As many as 4,284 industrial units in the North East and Himalayan States will get GST relief in the form of refund of Central share of CGST and iGST. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its nod for a new scheme to refund the Central share of Central GST (CGST) and integratedGST (iGST) to these units in lieu of the excise exemption lost due to the onset of goods and services tax (GST) and scrapping of excise laws from July 1 this year. A budgetary support of ₹27,413 crore for this scheme has been approved for the period from July 1, 2017 till March 31, 2027, Finance Minister Arun Jaitley told reporters here after a Cabinet meeting. He said the Department of Industrial Policy & Promotion (DIPP) will notify the scheme, including detailed operational guidelines for implementation within six weeks. Industrial boost The 4,284 eligible industrial units were granted excise duty exemption for the first 10 years after commencement of commercial production under the North East Industrial and Investment Promotion (NEIIPP) 2007 and package for special category States for Jammu & Kashmir, Uttarakhand and Himachal Pradesh to promote industrialisation. “Upon repeal of the Central excise duty laws, the government has decided to refund the Central share of CGST and iGST to the affected industrial units for the residual period in the States of North Eastern region and Himalayan States,” Jaitley said. Under the scheme, if the Centre collects, say, ₹100 in the form of CGST and iGST, then the aggregate refund will only be ₹58, that being the Centre’s share under the devolution formula approved by the Finance Commission, he said. MS Mani, Partner-GST, Deloitte in India, welcomed the decision to refund GST to units in exempted zones enjoying excise exemption. “It is now expected that the few States that have granted VAT exemption would also announce the manner and methodology for refund of the SGST component of the GST paid,” he told Business Line. For all FMCG manufacturers who enjoyed excise and VAT exemption in the past, GST introduction has led to multiple challenges in terms of product pricing, raw material sourcing, adherence to anti-profiteering requirements etc. “These are matters that have a significant bearing on their profitability and market share and, hence, such units would be expecting a comprehensive declaration of the policies governing exemptions – both Centre and State,” Mani said.
Source: Business Line
The rupee staged a comeback after plunging to a fresh three-week low and ended with a modest loss of 3 paise at 64.15 a dollar on Wednesday even as local equities put up a strong performance. At the Interbank Foreign Exchange market, the rupee opened sharply lower at 64.28 compared to Monday’s level of 64.12 . It touched a low of 64.33 in mid-morning deals due to heavy dollar pressure but managed to recoup most of its losses to end at 64.15, with a small loss of 3 paise.
Source: Business Line
Exports of readymade garments (including those made of cotton, man-made and other fibres) from India were valued at Rs 8,262 crore in July 2017, registering a decline of 15 per cent compared to exports of Rs 9,775 crore in the same month last year, according to trade data compiled by Coimbatore based Indian Texpreneurs’ Federation (ITF). The 15 per cent drop in apparel exports is a disappointing trend, especially because Bangladesh’s garment exports increased by 18 per cent in the same period, ITF said in its analysis. While suggesting that the sector should introspect and identify the reasons behind the fall in exports, the association hoped that it would be a temporary trend and exports would bounce back. During the month, exports of man-made fibre (MMF) textiles, including yarn, fabrics, and made-ups but excluding garments, also showed a negative trend. In continuation of trend observed in the past few months, the value of MMF textile exports fell 4 per cent to Rs 2,450 crore compared to exports of Rs 2,552 crore in July 2016. However, cotton textiles showed a stable trend and increased 1 per cent to Rs 5,114 crore over July 2016 exports of Rs 5,059 crore. ITF expects cotton textile exports to improve in the coming months due to seasonal factors. On the import side, cotton and waste imports rose considerably bringing some comfort in the domestic front. These imports witnessed a surge of 108 per cent to Rs 914 crore over Rs 438 crore in July 2016. Import of all textiles, including cotton and MMF yarn, fabrics and made-ups but excluding garments, also rose 8 per cent to Rs 882 crore in July 2017, compared to imports of Rs 816 crore in the same month of the previous year. “Imports of textiles have not increased much after GST. We have to closely watch in the coming months on this,” ITF said.
