NATIONAL

• India's growth revival still a concern: D&B
• Over 1.9 million file GST returns
• Rupee softens against dollar, closes at 64.12
• Re-export of cotton likely from Kochi port
• Technical textile industry biggies at Techtextil India 2017
• Rajasthani Textile heritage at lit fest in Bhutan
• 1.5 lakh fake tags of branded firms seized during raid
• Indian firm Orient Craft Ltd to commence operation at Irba plant
• Global Crude oil price of Indian Basket was US$ 50.56 per bbl on 22.08.2017

INTERNATIONAL

• Global Textile Raw Material Price 2017-08-23
• China expects full-year trade growth amid strong BRICS partnership
• Pakistan : Threats to cotton crop
• Pakistan minister seeks ideas to boost textile sector
• ICE cotton hits near 2-wk high on weather concerns

India's growth revival still a concern: D&B

Growth revival in India remains a "concern" due to subdued consumption and investment demand even nine months after demonetisation and nearly two months post GST rollout, says a report. It also cited mounting bad loans and weak corporate balance sheets as well as farm loan waivers as compounding the problem. According to Dun and Bradstreet, distribution of monsoon remains uneven which might impact rural demand to an extent, while the transition to the Goods and Services Tax (GST) is likely to create some disruption and impact the immediate sales volume across businesses. It noted however that the implementation of GST will help businesses in the mid-term to long-term. "Nine months after demonetisation and two months of GST implementation, concerns to growth dynamics do prevail led by subdued consumption and investment demand, compounded by twin balance sheet problem and strain on state finances due to farm loan waivers," Dun & Bradstreet India Lead Economist Arun Singh said. D&B expects Index of Industrial Production (IIP) to remain weak at only 2.2-2.4 per cent in July. Singh noted that though there is very little chance of a policy rate cut given the upside risks to inflation, at the current juncture, further policy easing by the Central Bank will also not be helpful as demand conditions are low. "Further monetary policy easing would have limited impact on investment as low demand along with excess capacity prevails. Moreover, transmission of the policy easing has not been effective as banks remain risk averse given deteriorating assets quality," he said. Spatial distribution of monsoon with deficit of rainfall across geographical locations and floods in some states poses risk for inflationary expectations which will have a bearing on the course of inflation in the near term, the report said. Moreover, excess liquidity in the banking system along with increase in house rent allowance under 7th Pay Commission would continue to provide upward pressure to prices, it said. D&B expects CPI inflation to be in the range of 2.4-2.6 per cent and WPI inflation to be in the range of 2-2.2 per cent during August, respectively. Singh said: "Policy makers must ensure that the measures taken to solve the problem in the banking sector do not impact the optimism level amongst companies. The strain in the fiscal balance posed by the unanticipated demand for farm loan waivers across states will have some bearing on the public investment going forward.

Source: Financial Express

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Over 1.9 million file GST returns

As many as 19,42,354 taxpayers have till Wednesday filed returns for July under the new goods and services tax (GST) regime. Officers of the GST Network (GSTN), responsible for the information technology (IT) backbone of the GST, said they hoped 2.8 million more would do so by the deadline in the next two days. Those who have filed returns constitute over 22 per cent of total assessees (8.7 million) under the GST regime. However, of the 8.7 million assessees, 2.2 million are yet to complete the migration process to the new indirect tax regime.  The GSTN, also managing the tax filing apparatus, has geared up the IT network to handle the rush, its Chairman Navin Kumar said. A last-minute rush caused the GSTN portal to crash last week, forcing the government to extend the deadline by five days to August 25. Those who wish to claim transitional input tax credit can file returns by August 28.  Sudhir Singh, MD of Marg ERP, a solution provider for GST returns, said over 1.9 million filers was not really a big number, but the numbers would swell by the deadline. He added that his clients were finding it difficult to file returns. Till August 21, Rs 42,000 crore had come in as taxes from 1 million assessees. The collection figure is expected go up substantially, with the number of filers touching nearly 2 million as of Wednesday.  These returns are not detailed ones. Those would be filed next month.

