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MARKET WATCH 09 NOV, 2017

NATIONAL

INTERNATIONAL

Smriti Irani hints at relief to textiles sector in GST Council meet

She said the Centre had been holding discussions with the textile companies and associations to take their feedback over irritants associated with GST. Amid the teething troubles experienced by the domestic textiles sector over the Goods and Services Tax (GST), Union Textiles Minister Smriti Irani today said these aspects would be discussed at the next GST Council meeting. She said tax compliance had clocked significant growth post GST and the various textiles associations had also expressed their willingness to comply with norms under the new tax regime. "The myth that the Indian textile companies were unwilling for tax compliance under GST has now been dispelled," she told the media at the Uttar Pradesh BJP headquarters here this evening. She said the Centre had been holding discussions with the textile companies and associations to take their feedback over irritants associated with GST. "We are committed to proactively engaging with the textiles sector and their problems would be put before the next GST Council meeting for redress, she stressed adding a few recent steps had provided succour to the sector. Irani underlined the textiles sector generated most employment opportunities in the country after agriculture and the Centre was fully aware of the importance of the domestic handloom and handicraft industry, as well as the interest of small weavers. However, she sought to corner the opposition parties over their criticism of GST saying the GST Council had the representation of all the state governments and all the decisions were collective and taken through coordination. Referring to demonetisation, Irani said it was a historic and definite step towards transparency, economic strength and raising India’s global standing. She narrated various fiscal and economic data to buttress her argument regarding the purported benefits of demonetisation, including higher tax returns, lower cash holdings, detection of dubious transactions, closure of shell companies etc. Irani maintained the popular perception of Prime Minister Narendra Modi standing up against corruption and black money was still strong and that the counter-narrative of the opposition to berate demonetisation had failed to convince people. Meanwhile, she exuded confidence BJP was on course to winning elections in the poll bound states of Gujarat and Himachal Pradesh. Taking swipe at Congress vice president Rahul Gandhi, Irani observed the party had deferred its much publicised decision to crown him Congress president after realising that it was going to lose the coming state elections as well. Irani and Rahul had fought the 2014 Lok Sabha poll from Amethi parliamentary constituency. Although, Rahul went on to win, but his victory margin fell significantly.

Source: Business Standard

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India's textile market to touch USD 250 billion in 2 years: Study

The study observed that textile and apparel sector is the second largest employment provider in the country and employed nearly 51 million people directly and 68 million people indirectly in 2015-16. India's textiles sector is likely to touch USD 250 billion in the next two years from the current level of USD 150 billion, a study said today. The joint study by Assocham and Resurgent pointed out that the textile sector in India accounts for 10 per cent of the country's manufacturing production, 5 per cent of its GDP, and 13 per cent of exports earnings. The study observed that textile and apparel sector is the second largest employment provider in the country and employed nearly 51 million people directly and 68 million people indirectly in 2015-16. However, it said that demonetisation and the transition to GST have hit smaller players hard. "The number of workers affected due to closure of cotton and man-made fibre textile units (bigger units that comprise the non-SSI segment of the industry) during 2016-17 was 4,356 on account of the closure of 18 units, according to official Textile Ministry data on non-SSI units," said the study. "During the previous two years, the numbers were 7,938 workers affected by the closure of 27 units in 2015-16 and 5,384 workers affected from the closure of 21 units in 2014- 15, taking the cumulative figure to over 17,600 workers impacted by the closure of 67 units in the last three years" it said. It found that the rollout of the Goods and Services Tax (GST) has further hit small and medium players in textile hubs such as Surat, Bhiwadi and Ichalkaranji. Moreover, capital goods firms are struggling as most of the downstream sectors are saddled with excess capacity and low demand. Releasing the study, Minister of State for Textiles Ajay Tamta said the textile and handicrafts sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country.

Source: The Economic Times

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City textile traders meet Irani in Delhi

Surat: A group of textile traders along with some legal experts held a meeting with union Textile minister Smriti Irani on Wednesday at her residence to make presentation on Goods and Service Tax (GST) issues faced by them. Hemant Desai, a VAT consultant and member of the group that met Irani for two hours, said that issues like tax credit, which traders got till 2017, was discussed at length. Similarly, issue of GST on interest of delayed payment was also discussed. "On both these issues, minister was convinced and she has promised that she would send a note to GST Council," said Desai. The third issue discussed was that of keeping widows and women involve in textile job work out of GST net. Another issue was that of providing accumulated credit to textile industry. However, the most important issue discussed was that of amnesty scheme. Delegation demanded amnesty scheme and asked traders to register now and count its effect from July 1. "That way majority of the traders who have not been able to register would be able to do so," Desai said

Source: The Times of India

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GST Council to look at 5% rate on job work for all sectors

