting aware of this sustainability and environmental concerns and it was something Vilartex wanted to make. We have been working on organic and recycled for two years. It is not a client request it is a step that Vilartex initiated,” she said. With regards to cotton she said: “There is also a new fibre which is the cotton which is certified by BCI which helps the agriculture and producers more of a social certification and those big brands have some goals till 2020 to get all their cotton from BCI, they are interested but the price is always the problem.” The big problem for fabric producers, particularly in the UK market, is price. “They like the recycled polyester they want to do it but at the same price as the conventional [fabric],” Carmen said.
Sercan Borucu, International Sales executive for Istanbul based Nuryildiz Tekstil said that 30% of their production was organic cotton and that it was countries like Denmark that asked for it more, “For organic cotton sportswear is around 20% and the remaining is for fashion and babies wear,” Sercan said. Elizia Volkmann, formerly of Flux Magazine and Fashion Editor for Twist Magazine, has worked on editorial projects as both a fashion editor and photographer with some of the greatest brands such as Ralph Lauren and Christopher Kane, as well as national publications.
Source: Knitting Industry
ACIMIT, the Association of Italian Textile Machinery Manufacturers driven by a strong performance from the domestic market has recorded a significant growth in the order index for textile machinery during the period from April to June 2017. Specifically, there was a significant increase in orders for the domestic market, where the index stood at an absolute value of 92.9 points (+66% over April-June 2016). In foreign markets, the increase amounted to 22%, and the absolute value of the index stood at 123.4 points. The latest statistics show that the order index rose by 26% compared to the same period in 2016. The value of the index stood at 117.3 points (basis: 2010=100). ACIMIT president Alessandro Zucchi said that the data confirms that a recovery is currently underway for theirr domestic market. This is the third consecutive quarter that the order index is on the rise. ACIMIT has also reported a good level of participation by its members at the forthcoming Irantex exhibition, the primary trade fair for the Iranian textile and textile machinery sector, to be held in Tehran from 4 - 7 September 2017. Last year, the trade fair was attended by a good number of Italian manufacturers, and this year’s edition will be marked by the participation of 24 machinery producers. Iran has always represented an important market for Italy’s textile machinery industry. For the first three months of 2017, Italian exports to this specific market amounted to €12 million.
Source: YarnsandFibers
