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MARKET WATCH 10 AUGUST, 2017

NATIONAL

INTERNATIONAL

PM seeks to include views of young blood in policy-making

NEW DELHI: Prime Minister Narendra Modi will interact with young entrepreneurs, including startup founders and CEOs, later this month to get their views on policymaking in the first such exercise in the country.  The NITI Aayog has shortlisted 150 names each to participate in two meetings that the PM will chair: first on August 17 with young entrepreneurs and the next on August 22 with young CEOs.  The participants have been selected from all over the country and across sectors. The idea is to incorporate fresh and innovating thinking into policy making.  “For further accelerating the growth process as well as realising the vision of Sabka Saath, Sabka Vikaas, it is imperative that the dynamism, resources and innovative spirit of the leaders in private sector is focussed towards the emerging opportunities and challenges in the Indian economy,” NITI Aayog CEO Amitabh Kant said in a letter to those shortlisted for the events.  “NITI is organising an interactive session between the prime minister and a group of highly motivated, dynamic, young and progressive entrepreneurs of private sector who have demonstrated a passion for transforming India and are emerging as champions of change for the country,” Kant said.  The 150 shortlisted young entrepreneurs would be segregated into six thematic groups: New India 2022, Digital India, Emerging a Sustainable Tomorrow, Health and Nutrition, Education and Skill Development, and Soft Power.  Likewise, the young CEOs would deliberate on six subjects: New India by 2022, Make in India, Cities of Tomorrow, World Class Infrastructure, Doubling Farmers’ Income and Financial Sector Reforms.  The event is likely to see the private sector committing on job creation, income enhancement and technology disruption and innovation while seeking government support on ease of doing business and governance and policy.  Each group would brainstorm through the morning, generating an action plan on its respective theme. This would cover topics such as the desired policy interventions by central and state governments, private sector contributions and disruptive tech that could guarantee inclusive development.  The plans would then be presented before the PM and some of those could find their way into government policies.

Source: Economic Times

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Economic Survey expected on Friday

After weeks of delay, the finance ministry is ready to release the second part of the 2016-17 Economic Survey. The government might table the document in Parliament on Friday, a senior government official confirmed on Wednesday. As reported earlier, the tabling of the survey has been delayed as some sections in the top rung of the government had objected to Chief Economic Advisor Arvind Subramanian’s strong criticism of the Reserve Bank of India’s six-member Monetary Policy Committee’s inflation modelling and monetary policy decisions. Some changes have been made to the document, it is understood. The survey is drafted by the CEA and his team of economic advisors in the finance ministry. Subramanian has been, in the recent past, critical of the MPC over its refusal to cut key interest rates in the face of low headline retail inflation. However, in its policy meeting earlier this month, the MPC did cut repo rates by 25 basis points. In June, Subramanian had reacted quite strongly when the MPC held rates. “In recent times, seldom have economic conditions and the outlook warranted substantial monetary policy easing.” He had said that not just headline prices, but core inflation had declined as well and indicated that the Reserve Bank’s “inflation forecast errors have been large and systematically one-sided in overstating inflation.” Analysts and policy-watchers are waiting to see to what extent this criticism will been toned down when the survey is tabled.

Source: Business Standard

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Exempt merchant exporters from IGST: Textiles Export Promotion Council

