Amidst concerns over growth slowdown, the government on Tuesday announced ambitious plans for bank capitalisation to boost the economy, spur investments and create jobs, as well as a highway construction project. Stressing that the macro fundamentals of the economy are strong, Finance Minister Arun Jaitley announced the ₹5.35 lakh crore BharatMala Pariyojana to construct 34,800 km of highways and an aggressive ₹2.11 lakh crore capitalisation plan for public sector banks. The decisions were taken at Union Cabinet meeting earlier in the day.
Focus on infra
Flanked by top Finance Ministry officials, Jaitley told newspersons the measures were not part of any course correction but consistent with the government’s focus on infrastructure expenditure, public investments and fiscal consolidation. Following the note ban last November and the GST rollout in July, economic growth slowed to a three-year low of 5.7 per cent in the first quarter of the fiscal, raising concerns over the health of the economy. “There has been a lot of discussion within the government and with the Prime Minister. India has been the fastest-growing major economy for the last three years and the attempt is to maintain high growth rate in the coming years,” Jaitley said.
Capital infusion in PSBs
To be carried out over two years, starting this fiscal, the capital infusion in PSBs envisages recapitalisation bonds, which are expected to raise ₹1.35 lakh crore; an additioal ₹76,000 crore will come through budgetary support and by tapping the market by diluting government equity, said Rajiv Kumar, Secretary, Department of Financial Services. “At present, budgetary support will come from only the ₹18,000 crore already allocated under the Indradhanush scheme for bank recapitalisation,” Jaitley said. This is unlikely to impact the fiscal deficit, he added. “This will depend on the nature of the recapitalisation bonds and the manner in which they are dealt with,” he said, adding that the structure of the bonds would be finalised soon. Chief Economic Advisor Arvind Subramanian said recapitalisation bonds count as debt, but it depends on which agency issues it. “Under the accounting practice of the International Monetary Fund, these are below the line and not part of the deficit, but in our own accounting, it is part of the deficit,” he said. Jaitley reiterated that the capital infusion initiative would be accompanied by more banking sector reforms. “There will be a differential approach to capitalisation. It will be based on performance and potential of banks,” Kumar said. The government hopes that the capitalisation plan will propel micro, small and medium enterprises through enhanced access to markets, and help finance such firms in 50 clusters. “While Ministries concerned will spearhead and provide momentum, banks will undertake speedy processing of loan applications,” said an official release, adding that banks will have to compete for loans through the revamped udyamimitra.in portal. Non-performing assets of banks have increased from ₹2.75 lakh crore in March 2015 to ₹7.33 crore as on June 2017. The government had launched the Indradhanush scheme in 2015 to infuse ₹70,000 crore in state-run banks over four years to meet their capital requirement in line with Basel-III global risk norms. Banks were allocated ₹25,000 crore in 2015-16 and 2016-17 each; another ₹10,000 crore each will be infused in 2017-18 and 2018-19.
BharatMala project
The BharatMala project envisages an outlay of ₹5.35 lakh crore over a five-year period till 2021-22. “While ₹2.09 lakh crore will be raised as debt from the market, ₹1.06 lakh crore of private investments would be mobilised through public private investments and ₹2.19 lakh crore is to be provided out of accruals to the Central Road Fund, Toll Operate Transfer monetisation proceeds and toll collections of NHAI,” said Finance Secretary Ashok Lavasa.
Source: Business Line
India has remained one of the fastest growing economies in the world for the past few years, and there are strong macroeconomic fundamentals, Union finance minister Arun Jaitley said at a press conference today. India’s foreign reserves have crossed $400 billion in 2017, compared to $100 billion last year, economic affairs secretary Subhash Garg said at the meet.
Main points of the press conference:
Source: Fibre2fashion
Exporters attributed the increase mainly to the upcoming Christmas season in western markets. After seeing a fall for three months in a row, ready-made garment (RMG) exports rose by 25 per cent in rupee terms and 30 per cent in dollar terms in September. But exporters say this will not be sustainable since government policies are not favourable. RMG exports rose to Rs 10,707 crore in September 2017 from Rs 8,583.55 crore in the same month a year ago. In dollar terms, these figures were $1.662 billion as against $1.284 billion. Of the total RMG exports, 52 per cent is woven and 48 per cent is knitwear. The sector started the year in April with 27.60 per cent growth in rupee terms and a 31.65 per cent increase in dollar terms. But in the following month growth (in rupee terms) was only 3.84 per cent. Exporters say that garment exports this year will surpass last year’s total exports of $17.358 billion as, generally, exports tend to grow in the second half. January to March are the crucial months for RMG exports. Around 30-40 per cent of exports have taken place during these three months in the last few years. Exporters attributed the increase mainly to the upcoming Christmas season in western markets. The other factor is that inventories piled up due to the GST are now being cleared. Tirupur Exporters’ Association President Raja Shanmugam said thatpeople are now becoming used to the system. In the last three months while global demand was increasing, exporters could not cater to it due to tax-related confusion. “Now we don’t have a choice, but the GST makes our products costlier compared to other countries,” said Shanmugam. He added the September numbers are not sustainable in the current environment. Another exporter agreed and said unless India signs an FTA with European countries exporters will be in deep trouble. Competing nations have a duty advantage, which India does not possess. Customers have also started asking for a reduction in price after the rupee started strengthening against the dollar. This comes at a time when the cost of doing business is going down for exporters. Customers are sourcing from India as part of a de-risking strategy. “The day is not far when competing nations will catch up with this trend,” said a leading exporter.
