Welcoming the Mid-Term Review of Foreign Trade Policy 2015- 20 Mr. Srinarain Aggarwal Chairman SRTEPC stated that the Midterm review had addressed a host of the issues from GST to ‘Ease of Trading’ across borders which will have a positive impact on the manmade fibre segment of the country. Chairman SRTEPC informed that the Council had sent various representations to the Ministry of Textiles and Ministry of Commerce and Industry and Ministry of Finance Government of India requesting to address issues related to GST MEIS EPCG Advanced Authorization Scheme EOUs Duty Drawback ROSL etc. Accordingly Government has considered the above issues raised by the Council and taken positive steps in the Mid-term review. He informed The Government has already announced increase in MEIS incentives from 2 per cent to 4 per cent for Ready-made Garments and Made Ups in the labour intensive Textiles Sector with an additional annual incentive of Rs. 2 743 crore. Now the rates of MEIS have been increased from 3 to 5% on unbleached Nylon/polyamide fabrics other Nylon/polyamide fabrics Dyed Dyed woven fabrics from strip/the like printed woven fabrics from strip/the like other woven fabrics from strip/the like Dyed woven fabrics specified in Note 9 to Section XI and printed woven fabrics specified in Note 9 to Section XI. Chairman SRTEPC welcomed the Government’s initiative to restore the benefits under the export promotion schemes of duty free imports under Advanced Authorisation Export Promotion Capital Goods and 100 per cent Export Oriented Units and commented that this imitative will suitably resolve the problem of working capital blockage for exporters following the roll out of GST. The extension of validity period of Duty Credit Scrips from 18 to 24 months reduction of GST rates on transfer/sale of scrips to zero support of Export Credit Guarantee Corporation enhanced to increase insurance cover to exporters particularly MSME’s exploring new or difficult markets introduction of a new scheme of Self- Assessment based duty free procurement of inputs required for exports setting up of a State-of-the-Art Trade Analytics division in DGFT for data based policy actions introduction of a new Logistics Division in the Department of Commerce and Focus to Ease of Trading across borders are the positive steps taken by the Government through the Mid-term review the Chairman SRTEPC stated.
Source: Tecoya Trend
The target markets include Germany, France, Italy, the US, China, Hong Kong, Turkey, Australia, Russia, the UAE, Brazil, Egypt and Chile where product segments identified as per their sales and marketing potential will be showcased, the textiles ministry said. : The government has identified 13 countries as target markets where products like handicrafts, jute, cotton, textiles and apparel can be showcased through exhibitions to increase their visibility and exports. The target segments for European nations including Germany, France, Italy include cotton textiles and handicrafts, whereas Indian apparel will be showcased in the US, and Indian cotton & carpets will be marketed in China, among others. India is the second largest exporter of textile and apparel in the world with 5 percent trade share. "There exists a huge potential for India to increase its market share in various markets by aligning the product with specific market. In line with this, the Marketing Plan has been prepared to synergise various ongoing marketing initiatives while adopting specific approaches for traditional, emerging and other important markets," the ministry said. The Integrated Marketing Plan 2017-18 approved by the ministry for textile and apparel sector calls for "greater convergence among various agencies and to tap new markets through focused trade promotion activities such as B2B meetings, exhibitions, roadshows, etc".The plan recommends that a common umbrella brand and space must be created by showcasing strength of textile products at the Indian pavilion in fairs. It also includes organising roadshows in tandem with the ongoing event and organising India Eve (B2B meetings) after business hours. A designated official in the delegations participating in exhibitions overseas will coordinate with export promotion councils on the pavilion design, take part in bilateral meetings with government officials and hold interactions with potential investors, showcasing India's advantages. India's total textiles and apparel exports stood at USD 39.7 billion in 2016-17, which have grown at a CAGR of 2.6 percent since 2012-13. However, the exports have remained almost stagnant in the last two years.
Source: News 18
New Delhi: Reform measures such as the Goods and Services Tax (GST) have instilled optimism in India Inc with CII’s Business Confidence Index climbing to 59.7 during October-December 2017, against 58.3 in the previous quarter, according to the findings of the Confederation of Indian Industry’s 101st edition of quarterly Business Outlook Survey. However, a majority of the firms expected no change in their investment plans, with around 50 per cent expecting to maintain status quo in their domestic investment plans. On the international front, too, 59 per cent firms said they expected to keep their investment plans unchanged, said the survey based on responses from large, medium and small companies, covering all regions of the country, a CII release said. When asked to rank their concerns, the firms rated low domestic demand, followed by high commodity prices as the “major threats.” According to the survey, business conditions are expected to improve as over 63 per cent of the firms anticipated an increase in sales in October-December 2017, compared with only 44 per cent who experienced the same in the previous quarter. Companies also expected new orders to rise in this quarter. “Much of the recovery in business conditions is expected to be domestically driven as a large proportion of firms (62.2 per cent) expect to maintain status quo on their export orders in October-December 2017,” it added. Commenting on the rebound in business confidence, Chandrajit Banerjee, Director-General, CII, said: “The survey underscores the perception that the economy is on asustainable recovery path, with the many government interventions having an impact on the ground.”
