‘Exporters concerned over delay in GST refund’
The sharp reduction drawback rates announced by the government for textile and clothing products may slow down exports of these goods, according to the industry. The drawback rate announced for garments is 2% as against 7.7% earlier. In the case of made-ups, it was 7.3% and has been reduced to 2% now.
‘Working capital issue’
The Excise and Service Tax components have been subsumed under the Goods and Services Tax and only the basic Customs Duty is refunded under the drawback scheme. This was on expected lines. But, the reduction in drawback rates is steep and the GST system is not working as expected, said industry sources. There is a delay in refund of the input tax under GST. Annual textile exports have been stagnant for the last three years at about $37 billion. The reduction in drawback rates will become another contributing factor to slow down exports, said sources. The government should extend the transitional provision for duty drawback and Rebate of State Levies (ROSL) till the end of March next year, said industry representatives. “A major area of concern for exporters is the inordinate delay in refund of GST,” said Ujwal Lahoti, chairman of the Cotton Textiles Export Promotion Council. “Exporters who shipped their goods in July are yet to receive refund of input tax credits or IGST paid. This has caused serious working capital problems for a large number of exporters,” he added. Currently, the ROSL scheme provides for refund of State levies on export goods for garments and made-ups. However, the scheme does not cover the embedded State levies, such as electricity tax and market cess, from fibre to made-ups, he said. The Apparel Export Promotion Council said it was in consultation with the drawback committee and the ministries concerned for consideration of several embedded and blocked taxes that are not covered in GST or drawback. The industry was expecting continuation of the present drawback rates till the consultations were completed. The low drawback rate announced for apparels is a blow when the industry is facing continuous decline in exports, said the council in a press release. The Union Government announced a special package in 2016 to boost garment and made-up exports and enhanced the drawback rates and ROSL under it. The reduction in drawback rates now removes the benefits for exporters. The Government should have a re-look at the drawback rates for textiles, said chairman of Southern India Mills’ Association, P. Nataraj. There is 7%-8% month-on-month drop in ready-made garment exporters and the main reason cited is appreciation of rupee against the dollar. When exports are already under stress and when the industry is not clear on the input tax credit that would be available, the industry should be supported, added Prabhu Dhamodaran, secretary of Indian Texpreneurs Federation.
Source: The Hindu
On Thursday, the World Trade Organisation (WTO) raised the estimate for growth in world merchandise trade volume for 2017 to 3.6 per cent from 2.4 per cent it had projected earlier. The revision is because of positive economic trends in North America and China that are leading to a resurgence of industrial and consumer demand. However, exporters and trade experts said it would be difficult for India to tap this demand in the near term. The US is the largest destination for Indian exports, earning $42 billion in 2016-17. The share of goods heading to the US has increased over the past five years to 15.3 per cent in 2016-17. However, major export categories such as textiles and gems and jewellery have stagnated in the US market. India’s textile exports to the US, across categories such as apparel, made-ups and accessories, have suffered over the last few years due to cheaper alternatives from Bangladesh, Vietnam and the Philippines. “Our market share has stagnated in the low single digits and I do not see a change anytime soon, either in the US or in Europe,” said SK Jain, chairman of the Apparel Export Promotion Council. India’s exports of gems and jewellery, especially rough or processed diamonds, were $9.7 billion, up 12 per cent in the last year. But experts said the trend might be reversed next year. The US is a major market for Indian manufacturers of generic drugs, almost half of which, by volume, reach US shores. “In the US, almost 80 per cent of generics are sourced from India. However, the market share has stagnated while growth in value terms has slowed down,” said PV Appaji, former executive director at Pharmexil. On the other hand, India is ill-equipped to expand exports to China, its largest trading partner. Only 3.68 per cent of India’s exports find their way to China. Facing a $51 billion trade deficit with China, India is trying to upgrade its basket of exports to the country. Cotton, iron ore and copper, the mainstay of Indian exports to China, have come under increasing scrutiny as both the government as well as exporters try to shift towards value-added exports in an attempt to cap the growing trade deficit. Former Commerce and Industry Minister Nirmala Sitharaman had earlier said the export focus should shift away from raw materials. The commerce ministry has identified industries such as hardware, electronics, pharmaceuticals, textiles and automobile components to realign and boost exports. With a burgeoning middle class and rising wages, China is expected to relinquish its dominance over labour intensive, low-end manufacturing in the near future. This is an opportunity the Indian industry is hoping to exploit. Changing consumption patterns have also shaped greater demand for consumer goods in China, where overall demand in the first half of 2017 was driven by growth in industry (up 6.4 per cent) and services (up 7.7 per cent). “We are trying to harness our strength in labour intensive sectors where India enjoys significant advantage over other developing nations,” a commerce ministry official said. The top five export categories to China are all input products. These are used by China to manufacture goods that it ships abroad, often back to India. These, along with other raw materials like iron and iron ore, constituted more than 70 per cent of India’s exports to China, said Ajay Sahai, director general, Federation of Indian Exports Organisations. These export categories were subject to volatile global commodity prices and should be swapped for products higher in the value chain, a trade expert based in Delhi said.
