NEW DELHI: The committee tasked with simplification of GST returns filing will consult tax experts and trade bodies to make the process convenient for businesses that have minimal transactions, its chairman said today. GSTN Chairman Ajay Bhushan Pandey-headed panel comprises VAT commissioners of Karnataka, Gujarat, Telangana, and senior officials from the Department of Revenue and the CBEC. "We are also discussing with experts and taking opinion from various other stakeholders as to what simplification could be achieved. The whole idea is that people who are nil filers, who have no sale/purchase transactions, have taken a registration for some future use, they should be able to file GSTR-1 and GSTR-3B by pressing just a few buttons. That is our ultimate aim," Pandey told. As many as 40 per cent of the businesses filing returns on GST Network (GSTN) portal have nil tax liability. The Goods and Services Tax (GST) Council had set up this committee on November 10 to suggest ways for simplification of the returns filing process. It has also decided to keep in abeyance till March 31 the filing of GSTR-2 (purchase returns) and GSTR-3 (the matching of sales and purchase returns). Now, businesses will have to file simplified initial GSTR-3B forms till March, along with sales returns GSTR-1. "The committee would look into simplification exercise because all (GST returns) are intricately connected," Pandey said, when asked if the committee would focus on only GSTR-2 and GSTR-3 or all the returns under GST. The committee will collect feedback from people, the trade and industry and study the whole system in detail and then come out with an appropriate plan. "If people have very minimal transactions, they should be able to file both the returns in a manner without going through full complications. Therefore, the display of the forms will be based on certain questions and the questions posed to the dealer," Pandey said. He added that the panel will also look into what information on returns should be taken and at what frequency. Pandey said the ultimate goal will be to provide convenience to people so that those who are filing the returns can do so without any difficulty. According to the data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B form for a month is filed on the 20th day of the next month after paying due taxes. According to the GSTN data, a huge chunk of businesses file their returns after the expiry of the due date. While only 33.98 lakh July returns were filed by the due date, the number has now gone up to 55.87 lakh. Similarly for August, 28.46 lakh returns were filed till the last date, but the figure went up to 51.37 lakh later. Also, for September, while 39.4 lakh returns were filed by the due date, the number is rising and was over 42 lakh till October 24. Also, the Council earlier this month substantially lowered late return filing fees for businesses from the Rs 200 at present. Businesses with nil tax liability will now have to pay only Rs 20 as late fee for delayed filing of return while for the rest, the fee is Rs 50. JD MBI ARD
Source: Business Line
Once a common sight in Tirupur, placards announcing job vacancies in garment manufacturing units are a rarity now. Instead, a sense of gloom pervades the knitwear cluster, which has been battered by one crisis after another over the last decade. Most shops in Khaderpet Market, which has around 2,500 textile shops, all catering to domestic requirements, have halved their workforce. Market sources said there has been a slump in sales from ₹1 lakh a week in April-May to ₹20,000 a week now. Migrant workers from the North-East have started to head back as many units have cut down production.
GST impact
Around 8,500 units are engaged in the manufacture of textile products and garments in Tirupur, apart from a large number of job-working units, mostly run by households. Industry insiders say it is the job-working units that face closure as they are unregistered entities. “They have neither an industrial licence nor other qualifications to be registered under the Goods and Services Tax regime as they are in the unorganised sector,” an exporter said. Data reveal that readymade garment exports have begun to slide, registering negative growth from June 2017. They contracted 41 per cent in rupee terms in October, registering a turnover of ₹5,398 crore, against ₹9,110.75 crore in October 2016. A file photo of shuttered garment shops in Khaderpet market “The garment sector has reached the endurance limit. Any delay in government intervention in handholding the sector by way of reinstating the old duty drawback structure and restoring the remission of State levies under RoSL (Rebate of State Levies) would drive us out of business. Buyers are threatening to move. And we are in an awkward situation we as are unable to arrive at a price after GST implementation,” said Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA). “There is total chaos today. We do not have a level-playing field to sustain in the global market as we are compelled to compete with ‘tariff advantaged’ nations such as Bangladesh, Vietnam, Cambodia and Sri Lanka,” he added. The only good news over the last few years is that the domestic market picked up. “When the industry here faced a pollution problem in 2011-12, export of readymade garments stood at around ₹10,500 crore and domestic turnover, at₹3,500 crore. Over the last five years (2012-2017), the domestic market has grown five-fold to ₹18,000 crore, but readymade garment exports registered only a two-fold increase — from ₹10,500 crore to ₹26,000 crore,” the TEA President said.