Source: Business Line
Indian industry and our government must work together more strategically and purposefully to build an ecosystem to drive Indian products and services into China’s huge and expanding marketGAINS AT HAND India has a huge need for investment in infrastructure facilities such as railway modernisation, port development, energy projects etc., all areas where China has both strength and experienceItwould be logical to infer that greater economic engagement between China and India — the second and fourth-largest economies (PPP values) in the world respectively — would be in the mutual interest of both nations. However, for various reasons, this has not happened. Though China is India’s largest bilateral trade partner ($70 bn in 2016, having grown from a mere $2 bn in 2002), the Sino-Indian trade relationship is still just one-third of that between China and South Korea ($218 bn), and even lower than that between China and Vietnam ($97 bn). Investments by China and India in each other’s economies are still minimal, even though there is increasing interest now amongst the Chinese to invest in India, especially in brownfield projects. Indian tourists to China number about 700,000 per year, whilst Chinese tourists to India are only about 200,000. These minuscule numbers represent a mere fraction of China’s 84 million outbound tourists, or of India’s 18 million. Overall, the India-China canvas of engagement is very narrow. Further, over the years, India has persistently run a bilateral trade deficit with China, which now (2016) amounts to $46 bn. This has caused political worry in India (rationally, it is difficult to understand why — for trade balances should be evaluated not in bilateral terms, but as an overall national picture). But be that as it may, since the deficit is a reality — and a worry — we need to figure out how to deal with it. Logic tells us that since the merchandise trade balance is the net figure of exports and imports, increasing exports to China is an obvious solution. So is attracting tourists from China: as an invisible export, tourism from China would reduce the overall adverse trade balance (merchandise plus invisibles). Reducing imports from China — ceteris paribus — would also achieve the same result. Finally, inward investment from China would provide a positive infusion on the capital account, thus mitigating the deficit on the revenue account. But theoretical solutions are useful only as far as they are feasible and timely. So, how should we evaluate these four options: (i) increase exports to China (ii) increase tourism from China (iii) decrease imports from China and (iv) increase inward investment from China? Let us consider each in turn. Indian exports to China are predominantly of commodities and raw materials such as iron ore. This is one of the reasons for the trade imbalance — India is not competitive in many valueadded exports. But there are areas like IT, pharmaceuticals (and others) where we do have advantages. As one example, the price of many Indian generic drugs is well below what the Chinese pay for their medicines. A compelling case can be made that Indian generic exports will help China reduce health care costs for its people. Since India imports Chinese drug intermediates (APIs) for many of its formulations, the Chinese API business is a natural ally to support the entry of India’s generics into China. Strange, but true. Our real problem in penetrating the Chinese market is one of insufficient and granular knowledge of its nature and working methods. To start with something as obvious as the language gap: India has a serious lack of translators and interpreters skilled in Mandarin. Then comes due diligence and market intelligence. Indian industry and our government must work together more strategically and purposefully to build an ecosystem to drive Indian products and services into China’s huge and expanding market. However, this will take time, and so this option can only be a medium-term target. On the other hand, stimulating inbound tourism from China is relatively easier. What needs to be done is wellknown: simplified visa procedures, a good stock of Mandarin-speaking tour guides, and some imaginative tourism offers drawing on India’s strengths and specially crafted for different segments of the Chinese outbound tourism market. And above all, a creative communication strategy in China’s social, print and TV media presenting India as a novel and engaging destination for the Chinese traveller. The problem is within India: no single company is willing to risk investing money to develop the Chinese tourism market as above, lest competitors steal a march on them. To overcome this “free rider” issue, the Indian tourism industry and our government need to jointly produce a strategic action plan. For quick results, all players on the Indian side need to pull together. Reducing imports from China — through bans or additional duties — is a bad idea, other than for particularly egregious cases of “dumping”. The reason is that legal imports represent genuine demand from Indian citizens for those products in preference to others. Interfering with these market forces will only mean redistributing the pleasure and pain differently, but still amongst Indian citizens, and with unforeseen consequences. Such protectionist tendencies will also not help India gain entry into larger plurilateral trade groupings, like the RCEP. The last option — to increase Chinese investment into India — seems the fastest and most productive way to bridge the trade deficit. China has over $3 trillion as reserves in foreign currency, and seeks opportunities where its investment can earn a decent return. India has a huge need for investment in infrastructure facilities such as railway modernisation, port development, energy projects etc., all areas where China has both strength and experience. Further, India presents a safe and stable investment destination, with a favourable demography. Indeed, Chinese investment can accelerate “Make in India” (another irony!), creating enormous employment opportunities in its wake, particularly in relatively low-skill areas like apparel, garments, leather, toys etc. where China is vacating manufacturing space due to high labour costs. Indeed, by first addressing economic issues that could produce significant mutual welfare, we might well reach a scenario where an equitable solution to the intractable border problem will no longer seem a pipe dream.
Source: Business Standard
India’s continued eligibility for special and differential treatment (S&DT) at the World Trade Organization (WTO) hangs in the balance as poorer countries trying to negotiate further strengthening of the provision are not too sure about it. The benefits of S&DT provisions — which leads to imposition of lower liberalisation commitments on developing countries and Least Developed Countries (LDCs) compared to developed countries in many areas — may run out for India in future measures unless it proactively tries to preserve it, a government official told BusinessLine. “There is no clarity over whether India will continue to be covered under the S&DT provision being reviewed at the WTO in ten specific areas proposed by the G-90 group. India is trying to push for its continuation, but many members are not so eager,” the official said. The S&DT provisions and to whom they should be extended were recently discussed at an informal meeting of the WTO, on the sidelines of the 11th Ministerial Conference in Buenos Aires.
Little wiggle room
The G-90 group, including LDCs, the African group and the ACP (African, Caribbean, Pacific), in a recent draft proposal to the WTO for adoption at the MC 11, laid down that while LDCs shall be free to introduce and maintain investment measures that deviate from their obligations under the TRIMs (Trade Related Investment Measures) Agreement, developing countries can deviate only temporarily to meet specific objectives such as increasing industrialisation, export capacity or modernisation. It further stated that LDCs and some developing countries with capacity constraints may be allowed to suspend certain trade concessions being offered to other members in order to promote the establishment of a particular industry, or establishment of a new branch in an existing industry, or achieving substantial transformation, bridging the digital and technological divide, modernisation and upgrading and expansion of an existing industry, Other provisions include less stringent Sanitary & Phytosanitary Measures for LDCs and certain developing countries, more favourable provisions for continuing with subsidies & countervailing measures, and more favourable treatment in new schemes and measures and also assistance for free flow of technology. “What is important to note here is that the paper talks about S&DT not for all developing countries but for some with capacity constraints,” the official said. There are a number of LDC members that feel that large developing countries such as India and China should not get S&DT, which actually goes against the mandate of the Doha Development Round, which extends it to all developing countries. “India’s fate also depends on whether member countries agree with the argument that the provisions and categorisation of countries under the Doha development round still exist, despite the developed world, including the EU and the US, shunning them at the last Ministerial in Nairobi,” the official said. If there is a broad consensus over the continuity of the Doha Round, then the problem of S&DT will immediately be sorted out. “If not, we have a big fight in our hands,” the official added. The MC 11, which is from December 10-13, is working on five specific areas including agriculture, services, e-commerce, development and fisheries. Also read.
