Raw materials have become costlier by two to five per cent over the past month for synthetic textile manufactures, due to a sharp increase in crude oil prices. Brent crude rose 15.2 per cent in a month to its current $64.12 a barrel for spot delivery. This followed developments in Saudi Arabia and a rise in US-North Korea geopolitical tension. Purified terephthalic acid (PTA) is a crude oil derivative and an input for polyester fibre. It was $692 a tonne on Tuesday, a rise of 4.5 per cent in November alone. MEG (mono-ethylene glycol) has become costlier by 2.8 per cent in November, to $928 a tonne on Tuesday. Other raw materials have also become costlier. “Prices of polyester staple fibre have risen by 10 per cent over the past two months to Rs 82 a kg, due to an increase in crude oil prices. China, a large producer for recycled polyester staple fibre produced from PET (polyethylene terephthalate) bottles, has stopped procurement of such bottles, resulting in a shortage of raw material for their fibre manufacturing plants. Hence, prices of recycled polyester staple fibre have gone up,” said S K Khandelia, president, Sutlej Textiles and Industries, largest manufacturer of coloured yarn in India. Companies in plastics are also impacted. Indo Rama Synthetics, this country's largest polyester-only manufacturer, had a net loss of Rs 17.7 crore in the September quarter, compared to a loss of Rs 14.7 crore for the same quarter a year before. “GST (goods and services tax) rates on some products were cut from 18 per cent to 12 per cent, which came as a relief for us. Raw material prices have jumped by two to five per cent, due to rising crude oil prices. We expect a further increase in prices of raw materials in the short term. But, with growing demand for polyester products, we were able to pass on the raw material price hike to consumers," said O P Lohia, chairman of Indo Rama.
Source: Business Standard
GURUGRAM: The ban on pet coke has come as a blow to the garment industry in the region at a time when they are already struggling with the implementation of GST. There are 700-800 export hubs in Gurgaon and around 4,00,000 people are employed with these manufacturing units. Another 200-300 such units are there in Manesar. These units send their fabrics and garments to mills that use pet coke, say industry experts. "While we cannot put a definite number on the loss of employment following the ban but it will be significant if an alternative to the pet coke isn't worked out soon," said HKL Maggu, vice president, apparel export promotion council. Maggu added that even though the processing will restart with the help of alternative fuel, the prices will increase significantly by Rs 4-5 per metre resulting in Rs 25-30 per garment. With already thin margins, this additional cost will come as a dampener for the industry as a whole. "This is the peak season for the industry and we have big orders to deliver. Due to the pet coke ban, things have come to a temporary halt which is bound to delay the orders. If the processing hubs or mills do not find an alternative by this week the delays are bound to cost us dearly," said Animesh Saxena, who runs an export house in Gurgaon and also heads Udyog Vihar industrial association. Industrialists further say that things would have been better if the ban was implemented in phases. "While we understand the Supreme Court's intent, the industry should have been given a time frame for its implementation which would have helped cut down losses," said Manmohan Gaind, member of Manesar industrial association. Gaind added that the combined effect of GST implementation, demonetisation and now the pet coke ban might make the manufacturing business an unattractive one.
Source: The Times of India
The looms that would work 24 hours have cut down two shifts. Fabric production is down to 25 million metres now. India’s polyester capital, Surat, is yet to bounce back a year after demonetisation, which led to more than five lakh job losses and an estimated 40% plunge in production. Most of the shops in the textile markets on the Surat Ring Road, which usually gear up for post-Diwali business rush for the forthcoming wedding season, remain closed. “There is no demand from any quarters – textiles have been almost erased from the consumers’ priority list, thanks to demonetisation and then GST (goods and services tax),” said Champalal Bothra, general secretary of Federation of Surat Textile Traders Association. The entire polyester value chain from yarn to the garment is under pressure. The withdrawal of high-value banknotes put sudden brakes on the disposable income of consumers, with grave consequences. Till a year ago Surat produced 40 million metres of synthetic fabric daily. More than 1.5 million workers were involved in the process of manufacturing yarns, grey fabric, dyeing, embroidery, packaging and allied services. Surat boasts 700,000 looms that make the grey fabric, bought by 65,000 traders spread across textile markets such as Radhakrishna Textile Market, New Textile Market, Surat Textile Market and several others on Surat Ring Road. The grey fabric would go to the 400 dyeing processing houses and get routed to embroidery units for embellishments for the final garment. Surat ushered in polyester revolution in the country through sheer volume game, offering sarees and dress material at Rs 125. Now, the city presents a sorry picture. The migrant workforce was sent packing to their respective states — Odisha, Maharashtra, Rajasthan, Bihar — and those who are still here, crave for work. Almost 400,000 women who would earn Rs 300-800 per day by working from homes —sewing, stitching or pasting diamonds and other embellishments on fabric — have no work. The looms that would work 24 hours have cut down two shifts. Fabric production is down to 25 million metres now. Rajashree Thakur, an embroidery unit owner on Varachha Road, told ET that 200 women in her unit are near idle since a year now.