Gloom in the market
But things are getting tight even on the domestic front. Shopkeepers at Khaderpet market said that at least 50 per cent of dealers, who would hitherto source goods from the market, have stayed away citing GST. Sathik Basha, Manager, AlMalik Garments said the garment manufacturing company had stopped production for 2 months after the GST rollout. “Diwali sales this year were pathetic and this is happening for the second year in a row. We were stuck due to demonetisation during the last season and GST now,” he said. As things stand, it looks like Tirupur will continue to suffer until it gets a helping hand from the government.
Source: Business Line
Branded apparel manufacturers and retailers are yet to overcome the implications of the goods and services tax (GST) rollout in July. The tax reform had directly impacted the entire textile chain due to cascading burden. And post GST, poor consumer sentiment and falling exports have only made matters worse for the business. The September quarter results of large players stand testimony to this and experts don't see better days on the horizon for them. Branded apparels priced at Rs 1,000 or above attract 12 per cent GST, while those below this threshold suffer 5 per cent. With this levy, retailers have seen consumers shift towards low-priced apparels. Established players who've had to comply with new tax mechanism don’t deal in cash to avoid the levy. Besides, branded apparel firms had to buy back their inventory from bulk consumers ahead of the effective date of GSTimplementation, July 1, to avoid high tax levy on the apparels they had bought by paying less tax earlier. This has already resulted in some additional stock lying with them. Rahul Mehta, President, The Clothing Manufacturers Association of India, says, “Weak consumer sentiment, plunging exports and liquidity shortage in many companies is likely to sustain stress levels in branded apparel companies for a few months more.” He feels FY18 is a lost year for them. Exports were down 41 per cent in October, continuing the trend seen post GST due to withdrawal of duty drawback benefits. Slight depreciation of the rupee has not helped. Diwali and the overall festive season, according to Mehta, also haven't helped much. All said and done, they are virtually sitting on idle stock. All this has impacted the July–September financial numbers of branded apparel firms, with both turnover and net profit remaining under pressure.“Branded apparel and retail companies are expected to report lower-than-normal revenue growth in a seasonally strong quarter, even as their margins are likely to be impacted by a one-time cost on inventory due to GST.We recommend investing in the space with a 3-4-year horizon as companies attain scale by expanding distribution network and improve margins, cash flows and return ratios,” said Krupal Maniar, an analyst with ICICI Securities. For example, Aditya Birla Fashion & Retail (ABFRL) delivered another weak quarter impacted by the GST rollout, transition issues and weak consumer sentiment, especially in July. Although GST is expected to be a medium-term positive, end-of-season sale in June and consequent drop in footfalls in July, coupled with a one-time GST related compensation of Rs 26 crore to the channel led to a loss in 2QFY18. But factors started to recover in September, given strong festive season sales. Revenue was much lower than expectation at Rs 1,800 crore, down 4 per cent y-o-y, led by a 7 per cent y-o-y decline in lifestyle brands, a muted 2 per cent y-o-y growth in Pantaloons and weak growth in fast fashion. This revenue shortfall led to an Ebitda margin decline of 220 bps y-o-y to 6.6 per cent, excluding the GST write-off.
“Pantaloons witnessed a small decline in margins. Lower growth expectations, given multiple headwinds, and ongoing capex plans that are delaying free cash generation are key reasons for a downward rating revision to ‘hold’ now from ‘buy’,” said Himanshu Nayyar, Analyst, Systematix Shares & Stocks (I) Ltd. Meanwhile, Raymond Ltd posted 13 per cent growth in branded apparels sales, though weak exports and suiting sales saw branded textile revenues lower by 2 per cent y-o-y. Raymond’s high-value cotton shirting (HVCS) grew by 1 per cent in the September quarter to Rs 150 crore, impacted by weak consumer offtake due to GST. Lower raw material costs and improved product mix aided in 120 bps Ebitda margin expansion to 11.3 per cent. “Whenever there is early Diwali, you tend to lose out in the north. If you compare Diwali to Diwali, numbers are subdued. But organised players should do well now. Unorganised players who avoid taxes, will face challenges. There was a temporary slowdown but things became normal quickly. In fact, we did like-to-like growth of 16 per cent in the second quarter of this financial year,” said Sanjay Lalbhai, chairman and managing director at textile and apparel company Arvind Ltd.