Source: Press Reader
Mr. Ganesh Kumar Gupta President FIEO has called upon the Finance Minister to provide exemption from IGST on all instruments providing basic customs duty free imports both of inputs and capital goods. In a submission to the ministry Mr. Gupta noted that exports require special treatment under the GST regime. The refund system howsoever efficient would result in blocking of the capital of exporters in payment of GST from the date of procurement of inputs to exports. Therefore depending on the duration of procurement of inputs commercial production of output and its exports the exporters’ money would be blocked. This is one of the factors which is blunting the competitive edge of exports. 29 members States of European Union (EU) Australia Canada Malaysia etc. have therefore provided exemption from VAT/GST on inputs required for export production. These countries have very low rate of interest extremely efficient online refund mechanism and much educated exporters. Despite this if these countries have followed an exemption regime for exports there has to be some merit into it. Mr. Gupta therefore urged the Finance Ministry to provide exemption from IGST on all instruments providing basic customs duty free imports both of inputs and capital goods. FIEO President futher informed that lot of micro & small exporters would like to get all refund for exports at one place. At present for refund of the basic customs duty they have to get duty drawback and for refund of GST they have to file separate application. This adds to the transaction time and cost. FIEO therefore has proposed a comprehensive Duty Drawback Scheme which covers the incidence of both basic customs duty and ITC. The Drawback Committee may calculate two rates one covering only basic customs duty on the inputs and other including both basic customs duty and Input Tax Credit. The exporters who wish to avail comprehensive drawback will forego GST claim. This will provide huge relief to micro & small exporters particularly in carpets handicrafts textiles agro & allied sectors where they take supply from unregistered suppliers and find it extremely difficult to keep detailed record required for ITC refund Mr Gupta said. In his submission to the Finance Ministry Mr. Gupta further said that the freight both air and sea for exports was exempted under the pre-GST regime as the place of supply for such services was destination of goods irrespective of location of supplier of such services. In the GST regime freight has been subject to 18% and 5% respectively for air and sea. This affects exporters particularly where freight cost contribute to a significant portion of exports. He therefore urge to provide exemption from GST both on air and sea freight since the destination of goods is outside India. With regard to job work Mr. Gupta said that the job work is revenue neutral as credit flows between principal and job worker. However high rate of job work for most of the sector and more importantly maintenance of detailed record has affected job workers throughout the length and breadth of the country. Most of the job workers are illiterate or semi-literate who are not at all capable of maintain invoice or challan. In view of the above FIEO President requested the Finance Ministry for exempting job work from GST so that the compliance burden on job worker is eliminated. If for any reason complete exemption is not possible Mr. Gupta suggested that all job works may be subject to 5% GST (as has been done for textile) so as to avoid classification dispute and bring uniformity for ease in administration. On the direct tax front Mr. Gupta requested the Finance Ministry to give impetus to marketing through tax deductions. Many countries have become extremely aggressive to push their exports. Unfortunately we have very meager allocation for Market Access Initiative (MAI) Scheme which supports export marketing. FIEO has proposed for creation of an Export Development Fund to the tune of at least 0.5% of total exports to support export marketing. Alternatively Government may provide 100% tax deduction on the expenditure made by the exporters for overseas marketing. Such a move will help the showcasing of Indian products overseas. Creation of employment is the biggest challenge faced by the country Mr. Gupta noted and said that if we have to reap demographic dividends we have to provide jobs to millions who are seeking jobs on month on month basis. He urged the Government to provide fiscal support to units who provide additional employment in export sector. Such a Scheme will also help the workers to move from informal employment to formal employment which is a priority of the Government. Incentives may be provided based on twin criteria of growth in exports and growth in workers so that while on the one hand exports is increased on the other the employment intensive units also gets a boost he added.
Source : Tecoya Trend
COIMBATORE: Indian Texpreneurs Federation, an apex body of the textile industry, today expressed confidence that cotton prices would come down and the speculative price increase during last week was not sustainable. Though there are issues in the ‘quality of crop’ in the current cotton year in a few states, overall there would not be much drop in cotton crop this year, ITF convenor Prabhu Dhamodharan said. Charging a section of the trade with creating panic to increase prices by spreading specific negative information on cotton crop, Prabhu said 80 per cent of the crop was yet to reach the market. “This translates to the tune of nearly three crore bales. This massive supply will balance pricing pressure in the coming weeks,” he said, citing ITF field reports. Dhamodaran said ITF strongly believes that the price increase this week in cotton to the tune of Rs 1,500 per candy would not sustain and was only a short-term speculative increase. He said ITF has advised members to plan for cotton import for two months of the mills consumption this cotton year to mitigate the risk. “With our last year import experience, even with Rs 2,000 more cost, mills can get a better cost advantage because of superior quality of imported cotton with less trash and less contamination,” he said. Apart from this, domestic cotton quality here was a big issue this year due to various factors, he said, adding there has been a drop in realisation levels in spinning mills, which is leading to straight two to three per cent increase in manufacturing cost at the yarn stage. A 15 member ITF cotton team would again visit two important cotton growing states in the coming week to meet partner ginners to work out an action plan for the current year, Prabhu added.