Source: Business Standard
Confusion over continuation of the duty drawback scheme, sharp decline in Rebate on State Levies (ROSL), prolonged uncertainty over GST rates on knitwear/woven garments coupled with intense competition from neighbouring countries have impacted the exports of readymade garments (RMG) at national level, including at Tirupur, the knitwear capital of India in the first half of the current fiscal. According to the industry data provided by Tirupur Exporters’ Association, the largest knitwear/readymade garment cluster in India, the all India RMG exports in the April-September period grew only 4.53% as against a minimum growth projection of 10% to Rs 59,121.51 crore. Confusion over continuation of the duty drawback scheme, sharp decline in Rebate on State Levies (ROSL), prolonged uncertainty over GST rates on knitwear/woven garments coupled with intense competition from neighbouring countries have impacted the exports of readymade garments (RMG) at national level, including at Tirupur, the knitwear capital of India in the first half of the current fiscal. According to the industry data provided by Tirupur Exporters’ Association, the largest knitwear/readymade garment cluster in India, the all India RMG exports in the April-September period grew only 4.53% as against a minimum growth projection of 10% to Rs 59,121.51 crore. However, the current growth rate is little better than the first six months of 2016-17 fiscal, which saw only a 3% growth over 2015-16, the sources added. Interestingly, the month of September played a huge role in salvaging the industry to report 4.53% growth in the first six months. In September alone, the RMG exports grew 25% to Rs 10,707.86 crore as compared to Rs 8,561.73 crore reported in September 2016. Except, April and May, the RMG exports in June, July and August saw degrowth of 5.5%, 15.47% and 3.84%, respectively due to uncertainty over regulatory issues. Though the second half of every fiscal would always be better than the first half as far as RMG is concerned, but the industry sources pointed out that it is difficult to post 10% growth as projected for the entire fiscal as exporters still not come out of the regulatory blues and other issues. For the fiscal ended March 31, 2017, the RMG exports were at Rs 116,381.24 crore and it was Rs 111,013.75 crore in 2015-16 fiscal. Interestingly, Tirupur, the knitwear hub of India and accounts for more than 22% of total RMG exports from India over the years, saw a marginal growth in the first six months to around `13,000 crore as compared to Rs 12,550 crore reported in the same period last fiscal. Tirupur cluster, which recorded over Rs 26,000 crore in exports in the last fiscal, has targeted Rs 35,000 crore exports in the current fiscal. The cluster, however, may find it difficult to achieve the same with the first half almost seeing a nil growth, the industry sources said. Speaking to the FE, Raja M Shanmugham, president, Tirupur Exporters’ Association (TEA), exporters were under enormous stress in the last few months due to uncertainty on the duty drawback scheme which was brought down from 7.7% to 2%.The exporters were also hit due to reduction in ROSL to 1% from 3.5% earlier. In addition to that the prolonged confusion over GST rates on knitwear/textile garments also cast a shadow on the exports and overall the industry lost 5% growth in the first six months.
Source: Financial Express
Ministries of Power and Textiles have joined hands under a new initiative SAATHI (Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries). Under this initiative, Energy Efficiency Services Limited (EESL), a public sector entity under the administrative control of Ministry of Power, would procure energy efficient Powerlooms, motors and Rapier kits in bulk and provide them to the small and medium Powerloom units at no upfront cost.The SAATHI initiative of the Government will be jointly implemented by EESL and the office of the Textile Commissioner on a pan-India basis. To kick start the implementation, cluster wise demonstration projects and workshops will be organized in key clusters such as Erode, Surat, Ichalkaranji, etc. The use of these efficient equipment would result in energy savings and cost savings to the unit owner and he would repay in installments to EESL over a 4 to 5 year period. This is the aggregation, bulk procurement and financing model that EESL has successfully deployed in several sectors like LED bulbs, Smart Meters and Electric Vehicles. The unit owner neither has to allocate any upfront capital cost to procure these equipment nor does it have to allocate additional expenditure for repayment as the repayments to EESL are made from the savings that accrue as a result of higher efficiency equipments and cost savings. The aggregation of demand and bulk procurement will also lead to reduction in capital cost, benefits of which will be passed on to the Powerloom units so that their repayment amount and period would reduce. The Powerloom sector in India is predominantly an unorganized sector and has a large number of micro and small units which produce 57 percent of the total cloth in the country. There are 24.86 lakhs Powerloom units in this country, most of whom use obsolete technology. With a view to upgrading the technology, the Government of India has been implementing the INSITU upgradation of plain Powerlooms as part of Power Tex India under which plain Powerlooms are attached with process control equipment leading to higher productivity, better quality and more than 50 percent additional value realisation. So far 1.70 lakhs plain Powerlooms have been upgraded under the scheme, with a total Government of India subsidy of Rs. 186 crores.
Source: Business Standard
Maharashtra Chief Minister Devendra Fadnavis on Tuesday ordered a panchnama of crops hit by the withdrawing monsoon, especially in Vidarbha and Khandesh regions of the state. The panchnama is carried out to assess losses incurred by a farmer and to compensate him accordingly. “The chief minister, during the course of Cabinet meet directed officials to immediately start the process of panchnama of crop losses due to withdrawing monsoon,” an official source said. In a letter addressed to Chief Minister Devendra Fadnavis recently, Leader of Opposition in the Legislative Council Dhananjay Munde had said that Marathwada, Vidarbha and Khandesh regions saw spells of heavy showers and a few places had hailstorms too. "Large tracts of standing crops have been destroyed due to rains. In Marathwada, soybean, corn, cotton, moong and urad crops have been ruined," the NCP leader had said. Cotton and soybean crops have been hit in Vidarbha, Munde had further said. The official further said the chief minister has also directed all the district guardian ministers to visit their respective places and ensure that the cotton procurement registration system takes place smoothly. "Guardian ministers have been tasked with ensuring that cotton growing farmers do not face any kind of troubles in the procurement process," the official said.