Exporters are hopeful that the Goods and Services Tax (GST) Council will decide in favour of bringing about a uniform rate of GST on job work for all sectors and pare it down to either 5 per cent or nil. “The GST rate on job work for the textile and chemicals sector is 5 per cent while for all others it is 18 per cent. This leads to a lot of classification disputes. We hope it will be sorted out in the GST Council meeting this week,” said Ajay Sahai, Director-General, FIEO. The GST Council, headed by Finance Minister Arun Jaitley, is scheduled to meet in Guwahati on November 10 to discuss lingering problems faced by businesses. Job work basically is adding value to raw materials or semi-processed goods supplied by the principal manufacturer. It could include processes such as sorting, washing, welding, spinning, dyeing and tanning. Different rates of GST on job work have created confusion as manufacturers were struggling to get their items classified into categories which attracted lower GST. “Already classification disputes are taking place on whether a process is chemical or non-chemical as the rates for the two processes differ,” Sahai said. He added that the government was anyway not getting any tax in case of job work as it is just a movement of credit from supplier to job worker or reverse. Single GST rate will help towards classification dispute. While a solution to the problem would be to bring down GST on job work to 5 per cent for all sectors, many textile organisations are demanding a zero per cent rate. According to the Karnataka Small Scale Industries Association, most of the job workers were illiterate and it would be very difficult for them to handle the paper work involved. The GST Council is also expected to discuss the possibility of bringing down rates on some labour intensive sectors including leather and handicrafts.

Source: Business Line

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Only 62 items likely to stay in 28% GST slab

Those planning to buy new furniture or refit electric switches might have to pay less after Friday, as the GST (goods and services tax) Council is likely to slash the indirect tax rates on these items at its meeting in Guwahati. At present, these attract 28 per cent tax. As many as 165 such items could be moved to the 18 per cent category, with only 62 attracting the highest rate. Those retained in the highest category could include digital cameras, shaving creams, paints and varnishes, cigars, pan masala, chocolates, cosmetics, vacuum cleaners, refrigerators, washing machines, hair conditioning items, hair dyes, and marble and granite. Some common items might also have their rates slashed from 18 per cent to 12 per cent, as demanded by states such as West Bengal.

GST

At the Friday meeting, the Council will also have a presentation about the inclusion of real estate under the new indirect tax regime. Reducing the compliance burden on taxpayers would be a part of the exhaustive agenda. If these suggestions of the “rate-fitment committee” are accepted, it would be the biggest rejig of rates since the GST roll-out on July 1 this year. Many common goods, which make up 75 per cent of the highest GST slab, will become cheaper. “This will be a big relief for consumers and industry. It is to be seen if all states accept it,” said a government official on condition of anonymity. Over 1,200 products and services were fitted into one of the four tax slabs — 5, 12, 18, and 28 per cent — before the roll-out. A state government official said there would be some discussion on trimming of items in the 28 per cent slab. “Some rules need to be formulated on rate reduction. It can’t be done by the fitment committee alone. There needs to be some basis for that,” said the official. Finance Minister Arun Jaitley had said at an event on Tuesday that some of the items should never have been in the 28 per cent slab. The GST Council in the last three or four meetings has reduced rates on over 100 items, bringing them down either from 28 per cent to 18 per cent or from 18 per cent to 12 per cent. A finance ministry official said initially items that had attracted 12.5 per cent central excise and 14.5 per cent value-added tax (VAT) were “mechanically” put in the 28 per cent slab.

Real estate: Conceptual discussion

A presentation will be made on the inclusion of real estate in the GST. The approval of states is key as stamp duty and registration fees on property are the exclusive domain of states according to law and will need an amendment in the Indian constitution. The Indian Stamp Duty Act, 1899, empowers states to collect and impose stamp duty. These vary across states, currently in the range of 3-10 per cent. “The discussion on real estate will be at a very conceptual stage. Pros and cons will be discussed. After all, states will need to surrender their power to tax, even though revenue may not be a big concern,” said another government official. Jaitley had said at Harvard University last month that bringing real estate under the GST will be taken up in the Council at its Guwahati meeting. “The one sector in India where maximum amount of tax evasion and cash generation takes place and which is still outside the GST is real estate. Some of the states have been pressing for it. I believe that there is a strong case to bring real estate into the GST,” he had said. “Some states want; some do not. There are two views. Therefore, by discussion, we would try to reach one view,” Jaitley had said in the US.

