The department of industrial promotion and policy (DIPP) has notified the guidelines for manufacturing units in excise-free zones to claim budgetary support in the goods and services tax (GST) regime. According to the notification, these units can claim refund on 58% of the Central tax (CGST) and 29% of the integrated GST paid after using CGST and IGST input tax credit (ITC). The scheme is available for existing eligible manufacturing units operating in Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North-Eastern states including Sikkim, under different industrial promotion schemes. In August, the Union Cabinet had approved budgetary support of `27, 413 crore for an estimated 4,284 eligible units in these states. “The above 58% has been fixed taking into consideration that at present Central government devolves 42% of the taxes on goods and services to the states as per the recommendation of the 14th Finance Commission,” the notification said. Further, DIPP said the refund will be available only on the portion of tax paid in cash after all the accumulated ITC has been utilised to pay Central and integrated GST. If the ITC is not fully utilised, the reimbursement sanctioning officer will reduce the amount of budgetary support payable to the extent credit of Central tax and integrated tax is not utilised for payment of tax, the department said. “The benefit is restricted to 58% of the Central tax component paid in cash after utilising input credits. This is a significant reduction in the benefit as compared to the earlier regime wherein 100% of the excise duty to be paid in cash was exempted or refunded. Also in case of job work arrangements the benefit would be restricted to 58% of the Central tax paid on the job work charges and not on the value of the goods,” Abhishek Jain, tax partner, EY said. Additionally, the notification said if a unit procures supplies from a composition scheme assessees, the percentage value of such input will be deducted from admissible reimbursement.
Source: Financial Express
Over 4,250 manufacturing units located in the north-eastern and Himalayan States are to get a Diwali gift from the Centre. The Government will, according to a scheme framed by the Department of Industrial Policy and Promotion, provide a budgetary support of ₹27,413 crore for 4,284 units over July 1, 2017 till March 31, 2027 to recompense them for losing their excise duty-exempt status post GST implementation from July 1. The Government has framed the operational guidelines for the scheme, which has been announced under two months of its promising relief to the units. The budgetary support is being provided as a “goodwill measure” and only to units that were eligible to draw excise duty exemption benefits. The scheme — for units based out of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and the North-East, including Sikkim — will be limited to the tax that accrues to the Centre under the Central Goods and Services Act, 2017 and the Integrated Goods and Services Act, 2017, after devolution of a part of the levy to the States, in terms of Article 270 of the Constitution. The amount of budgetary support to an eligible unit will be the sum of: 58 per cent of the CGST paid by the unit after utilisation of the input tax credit of the central tax and integrated tax, and 29 per cent of the IGST paid by the unit after utilisation of input tax credit of the central and integrated taxes. According to sources, this 58 per cent has been fixed taking into consideration that the Centre devolves 42 per cent of the taxes on goods and services to the States as per the recommendations of the Fourteenth Finance Commission. Commenting on the scheme, Abhishek Jain, Tax Partner, EY, said the scheme framed in lieu of the excise exemption seeks to restrict the benefit to 58 per cent of the central tax component paid in cash after utilising input credits. This is a significant reduction in the benefit compared to the earlier regime wherein 100 per cent of the excise duty to be paid in cash was exempt or refunded,” Jain said. Also, in the case of job work arrangements, the benefit would be restricted to 58 per cent of the central tax paid on the job work charges and not on the value of the goods, he added.
Disbursal by DIPP
The budgetary support would be disbursed by the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry. eligible units would have to register on the ACES-GST portal and obtain an unique ID, which is to be used for processing of all claims under the scheme.
Source: Business Line
Apparel Export Promotion Council (AEPC) has hailed the slew of measures taken by the GST Council at its 22nd meeting held on October 6. The apparel exporters’ body said the new measures will give immediate relief to the apparel exports sector which has been going through a difficult and stressful phase due to various factors both global and domestic. These measures, announced by Union finance minister Arun Jaitley after the GST Council meeting, include reduction in the rate of GST on man-made fibre (MMF) items viz synthetic filament yarn such as nylon, polyester, acrylic etc and artificial filament yarn, yarn of man-made staple fibres, and real zari from 18 per cent to 12 per cent. The GST council has also made a provision for refund of GST for the month of July by October 10 and for August by October 18 which will ease the working capital stress. A facility of e-wallet has also been introduced for addressing the refund issue. AEPC also welcomed the proposed single window refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT and extending the Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) schemes to sourcing inputs from abroad as well as domestic suppliers. “The changes which have been announced by GST Council will give a great relief to the apparel industry for the immediate term, as the sector has been facing severe liquidity crunch after the introduction of GST. The AEPC would like to thank the various government departments which have been working closely with all the stakeholders for considering the plea of its members and reducing the rate of various man-made raw material items. However, since the duty structure remains inverted with fabric at 5 per cent GST, we are hopeful that the embedded taxes arising out of this inverted structure will be refunded to exporters through appropriate mechanisms,” said AEPC chairman Ashok Rajani. AEPC has been raising the issue of embedded taxes on exports at various forums. In its representation to the concerned Ministries, AEPC has informed that in the absence of encouraging duty drawback and ROSL, exports will further witness a sharp decline just ahead of the peak festival season.
Source: Fibre2Fashion
The Goods and Services Tax Council reportedly wants to discourage ad hocism in rate revision and outright exemptions. This makes sense. Frequent changes in GST rates or outright exemptions that break the GST chain mess up the tax system, and go against the grain of the new tax system to make production efficient. It is also absurd to have different GST rates for the same kind of product as the divergence would only spawn classification disputes. The rates range from 5% to 28%, excluding the cesses. The rates must converge to encourage compliance and tax buoyancy going forward. A uniform GST of 14% would be revenue positive after subsuming many indirect taxes. The larger point is to have a simple and neat tax system to reduce compliance burden. The GST Council has tried to ease the transition pain for small taxpayers and exports with incremental policy changes, but much more needs to be done. Manufacturers and service providers with operations in several states, for example, are required to register at multiple locations. The regulation says that for each state, the taxable person will have to take a separate registration, even though the taxable person may be supplying goods or services or both from more than one State as a single legal entity. The inability of states to share registration data is baffling. Taxpayers can be given the option to register centrally (with an all India footprint), and the registration can be shared by the GSTN with the states concerned. A common unified registration framework will make compliance simple for a business agent. The GST Council has deferred the applicability of the e-way Bill to track movement of goods till next April. Dispense with the e-way bill. After all, no GST on inter-state sale of services is collected without the help of any e-way bill. A modern tax administration must minimise interface between the tax department and the taxpayer, and instead make intelligent use of technology to curb tax evasion. New rules should come into force three months after they are notified to make the transition less painful. This piece appeared as an editorial opinion in the print edition of The Economic Times.