Source: Business Standard
In developing countries, as many as 19 in every 20 young men and women work in the informal economy, compared with adult workers, says a new ILO study, which shows that globally 76.7 per cent of working youth are in informal jobs, compared with 57.9 per cent of working adults. “India, Tanzania and Zambia all have an extremely low prevalence of formal wage employment; in all three countries, fewer than one in ten young workers are in wage employment with a contract. However, whereas in Tanzania and Zambia almost all youth and adult employment is vulnerable...In India, almost half of all young workers are employed as wage labourers, without a written contract,” says the ILO report titled Global Employment Trends for Youth 2017, released on Tuesday. As India embarks on a major policy measure to increase job creation, the report cautions that “the youth employment challenge is not just about job creation, but also – even more so – about the quality of work and decent jobs for youth.” According to the report, as much as 39 per cent of young workers in the emerging and developing world – 160.8 million youth – live in moderate or extreme poverty, ie on less than $3.10 a day. The report also points out that an estimated 21.8 per cent of young people are neither in employment nor in education or training (NEET), most of them female. “The NEET rates for young men are lowest in developing countries, at 8 per cent, followed by emerging countries, at 9.6 per cent, and the developed countries at 11.3 per cent,” it says, adding that the gender gap has become even wider, with the female NEET rate at 34.4 per cent, compared with 9.8 per cent for males.
Shifting skills
Noting the role of technology, such as automation, in shifting the demand for skills, the report said that in most BRICS countries, educated and empowered young women were gaining presence in sectors traditionally dominated by men, such as construction and communication. “Over the past decade, in both developed and developing countries there has been greater polarisation towards high- and low-skilled wage workers, with a decline in semi-skilled wage employment, consistent with the hypothesis of routine-biased technological change,” it said, while pointing out that in developing and emerging countries such as Brazil and India, there has been a rise in the high-skill segment, but also a rise in low-skill wage work, such as in India. “Investing in lifelong learning mechanisms, digital skills, and sectoral strategies that expand decent jobs and address the vulnerabilities of the most disadvantaged should be prioritized in national policies,” Azita Berar Awad, Director of ILO’s Employment Policy Department said in a release. Overall, the report noted that the incidence of unemployment among youth in South Asia was expected to remain stable, at 10.9 per cent in 2017 and 2018, mainly because “fast economic growth in India, the region’s largest economy, will be compensated by slightly worsening labour market conditions in the rest of the region.” However, in absolute terms, the challenge of youth unemployment in South Asia will remain pressing, as almost 14 million economically active youth will be without a job in 2017, representing nearly 20 per cent of unemployed youth worldwide.
Source: Business Line
This is the highest closing for the domestic currency since November 6. The rupeerebounded by 22 paise to close at a two-week high of 64.89 against the US dollar cashing in on positive sentiments post Moody’s upgrade of India’s credit rating. This is the highest closing for the domestic currency since November 6. Heavy selling in the greenback by exporters and banks as well as weakness in the dollar against other currencies overseas largely supported the rupee recovery. The local currency also benefited from a strong rally in local equities. Currency traders and exporters rushed to sell their receivables expecting a surge in dollar inflows from global investors in the face of Moody’s decision to upgrade India’s sovereign rating after a gap of 14 years. The sovereign rating upgrade comes close on the heels of a sharp improvement in country’s ranking in the World Bank’s ease of doing business survey. Brent crude, the international benchmark, is trading