Source: Fibre2Fashion
For the first time in the history of India’s garment exports to the US, the country has clocked top position in market share in the category ‘men/boys knitwear shirts cotton’ (a variety of knitwear) for the first six months of 2017. This was attributed to the slowdown in China. Exporters, however, said they will not be able to retain top position. Exporters say that since the US market offers a level playing field, they were able to compete with other countries, but the recent appreciation of the rupee against the dollar will be a major hurdle to them. The data released by the Office of Textile and Apparel, US department of commerce, show that India exported 8.5 million dozens of men/boys shirts cotton to the US. India’s share in men/boys knitwear shirts import by the US stood at 8.7 per cent in June. After a dip in 2014, India’s market share has been growing steadily. In 2013, India’s market share was 6.4 per cent and dropped to 6.2 per cent in 2014. From then it has been steadily increasing, and in 2016 it stood at 7.8 per cent. Contrary to that, China’s market share, which was 11 per cent in 2012, dropped to 9.6 per cent in 2016 and is now 8.5 per cent. In other segments including women/girls knit shi-rts/blouses, cotton, men/boys cotton trousers, breeches, shorts, and cotton nightwear/pajamas, India and others’ market shares have increased. While China’s loss is India’s gain, exporters are not happy because Vietnam is running India close. Bangladesh is also increasing its market share. The data show Vietnam exported 8.47 million dozens of men/boys knitwear to the US. Tirupur Exporters Association President Raja M Shanmugam said heavy investment increased India’s share in export. “The US is the only country that gives us a level playing field, and that is why we could compete,” said Shanmugam, adding that the country was losing the edge now because production cost was increasing here. An exporter said: “We will not be able to compete with Vietnam or with any countries because products made here are becoming costlier.” For example, exporters are quoting 3-5 per cent higher prices after the rupee appreciated, while the hike should be of around 7 per cent to compensate them for the losses on account of currency fluctuation. On the other hand, competitors' currencies have depreciated and they are bringing down the prices.
Source: Business Standard
Hyderabad: Telangana Industries Minister KT Rama Rao has invited textile giants in South Korea to invest in the upcoming Kakatiya Textiles Park in Warangal. At a meeting held in Hyderabad on Wednesday with the Korea Federation of Textile Industries (KOFOTI) represented by its chairman and Youngone Corporation chief Kihak Sung, the minister explained the project features and benefits in setting up units in the Park and sought the Federation to be the anchor investor. KTR said, the Park which will come up in an area spread over 2,000 acres will host both national and international textile companies. The State government will give best amenities and ecosystem for manufacturers to operate in the Park than other State. Customised facilities could also be provided for the facilities. To provide skilled manpower to the textile companies operating in the Park, the State government will create a training centre. The minister also explained the unique features of the State’s industrial policy that has helped bringing more investments. He hinted at the possibility of allocating a certain portion of land in the Park for the Korean companies. KOFOTI chairman Kihak Sung who was enthused by the encouragement given to the textiles in the State, sought details on the logistics facilities around the Park. KTR assured to the delegation that the State will pursue with the Centre for making the airstrip in Warangal operational. Telangana IT and Industries principal secretary Jayesh Ranjan, Handlooms and Textiles director Shailaja Ramaiyer also interacted with the delegation that has come on a two-day visit to Telangana. The delegation is also visiting the existing units in the State on Thursday.
