Members of the Cotton Association of India (CAI) and Maharashtra Cotton Ginners Association ( MCGA) met chief minister Devendra Fadnavis seeking the removal of Agriculture Produce Market Committee (APMC) fees. Pradeep Jain, president, MCGA said the APMC’s charge a market cess of 1.25% of the value of the cotton brought to the market. Members of the Cotton Association of India (CAI) and Maharashtra Cotton Ginners Association ( MCGA) met chief minister Devendra Fadnavis seeking the removal of Agriculture Produce Market Committee (APMC) fees. Pradeep Jain, president, MCGAsaid the APMC’s charge a market cess of 1.25% of the value of the cotton brought to the market. “So if the value of cotton is Rs 4,500 then the cess comes upto Rs 50 which is not logical at all. Moreover, usually traders factor in the market cess when they make payments to farmers for the cotton purchased from them. So farmers end up getting less money. This kind of cess is not needed.” Industry observers pointed out that market committees do not provide any extra amenities to charge this kind of cess which is a major cost to the ginners. The CM assured the delegation that mandi fees will be withdrawn shortly in the state. Cotton prices at present are around Rs 4,400 per quintal to Rs 4,500 per quintal. Cotton prices in Maharashtra had firmed up after the Gujarat government announced a bonus of Rs 100 per 20 kg for cotton (Rs 500 per quintal) to be paid to farmers. Although cotton prices have not touched the minimum support price ( MSP) levels yet, Maharashtra cooperation minister Subhash Deshmukh has already directed Agriculture Produce Market Committees to commence online registrations of farmers for the purchase of cotton from October 18 for the 2017-18 cotton season. Cotton MSP has been raised by Rs 160 per quintal to Rs 4,020 per quintal for medium staple cotton and Rs 4,320 per quintal for long staple cotton. CCI and Nafed are the two agencies appointed by the government to extend the necessary marketing support to the cotton growers in selling their cotton produce at the most competitive prices in the various market yards in all cotton-growing states. These in turn appoint sub-agencies to procure cotton at the local level as well. Jain said that cotton prices are unlikely to touch MSP levels until December when arrivals increase. At present, arrivals have commenced in steady numbers to the tune of 25,000 to 30,000 bales a day. With India expecting cotton production of 400 lakh bales this season (October 2017 to September 2018), the Cotton Corporation of India should procure at least 100 lakh bales during the peak arrival months so that prices remain stable, said J Thulasidharan, president of Indian Cotton Federation. In a memorandum to the Prime Minister, Thulasidharan said that according to the International Cotton Advisory Committee, cotton production is expected to be 75 % in surplus during the current year globally. This is likely to impact prices, especially for farmers in the country. In India, most of the arrivals will be between November 2017 and February 2018. There might not be sufficient buyers in the market during this period and only those who have financial resources will buy cotton in bulk. There are possibilities of more exports too. In order to ensure that farmers get remunerative prices, CCI should step in and buy 100 lakh bales during the peak season, Thulasidharan had said recently. As per ministry of agriculture, cotton had been sown on 111.55 lakh hectares till July 28, as against 92.33 lakh hectares for the same time last year, indicating an increase of close to 21 % in the acreage.Maharashtra has registered kharif cotton sowing of over 38.47 lakh hectares, while in Gujarat the area stood at 25.84 lakh hectares.
Source: Financial Express
The AP state government is initiating a series of reforms using IT to bring in transparency in auctions, following a series of scandals that mired cotton purchases during 2014-15, To eliminate middlemen, the State government has introduced online trading in cotton. The eCrop booking data system, under which details of the farmers would be fed online and cross-checked at the time of trading. Minister for Civil Supplies Prathipati Pulla Rao urged farmers to sell the produce only through the Agricultural Market Committees. Also the farmers bringing the produce to the yards should get their pattadar passbooks and Aadhaar cards. Though the Cotton Corporation of India (CCI) facilitates trading and steps in when there is a fall in price, the farmers have always been at the mercy of the middlemen, who procure cotton bales at a lower price and sell them at a higher price. But the CCI is expected to play a major role this year as the average price of is hovering over ₹4,300 per quintal, which is equal to the minimum support price (MSP). The average price of high quality cotton at Khammam and Kurnool are also around ₹4,200 to ₹4,300 per quintal. Cotton arrivals have started picking up in the district with the farmers under the NSP right canal project bringing the produce at the market yards in the Palnadu region. Cotton is cultivated in 1.82 lakh hectares in the district and the yield is expected to reach 4.66 lakh tones. CCI branch manager Mohit Sharma said that the CCI personnel are in the market and they are ready to buy cotton at MSP. They are starting 43 procurement centres across A.P. While Pasam Rama Rao, party district unit president has urged the Centre to relax the procurement norms and buy cotton with a moisture content of up to 20 percent. The CP(M), however, has demanded that the MSP be fixed at ₹6,000.