Breather likely on complaince

The Council might also allow quarterly return filing for all taxpayers, with monthly tax payment. This was suggested in a report prepared by the group of ministers (GoM), led by Assam Finance Minister Himanta Biswa Sarma. In its last meeting, the Council had allowed quarterly return filing and tax payment for those with an annual turnover of up to Rs 1.5 crore. “Keeping in mind the matching of returns, why not allow quarterly return filing for all taxpayers? If not all, at least for those with annual turnover of Rs 5 crore or Rs 10 crore should be allowed easier compliance through quarterly filing,” said the official. Besides, the composition scheme that allows a flat rate of tax and easier compliance may be eased further. The Council may increase the threshold for eligibility to Rs 1.5-2-crore annual turnover, from Rs 1 crore at the moment. This will require an amendment in the law. “Amendment in the law will be needed, as the Act currently provides for a limit of Rs 1 crore for the composition scheme. We will not do it through an ordinance, but by amendment, which may take about two months,” said another official. A flat 1 per cent rate for manufacturers and restaurants will be considered, against the current 2 per cent and 5 per cent, respectively. For traders, a lower rate of 0.5 per cent in the case of a cumulative turnover of exempted and non-exempted goods and 1 per cent for non-exempted goods may be allowed. Allowing inter-state sale under the composition scheme will also be taken up. Additionally, a reduction in late filing fees to Rs 50 per day, against Rs 200 at present, may also be considered. For traders, the report recommended a lower rate of 0.5 per cent in the case of a cumulative turnover of exempted and non-exempted goods, and 1 per cent for non-exempted goods. Confederation of All India Traders has also been pitching for a reduction of items in the 28 per cent tax slab. In a letter to the finance minister, it has said that items related to construction and infrastructure such as cement, builders hardware, plywood, electrical fittings, marbles, beauty cosmetics, nutraceuticals, vitamin, mineral and protein should be kept out of 28 per cent.

Source: Business Standard

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Arvind climbs over 4% on value-buying

Shares of Arvind climbed over 4 per cent on Thursday on value buying, after falling 9 per cent in the previous session as the company has demerged its branded apparel and engineering businesses into separate companies and plans to list them on stock exchanges through a National Company Law Tribunal-driven process. The branded apparel business will be demerged into Arvind Fashions and the engineering business will be spun off into Anveshan and then renamed Anup Engineering. Following a positive open at Rs. 419.50 against the previous close of Rs. 413.50, the stock touched an intraday high of Rs. 430.85 and a low of Rs. 419.50 on the BSE. In terms of equity volume, 2.27 lakh shares exchanged hands on the BSE. Meanwhile, the company had on Wednesday reported 14 per cent fall in September quarter net profit at ₹62 crore (₹71 crore) largely due to lower demand post implementation of GST. Revenues during the quarter under review were up 13 per cent at ₹2,628 crore. Jayesh Shah, Chief Financial Officer, had said the September quarter turned out to be another challenging quarter with GST implementation impacting domestic textile business.

Source : Business Line

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Arvind to demerge apparel, engineering

Arvind Ltd., India’s leading textile and branded apparel major player, has announced its decision to demerge its branded apparel and engineering businesses from the parent company. Post demerger, the branded apparel business will be called Arvind Fashions Ltd. and the engineering business would be named Anup Engineering Ltd. Shareholders of Arvind Limited will be entitled to one equity share of Arvind Fashions for every five shares held by them and to one equity share of Anup Engineering Ltd. for 27 shares held. On completion of the process, both companies will be listed on the BSE and NSE.

Diverse businesses

Sanjay Lalbhai, chairman and managing director of Arvind Ltd., said: “In the last few years, Arvind has nurtured a diverse set of businesses. Two years ago, we demerged Arvind Smart Spaces as an independent company, and its performance has exceeded expectations.” “Arvind Fashions and Anup Engineering will now also pursue their independent courses. Arvind Fashions has already demonstrated an industry-leading track record in the branded apparel and accessory space. Anup has demonstrated an impeccable trajectory on customer delight, topline growth and profitability. Financial independence will help unlock the full potential of these businesses.” He said the demerger would enable the company to focus on its core textiles business. The company would invest ₹1,500 crore in the next three to four years to transform the textile business. “This focus will not only enable us to grow at an accelerated pace, but also drive better return on investments and build a business model that is future-ready,” he added. Soon after the announcement, the company’s stock faced selling pressure and closed with a loss of 9.11% at ₹413.50 on the BSE.

Source: The Hindu

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Arvind signs MoU with Guj to set up a mega apparel park

Arvind Limited, one of India’s largest integrated textile and apparel major has signed an MoU with the Gujarat government to set up a mega apparel park with an investment of Rs 300-crore in Dahegam in Ahmedabad district. The MoU was signed after the state government announced its garments and apparel policy, 2017. The MoU was signed in presence of Chief Minister Vijay Rupani and Arvind Limiteds Executive Directors--Kulin Lalbhai and Punit Lalbhai. The government’s policy envisages achieving textile-to-garment value chain of 5 Fs -- farm, fibre, fabric, fashion, and foreign markets, said the release. The "mega apparel facility" will be a "first-of-its-kind" which will employ more than 10,000 people. The park is expected to commence commercial production in the fourth quarter of 2018-19 financial year and will produce over 24 million garments once it is fully operational. Arvind plans to commence commercial production in the fourth quarter of 2018 and they plan to create 10,000 jobs, a majority of which will be women. Kulin Lalbhai said that they are excited to support the Gujarat Apparel Policy which aims to create 1 lakh jobs in the state.