Source: Business Standard

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Rupee softens against dollar, closes at 64.12

The rupee today slipped by 2 paise to close at 64.12 against the US currency due to renewed dollar demand from banks and corporates. The interbank foreign exchange market saw a listless trade as traders preferred to stay on the sidelines ahead of central banks annual meet at Jackson Hole, dealers said.  Investors are hoping to get hints on future policy path of the US Federal Reserve as chair Janet Yellen and European Central Bank President Mario Draghi will address the meet on Friday.  Sustained unwinding of long positions by FPIs and funds in local equities along with a strong dollar overseas largly weighed on the home currency, a forex dealer said.  The local currency opened higher at 64.04 against last close of 64.10 at the interbank foreign exchange market on sustained selling of dollar by exporters and banks.  But later it struggled to keep the initial momentum against its US counterpart and turned weaker.  After trading in a tight range most part of the day, the local unit retreated sharply to hit fresh low of 64.14 in late afternoon-trade before settling at 64.12, showing a modest loss of 2 paise, or 0.03 per cent.  The RBI, meanwhile, fixed the reference rate for the dollar at 64.1272 and for the euro at 75.4072.  A late surge in banking stocks, spurred by Cabinet decision on consolidation of public banks, pulled markets higher today as the Sensex closed up 276 points, in line with a firming global trend. The broader Nifty ended on top of 9,800 again.  The government today decided to set up an alternative mechanism to oversee proposals for consolidation of public sector banks (PSBs) with a view to creating fewer but stronger lenders.  In cross-currency trades, the rupee advanced against the pound sterling to end at 82.17 from 82.18 per pound, but fell back against the euro to finish at 75.66 from 75.38.  It also drifted against the Japanese yen to close at at 58.72 per 100 yens from 58.59 yesterday.  In forward market today, premium for dollar declined due to fresh receivings from exporters.  The benchmark six-month premium payable in January remained steady at 125-127 paise, while far forward July 2018 contract inched down to 260.50-262.50 paise from 261-263 paise.  On the International commodity front, crude prices retreated on growing concerns over supply glut.

Source: Financial Express

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Re-export of cotton likely from Kochi port

The Cochin Port Trust is expected to have facilities soon at its special economic zone for re-export of cotton that is imported from different countries and not used in the domestic market. A.V. Ramana, Deputy Chairman of the port, said the Chief Commissioner of Customs was finalising the response for the proposal. The port currently handles cotton imported in containers. But, it did not allow re-export of the cotton that was not used here and the proposal was to introduce the facility as done at Thoothukudi. According to textile industry sources here, a similar facility is expected at Chennai port too. This would bring down the shipment time and cost for cotton importers here. Mr. Ramana said that there was a proposal to have rail connectivity between Bengaluru and Kochi for movement of goods for shipment. This could be connected to Coimbatore too. The transit cost is heavy for road movement of goods compared to rail. However, if the distance is short, rail movement would be expensive. One of the main challenges for the exporters here to move goods to Cochin Port by road was the Walayar check post. With introduction of GST, the check post has been removed. Hence, the trade would prefer road. However, by providing in-land, rail connectivity export containers in this region could be consolidated and moved to the port. The details for this are being worked out. Volume of goods from this region handled at the Cochin port increased by 30 % to 35 % and this year a 50 % growth is expected. Regarding coastal connectivity, he said mother vessels come to different ports and the goods imported or exported could be moved from one port to another through coastal connectivity. “It is economical to move by sea. Hence, this segment should grow,” he said. P. Nageshwara Rao, Chief Commissioner - Customs and Central Excise, urged the trade and industry here to make use of the Cochin Port as it was closer to the industrial hub here compared to other ports.

Source: The Hindu

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Technical textile industry biggies at Techtextil India 2017

With India’s contribution in the technical textiles industry expected to grow at 12% CAGR and reach 1, 16,217 crore by 2017-18, the need for new technologies in garment manufacturing machinery is on a rise. India’s leading trade fair for technical textiles and nonwovens - Techtextil India – is here. Running into its sixth edition, the 2017 fair is scheduled to take place from 13 – 15 September in the country’s commercial capital – Mumbai. The show size increased by 50% since the last edition and will have space dedicated to 10 product groups and 12 application areas. Some of the big industry players like Reliance Industry, Welspun, Groz Beckert, Garware Wall Ropes, Khosla Profil, Luwa India, Lenzing AG, Archroma, and CHT India will have their latest innovations exhibited. One key feature added this year is the signing up of Telangana Textile Ministry for Techtextil India 2017 with an aim to woo investors to the mega textile park in the state. The Telangana state government will be promoting textile policies and highlight investment prospects at this trade fair in a bid to attract buyers and investors in the state. An important highlight of the 2017 edition will be the launch of the Texprocess Pavilion at Techtextil India, creating an innovation platform for the latest technologies, processes and services for garment-manufacturing and textile processing. Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holding Ltd said: “The launch of Texprocess Pavilion will provide all the garment machinery manufacturers a great platform to display their innovations and build a new and strong client base while at the same time allow Indian market to see how these solutions can help expand their existing capabilities” According to recent studies, the nonwoven sector has emerged to be one of the most preferred areas for investment in India. The technical textile industry also has about 9% of the world’s total consumption manufactured in India. More than 6500 sqm have been dedicated for a grand showcase of its 10 product groups and 12 application areas of Agrotech, Buildtech, Clothtech, Geotech, Hometech, Indutech, Medtech, Mobiltech, Oekotech, Packtech, Protech, Sporttech covering the technical textile and nonwoven value chain in its entirety. Techtextil India also conducts a symposium that would highlight topics like Protective Agrotextiles – Advantages and Future Prospects, Textiles in Aerospace Applications, Fibre Innovations for Functional and Value-Added Nonwovens, amongst others. Techtextil India and Texprocess are part of the “Technical Textiles & Textile Processing” brand with actually 8 shows worldwide within Messe Frankfurt’s Texpertise Network comprising 49 fairs that highlight innovations and show what is driving the global textile industry.