Source: YarnsandFibers News Bureau
Winter is coming to smoggy, polluted Ludhiana, the centre for hosiery, garments, and textiles. OctoberFebruary is when business booms in this city. But if you ask traders and manufacturers, this time could be different. Business could be slower. That is because this winter will be the first one after demonetisation, and the goods and service tax (GST). Business Standard spoke to a number of people who form a vital part of the textile and hosiery supply chain. The industry, which has traditionally been cash-intensive, has taken a massive hit and demand is still not close to pre-demonetisation levels. There have been lay-offs, businesses are running at waferthin margins, there is a shortage of working capital, and businesses are downsizing. Industry voice Harinder Pal Singh sits in a glass cabin perched above his factory floor in an industrial area on the outskirts of the city. His company, Poonam Textiles, makes sweatshirts and t-shirts, which it sells to wholesalers, retailers, as well as through six self-branded stores. When I walked into his office, he was downloading from WhatsApp a newsclip featuring BJP leader Subramanian Swamy, on his iPad. Singh’s jovial demeanour turned serious when he was asked about the impact of demonetisation and the GST on the garments and textile business. “My turnover, in 2015-16, was around ~11 crore. In 2016-17, after demonetisation, it went down to around ~8 crore. We have recovered a little, but this winter may not be as good. For smaller businesses, it is even worse.” Singh has two stores in Ludhiana, one in Dehradun, and three in Delhi. “I am exiting the Delhi business. There is just no demand. All three stores will be shut down by the end of November. We wanted to expand our business to boost margins by cutting out the suppliers and middlemen. That is why we opened our own stores. After the note ban and GST, if you ask me if I would take that decision, I will say no. Expansion is impossible now,” he says. As we speak, a worker walks in from the factory floor. “Sir, koi kaam nahi hain (there is no work)”. “Koi gal nahi beta. Do din ruk jaa, naya order aa sakta hain (no worries, son. Wait a few days, we may get a new order),” Singh replies. He admits to me that for an industry dependent on cash, the note ban has hit hard. “See, a customer will pay usually for clothes or garments in cash. That cash goes up the chain from the retailer to the supplier/wholesaler to the manufacturer. When cash dries up, the supply chain gets crippled. The effects are still showing.” Singh maintains that even before demonetisation, most of his transactions were through cheques or online banking. But retailers and suppliers have no hesitation in admitting that because of heavy cash usage they used to maintain two books, one of which was for the taxman’s eyes. Of course, after admitting that, they seldom want to come on record. “In the past retailers would not always maintain proper records, or present bills. After the note ban and GST, the good thing is that has changed. People have had to get their GST numbers. But then there are the very small businesses, which don’t come under the GST. Not all of them have PAN numbers either. A number of them are out of work already since nobody wants to deal with them,” says a retailer. “October-February is also the wedding season. So far this year, the demand is just not picking up. The labour force here is migrants, from UP and Bihar. As such, there is a shortage. If sales remain muted, I may have to downsize,” the retailer said. Note ban at work According to industry sources, India’s garments industry is ~25,000-30,000 crore. Ten-fifteen per cent of that comes from woollen products, and 90 per cent of that is based out of Ludhiana. According to the latest data, dated 2011-12 and available on the website of the ministry of micro, small and medium enterprises, the MSME textile and apparel industry in Ludhiana district hires 106,000 people. Businesses say there have been job losses. But queries to multiple industry bodies have elicited no response to how many people were laid off exactly. In this flashy, wealthy city, where every second car is modified with after-market parts (you will even find humble Maruti Altos running on faux-chrome alloy wheels and fat tyres), people admit that there was a lot of unaccounted wealth. Harinder Singh says that in the initial days after Prime Minister Narendra Modi announced demonetisation on November 8, there was a glut of cash as people were placing orders and paying employees three-four months in advance. This is echoed by brothers Rajinder and Ashok Uppal, who run Punjab Metal Fabricators, which makes components for sewing machines. “There was so much cash. Even clients who never paid on time promptly paid in advance. But after that came the shortage as banks just could not distribute money in an organised manner. We don’t doubt the government’s intentions regarding the note ban and GST. Our problem lies with the very shoddy implementation,” said Rajinder Uppal. “Our business was 60-70 per cent through cheques or online banking and 20-30 per cent cash before the note ban. The cash component has reduced now. The biggest problem we now face is the lack of clarity regarding the GST. Sewing machines are in the 12 per cent bracket. But there is confusion regarding the components. Some say 12 per cent, some say 18 per cent. GST officials at the local level are not of much help. We have made representations even in Delhi, but not much has come of it,” says Ashok Uppal. He says that while some industries have bounced back, like sewing machine and bicycle components, the city’s biggest sector, textiles, will continue to suffer. The government should have had some gap between implementing the note ban and GST. They happened just eight months apart. The view is that before the businesses could fully recover from one, the other happened,” says Rajinder Uppal. The complaints Another problem, this one GST-specific, which businesses face is that chartered accountants and advocates, who understand the intricacies of the new, nationwide tax, are in short supply. Accountants are charging more, and that eats into the margins. “We have hired another person just to deal with GST issues. There are multiple filings to be done and we are still trying to understand the