Source: The Economic Times
Tiruppur fell short of its export target of Rs 30,000 crore last year, but that was not because of currency scarcity. India’s knitting hub, Tiruppur, has come a long way since demonetisation – mostly for the better. Companies are happy to transfer wages to bank accounts instead of having to handle currency worth tens of lakhs of rupees. And many workers have started getting provident fund payments since wages are being transferred to banks. However, many illiterate women workers are now forced to depend on their husbands for operating an ATM, surrendering their freedom to quietly buy a little toy or sweets for their children. Garment makers vividly recall the initial chaos after the sudden scarcity of cash following scrapping of Rs 500 and Rs 1,000 notes as legal tender, but looking back many of them view the change positively. “Earlier we had this cumbersome procedure of mobilising about Rs 40 lakh in cash every week to pay wages,” said D Arun, partner at Ahill Apparel, which employs 1,800 workers and clocks exports of about Rs 100 crore a year. “Though we had a tough time making workers open bank accounts, as many did not have proper documents, the cash payment has virtually stopped and everything is through bank now.’ Tiruppur accounts for exports of Rs 26,000 crore a year and has 1,100 garment making units, of which about 200 are large entities with thousands of workers. The majority are micro, small and medium enterprises (MSME) employing 400 workers on average. “Nearly 40% of the production activities were stalled for two months as we couldn’t ship the consignments,” said Raja M Shanmugham, president of Tiruppur Exporters’ Association. “But we were able to honour commitments by airlifting consignments in January and February, incurring heavy cost.” Tiruppur fell short of its export target of Rs 30,000 crore last year, but that was not because of currency scarcity. “We fell short not due to demonetisation but Brexit, which triggered an overnight collapse in the value of the pound,’’ Shanmugham said.
Source: The Economic Times
Digital payments have increased in the business hubs of Punjab, such as the hosiery and textiles nerve centre of Ludhiana and India’s biggest grain market at Khanna, in the year since demonetisation. The organised sector, which made purchases through legal channels, not only survived demonetisation but also gained from it. However, the smaller players, whose competitive edge came from tax evasion, have struggled to come to terms with the formal channels of transactions across businesses including textile, steel manufacturing and agricultural commodities. Textile and ginning industry has adopted digital payments. “Almost all companies have ensured opening of bank accounts of their workers,” said Mahesh Sharda, former president of Indian Cotton Association Limited. “Demonetisation killed the business for knitwear garments at a time when sales were supposed to peak. The hosiery market spread around 200 km of Ludhiana was the worst hit as it was dominated by cash transactions,” said Vinod Thapar, president, Knitwear and Textile Association. “It was the worst phase for the seasonal Rs 1,200 crore hosiery industry and the yearly sales were reduced to less than half.” Some businessmen said demonetisation worsened the labour shortage as migrant workers went home after manufacturing units took a hit. Within a week domestic sales fell 40%, Thapar said. “Taxes have taken the shine off exports while opening a bank account is a Herculean task, especially when most workers are migratory and have identification documents of other states,” he said.
Source: The Economic Times
Hyderabad: Chief Minister K Chandrasekhar Rao on Tuesday assured the members in the House that the government was keen on coming to the rescue of cotton farmers, who were affected badly due to the unexpected rains in the State recently. Intervening during the Question Hour in the Assembly on Tuesday, the Chief Minister said required steps had been initiated to procure cotton produce at a better price than the minimum support price (MSP). He was confident that the farmers would get better price for their cotton crop this year. He said cotton cultivation was taken up on 48 lakh acres but still only five percent of the crop had reached the markets. As a matter of fact, in certain places quality cotton was being purchased at higher rate than the minimum support price, he pointed out. Chandrashekar Rao asserted that the State government’s move to set up Farmers Coordination Committees was mainly intended to ensure that the farmers get minimum support price for their produce. The government’s endeavour was to ensure that the farmers would get remunerative prices by forming crop colonies. He also accused the Congress of resorting to burning crops in some places and alleged that the Congress’ hand was very much there in the destruction of Khammam Market Yard. He said payment of compensation for crop loss was not feasible as it involved heavy expenditure. Later, the Congress members walked out of the House in protest against what they termed ‘the government’s inaction’ in coming to the rescue of the farming community.
Source: The Hans India
The six-member advisory panel formed by the government for simplifying and rationalising the goods and services tax (GST) has received more than 700 representations on problems faced by industry over return filing, the e-way bill, input tax credit, and exports. The committee will now meet for the first time on Wednesday to take up these issues, ahead of the crucial GST Council meeting on Thursday in Guwahati. Some of its recommendations may be taken up by the Council. The panel includes representations from trade and industry. “The government is open to taking feedback from industry and rectifying the anomalies in the law. We are putting in efforts to make the GST industry-friendly and will be open to incorporating suggestions by the advisory panel,” said a government official. The final report of the group will be submitted on November 30 and discussed in the subsequent meeting of the Council. “If the panel comes to a conclusion on certain issues, we may like to meet the finance minister and give interim suggestions that may be taken up in the Council meeting on Friday,” said Praveen Khandelwal, secretary general of the Confederation of All India Traders and a member of the advisory committee.