Source: YarnsandFibers

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India, EU to take another shot at reviving FTA talks

Prince Charles arriving at Air Force Station Palam in New Delhi on Wednesday India and the European Union (EU) will be making another attempt to set in motion the stalled negotiations for a Free Trade Agreement on November 14-15 during a stock-taking meet on state-of-play in the discussions even as a formal round of talks remains elusive. The meeting will take place here and it will be held between India’s Chief Trade Negotiator Anup Wadhawan from the Ministry of Commerce and Industry and Helena König from EU, who will be “identifying the difficult areas that require hard bargain as well as the low hanging fruits that can be achieved easily”, diplomatic sources told Business Line. A meeting of the negotiators was decided during the 14th India-EU Summit that was held here last month. During the summit-level meeting between Prime Minister Narendra Modi and Donald Tusk, President of the European Council, and Jean Claude Juncker, President of the European Commission, it was decided that before finalising a date for a formal round of talks, the chief negotiators should take stock of where things are at present, sources said. The last round of talks was held in 2013. However, since then a series of informal talks have taken place but all of them failed to kick-start the talks from where they were left.

‘India flexible’

According to sources, while India seems to be ready to pick up talks, it is insistent on obtaining the coveted status of a ‘data-secure’ country that will enable free flow of data between India and EU. Apparently, India is now ready to pick up the negotiations from A file picture of Prime Minister Narendra  Modi meeting Donald Franciszek Tusk, President of the European Council and Jean-Claude Juncker, President of the European Commission last month where they were left in 2013 contrary to what it said initially that the talks will have to start afresh, according to another official, who is involved in the talks. In fact, the official added, India is even ready to show “flexibility” in some of the old demands of the EU on lowering tariffs in automobiles and wines and spirits. But in return, it would bargain for the data adequacy issue. “The ‘data secure’ status will not only allow us to ring-fence some of the issues the country isfacing in terms of domestic cyber security laws, it will also augment the government’s entire ‘Digital India’ campaign. But this can become a very difficult bargain. It has become a big issue for India,” said Biswajit Dhar, Professor, Jawaharlal Nehru University. The Modi government is now keen to launch the talks in an effort to attract investments from Germany and France and also get more market access in services trade for Indian professionals. Besides, this will also boost the government’s flagship campaign ‘Make in India.’ India can find more innovative ways like pushing for services embedded in manufacturing, said Bipul Chatterjee, Executive Director, CUTS International. “This is a new issue that is currently under discussion among various countries. India can try pushing for it if it wants gains out of the EU FTA,” he said.

Source: Financial Express

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Global Crude oil price of Indian Basket was US$ 62.83 per bbl on 07.11.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 62.83 per barrel (bbl) on 07.11.2017. This was higher than the price of US$ 61.57 per bbl on previous publishing day of 06.11.2017.

In rupee terms, the price of Indian Basket increased to Rs. 4071.49 per bbl on 07.11.2017 as compared to Rs. 3984.94 per bbl on 06.11.2017. Rupee closed weaker at Rs. 64.81 per US$ on 07.11.2017 as compared to 64.73 per US$ on 06.11.2017. The table below gives details in this regard:

Particulars

Unit

Price on November 7, 2017 (Previous trading day i.e. 06.11.2017)

Crude Oil (Indian Basket)

($/bbl)

   62.83                         (61.57)

(Rs/bbl)

  4071.49                   (3984.94)

Exchange Rate

(Rs/$)

   64.81                         (64.73)

 

Source: PIB

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Note ban, GST have broken textile hub Surat's legs: Rahul Gandhi

Lashing out at the Centre, Congress vice president Rahul Gandhi said note ban and GST rollout have broken the legs of Surat as he observed a "black day" in the country's textile and diamond hub. Gandhi interacted with industry representatives and workers at Nirman Industries' loom factory in Katargam industrial development area after he arrived in the Surat city of the poll-bound Gujarat. “There was an attack on India's economy one year back," he said. "I interacted with the people here and they told me that notebandi (demonetisation) and then GST have broken Surat's legs. The industry has been finished by the twin blows not only here, "The people said that they have been threatened. But truth cannot be suppressed, it will come out," the Congress leader told reporters. He said, "Surat is the place which can compete with China and has been doing it. Jobs will either come to India or China. But instead of helping them, the government has destroyed their strength." Hitting out at the new tax regime rolled out by the NDA government on July 1 this year, Gandhi said, "We had told (Prime Minister) Narendra Modiji and (Union Finance Minister) Arun Jaitleyji not to implement the GST in this way." He said, "This is not a political thing, this is not between the Congress and the BJP. This is about India's competitiveness, we have to compete with China. You please do not kill our industries and businesses. But they said that we are going to implement it at 12 midnight," he said. "You press (media) people were asking us, why we are not allowing GST to be implemented, because we wanted to save Surat and the country," he said. "GST means one nation, one tax. But this GST, implemented by Modiji, which has five layers will not work. We had said that maximum cap on taxes should be 18 per cent but they did not listen to us," the Congress leader said. Gandhi is expected to have a formal interaction with traders in Adajan area of the city this evening. He is also likely to participate in a candle light vigil, to mark the "black day", near Vivekanand statue in Chowk Bazar area of Surat. The prime minister had announced demonetisation of Rs 1,000 and Rs 500 notes as a measure to fight black money, corruption, fake currency and terror funding on this day last year. The opposition is observed a "black day".