Source: The Economic Times
New Delhi : "The announcement of reduction of GST rates for Man-Made Fibre Yarns and its products from 18 percent to 12 percent by Shri Arun Jaitley, Chairman, GST Council has met a long pending demand of the textile industry", stated Shri Sanjay K. Jain, Chairman, Confederation of Indian Textile Industry (CITI). It will help strengthen the entire textile value chain and make Indian Textile Industry globally more competitive. He further stated, I would first like to thank Shri Arun Jaitley ji, Head of GST Council and Ministry of Finance, Smt. Smriti Zubin Irani, Minister for Textiles and all the senior dignitaries of both Ministries and Members of GST Council for making it a big reality! He also stated that CITI being the apex industry chamber of the textile & clothing industry of India, there was a big responsibility on the shoulders of Office-Bearers of CITI to get rid of this anomaly at the earliest. This announcement has brought a great sigh of relief to the entire textile industry and I once again thank everyone who pushed for the change, on behalf of the entire textile industry. Shri Sanjay K. Jain further stated that the announcement has sorted out a big issue of inverted duty for the MMF products as it was causing serious issue of escalation of the cost of synthetic products which was further leading to cheaper imports from the competing countries like China and Indonesia. As of now, there is no refund of ITC at fabric stage and under post-GST regime, with abolition of 12.5% Countervailing Duty and 4% Special Additional duty, the import has become much cheaper option than sourcing fabrics from the domestic market. He further stated that CITI had made several representations to the Finance Minister, GST Council and the Textile Minister to immediately reduce GST rate on MMF Yarn and its products to 12 percent from 18 percent to rein in inflation of MMF products and to safeguard domestic producers from getting defunct. He stated that reduced GST rates would greatly benefit not only the spinning and power loom sector but would also support the initiative of Make In India and achieve the national objective of creating more employment opportunities. He also stated that this step of the government will also help the industry to cloth the poor masses of the nation at an affordable cost. Chairman, CITI also thanked the GST Council for giving relief for the blockage in credit of exporters that affects the cash liquidity of the exporters. He also hailed the announcement of processing the refund cheques for July exports by 10th October and August exports by 18th October and also the decision of creating an E-Wallet while from 1st April 2018. He stated that this would resolve the problem of working capital getting blocked and benefit the exporters. He added that the suspension of reverse charge. mechanism till 31.3.2018 will benefit small businesses and substantially reduce compliance costs. Chairman, CITI also welcomed the announcement of easing the compliance burden on medium and small taxpayers and increasing the eligibility of Composition Scheme under GST from Rs.75 lakhs to Rs.1 Crore. Extending the tax exemption for 100% EOU units, Advance Licensing Scheme and EPCG Scheme and allowing the merchant exporters to purchase with 0.1% tax payment upto 31st March 2018 are a few more announcements that benefit the textile industry, said Shri Sanjay K. Jain. Chairman, CITI hopes that the GST Council would soon consider refund of the accumulated Input Tax Credit at fabric stage especially the processed fabrics and also mandate the duty drawback committee to recommend appropriate duty drawback rates and RoSL rates to sustain the export performance. He also felt that the Government should extend the transitional provision of giving the pre-GST Duty Drawback and RoSL rates for another 6 months or till the new calculated rates are announced.
Source: CITI Press Release
New Delhi, Monday, 09 October 2017: Confederation of Indian Textile Industry (CITI) the apex industry chamber of the entire textile value chain of India organized an Interactive Session onInnovation & Competitiveness in Textiles & Clothing Industry on 9th October 2017 in Ludhiana, Punjab. Mr. D.L. Sharma, Vice Chairman, CITI & Director, Vardhman Group chaired the interactive session.In his inaugural address Mr Sharma gave an overall perspective of the Indian textile industry and significance of innovation and technology in the present competitive scenario. Mr. Bino George, Principal Business Consultant, Infor India made a presentation from ERP software point of view. Mr. George highlighted the emerging trends in the global textile sector and gave innovative solutions and tools for addressing the challenges and capturing the global market. Mr. Navdeep Sodhi, Partner, Gherzi Textil Organisation, Switzerland shared his global experience through a presentation and gave inputs on emerging new business models based on innovation and modern technology. Dr. Sanjay Gupta, Chairman, World University of Design moderated the Panel Discussion. Delegates also actively participated in the deliberations through question-answer with the Panelists. Around 50 delegates participated in the event. Dr. S. Sunanda, Secretary General, CITI in her welcome address said that with the increase in manufacturing costs globally, businesses are focusing more on enhancing productivity to improve the bottom line and new technology is playing key role in achieving it. As a country, India is not less innovative in nature, but it needs to leverage further. Technology is for survival, so companies should use the latest and innovative technology to be competitive in the market. Investing in the innovative technology will ultimately result in offering right product at right price, which is very important for a company's profit. The Government has been working continuously to increase export competitiveness of India. To achieve that Indian textile industry must invest more in R&D and innovative technologies for achieving business excellence and improving the productivity and product quality for taking the sector to new heights of success. In the Picture: Mr. D.L. Sharma, Vice Chairman-CITI delivering the inaugural address at the Interactive Session.