impact on our business,” said Parash Jain. His company Hem Knitwears, with a turnover of ~50 crore, supplies yarn to manufacturers across the country. “For us, it is a margin game. And since the note ban and GST, margins have been squeezed further. I understand why the GST was necessary but I am not so convinced about demonetisation. First, the government made a mistake by printing the ~2,000 note. I feel there are other ways to go after those with black money. The 75 per cent amnesty scheme could be done even without withdrawing notes from circulation,” Jain said. The Pradhan Mantri Garib Kalyan Yojana was launched by the Centre a month after demonetisation. It provided an opportunity to declare unaccounted wealth and black money in a confidential manner and avoid prosecution after paying a tax, surcharge, and penalty, which added up to 50 per cent on undisclosed income. An additional 25 per cent of the wealth will be invested by the government and will be refunded after four years, without any interest. There is certainly a growing murmur against the Centre. “The note ban and GST have made even die-hard supporters of Modi question the government’s abilities. I still believe his heart is in the right place,” says Harinder Singh. “However, I believe that had doctor sahib (former Prime Minister Manmohan Singh) ever implemented such schemes, he would have ensured that things went smoothly. He has the economic expertise and would have done things in a more intelligent manner.” “You require expertise to ensure people don’t suffer. Small businessmen come to Ludhiana from across North India to buy clothes. What about them? You can be a good person. But that does not mean I would allow you to do heart surgery just on that basis,” Singh says.
Source: Business Standard
Arvind Limited and Sutlej Textiles are among the investors that have evinced interest in debt-laden Alok Industries, according to sources familiar with the development. Alok has been admitted by the NCLT (National Company Law Tribunal) for insolvency proceedings after it was referred to the court by lenders. Apart from strategic investors, JM Financial ARC and Edelweiss ARC are also understood to have shown interest in Alok Industries. The Ahmedabad Bench of the NCLT had admitted Alok Industries for insolvency proceedings in July this year based on the petition by State Bank of India, which is trying to recover Rs 3,772 crore from the firm. Alok Industries had total debt of Rs 23,443 crore on its books as on March 2017. The company’s enterprise value stands at Rs 23,677 crore. As of September this year, the promoter shareholding in the firm stood at 28.82%, of which 20.75% was held by Alok Knit Exports. Emails sent to JM Financial ARC, Edelweiss ARC, Arvind and Sutlej Textiles seeking comments remained unanswered till the time of going to press. Ajay Joshi, who was appointed as the interim resolution professional for Alok Industries, was confirmed as the resolution professional of the company on August 16, 2017 by a requisite vote of the committee of creditors. Joshi refused to comment on the interest shown by the strategic investors. The company is listed on the BSE and the NSE. Shares of the company closed at Rs 4.41 on the BSE on Friday with market capitalisation of Rs 607.40 crore.
Source : Financial Express
Barring Private Equity Partners India has exited its portfolio company Vardhman Textiles at a time when private equity participation has continued to touch new highs in India. The domestic private equity firm had exited listed non-banking financial company Muthoot Finance, domestic consumer products giant Marico and Godrej Consumer Products in September. The development comes after the reported purchase, about a month back, of the entire stake of Marubeni Corporation and Marubeni Hong Kong and South China Limited by VMT Spinning Company, a subsidiary of Vardhman Textiles, one of the largest textile conglomerates in the country, according to a report in a leading Indian business daily. Private equity firms have invested $17.6 billion over the first nine months of 2017, more than the earlier high of $17.3 billion, recorded in calendar year 2015, according to Venture Intelligence, a leading source of information and analysis on private company financials and transactions. (DS)
Source : Fibre2Fashion
Tezpur: Arunachal chief minister Pema Khandu inaugurated the biggest textile unit of the state at Pasighat in East Siang district on Friday. Khandu inaugurated the apparel and garment unit operated by ELAM Industries, the largest textile industry in the state, employing over 100 people. He also visited the power loom and handloom unit, which is the state's first mechanised textile factory. The proprietor of the industry, Group Captain Mohonto Panging (retd) told The Telegraph: "I am very happy with the inauguration of ELAM Industries. Arunachal has officially joined the industries map of India." He said the apparel and garment unit can manufacture clothes at lower costs. It also operates the first mechanised textile factory (power loom/handloom) of the state. The industry now produces 1,000 shirts or 2,000 t-shirts every day, he added. "There are not many industries in the Northeast and in Arunachal in particular. Setting up of manufacturing industries in the Northeast will reduce this dependence on other states, provide employment to residents and contribute to development of the region. The central and state governments need to support local industries with preferential buying and pricing policies and incentives like freight subsidy and capital subsidy. The Northeast Industrial Investment Promotion Policy, which supported industries in the region and was suspended, needs to be revived," he said. Khandu said the state government was committed to promoting and supporting the growth of industries and was in the process of formulating an investor-friendly industrial policy, as the state has immense potential for industries. He termed the garment unit "Pride of Arunachal" and a pioneering step in the textile industry sector, given its scale. The industry will create immense employment opportunities for the artisans and youths of the state, he said. Panging was a fighter pilot and the first person from the Northeast to command a Sukhoi 30 squadron. He was also posted as Chief Operations Officer of Air Force Station Tezpur.