Source : Business Standard
A spurt in the import of gold from Indonesia and an increase in import duty on crude palm oil by India are likely to be the key topics of discussion when Commerce & Industry Minister Suresh Prabhu meets his Indonesian counterpart Enggartiasto Lukita here on Monday. “India is worried about the sharp increase in gold imports from Indonesia over the past two-and-a-half months following the implementation of the Goods & Services Tax (GST) regime, and is considering possible curbs. Indonesia, however, would not want its free trade agreement (FTA) with India to be tampered with. A solution to the problem may be discussed by the two Ministers,” a government official told BusinessLine. Import of gold at nil customs duties from India’s FTA partner countries (a customs duty of 10 per cent is imposed on other countries), primarily South Korea and Indonesia, turned into a big problem for India from July, when the 12.5 per cent excise duty imposed on imports was replaced with a 3 per cent GST. New Delhi was forced to impose import restrictions on South Korea despite the FTA as it could show that most of the gold coming in from that country was actually originating from Dubai, which is not allowed under an FTA. However, curbing imports from Indonesia will be difficult, as the country mines its own gold. “With a steep increase in gold import from Indonesia, there is an urgent need to take some action. The two countries could discuss the matter and reach an amicable solution,” the official said. Indonesia is also concerned about India’s decision to double the import duty on crude palm oil to 15 per cent from 7.5 per cent earlier this year. Crude palm oil is its primary export to India. Lukita had raised the matter last month with Union Minister for Processed Food, Harsimrat Kaur Badal, asking for a re-look. “We expect the Indonesian Minister to press for a lowering of duty on import of crude palm oil. However, it may be difficult to give him any definite assurance,” the official said. Other areas that may be touched upon by the two Ministers include the ongoing negotiations on the Regional Comprehensive Economic Partnership, which is moving towards conclusion, and the WTO ministerial meet in Buenos Aires in December. “India and Indonesia have common interests at the WTO as both want to protect the interests of their vulnerable farming community by continuing to fund public procurement programmes,” the official said.
Source: Business Line
Indore: The Central Board of Excise and Customs (CBEC) has deferred by a month the mandatory self-sealing of export containers and use of radio-frequency identification (RFID) tags to November 1 as traders are facing difficulties in locating vendors of the tracking devices. The process had to come into force from October 1, but “considering the difficulties expressed by trade associations in locating vendors for RFID seals, the Board had decided that the date for mandatory self-sealing and use of RFID container seals is deferred to November 1, 2017”, said a CBEC circular. The existing process may continue till such time, said the circular to senior officials of Customs and Excise. The CBEC said it had received representations from several associations seeking information on the availability of RFID tamper proof one-time-bolt container seals. “Several potential vendors have communicated with the Board and field formations regarding availability of seals and their intention to provide reader devices (for reading seals) at select or all ports/Inland Container Depots),” the circular said. In order to ensure that electronic seals deployed are of a reliable quality, the CBEC said it has adopted international standards for “high security seals”. As a measure of data integrity and security of sealing, it said that vendors are also required to ensure that the Tag Identification (TID) number is captured in their data base and the Import-Export Code (IEC) of the exporter is linked to the same at the time of sale of the seals.
Source: Financial Express
The Southern India Mills’ Association (SIMA) has appealed to the ministry of finance to have a re-look at the new duty drawback rates announced by the Central Board of Excise and Customs (CBEC). It has also urged the government to refund all the blocked, embedded taxes, levies and accumulated input tax credit on fabric, especially the processed fabric. The existing duty drawback rate on cotton yarn is 2.5 per cent, which is reduced to 1.2 per cent effective October 1, 2017. Likewise, the rates on cotton grey fabric, cotton garments and madeups have been reduced to 1.3 per cent, 2 per cent and 2 per cent from 4.3 per cent, 7.7 per cent and 7.3 per cent, respectively. In a press release, SIMA chairman P Nataraj stated that the cost of dyes and chemicals accounts for 30 to 40 per cent of the processing charges. “Dyes and chemicals attract 18 or 28 per cent GST making 3 to 5 per cent accumulation of input tax credit as the fabric or processing job work attracts only 5 per cent GST.” He added that the service tax has been increased 15 to 18 per cent and several services have been brought under tax net under GST. At yarn stage the actual drawback rate would work out to 2 to 2.5 per cent and at grey fabric stage, the same would work out around 3 per cent while at finished fabric, garments and madeups would work out to more than 5 per cent, according to Nataraj. Stating that exports will suffer and dwindle down sharply due to reduction in duty drawback rates, Nataraj urged the government to have a re-look in order to protect the jobs of several million people working in the textile industry. He urged the government “to extend the existing drawback benefits till the GST anomalies and problems are fully sorted out and also the realistic drawback rates refunding all blocked, embedded taxes and levies including accumulated input tax credit at fabric stage are fully taken into consideration”.
Source : Fibre2fashion
Delays in processing tax refunds under the new Goods and Services Tax regime has locked up the funds of exporters, hurting their businesses and affecting their ability to be competitive in international markets. On September 19, a delegation of exporters met Revenue Secretary Hasmukh Adhia, who is heading a committee set up to look into the GST-related issues that India’s export sector is facing. During the meeting, the Federation of Indian Export Organisation reportedly said that the government should fast-track the refunds process for exporters or as much as Rs 65,000 crore of their money could get stuck in the July-October period, affecting their ability to do business. The Goods and Services Tax, which was implemented from July 1, subsumes all the indirect taxes that businesses earlier paid the Centre and states separately, with the aim of creating a common market. It involved a complete overhaul of the tax filing system. Under this regime, companies are given the opportunity to claim refunds for the taxes they pay while buying inputs for their businesses, such as raw materials. However technical glitches, among other things, have meant that the government has repeatedly pushed back the deadline for filing GST returns, delaying tax refunds too. Exporters claim that they are suffering the most. Earlier this month, the Union government took note of the complaints of exporters and ordered the Adhia-led committee to be set up. It has been tasked with providing recommendations to fix the problems exporters face. The committee is scheduled to meet next on October 6. However, it remains to be seen if the GST Council, headed by Finance Minister Arun Jaitley, acts on its recommendations.
Blow to exports
Indian exports were not doing particularly well in the pre-GST months of this year in the first place. The rate of export growth in rupee terms slowed during the March-July period before rising again in August. But exporters organisations now fear that this growth could be undone by the negative effects of GST. In its presentation to the government, the Federation of Indian Export Organisation said that the exports to gross domestic product ratio, an indicator of the relative importance of international trade in a country’s economy, is down to 20% from its 2013 high of 25.43% at a time when Indian exporters are facing tough competition from countries such as China, Bangladesh and Vietnam in international markets. With the chaos following the implementation of GST, it said that it feared that the worst is yet to come.