Source : CITI Press Release
Duty structure remains inverted with fabric at 5% GST: AEPC
The Apparel Export Promotion Council (AEPC), the apex body for apparel exporters in India, has raised with the government the issue of embedded taxes on exports. In a statement, the AEPC said the measures taken by the GST Council on October 6 will give immediate relief to the apparel exports sector which has been facing stress.
‘GST measures will help’
These measures include reduction in the rate of GST on man-made items including synthetic filament yarn such as nylon, polyester and acrylic, and artificial filament yarn, yarn of man made staple fibres, real zari from 18% to 12%. The GST Council also made a provision for refund of GST for the month of July by October 10 and for August by October 18 which will ease the working capital stress. A facility of e-wallet has also been introduced for addressing the refund issue. “However, since the duty structure remains inverted with fabric at 5% GST, we are hopeful that the embedded taxes arising out of this inverted structure will be refunded to exporters through appropriate mechanisms,” it said. The AEPC said the key issue of embedded taxes needed to be taken up by the Centre to address the genuine concerns of the exporters and export sentiments. Invisible taxes needed to be considered for refund under drawback and Remission of State Levies (RoSL) schemes, so that the calibrated refund provided is representative of the tax incidences incurred by the industry, it said. In its representation to the Ministries concerned, the AEPC said in the absence of encouraging duty drawback and RoSL, exports from the sector will further witness a sharp decline just ahead of the peak festival season. “The appreciating rupee and... new levies like GST on intra-company stock transfers, job work, freight and samples imposed in the GST regime have led to cost escalation for exporters further narrowing their low margins in competitive global markets,” the AEPC said.
Source: The Hindu
The nodal agency for promotion and development of handicrafts sector, Export Promotion Council for Handicrafts (EPCH) has welcomed the initiatives announced by the GST Council recently. The GST Council in its 22nd meeting have given certain relief for the Industry so that transition to GST regime can be further smoothened and momentum of exports growth from the Country can be regained. The relief included the payment of GST under Reverse Charge Mechanism (RCM) to be suspended till 31st March, 2018; refund of GST to start from 10th October, 2017; merchant exporters to pay nominal GST of 0.1 percent for procuring goods from domestic suppliers; e-wallet facility to be introduced from 1st April, 2018; GST on sale of duty credit scrip reduced to 0 percent; payment of GST not required under EPCG and Advance Authorisation Scheme (AA); e-way bill implementation postponed till April, 2018; job work on zari and imitation jewellery reduced from 12 to 5 percent. O.P. Prahladka, Chairman, EPCH welcomed the initiatives taken by the GST Council, however, he added that Handicrafts Sector should have been given rate cuts on handicraft items and also job work on Handicrafts to have been reduced to 0 percent. He further said that by taking these initiatives the government has given clear message that it is acting on the exporters concerns. Rakesh Kumar, ED, EPCH said that exporters are breathing a sigh of relief by announcement of series of steps to reduce the payment and compliance burden of goods and services tax (GST). He further added that, while most exporters see their liquidity and cash crunch issues getting resolved due to easier procedural requirements, others are looking forward to a further reduction in GST rates. The Handicrafts exports during the year 2016-17 was Rs.24,392.39 crores with overall 13.15 percent increase in comparison to last year. However, the exports of handicrafts during six months of the current financial year 2017-18 are Rs. 12520.32 crores.
Source: SME Times
It was another volatile week for the rupee. Though the currency opened on a weak note and fell initially, it regained strength thereafter. The rupee fell to a low of 65.66 on Tuesday last and reversed sharply higher after the outcome of the Reserve Bank of India’s monetary policy on Wednesday. The RBI left the repo rate unchanged at 6 per cent as was widely anticipated by the market. However, the impact of the RBI’s decision on the rupee was short-lived and it reversed lower again after making a high of 64.95. The currency closed at 65.36 on Monday, down 0.12 per cent for the week. Key macro-economic data are scheduled for release this week. The Index of Industrial Production (IIP) and the Consumer Price Index (CPI) inflation, both are due for release on Thursday. Among them, the CPI will be most watched. The CPI in August had moved up to 3.36 per cent from 2.36 per cent in the previous month. Market will be keen to see which way the inflation moves. India’s trade balance data is also scheduled for release this week. US wages picking up? The dollar index extended its upmove for the fourth consecutive week. The index made a high of 94 and has come-off slightly from there on the back of mixed reaction to jobs data released on Friday. Data showed that the non-farm pay-roll declined by 33,000 while the average hourly wages increased by 2.9 per cent (year-on-year) in September. Experts believe that the increase in wages could be because of the hurricane that hit the US. But the trend shows that the wages in the US is picking up. The employee wages have been moving higher over the last three consecutive months. This strengthens the case for the next rate hike in December. The dollar index, currently trading at 93.70, has an immediate support at 93.60. If it manages to reverse higher from there, a rise to 94.3 is possible. Further break above 94.3, will pave way for the next target of 95. Such a rally in the dollar index may cap the upside in the rupee in the coming days. On the other hand, if the dollar index breaks below 93.6, it can fall to 93 or 92.85. The region between 93 and 92.85 is strong support for the index which is likely to limit the downside in the near-term.
Rupee outlook
Inability to breach decisively above the psychological level of 65 in the past week is a negative. A strong break below the immediate support at 65.5 can bring the rupee under pressure again. Such a break will increase the likelihood of the currency declining to 65.70 initially. Further break below 65.70 will see the rupee weakening to 66 or even 66.30 thereafter. On the other hand, if the rupee manages to reverse higher from 65.5, it can strengthen to 65 again. A range-bound move between 65 and 65.5 is possible for some time. The currency will need to break above 65 decisively to gain momentum. Such a break can take the rupee higher to 64.80 or 64.75. The next resistance is at 64.60 which is likely to cap the rupee’s strength in the short-term.