Source: Business Line
BATHINDA: The cotton yield in Punjab is expected to be lower 10% less as compared to the past year. The state agriculture department and trade bodies expect the production of the fibre crop to be nearly 1 lakh bales less than the target set at the start of the sowing season. Initially, the department and Cotton Corporation of India (CCI) were expecting over 12 lakh bales (1 bale of 170 kg) in Punjab. Till Wednesday, 3.80 lakh bales of raw cotton had arrived in the markets in the state. As the farmers were busy in sowing wheat, arrival of raw cotton is expected to pick pace now. Cotton was sown over 3.82 lakh hectares in Punjab this season compared to 2.57 lakh hectares in 2016. Last year, 8.90 lakh bales of cotton had arrived in the mandis of Punjab. In 2016, cotton yield was recorded at 22 quintals per hectare (756 kg of lint per hectare). Trade bodies expected cotton productivity to be less than 20 quintals per hectare (670-675 lint kg per hectare). Deficient rainfall in July-August coupled with less availability of canal water were cited as the reasons by the agriculture department for drop in yield of the crop. Besides lower yields, farmers are also getting less price for their produce this season. Raw cotton had fetched Rs 5,200-5,400 per quintal in December 2016 while the rates are hovering in the range of Rs 4,650-4,800 per quintal this time. Balwinder Singh, a cotton grower from Sangat village of Bathinda, said, "We got a double blow as the yield has come down and prices too are down by over Rs 600 per quintal over the previous year. We had shifted back to cotton hoping higher returns but we feel disappointed." Farmers of Punjab are storing raw cotton on the hopes of higher prices in future following the reports of pink bollworm attack on the crop in Maharashtra. Pest attack on cotton in Maharashtra is yet to affect prices, though the estimated output of the crop has been put at 370 lakh bales as against the initial estimates of 385 lakh bales. "We were expecting the yield to be around 756 kg of lint per hectare. However, it is likely to remain nearly in the range of 670-675 kg per hectare due to deficient rain and hot and humid weather conditions in July. The yield is expected to be lower by 10% as compared to last year," said Punjab agriculture department's joint director Sukhdev Singh. Bathinda branch in-charge of the state agency Cotton Corporation of India (CCI) Brajesh Kasana, said, "Earlier it was expected that over 12 lakh bales will be produced in Punjab. Going by fall in yield, we estimate the output to be nearly 11 lakh bales in the state. CCI has so far not made any purchases as raw cotton prices are above the minimum support price (MSP) of Rs 4,220 per quintal (for long staple)." Textile maker Vardhman Textiles' director (raw material) I J Dhuria said cotton scene at the national level seemed good. "In Punjab the yield has come down and in Maharashtra the pink bollworm attack has lowered the sentiments but overall the season may not be bad," he said.
Source: The Times of India
NAGPUR: The cotton growers of the region have been facing the double whammy of their produce being eaten away by pink bollworm and are not getting as much profit of their produce as they want even after selling it slightly above the minimum support price (MSP) in the market. The farmers of the region are getting the cotton at Rs4,600 to Rs4,800 a quintal, slightly above the MSP of Rs4,350 a quintal. But after deducting various cuts under several heads like commission, transport charges and also last minute bargaining by the ginning mill owners, their profit is almost as same as that of the MSP. "They may quote Rs4,600 or Rs4,800 a quintal in the market. But when trucks are unloaded inside ginning mills premises, Rs100 are deducted citing that the moisture level. After that middlemen deduct another Rs100. If a farmer wants cash right away, an adatiya (agent), has to be contacted who charges a cut. Another Rs150 go as transport and weighing expenses. This leaves Rs4,300 or Rs4,500 a quintal in the farmers' hands," Rajesh Paladkar, a cotton grower and former sarpanch of Khorad village in Yavatmal district, said. He further said, "Even the labour cost for picking cotton at harvest has increased which adds another Rs800 a quintal to the expenses. Usually, farmer go for four-five rounds of cotton picking in a year but this time bollworm has reduced the yields, giving farmers an opportunity of only a couple of pickings." A villager, residing near Telangana border, said the farmers of his area are getting Rs5,000 a quintal. "For this, we have to cross the border to Telangana. After deducting other expenses, net gains come to Rs4,800 a quintal," said Gajanan Singewar of Patanbori village, around 30 kms from Telangana border. He said traders are preferring to stay at Telangana to avoid harassment by activists in Vidarbha. The rates there are slightly higher but the crop is down due to pink bollworm attack, he said. "The arrivals are normal but there is a buzz about shortage of cotton crop in coming days. Farmers are getting up to Rs4,800 a quintal but to break even the rates need to be at least 5,000 a quintal," said a trader at agriculture produce marketing committee in Wani Taluka of Yavatmal. Chintaman Bhoyar, also from Yavatmal, said he has not sold his produce yet hoping for the market price to improve. It is Rs4,600 a quintal now, that's not enough to recover the expenses, he said. "Only the best grade of cotton is fetching Rs4,600 to Rs4,800. For the rest, it is up to Rs4,200 a quintal only. Even the crop has come down to minimal levels, due to the bollworm attack. No fresh rounds of picking are taking place in the area," Vijay Ingle from Achalpur Tehsil in Amravati district, said. Some farmers did not even go for the second picking, he added.
Source: The Times of India
Hyderabad, December 10: India is on the verge of a looming soil crisis which can potentially impact its agriculture in the near future, says a report. A third of the total 350 million hectares has already turned problematic. Soil is turning either acidic, saline, sodic or alkaline. Tthe declining health of soil can have a big impact on agriculture productivity, sustainability and also human health, says a report brought out by a consortium of agriculture institutes.
World Soil Day
Soil is key to the ecosystem as it plays a vital role in carbon cycle and in storing and filtering water. The organic matter content, on an average, has gone down to a critical level of 0.3-0.5 per cent and several micro-nutrient deficiencies are surfacing in different parts of the country, the report observed on the occasion of World Soil Day on December 5. For India, which has over 17 per cent of the world population with limited land resources, the present situation warrants immediate attention and urgent remedial measures. A national policy should be framed to address the critical issue, suggested MANAGE (National Institute of Agricultural Extension Management), one of the institutes in the consortia. According to VP Sharma, Director - Information Technology, Documentation and Publication, MANAGAE, and other contributors, the Centre has been adequately briefed about the evolving situation. Countries such as Germany and Kenya have national soil policies. Two institutes — Institute of Soil and Water Conservation, Dehradun, and Indian Institute of Soil Sciences, Bhopal — are involved in studying some aspects of soil.