Working capital blocked
Exporters are required to pay GST upfront for the inputs they buy from their suppliers. They can then claim tax refunds from the government, as exports are tax free. A spokesperson from the Federation of Indian Export Organisation said that a sharp liquidity crunch has gripped the majority of exporters as their funds, paid as tax, are locked up with the government, with refunds for taxes paid for the July period only expected in December. The process of claiming refunds is taking much more time than was envisaged because deadlines for the filing of returns are constantly being pushed back. For instance, due to technical snags in the GST portal, the government pushed the final deadline for filing the GSTR 1 return for the month of July to October 10 from the earlier deadline of August 10. GSTR 1 is a detailed compilation of all sales invoices generated by a business in a month. According to an information booklet prepared by the government on GST for exporters, 90% of the refund amount would be processed within a week of the receipt of the refund application while the rest 10% would be paid within a maximum period of 60 days. The booklet says that “interest @ 6% is payable if full refund is not granted within 60 days”. However, so far, no one has got refunds yet, said a tax advisor to an industry association, speaking on condition of anonymity. “The returns are not being filed in the right manner as it was anticipated, so nobody in the government is concentrating on providing refunds,” the advisor said. A spokesperson for the Federation of Indian Export Organisation said that the government should not wait for final filings – when GSTR 1, GSTR 2, and GSTR 3 are all filed, at the end of which the total GST liability/refund is calculated. He said that the government should instead release refunds based on GSTR 3B returns. This is a simplified return that includes only a summary of invoices raised in a month instead of details of each invoice raised. “Exporters were hoping that refunds for July will come in August but because the return dates are postponed, the refunds will not come before December,” said a spokesperson for the Federation of Indian Export Organisation. “We are saying that refunds should be given based on GSTR 3B.” This was echoed by Suranjan Gupta, Additional Executive Director of Engineering Exports Promotion Council, a trade body sponsored by the government. Gupta said that the delay between tax filing and the processing of refunds is particularly harmful to small companies as they are forced to take additional loans to fund their day-to-day business activities. He said that these small firms often end up paying higher interest rates too. “The long gap between payments of tax on inputs and getting refunds will make exports expensive as firms will have to borrow money to pay tax and interest,” he wrote in an emailed response. “The micro and small exporters would be particularly hit as the cost of credit to them is very high.”
Services exporters denied refunds
Software export associations such as Nasscom have their own list of grievances, which have been brought to the notice of the GST Council. Software exports are badly hit as firms that export software services are not eligible for tax refunds on the purchase of capital goods that they use to provide these services, said Bishakha Bhattacharya, Senior Director and Head – Public Policy and Government Affairs at Nasscom. For software export companies, capital goods could include servers, computers and networking devices, among other things. “This again seems to be an unfair denial of input tax credit,” Bhattacharya said. “You don’t have duty exemptions, which is available for others. You are also now denied refunds for GST paid on capital goods.” A software exporter from Pune, who spoke on condition of anonymity, said that his company earlier used to save about Rs 3 crore in exemptions each year under the government’s Software Technology Parks of India scheme, established in 1991 to boost exports. Now, he claimed, his company has already paid Rs 25 lakh in import duties in a month, and is waiting for GST refunds. In the earlier tax regime, companies part of the Software Technology Parks of India scheme were entitled to claim exemption on taxation on capital goods. This exemption is not available under GST. Thus, software exporting companies are now demanding that the government refund the taxes they paid while acquiring capital goods. “There were various exemptions that STPI [Software Technology Parks of India] companies used to get….[But these] are now gone,” said Vidyadhar S Purandare, Secretary, Software Export Association of Pune. “They have now asked STPI companies to pay integrated GST and central GST and then claim a benefit which is limited to basics customs duty. With this, the cash flow requirement has gone up.”
Source: Scroll
BHUBANESWAR: The State Government on Saturday directed the Handlooms, Textiles and Handicrafts department to expedite the process for establishment of the proposed apparel incubation centre for promoting entrepreneurship in the apparel and garment sector.Though the Ministry of Textiles had sanctioned a proposal for setting up of an incubation centre at National Institute of Fashion Technology (NIFT), Bhubaneswar two years back, the proposed centre is yet to come up. Chief Secretary AP Padhi, who reviewed the performance of the department at a high-level meeting here, directed the department to extend active support to NIFT for establishment of the incubation centre which would contribute to entrepreneurial development and enhance the employability in the region. The 3-seater (300 machines) apparel incubation centre approved by Ministry of Textiles will provide employment opportunity for about 600 youths in textile and garment sectors. With the Centre increasing subsidy by 30 per cent for upgradation of powerloom sector and for the benefit of small weavers, the Chief Secretary asked the department to extend necessary financial support to powerloom units struggling for survival. The meeting also decided to create yarn bank in all powerloom centres and clusters, so that weavers could get their raw materials in enough quantity and at a reasonable price. This will also help weavers to plan their production programme in advance. Sources familiar with the development said most of the powerlooms are facing raw material shortage and weavers are not able afford high cost of yarn in the market. Though the State Government has been planning for a long time to develop a common facility centre and yarn banks for the weavers, this has not materialised due to lack of institutional support. With about 1500 functional powerlooms in the State, the Chief Secretary asked the department to develop market linkage for their products. The meeting also discussed the progress of textile museum being set up by the Government at Gandamunda here. The museum is being set up on 12 acres adjacent to the State Institute for Development of Arts and Crafts. It will showcase traditional handloom and handicrafts of the State.