Source: Business Standard
India is looking to expand its trade footprint in America with initial discussions initiated in the government for a possible free trade agreement (FTA) with Caribbean and Central American countries and a logistics hub in PanamaBSE 1.49 % to help shipment of goods. The move comes with fresh overtures to Cuba, which is returning to the global mainstream. Sources told TOI that a plan for Indian logistics centres in Panama has been discussed internally. The Central American country is a major shipping and airline hub and the facility can be useful to encourage warehousing facilities to enable Indian goods to be delivered ‘just in time’ to companies in the region. Although it’s still in initial stages, a section in the Centre believes that it would be useful to explore a trade agreement with Carricom, the 15-nation trading bloc, along with a limited deal with the Central American countries, the sources said. While India had earlier tried to diversify its trade basket with a focused scheme for Latin America, themove has seen limited impact. The region’s share in India’s exports is less than 3%, with Brazil, Chile, Argentina, Columbia and Peru accounting for over 70% of this. Commerce & industry minister Suresh Prabhu is making a rare visit to Cuba, where India is a partner country for the Havana Trade Fair, and is due to meet his Cuban counterpart apart from trade ministers from Suriname, Barbados, Dominican Republic and Haiti, sources told TOI. He is also expected to meet Cuban president Raul Castro, and the first secretary of the Cuban Communist Party. He then goes to Panama, where a logistics hub — something that China has already done — is expected to figure on the agenda.
Describing it as a “winwin” deal, the tropical farm produce from the Caribbean countries is unlikely to put pressure on India’s farm sector, a no-go area as far as opening up is concerned, sources told TOI. On the other hand, government officers said, a trade agreement can open the doors for Indian companies to provide lowcost medicines, automobiles, engineering, textiles and leather products.
Source: The Economic Times
The Export Promotion Council for Handicrafts has welcomed the Government’s decision to ease the procedure for merchant exporters. Handicrafts merchant exporters can now purchase the goods from registered suppliers by paying 0.1% GST and amount paid as GST will be refunded within 90 days of the export transaction. Chairman, EPCH, Shri O.P. Prahladkaha has said that the exports of handicrafts during the year 2016-17 was to the tune of Rs. 24,392.39 crores, showing a growth of 13.15% over the preceding year.
Source: PIB
The Department of Industrial Policy and Promotion today approved Reebok India's proposal to set up single brand retail stores in the country. "The proposal to undertake single-brand retail trading of Reebok branded products in India has been approved. It entails foreign direct investment (FDI) inflows of Rs 20 crore," official sources said. Reebok India had sought government's nod to set up single brand retailstores in the country. The company had submitted its proposal to the Department of Industrial Policy and Promotion (DIPP). At present, Germany's Adidas AG sells Adidas and Reebok sports shoes and clothes in India. As per the foreign direct investment (FDI) policy, 100 per cent equity investment is allowed in single brand retail trading. FDIof up to 49 per cent is permitted under the automatic route but government's nod is required beyond that limit. Foreign investment is allowed subject to certain conditions, which require products to be of a 'single brand' only and to be sold under the same brand globally. Furthermore, in respect of proposals involving FDI beyond 51 per cent, it is mandatory to source 30 per cent of the value of goods purchased from India, preferably micro small & medium enterprises.
Source: Business Standard
The Indian Government today waived penalty on delayed filing of initial good and services tax returns (GSTR) for August and September, finance minister Arun Jaitley announced on Twitter. The late fee that has been already charged to businesses will be credited back to taxpayer accounts, he said. A similar announcement was made earlier for the month of July. Traders have been demanding penalty waiver for delayed filing of 3B returns. GSTR 3B is a simple return form introduced by the Central Board of Excise and Customs (CBEC) for July to December. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes. About 55.87 lakh GSTR-3B returns were filed for July out of which 33.98 lakh were filed before the due date. Out of 51.37 lakh returns for August and 42 lakh (the figure may rise) returns for September, 28.46 lakh and 39.4 lakh were respectively filed before the due date. A substantial number of businesses file their returns after the due date expires, according to a news agency report. (DS)
Source: Fibre2Fashion
RAIPUR: In what could be a landmark innovation, scientists at Indira Gandhi Krishi Vishvavidyalaya (IGKV) have developed yarn of linen cloth from flax plant - a first in India. So far, Indian linen fabric manufacturers have had to import yarn due to its unavailability in India. Aiming to increase the yield of linseed, which is another name for flax seed, IGKV scientists carried research and used the stem of linseed plant to develop the linen yarn. The development of this yarn under the research project is expected to boost the handloom and textile sector in the country, which has so far been dependent on imported yarn for linen production. Explaining the process for developing the linen yarn, principal scientist Dr KP Verma said, "The stem of the linseed plant is virtually useless. In the trial, we tried to find out how linen yarn could be developed from it. For that, we soaked the linseed stems in water for four days to soften the inner bark. Then the stems were dried in the sun till they became hard and brittle. Then to separate the inner soft tissue from the dry outer wood, the stems are grinded in machines. The soft tissue which is extracted is in the form of fibre and is then given to weavers who then process the yarn." Verma added that the extracted yarn can also be used to make paper, decorative and handicraft items, which would boost Chhattisgarh's handloom and handicraft industry. IGKV's vice chancellor Dr SK Patil spoke highly of the discovery and said, "The university will continue to pitch in the research to farmers so that it not only fetches them additional income but bring about reformative changes in the textile industry." In Chhattisgarh, linseed is cultivated in the tribal-dominated districts of Kanker, Durg, Rajnandgaon, Kawardha and Mungali across an area of 3,000 hectare. Apart from the flax seeds fetching Rs 6,000 per quintal, the additional use of the stem for linen production would help farmers as well. The team of scientists who contributed in the project were Dr KP Verma, Dr Ajay Verma, Dr Sanjay Dwivedi, Dr Nandan Mehta, Dr Arvind Saraogi and Ramar Dewangan, a weaver.