Source: Business Line
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$ 54.24 per barrel (bbl) on 9.10.2017. This was lower than the price of US$ 55.27 per bbl on previous publishing day of 6.10.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3542.48 per bbl on 9.10.2017 as compared to Rs. 3605.01 per bbl on 6.10.2017. Rupee closed weaker at Rs. 65.31 per US$ on 9.10.2017 as compared to 65.23 per US$ on 6.10.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 9, 2017 (Previous trading day i.e. 6.10.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.24 (55.27) |
|
(Rs/bbl) |
3542.48 (3605.01) |
|
|
Exchange Rate |
(Rs/$) |
65.31 (65.23) |
Source: PIB
Press Academy chairman Vasudeva Deekhsitulu has underlined the need to wear cotton dresses to encourage the weavers and promote cotton products in the state. He said that the Andhra Pradesh and Tamil Nadu governments are extending support to the weavers and co-operative societies and promoting sales through APCO and Co-opetex. He inaugurated the Deepavali handloom exhibition on Monday at the Film chamber hall. Co-operative societies from various parts of the State and some parts of Tamil Nadu are taking part in the exhibition to be held from October 9 to 15. Deekshitulu, addressing the media on the occasion said that he is a big fan of cotton dresses and wears from childhood. He has appealed to the people to purchase cotton clothes and dresses and informed that the traders are offering discounts to the customers on the occasion. Co-optex regional manager Arul Rajan, Co-optex Vijayawada manager Hasan Faruk have explained the details of the products put on sale in the week-long exhibition at the Film chamber hall.
Source: The Hans India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1346.42 |
USD/Ton |
0% |
10/9/2017 |
|
VSF |
2426.86 |
USD/Ton |
0% |
10/9/2017 |
|
ASF |
2644.75 |
USD/Ton |
0% |
10/9/2017 |
|
Polyester POY |
1262.27 |
USD/Ton |
-0.41% |
10/9/2017 |
|
Nylon FDY |
3351.02 |
USD/Ton |
0.45% |
10/9/2017 |
|
40D Spandex |
5860.53 |
USD/Ton |
1.30% |
10/9/2017 |
|
Polyester DTY |
5680.21 |
USD/Ton |
0% |
10/9/2017 |
|
Nylon POY |
1525.24 |
USD/Ton |
0% |
10/9/2017 |
|
Acrylic Top 3D |
3035.45 |
USD/Ton |
1% |
10/9/2017 |
|
Polyester FDY |
2780.00 |
USD/Ton |
0% |
10/9/2017 |
|
Nylon DTY |
1630.43 |
USD/Ton |
0% |
10/9/2017 |
|
Viscose Long Filament |
3441.18 |
USD/Ton |
1.33% |
10/9/2017 |
|
30S Spun Rayon Yarn |
3020.43 |
USD/Ton |
0% |
10/9/2017 |
|
32S Polyester Yarn |
2022.63 |
USD/Ton |
0% |
10/9/2017 |
|
45S T/C Yarn |
2870.16 |
USD/Ton |
0% |
10/9/2017 |
|
40S Rayon Yarn |
2434.37 |
USD/Ton |
0% |
10/9/2017 |
|
T/R Yarn 65/35 32S |
3185.72 |
USD/Ton |
0% |
10/9/2017 |
|
45S Polyester Yarn |
2419.35 |
USD/Ton |
0% |
10/9/2017 |
|
T/C Yarn 65/35 32S |
2163.89 |
USD/Ton |
0% |
10/9/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
10/9/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
10/9/2017 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
0% |
10/9/2017 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
10/9/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
10/9/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15027 USD dtd. 09/10/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Uzbekistan continues to take consistent steps aimed at developing its textile industry. Another modern textile factory worth a total of $92 million will be built in Uzbekistan till late 2018, podrobno.uz reported. The project was initiated by the joint venture Namangan Sharbati, the National Bank for Foreign Economic Affairs and Uzbekengilsanoat. The factory will annually produce 10,000 tons of polyester fiber, 10,000 tons of polyester yarn, 20 million running meters of mixed fabrics, and 7,000 tons of blended linen. The project is financed through Namangan Sharbati joint venture’s equity worth $30 million and the Uzbek Reconstruction and Development Fund’s loan worth $62 million. The head of state provided a number of privileges and preferences to the Namangan Sharbati JV in the framework of the implemented project. The factory will be exempt from paying corporate income tax, value added tax and mandatory contributions to the Republican Road Fund under the Uzbek Finance Ministry, till January 1, 2022. It is also exempted from customs payments for imported equipment, components, raw materials, materials and chemicals used for the manufacturing products based on chemical raw materials that are not manufactured in the country. One of the policy priorities of Uzbekistan, the world’s sixth-largest cotton producer, is further development of its textile industry. Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. Uzbekistan intends to implement 132 investment projects in the textile industry, half of which will be financed through foreign investments and loans, by the end of 2019. The total cost of projects will amount to nearly $2.2 billion. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs. In the period 2010-2014, the textile industry of Uzbekistan received and spent foreign investments worth $785 million while 147 new textile enterprises with participation of investors from Germany, Switzerland, Japan, South Korea, the U.S., Turkey and other countries were commissioned. Export potential of these enterprises amounted to $670 millions. Currently, Uzbekistan continues to attract foreign investments for construction of textile enterprises in Uzbekistan. In late August, another Polish company Polcotton agreed to invest about $60 million in the construction of the textile complex in Uzbekistan. The future factory is expected to have a capacity of 10,000 tons of finished products per year and to generate as many as 1,200 new jobs. Previously, Uzbekistan and Russia agreed to further expand cooperation in textile industry which is a strategic centerpiece of the Uzbek economy. Particularly, they intend to create a "green corridor " for the supply of textile products.