Source: The New Indian Express
Muscat: The project, which will manufacture a wide range of cotton yarn and it is going to be the first major cotton yarn plant in the region, will be operated as SV Pittie Sohar Textile FZC LLC, which is a wholly-owned subsidiary of Bombay Stock Exchange listed SVP Global Ventures Ltd. A land lease agreement was signed by an Indian company with Sohar Freezone to build a $300 million cotton yarn plant within the free zone area. Sultan Bin Salim Bin Said Al Habsi, Chairman of Sohar Port and Freezone, led a high-level delegation from Oman to Jaipur, on Saturday. They met with ShriVallabh Pittie Group (SVP), one of the largest manufacturers of cotton yarn in India and a global leader in the sector. The facility will eventually provide over 1,500 jobs and is expected to start commercial operations in late 2019. Abdullah Humaid Al Mamary, Chairman of Bank Sohar, together with Acting-CEO Sasi Kumar and other senior officials from the bank, were also part of the delegation. Bank Sohar has been awarded the syndication mandate to fund the entire project in two phases. An agreement to this effect was entered into with SVP Group. The bank has currently underwritten phase-one debt, to achieve financial closure. On successful completion of phase-one, the bank plans to syndicate a term debt for phase-two, along with a share of phase-one debt, to interested lenders. “We are honoured to be the finance partner for a project of this magnitude that is expected to have a significant impact on the development of the region. It demonstrates our commitment to collaborate as a one-stop financial services provider catering to the diverse needs of individuals and large corporate customers,” said Sasi Kumar. The plant will import 100,000 metric tonnes of cotton fibre annually through Sohar Port, with around 50 per cent coming from the United States and the remainder split between Australia and India. The plant will produce around 75,000 tonnes of finished yarn each year, which will be exported back through the Port to China and other global markets including Bangladesh, Pakistan, Vietnam, Portugal and Turkey. “With over two-hundred years experience in the textile business, our company has a highly skilled and experienced management team with a strong focus on automation and technology. We source best-in-class machinery from leading global companies to ensure the highest levels of productivity and efficiency,” said Chirag Pittie, SVP Group’s Managing Director. The new SVP facility will be the first step in establishing a fully-fledged textile cluster in Sohar Freezone. Downstream investments in knitting, weaving, spinning and fabric manufacturing could create a thriving industrial cluster providing thousands of new jobs for local households. “Today’s agreements showcase the great things we can offer to investors in Sohar Freezone: the safest haven in the Middle East for foreign direct investment combined with high levels of government support; project financing with an Omani bank; 100 per cent foreign ownership; our optimal location and seamless connectivity to key global markets through our adjacent port; highly competitive land and energy rates; and a young, well educated local workforce. Taken together, this is a sure fire recipe for business success,” said Jamal Aziz, CEO of Sohar Freezone.
Source: Times of Oman
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$ 55.77 per barrel (bbl) on 22.09.2017. This was higher than the price of US$ 55.51 per bbl on previous publishing day of 21.09.2017. In rupee terms, the price of Indian Basket increased to Rs. 3622.85 per bbl on 22.09.2017 as compared to Rs. 3581.88 per bbl on 21.09.2017. Rupee closed weaker at Rs. 64.96 per US$ on 22.09.2017 as compared to Rs. 64.53 per US$ on 21.09.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 22, 2017 (Previous trading day i.e. 21.09.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.77 (55.51) |
|
(Rs/bbl) |
3622.85 (3581.88) |
|
|
Exchange Rate |
(Rs/$) |
Source: PIB
The new High Dynamic Range (HDR) simplifies designing, reduces laser marking times and guarantees “what you see is what you get” achieving more natural and three-dimensional designs. The Spanish company starts a new era in laser design processes, allowing greater creativity and saving time, while avoiding second-rate production and providing the sector with a common language. Jeanologia has been present in India since 2004 and 6% of the total jeans production in the country is done using their sustainable technologies. Valencia-Spain During the international trade fair Denimsandjeans, being held September 25-26 in Bangalore, India, Jeanologia will present its High Dynamic Range (HDR). The system created by the Spanish company, specialized in developing sustainable solutions for garment finishing, reduces jeans production time by 30%. The new HDR simplifies how designing is done, reduces laser marking times, increases production capacity and reduces time-to-market.This new system marks an advance in the transformation of the jean industry towards efficiency and sustainability, while also dramatically improving creativity and guaranteeing quality with “what you see is what you get”. Jeanologia starts a new era in laser design process for the textile industry with their hyperbolic system High Dynamic Range patented by the Spanish company. This revolutionary generation of laser increases the dynamic contrast of tones and creates a sensation of depth closer to the real thing, achieving more natural and three-dimensional designs. Jeanologia’s technology has been used in India for 13 years. The company has taken on the challenge of transforming the denim production centers of the country, and currently acts as the expert technology partner for top brands and laundries, supporting them in their objective to improve competitiveness, increase production and eliminate all processes that are harmful for workers and the environment. Currently, 6% of the total jeans production in India have Jeanologia’s sustainable technology in its DNA and this figure is growing exponentially each year. Local brands such as Killer Jeans and Numero Uno (who develop eco-friendly projects in the industrial areas of Vapi and Selaqui Dehradun respectively) already trust the Spanish company to provide sustainability and efficiency in their jeans production. While major international top brands like Levi’s, Lee, Wrangler, Pepe Jeans, H&M among others have Jeanologia as their expert technology partner. “The transformation of India’s jean industry towards efficiency and sustainability has begun. The production centers are integrating our laser, ozone and nano-bubble technologies allowing them to reduce water, chemical and energy consumption”, assures Manuj Kanchan, Asia Area Manager at Jeanologia. “With the presentation of our HDR system at Denimsandjeans, Jeanologia will reassert their mission to create both innovative and sustainable products: increasing competitiveness, reducing costs, saving designers time, creating a common language for the industry, boosting creativity and avoiding second-rate quality”, adds Kanchan.
Talk: The evolution of jeans finishing
During the trade fair, Jordi Juani, Division Director from Jeanologia will give a talk on “The evolution of jeans finishing, from manual to technological”, September 25 at 3.30pm. Juani will take a journey from traditional methods for finishing jeans, based on manual labor with high water and chemical consumption, to the current transformation that the industry is experiencing with eco-efficient and sustainable technologies from Jeanologia. The new model uses technology as its main tool to obtain the right product with maximum quality, while also reducing environmental impact, production costs and time-to-market.