Source: The Times of India
Country’s specialised textile industries have been facing problem in meeting export orders due to an acute shortage of raw materials as cotton and garment wastes are being smuggled out and exported to India, industry people said. They said the specialised textile industries produce yarn from cotton waste of spinning mills and garment waste better known as jhut through recycling and the yarn is used to produce terry towel, home textile, denim fabric, and khadi fabrics. Sector people said that due to the shortage of raw materials the prices of yarn increased by 20-25 per cent in last 2-3 months. They alleged that the cotton waste and garment jhut, the main raw materials for the specialised textile industries, were being smuggled out and exported with false declaration to India through Benapole, Dawki, Akhaura and Tamabil land ports. Recently, the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association has sent separate letters to finance and commerce ministries seeking government intervention to keep the supply of raw materials available for the sake of the industry. According to the BTTLMEA letter, cotton waste and garment jhut are being exported to India under the name of garment clipping as the government in 2008 set minimum export prices for the products and imposed high export duty on cotton waste to discourage the export of the items. Terry towel manufacturers apprehend that a dishonest quarter is exporting cotton waste bales covered with garment jhut to India as there is no export duty on garment waste. ‘Production at some of our member factories remained suspended for last one month due to a shortage of yarn as the raw materials are totally unavailable at the local market,’ AKM Mahfuzur Rahman, vice-president of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, told New Age. He said that cotton waste and garment jhut were going to India from Bangladesh and coming back in the form of yarn. Mahfuzur said that the price of yarn increased to $1.60 a kilogram from $1.20 a kg in last two months. He requested the government to strengthen monitoring at land ports so that the raw materials cannot be exported with missdeclaration. In 2008, the government set minimum export prices for cotton waste at $4.5 (Tk 360) a kg with 25 per cent export duty. ‘We apprehend that misdeclaration is taking place in exporting cotton waste and garment jhut. A dishonest quarter is exporting cotton waste under the name of garment waste as the minimum export prices of garment waste is Tk 18 a kg and there is no export tariff on the product,’ Md Mujibur Rahman, secretary of the BTTLMEA said. Export Promotion Bureau data showed that the export of garment waste witnessed more than 140 per cent growth in the first quarter of the current financial year 2017-18. The export growth of garment waste indicates that cotton waste covered with garment jhut is being exported, sector leaders said. According to the EPB data, country’s export earnings from specialised textiles in the financial year 2016-17 stood $106.14 million.
Source: New Age BD
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 56.38 per barrel (bbl) on 23.10.2017. This was higher than the price of US$ 55.83 per bbl on previous publishing day of 20.10.2017. In rupee terms, the price of Indian Basket increased to Rs. 3665.86 per bbl on 23.10.2017 as compared to Rs. 3632.27 per bbl on 20.10.2017. Rupee closed stronger at Rs. 65.02 per US$ on 23.10.2017 as compared to 65.06 per US$ on 20.10.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 23, 2017 (Previous trading day i.e. 20.10.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
56.38 (55.83) |
|
(Rs/bbl) |
3665.86 (3632.27) |
|
|
Exchange Rate |
(Rs/$) |
65.02 (65.06) |
Source: PIB
Surat based Orange O Tec Pvt Ltd has already sold more than 100 digital textileprinting (DTP) machines of MS Printing Solutions Srl (MS), Italy, in the Indian textile market. Orange O Tec is the sole distributor of MS Italy, a global leader in digital textile printing technologies and is now also one of the highest selling digital printing brands in India. MS digital textile printer model, the JP7 has emerged as the best-selling printer in India among the various MS printers. The production speed of the JP7 is 200 linear metres per hour and has a printing width of 180 cms. The printer can accommodate up to 16 printheads, while offering a printing resolution of 600 x 600 dpi. Another MS DTP machine, the JPK EVO is an alternative to conventional flatbed machines and is in line with today's fast changing fashion scenario and a time to market platform, with production speeds of 370 linear metres per hour. It has a massive print width of 320 cms and can accommodate up to 32 print heads offering print resolution of 600 x 600 dpi. On the other hand, the LaRio is an alternative for the high printing production volumes of rotary printing. The LaRio offers production speeds of 2,100 linear metres per hour in up to eight colours, with a gigantic printing width of up to 320 cms and a printing resolution of 600 x 600 dpi. A LaRio has been installed in India and is running to the full satisfaction of MS Orange’s valued customer. Features common to all MS digital textile printers are drop size from 4 to 72pl, open software system, and embedded remote diagnostic and embedded web server for cost report.