Source: Telegraph
NEW DELHI: This is a different type of silk route rivalry between the North East and neighbouring China. Incidentally, India is the second largest silk producer in the world after China but the difference is just huge. Alarmed at this rapid expansion of silk industry by China, the government is now making an effort to tap the potential of indigenous silk portfolios in the North East. With an investment close to Rs 700 crore, 24 projects in the North East, including two in Meghalaya, would help the government meet the national raw silk production target. China is producing close to 1 lakh tonne of mulberry silk every year. The new project aims at using the skills available in the North East and increasing its contribution of 21 per cent to the total silk produced in the country to 24 per cent by the end of this fiscal year. The broad objective of the scheme is to develop and modernise the textile sector in the North East Region by providing the required government support in terms of raw materials, seed banks, machinery, common facility centres, skill development, design and marketing support, among other things. The specific objectives of the scheme include an increase in the value of textile production, technology upgradation, improving design capability, diversification of product lines and value addition, better access to domestic and export markets, clusterisation and improvement in labour productivity, market access and promotion. The national raw silk production target for the year is 33,840 tonnes and our modest target is to contribute 7000 tonnes to it from the North East only, according to official sources. The total silk production in 2016-2107 was 30,348 tonne with 21,273 tonne of mulberry, 5,637 tonne of eri, 3,268 tonne of tussar and 170 tonnes of muga. Silk produced in the North East are a mixed bag of varieties like eri, muga, mulberry and tussar. With these new projects, the primary target is not just to increase the production bulk but also work on the quality and make the best use of the skill in the region. Down south raw material is produced at one place, weaving at one other and finishing and selling in some other but in the North East people farm cocoon in their backyards and do the weaving themselves. The scheme is being implemented under two broad categories: the Integrated Sericulture Development Project (ISDP) and the Intensive Bivoltine Sericulture Development Project [IBSDP] covering mulberry, eri and muga.
Source; The Shillong Times
Guwahati: Visitors are thronging a store in a city hotel for handwoven clothes and accessories coloured in natural dyes. Around 100 people from Mising, Adivasi, Nepali, Bodo, Nyishi, Garo, Assamese, Bengali and Rajbongshi communities are displaying stoles, bags, t-shirts, wristbands and tops, among others, at the Naturenomics store set up at Hotel Vivanta by Taj here. "Natural dyes are obtained from indigo, lac, onion, turmeric, xilikha, hazelwood and tea. The fabrics are eri, muga, tussar, mulberry silks and cotton," botanic trail guide Sangita Deka said. The clothes are sold at four stores - Naturenomics, Eastern Himalayas nursery, Bhelaghar and Wuya - at Balipara in Sonitpur district. "The aim is to teach people to depend on nature for economic development. It is also a bid to conserve the endemic diversity of Eastern Himalayas. We generate an annual revenue of Rs 7 lakh and the profit goes to the people of nine communities. Clothes are also exported to Kunming Institute of Botany in China," said Gautam Baruah, operations official at Eastern Himalayan Botanic Ark in Balipara. "The dyes are obtained without using machines. The xilikha dye acts as pesticide-repellent and is used in every cloth and accessory. It helps other dyes to stay on a particular fabric," he said. The Bhelaghar store has provision for ethnic food and beverages. People associated with the Wuya store have been teaching communities to make designer waistcoats and trousers and ways to imprint designs on traditional clothes. Two morsal trees, which have been marked as endangered by the Ayush ministry, are being conserved at the botanical arc.