Low carbon content
Giving an example of the emerging crisis, Sarma said the carbon content in soil is less than 1 per cent in plains and around 2 per cent in hills States in India, compared with the world average of 4 per cent. The increasing salinity and decreasing carbon content do not bode well for the future of agriculture. The declining response ratios due to excess spraying of fertilisers, which leads to wasteful expenditure on fertiliser subsidy, only leads to loss of key national resources. This will affect human health as the agriculture produce is deficient in nutrition values. India has varied geological, climate and vegetation which gives it different soil types. It takes thousands of years to make one metre deep soil. Therefore, there is no option before the country but to halt and reverse the deterioration, so that the ability to feed billions and their nutrition needs is not severely impacted, the report says. The declining response ratios due to excess spraying of fertilisers, which leads to wasteful expenditure on fertiliser subsidy, only leads to loss of key national resources
Source: Business Line
BHARATPUR: For 18-year-old Shivani, stepping out of the confines of her house was once a challenge in itself. After some persuasion and a lot of willpower, she is now well equipped to think of building a future for herself. Belonging to Bharatpur, merely 180 kms from Jaipur in Rajasthan, Shivani started learning how to stitch at a skill training center in the city. Today, she has completed her 3-month training and has started working to earn a living for herself. Shivani is just one of those hundreds of women who are being trained at this skill center, facilitated by Lupin Human Welfare and Research Foundation. Trained under a scheme in collaboration with the Rajasthan Skill & Livelihoods Development Corporation (RSLDC), these women are stitching their way to glory. Not just the young, for middle-aged Mala Sharma too, this center has provided an opportunity to showcase her talent. With three young kids, of which two are in college, Mala had a lot of free time in hand. She enrolled herself for a three-month training and learned the art of tailoring, garment cutting, and fashion designing. She has been employed now by the center to bring her talent to use and earn a livelihood for herself. “I did the training a year back and about two months back, I got a call from the center asking me if I would be interested in working here. I immediately said yes,” she recalls. From making just shirt pockets to shirts and suits, the center takes orders from different cities. To complete these orders, it employs women who have been trained over time during these three-month sessions. “They get Rs 17-20 per piece that they create. They are able to earn nearly Rs 200 for themselves per day. This amount can even go up if their output increases per day. The income is clearly proportional to the speed with which they make the products,” an employee at the center said. These women are paid as per their choice – on a weekly or a monthly basis. Apart from giving employment opportunities at this center, they even send a group of 22 women to Jaipur for an advanced training with Raymonds. Depending on their performance in Jaipur, Raymonds also hires them to work in its factories. Recalling their journey from her house to now employees at Raymonds, Babita and Pinky say that they are paid well and feel much more confident of being able to live life independently. There is hope for women who cannot step out of their homes too. In 2014, Lupin Foundation adopted Korer village in Bharatpur. It took the machines to the women who wanted to work but did not have the means to travel to the city. Various courses were conducted on tailoring, ready-made garments production and embroidery. So much so that today, these women are making consignments that are being supplied to Srishti and Fabindia. Their consignments have also been exported to other countries including Spain, Dubai and Japan. A center has been created at Korer itself where there are 18 hi-tech jack machines with the help of which women create nearly 5000 garments per day. “A lot of problems of this country will be solved if women become independent. It is an extremely proud feeling for us that we have been able to export products to other companies. We are trying our best to reach out to more exporters to expand the reach of the products that we are creating here,” Executive Director of Lupin Foundation Sita Ram Gupta said. The foundation has partnered with USHA International to certify this ‘Tailoring and Garment Making’ programme and also to provide support services in designing as well as technical knowledge assistance. The foundation is also helping women to get support on credit and marketing assistance for dealing with bulk orders. With women taking charge of their lives, are the men in the family happy? “Initially they were a little apprehensive but then they came and saw us working. After that, they did not stop me from working. In fact, my husband is happy that I am now doing something for myself,” Mala proudly states. There is no strict criterion for selection for training. All that is needed is the girls applying should have at least passed Class 8 and should be in the age group of 18-35. “These are basic standards that we need to maintain so that we can select some of these women for the advanced training to Jaipur. We have to match up to their standards too,” a teacher at the center said. It is interesting to note is that three male craftsmen of village Korer left their full-time jobs in Jaipur and Delhi to help these women at the craft design and production centre. What we need is more of such strong-willed women and more of such encouraging men to support the ladies in the house.
Source: Zee News
Silk Fab’, the exhibition-cum-sale of silk handloom fabrics that enables an interface between weavers and consumers, commenced at Hotel Pacific near parade ground here from today. The exhibition is an initiative of the office of Development Commissioner for Handlooms, Ministry of Textiles, Government of India through National Handloom Development Corporation (NHDC) Limited to provide direct access to the handloom weavers to market their products to consumers in various cities of India. The representatives of various State Government bodies, apex Societies, primary handloom weavers Co-operative Societies and Handloom agencies would participate in the event. Apart from them, 60 agencies belonging to 11 States would attend the exhibition. In the 14 day long exhibition, visitors can select from dress materials made from Assam’s Muga Silk, Bihar’s Tassar, Kantha, Madhubani prints, Chhattisgarh’s Tribal work and Kosa Silk, Jammu and Kashmir’s printed Silk Sarees, Jharkhand’s Kantha and Kosa Silk, Karnataka’s Chintamani, Kasuti Work and Karnataka Silk, Madhya Pradesh’s Chanderi and Maheshwari, Maharashtra’s Paithani and Pune Sarees , Odisha’s Bomkai and Sambalpur, Uttar Pradesh’s Tanchoi, Jamdani, Jamawar (Banarasi) and West Bengal’s Baluchari, Kantha and Tangail silk. It is expected that this will a major exhibition. It is pertinent to mention here that the handloom sector of India employs more than 65 L people directly and indirectly which is next only to agricultural sector in the country. The art of handloom weaving has traditional values attached to it and each region has exquisite varieties. The uniqueness of silk products such as Pochampalli, Paithani, Kanjivaram, Banarasi, Jamdani, Baluchari, and Ikkat, to name a few attracts customers across the globe with exclusive weaves, designs and traditional motifs. The Govt of India has launched the "Handloom Mark" scheme for handloom products and "Silk Mark" for genuinely of silk products, to encourage and give a distinct identity to the products, apart from highlighting the uniqueness of the products. It also serves a guarantee for the buyer that the product being purchased is genuinely hand-woven.