The Cotton Textiles Export Promotion Council (Texprocil) has urged the government to exempt merchant exporters from charging integrated goods and services tax (IGST) to make India's textiles exports cost competitive in overseas markets. While welcoming the government's decision to reduce GST levy on job work to 5 per cent now from 18 per cent earlier, Ujwal Lahoti, Chairman of Texporicil, said, "Merchant exporters cannot benefit from the facility of exports under bond/LUT (Letter of Undertaking)". There is no enabling document prescribed so far by the government under which goods can be cleared by a manufacturer without charging IGST meant for exports by a merchant exporter against bond/LUT. In absence of such a provision, therefore, the manufacturer charges IGST on the goods supplied to the merchant exporter meant for exports under Bond/LUT. In the erstwhile central excise regime, there was a facility under which a merchant exporter who has executed a bond (B-1 bond) was provided with CT 1 certificates. Introduce similar facility at the earliest so that the merchant exporters exporting under bond/LUT can get IGST free goods from the manufacturers." The GST council, in its meeting held on Saturday, cut GST levy from 18 per cent to 5 per cent. Earlier, the GST for job works related to textile yarns, other than man-made fibres and textile fabrics, was fixed at 5 per cent, while for man-made fibres yarns and made ups/garments, the same tax levy stood at 18 per cent. "The reduction in the GST rate for job work in the made ups and garment sectors will bring down the costs for the textiles sector across the value chain," said Lahoti. The majority of the manufacturing activities in the textiles sector take place through job work and the reduction in the GST rate for job work has come as a huge relief for the sector.  The Foreign Trade Policy allows fulfilment of export obligations under various schemes through "third party exports". Such a provision of getting exports goods without payment of IGST from the textiles manufacturers will lead to ease of doing business and also the seamless flow of credits. Meanwhile, Texprocil also urged the government to exempt the textile industry from furnishing bank guarantees while executing B-1 bond especially for those players who hold a membership with an export promotion council. Bank guarantee increases cost unnecessarily, said Lahoti.

Source: Business Standard

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10 days to go; GSTN set for last minute rush on slow pace of returns filing

With barely 10 days left for goods and services tax (GST) assessees to file summarised interim returns, the GST Network (GSTN), the IT back end for the indirect tax regime, hasn’t yet started witnessing high-frequency traffic, indicating a possible last-minute rush. “We have just 16,000 returns till August 8 while there are 87 lakh businesses registered with us,” GSTN chairman Navin Kumar told FE on Wednesday. However, he added that the back end was equipped to handle even a last-minute rush. “Half of the people might come on the last day,” he said, attributing the low traffic on the portal so far to assessees’ behaviour pattern. Only a little over half of the registrants on GSTN have so far completed the process by filling up part B of the registration form. The interim return, GSTR 3B, requires taxpayers to provide a summary of outward sales, purchases, input tax credit demand and tax liability. The window for filing these returns commenced on August 5 and it will remain open till August 20. The GST Council had earlier postponed the requirement for filing full-fledged returns to September, and allowed the taxpayers to file interim return for July and August, in a bid to reduce their initial hassles. Kumar, however, told FE that not all of the 16,000 taxpayers had completed the return filing process as many are yet to pay the tax. “The taxpayers have come to the site and saved the relevant data on the portal but not submitted it as they need to first pay the tax before submission, which hasn’t happened,” Kumar said . He admitted that the the traffic on the portal had been slow thus far, and urged the assessees to not wait for the last day to file returns. However, he assured that the GSTN system was robust enough to handle the heavy traffic it might experience closer to the last date. “We have designed the system keeping the possible deluge of taxpayers in the final hours as our study suggests that a very large number of taxpayers sign up on the last two days of the deadline,” Kumar said. Additionally, businesses have the option of filing return with the help of GST suvidha providers (GSPs). GSTN has authorised 34 such firms to upload data onto the portal on behalf of taxpayers. However, only 18 such GSPs have been able to connect to the GSTN servers for filing the interim returns. “I have been urging them to speed up their work,” Kumar said about GSPs that are yet to go live. Till August 5, nearly 87 lakh taxpayers had registered on the GSTN portal as taxpayers under GST. Of this, nearly 71 lakh businesses have migrated from earlier VAT or central excise or service tax regime while 16 lakh new taxpayers too have registered with the portal. What could further compound the problem is the incomplete registrations submitted by the registrants. GSTN had earlier said that over 30% of the firm registered on the portal had not completed the second form. This would prevent these businesses from filing returns.

Source: Financial Express

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Move to reduce GST on garments welcomed

The Wool and Woollens Export Promotion Council (WWEPC) has welcomed the decision of the government for reduction of the goods and services tax (GST) rate from 18 to five per cent on job work in textiles sector. This five per cent rate will be applicable for job works in apparel, shawls and carpets. “This is a major relief for the garment sector. The WWEPC is also thankful to Minister of Textiles Smriti Zubin Irani for taking up this matter,” said Sushil Kaura, chairman of the council. “With this relief, the garment sector in India will see a major jump. It can compete in international markets to boost exports of wool and woollen blended products,” he added. In the unorganised textile sector, almost 75 per cent depend on job work, including stitching, trading and other associated work.