Source: YarnsandFibers

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Rajasthani Textile heritage at lit fest in Bhutan

Thimpu: Ahead of the 8th edition of the Mountain Echoes literary festival that begins tomorrow, an exhibition showcasing the traditional designs of Rajasthan was inaugurated here today. Curated by Indian fashion designer Prasad Bidapa, the show titled "Handmade in Rajasthan" is being hosted at the Nehru Wangchuk Cultural Centre here. With collections inspired by traditional kota doria and handloom cotton saris, the exhibition celebrates the indigenous craft forms that give Rajasthan its distinctive identity and aims to present a 360-degree view of the states textiles. "Mountain Echoes presents a carefully curated segment of beautiful clothes which are handmade in Rajasthan. Each garment reflects the heritage aspect of Indian textiles and craftsmanship, creating a resonance that is luxurious and extremely collectible. "From the finesse of the kota doria sari to the robust hand-woven khadi... from the exquisite precision of our hand- blocked printing to the finesse of our embroidery, this collection is an emphatic tribute to the spinners, weavers, dyers, printers and embellishers of the beautiful state of Rajasthan," Bidapa said. The show sets the stage for the literary festival that will witness literary discussions with speakers from across the globe including Shashi Tharoor, Markus Zusak, Karma Gelay, Pema Abrahams among others. Set against the stunning backdrop of the eastern Himalayas, Mountain Echoes literary festival is an initiative of the I ndia-Bhutan Foundation, in association with the Indian literary consultancy, Siyahi.

Source: PTI

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1.5 lakh fake tags of branded firms seized during raid

Summary: The company official added that after manufacturing tags, the accused used to sell these to companies manufacturing garments. During the raid conducted along with policemen of the Kotwali police station, huge quantity of fake tags was recovered. Tribune News Service Ludhiana, August 23In a surprise raid, an official of a Delhi-based company and the police recovered over 1.5 lakh fake tags of branded garments from a business premises located in Sukhram Nagar on Jail Road. “These include 51,204 tags of CK brand, 66,649 of LV, 39,441 of Chanel, 1,304 of Tommy and 3,958 of Superdry,” said Rajesh. The raid was conducted by the police along with Rajesh Kumar Varma, an official designated for the purpose by Anand and Anand Company. Ludhiana, August 23 : In a surprise raid, an official of a Delhi-based company a nd the police recovered over 1.5 lakh fake tags of branded garments from a business premises located in Sukhram Nagar on Jail Road. The raid was conducted by the police along with Rajesh Kumar Varma, an official designated for the purpose by Anand and Anand Company. Rajesh said he received a tip off that Ramit Malik and Love Malhotra of Malhotra Collections were illegally manufacturing tags of branded garment companies, including CK, LV, Chanel, Tommy and Superdry, which was an illegal practice , As Reported By Tribune. According to the Newspaper, during the raid conducted along with policemen of the Kotwali police station, huge quantity of fake tags was recovered. “These include 51,204 tags of CK brand, 66,649 of LV, 39,441 of Chanel, 1,304 of Tommy and 3,958 of Superdry,” said Rajesh. The company official added that after manufacturing tags, the accused used to sell these to companies manufacturing garments.