Source: Telangana Today
Catalysing New Technologies Expositions and Services (CNT; formerly known as Inkjet Forum India) will re-launch the Inkjet India Conference as the Digital Textile Symposium. The conference, currently in its seventh year, will delve deeper on the opportunities and market growth enabled by new high speed and high performance digital textile systems and consumables. The symposium will take place in Mumbai on November 16, 2017. CNT will focus on creating business opportunities for the various stakeholders of the digital textile printing industry and charting out a sustainable growth part for this technology in India, says the organiser on its website. The Digital Textile Symposium will cover multiple topics pertaining to the industry. These include high speed digital fabric printing solutions, digital fabric printing for increase profits, pigment inkjet technology for textiles, software solutions enabling digital textile printing, latest technologies for textile sublimation printing, emergence of new business models driving digital textile printing, solutions for durable printing of home textile and direct disperse inkjet printing onto synthetic fabrics. CNT is also organising the TexNovation event, India’s first dedicated exhibition on innovations in textile processing, in partnership with Colourage - India’s premier journal for the textile processing industry. It will be held in Mumbai on November 17-18, 2017. TexNovation is a niche boutique exhibition dedicated to Innovation in textile processing across the various application sectors. CNT has organised a series of successful exhibitions, conferences and seminars in the areas of 3D printing, inkjet printing and textile processing.
Source: Fibre2fashion
'Born from Cotton' apparel show organised by the National Institute of Design (NID) focused on display of human stories through movements and music. Students of NID based in Gandhinagar, showcased their creative designs at the innovative show for apparels. 'Born from Cotton' project is an integral part of an academic classroom design project at NID. NID as part of its curriculum provides opportunities to its students to explore diverse, real-life situations by collaborating with professional bodies and mutually supporting live classroom projects. Such an approach prepares the students to understand and deal with various scenarios which nurtures them for a variety of professional experiences in future design career. At the fashion event, as many as 13 master students of design and apparel design of NID developed a collection of quality apparels suitable for local and global high-fashion markets understanding the fluidity, drapeability, silky touch, breathability comfort and eco friendliness properties of the cupro fibre and fabrics. Over 15 undergraduate students of NID's textile design displayed their creation of printed textiles and surfaces with a focus on various dyeing and printing techniques on Asahi Bemberg fabrics. The collections at the fashion event explored varieties of luxurious Asahi Bemberg fabrics which are produced in Surat by using Asahi Bemberg yarn which is only manufactured by Asahi Kasei in Japan. The show that concluded recently was sponsored by Asahi Kasei and witnessed participation of around 300 people from various areas of textile industry like designers, weavers and academicians. Asahi Kasei is a Japanese group with businesses in various fields and mostly in niche segments. In textiles, their four main products are are Asahi Bemberg, the unique cellulosic fabric born from cotton (yarn is Cuproammonium rayon); Roica premium stretch fiber; Bemliese, nonwovens including spunbond for growing hygienic applications; and Leona nylon 66 filaments for automotive applications.
Source: Fibre2Fashion
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$ 49.41 per barrel (bbl) on 15.08.2017. This was lower than the price of US$ 50.63 per bbl on previous publishing day of 14.08.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3163.51 per bbl on 15.08.2017 as compared to Rs. 3241.54 per bbl on 14.08.2017. Rupee closed at Rs. 64.03* per US$ on 15.08.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 15, 2017 Previous trading day i.e. (14.08.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.41 (50.63) |
|
(Rs/bbl) |
3163.51 (3241.54) |
|
|
Exchange Rate |
(Rs/$) |
64.03* |
Source: PIB
Foreign direct investments (FDI) in labour-intensive activities such as garment exports should be actively promoted from China and elsewhere in order to facilitate Myanmar’s economic transformation, according to the latest briefing paper published by a UK-based think tank. Data provided by the Myanmar Garment Manufacturers Association, as of mid-2015. Thompson Chau/The Myanmar Times The study called for an expansion of training in the garments sector to tackle shortages of high-level skill as well as complementary reforms in finance and trade policy. The briefing paper Foreign direct investment and economic transformation in Myanmar, written by Stephen Gelb, was published in June 2017 by Supporting Economic Transformation (SET). Funded by the UK Department of International Development (DFID), SET is an Overseas Development Institute-led (ODI-led) program which aims to provide practical policy support to governments and their partners in