a tad higher at USD 62.36 a barrel in early Asian trade. Earlier at the Interbank Foreign Exchange (forex) market, the rupee opened higher at 65.08 against Monday’s finish of 65.11 on bouts of dollar selling. Maintaining a clear uptrend throughout the session, the home currency finally managed end at the day’s highest level of 64.89, revealing a strong gain of 22 paise, or 34 per cent. The rupee had settled 10 paise lower on MondayIn cross-currency trades, the rupee bounced back against the pound sterling to settle at 85.90 from 86.30 per pound and also rebounded sharply against the Euro to close at 76.06 from 76.76. The local unit continued its strong momentum against the Japanese yen to conclude at 57.66 per 100 yens from 58.06. On the global front, the greenback held steady against other major currencies in cautious trade on Tuesday, amid ongoing political woes in Germany and uncertainty over a major tax reform plan in the US. The dollar index, which measures the greenback’s value against a basket of six major currencies, was up at 94.03 in early trade. Elsewhere, the common currency euro is trading little changed against the US dollar after the roller-coaster ride on Monday caused by the collapse of coalition talks in Germany as Angela Merkel prefers new elections while German President Steinmeier looks for renewed discussions. The British pound traded flat ahead of the senior government ministers’ meeting over the Brexit bill and the Bank of England governor being grilled at the inflation report hearing in parliament. In forward market today, premium for dollar remained sluggish due to persistent receiving from exporters. The benchmark six-month premium payable in April moved down to 121-122 paise from 123-125 paise and the far forward October 2018 contract also eased to 261-262 paise from 262-264 paise on Monday/.On the international energy front, crude prices rebounded sharply as traders looked to a meeting next week at which major crude exporters are expected to extend production cuts, though rising US output capped gains. Brent crude oil was up 47 cents at USD 62.69 a barrel, while US light crude was at USD 56.74, up 32 cents. Analysts said Brent was expected to fluctuate in a narrow range, between USD 61 and USD 63, as the market awaited the outcome of the Organization of the Petroleum Exporting Countries’ meeting this month.
Source: The Hindu
Calcutta: Stung by the falling outbound shipments of ready-made garments and lower realisations following the introduction of the GST, apparel exporters have approached the Centre for succour. According to the members of the Apparel Export Promotion Council, total benefits on cotton apparel exports have come down from around 11.31 per cent in the pre-GST regime to around 8.5 per cent after the rollout of the new indirect tax. This is primarily because of a lower duty drawback rate and lower return of state levies. Cotton apparel constitutes around 43.7 per cent of ready-made garment exports. Under the duty drawback mechanism prior to the GST, apparel exporters got reimbursement for customs duty (on the import of raw materials) as well as central excise and service tax. After the implementation of the GST, the drawback rates are only reimbursing customs duty. The return of state levies (RoSL) has also come down on account of the abolition of state taxes such as the value added tax. In October this year, exports of ready-made garments stood at $829.44 million, a decline of 39.23 per cent over October 2016 when it was $1,364.95 million. For the July-October period, the year-on-year drop is around 6 per cent. "The apparel industry is witnessing a major crisis. We have already seen exports declining mainly on account of a sharp reduction in the effective drawback and RoSL rates. If the situation is not rectified, Indian exporters are set to lose business in the coming months," said Anil Buchasia, chairman, export promotion committee, AEPC. The council has requested the Centre to increase the reimbursement amount in the wake of falling exports. The apparel industry is also dependent on purchases from unregistered dealers. Such purchases include fabric, trims and accessories. The council wants refund of the embedded taxes arising out of purchases from unregistered dealers.