Source: Money Control

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Global Textile Raw Material Price 2017-11-08

 

Item

Price

Unit

Fluctuation

Date

PSF

1353.38

USD/Ton

0%

11/8/2017

VSF

2245.58

USD/Ton

-0.67%

11/8/2017

ASF

2652.50

USD/Ton

0%

11/8/2017

Polyester POY

1351.87

USD/Ton

0.84%

11/8/2017

Nylon FDY

3541.69

USD/Ton

0%

11/8/2017

40D Spandex

5953.05

USD/Ton

0%

11/8/2017

Polyester DTY

3707.47

USD/Ton

0%

11/8/2017

Nylon POY

5696.84

USD/Ton

0%

11/8/2017

Acrylic Top 3D

1582.46

USD/Ton

0%

11/8/2017

Polyester FDY

3330.69

USD/Ton

0%

11/8/2017

Nylon DTY

2788.14

USD/Ton

0%

11/8/2017

Viscose Long Filament

1680.42

USD/Ton

0%

11/8/2017

30S Spun Rayon Yarn

2938.85

USD/Ton

0%

11/8/2017

32S Polyester Yarn

2060.21

USD/Ton

1.26%

11/8/2017

45S T/C Yarn

2878.56

USD/Ton

0%

11/8/2017

40S Rayon Yarn

2200.37

USD/Ton

0%

11/8/2017

T/R Yarn 65/35 32S

2441.50

USD/Ton

0%

11/8/2017

45S Polyester Yarn

3089.56

USD/Ton

0%

11/8/2017

T/C Yarn 65/35 32S

2456.57

USD/Ton

0%

11/8/2017

10S Denim Fabric

1.41

USD/Meter

0%

11/8/2017

32S Twill Fabric

0.87

USD/Meter

0%

11/8/2017

40S Combed Poplin

1.21

USD/Meter

0%

11/8/2017

30S Rayon Fabric

0.67

USD/Meter

-0.22%

11/8/2017

45S T/C Fabric

0.72

USD/Meter

0%

11/8/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15071 USD dtd. 8/11/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Pakistan : FBR examines impact of import tax incentives on exports

KARACHI: The Federal Board of Revenue (FBR) is scrutinising tax exemptions granted on textile machinery import and their subsequent impact on exports and industrial expansion to spot any misuse of facility, sources said on Tuesday. The sources said the government granted massive concessions and tax exemptions on textile machinery and raw material imports for the past several years, but preliminary studies revealed that such facilities didn’t reflect in local manufacturing or exports. The data released by Pakistan Bureau of Statistics showed that machinery import grew 20.6 percent to $556.83 million in the fiscal 2016/17. However, textile exports remained stagnant year-on-year at $12.45 billion in the last fiscal year. The exemptions and concessions granted to textile sector for balancing, modernisation and replacement and under statutory regulatory authority 1125(I)/2011 amounted to Rs50.5 billion in 2016/17 as against Rs45 billion in the fiscal 2015/16, the Economic Survey of Pakistan document said. Interestingly, the FBR allowed Rs55.5 billion exemptions and concession in the fiscal 2014/15 when imports of textile machinery fell 25.06 percent to $449.3 million. Sources said FBR is compiling machinery import data of the past five years. They said tax offices detected few cases in which registered taxpayers imported machinery but they didn’t install it at manufacturing facility and despite that they claimed benefits. “There are chances of machinery imports on mere invoices and no physical transactions have been done,” a FBR official said on condition of anonymity. The official said FBR team also observed that imports of finished textile products substantially increased despite tax incentives. Imports of worn cloth and other textile products increased 10 percent to $1.42 billion in 2016/17. Industry officials said high production and exports depend on cost of doing business, and since cost is high, production is low. All Pakistan Textile Mills Association (Aptma), in a letter to the government, said high cost of gas and electricity is making Pakistan’s exports uncompetitive in the global market. Aptma said gas and electricity tariffs are around 30 percent higher in Pakistan than regional competitors, like Bangladesh, India and Vietnam. The association advised the government to take immediate steps to expeditiously settle payment of outstanding sales tax and other refunds to address the liquidity issue and check large-scale influx of imported yarn and fabrics in the country to save the domestic industry. The textile body said the country has already entered in an era of de-industrialisation as industries are closing. “In 2005, the share of manufacturing sector in GDP was 19 percent, which has now fallen to 13 percent.” Aptma said around 140 textile mills shut down their operation and resultantly one million workers have lost their jobs. Another 75 to 80 mills are on the verge of closure, which would add to the unemployment by another 0.5 million in the textile industry, it added.