Source: The Telegraph
Staging a good recovery, the rupee ended at a fresh six-week high of 64.55 a dollar, gaining by 6 paise on fresh selling of the American currency and also well—supported by favourable macro indicators. A spectacular record—breaking rally in local equities along with fresh dollar unwinding by exporters and some foreign banks largely aided the recovery momentum. This is the highest closing for the home currency since September 20, when it had ended at 64.27 against the dollar. Sluggish dollar sentiment overseas along with robust capital inflows also aided to the rupee rise. Foreign portfolio investors (FPIs) were net buyers in the cash market and bought shares worth a net ₹ 1,032.88 crore yesterday, as per provisional data from exchanges. At the Interbank Foreign Exchange (FOREX) market, the rupee resumed higher at 64.57 against Thursday’s closing value of 64.61 on fresh bouts of dollar selling. It later confined to a rather narrow trading range and swung between a high of 64.5250 and a low of 64.6350 due to uneven dollar demand and supply. The home unit finally settled at 64.55, showing a gain of 6 paise, or 0.09 %For the week, the Indian unit appreciated by solid 50 paise against the greenback. The RBI, meanwhile, fixed the reference rate for the dollar at 64.5764 and for the euro at 75.3348. On the macro support, services sector activity in India expanded for the second consecutive month in October, driven up by rising new orders - the fastest pace since June — amid positive demand conditions, says a monthly survey. Though forex market witnessed some volatile movements during the session in the face of risk event ahead of the US jobs data due later on Friday. Global crude prices traded above the key psychological USD 60—mark a barrel thanks to increased compliance with OPEC production cut. Meanwhile, Indian bourses charged to fresh record highs for the second—straight day powered by financial stocks and also driven by ongoing stellar earnings season amid highly buoyant global cues following the appointment of new US Federal Reserve chief. The BSE benchmark Sensex shot up by 112 points to end at 33,685.56, while broader Nifty jumped 29 points at 10,452.50. Globally, the dollar inched forward slightly against major trading rivals as investors wait for US jobs data to lift the currency out of its rut. The US currency was weighed down by news that President Donald Trump appointed Jerome Powell as the new head of the Federal Reserve. Powell is likely to follow a similar dovish monetary policy stance as his predecessor Janet Yellen. The dollar index, which measures the greenback’s value against a basket of six major currencies, was down at 94.44 in early trade. In cross-currency trades, the rupee rallied sharply against the pound sterling to end at 84.37 from 85.31 per pound and hardened against the Japanese yen to settle at 56.56 per 100 yens from 56.62 yesterday. The rupee also firmed up against the euro to close at 75.14 from 75.27 earlier. Elsewhere, pound sterling recovered sharply against the greenback on Friday after services activity report showed signs of economic revival. Sterling had plunged sharply overnight after Bank of England raised interest rates for the first time in a decade by a quarter of a percentage point to 0.5 per cent and signalling the start of a gradual increase in borrowing costs. In forward market , the premium for dollar weakened further due to sustained receiving from exporters. The benchmark six—month premium payable in April edged down to 137-139 paise from 139.50-140.50 paise and the far forward October 2018 contract also moved down to 276-278 paise from 279—281on Thursday. On the International energy front, global crude prices turned buoyant after a brief slide, supported by OPEC—led supply cuts as well as by strong demand. Brent futures, the international benchmark for oil prices, were at USD 60.86 per barrel in early Asian trade, up 24 cents, or 0.4 percent, from their last close. Brent has risen by 37 per cent since its low in 2017 reached last June. US West Texas Intermediate (WTI) crude was at USD 54.83 a barrel, up 29 cents, or 0.5 %
Source : Financial Express
The Union textiles minister Smriti Irani launches handloom brand 'Navibhu' with a view to tap the niche but expanding customer interest in the Indian handloom industry. Navibhu is the handloom brand of Myntra, India's leading platform for fashion and lifestyle. The initiative will boost the traditional handloom industry while supporting the weavers. "I wish Navibhu - a brand born with the richness of our culture and textile heritage - great success ahead. There is rapid growth in sales of niche India Handloom Brand products on e-commerce platforms which touched over Rs 260 crore within two years. Over 900 production units have registered under India Handloom Brand providing a sourcing base for new e-commerce players in the sector," said Irani adding that Myntra has also agreed to bear 25 per cent of the cost of education of handloom weavers and their ward through National Institute of Open Schooling and Indira Gandhi National Open University. The brand was unveiled at Myntra's 6th Annual Brand Summit - Tech Threads 2017. More than 200 delegates from leading domestic and international brands participated in the summit that deliberated on the role of e-commerce in shaping the growth of fashion in India. The event also served as a platform for Myntra to acknowledge its valued partners, recognise best performers, and announce new collaborations and customer-centric innovations. "As a front runner in the fashion industry, we are proud to be part of the government of India's initiative to preserve and rejuvenate our traditional handloom art forms. We continually