Source : Business Standard
At an elevation of 3,000 feet above sea level, Hosur has a temperate climat that is the envy of the rest of Tamil Nadu. Right now, even on winter ev temperatures are running high in this industrial town, and climate change is not at fault. Blame it on th goods and services tax (GST). Since the Tamil Nadu finance minister is too busy with the survival of the state's sickly government to mee representatives of the Hosur Small and Tiny Industries Association, which comprises some 2,500 small units that together employ 85,000 me and women, its office-bearers had to come to Delhi to represent their case Their basic problem is the shock of seeing their tax burden go up from 17.5% combined excise duty and Value Added Tax to 28% GST. Their net tax burden goes up substantially .But this is not all. These are supplier to the region's large automobile man ufacturing businesses. The big buyers settle their payments typically af ter three months. This means that th small suppliers have to borrow money to pay the higher additional tax and bear the cost of interest on this for three months. Our banks prefer to lend to the Tatas and Birlas and leave small business as lunch for non-bank ing finance compa nies and money lend ers. SMEs borrow at rates ranging from 20% to 100%. GST in creases their borrowing and, thereby , interest costs to an extent that they fear would wipe out their margins altogether. They cannot show interest costs way out of line with bank rates, without inviting tax queries on their lenders and blocking off these lines of credit, the only ones they have. They want their tax rate to be brought down to 18%. And since they are input suppliers to automobile companies, the rate they are charged is immaterial for the government's final tax take: whatever they pay is set off as an input credit by the final auto assemblers and the rate consumers pay on automobiles decides the government's collection from the entire value added along the chain of supplies leading up to the fully assembled and retailed automobile. The 28% rate is an extortionate rate that should be reserved for a handful of goods, and not foisted on intermediate parts, only to generate business for the moneylender and drive small units out of business. The Hosur industrialists point to some other anomalies. They buy food from independent food outlets for their workers. These outlets now have to pay 18% GST and this is not eligible for an input tax credit. Industry can get over this problem by virtualising in-house canteens: the food procured to supply their workers can be tax-exempt, if for the period and to the extent of that supply , the food outlet is treated as a captive canteen.Taxmen must allow this. Industry also suffers from not being able to take credit for taxes paid on their factory premises: real estate would have to be brought into the ambit of GST. Some other suggestions: below a threshold for the supplier, collect GST as a tax deducted at source by the buyer -extend the so-called reverse tax ambit. This would take care of job work, say getting sheets of metal into strips of the desired size, getting entangled in tax and paperwork. Even if the government cannot do the sensible thing of unifying all rates at say, 14%, many of small industries' problems can be solved, with some empathy and imagination.
Source: Times of India
The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the new initiative of the ministries of textiles and power called Sustainable and Accelerated Adoption of efficient Textile technologies to Help small Industries (SAATHI). It feels the initiative may benefit 25 lakh powerloom units that produce 57 per cent of the total cloth in the country. Under this initiative announced on October 24, Energy Efficiency Services Limited (EESL), a public sector entity under the power ministry, will procure energy-efficient powerlooms, motors and Rapier kits in bulk and provide them to small and medium powerloom units at no upfront cost, according to a power ministry press release. The use of efficient equipment would result in energy savings and cost savings to the unit owner who would in turn repay in instalments to EESL over a four- to five-year period. There are 24.86 lakh powerloom units in India, most of which use obsolete technology. Texprocil chairman Ujwal Lahoti said that the provision to repay in instalments is a novel idea as it will not burden the small powerloom owners. The export of fabrics can be increased substantially if they are treated at par with garments and made-ups in terms of incentives, a Texprocil press statement quoted him as saying. He urged the government to explore extending the refund of state levies (ROSL) benefit of above 5 per cent to the fabric sector.
Source: Fibre2fashion
Mumbai: The rupee today plunged by 35 paise to end at a fresh one-week low of 65.03 a dollar owing to high demand for the American currency from importers amid political upheaval in Saudi Arabia. Forex market sentiment endured a near-term crisis as nervousness took centre-stage stemming from a sharp spike in crude prices to the highest level since July 2015 as an anti- corruption purge launched by of Saudi Arabia's crown prince stoked supply disruption fears. This is the biggest single day fall for the home currency since September 26. The latest developments in Saudi Arabia sparked a rally for the international oil benchmark to trade above the USD 64 -a-barrel mark -- a two-year high level. Global crude oil are showing strength and rising faster in the second-half of 2017 than it had previously expected after recovering from its sharp decline last year. Adding heaviness, the domestic bourses succumbed to a massive profit-taking and wiped out all their early strong gains on renewed worries about the inflation outlook and also renewed geopolitical uncertainty. The economy is just taking off after recent bad patch and geopolitics or a supply constraint set oil prices zooming, could derail the government's fiscal math, a forex dealer said. The flagship Sensex tanked 360 points to end at 33,370.76, while Nifty plunged nearly 102 points at 10,350.15. Meanwhile, the dollar is trading stronger across the board on growing expectations for an upcoming US rate hike even as investors continued to monitor progress on a US tax bill. Earlier, the rupee resumed higher at 64.65 as compared to Monday's close of 64.68 at the Interbank Foreign Exchange (FOREX) market on bouts of dollar selling by exporters. It gained further ground to touch a high of 64.6050 before retreating sharply in midst of strong dollar buying pressure. Breaking the key 64-level triggered panic dollar buying from corporates and importers in late afternoon deals, dragging down the local unit to hit an intra-day low of 65.07 before concluding at 65.03, showing a steep loss of 35 paise, or 0.54 per cent.
The Indian unit had depreciated 13 paise yesterday.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.8064 and for the euro at 75.2273. The dollar index, which measures the greenback's value against a basket of six major currencies, was sharply up at 95 in early trade. In cross-currency trades, the rupee dropped further against the pound sterling to end at 85.46 from 84.76 per pound and drifted against the Japanese yen to settle at 57 per 100 yens from 56.71 yesterday. The local currency also fell back against the euro to close at 75.17 from 74.99 earlier. Elsewhere, the pound sterling drifted sharply against the US dollar after a brief overnight sharp jump on rumours that the UK Prime Minister Theresa May is willing to accept Brexit bill of GBP53 billion as a financial compensation for leaving EU. The common currency, euro also slipped back after figures showing weak German industrial production dropped by 1.6 per cent over the month in September. In forward market today, premium for dollar displayed a mixed trend owing to lack of market moving factors. The benchmark six-month premium payable in April edged up to 137-139 paise from 136.50-138.50 paise, while the far forward October 2018 contract softened to 267.50-269.50 paise from 275.50-277.50 paise.