Source: The Tribune

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Government sets up Institutional Mechanism to help realize full potential of Textiles Sector

Building on the overwhelming success of Textiles India 2017, Ministry of Textiles has set up institutional mechanisms to synergize efforts of the Ministry of Textiles, related Ministries and state governments to enable the textile industry achieve its full potential of production, exports and employment. Textiles India 2017, held at Gandhinagar, Gujarat from 30th June 2017 to 2nd July 2017, was not only the largest ever international trade event in Textile Sector in the country, but also hosted a series of roundtables (26) and international conferences with participation of eminent persons from the business fraternity, academia and policy makers to deliberate on various opportunities for growth of the sector. Several key recommendations emerged from the deliberations.  To carry forward the recommendations, the Ministry of Textiles has set up the following institutional mechanisms involving relevant Ministries, State Governments and Industry partners:

Knowledge Network Management System on Product Diversification

A Steering Committee has been set up to oversee implementation of a Knowledge Network Management System (KNMS) to facilitate exchange of knowledge amongst academia, farming community and the industry on the productivity of natural fibres and diversification of their bye-products. The KNMS on Product Diversification would cover jute, silk, wool and cotton. The Committee under the chairmanship of Additional Secretary, Ministry of Textiles will have senior functionaries from the Ministry of Agriculture and Farmers’ Welfare, Ministry of Skill Development and Entrepreneurship, Department of Industrial Policy and Promotion (DIPP), Department of Animal Husbandry, Dairying and Fisheries, and the senior officers handling the fibres in the Ministry of Textiles.

Inter-Ministerial Synergy Group on Man-Made Fibre (MMF)

An Inter-Ministerial Synergy Group on Man-Made Fibre (MMF) comprising senior officers from Ministry of Petrochemicals; Department of Heavy Industries; Association of Synthetic Fibre Industry; Chairman, SRTEPC; Chairman, Indian Technical Textile Association; and ED, SRTEPC has been set up under the Chairmanship of Secretary, Textiles to formulate policy interventions to enhance growth and competitiveness of MMF industry in India.

Task Force on Textiles India

A Task Force on Textiles India, chaired by Secretary, Textiles and consisting of representatives of Department of Industrial Policy and Promotion, Consumer Affairs, Heavy Industry of Government of India, representatives of Partner/Focus states of Textiles India 2017, Export Promotion Councils, Textiles Associations and representatives from Consumer Associations has been set up to steer follow-up action on various outcomes of Textiles India 2017 for growth of the textiles sector.

Source : PIB 

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PAU VC holds meeting to discuss whitefly menace threatening cotton crop

LUDHIANA: The cotton belt of Punjab contributes significantly to the economy of the state. With the cotton cultivated in the areas around Bathinda, Abohar and Fazilka districts, the State Government, Punjab Agricultural University (PAU) and the State Department of Agriculture are making joint efforts to check the attack of insects on cotton. In view of the whitefly attack on cotton, the Vice-Chancellor, Baldev Singh Dhillon held a meeting with the officials, agricultural experts (including entomologists) and the students today where he took stock of the whole situation and received feedback. Stating that farming was their first major concern, he urged the scientists and the students to keep visiting cotton fields regularly and provide solutions to the problems of the farmers. "In the hour of crisis, farmers look towards PAU and it is the moral duty of the University to address all their issues and give relief to them," he said. Dhillon said the major focus area of PAU is to give more yield with less use of inputs. He also called for urging the stakeholders to adopt recommendations regarding use of chemicals and non-chemicals. Dhillon called upon the faculty to help the farmers in knowing the difference among insects, so that a particular insect could be controlled properly. At present, along with saving of the crop from insects, attention on maintaining plant health also needs to be given, he added. During interaction, it also came to the light that attack of whitefly was more at the places touching paddy fields. Secondly, it was observed that cotton fields were deprived of irrigation due to farmers' more involvement in paddy cultivation. Dhillon said, "Although there are problems, yet we are hopeful of getting bumper crop of cotton this year also with the nature's support."