Source: NYOOOZ

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Indian firm Orient Craft Ltd to commence operation at Irba plant

Orient Craft Limited, a 40-year-old apparels manufacturer and exporter based in Gurugram, Haryana, is formally set to commence its operation in Irba, Ormanjhi block, some 25km from Ranchi, from Saturday, the first such plant in the state of Jharkhand, to support its growing export business. The new plant will be jointly inaugurated by Union textile minister Smriti Irani and chief minister Das. Orient Craft supplies a wide range of garments, home furnishings and knitwear to brands across the world, including GAP, Polo, Marks & Spencer, among others. Orient Craft chairman and managing director Sudhir Dhingra said that they managed to set up their Irba unit within four-and-a-half months of the investors' summit to showcase "their equal commitment to match steps with the Jharkhand government". It's a small unit as a pilot project but spans no less than 25,000sqft. The reason they could work early on as they were given an existing building that they renovated to suit their needs,"Dhingra said, heaping praise on the government for its "quick decision to allot space and relevant clearances. Their big unit will come up in Hotwar at the proposed 25-acre industrial park. They will commission their factory on around 4 lakh sqft area and gradually expand depending on space. At the Irba unit, 225 machines have been set up to churn out anywhere between 1.5-2 lakh garments worth over Rs 3 crore every month and it will provide jobs to 900 youths but Dhingra added that they plan to create 12,000 to 15,000 jobs in Jharkhand. They have rigorously trained their manpower, mostly local. This apart, they shall be getting master trainers from outside from time to time. In fact, many people from Jharkhand are on their rolls in other parts of the country whom they plan to depute here as master trainers like a ghar wapasi. Hotwar plant would operate in a phased manner. "The first phase, which will offer jobs to 2,000 people, is expected by January, 2018. The second phase by March 2018 will give employment to another 8,000 people. A source said that Orient Craft would pump in Rs 250 crore in three to five years, with the Irba pilot unit coming up in an investment of Rs 5 crore. Though investment numbers tend to be smaller, it can bring a tremendous social revolution.

Source: YarnsandFibers

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Global Crude oil price of Indian Basket was US$ 50.56 per bbl on 22.08.2017

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$ 50.56 per barrel (bbl) on 22.08.2017. This was lower than the price of US$ 50.97 per bbl on previous publishing day of 21.08.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3241.28 per bbl on 22.08.2017 as compared to Rs. 3263.64 per bbl on 21.08.2017. Rupee closed weaker at Rs. 64.11 per US$ on 22.08.2017 as compared to Rs. 64.03 per US$ on 21.08.2017. The table below gives details in this regard:

Source: PIB

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Global Textile Raw Material Price 2017-08-23

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15013 USD dtd. 23/08/2017). 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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China expects full-year trade growth amid strong BRICS partnership

China's foreign trade is likely to swing back to full-year growth in 2017 on back of strong first-half momentum and strengthened cooperation with trade partners. Analysts believe a recovery in global demand and the upcoming BRICS summit will inject a boost to trade growth for the rest of the year. China's foreign trade in the first seven months totaled 15.46 trillion yuan, up 18.5 percent year on year. The economy saw a 7 percent dip in foreign trade volume in 2015 and a 0.9 percent decline in 2016, due to sluggish overseas demand. In the first seven months, exports increased 14.4 percent year on year, while imports rose 24 percent, resulting in a 14.5 percent decline in the trade surplus. "As most of the world's major economies started to recover this year, clearly trade demand is improving," said Lian Ping, chief economist with the Bank of Communications.  In its flagship Global Economic Prospects report in June, the World Bank said it expected a recovery in global trade growth to 4 percent in 2017 after a post-crisis low of 2.5 percent last year.  Trade activities with its BRICS partners have particularly supported China's trade growth this year, as cooperation between the five developing countries are expanding at a strong pace. Leaders of the five economies (Brazil, Russia, India, China and South Africa), which contributed more than half of global growth in 2016, will meet in China early next month for the 9th BRICS Summit.

Bai Guangyu, an expert with the Ministry of Commerce on foreign trade, said China's ongoing economic structural improvement had provided room for further trade and investment cooperation between BRICS members. From January to July this year, China's trade volume with Brazil, Russia, India and South Africa jumped more than 20 percent year on year. In Fujian, the southeastern Chinese province that will host the upcoming BRICS summit in a few weeks, trade with BRICS countries soared 67.7 percent to 49.42 billion yuan ($7.42 billion) in the first half. At a meeting in Shanghai earlier this month, BRICS trade ministers reached agreement on a number of issues, including e-commerce cooperation, service trade plans, the need for policy transparency and improved efficiency. South African Minister of Trade and Industry Rob Davies said he was impressed by the decision to enhance e-commerce cooperation and hoped that Chinese consumers could enjoy more special products from his country, such as grapefruit and red wine. Thanks to ever-growing e-commerce cooperation and imports expansion, products from BRICS countries, such as Brazilian pine nuts, Russian candy and Indian handcrafts, are now only one click away for Chinese consumers. BRICS trade officials also expressed interest in the China International Import Expo, an event that will start 2018 and increase foreign imports to China. Looking ahead, despite uncertainties such as the growing protectionism that could pare trade growth for the rest of this year, economists are confident in the full-year picture. With extensive trade cooperation with BRICS members and stable global economic growth, the recovering trend in China's foreign trade is likely to continue into the second half, and performance for the entire-year will be in much better condition than the previous two years, according to Bai.