Source: The Pioneer
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1359.36 |
USD/Ton |
-0.28% |
12/10/2017 |
|
VSF |
2144.77 |
USD/Ton |
0% |
12/10/2017 |
|
ASF |
2658.30 |
USD/Ton |
0% |
12/10/2017 |
|
Polyester POY |
1321.60 |
USD/Ton |
-0.85% |
12/10/2017 |
|
Nylon FDY |
3398.40 |
USD/Ton |
0% |
12/10/2017 |
|
40D Spandex |
5890.56 |
USD/Ton |
0% |
12/10/2017 |
|
Polyester DTY |
5709.31 |
USD/Ton |
0% |
12/10/2017 |
|
Nylon POY |
1563.26 |
USD/Ton |
-0.72% |
12/10/2017 |
|
Acrylic Top 3D |
3186.94 |
USD/Ton |
0% |
12/10/2017 |
|
Polyester FDY |
2794.24 |
USD/Ton |
0% |
12/10/2017 |
|
Nylon DTY |
1653.89 |
USD/Ton |
-0.45% |
12/10/2017 |
|
Viscose Long Filament |
3624.96 |
USD/Ton |
0% |
12/10/2017 |
|
30S Spun Rayon Yarn |
2839.55 |
USD/Ton |
0% |
12/10/2017 |
|
32S Polyester Yarn |
2040.55 |
USD/Ton |
0% |
12/10/2017 |
|
45S T/C Yarn |
2884.86 |
USD/Ton |
0% |
12/10/2017 |
|
40S Rayon Yarn |
2990.59 |
USD/Ton |
0% |
12/10/2017 |
|
T/R Yarn 65/35 32S |
2492.16 |
USD/Ton |
0% |
12/10/2017 |
|
45S Polyester Yarn |
2174.98 |
USD/Ton |
0% |
12/10/2017 |
|
T/C Yarn 65/35 32S |
2431.74 |
USD/Ton |
0% |
12/10/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
12/10/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
12/10/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
-0.12% |
12/10/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
12/10/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
-0.42% |
12/10/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15104 USD dtd. 10/12/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The European Union’s blacklisting of 17 tax-havens, including the United Arab Emirates (UAE) and Bahrain, may hit the operations of Indian banks in West Asia. Dubai (UAE) and Bahrain are key financial and banking centres in West Asia and Indian banks have a reasonable presence in these two jurisdictions. Though Indian banks have been lending predominantly to Indian clients in the UAE and Bahrain, some part of the loan book has local exposure. Experts say banks will become more selective in their credit appraisal process and they will have to ensure that their liquidity management is better managed in these jurisdictions as liquidity could suddenly dry up if European banks start pulling out.
Risk management is key
“Now, if there is going to be a setback to the local economy because of the European banks unwinding their operations, Indian banks have to, maybe, fine tune their risk management so that they at least don’t have local problems getting on to their balance sheets,” said former banker NS Venkatesh, who headed IDBI Bank’s first overseas branch in Dubai, between 2009 and 2011. The blacklisting of UAE and Bahrain by the European Union (EU) could have widespread repercussions and generate stress on local as well as foreign banks’ balance-sheets as no European financial institution would deal with any financial entity in the blacklisted jurisdiction, experts say. Per the Indian embassy in the UAE’s website, Indian banks with a presence in Dubai, including the Dubai International Financial Centre, are Andhra Bank, Axis Bank, Bank of Baroda, Bank of India, Corporation Bank, Indian Overseas Bank, IndusInd Bank, Oriental Bank of Commerce, Punjab National Bank, State Bank of India, ICICI Bank, IDBI Bank, and HDFC Bank. Venkatesh observed that if the UAE’s economy gets hit because of the EU action, it can come to haunt Indian banks’ balance sheets. “Most of the Indian corporates, we know, are in a big problem here (in India). So, these assets (financed by branches in these tax havens) will also face stress and strain. In addition, the local lending book there could also face stress and strain. This could lead to a terrible situation for the balance sheets of local branches of Indian banks there,” he said. The blacklisting of UAE and Bahrain by the EU could cause stress on local as well as foreign banks’ balance-sheets as no European FI will deal with an entity in a blacklisted location.
Source: Business Line
China's foreign trade saw robust growth in November, with both imports and exports beating expectations, official data showed Friday. Exports in yuan-denominated terms rose 10.3 percent year on year to 1.43 trillion yuan ($216 billion), according to the General Administration of Customs. Imports expanded 15.6 percent to 1.17 trillion yuan, leaving a trade surplus of 263.6 billion yuan. In November, total foreign trade volume rose 12.6 percent year on year to 2.6 trillion yuan. In the first 11 months, foreign trade volume rose 15.6 percent from a year earlier to 25.14 trillion yuan. The export data was well above forecast, and was mainly a result of increased overseas consumption as the holidays draw near, according to Deng Haiqing, an analyst with JZ Securities. Customs data reflected the improved trade structure. In the first 11 months, general trade expanded 18.1 percent year on year to 14.18 trillion yuan, accounting for 56.4 percent of total trade volume. Trade of private enterprises grew 16.9 percent to 9.68 trillion yuan in the first 11 months, accounting for 38.5 percent of the total, and 0.4 percentage points higher than the same period last year. Despite rising protectionism and anti-globalization sentiment, China's imports and exports with major trade partners remained strong. During the first 11 months, trade with the European Union gained 16.2 percent year on year to 3.78 trillion yuan, accounting for 15 percent of the total. Trade with the United States expanded 16.5 percent to 3.58 trillion yuan, accounting for 14.2 percent of the total. Customs data also showed that a leading indicator for China's exports rebounded from 41.6 to 41.8 month on month in November, signalling positive potential in exports.