Source: The Times of India

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Amazon India, Telangana tie up to train weavers

Amazon India has signed an agreement with the Telangana department of handloom and textiles to educate and train weavers and artisans to directly sell their products to the firm’s customers online. This will boost sale of popular handloom products from Pochampally, Warangal, Gadwal, Narayanpet and Siddipet, the company said in a recent statement. The training programmes will include computer and internet training, registration assistance sessions and methods to make the products more attractive, appealing and marketable across the online domain. Telangana has over 17,000 handlooms. The partnership also intends to empower and generate livelihood opportunities and income for the artisans and transform their economy, according to Amazon.

Source: Fibre2Fashion

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DiloGroup to show nonwoven equipment at Techtextil India

The DiloGroup, Germany’s leading machine-building company for needle felting technology and numerous innovations and inventions, is set to present its portfolio of equipment for the nonwovens industry at Techtextil India 2017, international tradefair for nonwovens, to be held in Mumbai, from September 13 to 15, 2017, at the German pavilion in booth B36. DiloGroup will provide extensive information about production lines made in Germany and recent machine concepts from the DiloGroup companies DiloTemafa, DiloSpinnbau, and DiloMachines. The emphasis of the latest equipment components has been laid on improving web quality and uniformity applicable to all bonding processes as well as operation efficiency of the needling line. As the leading group in the field of staple fibre nonwoven production lines, DiloGroup will inform about complete lines presenting the latest developments of all components. The strong demand for Dilo production lines is partly due to the increased requirement for needled nonwovens with a yearly growth in consumption of about 6 to 7 per cent. Staple fibre production lines start with fibre preparation – opening and blending – from DiloTemafa, card feeding and cards from DiloSpinnbau and end with crosslappers and needlelooms from DiloMachines. The quality of DiloGroup’s four equipment components, opening and blending, carding, crosslapping, and needling, is important to customers. A Dilo line represents highest productivity with best web quality. This goes hand in hand with high efficiency as the mentioned four machine components are controlled by central drive and control stations in preparation for the modern requirements of crosslinking and smart production. Service and spare parts supply to support the high efficiency of Dilo nonwoven production lines is available worldwide. In addition to information about standard universal lines, Dilo will inform about the latest developments in Dilo machines which aim to increase efficiency and productivity by the degree of automation and to improve end product quality. One example of such innovations is the “Vector 200”, a new cross-lapper by DiloMachines which is the first cross-lapping machine in the market with an infeed speed of over 200 metres/minute. Dilo lines are used for the production of nonwovens for all applications including automotive products, floor coverings, synthetic leather, wipes, geotextiles, roofing, and filtration. Compact special lines for product research, development and production with carbon fibres are available and can be discussed with interested visitors. DiloGroup will also inform about carding systems of wide working width and high web speed for water entanglement lines. For this important branch of nonwoven production lines generally have a working width of about 3.8 metres and medium web speeds of around 200 metres/minute. DiloSystems offers special carding systems with working widths exceeding 5 metres and resultant web speeds of more than 400 metres/minute after water entanglement and drying.

Source: Fibre2Fashion

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Global Textile Raw Material Price 2017-08-09