Source: The Telegraph
The largest convergence of the sporting industry in India, The Times Of India Global Sports Business Show 2017 on its 2nd day focused on ISPO academy and the textile value chain. The Chief Guest of the day, Mr. J M Balamurugan, IAS, Secretary - Sports and Youth Services, Government of Punjab addressed the state of sports in the country. Laying emphasis on the growth in this segment, he said, "Given that we are a country of 1.3 billion people, there is a huge scope for sports revolution. The solution to improve is complex, multi-dimensional, multi-pronged yet possible. The efforts need to begin at the base level; at schools. Another factor that needs emphasis is financial security for the sportsperson, we need to create gainful employment for them post retirement." Talking about the sustainability development goals 2030 and their implementation with the textile value chain, Mr. Reiner Hengstmann, Go4More, Stuttgart, Germany highlighted the 17 goals structured by the UN. Mr. Hengstmann added, "Sustainability and business must work hand in hand. It's the need of the hour that companies and brands look for sustainable solutions and for consumers to be more aware about what and how of the making of the product. We need to move from linear business model to circular model where the motto is make-take-recycle." Addressing the options and risks of digitalization for the textile industry, Mr. Anton Schuman, Ghezri Textile Organization, Zurich, Switzerland, said, "Traditional value chain is changing due to digitalization; the driver being the consumer; digitalization has enabled the industry to create realities that were unthinkable at some point. He advised the delegates to innovate, adapt digitalization, change the point of view and do it with passion and write history." Present at the show Yavuz Mogul- Verwegener & Trefflich, Leipzig, Germany, said, sustainability is the biggest challenge in sport business and the ways to tackle are communicate, educate, be transparent and digitalize. Sharing his plans for Andhra Pradesh, Dr. N Bangara Raju stated that he wants to make 60% of Andhra Pradesh's people sports active by the year 2029. Navdeep Sondhi, Gherzi Textile Organization, shared, according to a survey the global textile, apparel consumption was 90 million tons in 2016. The future of textile apparel consumption market will be India and China due to rapid growth in disposable income and younger population. In a fire chat session Harit Mehta, MD, Haren Textiles, discussed the challenges that Indian companies faces. The need for digitization and working with the supply chain. The evening saw some interesting presentations and case studies by Linz, Austria, Sanjay Kumar and ended by session by Robert Schroots, S2R, and Geneva Switzerland.
About ET Edge
Times Conferences Ltd., functional under the brand name ET Edge, is an Economic Times initiative founded to empower multiple industries and segments by sharing critical business knowledge through exhibitions, strategic conferences and summits. Encompassing the Indian business vista, ET Edge strives to bring together visionaries and key leaders on its knowledge platforms to create social and business ecology conducive to the positive changes required by the industry. The main aim of this initiative is to channel global business intelligence through expos, summits and conferences in overarching lectures, hands-on workshops, panels, roundtables, face to face meetings and case studies.
Source: Economic Times
According to Angel Commodities, Cotton futures are expected trade sideways to higher on good physical demand from the mills and traders. Procurement by CCI whose target to procure about 100 lakh bales this season is also driving the prices higher. MCX Cotton Nov futures closed lower on Monday on long liquidation due to mixed fundamentals of higher arrivals and reports of damage to cotton crops in Maharashtra. Moreover, start of procurement by CCI in Gujarat at higher prices and govt. imposing 5% GST under reverse charge mechanism (RCM). The notification says that the GST on supply of raw cotton by farmers will be liable to be paid by the buyers – traders & ginners under the RCM, which makes cotton procurement expensive for them. The CAI has estimated cotton crop for the 2017 - 18 season at 375.00 lakh bales of 170 kgs each which is higher by 37.75 lakh bales compared to the previous year’s crop of 337.25 lakh bales. Cotton futures are expected trade sideways to higher on good physical demand from the Outlook mills and traders. Procurement by CCI whose target to procure about 100 lakh bales this season is also driving the prices higher. Reports of pest damage in states of Maharashtra and Gujarat may keep prices higher.
Source: Money Control
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$ 60.27 per barrel (bbl) on 17.11.2017. This was lower than the price of US$ 60.57 per bbl on previous publishing day of 16.11.2017. In rupee terms, the price of Indian Basket decreased to Rs 3908.55 per bbl on 17.11.2017 as compared to Rs. 3954.83 per bbl on 16.11.2017. Rupee closed stronger at Rs. 64.85 per US$ on 17.11.2017 as compared to 65.30 per US$ on 16.11.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on November 17, 2017 (Previous trading day i.e. 16.11.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