Source: Economic Times
Before November 8, 2016, says K S Ramdas, 48, the small stitching unit he has run next to the Old Bus Stand near Tirupur town for 20 years employed around 15 women workers and made an average of Rs 20,000-25,000 every week. Now, he and his wife, the only remaining workers at the unit, struggle to make Rs 2,000 in two weeks. He is not afraid to tell the authorities he can’t pay the Goods and Services Tax (GST) on the raw material he uses, Ramdas says. “There is nothing left after stitching, transportation, buying other materials and paying our loans.” Ramdas’s story is an illustrative snapshot of the Rs 42,000-crore Tirupur textile industry, sustained by 8,500 smallscale, medium and large firms, after the note ban, says Raja Shanmugham, president of the Tirupur Exporters’ Association. “I strongly believed that Prime Minister Narendra Modi had a serious plan (on demonetisation). We were ready to bear the pain. But at this moment, the industry here is literally being wiped out. Once you kill it, reviving it would be impossible,” says Shanmugham, adding that competitors in markets in the United States and the European Union had gained by 10%-11% in the past year. There were 1,500-odd units such as Ramdas’s near the Tirupur Old Bus Stand, working as ancillary units for larger merchants and traders, before the note ban. M Thangavel, an activist who has been working for weavers and garment workers for a decade, says fewer than 500 are still doing regular business; others are either shut or have been waiting for an order for several months now. Among the women workers Ramdas has laid off are his neighbours with children, who can’t travel too far for work. “Now big players badly affected by the demonetisation have stopped outsourcing (cloth) bundles for stitching works,” he says. Senthil Kumar says he has a mechanical engineering degree, but decided to try his hand at running a similar unit, in Avinashi near Tirupur, with his father’s retirement benefits. Then came demonetisation. Unable to pay wages, he shut his unit for three months. “Orders were delayed. Then workers refused to work without wages, but there was no currency to pay them,” Kumar says. Still, Kumar says, he thought that the pain would be brief, “that it was suffering for my country”. But in April 2017, when he tried to open the unit again, he realised that larger factories that outsourced to him had been affected, too. “Bundles stopped coming for stitching. Earlier I had 10 workers. Now I have only four workers. I try to pay them from my pocket even if there is no work, as their condition is worse than mine, and they were with me all along,” he says. “I lost around Rs 6 lakh. Now it’s almost certain that I am not going to get that cash back,” Kumar says. Thangavel says changed rules in banks too, have impacted workers and entrepreneurs. “I helped 15 workers apply for a loan of Rs 5 lakh each with government subsidies to start businesses. Ten of them got approval from Tamil Nadu Adi Dravidar Housing and Development Corporation Limited, but none got their loan amount. We can’t even meet bank managers unless we have a politician’s recommendation, or are rich people seeking huge loans.” Shanmugham says 70% of Tirupur industries belong to the micro- and small-scale category, and have not been able to bear the double blow of demonetisation and GST. No fewer than six lakh workers and their families are affected, he says. “I supported demonetisation. But the time has come to raise an alarm about the serious crisis here,” he says, adding, “We are businessmen; we have no other agenda or motives.”
Source: Indian Express
The Indian textiles ministry has formed eight committees to identify specific sectors in technical textiles that warrant formulation of standards, textiles secretary Anant Kumar Singh has said. A new mission for technical textiles will also be launched, Singh said inaugurating the third edition of the national conclave on standards on technical textiles. Standards are a must to accelerate the sector’s growth, Singh said. The tenure of the earlier mission on technical textiles is over. The eight committees will also include industry representatives, according to a report in a top business daily. The conclave was recently organised by the ministry of textiles, the Bureau of Indian Standards (BIS) and the Federation of Indian Chambers of Commerce and Industry (FICCI). The share of Indian technical textiles in the domestic and international textile market is quite low compared to those from developed countries, he added. (DS)
Source: Technical Textiles.
The Maharashtra government has decided to offer more tax sops to SEZs and co-developers of industrial areas in the State. The exemption on stamp duty and registration fee in such areas has been extended from 10 to 25 years.
On the total cost of land, stamp duty is 5 per cent and registration fee is one per cent.
Cabinet decision
On Tuesday, the State Cabinet decided to extend the tenure of exemptions by 15 years in an attempt to give more impetus to the industrial development in the State. A press statement issued by the Chief Minister’s Office said the Maharashtra government brought out an SEZ Policy in 2001 but only in 2007 it was decided to grant exemptions on stamp duty and registration fee for 10 years. The exemption will lapse this year and, therefore, the term of the exemptions has been extended.
It will benefit large multi-product SEZ projects, such as the Multi-Modal International Passenger and Hub Airport (MIHAN), Nagpur. The MIHAN project is being developed by Maharashtra Airport Development Company Ltd, which is a State government concern.
Marketing hurdles
A senior official at MADC said the task of acquiring land for the SEZ and equipping that land with infrastructure facilities had taken over 10 years, which hampered the marketing activities of the SEZ. Now with an additional incentive of stamp duty and registration fee, MADC hopes that more companies will set up their units at MIHAN. The developers in such areas can get extended benefits on their first transactions but if the land is resold then the benefits will stop, the official said. PTI adds: Maharashtra is looking at revamping its funding model so that bankers funding such projects will be covered by government, a senior State official said. “Maharashtra is considering indemnifying bankers who fund infrastructure projects. This will form part of the agreement that they sign with the developers,” State PWD Principal Secretary Ashish Kumar Singh told a panel discussion at the Ficci-organised national banking summit here. Noting that a lot of infrastructure projects are funded by the NBFCs with a short-term view, Singh underlined the need for long-term funding. The official did not elaborate as the plan is yet to be approved by the State Cabinet.
Capex spree
The State is on capex spree with Mumbai alone having over Rs. ₹1 trillion investments in metro lines (seven under way) and a new international airport worth ₹18,000 crore (being developed by the GVK Group that also runs the city airport along with Cidco). That apart, the government is also working on the over ₹18,000-crore Mumbai-Trans-Harbour Link that will connect the eastern periphery of the city with JNPT and Panvel, and a ₹15,000-crore coastal road project on the western waterfront, among others. The State is also planning an elevated fast line on the local train line between CST and Panvel.