Jeanologia in India
Since 2004 Jeanologia has been fostering a change in the jeans industry in India directly investing in the country. Of India’s sustainable garment finishing technology, 90% of the market currently bears the Spanish company’s stamp. Jeanologia develops major projects for export companies and national producers like Shahi, Arvind, Everblue (Raymonds), KG denim, FFI, Shell Apparels, Orient Craft, Anish India and many others.
In the north of India, Jeanologia has the support of market leaders such as Anupam, Modern Dyeingor Globewash implementing their new technologies. In Bangalore and New Delhi, Jeanologia has an experienced and dynamic team of technical specialists who directly serve the needs of its clients.
Jeanologia: leader in textile technology
Since 1993 their mission has been to improve the industry of garment finishing through their technology and know-how. Their laser, G2 ozone and e-flow system have revolutionized the textile industry. They offer infinite design possibilities and garment finishes, while saving water, energy and chemicals, eliminating waste and toxic emissions. Currently the Spanish company has clients in 5 continents. The export of its machines and services represents 90% of its total billing, reaching 60 countries including: the USA, Mexico, Columbia, Brazil, Germany, Italy, Portugal, India, China, Russia, Japan, Morocco, Bangladesh, Turkey, Tunisia and Vietnam. The biggest market brands such as Levi’s, Polo Jeans, Abercrombie & Fitch, Edwin Japan, Pepe Jeans, Diesel, Hilfiger Denim, Salsa jeans, Jack & Jones, Replay and other large retailers such as GAP, Uniqloy H&M, among others, place their confidence in Jeanologia, using technology developed by the company.
Source: YarnsandFibers
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1360.79 |
USD/Ton |
0.84% |
9/24/2017 |
|
VSF |
2448.66 |
USD/Ton |
0.12% |
9/24/2017 |
|
ASF |
2425.92 |
USD/Ton |
0% |
9/24/2017 |
|
Polyester POY |
1306.96 |
USD/Ton |
-0.75% |
9/24/2017 |
|
Nylon FDY |
3290.15 |
USD/Ton |
0.93% |
9/24/2017 |
|
40D Spandex |
5761.56 |
USD/Ton |
0% |
9/24/2017 |
|
Polyester DTY |
5731.24 |
USD/Ton |
0% |
9/24/2017 |
|
Nylon POY |
1546.52 |
USD/Ton |
0% |
9/24/2017 |
|
Acrylic Top 3D |
2971.75 |
USD/Ton |
0.51% |
9/24/2017 |
|
Polyester FDY |
2577.54 |
USD/Ton |
0% |
9/24/2017 |
|
Nylon DTY |
1667.82 |
USD/Ton |
-0.45% |
9/24/2017 |
|
Viscose Long Filament |
3396.29 |
USD/Ton |
1.82% |
9/24/2017 |
|
30S Spun Rayon Yarn |
3047.56 |
USD/Ton |
0% |
9/24/2017 |
|
32S Polyester Yarn |
2031.71 |
USD/Ton |
0.30% |
9/24/2017 |
|
45S T/C Yarn |
2880.78 |
USD/Ton |
0% |
9/24/2017 |
|
40S Rayon Yarn |
3214.34 |
USD/Ton |
0% |
9/24/2017 |
|
T/R Yarn 65/35 32S |
2425.92 |
USD/Ton |
1.27% |
9/24/2017 |
|
45S Polyester Yarn |
2153.00 |
USD/Ton |
0% |
9/24/2017 |
|
T/C Yarn 65/35 32S |
2425.92 |
USD/Ton |
0% |
9/24/2017 |
|
10S Denim Fabric |
1.42 |
USD/Meter |
0% |
9/24/2017 |
|
32S Twill Fabric |
0.43 |
USD/Meter |
0.36% |
9/24/2017 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
0% |
9/24/2017 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
9/24/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
9/24/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15162 USD dtd. 9/24/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Minister of State for Commerce and Textile Haji Mohammad Akram Ansari has said that issues confronting the textile sector will be sorted out on priority after the return of Prime Minister Shahid Khaqan Abbasi from abroad. Addressing industrialists and exporters of value-added textile sector at a dinner, organised by the Pakistan Readymade Garment Manufacturers and Exporters Association on Friday, Mr Ansari said a three-member committee has already been set up by the prime minister to look into the issues faced by the sector. The committee comprising the Federal Board of Revenue (FBR) chairman, secretary commerce and secretary finance has been tasked to sort out delay in refund-related payments, waiver of 10 per cent performance condition to qualify for getting duty drawback on taxes (DDT) under the PM’s package and extending the period of package to three years. The minister said that the short-term issues confronting the textile sector would be resolved within 15 days. He added that the PM’s relief package of Rs180 billion will be implemented in totality because fall in exports from $25bn to $20bn is alarming and there is an urgent need to revive exports in order to stop the trade gap from widening. The minister, in full agreement with exporters, said that the cost of production is much higher than the regional countries and without giving level playing field to exporters they could not compete with their rivals on the world markets. He added that a meeting would be arranged with the prime minister so that stakeholders of the textile sector could have an opportunity to appraise him about the high production cost and also try to find a solution. He agreed that special gas and power tariffs should be allowed to the textile sector. Prominent among those present were Zubair Motiwala, Jawed Chanoi, Sheikh Mohammed Shafiq, Jawed Bilwani, Mian Zahid Hussain and diplomats from Iran, Muscat and Russia.