Same Print Result (SPR) is a very important concept which distinguishes the MS product range from its competitors. “With MS, you can start with an entry level printer like the JP5 EVO and as your business and production expands, you can graduate to the LaRio, while maintaining the same print quality throughout, but by using the same inks and software,” Orange O Tec said in a statement. Orange O Tec too has built its reputation by offering impeccable after sales service through a team of over 25 service engineers and software support specialists stationed in its various offices in New Delhi, Mumbai and Surat. The company also has resident engineers stationed at Tirupur and Bangalore. At each of these offices, the company also keeps a very huge inventory of critical spare parts. All these efforts ensure that a MS digital textile printer is up and running with optimum downtime. (RKS)
Source: The Times of India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1348.41 |
USD/Ton |
-0.56% |
10/24/2017 |
|
VSF |
2335.23 |
USD/Ton |
-1.90% |
10/24/2017 |
|
ASF |
2651.62 |
USD/Ton |
0% |
10/24/2017 |
|
Polyester POY |
1303.21 |
USD/Ton |
0.29% |
10/24/2017 |
|
Nylon FDY |
3540.51 |
USD/Ton |
0.86% |
10/24/2017 |
|
40D Spandex |
5951.07 |
USD/Ton |
0% |
10/24/2017 |
|
Polyester DTY |
5694.95 |
USD/Ton |
0% |
10/24/2017 |
|
Nylon POY |
1536.73 |
USD/Ton |
0.49% |
10/24/2017 |
|
Acrylic Top 3D |
3314.52 |
USD/Ton |
0.46% |
10/24/2017 |
|
Polyester FDY |
2787.21 |
USD/Ton |
0% |
10/24/2017 |
|
Nylon DTY |
1604.53 |
USD/Ton |
0% |
10/24/2017 |
|
Viscose Long Filament |
3676.10 |
USD/Ton |
0.83% |
10/24/2017 |
|
30S Spun Rayon Yarn |
2983.07 |
USD/Ton |
0% |
10/24/2017 |
|
32S Polyester Yarn |
2018.84 |
USD/Ton |
0% |
10/24/2017 |
|
45S T/C Yarn |
2877.61 |
USD/Ton |
0% |
10/24/2017 |
|
40S Rayon Yarn |
2154.44 |
USD/Ton |
0% |
10/24/2017 |
|
T/R Yarn 65/35 32S |
2440.69 |
USD/Ton |
0% |
10/24/2017 |
|
45S Polyester Yarn |
3163.86 |
USD/Ton |
0% |
10/24/2017 |
|
T/C Yarn 65/35 32S |
2425.63 |
USD/Ton |
0% |
10/24/2017 |
|
10S Denim Fabric |
1.42 |
USD/Meter |
0% |
10/24/2017 |
|
32S Twill Fabric |
0.88 |
USD/Meter |
0% |
10/24/2017 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
0% |
10/24/2017 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
10/24/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
10/24/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15066 USD dtd. 10/24/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Ministry of Textile Industry has revised Prime Minister's Exports Enhancement Package of incentives for textile sector exporters. According to the notification, fifty percent of the rate of drawback of local taxes and levies will be provided without condition of increment. Earlier, the Prime Minister package was approved by Economic Coordination Committee of the Cabinet. The package will provide duty drawback of taxes collected from garments, home textiles, processed fabric, greige fabric and yarn manufacturing cum-exporter units.
Source: Radio Pakistan
The area of the project will be 306 feddans, aims to transform Egypt into a hub for textile industriesMohamed Kassem, head of the Supreme Council for Textile Industries, said that work is ongoing to establish a partnership with a major Chinese company to develop a project that aims to improve a free zone specialised in textile industries in Minya. Minister of Investment and International Cooperation Sahar Nasr met with members of the council to discuss the possibility of involving the private sector in developing a freezone specialised in textile industries on an area of 306 feddans in Minya. Kassem stressed that the establishment of the company with the Chinese side will be done right after issuing the approval to establish the zone. According to a statement from the Ministry of Investment on Tuesday, the ministry is coordinating with the governor of Minya to complete all the procedures of the project, which aims to transform Minya in particular and Egypt in general into a regional hub for the textile industries in the Middle East and Africa. The minister stressed that the project is a first step towards repeating such an experiment in many governorates of Egypt. She explained that the ministry will support this experience by providing part of the funding required through the international financial institutions, as well as the implementation of specialised training programmes in textile industries. The members of the Supreme Council for Textile Industries praised the measures taken by the ministry to improve the investment environment and expand the establishment of free and investment zones in the various governorates. They also expressed their intention to expand in the governorates of Kafr Al-Sheikh, Beheira, and Sharqeya, according to the statement. The meeting was attended by Mona Zobaa, the executive chairperson of the General Authority for Investment and Free Zones (GAFI), and Fadel Marzouk, the chairperson of the Readymade Garments Export Council of Egypt. Egypt is implementing an ambitious economic reform programme, which included liberalising the exchange rate and includes restructuring fuel subsidies and applying the value-added tax. The programme also includes ratifying a new Investment Law and an Industrial Licensing Law, all of which aim to accelerate economic growth to curb inflation and reduce unemployment.
Source: Daily News
VN textile industry needs to spin a new yarn, 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 newsGarment production at the Hoa Tho Textile and Garment JSC’s actory in South Dong Ha Industrial Park, Quang Tri Province. It will also blunt the industry’s competitive edge further, they add. According to a 2016 report from the Ministry of Industry and Trade (MoIT), by the end of last year, 99 per cent of cotton used in the textile industry, reaching 1.03 million tonnes worth about US$1.7 billion, was imported, a year-on-year increase of two per cent in quantity and 2.5 per cent in value. Thread import turnover in 2016 also went up 8.8 per cent in volume and 5.9 per cent in value to 861,00 tonnes and $1.6 billion respectively. Import of whole fabric last year increased by 3.2 per cent over 2015 to reach $10.5 billion.
Feeble at home
Currently, Viet Nam is only able to supply 0.3 per cent of domestic cotton demand and 40 per cent of thread demand, so the rest is imported chiefly from the US, China and Taiwan. Paradoxically, more than 70 per cent of the national thread output of 1.4 million tonnes is exported, while the Vietnamese garment industry imports nearly 0.1 million metric tonnes of high-grade fibre from China, Korea and Taiwan per year. Each year, Viet Nam earns tens of billions of dollars from textile and garment exports, but businesses make modest profits of less than $2 billion because the garment industry spends more than half of its earnings on importing raw materials, according to the MoIT. Tran Thanh Hai, Deputy Director of the MoIT’s Import-Export Department, said in an announcement on the MoIT’s online portal, that the textile industry’s dependence on imported instead of locally produced raw and auxiliary materials has significantly limited its competitiveness and added-value component. Domestic textile firms produce nearly 2.8 billion metres of fabric each year, meeting 30 per cent of total demand, so Viet Nam still has to import up to 6.1 billion metres of fabric annually, even from countries not participating in the same major FTAS like the Trans-Pacific Partnership, the EU-Vietnam FTA, or the Vietnam Japan Economic Partnership Agreement. Regarding accessories, production facilities for sewing thread, cotton sheets, buttons, zippers, or packaging labels can be found in Viet Nam, but they barely meet domestic market demand, so these have to be imported in large quantities too. According to a 2016 report of the Viet Nam Textile and Garment Association (VITAS), the industry finds itself in the lowest value-added segment in the supply chain, having 70 per cent of exported products under outsourcing for foreign firms, 20 per cent as domestic production and direct sales without intermediaries, 2.9 per cent as self-designed and self-manufactured products, and just one per cent made and distributed under original brands.