Source: Business Line
BJP president Amit Shah late Tuesday night held talks with a group of textile traders over a dinner meeting at a farm house in the city. Textile traders in the city have been protesting the imposition of GST on their previously untaxed business. Shah’s meeting with textile traders came a day before Congress vice-president Rahul Gandhi’s visit to the city on Wednesday — on the first anniversary of demonetisation — when he is scheduled to meet the protesting cloth merchants, powerloom owners and workers, besides diamond traders. Coincidentally, a section of textile traders has received an invitation to meet Union Textiles Minister Smriti Irani in New Delhi to “discuss issues”. On Tuesday night, BJP president Amit Shah, after a meeting with party leaders at Sanjiv Kumar Auditorium, drove straight to the farm house to meet members of the Federation of Surat Textile Traders Association. Following the meeting, a BJP source said, Shah listened to the issues raised by the traders and assured to find a solution. The BJP has intensified its efforts to placate the textile trading community after Rahul, while concluding his Navsarjan Yatra in south Gujarat with a rally in Varachha here on November 3, had announced that he would again visit the city on November 8, the first anniversary of demonetisation, to observe “Black Day” and meet those involved in the textile and the diamond businesses. A day after Rahul promised to visit Surat again, Praveen Khandelwal, GST committee official from Delhi, visited the city on November 4 to meet members of the Federation of Art Silk Weaving Association, powerloom sector, textile traders and a few others. Khandelwal’s visit was described as one “to get information on the issues faced by the people in the industry.” On the same day, Khandelwal also invited the textile trade bodies to come to Delhi and meet Union Textile Minister Smriti Irani on November 8. Some trade bodies have accepted the invitation. Among them are Federation of Indian Art Silk Weaving Industry Association (FIASWI), Pandesara Powerloom Association and Textile Velvet Association. FISWAI chairman Bharat Gandhi said, “We have got oral invitation from Praveen Khandelwal and we will go to Delhi to meet Union Minister Smriti Irani at 9.30 am on Wednesday. We will raise the issues faced by the industry faces, hoping that some solution may come out.” On the other hand, Federation of Surat Textile traders Association president Manoj Agrawal pointed out that Irani had refused to meet textile traders during her last visit to Surat as well as in Delhi. Agrawal said, “We have not received a written invitation from the Union minister. Earlier when the agitation was on, our GST Sangharsh Samithi (which has been leading the textile traders protest against GST) tried to meet her and even our team was in Delhi, but she denied to meet and our team members left from her door steps. The textile traders usually vote for the BJP, despite this, our issues are not being looked into. The Congress leader is coming directly to meet us at our door steps, so some of the traders and presidents of different textile markets agreed to give their market place for the meeting.” There are over 165 textile trading markets in the city where over 65,000 traders conduct business. The daily turnover is around Rs 130 crore. Meanwhile, Congress leaders in the city claimed they have been facing problems in arranging venues for Rahul’s interaction with different sections of the textile industry in Surat. According to the party leaders, members of dyeing, printing, powerloom units and embroidery association have refused to host interactions with Rahul on their premises. Party leaders said that Rahul, who will arrive in Surat at 10 am, will drive straight to Nirman Industrial estate at Ved road, where he will meet powerloom unit owners and workers. He will later visit Shree Sai Dyeing and Printing factory on AK Road, accompanied by a few mill owners and labourers. He will also visit three textile embroidery units in Khodiyar Nagar for “an interaction with owners and labourers,” a Congress leader said. An owner of a dyeing facility said, “We do not want to be seen as hosting Rahul Gandhi. Even if we give our space for a meeting or meet him, we may have to face dire consequences from the state government machinery. However, places where Rahul Gandhi will visit also have been kept top secret except meeting with traders of different association at Sanjiv Kumar Auditorium.” The Congress has kept secret the venue for meeting with diamond traders in Varachha.
Source: Indian Express
The Swiss textile innovator HeiQ has announced the launch of HeiQ No Fuzz – a new range of products to increase abrasion resistance of fabrics and reduce the level of fuzzing and pilling – at Performance Days, which takes place in Munich this week. “Anti-pilling” is not a new terminology to the textiles industry. However, many conventional treatment technologies give a negative mechanical handle impact that leads to reduced fabric comfort, the company explains. “Improved visual perception at the cost of worse mechanical perception is the conventional approach to the problem of abrasion-related damage on textiles. HeiQ No Fuzz is based on novel adhesive polymer structures that give targeted, localised and non-homogeneous “bridging” reinforcement inside yarns and/or on the outer surface of yarns,” the manufacturer reports. Like tree roots protecting soil from erosion, the novel HeiQ polymer structures adhere to and reinforce the fabric yarns, reducing the tendency to pill and fuzz, keeping the appearance of the textile surface looking newer for longer, while minimising handle impact.
Fuzzing and pilling
While pilling is a historic challenge in the textile, apparel and home textile industries, the problem of abrasion-related damage extends beyond unsightly appearance and reduced comfort. Fabrics that rapidly form visible defects (like pills, fuzz, holes) can have lower perceived quality, reduced wearer confidence and negatively affect a consumer’s sense of brand image. “Abrasion of textiles during use and laundry can lead to loss of fibres that ultimately have potential to contribute to ocean microplastic pollution. Increasing the abrasion resistance and reducing the pilling and fuzzing tendency of yarns means fibres are less likely to be released into water during laundry,” commented HeiQ’s co-founder and Chief Science Officer Dr Murray Height.