Item

Price

Unit

Fluctuation

Date

PSF

1189.82

USD/Ton

-0.25%

9/8/2017

VSF

2360.25

USD/Ton

0%

9/8/2017

ASF

2206.68

USD/Ton

0%

9/8/2017

Polyester POY

1191.31

USD/Ton

-0.25%

9/8/2017

Nylon FDY

3146.01

USD/Ton

0%

9/8/2017

40D Spandex

5114.13

USD/Ton

0.88%

9/8/2017

Polyester DTY

5665.80

USD/Ton

0%

9/8/2017

Nylon POY

1420.18

USD/Ton

-0.26%

9/8/2017

Acrylic Top 3D

2862.72

USD/Ton

0%

9/8/2017

Polyester FDY

2385.60

USD/Ton

0%

9/8/2017

Nylon DTY

1498.46

USD/Ton

-0.50%

9/8/2017

Viscose Long Filament

3250.38

USD/Ton

0%

9/8/2017

30S Spun Rayon Yarn

2982.00

USD/Ton

0%

9/8/2017

32S Polyester Yarn

1778.76

USD/Ton

-0.42%

9/8/2017

45S T/C Yarn

2779.22

USD/Ton

-0.05%

9/8/2017

40S Rayon Yarn

1923.39

USD/Ton

0%

9/8/2017

T/R Yarn 65/35 32S

2311.05

USD/Ton

0%

9/8/2017

45S Polyester Yarn

3146.01

USD/Ton

0%

9/8/2017

T/C Yarn 65/35 32S

2296.14

USD/Ton

0%

9/8/2017

10S Denim Fabric

1.39

USD/Meter

0%

9/8/2017

32S Twill Fabric

0.85

USD/Meter

0%

9/8/2017

40S Combed Poplin

1.19

USD/Meter

0%

9/8/2017

30S Rayon Fabric

0.67

USD/Meter

0%

9/8/2017

45S T/C Fabric

0.69

USD/Meter

0%

9/8/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14910 USD dtd. 8/8//2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Vietnam : Fibre, yarn exports surge over last 7 months

HÀ NỘI — The nation’s fibre and yarn exports reached 750,000 tonnes, worth more than US$1.85 billion over the past seven months, surging 17 per cent in volume and 26.5 per cent in value against the same period last year. Over 341,000 tonnes of fibre and yarn were shipped abroad for $933.4 million in the first half of this year alone, up 18.5 per cent in volume and 29.47 per cent in value, according to the General Department of Customs. Vietnamese fibre and yarn have been exported to nearly 20 countries worldwide. Of them, mainland China is the leading importer, accounting for 54.4 per cent of the total value. South Korea and Turkey were the two other largest importers of Vietnamese fibre and yarn. Other markets recording positive import turnovers included Taiwan, Hong Kong and Pakistan. Baodautu.vn quoted the Việt Nam Cotton and Spinning Association as saying that Vietnamese businesses have shifted their export targets from Turkey to China and Pakistan after its anti-dumping duties were imposed in recent years. Although Turkey remaied the third largest consumer of Việt Nam’s fibres and yarns, exports to the market slumped signficantly by 37.5 per cent in volume to 30,000 tonnes and 28.3 per cent in value to $67.9 million from January to June period.

Source: Viet Nam News

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Vietnam-textile sector needs $22bln investment

Foreign investment is needed to address the capital shortage in the production of textile and garment materials in Viet Nam. In fact, to meet the demand for clothes and ancillary materials for outsourcing enterprises by 2025, Viet Nam needs some US$22 billion invested in textile and dyeing, the Vietnam News Agency reported. Textile and garment is Viet Nam’s third largest export sector, with turnover reaching $28 billion last year. However, the country has not been proactive in obtaining raw material.  As a result, to reach its export turnover, the textile and garment sector consumed 8.9 billion sq.m. of cloth, of which domestic factories were able to produce only 2.8 billion sq.m., while six billion sq.m. of cloth was imported, worth $17 billion. According to Nguyen Van Tuan, chairman of the Viet Nam Cotton and Spinning Association (VCOSA), apart from financial potential, foreign textile corporations also have a lot of experience in developing a synchronous production chain of textile, fiber, weaving, dyeing and design. This would be an opportunity for Vietnamese garment enterprises to access and learn technologies and strategies for long-term development, he told VNA. Pham Xuan Hong, chairman of the HCM City Association of Garment Textile Embroidery-Knitting (Agtek), said the country’s participation in free trade agreements (FTAs) had contributed to the development of both the commercial value and internal strength of the Vietnamese textile and garment industry. In terms of foreign investors, VNA quoted Sunny Huang, executive director of New Wide Group, as saying Viet Nam has a lot of potential to attract textile and garment investment. Besides an abundant labour force and low cost of living, Viet Nam also has infrastructure and transport network advantages, and the electricity and water supplies are better than in some other countries in the region, he added. However, many argue that in the long run, Viet Nam’s textile and garment industry should not just attract foreign investors. but should also focus on high quality human resource training for the industry’s development. According to Nguyen Hong Giang, director of Sao Viet Consulting JSC, associations, enterprises and training institutions should work closely for the development of professional criteria and skills for the textile and garment industry in general, and for weaving and dyeing in particular. In addition, businesses should invest in the construction of training facilities and enable students to practice at factories so that they can meet the employers’ requirements immediately after graduation, Giang said.  

Source: VNS.