Source: Dawn
VTT Technical Research Centre of Finland has been able to dissolve worn and iscarded cotton and use it as a raw material for new fibre. The first product models show that recycled fibre can be transformed into a yarn and pleasant fabric. The first batch of recycled fabric has been produced in a pilot facility based on a carbamate dissolution process. The fabric made from the recycled fibre meets the researcher's expectations: it is smooth with a subdued matt finish and drapes nicely. Ali Harlin and Pirjo Heikkilä of VTT say that the fibre feels natural. The method is much friendlier to the environment than the viscose process, in which carbon disulphide is needed for dissolution. In addition, polyester residues are removed from the cotton material using methods familiar from the pulp industry. According to calculations during the technology commercialisation project, the carbon footprint of recycled fibre produced using carbamate technology is about a third smaller than for cotton and in the same category and as the most environmentally friendly viscose. The water footprint of the recycled fibre is around two per cent of that of virgin cotton and 10 per cent of viscose. Yarn was spun at Tampere University of Technology from discarded cotton turned into fibre in VTT's laboratory. The fibre's characteristics rivalled those of commercial yarns when being spun. Following this stage, the first model products, gloves and flat-knitted fabrics, were made by knitwear company Agtuvi. Research and development is still required in order to achieve process reliability. The Infinited Fibre Company startup has been established to advance the process design and licensing of the technology. The spinning process is being developed towards industrial production through collaboration between VTT and the Infinited Fibre Company at VTT's Bioruukki pilot centre. A range of cellulose fibres may be developed at a spinning unit built at Bioruukki this summer. VTT's method forms part of the TEKI project, which was launched internationally with the title of The Relooping Fashion Initiative. The project involves piloting and modelling a closed-loop ecosystem in line with circular economy principles; the ecosystem will enable new industrial applications of previously unusable textile waste. VTT, Ethica, the Helsinki Metropolitan Area Reuse Centre, Seppälä, Remeo, Pure Waste Textiles, RePack, Touchpoint and Lindström are involved in the project. The project is funded by Tekes and the participating businesses. The collection and sorting of discarded textiles is also being developed via the Telaketju project jointly funded by Tekes and the ministry of the environment. This involves the creation of an ecosystem of companies and other actors, with the aim of taking Finland's textile circular economy to the next level.
Source: Fibre2fashion
ISLAMABAD: Federal Minister for Commerce and Textile Muhammad Pervaiz Malik assured on Saturday that the government is striving to develop the national economy by enhancing the country’s exports profile. “We are exploring markets in other emerging economies to find new export avenues,” he claimed, adding that Pakistan’s exports have increased by 38% as of December 2016, after obtaining Generalised System of Preferences (GSP-Plus) status. Talking to the media after inaugurating the regional office of All Pakistan Textile Mills Association (Aptma), Malik said the government is committed towards the growth of textile sector and the Rs180 billion export enhancement package is a major step in that direction. He said the government fully supports value addition in textile products and modernisation of textile sector by importing advanced machinery and equipment. Malik assured that export enhancement package will be increased in size as time progresses, particularly for textiles sector. Speaking on the occasion, Aptma Chairman Aamir Fayyaz Sheikh said that Pakistan requires export-led growth for economic growth and stability of the country. He said that exports must touch the $50 billion mark to ensure effective economic growth and prosperity in the country. The textile industry contributes 60% in total exports of the country, which is considered the backbone of the economy, he added. Emphasising the importance of a competitive business environment, he said that Pakistan is facing tough competition from regional rivals and needs to upgrade its production mechanisms to become cost-competitive. Sheikh said that high energy prices are a major problem for the textile industry especially the spinning, weaving and processing industries. He said that availability of energy at regionally competitive prices is also important.
Source: The Express Tribune
The Ethiopian Textile Industry Development Institute and the Italian Trade Agency signed a cooperation agreement for the enhancement of textile industry development in Ethiopia. Small, medium and large scale Ethiopian enterprises operating in the textile industry will be the key beneficiaries of the assistance through the 'Italy-Ethiopia textile technology center' project. The agreement includes 200,000 Euros assistance for technology and equipment dedicated to local training. General Director of Ethiopian Textile Industry Development Institute Seleshi Lemma said the assistance will help to improve its capability through training and technology. Speaking on the occasion, Italian ambassador to Ethiopia Giuseppe Mistretta said the Ethiopian government has given high priority to textile industry development. The Italian government is committed to support Ethiopia’s efforts in realizing goals related to textile industry through various initiatives, he added.
Source: Ethiopian News Agency
The Kano State Government has signed a Memorandum of Understanding (MoU) with Shandong Ruyi Technology Group of China for the establishment of a $600million Textile Industrial Park in the state. The Secretary to the State Government, Alhaji Usman Alhaji, and the company’s Chairman, Mr. Yafu Qiu, signed the agreement at the company’s headquarters in Jining, Shandong, China, according to statement made available to THISDAY by Mr. Salihu Tanko Yakasai, the Director General of Media to Governor Abdullahi Ganduje. The statement explained that Shandong Ruyi is China’s leading innovative technology textile enterprise, adding that the planned multi-million dollar investment in Kano would be its biggest in Africa upon completion. Speaking shortly after the ceremony, the state governor, Ganduje, who had earlier visited one of the group’s factories, described the event as “the biggest Foreign Direct Investment expected in the state in recent times. “I thank you for the invitation to visit one of your factories and from what I have seen in your production line, your facilities are world-class. One can only imagine the number of jobs that would be created and the value that would be added to our economy when your plant commences operation in Kano,” he stated. Ganduje informed his host that Kano has put in place facilities for textile clusters across its 44 local government areas and requested the group to visit the state and inspect them, with a view to incorporating them into the Textile Industrial Park. He assured the company that his administration would create an enabling environment for the smooth take off of its project, pointing out that his administration was taking steps to ensure that Kano becomes the number one destination for investment not only in Nigeria but in the West Africa sub-region. On his part, the Chairman of Ruyi Group, Mr. Yafu Qiu, said the investment is to hasten growth and support global development, noting that having the governor come personally for the signing of the MoU has boosted his confidence for the successful l implementation of the project. According to him, his company would also look at the possibility of executing a solar power project specifically for the Textile Industrial Park, even as he expressed the desire to collabor ate with the government towards enhancing the capacity of its on-going hydro power project at Tiga and Challawa. He added that the company would also look into the possibility of investing in existing textile companies in Kano.