HeiQ No Fuzz family
The HeiQ No Fuzz family consists of various products that can be used in combination, tailored to the characteristics of different fabric and yarn structures to achieve an optimal balance between improving the physical resilience of the fabric and minimising negative impact on desirable handle and comfort properties. Fabrics treated with this technology have been evaluated through Martindale and Pillbox tests and achieved exceptional efficiency initially and after washing (performance up to 50 washings), according to the manufacturer. HeiQ’s Textile Market Knowledge Center surveyed 469 US consumers in April this year. The majority of surveyed consumers were aware of pilling problems on textile products with 84% of these respondents relating they would “prefer that these pilling balls didn’t exist”.
Source: Innovationa Textiles
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1353.91 |
USD/Ton |
0% |
11/7/2017 |
|
VSF |
2261.55 |
USD/Ton |
-0.66% |
11/7/2017 |
|
ASF |
2653.55 |
USD/Ton |
0% |
11/7/2017 |
|
Polyester POY |
1341.10 |
USD/Ton |
0% |
11/7/2017 |
|
Nylon FDY |
3543.10 |
USD/Ton |
0% |
11/7/2017 |
|
40D Spandex |
5955.42 |
USD/Ton |
0% |
11/7/2017 |
|
Polyester DTY |
1681.09 |
USD/Ton |
2.29% |
11/7/2017 |
|
Nylon POY |
3708.94 |
USD/Ton |
0% |
11/7/2017 |
|
Acrylic Top 3D |
5699.11 |
USD/Ton |
0% |
11/7/2017 |
|
Polyester FDY |
1583.09 |
USD/Ton |
0.48% |
11/7/2017 |
|
Nylon DTY |
3332.02 |
USD/Ton |
0% |
11/7/2017 |
|
Viscose Long Filament |
2789.25 |
USD/Ton |
0% |
11/7/2017 |
|
30S Spun Rayon Yarn |
2940.02 |
USD/Ton |
0% |
11/7/2017 |
|
32S Polyester Yarn |
2035.40 |
USD/Ton |
0% |
11/7/2017 |
|
45S T/C Yarn |
2879.71 |
USD/Ton |
-0.16% |
11/7/2017 |
|
40S Rayon Yarn |
2201.24 |
USD/Ton |
1.39% |
11/7/2017 |
|
T/R Yarn 65/35 32S |
2442.47 |
USD/Ton |
0% |
11/7/2017 |
|
45S Polyester Yarn |
3090.79 |
USD/Ton |
0% |
11/7/2017 |
|
T/C Yarn 65/35 32S |
2457.55 |
USD/Ton |
0% |
11/7/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
11/7/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
11/7/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
11/7/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
11/7/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
11/7/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15077 USD dtd. 7/11/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
US garment-textile and footwear businesses are seeking their own investment opportunities in Vietnam as their country has withdrawn from the Trans-Pacific Partnership (TPP) earlier this year. In late October, the American Apparel & Footwear Association (AAFA) and the American Chamber of Commerce in Vietnam (AmCham Vietnam) held a series of activities in Ho Chi Minh City, including an international workshop on product safety and compliance issues. In the first eight months of 2017, Vietnam exported over 30.16 billion USD worth of goods to the US, making up 1.99 percent of the US’s total import turnover. However, during the eight-month period, Vietnam paid over 2.2 billion USD in taxes, ranking second out of the 15 countries paying the highest import taxes to the US. According to Nate Herman, Senior Vice President of AAFA Supply Chain, Vietnam continued to surpass rivals in export growth to the US in spite of receiving no benefits from any trade preferential programmes or free trade agreements. The Southeast Asian country’s garment-textile and footwear exports to the US are likely to increase in the coming time, even without TPP, he evaluated. He noted that the US’s imports of Vietnam’s garment-textile and footwear grew by 8.74 percent and 11.83 percent respectively over the past 12 months and Vietnam was the second biggest exporter to the market, after China. US retailers and consumers recognised Vietnam’s strengths of quality, prices and delivery commitments, he said, adding that this is the reason why the AAFA and US businesses want to arrive in Vietnam. Earlier, the National Cotton Council of America (CCI) coordinated with the Vietnam Textile & Apparel Association to organise the Cotton Day 2017 and granted investment licenses to 12 businesses operating in Vietnam and using the US cotton. The event aims to connect Vietnamese garment-textile enterprises with the US partners, suppliers and experts. Ryan Cabrera Tuazon, regional director of the US HanesBrands group, said after 10 years of operating in Vietnam, its total investment has stood at around 55 million USD with three factories in the central province of Thua Thien-Hue and the northern province of Hung Yen. Vietnam is defined as a production destination for HanesBrands in the Southeast Asian region, he said, adding that the factory in Hue is equipped with the latest technologies and manufacturing equipment. Jon Fee, a senior adviser of Alston & Bird LLP, said without TPP there are other opportunities for the garment-textile and footwear producers in Vietnam such as the Regional Comprehensive Economic Partnership (RCEP), the EU-Vietnam Free Trade Agreement (EVFTA), the “One Belt One Road” initiative, and the “Two corridors and one economic belt” of Vietnam-China strategic cooperation. Experts said Vietnam’s exports to the US will face difficulties in the coming time due to the US’s tighter regulations on product safety to reduce trade deficit. Nevertheless, US garment-textile and footwear companies still have opportunities in Vietnam, they said, warning firms to pay due attention to product safety and compliance matters.
Source: VietNamNet.