strive to provide our customers and brand partners an enhanced customer experience. Our technology innovations, exclusive brand associations, omni-channel play as well as initiatives such as the brand accelerator programme have helped us maintain a steady growth rate of 50 per cent YOY and a leading market share of 40 per cent along with Jabong," Ananth Narayanan, chief executive officer, Myntra & Jabong, said. At the summit, Myntra also showcased how it is leveraging technology to fuel its next phase of growth with the launch of two breakthrough technology innovations -Rapid as a Service and Myntra Mirror. Myntra has been using Artificial Intelligence to power the design of its fastest growing, most profitable private labels, Moda Rapido and Here&Now and will now extend this technology to other brands and retailers through a software-as-a-service model. Myntra Mirror is an artificial intelligence-based service set to revolutionise the customer-brand interface. The technology engages with customers and provides feedback regarding the customer's 'look' based on style, fit, brand and seasonality. (RR)
Source : Fibre2Fashion
The US department of commerce has announced affirmative preliminary determinations in the countervailing duty (CVD) investigations, finding that exporters of fine denier polyester staple fibre (PSF) from the People’s Republic of China (China) and India received countervailable subsidies of 41.73 to 47.64 per cent and 7.18 to 9.86 per cent, respectively. The commerce department will instruct US customs and border protection to collect cash deposits from importers of fine denier polyester staple fabric from China and India based on these preliminary rates, secretary of commerce Wilbur Ross announced. The investigation is being carried out in response to petition made by DAK Americas LLC (NC), Nan Ya Plastics Corporation, America (SC), and Auriga Polymers Inc. (NC). Last year, the US imports of fine denier polyester staple fibre from China and India were valued at an estimated $79.4 million and $14.8 million, respectively.“Unless the final determinations are aligned with the concurrent anti-dumping (AD) investigations, the department of commerce is currently scheduled to announce its final CVD determinations on January 16, 2018,” a statement said. “If the commerce department makes affirmative final determinations of subsidisation and the US International Trade Commission (ITC) makes affirmative final injury determinations, the department will issue CVD orders. If the department makes negative final determinations of subsidisation or the ITC makes negative final determinations of injury, the investigations will be terminated, and no order will be issued,” it added. Meanwhile, in a separate announcement Kelley Drye & Warren LLP has announced the preliminary CVD rates by company. For fine denier PSF imports from China, the preliminary CVD rate will range from 41.73 per cent to 47.64 per cent. The lowest rate of 41.73 per cent would be applicable for import from Jiangyin Hailun Chemical Fiber Co. Ltd, while import from Jiangying Huahong Chemical Fiber Co. Ltd. would attract the highest slab of 47.64 per cent. CVD on imports from all other Chinese producers and exporters would be 44.69 per cent, US based Synthetic Yarn and Fabric Association said. Likewise, the CVD preliminary rate of Kelley Drye & Warren for fine denier PSF imports from India would be between 7.18 per cent and 9.86 per cent. While import from Bombay Dyeing & Mfg. Co. Ltd. would entail CVD of 7.18 per cent, CVD on import from Reliance Industries Limited would be 9.86 per cent. Import from all other Indian companies would attract 9.37 per cent CVD. (RKS)
Source: Fibre2fahion
FAISALABAD: Pakistan High Commissioner-Designate to Malaysia, Muhammad Nafees Zakaria, underlined the importance of reducing the trade deficit between the two countries, urging local businessmen to play their role in achieving the objective. Addressing members of the Faisalabad Chamber of Commerce and Industry (FCCI), he said that Malaysia may be a small country with a population of about 30 million, but 26 million tourists visit it every year, which creates a big enough market for Pakistani products. Shabbir Hussain Chawla, the FCCI president, said that the volume of bilateral trade is only $944.632 million and hugely in favour of Malaysia. Zakaria said efforts would be made to launch joint ventures as well as to promote people-to-people contact through a cultural centre to be set up in Malaysia. The envoy requested the FCCI to identify specific products of the textile chain that could find a market in the Southeast Asian country. “Malaysia is itself a small market but through it we could have access to a big market of ASEAN,” said Zakaria. He said that he has planned to organise an exhibition of Pakistani products in April next year in collaboration with the Lahore chamber. He further said that the Malaysian government has ratified an agricultural agreement that would help Pakistan export agricultural products. “Pakistan also has the potential to export fish and fish preparations but it is ironic that we have failed to tap this potential.” Regarding the exchange of trade delegations, he said that he could immediately arrange video conferences for Pakistani exporters so that they could negotiate and decide on joint ventures. He also assured that he would try to convince the Malaysian government to offer sufficient number of scholarships for Pakistani students. Meanwhile, Chawla said that Pakistan is importing different items, including palm oil, from Malaysia worth $792.886 million whereas its exports are only at $151.346 million. He also proposed single-country exhibitions and regular exchange of trade delegations.