Source: This Day
Oklahoma City : The Carnegie Farmers' Cooperative Gin Co. board of directors couldn't have picked a better year to buy a new gin, co-op manager Jeannie Hileman said. New is a subjective descriptor in this case. The gin, with a price tag of $3.5 million, was only slightly used in North Carolina, but it's new to Carnegie. Hileman said brand-new machinery would cost $11 million or more. The co-op also bought 80 acres north of Carnegie for installation. This year's cotton growing season is making that deal even sweeter. Crews are rushing to put the gin together with just three weeks left before harvest, because this year looks to be a record-setter in Oklahoma. Hileman said an 18-month construction process has been trimmed down to less than half that time; the gin will be ready for the second pass of baling, running in tandem with the current equipment. "A good year for us in the past would have been 30,000 to 40,000 bales; last year we ginned 60,000," she said. "This year, our acres have doubled, and we're not sure what that's going to mean for us, although it's going to be a big increase in bales." Harvey Schroeder, executive director of the Oklahoma Cotton Council, said farmers were expecting about 555,000 acres producing cotton in the state this year. The latest figures from the National Agricultural Statistics Service under the U.S. Department of Agriculture suggest that number will be closer to 580,000 acres, moving Oklahoma to the third-largest producer of cotton in the U.S., supplanting Mississippi. The Journal Record reports that government reports have also adjusted the state's expected yield per acre to 848 pounds, up 80 pounds from August, leading to a projection of nearly 1 million bales for the 2017 Oklahoma cotton crop. Schroeder said gin operators have been preparing as well as they can to handle the increased load. Lee Stinnett, office manager at the Cotton Growers Cooperative in Altus, said his co-op is planning for longer workdays than normal. Stinnett said the increase of cotton acres is primarily due to poor grain prices. Farmers rotate crops to protect the quality of their land while seeking the best profit margin, and this year that meant less wheat and milo. Cotton also has a deep taproot that finds nourishment below the reach of wheat plants, which probably helped as well. Schroeder and others in the industry are keeping their fingers crossed. Harvest is still three weeks away and the weather could always take a nasty turn. It looks like crews will be pulling bolls by hand as well as stripping the plants with machinery to keep up this year, he said. The full harvest should be done by Christmas. Ginning the seeds from cotton fibers probably won't be finished until April. "Our neighbors to the south lost a lot of cotton to the hurricanes," Schroeder said. "You can't count your chickens 'til they hatch."
Source: The Columbus Ledger
JARKUDUK, Uzbekistan - Uzbekistan will no longer have thousands of students, teachers and healthcare workers pick the cotton harvest, Prime Minister Abdulla Aripov said on Saturday, confirming a halt to a practice condemned abroad as forced labor. Government officials and other sources told Reuters earlier this week the Central Asian nation, one of the world’s leading cotton exporters, had abruptly withdrawn students, teachers and medical workers from the autumn harvest. “It’s forever,” Aripov said when asked by reporters whether the government had pulled students and state employees from the fields only for the current harvest rather than for good. “Students should study, state employees should work,” he said. Officially, the harvest work has been voluntary and paid at about $0.005 per kilogram. In reality those who refuse risk expulsion or dismissal from their jobs unless they bribe an official or hire someone to work in their place, according to sources familiar with the matter. The move dovetailed with reforms undertaken by President Shavkat Mirziyoyev in the tightly ruled, former Soviet republic since veteran strongman leader Islam Karimov’s death a year ago. Mirziyoyev has moved to liberalize foreign exchange and travel regulations and had about 16,000 people struck off a blacklist of potential extremists, reforms that may help him rebuild ties with the West and attract foreign investment. Despite ending the use of child labor in 2015 under international pressure including boycott campaigns, Uzbekistan ranked among the top five worst offenders in the Global Slavery Index compiled last year by activist group Walk Free Foundation. The foundation estimated that almost 4 percent of the Uzbek population - 31 million - lived in “modern slavery,” placing he country second only to North Korea in that category. Reporting by Olesya Astakhova; writing by Denis Pinchuk; editing by Mark Heinrich
Source: Reuters
The Ministry of Industries, Mining and Trade has introduced new regulations aimed at fighting rampant smuggling in the domestic apparel market. The ministry has decided that foreign brands willing to sell their products in the Iranian market are required to directly apply for permits to open sales outlet in Iran without middlemen, Fars News Agency quoted deputy minister of industries, mining and trade, Yadollah Sadeqi, as saying. The representatives are required to produce 20% of the value of their imports (in rial terms) inside Iran in the first two years of their business activities in the country. After two years, the authorized representatives are obligated to export 50% of the apparel produced domestically. “Currently, 14 companies have accepted the new regulations and conditions, and they’re in the process of registering their representatives,” Sadeqi said. Referring to illegal import channels, he said as free trade zones are one of the main points of entry open to smugglers of apparel, the ministry has banned apparel imports from these zones in the form of passenger luggage. Iran is home to seven free trade zones, namely Kish, Qeshm, Chabahar, Anzali, Arvand, Maku and Aras. As per an agreement between the Textile Office of the Ministry of Industries, Mining and Trade and Free Trade Zone Organization, the import of apparel from free trade zones with prices higher than domestic products will face tariffs. “Previously, the import of apparel into the country through free trade zone enjoyed a 15% discount; now it has decreased to 2%,” he said. Sadeqi noted that Iran’s Customs Administration is also responsible for stopping the import of goods that are not labeled with identification codes. According to the Headquarters to Combat Smuggling of Goods and Foreign Exchange, apparel tops the list of goods smuggled into Iran. Textile, Apparel and Leather Industry Organization, affiliated to the Industries, Mining and Trade Ministry, recently announced that about 90% of foreign clothing are smuggled into the Iranian market.