China's economic growth will reach 6.8 percent year-on-year in 2017, thanks to the strong economic momentum witnessed in the first six months of the year, rebound in exports and a favorable external environment, a new report said. The report, published by the Investment Strategy Group, a research unit of Goldman Sachs, said the country's gross domestic product is on track to clock the first uptick since 2010 in 2017. "This would be the first, albeit modest, acceleration in annual growth since 2010," said Wang Shengzu, co-head of the ISG. The recent growth stabilization has led to a notable rise in overseas investment in domestic fixed income products, the report said. Overseas investment in negotiable certificate of deposits, a financial instrument trading in the interbank market, rose to $12 billion in August, said Wang. Stronger growth momentum also helped reverse foreign exchange outflows to net inflows in August, the first such reversal in nearly three years, according to data from Goldman Sachs' Global Investment Research Division. According to ISG estimates, the general government fiscal balance stood at－2.3 percent of GDP in the first three quarters, the largest January-to-September deficit in the past decade, suggesting a very proactive fiscal policy while the monetary policy stance remained largely neutral. The country's GDP growth continued to show resilience in the first three quarters at 6.9 percent. Final consumption accounted for 64.5 percent of the headline growth or 4.4 percentage points, with the rest coming from investment and net exports, according to the National Bureau of Statistics. "We think structural reforms, supply-side policies and more market-friendly initiatives are needed to support China's rebalancing," said Wang. "After the 19th National Congress of the Communist Party of China, reforms in some areas are expected to accelerate in the near term, such as State-owned enterprise reforms and financial market liberalization," he said. "From the risk management perspective, deleveraging and strengthening financial regulation to contain systemic risks remain key focus of the government," Wang added. China has made progress in rebalancing away from external-led growth and more service-denominated economy, while the core challenge remains an excessive reliance on debt, Zhang Longmei, International Monetary Fund's deputy resident representative in China, said at a forum hosted by International Monetary Institute of Renmin University of China. Some key tasks in the near term include the reduction of financial sector agility and resumption of the transition to a flexible currency exchange rate, she said. The Goldman Sachs report also forecast an accelerating global growth to a midpoint of 3.0 percent this year from 2.6 percent in 2016. But one of the potential concerns would be a disruptive trade policy by the United States. Wei Benhua, an academic with the International Monetary Institute of Renmin University of China and former executive director for China at the IMF, said that the trade protectionism policies of the US would add uncertainties to the global economy, harm Sino-US trade ties and weaken cross-border trades in other regions.
Source: China Daily.
A seminar on the prospect of Vietnamese garment exports in 2018 held in Ho Chi Minh City on November 3 where participants at the seminar proposed measures such as fully exploiting the domestic market of more than 90 million people, and maintaining and developing key markets such as the US, EU, Japan, and the Republic of Korea, as well as other markets like ASEAN, Eurasian Economic Union, India, and Latin America. Also other proper policies should be devised to attract foreign investment in fibre production, weaving, and dying, and mobilizing sources to develop smart garment and textile plants. Speakers at the seminar said that in addition to advantages and potential, the added value of the garment industry is not high because domestic businesses mainly do outwork for foreign firms. Its weakest point is an undeveloped supply chain, resulting in a lower added value compared to other countries around the world. Pham Xuan Hong, chairman of the HCM City Association of Garment Textile Embroidery-Knitting (Agtek), pointed out the challenges for the industry in the near future, including greater competition from regional countries like China, Myanmar, and Cambodia. To overcome barriers and sharpen competitive capacity, Mr. Hong said that domestic businesses must improve workers’ skills and renovate management methods to optimize production and improve efficiency. He forecast that the garment sector will thrive next year if strategies are implemented effectively to put the industry on the right track. Particularly, businesses are researching new trading methods, which will help create more added value. However, the Government and other relevant ministries and departments to iron out the snags and increase added values of export garment products have gradually removed hurdles and issued policies to develop the support industry, contributing to the development of the supply chain in the garment sector.
Source: YarnsandFibers
The government of Egypt has invited three Brazlian enterprises from textile industry. Textiles maker Fiama, yarn maker Círculo and elastic band manufacturer Damenny to see Egyptian-made raw materials, action backed on the Brazilian side by the Arab Brazilian Chamber of Commerce and the Consulate of Egypt in São Paulo. The event will take place during Destination Africa, a textile industry show slated for November 11 and 12 at the Nile Ritz Carlton Hotel in Cairo, the capital of Egypt. The expo will feature 100 companies from 15 African countries and over 300 international buyers, according to its website. Egypt’s commercial consul to São Paulo Mohamed Elkhatib said that Egypt has invited lots of buyers from several countries, including Brazil, since their main focus is on big countries that import large amounts of textiles and clothing items. Brazil is a key partner for Egypt, and they will work on having more Brazilian companies in upcoming editions of Destination Africa. Personnel from the Brazilian companies will travel alongside the Arab Chamber’s International Business executive Fernanda Baltazar. At the expo, they will be able to see product by all exhibitors. They’ll also sit down for business discussions with Egyptian executives in prescheduled meetings, as well as make technical visits and engage in cultural activities. Exhibitors in Destination Africa will include major Egyptian textile industry players such as Elkotb Textiles, which specializes in products including warp knitting items, sports clothing fabric, lingerie and Velcro; and Spinalex, one of the national industry leaders, which makes Egyptian and American yarn for export. In addition to products and services, Destination Africa will feature a conference on November 12. The Arab Chamber’s Fernanda Baltazar will assist the Brazilian executives in their activities in Egypt. According to the Foreign Trade Secretariat (Secex) of the Brazilian Ministry of Industry, Foreign Trade and Services, Egypt is a major cotton-producing country, and the quality of its cotton and cotton products is world-renowned. Through September this year, 1,300 tons of Egyptian cotton and yarn were imported to Brazil, with sales amounting to USD 6 million, In September, a Mercosur-Egypt free-trade agreement entered into force that covers cotton and textiles. In the wake of this event, especially as the Egypt-Mercosur free trade treaty becomes effective, it is believed to be a good chance for increase in imports of cotton, fabric, textiles, clothing and bedding items to Brazil from Egypt.