Source: Azer News
Several big firms have started pushing up production in specialty textiles or fabrics for special purposes, such as sofa and shoes amid the country's dependence on the import of these materials. "Generally, some big firms have begun investing in the segment [specialty textiles]," Prama Yudha Amdan, the executive member of Indonesian Association of Synthetic Fiber Producers (APSyFI), said on Monday. Publicly listed PT Asia Pacific Fibers is one company that has entered this market. To keep the investment going and be able to fulfill national demand, Yudha added, the government must lower gas prices, electricity tariffs and labor costs in Indonesia that remain higher than rivals China and India. "Specialty textiles need bigger investment [than common textiles] so it's important that the government lower gas prices and other costs," Yudha added. Indonesia’s gas price, at US$9 per million British thermal units (mmbtu), for example, is among the highest in the world. APSyFI urged the government to lower it to $6 per mmbtu as energy contributed to 25 to 30 percent of production cost structure in upstream textile industries. Previously, shoes and sofa makers complained that volume and variety of local specialty textiles to make furniture, accessories and shoes are still limited. About 60 percent of furniture materials including textiles are still imported, according to Indonesian Society of Interior Designers (HDII). (ags)
Source: The Jakarta Post
The Zimbabwe Textile Manufacturers’ Association (ZCMA) has appealed to the government to timely disburse foreign currency to its members to ensure they meet their obligations and remain in business in times of liquidity crisis. ZCMA secretary-general Raymond Huni recently said the textile industry needed urgent intervention to avoid a total collapse. As the current liquidity crisis continues, the government assisted a few struggling companies to easily access foreign currency. People have resorted to buying foreign currency in the black market at exorbitant rates, thereby distorting market prices. Some are hoarding cash, according to a report in a newspaper in Zimbabwe. ZCMA appealed to the Reserve Bank of Zimbabwe, and the ministries of finance and industry to consider allocating forex to genuine manufacturers for raw materials that are not available locally. Zimbabwe’s biggest blanket and linen manufacturer that supplies to the army, hospitals, hotels and schools, and hosiery manufacturers are struggling to get foreign currency to continue in business. This will lead to thousands losing jobs, said Huni. The government should also consider raising the export incentive from 5 per cent to 25 per cent, according to ZCMA. (DS)
Source : Fibre2Fashion
For years, the textile sector has been the country’s backbone as it provides employment and export revenues. The sector absorbs 40% of the total industrial workforce and contributes 62% towards exports. However, the sector is losing its competitiveness at the international level due to a number of challenges at global and domestic levels. According to the Economic Survey of Pakistan, exports of the clothing sector, towels, knitwear, carpets and rugs showed a negative growth rate during 2016-17. The exports from subsectors, including cotton yarn and cloth, hosiery, knitwear, bed wear, towel, ready-made garments and synthetic fabrics, are less than their potential. And the total potential for direct exports forgone per annum is $3,602 million. This is a huge loss not only for the textile sector but also for Pakistan as underutilisation means millions of workers who can get the job remain unemployed because there is a decrease of 30-35% of production capacities of the industry. Resultantly, factories are shutting down and causing production and revenue losses. The export growth of textile and clothing in other countries has been higher in the last few years. During 2011-16, India’s exports increased 31% from $27.7 billion to $36.4 billion, while Bangladesh’s and Vietnam’s exports showed a 63% and 107% growth, respectively. On the contrary, Pakistan’s exports showed a negative growth rate of 10% from $3.8 billion to $12.5 billion. Despite being the fourth-largest producer of cotton, Pakistan is not even in the list of the top 10 exporters. Energy cost is a serious concern for the textile sector as spinning, weaving and processing industries heavily rely upon energy consumption. Industrial gas tariff of Pakistan is 100% higher and electricity tariff is almost 50% higher as compared to other regional competitors. With energy as a major cost of production, the sector is losing its competitiveness by consuming expensive energy. Sales tax refunds are also not being paid by the government which is causing a financial crisis for exporters. Exchange rate overvaluation is another concern owing to which the exports are expensive in the global market. High level of indirect taxes are also increasing the financial burden for the businesses and making it difficult for them to keep their product price compatible at the international level. Technological improvement is another aspect where Pakistan lags behind. Not enough investment has been made in technology because of which the productive capacity of the sector remains stagnant. In 2006, Pakistan made $1 billion investment per annum whereas in 2016-17 this investment reduced to $0.56 billion. Investors are also unwilling to invest due to the high cost of doing business as there are abundance of taxes and regulatory procedures which have to be followed by them. On the other hand, countries like China, India and Bangladesh are providing extensive investment incentives to enhance investment and production activities. But for Pakistan, the decline in investment further results in unemployment and production losses. However, the government has recently announced export package for the industry which will help in its modernisation and development. The package contains new duty drawback rates on products, including processed fabric, textile and garments, yarn and grey fabric and made-up textile articles. It is required that the government implements the Prime Minister’s Export led Growth package which will generate millions of jobs and increase the exports. Exporters also require duty-free import of cotton so that they can have competitive raw materials. Other measures are also needed. Although textile exports heavily rely upon few products, including cotton, apparel and clothing, contributions from other textile products are currently quite dismal and needs to be enhanced to develop the export base. The government must also pay the pending sales tax refunds to the industry to ease its financial burden. Exchange rate should also be adjusted according to market conditions to avoid any uncertainty in policy measure.
Source: The Express Tribune, Pakistan
Cotton prices fell by about 4 cents per pound in September, to finish the month at almost 67 cents, about 5.7% lower than at the end of August, according to data from the U.S. Department of Agriculture (USDA). Uncertainty over the effects from Hurricane Harvey on crops in Texas, where a significant portion of U.S. cotton is grown, as well as on the location of and effects of Irma and other storms, caused cotton price hikes in the first two weeks of the month. However, damage from the storms turned out to be less than feared, sending prices down again. The seven-market U.S. average cotton spot price, which ended 2016 at just above 69 cents per pound, has fallen by over 2 cents so far this year. Revised production forecasts of expected bumper crops in the U.S. and abroad may put additional downward pressure on prices going forward.