Source: The Tribune
The U.S. Commerce Department, in preliminary determinations in countervailing duty investigations, found that exporters of fine denier polyester staple fiber from China and India received unfair countervailable subsidies, of between 41.73% and 47.64% in China, and 7.18% to 9.86% in India. The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fabric from China and India based on these preliminary rates. In the China investigation, Commerce has calculated preliminary subsidy rates of 41.73% for Jiangyin Hailun Chemical Fiber Co. Ltd. and 47.64% for Jiangyin Huahong Chemical Fiber Co. Ltd. Commerce has determined a rate of 44.695% for all other Chinese producers and exporters. In the India investigation, Commerce calculated has calculated preliminary subsidy rates of 7.18% for Bombay Dyeing & Mfg. Co. Ltd. and 9.86% for Reliance Industries Ltd. Commerce has determined a rate of 9.37% for all other Indian producers and exporters. Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies. The CVD law provides U.S. businesses and workers with a transparent, quasi-judicial and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the U.S., establishing an opportunity to compete on a level playing field. For the purpose of CVD investigations, a countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or the use of domestic goods over imported goods. In 2016, imports of fine denier polyester staple fiber from China and India were valued at an estimated $79.4 million and $14.8 million, respectively. The petitioners are DAK Americas LLC of Charlotte, North Carolina; Nan Ya Plastics Corp. America of Lake City, South Carolina, and Auriga Polymers Inc. of Spartanburg, North Carolina. Unless the final determinations are aligned with concurrent investigations, Commerce is scheduled to announce its final CVD determinations on Jan. 16.
If the department makes affirmative final determinations of subsidization and the U.S. International Trade Commission makes affirmative final injury determinations, Commerce will issue the CVD orders. If Commerce makes negative final determinations of subsidization or the ITC makes negative final determinations of injury, the investigations will be terminated and no order will be issued. The Commerce Department’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence. From Jan. 20 through Oct. 31, Commerce has initiated 77 anti-dumping and CVD investigations, a 60 percent increase over the previous year. Commerce currently maintains 411 AD and CVD duty orders that provide relief to American companies and industries impacted by unfair trade.
Source: Sourcing Journal Online
ICE cotton futures edged lower on Friday after hitting an over one-week high earlier in the session on strong technical resistance. Cotton contracts for December settled 0.36 cent, or 0.5 percent, lower at 68.72 cents per lb. It traded within a range of 68.35 and 69.37 cents a lb. The contract hit its highest since Oct. 25 earlier in the session and was up 0.7 percent for the week. However, it also registered its biggest one day percentage drop in over a week. "The 69.50 cent per lb level northward continues to look like a fine spot to take a short position," said Louis Rose, co-founder and director of research and analytics at Rose Commodity, in a note. "With support just north of 66.50 cents, if it is breached, especially with respect to a daily settlement, the next downside target for the December contract is around 65 cents." Meanwhile, speculators raised a bullish stance in cotton by 1,120 contracts to a four-week high of 50,042 contracts, Commodity Futures Trading Commission data showed. Total futures market volume fell by 8,981 to 31,135 lots. Data showed total open interest gained 485 to 235,040 contracts in the previous session. Certificated cotton stocks deliverable as of Nov. 2 totaled 27,995 480-lb bales, up from 26,759 in the previous session. The dollar index was up 0.2 percent. The Thomson Reuters CoreCommodity CRB Index , which tracks 19 commodities, was up 0.7 percent. (Reporting by Nithin Prasad in Bengaluru; Editing by Marguerita Choy)
Source: Reuters, The Times of India
Demand of second grade of cotton remained dominant during trading, spinners purchased the commodity for blending purpose at Rs 6,425 per maund while the leading buyers made forward deals for second grade of lint at around Rs 6,400 per maund to Rs 6,450 per maund. Buyers made sizeable deals for second grade of lint during trading session in Sindh and Punjab stations while physical prices remained steady. Buyers also made deals in all grades of cotton that kept market’s volumes moderate. Mills bought all grades of lint at around 6,200 per maund to Rs 6,225 per maund, during trading session at Punjab and Sindh stations. Sellers withholding better grades of lint remained in the driving seat as prices stood stable on demand during trading session. Paucity of better grades kept buyers selective while sellers kept maintaining their price level on the higher side amid shrinking of better grades at the ginneries. Private sector commercial exporters made deals at Rs 6,000 per maund to Rs 6,125 per maund. Buyers also made one month forward deals at around Rs 6,125 per maund to Rs 6,200 per maund. Around 3,600 cotton bales changed hands while ex-gin price per maund remained firm at Rs 6,300 per maund. In kerb market, trading took place in the range of Rs 6,000 per maund to Rs 6,225 per maund. Raw grades of lint changed hands at Rs 5,975 per maund depending on trash level during trading session.