Source: Geo News Pakistan

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Pakistan : Kurai asks businessmen to export textile items to Japan

Pakistani textiles articles should be exported to Japan in order to reduce the import-export deficit, stated Takashi Kurai, Ambassador of Japan to Pakistan, at a public talk held at the Institute of Strategic Studies on Tuesday. Pointing towards import-export gap between bilateral trade, the ambassador urged that Pakistani textile items should be exported to Japan. Security, infrastructure and business environment are the key factors to grow the bilateral trade, he added. Talking about the China-Pakistan Economic Project (CPEC), he said that Japanese are not against it and they have always appreciated the initiative. However, he was of the view that they believe whatever project is carried out should be based on transparency, openness and accountability. Japan has made it clear that they may be open to help in furthering the project, he added. He said, "Japan-Pakistan relations are embedded in business, aid, politics and security. The hospitality and humanitarian values of people of Pakistan have served to clear the prevailing misperceptions about Pakistan." Takashi Kurai said that Japan assigns high value to its bilateral relations with Pakistan since the nature of their cooperation is multidimensional. He discussed the bilateral relations at length and pointed out that Japan has helped Pakistan in the areas of humanitarian assistance, social security and infrastructure development. He said, "Of these projects, Indus Highway is the flagship project which connects Peshawar to Karachi, stretches across 1200km, being carried out with the assistance of Japan. It will be completed in June 2018." Speaking about Official Development Assistance (ODA), he remarked that the ODA does matter but the security situation is more important. He appreciated the improving security and the overall economic situation of the country and Pakistan's efforts and sacrifices in the war on terror. Earlier, in his welcoming marks, Chairman ISSI Khalid Mahmood said that Pakistan-Japan relations have their deep roots in the ancient Civilization of Gandhara. He briefly touched upon the history of the bilateral relations which began with the ratification of the San Francisco Treaty. Pakistan, he said, supported Japan during many international forums. Earlier, Pakistan was the largest exporter of textile items to Japan, while Japan was the largest exporter of machinery and vehicles to Pakistan. He said that President Ayub's visit to Japan was historic as the Emperor himself welcomed him on his arrival. It, indeed, was a rare event in the history of the Pak-Japan diplomatic relations. He also pointed out Tokyo's changing nuclear policy and cited the Indo-Japan nuclear cooperation for the peaceful purposes and emphasized that any discriminatory approach would be unjust and Pakistan should not be made an exception in this regard. He also clarified that Kashmir is not a bilateral issue, but a question of self-determination of the Kashmiri people, that has been reflected time and again in the UN resolutions.

Source: Business Recorder

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PCGA urges govt to reject proposal of cotton imports

Multan : Chairman Pakistan Cotton Ginners Association (PCGA) Muhammad Akram urged the government not to import cotton as farmers have 30 to 35 per cent stock with them. The PCGA rejected proposal of import of cotton till complete purchase of cotton from local farmers. The local farmers had enough stock of cotton. Talking to APP, he said that farmers were getting handsome return against cotton. The cotton was being purchased Rs 3,100 to 3,400 per maund from farmers. Similarly, the prices of “Banola” was also good in the markete. The PCGA Chairman observed that 12 million bales production was likely during the on-going season. He hoped that pending cotton stocks would reach ginneries by end of November or beginning of December.—APP

Source: Pakistan Observer

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Turkmenistan : Turkmen needs systematic approach for effective cotton harvest

Cotton is a significant export product of Turkmenistan and is a demanded raw material for dozens of modern companies of the country's dynamically developing textile industry. Turkmen President Gurbanguly Berdimuhamedov hence stressed the need for a systematic approach to executing tasks to ensure effectiveness of cotton harvest speaking during at a video conference on state of affairs regarding cotton harvest in Turkmenistan. At the video conference, information was provided to the Turkmen president on the measures taken to harvest the remaining cotton without losses. As per reports, Turkmen farmers fulfilled contractual obligations by harvesting over 1.05 million tons of cotton by late October. Ashgabat will host the 7th International Trade Fair of Cotton Products and International Conference “Cotton products of Turkmenistan and World Market” on November 25-26. The event will be held with participation of the Turkmen Ministry of Agriculture and Water Resources, State Commodity and Raw Materials Exchange and the Chamber of Commerce and Industry.

Source: YarnsandFibers

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Europe : Fulgar to partake in the Invista workshop at Performance Days expo

Fulgar, a European leader in the man-made fibre market with production of nylon 6.6 and covered yarns and an exclusive distributor of Lycra fibre and its specialities for Europe and Turkey, is set to take part in the Invista workshop taking place at Performance Days, this week on November 8 and 9, 2017, in Munich, Germany, in the Invista room- R10. The company will present its innovations in sports. An entire day will be set aside for the Lycra Sport platform and the innovative PCE measuring system, with a panel of top-level speakers from the textiles supply chain. Alan Garosi, Fulgar’s marketing manager, will contribute to the debate with a talk entitled “Innovation and inspiration for sportswear: EVO by Fulgar “The bio-based polyamide” and Lycra fibre technology”. Describing the innovative solutions that have led to the association of Lyrca Sport PCE with EVO, the bio-based yarn obtained from castor oil. The oil is the product of a non-food plant that grows spontaneously. The resource is totally renewable, does not require large amounts of water and does not take up land that can be cultivated for food production. Suitable for all textile applications and an ideal sportswear solution, EVO by Fulgar is ultra-light, super stretch, highly breathable, quick drying and non-iron. It features natural heat retaining and bacteriostatic properties, plus a whole series of distinctive values and benefits that provide maximum comfort and unique performance, with full respect for the natural environment. Alan Garosi said that EVO is a fantastic breakthrough not only in production but also from a social and environmentalpoint of view. They are pleased to be able to offer concrete solutions for the sportswear world that fully combine performance and sustainability.