Source: Sourcing Journal Online
MULTAN - Punjab Agriculture Minister Naeem Akhtar Bhabha has said that the provincial government is making all-out efforts to enhance cotton crop production. He said the efforts had helped increase cotton cultivation by 19 percent compared with the last year. He expressed these views in a meeting of the Cotton Crop Management Group, held at Tehsil Jalalpur Pirwala. He said that the government was committed to making south Punjab the cotton valley. Different uplift schemes have been initiated for improvement in agriculture sector. He urged all stakeholders to play their role for enhancing cotton production. Planning Additional Secretary Dr Ghazanfar Ali Khan informed the meeting that short, medium and long-term policies were being introduced to promote cotton cultivation. Agriculture Director General Dr Zafar Yab hoped that a bumper cotton crop was likely this year as the field staff was collaborating with farmers for the purpose. On the occasion, National Assembly former speaker Fakhar Imam said that the Trade Corporation of Pakistan (TCP) should purchase cotton as it would help offer good price to farmers. Similarly, the government should offer premium to farmers on clean picking of cotton. He stated that the government should also focus on quality of the crop. Pakistan Kissan Ittehad Chairman Khalid Khokhar stressed the government to impose a ban on import of cotton, as it would also help local farmers to get better returns.
Source: The Nation
The island nation of Sri Lanka has successfully introduced transparency in fixing of charges by freight service providers at ports. The Joint Apparel Association Forum (JAAF) of Sri Lanka had lobbied with the government, which issued a regulation directing freight forwarders, non-vessel carrier operators, etc to ensure transparency in the imposition of charges. Under ‘The Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act’, charges are required to be collected from the contacting party who is liable to pay the freight and not from other party. The main points of the regulation are it prohibits ‘zero’ freight; identifies the delivery and destination points as either container yard or container freight station; restricts the imposition of any other charge on exporter other than the freight if he is bound to pay such as per the contract; and restrict the imposition of any other charge on importer other than the freight if he is bound to pay such as per the contract but a delivery order fee may be imposed on importers. The regulation mentions that all chargers on containerised cargo covering the entire cost of carriage of goods from delivery to destination shall be included in all-inclusive freight specified in the bill of lading and that it should be recovered from the party who is contractually bound to pay the same. Further, any change in the delivery order is subject to the approval of the Director Merchant Shipping. In bringing the legislation and implementing it, the government had not interfered in fixing the charges but established few cardinal principles. First, the cost of carriage of containers from origin to destination has to be identified as all-inclusive freight without dividing them as land based cost and freight component. Second, payments had to be recovered by the service provider only from the user of service to whom the service is provided and not from a third party who had no such contractual responsibility. This point protects non-contracting parties to international transportation from being forcibly dragged into payments that are not within their choice or control and then into extra liabilities such as insurance cover. Finally, no surcharges can be imposed on non-contracting parties. “The issue of transparency in freight charges has now been controlled in Sri Lanka but the exporters and importers in India, Singapore and African continent are still struggling with these issues,” Tuli Cooray, secretary general, JAAF, told Fibre2Fashion. “Our desire is to elevate our regulation to an international level where all-inclusive freight should be charged on market driven formulas. We want to work towards international recognition of Sri Lankan practices, as this type of legislation will improve and assist the promotion of international rule based ethical and fair trade,” he added.
Source: Fibre2Fashion
Myanmar earned more than $1 billion from garment exports between April and early September this year, making apparel the second leading item in the export sector, according to the country’s commerce ministry. Garments are exported to Japan, Europe, South Korea, China and the United States and exports were estimated to be worth $2 billion in fiscal 2016-17. Myanmar’s garment units operate on the cutting-making and packing (CMP) system and are striving to transform into the free on board (FOB) system, according to a report in a Myanmarese newspaper. There are over 400 garment factories in Myanmar, with a labour force of more than 300,000. (DS)
Source: Fibre2Fashion
HÀ NỘI — Việt Nam Textile and Apparel Association (VITAS) has petitioned the Ministry of Finance and the Ministry of Industry and Trade to not increase import tariffs on polyester fibre from zero to 2 per cent. VITAS’s move aims to remove difficulties for textile and garment enterprises, following feedback and recommendations of enterprises. According to VITAS, enterprises still have to import materials and produce goods domestically. However, many are being forced to close operation as they cannot bear the high cost and expense, such as the Đình Vũ Polyester Fibre Plant in the northern province of Hải Phòng. VITAS has also proposed that the Government consider not raising regional minimum wage in 2018 and consider adjusting the insurance premium rates paid by firms to a more reasonable level, so that enterprises can mobilise resources aand improve their competitiveness to expand production and create jobs in rural and mountainous areas. VITAS also recommended that the Ministry of Information and Communications (MIC) advise the Government on the amendment of Decree 60/2014/NĐ-CP on the conditions for licensing the import of printers for textile products. According to this decree, the owner of a business will be allowed to import printers if they have a college diploma or higher in the printing industry or they must be granted a certificate of professional training by the MIC. — VNS
Source: Viet Nam News
Bananas, coffee, pineapple, lotus, stinging nettles and hemp - what sounds like the ingredients on an exotic shopping list are actually all natural resources that can be turned into sustainable textiles. 'How' will be explained below; 'why' should be obvious: In view of dwindling resources, especially through resource-intensive natural fibres like cotton and the environmental impact of petroleum-based fibres like acrylic, polyester, nylon and spandex, it is about time for the textile and apparel industry to look for sustainable alternatives and to prove that the production of textiles and clothing does not have to pollute the environment. On the contrary. FashionUnited has found six interesting alternatives.
1. Hemp fibres
One of the most versatile natural fibers can be obtained from hemp - hemp fibers, which are antibacterial, durable and resilient, and work as a natural air-conditioning system. In addition, hemp is a fast-growing plant that consumes very little water and does not require herbicides, pesticides, synthetic fertilizers or GMO seeds. 'What's not to love?' one could ask, and also why this super plant has not already become the standard in textile processing.
The reason is the connection of the Cannabis Sativa plant with recreational drugs. Even though the only high that the production and use of industrial hemp generates is the knowledge of doing something for the environment, cultivation has been severely hampered, especially in the western world. The situation is different in China, where the industrial use of the cannabis plant was never prohibited. Thus, China currently accounts for more than 50 percent of the global hemp production and holds more than half of the more than 600 international patents on hemp fibers and textile production. This needs to change.