development countries. The Overseas Development Institute is a London-headquartered think tank specialising in international development and humanitarian issues. The briefing paper is a summary brief of the ODI report of the same title. The report explores the potential for FDIs, including from China, to contribute positively to economic transformation and poverty-reducing growth, focusing mainly on garments and construction. In value terms, China is the largest foreign investor in Myanmar, and power and oil and gas are the largest sectors, based on data provided by the Department of Investment and Company Administration (DICA). But Chinese and Hong Kong investments are substantial in the garments sector as well. The briefing paper argued that FDIs in Myanmar’s garments industry has been significant and that the sector is a major job creator. As of mid-2015, about 55 percent of registered garment firms in the country were known to be fully or partly foreign-owned, according to data from the Myanmar Garment Manufacturers Association. Among them, a quarter came from China, 17pc from Hong Kong, 29pc from South Korea and 12pc from Japan. The publication stated that foreign-linked firms supply almost all garment exports, and these have surged in recent years. The lifting of EU and American sanctions helps further boost export growth. The industry creates a lot of jobs, with around 200,000 employed in total in mid-2015, and a quarter of the workforce were hired in Chinese and Hong Kong firms. However, the paper argued that these foreign-linked garment firms have produced few benefits, linkages or spillovers in Myanmar beyond export and job creation. It further pointed out that the foreign-owned firms have very few local managers, reflecting the country’s shortage of high-level skills.
Source: Myanmar News
“Myanmar cannot meet its [garment exports] target in either sector [garments or construction and infrastructure] without substantial numbers of new mid-size firms. “Since competitive local firms have not emerged in large numbers, more FDI is essential in both sectors, and China is the most likely source, given its economic size and geographic proximity,” it stated. It recommended the country to ease entry restrictions and get rid of “cumbersome procedures”, which discourages transparent formal entry by international businesses. “Myanmar should further ease entry and undertake active investment promotion in garments and other labour-intensive exports such as footwear. “Entry of Chinese and other foreign garment assemblers could also be encouraged through engagement with buying firms, especially global retail or apparel corporations,” it noted. Additionally, three solutions were suggested to tackle Myanmar’s shortage of entrepreneurial, management and technical skills in the garments sector. The short-to-medium term measure is “labour circulation” – the movement of foreign and domestic skilled employees from international businesses to existing and new local ones. Entrepreneur support policies should also be made available to foreigners as well as the Myanmar diasporas. In the longer term, the country should develop tertiary educational institutes which are dedicated to the garments industry in order to increase the supply of managers and technicians in the sector. The paper called for various financial and trade reforms, such as making access to trade credit possible for garment exports and providing tariff-free fabric imports to both free-on-board (FOB) and cut-make-package (CMP) producers. Foreign direct investment and economic transformation in Myanmar also analysed the FDIs in construction and infrastructure sectors.
Source: Myanmar Times
Any US trade protectionism move against China will surely damage bilateral economic and trade ties, a Chinese Foreign Ministry spokesperson said Tuesday. China's Ministry of Commerce (MOC) Tuesday expressed "grave concerns" about a memorandum signed by US President Donald Trump to direct US trade representative Robert Lighthizer to examine China's intellectual property practices. In response, Foreign Ministry spokesperson Hua Chunying told a daily news briefing that the MOC had released a statement on the recent US trade protectionism move, expressing three important messages. "Firstly, we think the United States should not become a destroyer of multilateral rules," Hua said. She said secondly any US trade protectionism move against China will surely damage bilateral ties and the interests of companies from both countries. Thirdly, if the United States fails to respect basic facts and multilateral trade rules, and takes measures that harm bilateral economic and trade relations, China will definitely not sit by, but will take all appropriate measures to resolutely safeguard its legitimate rights and interests, she said. Hua said China's position on the nuclear issue on the Korean Peninsula remains clear and consistent. China is committed to safeguarding the international nuclear nonproliferation treaty, protecting peace and stability on the peninsula, and safeguarding its own security interests. China stands ready to play a constructive role in resolving the nuclear issue on the Korean Peninsula through political and peaceful means, and maintaining communication with the United States on the basis of mutual respect, she said.