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Pakistan : Govt urged to reduce cotton imports

ISLAMABAD: Cotton growers on Wednesday urged the government for providing level playing field to local farmers in order to reduce the import of cotton into the country, which was discouraging the cotton farmers across the country. They said that billions of dollars were being spent annually on the import of the cotton to fulfill the domestic requirements of local industry. They stressed the need for taking necessary measures to check the import of cotton into the country to stabilize the prices of the commodity in the local market to benefit the lint farmers particularly small farmers. They said that cotton imports into the country grew by 10 percent during last financial year ended on June 30, 2016 as compared the corresponding period of last year. Talking to APP here on Wednesday, President Kissan Ithad Khalid Khokhar urged the government to take appropriate measures to safeguard the local cotton growers. He asked for reducing the cost of production to compete with the international markets and encouraging the farmers to grow more crop and enhance production. He said that per 40 kg cost of production of local cotton was recorded at Rs. 2,533 as compared with the prices of the commodity in the neighboring country where it was recorded at Rs. 1,076 per 40 kg. He urged the need for enhancing research expenditures, improved seed varieties and encouraging the local farmers by providing them special incentives to enhance cotton producing to its true potential of 20 million bales. Meanwhile, commenting on the situation, Cotton Commissioner Dr Khalid Abdulah said that about 2.7 million cotton bales were imported during last year to fulfill the domestic requirements. He said that exports of raw cotton from the country reduced by 49 percent during the period under review as about 146,000 cotton bales were exported during previous year. He said that government was taking measure to reduce the imports of cotton and encourage the local farmers by stabilizing the prices in the local markets. The Ministry of Textile Industry would device a comprehensive plan by taking all stakeholdrs including farmers, ginners and textile industry to reduce the imports of the cotton.

Source: Business Recorder

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USA : The economic impact of cotton in South Texas

CORPUS CHRISTI (KIII NEWS) - The sea of white cotton that has blanketed Nueces County over the past few weeks is fast disappearing. It's harvest time. Kiii News Reporter Michael Gibson dropped by some of the cotton fields Wednesday and came back with more details on the economic importance of the crop, and how new varieties being tested may boost production in the future. Cotton is such a big business in Nueces County that in a typical year, the County ranks 26th in the entire country in cotton production. Nueces County Ag Extension Agent Jason Ott was on a farm in Petronila Wednesday looking over the baled cotton. It was part of an experiment to try and increase production on the land. "Today we are actually harvesting a variety trial that we have that we're doing on-farm research with," Ott said. "This cooperator is looking at 10 different varieties of cotton and comparing performance such as yield." The farmer will then be able to know which cotton grows best on his land and will know which variety he needs to buy next year to try and increase his profits. "It's a big driver for the economy on the western end of the county and certainly impacts the City of Corpus Christi," Ott said. "About $150 million was the estimated production value of on farm receipts in 2016." This year, Ott believes that the cotton crop will end up as good as last year's or possibly even better.

Source: KIIITV

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UPDATE 1-Bangladesh's July exports rise 26.5 pct y/y

DHAKA - Bangladesh's exports in July rose 26.5 percent from a year earlier to $3.2 billion, the Export Promotion Bureau said on Wednesday, but was slightly below target. Shipments of key readymade garments, comprising knitwear and woven items, totalled $2.48 billion for the first month of the current financial year, up 17 percent on year. That was 4.8 percent below the target. The government has set an export target of $37.5 billion for the 2017-18 financial year, with readymade garments earning $30.16 billion. The strategic exports target for the month of July was $3.239 billion. Exporters blamed the lacklustre growth for the previous financial year on a number of factors, including sluggish demand in key markets, structural reforms in the garment sector, a weak euro and appreciation of the local currency against the U.S. dollar. Garments are a key foreign-exchange earner for the South Asian nation, whose low wages and duty-free access to Western markets have helped make it the world's second-largest apparel exporter after China. But the industry, which supplies many Western brands, came under scrutiny after a string of fatal factory accidents, including a 2013 building collapse that killed more than 1,130 people. Last month, Bangladesh's central bank left key interest rates unchanged, saying it was trying to balance economic growth and inflation risks. Reporting by Ruma Paul; Editing by Jacqueline Wong

Source: Reuters

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