2. Stinging nettle fibres
The common stinging nettle, Urtica dioica, is a widely used plant that is easy to grow. For the production of the fibers, the nettles are harvested in the summer and the stalks dried well. This removes the sting. After drying, the stalks are broken to separate the woody parts. Then, the plant is hackled to separate the fibers and to remove the leaf attachments. After that, the fibers are spun wet and then dried. Twisting them increases tear resistance. Similar to hemp fibres, stinging nettle fibres are versatile, keep the wearer warm in winter and cool in summer, and can be grown with far less water and pesticides than cotton. Thanks to new spinning techniques and hybrid plant species, nettle plants with super high fiber content are obtained, which are strong and flexible and have a good spinning length. Unlike hemp, there is no legal problem with the cultivation of nettles, which has made the plant a viable and legal market fruit.
3. Coffee ground fibres
Most coffee drinkers simply throw away coffee ground after making their coffee. But it is an important raw material that can be used to make coffee ground fibres. Taiwanese textile company Singtex’s technology combines the post-patented processed coffee ground with polymer to create master batches before spinning it into yarn. The resulting coffee yarn is multi-functional and can be used in a variety of products, from outdoor and sports performance wear to household items used every day. Fabrics made out of coffee ground fibres like S.Café by Singtex shown here offer excellent natural anti-odour qualities, in addition to UV ray protection and a quick drying time. The coffee grounds used to create the yarn are taken and recycled from some of the world’s largest coffee vendors, like Starbucks. In this way, the company gives a second life to coffee grounds which would have otherwise ended up in the trash. As we have seen, coffee ground fibres have many advantages. Now, the challenge remains in taking the fibre global and ensuring more apparel brands incorporate it into their collections in lieu of conventional fabrics and that it extends its reach to outside of the fashion industry.
4. Pineapple fabric Piñatex
Although the idea may sound unbelievable, there is a vegan alternative to leather, which is made from pineapple leaves. London-based Ananas Anam has developed a natural and non-woven textile out of pineapple leaves, known as Piñatex which is remarkably similar to leather. The revolutionäre pineapple fabric is made from pineapple leaf fibres, a by-product from the pineapple harvest in the Philippines. During a process called decortication, the fibres are extracted from the leaves. The fibres then undergo an industrial process to become a nonwoven textile, which is the base of Piñatex. A by-product derived from the manufacturing process is biomass, which is converted into organic fertilizer or bio-gas and used by the farming communities, thereby closing the loop of the material's production. Piñatex is the result of years of work and the search for an alternative to leather; a new type of natural tissue, which is 100 percent vegan and sustainable. In addition, it is also a strong, yet versatile, breathable, soft and flexible, material which can be easily printed on, stitched and cut, making it suitable for a number of fashion products. It has also won a number of awards. The next big step is to popularise Piñatex further and to continue developing and stabilizing its supply chain to meet the growing demand for its pineapple leaf, in a way that does not compromise its mission and fundamental values concerning environmental, ethical, social and economic sustainability.
5. Banana fibres Banana fibre is one of the world’s strongest natural fibres. It is made from the stem of the banana tree and is incredibly durable and biodegradable. The fibre consists of thick-walled cell tissue, bonded together by natural gums and is mainly composed of cellulose, hemicelluloses and lignin. Banana fibre is similar to natural bamboo fibre, but its spin ability, fineness and tensile strength are said to be better. Banana fibre can be used to make a number of different textiles with different weights and thicknesses, based on what part of the banana stem the fibre was extracted from. Similar to coffee ground fibres and pineapple leaves, the material cycle is closed when producing banana fibres as they are made from waster products: from recycled banana stems, which the farmers would throw away otherwise. Banana fibres can be used to make ropes, mats, woven fabrics as well as handmade papers. Green Banana Paper, a company based on the island of Kosrae in Micronesia, is using banana fibre to make vegan wallets, purses, beads and paper. However, extracting the banana fibre from the banana stems is not an easy, or simple, process but a labourintensive one. Banana yarn or cloth is made by boiling strips of the sheath in an alkaline solution to soften and separate them. Once this is done, the fibres are joined together to create long threads which are then spun wet, in order to prevent them from breaking. Afterwards, the threads can be dyed or weaved.
6. Lotus fibres
Using lotus fabrics and textiles may sound exotic to western ears, but in countries like Thailand and Myanmar, for example, lotus fibers have been used for special garments for centuries. Not surprisingly because the manufacturing process produces a luxurious fabric that feels like a mixture of silk and raw linen that is also stain-resistant, light weight, soft, silky and extremely breathable. 'What's not to love?' one may ask again. In this case, it is the complicated and lengthy manufacturing process that is the biggest hurdle when using lotus stems.
After harvesting the lotus stems, they are cut open at the end to extract the long, thin fibers. This must be done within three days of harvesting to achieve optimal results. The fibres thus obtained are washed and hung to dry before hand-woven on traditional looms. The quality of the lotus fabric is so superior that there have been attempts at commercial use; Jaipur-based Hero's Fashion Pvt Ltd from India, for example, has already found many followers with its white NoMark Lotus shirt. It remains to be seen how commercially viable and suitable for large scale production each of the six sustainable fibres - hemp, nettles, coffee, pineapples, banana and lotus - portrayed here is. Specifically hemp, nettles and coffee have huge potential for the mass market, whereas fabrics made out of lotus stems and pineapple should be interesting for the luxury market.