Tied in knots
Nguyen Van Tuan, Chairman of the Vietnam Cotton and Spinning Association (VCOSA), said during the 2016 Vietnam Textile Summit in HCM City, that the textile industry is "knotted" in the middle, i.e. highly productive in terms of making yarn and final products, but stunted in the production of fabric and other materials. With the industry’s annual growth rate at about 8 per cent, by 2025, the amount of fabric needed will double to 18 billion metres, meaning without further investment in domestic production, Viet Nam will have to import 15 billion metres, said Tuan. He also said that with 7.5 million spindles, the industry’s annual output is approximately 1.3 million tonnes of thread; of which more than 800 thousand tonnes are reserved for export, mainly to two major markets – China and Turkey.
Beleaguered sector
Worse still, many countries have intensified their use of trade remedies against Viet Nam. According to the MoIT, from 2007 onwards, Viet Nam’s yarn and thread exports have faced seven lawsuits – five anti-dumping, one anti-subsidy and one safeguard measure - from Turkey, the EU, India and Brazil. Therefore, around 80 per cent of Vietnamese yarn is exported to China, since its cotton prices are still relatively high. However, this cannot be seen as a stable market. Once China decides to use the 11 million tonnes of cotton in storage, Viet Nam’s yarn market share in the country will shrink considerably, according to a VCOSA analysis.
Supporting industries
Some insiders have said that the nation’s textiles and garments sector can still increase productivity and localisation rate through the development of supporting industries. VITAS Chairman Vu Duc Giang told the Vietnam News Agency a few months ago the FTAs are a driving force for growth, but the textile and garment industry must be prepared for it. Giang suggested that domestic businesses invest in the dyeing process, implement a solid human resource training strategy as the 4.0 Industrial Revolution gets closer, and focus heavily on building an integrated value chain between domestic producers. Hoang Ve Dung, Vinatex’s Deputy General Director, said at a meeting in August 2017 between Vinatex and the Vietnam Oil and Gas Group, that administrative agencies should coordinate with textile associations to push for appropriate policies on the purchase and production processes, covering both raw materials and finished products. According to the MoIT, total textile and garment exports in the first six months of 2017 reached $14.58 billion, up 11.3 per cent over the same period in 2016, despite difficulties. However, industry insiders have said that the turnover of the first 6 months is not sustainable.
Source: VNS
Cotton futures soared the most since the hurricane rally on fresh US weather fears, at a time of upbeat hopes for the country's exports of the fibre. Cotton futures for December stood up 4.1% at 69.59 cents a pound in late deals in New York, the highest since the limit-up performance prompted early last month by fears over Hurricane Irma. The gains, which took futures above their 100-day moving average for the first time since the Irma rally, were attributed in part to rains over the weekend which threatened further damage to crop production and quality. "More rain will risk greying up the fibre," so lowering its desirability, said Keith Brown at Georgia-based Keith Brown, adding that the squeeze on high-grade supplies was already seeing top-quality cotton earn a premium of some 4 cents a pound over futures. Commodity Weather Group said that up to 3.5 inches of rain fell in the south east US Plains on Saturday.
Frost fears
Mr Brown also flagged talk of a fresh storm brewing in the Caribbean, as identified on a Fox hurricane watch, although the official US Hurricane Center is giving no risk of "tropical storm activity", at least within a 48-hour horizon. Furthermore, there is talk of a crop-damaging frost next weekend, with Mr Brown flagging forecasts of a low of 33 degrees Fahrenheit on Friday in southern Texas, implying the potential for areas further north "to get something of a freeze".However, he added that "people who know say you would need temperatures to stay in the upper 20s degrees for several hours to affect bolls of cotton". Commodity Weather Group said that it would be "cold next weekend" in the southern Plains, but added that crop damage looked like proving "minimal".Dr John Robinson at Texas A&M University said over the weekend that "upside volatility [in prices] might come from the production possibilities as a west Texas crop heavy laden with bolls races to finish before cold weather shuts it down".
Decent demand
The cotton price jump comes amid upbeat signs on US cotton exports, with Louis Rose noting that the US had already sold, or exported, 57% of cotton it expects to ship in 2017-18, which began in August, and so is less than one-quarter of the way through. Sales for 2018-19 "stand in excess of 810,000 bales", he noted. Weekly data on Thursday from the US Department of Agriculture are on US cotton export sales are "likely to prove near unchanged" on the strong performance of the previous week. "It is generally thought that some business concluded at the recent International cotton Association meeting," in Singapore, "was not accounted for in the most recent export sales report", Mr Rose said.
'Delayed the inevitable'
However, Mr Rose was cautious on the price outlook, saying that "significant rallies are likely to be met with hedge pressure" from farmers selling crop. Mr Brown said that while the weather setbacks may have "pushed the inevitable out further", in terms of stringing out the US cotton harvest, the large production looked set to come to bear, He noted that in three of the last five years cotton prices had "bottomed out in November. "I see now reason why this year should be different," he told Agrimoney.com.