Source: Yarns and Fibers
“I made this item you are going to buy, but I didn’t get paid for it,” reads a label inside a Zara garment. It was written by Turkish workers who say they were not paid for their labor when creating products for the brand. These factory workers were employed by a Bravo Tekstil complex in Istanbul, which has apparently closed overnight, according to the Associated Press. The employees claim that the manufacturer owes them three months of back pay plus severance. The Associated Press reached out to Inditex, which owns Zara, but it has not yet responded.ES
Source: Fast Company
Smart clothing shipments are projected to increase from just under 5 million in 2017 to over 31 million. This represents an incredible compound annual growth rate of 45%.Its fair to say, these types of garments have yet to reach mass market appeal and currently lag behind fitness trackers and smartwatches. But sensors embedded into your everyday wear are in a great position to understand the minute workings of your body. Best of all, these are items you would have worn anyway, only smarter. The latest market growth projections come from technology intelligence company ABI Research. Their figures reveal that smart clothing will have the second highest growth rate over the next five years behind hearables. Albeit, this is from a relatively low starting base. At the moment, this market mostly caters to sports professionals as smart garments offer more accurate readings than something that is sitting on your wrist. As costs come down, the technology will have a wider reach with both consumer and enterprise users. “The majority of smart clothing shipments will be primarily driven by consumer applications, with growing enterprise applications in worker safety and monitoring over the next few years,” adds Ryan Harbison, Research Analyst at ABI Research. Current generation sensors are either attached to apparel or embeded in the garment itself as demonstrated by products from Ralph Lauren, Sensoria, OMsignal, Hexoskin, Google, and Levi’s. In the next generation the garment itself will be the sensor. ABI Research expects it will not be too long before some of the larger tech players enter this space. But there are further issues that need to be ironed out before that happens. “Before smart clothing reaches mass adoption, the technology behind its embedded sensors needs to improve,” added Harbison. “The sensors have to withstand conditions that other wearables don’t, such as body sweat, wash cycles, and extreme temperature variances. Vendors will have to solve this through innovative manufacturing and do so before consumers voice these concerns.” It is safe to say, we can look forward to a not too distant future when having smart clothes in your wardrobe becomes the norm. Perhaps not five years from now, but one day this should make wrist worn fitness trackers obsolete.
Source: Gadgets and Wearables
The US National Council of Textile Organizations (NCTO) has praised the US Department of Commerce’s recent determination reaffirming China’s non-market economy status for anti-dumping purposes and called for even more aggressive enforcement to crack down on unfair trade practices. “The evidence could support no other decision,” said NCTO CEO Auggie Tantillo. NCTO is a Washington-based trade association that represents domestic textile manufacturers. “China has a set of unfair and extraordinary advantages that allow them to displace investment, production and employment in our market,” an NCTO press release quoted Tantillo as saying. As President Donald Trump will visit Japan, South Korea, China, Vietnam and the Philippines this November, NCTO urged him to use his Asia trip to reaffirm his commitment to enforcing US trade laws fairly and resolutely. U.S. employment in the textile supply chain was 565,000 in 2016. The value of shipments for US textiles and apparel was $74.4 billion last year, a nearly 11 per cent increase since 2009. US exports of fibre, textiles and apparel were $26.3 billion in 2016.
Source: Fibre2fashion
More than 200 local and foreign exhibitors are displaying the textile products at the ongoing Hanoi Textile and Garment Industry Expo (Hanoitex 2017). With Hanoi an important production base in Vietnam, the international expo is an excellent opportunity for textile and garment producers from various parts of the world to learn about latest technologies. Companies from around 15 countries including China, China, Germany, Japan, South Korea, Pakistan, Taiwan, and Thailand are participating at the three-day expo that will conclude today. Hanoitex 2017 will help to increase the local production while also improving the quality of products, said the Vietnam deputy minister of industry and trade Cao Quoc Hung. With favourable policies, lower wages and production cost in Hanoi compared to Hochiminh City, a large number of local and international textile and garment companies are investing in the country. "In order to implement its sustainable strategy by 2020, the sector has invested more in high-quality and environmentally friendly technologies," said the general director of the Vietnam National Textile Garment Group (Vinatex) Le Tien Truong. Hanoitex 2017 is being organised by the by CP Exhibition Hong Kong with the support of the ministry of industry and trade and the Vietnam textile and apparel association. Vietnam Textile & Garment Industry Expo is the biggest and the most important event in the textile and garment industry of Vietnam. It has taken place for more than 24 times in Ho Chi Minh City and Hanoi since the 1990s.
Source: Fibre2Fashion