Source: China Daily
Bangladesh's garment export to the US fell in the 10 months into October this year with higher shipments from competing countries such as China, India and Vietnam. The country's apparel shipment to its single largest export destination declined 4.22 percent year-on-year to $4.54 billion, according to data from the US Department of Commerce. Indonesia, South Korea and China also experienced a fall to the US market. China, the global leader in apparel exports, shipped $32.89 billion worth of garments to the US, down 0.58 percent year-on-year, according to the data. Indonesia's export fell 2.85 percent to $4.09 billion and South Korea's 3.71 percent to $733 million. On the other hand, India sent $6.36 billion worth of garments to the US, up 3.44 percent year-on-year. Vietnam's exports rose 7.07 percent to $10.36 billion, Pakistan's 1.74 percent to $2.31 billion and Mexico's 7.64 percent to $3.99 billion. In the 10-month period, the overall export to the US from Bangladesh also fell, by 4.09 percent year-on-year to $4.87 billion. Considering the garment export growth to the US, Bangladesh now stands at sixth behind China, Vietnam, India, Pakistan and Mexico whereas the country's used to be ranked third to fourth in 2016. However, imports from the US to Bangladesh have been rising in the recent months on the back of capital machinery imports for the garment sector. Bangladesh imported goods worth $1.31 billion from January to October, which was $905.7 million in the full year of 2016, according to the data. Local businesspeople blame the fall in the garment exports on the lack of infrastructure which hampers quick delivery of goods to the retailers in the US. For the international market, India has brought down apparel prices to the level of Bangladesh by launching stimulus packages for the garment sector although the labour cost in India is higher compared to Bangladesh, said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association. American giants GAP and Walmart, the biggest buyers for Bangladesh, have recently shifted some work orders to India because of quicker lead-times, which is also responsible for the fall in the garment exports to the US, he said. He, however, did not specify the amount of work orders that have shifted from Bangladesh. Rahman said Bangladesh's garment makers import a huge amount of fabrics from India and have to spend a lot of time and go through a lot of hassles for the release of goods at Benapole land port, Chittagong port and Hazrat Shahjalal International Airport. “As a result, the local garment makers can't maintain the lead-time and ultimately lose the work orders from the retailers and brands. So, we need to improve the port situation to perform well in the international markets.”
Source: Daily Stars
THE travails of Nigeria’s textile industry were rehashed recently at a seminar organised by the Nigerian Institute of Social and Economic Research, Ibadan. For a once thriving industrial sub-sector that has defied various policy measures to resuscitate, ongoing and other measures suggested signpost some hope. Success will, however, depend on tested initiatives, creativity and strong political will to see them through. Those at the monthly NISER seminar tagged, “Competitiveness of the Nigerian Textile Industry,” recalled that the problems that had crashed the local textile and garment industry were well-known and still persistent. Apart from smuggling, high costs, lack of power, shortage of locally-sourced raw materials, prohibitive borrowing rates, inconsistent policies and low patronage. Researchers highlighted the devastating impact of signing on to the World Trade Organisation compact. Bashir Adelowo, a senior researcher with NISER, recalled that WTO’s trade liberalisation policies, to which Nigeria signed on in 1997, had failed to revamp the industry, instead, favouring rich and major exporting countries like China and India, which have since taken control of the market. But with its estimated population of 186 million, advantage in cotton farming, the sub-Saharan African market and the popularity of its African prints – Ankara and Adire – reviving the textile industry is one key to the resurgence of Nigeria’s manufacturing sector and the economy. The federal and state governments need to adopt workable, consistent policies and muster the political will to actualise the dream. Typically, the industry is a mass employer of labour, directly in factories and through the value chain, including farm labour growing cotton, jute and silk. It lies at the heart of India’s industrialisation, where it is the second largest employer after agriculture second to China in global textile manufacturing, generates about 45 million jobs and 27 per cent of the country’s foreign exchange inflows, according to India Brand Equity Foundation. China, the world champion, produced 54.36 per cent of global textiles in 2014, accounting for $274 billion of global textile apparel sales in 2013. The World Bank says low income economies like Nigeria should leverage their cheap labour to develop textile industries. Bangladesh, a developing country with a population of 162.95 million and GDP per capita of a measly $1,524, defied expert forecasts to beat off competition from China and India after WTO lifted textile quotas in 2005 to export $28 billion worth of textiles in 2013, a sector that accounts for over 80 per cent of its export earnings. Textile was one leg of the tripod that drove the Industrial Revolution in England, the others being iron founding and steam power. Manchester and Lancashire grew to world fame on the basis of textiles. Policies need to be put in place to recover and surpass past levels in the collapsed local textile industry in Nigeria that, at its peak, 1970s–1990s, featured about 130 modern factories and supported numerous other ancillary firms, providing about 350,000 direct jobs and 1.2 million indirect jobs – farmers, suppliers, transporters, dealers, traders and exporters – according to the Nigerian Textiles Manufacturing Association. Between 25 and 30 per cent of local production was exported, said the Central Bank of Nigeria in its 1995 Annual Report with over 60 per cent of raw materials sourced locally, thereby supporting agriculture. Alas, the story has since changed with only about 33 factories still standing and the local cotton industry comatose. Chinese, Indian and other foreign fabrics have since taken over our market. The National Bureau of Statistics revealed that in the three months to September 2016, Nigeria spent N24.7 billion importing textiles N1.29 trillion annually on such imports, according to the NTMA. The government should clamp down on smuggling that operators say accounts for 80 per cent of our local market in defiance of a ban and import restrictions re-imposed since 2005. There should be a thorough reform and massive shake-out at the Nigerian Customs Service to rid it of corruption. The Federal Government should rally all stakeholders to revive and prosecute the National Cotton Textile and Garment Enterprise Policy under the Nigerian Industrial Revolution Plan launched in 2015, but has been sabotaged by the lack of interest by the states. Measures such as intervention funding, including the N100 billion provided by the CBN since 2009, may not fly in an operating environment with inadequate electricity, a forex crisis and lack of lubricating oil. A report found that some beneficiaries of the intervention fund given at nine per cent interest simply diverted it to servicing existing debt obligations instead of acquiring new machinery and inputs. The N51 billion stimulus the government said it set aside in 2017 and a new move to provide lower interest loans in 2018, may not go far unless the crucial issues bordering on the adverse operating environment are addressed. National interest should be paramount: Nigeria should make massive job creation and development of agriculture, mining, manufacturing and non-oil exports the pre-eminent objective of all policies. We should protect our agriculture and local industries. Twenty-six of our 36 states are suitable for cotton growing. We have to renegotiate with the WTO or pull out of the 164-nation global organisation. Both the World Bank and the IMF have criticised it for favouring rich nations at the expense of developing countries. The United Nations Conference on Trade and Development said market distortions caused by its free trade policies cost developing countries $700 billion in lost exports annually, with the World Bank adding that its textile quotas of 1994-2005 enriched advanced economies, but cost developing nations 27 million jobs and $40 billion in lost exports each year. Nigeria’s market is said to sustain 2.5 million jobs and more in China, India, Bangladesh, Turkey and Europe. Through domestic and foreign content textile export, we must increase our participation in global value chain. It has been shown that trade-induced accumulation of productive knowledge creates increasing productivity in the economy. President Muhammadu Buhari should mobilise the economic management team and relevant ministries, departments and agencies to implement existing policies for Nigeria to become a world’s leading textile and apparel producers and exporters.