Source: agrimoney.com
Namoi Cotton forecast a rise in Australia's 2018 cotton harvest, thanks largely to better weather in parts of New South Wales, but was not quite as upbeat the official Abares bureau, noting some irrigation water deficits. The cotton ginning and marketing group, in which Louis Dreyfus is the top shareholder, flagged some benefit from a dry Australian spring, saying that the "extremely wet weather conditions that hampered ground preparation for the 2017 crop… have not reoccurred".Yields should not see the same "impact… as they did in 2017", when the Macquarie valley in northern New South Wales, and the state's southern valleys, were particularly affected. Indeed, in these areas, the drier conditions, while they have been bemoaned by growers of winter grains such as wheat, "are supportive of a larger 2018 cotton crop, with the southern New South Wales to potentially represent 25% of overall national production".'Less-than-optimum water levels'As an extra boost to crop prospects, despite the dry spring, water levels in public storage reservoirs were, as of the end of August, higher than a year before, Namoi Cotton added. However, "central irrigation valleys of the Namoi and Gwydir" in northern New South Wales "continued to operate at less-than-optimum public water storage levels".The group forecast Australia's next cotton harvest at 4.2m bales (914,000 tonnes), a rise of 11% year on year on its data, but behind the 956,000 tonnes at which the official Abares crop bureau pegs production.
Abares said its estimate includes a forecast of a 33% rise in yield "because of an expected rise in the share of area planted to irrigated cotton, which has higher yields than dryland cotton".
'Reduced seed yields'
Namoi said that, thanks to the increased crop, which it estimated at 75% seeded, its ginning and cotton seen volumes would "marginally improve".Ginning volumes were pegged at 1.05m-1.15m bales, compared with 1.02m bales from the 2017 crop. Cotton seen volumes were seen rising in line with ginning activity, although "margins are anticipated to narrow through reduced seed yields".The group also forecast that its Namoi Cotton Alliance joint venture with Louis Dreyfus would handle higher volumes of containerised commodities, thanks to the increased cotton harvest, but also to a growing interest in chickpeas, a crop "which has now secured its position as a rotation crop for cotton growers".
'Volatility boost'
The comments came as Namoi Cotton, which earlier this month converted from a co-operative to a fully listed public company, unveiled a jump in earnings to Aus$15.76m for the March-to-August half, up from Aus$7.42m a year before. The improvement, on revenues up 38% at Aus$413.2m, reflected in part the increased cotton volumes thanks to a similar-sized jump in Australia's 2017 harvest. However, Jeremy Callachor, the Namoi chief executive, also flagged that "cotton seed trading margins improved considerably through effective risk and position management, market volatility-related trading opportunities, and seed yield management".
Source: agrimoney.com
Taiwan is an engine of global sportswear and textile innovation, providing much of the knowhow that goes into garments and equipment made by companies like Nike, Adidas and Under Armour. Yet few people know of Taiwan's contribution to their clothes, and the country must do more to cultivate its brand image with end consumers. Outdoor sports are all the rage in Taiwan today. Interest in running, cycling, hiking, and camping has experienced tremendous growth in recent years. Last year alone there were more than 600 running races hosted on the island—that’s the equivalent of a staggering 1.7 events per day! Taipei City is now home to hundreds of micro-gyms and running clubs, and the city’s bike paths are overflowing with cyclists. This interest in outdoor sports has been matched by growing demand for branded performance sportswear. Little known to many, however, the technology and know-how that puts the performance in performance sportswear originates from right here in Taiwan. Last week the textile industry made its way to the Taiwan World Trade Center for the Taipei Innovative Textile Application Show (TITAS) trade event, Taiwan’s annual global textile trade show. Industry insiders from around the world met with Taiwan’s manufacturers, equipment makers, and innovators to discover the latest in textile innovation from the island. Many of the booths had their newest wares on display, but the truly innovative technologies weren’t out for public viewing. Instead, these technologies remained behind closed doors, available to only the most important industry customers. For Taiwan, this proclivity for closed-door promotion isn’t limited to the trade show floor. Consumers around the world remain equally in the dark about textile innovation coming from Taiwan. Over the past three decades, the island of Taiwan has transformed itself from a maker of low-cost fabrics into a global powerhouse specializing in functionally advanced textiles. Taiwan’s Ministry of Economic Affairs notes that more than 70 percent of the world’s outdoor sportswear — the largest application for functional textiles — is currently made using performance textiles from Taiwan. Taiwan has more than 4,300 textile manufacturers employing over 140,000 people, and total production value reached NT$409.3 billion (US$13.5 billion) in 2015. Customers of the island’s textiles include the world’s top brands. Everyone from Nike to Adidas to Under Armour sources their functional textiles from Taiwan. They do so because Taiwan’s depth and speed of innovation is critical to bringing the next generation of performance sportswear to market each new season. These brands also choose Taiwan for the country’s eco-friendly production capabilities; those that meet and exceed increasingly stringent demands for ethically sourced and sustainably manufactured fabrics. Taiwanese manufacturers not only lead the world in fabrics that keep sports enthusiasts cool in summer and warm in winter, the nation is increasingly the de facto supplier of “eco-textiles". Taiwan’s textile manufacturing lays claim to innovative textiles made from a variety of recycled and sustainable materials. These include fabric fibers made from oils derived from coffee beans and even trash reclaimed from the world’s oceans. Such achievements are a testament to the ingenuity of the Taiwanese and to the capacity for Taiwan to lead the world toward more sustainable textiles and textile manufacturing practices. I, however, remain concerned that Taiwan’s leadership in textile innovation could be short-lived if the nation fails to build a reputation among end-consumers. Despite Taiwan’s achievements, few consumers realize Taiwan’s role in the production of their favorite sportswear. When one buys an outdoor hiking jacket or a pair of yoga pants, the brand on the outside signals the product’s U.S. or European heritage, and the label inside declares the country of production; nowadays that’s likely to be Vietnam or Bangladesh. The name Taiwan, however, fails to appear at all, despite the fact that the product’s material and much of the production innovation originated from Taiwan. My experience tells me that Taiwanese