Source: China Daily.
ICE cotton fell for the third straight session to touch a one-month low on Wednesday as expectations of record high output from major producer United States weighed on the natural fiber market. Cotton for December settled 0.34 cent, or 0.5 percent, lower at 66.82 cents per lb. Earlier in the session, the contract hit a low of 66.76 cents, its lowest since July 17. "I think the reason the market is trending lower is because we've got an enormous crop out here," said John Bondurant, a trader in Memphis, Tennessee. "The big news is the fantastic yields in South Texas." The first survey of U.S. 2017 crop production indicated an output of 20.5 million bales, 1.5 million above last month and the largest production in 11 year, the U.S. Department of Agriculture said in its monthly World Agricultural Supply and Demand Estimates (WASDE) last week. Meanwhile, output from top producer India was seen at 33.09 million bales for the 2016/17 crop year against the previous forecast of 32.58 million bales, according to data released by the farm ministry. Total futures market volume rose by 67 to 18,726 lots. Data showed total open interest gained 471 to 218,749 contracts in the previous session. Certificated cotton stocks deliverable as of August 15 totaled 17,315 480-lb bales, down from 18,082 in the previous session.
Source: The Times of India
The US International Trade Commission (USITC) has determined that there is a reasonable indication that a US industry is materially injured by imports of low melt polyester staple fibre (PSF) from Korea and Taiwan that are allegedly sold in the US at less than fair value. The department of commerce will continue to conduct antidumping duty investigations. The preliminary antidumping duty determinations of the department of commerce are due on or about December 4, 2017. The probe was conducted as a result of the allegations made by Nan Ya Plastics Corp, America, a subsidiary of Taiwan’s Nan Ya Plastics Corp, back in June. The probe is not likely to affect the parent company, however, it will have adverse effects on other Taiwanese firms, if they are found guilty, said Taiwanese media reports. The final rulings on the dumping allegations are likely to be issued by the department of commerce in February and April, next year. Fine denier PSF, the product covered by the petition is a synthetic staple fibre of polyesters measuring less than 3.3 decitex (3 denier) in diameter. It is generally cut in lengths of less than five inches (127 mm) and is similar in appearance to cotton or wool. It is typically converted either to yarn for weaving or knitting into fabric or to a non-woven textile prior to the end-use application. Woven applications include the production of textiles such as clothing and bedding linens. Non-woven applications include the production of household and hygiene products such as cleaning wipes, baby wipes and diapers.
Source: Fibre2Fashion
CARMEL, Indiana — Top Value Fabrics has expanded its textiles for latex printing with a new line of Latex Performance Textiles, specifically engineered to create durable, high-quality production graphics utilizing HP Latex Technology. “Working closely in our partnership with HP, Top Value Fabrics has developed a proprietary coating for our top-selling digitally printable textile products to enhance the durability of HP Latex inks. Printing on our coated textiles with HP Latex print systems and inks provides finished graphic products with rich, brilliant colors with exceptional durability and fastness properties,” explains Mike Compton, Product Marketing Manager for Top Value Fabrics. Compton adds, “Our new line of Latex coated products cover a broad spectrum of end use needs including: backlit, frontlit, stretch, banner and sheer fabric applications. These fabrics can be utilized for SEG frame systems, high-end retail, POP, banner stands, backdrops, roll-up displays, tradeshow exhibits and interior decor.” The media in this high-performance line is constructed with a superior print receptive treatment for maximizing the beauty of printing with latex ink technology. After imaging, these fabrics are designed to provide outstanding color consistency, excellent image sharpness and a wide color range. Several of the fabrics are built on similar constructions of best-selling fabrics in our Direct Print Textile line. The new fabrics are called Latex Performance as they feature a proprietary coating for HP Latex Inks.
Source: Top Value Fabrics