Source: YarnsandFibers

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Cambodia’s Garment Manufacturing Industry

Cambodia is strategically located in the heart of Southeast Asia. The country is bordered by Thailand, Laos, and Vietnam, and has the Gulf of Thailand to its south-west. The country is popular for providing a low-cost manufacturing base for several industries. Among the many advantages that the country offers to investors are duty-free access to some large and developed markets, a stable economy, and several government incentives. Additionally, there are several special economic zones exclusively established to promote manufacturing across the country. In this article, we briefly discuss the chief characteristics of the garment manufacturing industry in Cambodia and the advantages it offers to foreign investors. Cambodia’s garment manufacturing industry – a key driver of growthCambodia’s garment manufacturing industry is largely export-oriented and highly integrated into global supply chains. The European Union (EU) represents the largest market for Cambodian garment exports, accounting for approximately 40 percent of the total manufacturing, followed by the United States ( 30 percent), Canada (9 percent), and Japan (4 percent). Many companies in the country operate as contract manufacturers for major multinational brands such Adidas, Gap, H&M, Marks & Spencer, and Uniqlo. In the early 1990s, the Cambodian government took various measures to boost the industry’s competitiveness in the international market, which prompted foreign investors to direct their attention to the country. Additionally, the country’s industrial development was supported by the Multi-Fiber Arrangements (MFA) quotas and other preferential trade agreements implemented by developed countries like the US and EU. Two decades later, the garment industry continues to drive the Cambodian economy through human capital development, employment generation and foreign direct investment (FDI). Currently, the industry employees over 600,000 people, making the sector the biggest employer in the country. Further, the garment industry accounts for 16 percent of the gross domestic product (GDP) and 80 percent of Cambodia’s export earnings. In 2016, the total number of garment factories in the country stood at 589 factories.

Cut-make-trim model

Cambodia’s garment factories are generally based on the principle of cut-make-trim (CMT) model. Under this method of production, the raw material, machinery and the design of the garments are imported from abroad, while the assembly of the product is outsourced to the labor-intensive factories in Cambodia. The CMT implies cutting and sewing of material according to the clothing brands’ specifications. The garment industry is essentially dominated by foreign owned firms, mainly from the neighboring countries such as China, Hong Kong, Singapore, Malaysia and Republic of Korea. The association with foreign-owned garments firms or brand names provide Cambodia’s garments industry an important channel into the garments global value chain.

Low-skilled workforce

The garment industry in Cambodia is essentially based on low-skilled, labor-intensive activities. Cambodia has a significant proportion of its population living below the poverty line with low levels of education. As a result, the country has a large pool of low-cost, and low-skilled workers. The vast majority of workers employed in the garment factories are women with minimum skills. Only a small proportion of the workforce includes higher skilled workers and professionals; these are mostly managers, supervisors, or members of the operations department.

Geographical distribution

Over 60 percent of Cambodia’s garment factories are located within or in close proximity to the capital city – Phnom Penh. The finished products are transported from the factories in Phnom Penh by train to the seaport of Sihanoukville where the garments are shipped to other countries. Other key locations of garment factories are Kompong Som, Kompong Speu, Kompong Cham, Kompong Chhnang, Svay Rieng, Takeav and Kandal provinces.

Advantages of Cambodia

Strategic location

Cambodia is strategically located in the center of the east-west corridor of the Greater Mekong Sub-region (GMS), providing access to key world markets. This helps businesses take advantage of low-cost manufacturing in Cambodia as well as huge demand for its products in Asia.

Competitive labor force

Labor in Cambodia is cheaper than most regional competitors, except Laos and Myanmar. In 2017, Cambodia’s monthly minimum wage of workers in its garment industry increased to US$153, a double of the 2012 level. Yet, the country’s monthlyminimum wage remains the most competitive when compared to Thailand (US$250) or Vietnam (US$166).

Preferential market access

Cambodia is a member of the ASEAN Free Trade Area (AFTA) – a regional economic integration pact wherein Cambodia benefits from the Common Effective Preferential Tariff (CEPT) agreement that reduces or eliminates tariffs on the manufactured goods traded between the 10 ASEAN member countries. The rapidly integrating ASEAN makes Cambodia an attractive investment destination because of its low-cost manufacturing, large regional markets and easier sourcing of raw material within the ASEAN Economic Community.

Cambodia has also been a member of the World Trade Organization (WTO) since 2004; this has increased its trade integration with the US and the EU. Cambodia benefits from the EU’s ‘Everything but Arms Scheme’, which allows low developing countries such as Cambodia duty-free access to the EU’s market for all export goods.