suppliers aren’t all that bothered by the lack of publicity. Many of them remain content to stay behind the scenes, so long as brands such as Nike and Adidas continue to bring big orders. Such a mindset, unfortunately, leaves Taiwan in a disadvantageous position over the long term. A lack of reputation among consumers diminishes manufacturers’ bargaining power. Furthermore, this absence in publicity at the consumer level exposes Taiwan’s manufacturers to unnecessary risks, should the world’s leading brands decide to move their orders elsewhere in search of lower prices. Most damaging of all, however, is that despite Taiwan’s mastery of functional, smart and eco-textiles, upstart sportswear brands from the island are unable to tap a national reputation for textile innovation and green production to grow their own brands. It’s a reality that continues to keep Taiwan over-reliant on contract manufacturing. Can Taiwan afford to miss this opportunity? The island should be known to consumers globally for its leadership in functionally advanced and eco-friendly textiles—much as we recognize Italy as home to the world’s best leather, and New Zealand the home to the best wool. Consumers should be as confident in buying outdoor sportswear with textiles from Taiwan as they are in buying eyeglasses with lenses made in Switzerland. What Taiwan needs is a strategic, long-term promotional campaign to promote the nation’s stewardship in functional and eco-friendly textile innovation and manufacturing practices. This goes beyond the “Think Taiwan for Textiles" campaign sponsored by Taiwan Textile Federation, that focuses its marketing solely on industry insiders. Instead, the campaign should target end-consumers in major developed markets; those who make the vast majority of functional sportswear purchases and, according to a recent Nielsen study, are “willing to pay more for products and services that come from companies that are committed to positive social and environmental impact". These ideals are in near perfect alignment with the offerings of Taiwan’s textile manufacturers. Taiwan is in as good a position as any nation to build a reputation as the standard-bearer for eco-textiles and sustainable manufacturing practices. Such a reputation would benefit Taiwan on many levels. It would contribute to a virtuous cycle, where a positive reputation among consumers would lead to further growth, which in turn would result in greater investment, leading to more innovation. Not only would such a campaign help distance Taiwan from rivals such as Korea and China, it could also establish a market position that could be leveraged over decades, similar to Italy’s long-held repute for quality leather. Finally, such a standing would give young Taiwanese brands a solid foundation upon which to build their own brands as the Taiwan label becomes synonymous with innovative textiles and global-leading green production practices. As a brand consultant, I never fail to encourage our clients to build a clear set of associations for their brand. These associations serve to build positive differentiation for their products and their company. Taiwan is one of the few countries in a position to own the association of the world’s leader in functional textile innovation and as the epicenter of sustainable textile manufacturing. It goes without saying that such associations would be desirable associations for any nation. It’s time to move beyond the closed-door promotion of Taiwan’s textiles, and to reveal to the world’s consumers the Taiwanese innovation behind their favorite brands.
Source: International News
SHANGHAI, The 18th International Exhibition on the Textile Industry (November 27-30, 2017@SNIEC, Pudong, Shanghai) focuses on the world's latest innovative textile technology and high-growth application sectors, aiming at assisting industry players to overcome challenges and make full use of these new applications to breathe new breakthroughs and values to thetextile industry.
Automotive and Industrial Textiles
Asia is now the world's fastest growing region for automobile, where textiles are widely applied on automobile production such as seat cover, carpets, roof, heat/sound absorption materials, etc. As British Textile Intelligence predicts, the total volume of textiles per vehicle is expected to reach 35 kg in 2020. Therefore, huge market potential should be highlighted in the automobile industry.
Confronting the stricter requirement on technology, professionalism and customization from automobile manufacturer, ShanghaiTex 2017 will feature a "Technology for Automotive Textile" theme zone at E1 Hall which mainly demonstrates spinning, weaving, knitting, fiber, glass fiber, filtering material, etc. The show will focus on the latest fiber and technology with a wide range of production solutions to assist enterprises in industrial fabrics, automobile interiors, automobile parts, carpets, construction, electronics factory, etc. so as to grasp the opportunities in the high-growth market.
Creative Knitting in Lifestyle
Knitting technology is always evolving in accordance to our ever-changing lifestyle. Thus it penetrates our lives with evolving appearance, function and application. ShanghaiTex 2017 will explore the cutting-edge knitting technology and application from views of different lifestyles, stimulating innovation and inspiration among textile manufacturers. People are now tending to pursue fitness and healthy lifestyles, which leads to the emerging technology of functional fiber processing with better elasticity, air permeability, and softness properties. These new technologies can not only enhance sports performance, but also combine function with fashion for more aesthetic perception. Furthermore, the revolutionary integration of electronics and textiles has made Smart Textiles a market heat. It is able to respond to changing environments, communicate, detect and bear other interactive features. ShanghaiTex 2017 will uncover the wisdom by bringing conductive fabrics and soft batteries under the spotlight for sportswear, sport shoes, fashion and wearable electronics enterprises.
Green Printing, Dyeing and Finishing
Facing the pressure of strict environmental policy, the printing and dyeing industry is also keeping up the market pace. With high energy efficiency, precision and flexibility, digital printing developed rapidly and has made up many short comings of traditional printing technology. The "Printing, Dyeing and Finishing Machinery Zone" located at Hall W3/W4 will focus on the characteristics of short production cycle, low-volume and on-demand production of digital printing. In order to provide solutions on increasing design flexibility, inventory problems and lowering cost & manpower etc., ShanghaiTex 2017 will help textile and apparel enterprises stand out from the traditional inefficient printing industry. ShanghaiTex is sponsored by Shangtex Holding Co Ltd, China Council for the Promotion of International Trade Shanghai Sub-council and China Chamber of International Commerce Shanghai Chamber of Commerce; and is organized by Adsale Exhibition Services Ltd, Shanghai Textile Technology Service & Exhibition Co Ltd. and Shanghai International Exhibition Co Ltd.
Source: Market Insider