60.27 (60.57 ) |
|
(Rs/bbl) |
3908.55 (3954.83) |
|
|
Exchange Rate |
(Rs/$) |
64.85 (65.30) |
Source : PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1392.77 |
USD/Ton |
0% |
11/21/2017 |
|
VSF |
2213.38 |
USD/Ton |
0% |
11/21/2017 |
|
ASF |
2650.03 |
USD/Ton |
0% |
11/21/2017 |
|
Polyester POY |
1367.18 |
USD/Ton |
0% |
11/21/2017 |
|
Nylon FDY |
3463.11 |
USD/Ton |
0% |
11/21/2017 |
|
40D Spandex |
5947.52 |
USD/Ton |
0% |
11/21/2017 |
|
Polyester DTY |
5691.55 |
USD/Ton |
0% |
11/21/2017 |
|
Nylon POY |
1603.57 |
USD/Ton |
0% |
11/21/2017 |
|
Acrylic Top 3D |
3222.20 |
USD/Ton |
-0.47% |
11/21/2017 |
|
Polyester FDY |
2785.55 |
USD/Ton |
0% |
11/21/2017 |
|
Nylon DTY |
1708.97 |
USD/Ton |
0% |
11/21/2017 |
|
Viscose Long Filament |
3658.85 |
USD/Ton |
-0.41% |
11/21/2017 |
|
30S Spun Rayon Yarn |
2898.47 |
USD/Ton |
-0.26% |
11/21/2017 |
|
32S Polyester Yarn |
2085.39 |
USD/Ton |
0% |
11/21/2017 |
|
45S T/C Yarn |
2875.89 |
USD/Ton |
0% |
11/21/2017 |
|
40S Rayon Yarn |
3056.57 |
USD/Ton |
0% |
11/21/2017 |
|
T/R Yarn 65/35 32S |
2484.41 |
USD/Ton |
0% |
11/21/2017 |
|
45S Polyester Yarn |
2213.38 |
USD/Ton |
0% |
11/21/2017 |
|
T/C Yarn 65/35 32S |
2439.23 |
USD/Ton |
0% |
11/21/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
11/21/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
11/21/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
11/21/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0.23% |
11/21/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
11/21/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15057USD dtd 21/11/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan’s textile and clothing products exports recorded over 7 percent growth during four months (July-October) of the current fiscal year mainly due to the cash subsidy offered under the prime minister’s exports enhancement package. The country exported textile and clothing products worth $4.4 billion during July-October period of the year 2017-18 as against $4.1 billion of the corresponding period of the previous year, according to the Pakistan Bureau of Statistics (PBS). Revival in textile and clothing products exports enhanced the country’s overall exports to $7.1 billion during July-October of 2017-18 as compared to $6.4 billion of the corresponding period of the last year. Exports of textile and clothing products enhanced due to cash subsidy offered under the prime minister’s exports enhancement package and release of pending refunds and better energy supplies. Textile associations had recently demanded some incentives from the government to boost tumbling exports . They had demanded to waive surcharges of Rs3.53/kWh to bring the tariff to Rs7/kWh from the current Rs10.5/kWh and gas price to Rs600/mmbtu for the exports sector. Similarly, they had also asked to clear sales tax and customs refunds and extending zero-rating facility to packing material and power looms. According to the PBS, the main driver of growth was the value-added textile sector. Exports of ready-made garments went up by 14.8 percent in the first four months of the ongoing financial year. Similarly, exports of knitwear increased by 10.62 percent during the period under review. Exports of bedwear went up by 5.44pc in value. In the category of primary commodities, exports of cotton yarn witnessed a growth of 5.4 percent and exports of yarn other than cotton recorded a rise of 10.30 percent. Exports of made-up articles, excluding towels, increased by 8.81pc. Art, silk and synthetic textile exports grew by 60.61pc during the period under review. However, exports of tents, canvas and tarpaulin dipped over 34 percent. Exports of cotton carded exports recorded decline of 100 percent during July-October period of the year 2017-18 over a year ago. On the other hand, the imports also showed an increase of 22.55 percent and were recorded at $19.2 billion during first four months (July-October) of the current financial year as against $15.7 billion of the same period last year. Pakistan’s combined import bill of food, oil and machinery swelled by over 18 percent during July-October of the ongoing financial year. The import bill of these three groups had cost $10.3 billion during July-October of the FY2018 as against $8.3 billion of the corresponding period of the last year, PBS. The country spent $4.4 billion on imports of petroleum group, which is 39.5 percent higher over a year ago. In petroleum products , the government imported petroleum products worth $2.6 billion and spent $1.61 billion on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $534 million and liquefied petroleum gas (LPG) worth $97 million. The PBS data showed that country had spent $3.7 billion on importing machinery during first four months of the ongoing financial year. The third-biggest component was food commodities whose imports rose 20.21 percent year-on-year to $2.2 billion.