Source: The Financial Tribune
More than 300 French companies could be making their way to Cambodia seeking investments in the garment, textile, tourism and agriculture sectors, according to French NGO Fondation Prospective Innovation (FPI). Jean-Pierre Raffarin, France’s former prime minister who is now a senator and president of FPI, said on Thursday he acknowledged Cambodia’s rapid economic growth rate in Southeast Asia and added that the country had “a substantial labour force, abundant natural resources and a favourable location for ensuring long-term investment”. “Through FPI, France will gather over 300 French companies and private enterprises to study the feasibility of investing in Cambodia in the near future,” he told the French Senate. He said that companies and private enterprises would go to Cambodia and invest in garments, textiles, agriculture, and tourism sectors. “The forthcoming investment will help Cambodia’s exports to the EU grow more and more, especially in the purchase of garments, textiles and agricultural products,” he was quoted as telling the Senate. Earlier, Cambodian Commerce Minister Pan Sorasak addressed the French Senate and said the kingdom had over the years maintained an average GDP growth rate of about 7 percent and was constantly striving to create a better business environment for investors. Also present at the French Senate were several diplomats and key industrialists. Mr Sorasak led a delegation to the Apparel Sourcing Paris 2017 exhibition that was held from September 18 to 21. Also in the delegation was Van Sou Ieng, president of the Garment Manufacturers Association in Cambodia (GMAC). Mr Sorasak told the French Senate that the European Union’s “Everything but Arms” policy allowed Cambodia to export all kinds of goods to the EU without paying any tariffs or taxes. “We invite all French companies to continue their good cooperation with Cambodia and to further invest in our country’s industries that manufacture garments, textiles, footwear, agricultural products and other potential products,” said Mr Sorasak. GMAC president Mr Sou Ieng said his association was working closely with the Ministry of Commerce to get access to more apparel markets. “Even though most of our exports go to Europe, we are striving to expand our markets further. This year we brought nine Cambodian companies to the fair in Paris,” he said. “I’m glad Cambodia has been given this honour.” According to Cambodia’s General Department of Customs and Excise, exports of garments and footwear rose by 7.2 per cent to $7.3 billion in 2016, up from $6.8 billion in 2015. Ministry of Commerce figures indicate that Cambodia’s garment exports to the EU grew by 14 percent in 2016 to $3.8 billion.
Source: Khmer Times
H&M first launched its worldwide Garment Collecting initiative in 2013 and has since then collected over 40,000 tonnes of clothing. Customers can bring any unwanted garments and textiles, from any brand and in any condition, to any H&M store, all year around. The goal is to increase the amount of garments collected every year, so that we reach a total collected volume of 25,000 tonnes per year by 2020. An exciting film directed by Crystal Moselle was launched in support to the global Garment Collecting campaign, Bring It. The campaign raises awareness on the importance of garment recycling. H&M wants to close the loop on fashion by giving customers an easy solution to hand in unwanted garments so they can be reused or recycled through H&M’s garment collecting initiative. By doing so, less garments go to landfill. The Bring It film tells the journey that unwanted garments go on after they have been collected in store. Through inspiring stories the film illustrates how the lifespan of a garment can be increased to keep it in the loop for as long as possible. In 2014 H&M also introduced its first Close the Loop collection made with recycled textile fibers - an important step in closing the loop for fashion. H&M customers can find garments made of sustainable materials in all stores, which are tagged with a special green hangtag, showing the details of the material. To provide fashion and quality at the best price in a sustainable way, H&M’s ambition is to work towards a change in the way fashion is made and enjoyed today. Closing the loop is a central commitment of H&M’s work towards a sustainable fashion future. The aim is to create a closed loop for textiles, so that unwanted clothes can be reused and recycled to create fresh textile fibers for new products. In turn, this will help to save natural resources and ensure that zero garments go to landfill.
Source: Independent Online
VietNamNet Bridge - Garment companies have yet to feel the pressure from the 4.0 industrial revolution, which is expected to replace many workers with robots as automation becomes more widespread. vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, textile & garment, Vinatas, TPP Many notice boards about the recruitment of garment workers have been installed on Highway No 5, from Quan Goi crossroads to Hai Duong City. The employers offer attractive salaries of VND5-9 million a month and do not set high requirements on workers’ qualifications. Nguyen Xuan Duong, chair of Hung Yen Garment Corporation, who is also deputy chair of the Vietnam Textile & Apparel Association (Vinatas), said he still cannot see any big impact of the 4.0 revolution on his enterprise and other member companies of the association. The impact has been seen in enterprises which focus on making one type of product such as shirts or trousers. “Robots and machines can only replace humans in some links of the production chain, which need repeated operations. In the fashion industry, designs must be diverse because customers don’t want to wear the same products and orders from partners set different requirements,” he explained. Duong went on to say that the demand for clothes has been increasing rapidly thanks to improvement in locals’ incomes. Vietnamese buy 7-8 products a year. If the garment industry grows by 10 percent, the number of workers to be replaced by robots will be small compared with the increase in demand for workers to satisfy the industry’s growth. If the garment industry grows by 10 percent, the number of workers to be replaced by robots will be small compared with the increase in demand for workers to satisfy the industry’s growth. Truong Van Cam, Vinatas’ secretary general, is worried that developed economies may think of resuming production in their countries instead of outsourcing to developing economies in an aim to cut transportation and outsourcing costs. According to Vinatas, Vietnam’s garment export turnover may hit $50 billion by 2025, or two times higher than now. The textile & garment industry now uses 3 million workers and the figure will be 4.5 million, or 50 percent higher. “I don’t think the 4.0 industrial revolution will make garment workers redundant. The demand for garment workers will be increasing in the time to come,” Duong said. Nguyen Son, deputy chair of the Vietnam Cotton & Fiber Association, also said the influences of the revolution still have not been seen. Son said he can see technological improvements to save power, protect the environment and improve productivity, while there have been no machines which can completely replace human workers.
Source: Vietnam.net