Source: China Daily

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Pakistan : Threats to cotton crop

Over the years, cotton growers have had to contend with their fair share of insect pests ranging from the deadly bollworm, plant and stink bugs, aphids, thrips and spider mites to milder threats. It is no surprise then that insect pest management is the highest variable cost associated with production of this crop. This time it is the cotton zone districts of Punjab that have come under pest attack and the consequences are quite dire. The cotton commissioner has admitted that the government has already revised its annual target from 14 million bales to 12.6 million bales. In as many as 11 cotton growing areas there are believed to be zones where a new chemistry of pesticides will be required. Mercifully, the threat can be contained at this point but if the right measures are not taken it could lead to economic losses. One hopes growers will heed the agriculture department’s advice to carry out pest scouting twice a week and avoid repeating use of the same pesticide. Other precautionary measures such as avoiding spraying during rainy and windy weather ought to be taken as well. With harvesting set to begin in September and end sometime in October, the authorities need to undertake and develop an insect pest management research programme that will evaluate strategies that are cost effective yet environmentally acceptable. In the first place, we need to develop methods to avoid insect pest problems through crop management, resistant varieties, and forge better understanding of the pest’s biology/ecology and molecular genetics. The effect of these losses and subsequent low cotton prices have transformed buying interest from leading spinners that helped cotton prices recoup part of the recent losses, with both the Sindh and Punjab varieties moving above the Rs6,000 per maund mark. For the first time in the last two weeks, buyers were sufficiently present in the trading ring. The lower cotton prices seem to have attracted buying from leading spinners who were seen active in replenishing their stocks.

Source: The Express Tribune

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Pakistan minister seeks ideas to boost textile sector

The Pakistani Government will come out with short- and long-term remedial strategies to improve the textile sector, minister of state for commerce and textile Haji Muhammad Akram Ansari said at a function of the Faisalabad Chamber of Commerce and Industry (FCCI) recently. The minister asked all stakeholders to submit their proposals within a week. The proposals will be presented to the Prime Minister Shahid Khaqan Abbasi, according to media reports in Pakistan. Ansari said he would speak to the prime minister about the Rs 180-billion textile package and issuance of notification for the release of the remaining Rs 120 billion at the cabinet meeting scheduled on 22 August. He would request the prime minister to provide the relief unconditionally, he said. The textile industry is facing new types of problems, including high cost of doing business and delay in payment of refund claims, he said. He also promised to take up the issue of difference in gas prices for Punjab and Sindh with the ministries concerned.

Source Fibre2Fashion

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ICE cotton hits near 2-wk high on weather concerns

ICE cotton prices jumped higher on Wednesday to their highest level in almost two weeks on worries over potential damage to crops in South Texas due to Tropical Depression Harvey. "The market is oversold and we've got a tropical depression that could turn into a hurricane and hit the Texas coast where there's a lot of open cotton ready to be harvested," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas. Harvey, formerly a tropical storm, has regenerated into a tropical depression and could strengthen further into a hurricane on Friday, the National Hurricane Center said. Cotton contracts for December settled up 1.08 cent, or 1.59 percent, at 68.89 cents per lb. It traded within a range of 67.91 and 69.47 cents a lb, its highest level since Aug. 10. Meanwhile, top producer India's rainfall deficit for the June-September monsoon season has widened to 6 percent as of Wednesday, the highest since the season's start on June 1, data compiled by India Meteorological Department (IMD) showed. The monsoon delivers about 70 percent of India's annual rainfall, critical for crops such as rice, cane, corn, cotton and soybeans because nearly half of the country's farmland lacks irrigation. Total futures market volume rose by 11,669 to 24,080 lots. Data showed total open interest gained 756 to 226,101 contracts in the previous session Certificated cotton stocks deliverable as of Aug. 22 totaled 12,503 480-lb bales, down from 13,520 in the previous session. The dollar index was down 0.42 percent. The Thomson Reuters CoreCommodity CRB Index , which tracks 19 commodities, was up 0.48 percent.

Source: The Times of India

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