Source: The Nation PK
'DIFE has already decided not to renew licences of non-compliant factories and cancel their licence after the expiry of the deadline. The government has asked all factories from the National Initiative (NI) under the Tripartite Plan of Action to complete their remediation process by April 2018. As part of the government’s initiative to ensure RMG factory safety after the Rana Plaza disaster, the Department of Inspection for Factories and Establishments (DIFE) held a meeting with the factory owners from the NI to evaluate the progress of their remediation in making a safer workplace on Sunday. at the meeting asked all the factories to complete their remediation process by April 2018. If the factories fail to meet the April deadline, then the DIFE will take strict measures. DIFE Inspector General Md Shamsuzzaman Bhuiyan said: “DIFE has already decided not to renew licences of the non-compliant factories and cancel their licence after the expiry of the deadline. “To ensure safety at the workplace, all factories must have safe electrical lines, fire safety and remedy to structural problems that have been identified during inspections. We have asked the factory owners to complete all the reforms by April 2018. “Failure to meet the deadline will result in dire consequences. Regarding the final decision on these factories, we will hold a meeting with the National Tripartite Committee (NTC), as the issues are related to top global partners.” After the Rana Plaza factory disaster, on May 15, 2013, the Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety in Bangladesh were signed. The Accord is a five-year, independent and legally-binding agreement between global brands, retailers and trade unions to build a safe and healthy Bangladeshi RMG industry. The Alliance is a legally-binding, five-year commitment to improve safety in Bangladeshi RMG factories. The Alliance was organised in 2013 through the Bipartisan Policy Centre, with discussions convened and chaired by former US Senate Majority Leader George Mitchell and former US Senator Olympia Snowe. The Alliance focuses mainly on workers’ rights. Later, the Bangladesh government, supported by the International Labour Organisation (ILO), formed another platform – the National Initiative (NI) – for RMG factories that were not part of the Accord and Alliance to improve their safety standards. A total 1,549 garment factories beyond the Accord and Alliance inspections had been inspected by the National Initiative. After the completion of their initial inspection on November 10, 2015, the factories registered just 20% progress in remediation procedures over the last two years. “We are currently monitoring the remediation of 780 factories, which are under the government initiative,” said DIFE Inspector General Shamsuzzaman. As of Monday, DIFE had held meetings with owners of factories in the Dhaka and Narayanganj zones, and they will hold meetings with the owners of factories in Gazipur on Tuesday and with owners in the Chittagong zone on Saturday.
Source: Dhaka Tribune
VietNamNet Bridge - Vietnamese fashion and garment companies have usually focused on outsourcing and have ignored branding. But the business strategy will no longer fit the new circumstances as more and more foreign brands have landed in Vietnam. Mango has opened two Mango Mega Stores since 2015. H&M opened a shop in HCMC last September. On November 9, Zara opened its first shop in Hanoi.According to Savills, Vietnam is the fifth country in South East Asia where Zara is present. The arrival of Uniqlo in the near future will make the Vietnamese market even more competitive. Dang Phuong Dung, deputy chair of the Vietnam Textile & Apparel Association (Vintas), said the presence of the world’s famous fashion brands will force Vietnamese companies to invest more in branding. “Not many Vietnamese companies can develop their own brands and sell products under their names. In general, they do not pay much attention to branding because of IP infringement and counterfeit products,” she said. “However, as more famous fashion brands have arrived, Vietnamese companies will have to build brands of their own to compete,” she said. Lai Tien Manh, a branding expert, and CEO of Midrand, said the presence of more foreign brands has occurred because income per capita has been increasing and demand is increasing. The presence of the world’s famous fashion brands will force Vietnamese companies to invest more in branding. “Vietnamese companies need to change their business strategies. To date, they have been focusing on doing outsourcing. But they will be uncompetitive if they continue doing this,” he commented. He went on to say that Vietnamese companies are good at producing textiles and garments, but not at fashion design, branding and distribution. They will have to make great efforts to survive in the market. According to MOIT, in the first six months of 2017, the total textile & garment export turnover reached $14.58 billion, an increase of 11.3 percent over the same period last year, much higher than the 6.1 percent growth rate of 2016. Of this, garments brought $11.84 billion, an increase of 9.1 percent. Vietnam has been witnessing outstanding growth rate in textile and garment exports in recent years compared with other exporters such as China, Bangladesh, Indonesia and India. However, Dung commented that the majority of Vietnamese companies focus on exporting products and pay little attention to the domestic market, though it has great potential. Though Vietnam’s textile & garment industry is a world leader, it mostly does outsourcing. Some Vietnamese fashion brands well known in the domestic market such as Viet Tien, Nha Be, An Phuoc and Garment 10 only target mid-range menswear.