Supportive government policies

Some of the many incentives offered by the government of Cambodia include 100 percent foreign equity ownership, tax holidays of up to 9 years, and exemption from import duty on machinery and equipment. In addition to that, Investors can repatriate profit freely and reinvestment of earnings is encouraged with special depreciation allowances

Over the years, Cambodia has had a steady flow of foreign investment in its garment manufacturing industry demonstrating the many opportunities that the country offers to its foreign investors. Though certain challenges remain while doing business in a developing country like Cambodia – such as infrastructural gaps, and high energy costs – the considerable competitive advantages that the country offers cannot be ignored.

Conclusion

Source: Dezan Shira & Associatesm ASEAN Briefing

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Jeanologia presents 100percent Made in Bangladesh denim collection

Jeanologia, a Spanish finishing specialist for sustainable clothing for the first time managed to get all agents involved in the Bangladeshi textile industry - from fabric manufacturers to end product makers and buyers - to take part in its mission to create an ethical, eco-efficient and sustainable industry as it wants to turn “Made in Bangladesh“ into a quality seal. The new collection was developed in Bangladesh, with fabrics woven in the country and with the support of sustainable technology from Jeanologia. The leader in sustainable technology will present a collection that is made in Bangladesh, 100 percent at the Bangladesh Denim Expo, which is taking place on 8 and 9th November in Dhaka. Asia division director Jordi Juani said the objective is to get all agents involved in the Bangladeshi textile industry to create a product with better finishes being able to rely on Jeanologia as technology partner. Using their technology in the production processes, they have managed to be more competitive and speed up time to market, offering a modern sustainable product. Not only does their technology increase productivity and energy efficiency, it also reduces water consumption and eliminates harmful emissions and residues. On Thursday, November 9 at the Bangladesh Denim Expo, Jeanologia will also host a talk about collaborative design in the denim industry where Juani will explain the importance of collaboration, from the conception of the idea through its transformation to the sale of the product, can achieve a stronger industry. Jeanologia has been present in Bangladesh for over 15 years, supporting the textile industry with an intention to increase the production capabilities of producers in Bangladesh, especially in the denim sector, providing advisory services and cutting-edge technology to improve efficiency and end finishes. The Spanish company has been involved in increasing sustainability in denim production since 1993, maintaining respect to workers' health and the environment as a guiding influence. Its objective is also to make Bangladesh one of the biggest world textile centers. Currently, Bangladesh is the second producer at an international level, after China.

Source: YarnsandFibers

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Bangladesh : FDCB presents TRESemmé Khadi The Future Fabric Show 2017 in Dhaka

The Fashion Design Council of Bangladesh recently organized TRESemmé Khadi 'The Future Fabric Show 2017, the most anticipated fashion events of the year comprising both local and international designers, who have collaborated to achieve the same goal of revitalizing khadi. This year's ceremony is divided in two segments— the two-day Fashion Show on November 3-4 at International Convention City Bashundhara (ICCB), followed by the two-day Khadi Exhibition on 10-11 November at Gulshan Gardenia Convention Centre. Team of designers at Khadi expo will be showcasing the various ways of intertwining their rich history with modern developments. The designers will empower the people behind the handiwork and make them wear khadi clothes again. Maheen Khan, president of the Fashion Design Council, said that the council teams up to breathe new life into fashion, mothered by the technique of khadi, a fabric that is an essential part of the Bangladeshi textile heritage. She believes that conscious measures to preserve their culture through khadi will enrich the lives of the core Bangladeshis, thrusting the nation towards progress. On 3 November, the gala event opened with an unexpected act — a dance drama choreographed to highlight the glory of khadi. The dance act continued in between the designers' cues seamlessly. Another distinguishable feature of the show was the experimentations with the blouses — everyone gave a new face to the traditional blouse with ruffles, fringes and long frock-sleeves with intricate designs. This will definitely set a foot print of the start of something new in their traditional wear, and expect these novel designs to go viral. The panel of esteemed Bangladeshi participants for the two day show include Maheen Khan, Sarah Karim, Kuhu, EmdadHaque, Chandana Dewan, ShaibalSaha, BiplobSaha, LipiKhandaker, Maria Islam, Farah Anjum Bari, Shahrukh Amin, NawshinKhair, Tenzing Chakma, AfsanaFerdousi, Raka, Faiza Ahmed, Rima, Farah Diba, and Rupo Shams. The international panel include Rasna Shrestha (Nepal), Jacqueline Fong (Malaysia), NelunHarasgama (Sri Lanka), ChimmiChoden (Bhutan), SukeejitDangchai (Thailand), Himanshu Shani (India), and Soumitra Mondal (India). As promised, the show accentuated priority to their heritage, and the need to take environment friendly measures to preserve their beautiful culture. The FDCB truly put up a show that emphasised the need to create conscious designs inspired by their past that would be sustainable for the future. The products of the TRESemmé Khadi ‘The Future Fabric Show 2017’ will be exhibited on November 10 and 11 at Gardenia Convention Center, Gulshan. In this way, the Khadi Exhibition will extend the festivity by and it will be open for all.

Source: YarnsandFibers

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