Source: YarnsandFibers
The Shandong Ruyi Technology Group (Ruyi) of China recently announced plans to open its first North American factory in Forrest City, Arkansas. The new unit will create 800 jobs, and Ruyi will invest $410 million to renovate a former Sanyo manufacturing centre in the city. It plans to spin more than 200,000 tonnes of Arkansas cotton annually into yarn. The textilegiant is scheduled to open in mid-2018. Arkansas is the fifth-largest cotton producing US state. Ruyi is likely to absorb almost all the cotton produced by Arkansas annually, according to a reportby the Bureau of International Information Programs of the US Department of State. Mike Preston, director of the Arkansas Economic Development Commission, says Ruyi’s decision means “the largest single job-creation announcement in the history of the Arkansas Delta” region. Forrest City’s East Arkansas Community College will help train new factory hires. Ruyiwill, therefore, have an initial workforce as well as a long-term source of skilled workers, says Kay Brockwell, the city’s economic development consultant. Ruyi is the third company from China’s Shandong province after Sun Paper and Pet Won Pet Products to announce plans to locate operations in Arkansas. (DS)
Source: Fibre2Fashion
As of November 7, 2017, 168,570 tons of cotton were harvested in Azerbaijan, which is 3.3 times more than in the same period of 2016, the Azerbaijani State Statistics Committee said in a message on November 7. During the period, the biggest volume of cotton was harvested in Azerbaijan’s Saatli District. In total, cotton has been sown on an area of 136,410 hectares this year, which is 2.7 times more than in 2016.
Source: Trend, Azer News
Farmers in Isle of Wight and other areas are harvesting their cotton crop before there's too much rain. Tara Bozick Isle of Wight area farmers are expecting a much better cotton crop than last year as they work fast to harvest the fiber from the field before rain can interrupt their work. “You just want to see white fluffy bolls out there,” said Rex Alphin of Sunset View Farm in Isle of Wight. “It’s the culmination of what we’ve been looking for all year. This is what we live for and work for — getting that crop in.” Virginia cotton production is projected to grow 90 percent to 190,000 bales this year after ill-timed long rains stemming from the remnants of Hurricane Matthew last year, according to the Virginia Department of Agriculture and Consumer Services. Statewide, producers are expected to harvest 83,000 acres, which is 11,000 more acres than in 2016. Virginia is projecting 432 more pounds per acre than last year with a yield forecast averaging 1,099 pounds per acre, according to VDACS. Last year, Virginia had a yield of 667 pounds per acre and a yield of 827 pounds per acre in 2015. Famers pick their cotton in Isle of Wight County, Va. Projections are for 432 more pounds per acre than last year. - (Joe Fudge) But 2017 won’t be a record year, as 2014 had average yields of 1,239 pounds per acre in Virginia, according to state data. The number of acres to be harvested this year is also on par with acreage in 2012, 2014 and 2015. The quality of the local cotton is good, but the prices could be better, said Johnny Parker, cotton agronomist with Commonwealth Gin in Windsor. Cotton was 68 cents per pound Monday, and the larger U.S. supply means lower prices. Cecil Byrum of Byrum Family Farms in Windsor said cotton needs both rainfall and sunshine for growth, but last year, the rain came right as the cotton was opening. “Rain is not good for cotton when cotton is ready to harvest,” Byrum said. Farmers also dealt with eight days of rain in early October this year but this year’s harvest will still be a “gin buster” because of the volume of cotton coming out of the fields, Byrum said. Cotton fields in Isle of Wight Co. before and after the fields were picked. Nov.3rd., 2017 (Joe Fudge / Daily Press) The weather was great for growing conditions this year, said Gail Moody Milteer, the VDACS southeast regional marketing representative. She said cotton demand is on par with recent years. “The boll count is high and as you ride by the fields, everyone is noticing how big and fluffy the bolls look,” Milteer said. Cotton Plains Farm, run by the Barlow family in Suffolk on the Isle of Wight County line, is experiencing higher yields than last year but Shelley Barlow said 2013 and 2014 were even better. “We had some really good picking conditions this year,” Barlow said.
Source: Daily Press
During trading session at lint market in Sindh and Punjab stations demand for better grades of lint remained in focus keeping physical prices firm while buyers purchased all grades of cotton that kept market’s bottom line prices firm. Buyers made sizeable deals for second grade of lint and also forward deals for second grade of lint at around Rs 6,425 per maund to Rs 6,450 per maund. Buyers also made one month forward deals at around Rs 6,225 per maund to Rs 6,250 per maund. Demand of second grade of cotton remained on higher side during trading sessions and mills and spinners purchased the commodity to reinforce their long standings. Secondary buyers purchased all grades of lint at around Rs 6,150 per maund to Rs 6,175 per maund during trading session at Punjab and Sindh stations. Sellers withholding better grades of lint in anticipation of less arrival of better grades in next coming sessions offered commodity on slightly higher price at around Rs 6,525 per maund during trading session. Paucity of better grades kept buyers selective while sellers kept maintaining their price level on higher side on shrinking of better grades at the ginneries. Private sector commercial exporters made deals at Rs 6,000 per maund to Rs 6,100 per maund. During the trading session, raw grades of lint also changed hands at Rs 5,975 per maund depending on trash level. Around 3,000 cotton bales changed hands while ex-gin price per maund remained firm at Rs 6,400 per maund. In kerb market trading took place in a range of Rs 6,000 per maund to Rs 6,200 per maund.
Source: YarnsandFibers