Source: Fashion United
Première Vision’s first Vision Barometer, created to study the economy of creative materials for fashion, showed an uptick in textile production in 2016 and a slight downturn in leather manufacturing. Implemented as part of the IFM – Première Vision Chair launched in January 2016, the new index offers a quantified measure of business activity in the market of materials for creative fashion, the target of the Première Vision shows. The forecast for the rest of 2017 and beyond is one of some clearing amid climatic disturbances, as the industry deals with complicated issues along the supply chain. The Barometer was elaborated from data derived from the responses provided by Première Vision Paris exhibitors—weavers at Première Vision Fabrics and tanners at Première Vision Leather—to the economic survey conducted by the IFM on behalf of Première Vision. The index provides a means to measure the global activity of creative materials, upstream from the activity of fashion brands. The results of the barometer allow exhibitors to compare their own performance on two levels–compared to that of their colleagues and competitors in the creative fashion market and compared to the more general activity of the global leather and textile markets. These indexes are expressed in terms of percentage changes in production volumes, and are compared to the global performance index of the textile and leather markets recorded quarterly by the United Nations Industrial Development Organization. For the full year 2016, the Première Vision Textile Index grew 1.7% in volume compared to 2015. Manufacturing among Première Vision Fabrics exhibitors from developed economies grew 1.9%, a much faster pace than the Textile World Production index, which fell 0.1%. Within these economies, the activity of European players, up 3.7%, was stronger than that of companies in developed Asian countries, a 0.6% increase, represented mainly by Japan, South Korea, Taiwan and Hong Kong. Production among exhibitors from emerging economies grew 1.1% compared with an increase of 4.5% for the Textile World Production Index, although emerging countries are over-represented in the benchmark indicator in comparison with the Première Vision index. In terms of sales, European exhibitors benefited from an 8.2% rise in the euro versus the dollar, reflecting an improvement in the business climate and a refocusing on more creative products with higher added value on the part of exhibitors. Meanwhile, the Première Vision Leather Index showed a 0.8% decline. Of note is that Première Vision Leather exhibitors are mainly of European origin, including Turkey, and there is little or no representation from Asia or emerging countries. Exhibiting companies oriented toward the luxury market reflected changes in the global market trend, as indicated by the Leather World Production index of mature economies posting a 0.5% decline. By contrast, in terms of sales, exhibitors from Europe showed a 2.1% decline. After several years of strong growth, sale volume continues to fall, corresponding notably to a decline in the price of skins. Looking at current conditions, since January 2017, the business of Première Vision Fabrics and Première Vision Leather’s exhibitors “seems clearly more buoyant than in 2016,” the study noted. Manufacturing volumes appear to have stopped declining, with some exhibitors seeing a significantly higher upturn in orders. “Yet, the U.S. market continues to be severely affected by the transformation of retail to digital,” the Barometer stated. “American companies are adapting to evolving domestic consumption and to European competition with a command of rapid product renewal or strong creativity.” The European market looks more dynamic, the study noted, characterized by a search to re-segment products upward, targeting more creativity in the pursuit of markers of differentiation. The exhibitors also pointed out three trends that seem to be strengthening. The first is the relocation of raw material purchases and manufacturing produced in the “Euromed” region, consisting of countries European countries and African nations along the Mediterranean Rim. The second is a shortening of time-to-market, reflected in later but more numerous collection processes, with a multiplication of collections. Lastly, is the “search for exclusivities to bolster creativity.” Première Vision will unveil the activity indexes for the first half of 2017 at its February show.
Source: Sourcing Journal Online
The long-awaited Yarn Expo Autumn will be held again in Shanghai this week, welcoming thousands of industry players who are looking for quality yarn and fibre products from China, Asia and elsewhere. The event has been growing in popularity every year, with the number of exhibitors increasing to around 493 this edition, up from 319 last year. The exhibition space will also expand by 115%, allowing suppliers to showcase more of their products to visitors. “Given the reputation of Yarn Expo as the best trade platform in the Asian region, suppliers are keen on joining to meet their potential customers here,” said Wendy Wen, Senior General Manager of Messe Frankfurt (HK). Suppliers from 13 countries and regions, including Bangladesh, Mainland China, Hong Kong, India, Indonesia, Korea, Malaysia, Pakistan, Singapore, Switzerland, Thailand, Uzbekistan and Vietnam, will participate in this year’s autumn edition.
Foreign yarn suppliers
Being held in one of Asia’s major transport hubs, Yarn Expo gathers leading yarn and fibre suppliers from throughout the region. This year, the India Pavilion is once again a highlight of the fair, bringing around 40 of the leading Indian names to Shanghai. In addition, Better Cotton Initiative (BCI) will join the fair for the first time with five spinners demonstrating its cotton yarn made from eco-friendly cotton. Another show highlight includes the returning Birla Planet Pavilion. Birla Group benefited from its participation in the previous Yarn Expo where it succeeded in increasing its brand awareness in China. This edition, it will form the pavilion with 16 companies to present a wide range of products, including Birla Modal and Birla Spunshades. The leading rayon spun yarn producer PT Elegant Textile Industry will also join as one of the important members.
Show’s growing influence
In addition to the aforementioned pavilions, Uzbekistan and Pakistan exhibitors will also return to the fair to cater to the growing demand for their high quality and competitive cotton yarn. “What’s more, the positive feedback from existing exhibitors along with the show’s growing influence has further attracted new exhibitors who are interested to develop in the Asian market,” organisers report. Rubberflex Sdn Bhd, from Malaysia, a manufacturer of advanced latex threads, is one of the newcomers, and it is ready to showcase its renowned products with features of heat-resistance, high elasticity and durability. Indonesian companies are showing much enthusiasm towards the fair. PT Indo-Rama Synthetics Tbk, for instance, will display viscose, polyester spun, melange yarn and other specialty yarns.
Domestic exhibitors
In order to stand out from the competition, domestic yarn and fibre suppliers have been working hard to upgrade their products. Buyers can expect to see their latest innovative products from five highlighted display zones including Fancy Yarn Zone, Natural Cotton Yarn Zone, Colourful Chemical Zone, Quality Wool Zone and Green Linen Zone. Amongst the five highlighted zones, the Fancy Yarn Zone, which places an emphasis on innovation, will double in size and accommodate around 50 companies this year. Fibre products under the theme of trend, innovation, green and comfort will also be presented by some 200 exhibitors in the Colourful Chemical Zone. Furthermore, there is still a wide range of products such as nylon, viscose filament, renewable and recycled fibres and more for visitors to discover in these zones.
Source: Knitting Industry