Source: Vietnam Net Bridge
Cambodia recently urged global buyers to raise investment in its garment and footwear sector and to introduce new technologies to help modernise the industry. Commerce ministry secretary of state Ok Bung told envoys of global clothing brands and unions recently that low productivity is resulting in lower ranking for the country in the global value chain. Representatives from companies, such as Inditex, Debenhams, Kmart-Australia, H&M, Next, C&A and Primark, and international union federation IndustriALL were present at the meeting. Issues now hampering the garment sector include high production costs, low productivity and access to a limited number of markets, said Ken Loo, secretary general of Garments Manufacturers Association of Cambodia (GMAC).Frank Hoffer, executive director of non-profit organisation Action, Collaboration and Transformation (ACT), requested the ministry’s support to set up a workshop with buyers, unions, factory owners and government agencies to hear all sides and jointly prepare a strategy to guide development in the sector. ACT is an initiative between international brands and retailers, manufacturers and trade unions to address the issue of living wages in the textile and garment supply chain. In 2016, Cambodia’s garment and footwear industry had 786 factories and a workforce of more than 700,000 people. The main export markets are the European Union, the United States, China, New Zealand and Japan.
Source : Fibre2fashion
This was stated by the chairman of the board of the National Agrarian Scientific-Educational Center under the Kazakh Agriculture Ministry Askar Nametov, Kazinform reported. "In 1991 there were no own cotton varieties in Kazakhstan. Currently, ten varieties were created, five of which successfully passed tests. At present, the yield of raw cotton is 22-23 centners per hectare, although the potential of new domestic varieties is 38-40 centners per hectare," he said. The task is to raise it by 30-40 percent, while improving the quality of cotton fiber, which will help to increase the competitiveness of cotton fiber and oil products, both on the external and domestic markets, according to Nametov. The cotton of domestic varieties is currently exported to 11 countries, including Russia, Belarus, Germany, Latvia, Moldova, China, Belgium, Iran, Ukraine, Italy and Korea, according to the chairman. He also added that at present about 160 varieties and hybrids of 25 species of Kazakh breeding have been allowed to use, of which 39 are varieties of potatoes and 103 types - of vegetables and cabbage crops. More than 24 percent of the Kazakh population is employed in the agricultural sector. Family farms account for approximately 70 percent of land in Southern and South-eastern Kazakhstan, and account for an estimated 95 percent of total cotton production. While Kazakhstan is significantly larger than its Central Asian neighbors in terms of land area, its cotton production is relatively low due to the significance of grain cultivation and other food crops.
Source: Azer News
Members of ACIMIT, the Association of Italian Textile Machinery Manufacturers, are set to participate in the Colombiatex 2018 expo, Colombia’s main textile tradefair, to be held from November 23 to 25, 2018, in Medellin. 24 companies will be exhibiting their latest technology in the common area set up by the Italian Trade Agency and ACIMIT. Among Italian companies exhibiting at the common exhibition space, ACIMIT members include Beschi, Beta, Biancalani, Btsr, Caipo, Carù, Durst, Fadis, Itema, Laip, Mactec, Marzoli, Mcs, Monti-Mac, Noseda, Ratti, Reggiani, Salvadè, Santex Rimar Group, Simet, Smit, and Tecnorama. The Colombian textile and garments industry is among the most important one in America, above all with respect to the fashion sector. Thanks to a number of trade agreements undertaken with neighbouring countries, as well as with the world’s two major apparel markets (the United States and European Union), the industry has recorded further progress in recent years. Interest on the part of Italy’s textile machinery industry for the Colombian market comes from the ongoing demand for technological updates by local manufacturers. Italian exports to the region in 2016 rose to a value of €13 million. Over the first six months of 2017, sales of Italian textile machinery to this market exceeded €6 million. Among Made in Italy production technology most in demand by Colombian textile and garments manufacturers are finishing machinery (58 per cent of the total) and spinning machinery (16 per cent).
Source: Fibre2Fashion