Source: The Punch
Zimbabwe Clothing Manufacturers Association (ZCMA) chairman Mr Jeremy Youmans said although the 2018 National Budget proposals presented by Finance and Economic Development Minister Patrick Chinamasa highlighted positives with the removal of various barriers to trade and investments which were stifling the growth of the economy, there is still room for improvement. “The budget had a positive focus with particular reference to removing some of the barriers to trade and investment which are encumbering the local economy. As long as the interventions are implemented, it will be up to all stakeholders to ensure that growth potential can be realised,” said Youmans. He said it was pleasing to note that the Clothing Manufacturers Rebate (CMR) was extended for a further two years, along other manufacturers’ tax refunds but hinted that there was a need to have an all encompassing CMR, which accommodates all players in the clothing sector. “We are pleased that the CMR was extended for a further two years, along with the other manufacturers’ rebates. This is a key support measure for the sector. However, we have been lobbying for four years now for reform of the current CMR to enable full inclusion of the sector in the rebate scheme,” said Mr Youmans. He said when CMR was implemented the Zimbabwe Revenue Authority (Zimra) imposed punitive conditions, which made it difficult for small players which make up the majority in the sector to participate and enjoy the benefits of the rebate scheme. “We had thought that the Ministry of Industry and Commerce and the Ministry of Finance had understood the necessity for these reforms, but they have included no reforms in the Budget statement. Basically, the lack of reforms means that only the manufacturers with larger resources participate in the scheme. “The majority of clothing manufacturers are SMEs who do not have the resources to meet the onerous rules. This prevents the support measure from having its full effect and retards economic growth, higher employment and value addition which would be created in the sector if the scheme was made more inclusive,” said Mr Youmans. He further said the proposed increase of Customs Duty on Cotton Fabric from 10 percent to 30 percent plus $2,50 per kilogramme (kg), with effect from 1 January 2018 was likely to increase the cost of manufacturing a garment locally by over 50 percent. In his National Budget proposals announcement Minister Chinamasa said the proposed increase of Customs Duty on Cotton Fabric was aimed to protect the textile manufacturing industry from unfair competition due to an influx of cheap imported fabrics. “Notwithstanding support measures availed by Government to the textile manufacturing industry, the sector continues to face competition, due to the influx of dumped cheap imported fabrics. This has been compounded by limited administrative capacity to identify the various types of fabrics. Importers have, thus, used the capacity gap to declare imported products under tariff codes which attract lower rates of duty,” he said. Apart from proposing for an increase of Customs Duty on Cotton Fabric, Minister Chinamasa further proposed to introduce a Fabric Specification Declaration Form that would be used in the verification of fabrics to minimise false declaration. However, Mr Youmans said the country’s clothing sector was experiencing a growth though it was being severely weakened by lack of adequate raw materials locally as well as lack of allocations of foreign currency to import the same. “Given the correct mix of support measures, clothing will be a significant driver of economic recovery in Zimbabwe, just as it has in many other economies around the world. The local textile industry faces many challenges. “It employs around 2 500 people but less than 800 of these are involved in making products which are then utilised in the clothing sector. The rest make a wide range of finished goods, such as blankets, nets and ropes, twine and cordage, elastics and tapes, socks and jerseys among others,” said Mr Youmans. He said the textile industry was very capital intensive and for it to be competitive there was a need for it to be capacitated so as to re-equip with latest machinery since most of it was now archaic. “Most of the cotton yarn produced is exported, with the remainder being used to make some knitted and woven fabrics, which are then sold into the clothing sector but deliveries are poor and quality is inconsistent and unreliable. Prices are high and are increased regularly,” said Mr Youmans. He said ZCMA supports the Cotton to Clothing Strategy, which was premised on developing a cotton value chain based on high quality cotton lint value added through the various stages of the value chain to supply niche markets. “Zimbabwean manufacturers can compete in these niche international markets but need the quality raw material to do that. You cannot make a quality garment from poor quality fabric and you cannot make good quality fabric from poor quality cotton lint. So the focus on quality must start with the farmer. “For the farmers to produce quality, they need to be able to utilise a full package of inputs and get a viable return from the crop they produce. So we welcome plans to grow the crop, but this must include plans to focus on quality to ensure the maximum value addition and yield to ensure viability to the farmer,” said Mr Youmans. He said the Association of Cotton Value Adders of Zimbabwe, which was formed to implement the Cotton to Clothing Strategy and oversee a lot of interventions in the cotton value chain, was currently incapacitated.“Given a full range of high quality cotton fabrics made from high quality ecological cotton, being available to the clothing sector, we could market garments in numerous niche international markets. A large crop of quality cotton lint will also be an attraction to investors in the textile sector,” said Mr Youman. – Sunday News
Source: The Zimbabwe mail
South Korea will host the country’s only sewing machine exhibition, GT Korea, from November 14, 2018 at Gyeonggi for three days. Nearly 120 companies are expected to set up 400 booths to attract buyers from countries like Taiwan, Indonesia, Vietnam. Product innovation for smart fibre and technical textile market will be the focus of the event. The event will display items related to sewing machines and parts, textile machinery, various fabrics, industrial textiles and nonwovens. It is expected to help South Korean manufacturers to come in contact with buyers from various countries and fetch business deals. The event might also help in creating its identity as a sewing powerhouse. The show aspires to grow as a professional trade show. Despite being one of the biggest manufacturers of sewing technology in the world, no specialised international-level exhibition has been held in South Korea since 2005, due to the recession in the domestic market. The country hosted its previous domestic sewing machine related exhibition, named as Seoul International Sewing Machinery Exhibition (SIMEX). With the help of the questionnaire survey on related companies in the monthly Bobbin Journal, more than 90 per cent of companies felt the necessity and significance of hosting the sewing machine exhibition in Korea, mentions the press release of GT Korea 2018. GT Korea 2018 is being organised by Korea Sewing Machinery Industrial Association along with Seoul Messe Internationl Ltd, Bobbin Journal and JES media Inc.
Source: Fibre2Fashion
