The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has called upon the government to devise appropriate mechanism to shorten the procedure and expedite disbursal of the GST refund to the exporters. In a letter to the authorities SRTEPC pointed out that as per the Section 16 of the IGST Act 2017 the provisional refund of 90% of total refund claim should be paid within 7 days after giving the acknowledgement of the refund application. Whereas the current GST refund procedure is extremely slow. After the sending the goods from manufacturing units to Customs it takes about 7 days for Customs clearance and have “Let Export” orders. Another 7 days will be taken for getting the shipping bills generated/ signed from the Customs department. Post shipment exporters have to file returns in GSTR – 1 and after that they have to apply for GST refund through one of the existing 2 procedures of either paying IGST or without paying IGST by submitting Bond or LUT in Form GSR RFD – 11. For issuing the acknowledgement of the refund application it takes 14 to 21 days. As per the existing procedure the refund will be affected only after 7 days from the date of issuing of Refund Application Acknowledgement. This entire procedure takes almost 45 to 60 days time. This has blocked substantial amount of working capital and creating problem of liquidity shortage with the exporters for maintaining their existing business. GST refund on Exports which had taken place/ executed in July 2017 has not been fully refunded yet SRTEPC said. Hence the council has said that government should devise appropriate mechanism to shorten the procedure and expedite disbursal of the GST refund to the exporters. On accumulation of huge unrebated Input Tax Credit (ITC) SRTEPC noted that 12% GST on yarns and 5% on fabrics has created huge accumulation of unrebated ITC at fabrics stage. This has been creating an additional cost burden with the weavers post GST and also increasing the cost of fabrics making these fabrics uncompetitive. Section 54 (3) of the CGST Act 2017 allows refund of unutilised ITC in the case of (a) zero rated supplies made without payment of tax and (b) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies. Government should therefore address this anomaly urgently to encourage the MMF textile segment SRTEPC stressed. With regard to the inadequate Duty Drawback Rates to the MMF textile products SREPC pointed out that Post- GST there are various duties such as transmission charges electricity duty cross subsidy on electricity bills water cess LBTs road tax labour cess etc. which are not subsumed with GST. Average percentage of such duties/ taxes of the MMF textiles is over 5% which are unrebated. Current Duty Drawback rates are deficient to the taxes/duties paid by the exporters in this segment. Therefore SRTEPC has requested that Government should consider revising the DBK.
Source : Tecoya Trend
Textile industry body CITI today called for imposing safeguard measures to prevent routing of cheaper fabrics produced in countries like China through Bangladesh and Sri Lanka, that have free trade pacts with India. In a statement, the Confederation of Indian Textile Industry (CITI) observed that the country's garment industry will face stiff competition due to garments imported, especially from Bangladesh where production cost is already less than India. CITI stated that according to the latest data released by Bangladesh Export Promotion Bureau, India's import of garments from Bangladesh has reached USD 87.4 million during July to November 2017, indicating a sharp increase of 56 per cent from USD 55.92 million during the same period last year. CITI Chairman Sanjay Kumar Jain pointed out that there is "an urgent need to impose safeguard measures such as Rules of Origin, Yarn Forward and Fabric Forward Rules on the countries like Bangladesh and Sri Lanka that have free trade agreements (FTAs) with India to prevent cheaper fabrics produced from countries like China routed through these countries". During July to November 2017, India's imports of knitted apparel from Bangladesh increased by 69 per cent while the imports of woven apparel increased by 51 per cent corresponding to the same period last year, he said. Jain highlighted that the basic custom duty on import of garments from Bangladesh is exempted. In the Pre-GST scenario, import of garment from Bangladesh was attracting cost of Rs 77 per piece (where MRP Rs 999 per piece) and Rs 116 per piece (where MRP is Rs 1,500 per piece) in the shape of CVD + education cess thereon. However, post-GST (goods and services tax), there is no cost for import of garments from Bangladesh. Similarly, in the case of import of garment from other countries, the cost has been substantially reduced by Rs 77 per piece and Rs 116 per piece where MRP is Rs 999 per piece and Rs 1,500 per piece respectively, he said. "Garment manufacturers in India have to pay duty on imported fabrics, while Bangladesh can import fabric from China duty free and convert them into garments and sell to India duty free. "This is putting Indian garment industry at a major disadvantage and it is feared that this figure will go up further in the coming days as more Indian Brands shift sourcing from India to low cost duty free countries like Bangladesh and Sri Lanka," the textile body said.
Source: Business Standard
Former RBI Governor C Rangarajan on Monday said he expects the economy to grow about 6.5 per cent this fiscal. “Indian economy is coming out of a phase of slow growth. Going ahead, over the next two quarters the rate of growth will be slightly higher and for the fiscal year as whole, it should be 6.5 per cent,” Rangarajan told BusinessLine on the sidelines of ‘Inclusive Finance India Summit 2017’ here. The summit saw four former RBI Governors — Rangarajan, YV Reddy, Bimal Jalan and Subbarao — sharing a platform that would discuss financial inclusion issues over two days. Former RBI Deputy Governors Subir Gokarn and HR Khan were also present on the occasion. Rangarajan said even the 6.3 per cent GDP growth in the second quarter is better than before although certainly not very high. Indian economy had recorded 7.1 per cent growth in 2016-17 and 5.7 per cent in first quarter this fiscal. On inflation, Rangarajan said it is difficult to forecast short-term inflation. “My own view is probably inflation will be little over 4 per cent (by March 2018) as one does not know what will happen to oil prices. But the improvement in agriculture should have favourable impact on agriculture prices,” he said. Earlier, speaking at the summit, Rangarajan described as “somewhat disturbing” the kind of consolidation that is happening among regional rural banks, stating that the local character of the RRBs is getting diluted by such an approach. This is somewhat of regression than forward movement, Rangarajan said
Source: Business Line
The rupee continues to trade strong amid volatility. Though the currency reversed lower after touching a high of 64.22 on Tuesday last week, the down-move was short-lived. The rupee fell to a low of 64.60 by Thursday but managed to recoup almost all the losses,closing on a flat note for the week at 64.37 on Monday.
Week of the central banks
The coming week is packed with a series of major central bank policy meetings and key macroeconomic data releases on the domestic front. The rupee, which has been broadly stable and range-bound between 64.22 and 64.62 over the last couple of weeks, might witness volatility on the back of the central bank meetings and the data releases. It will begin with the US Federal Reserve meeting on Wednesday which is expected to increase rate by 25 basis points. The market has largely factored in the rate hike. However, what the outgoing Fed Chair Janet Yellen speaks in the press conference could be of significance. This will be followed by the European Central Bank (ECB) and the Bank of England (BoE) meetings on Thursday. On the domestic front, the Consumer Price Index (CPI) and the Index of the Industrial Production (IIP) data are due for release on Tuesday. It will be followed by the Wholesale Price Index (WPI) inflation number on Thursday.
Dollar outlook
The dollar index surged over a per cent last week breaking above the key resistances at 93.50 and 93.65. The index tested 94 levels, but came off slightly on Monday.Key supports between 93.65 and 93.50 and at 93.40 may limit the downside in the near term. An upward reversal from this support zone and an eventual break above 94 can boost the momentum. It will then increase the likelihood of the index rallying to 94.5 or 95 over the short term. Such an upmove in the dollar index may limit the strength in the rupee.
Rupee outlook
The near-term outlook remains bullish for the rupee. The currency can strengthen to test the next key resistance at 64.18 well ahead of the US Federal Reserve meeting. Whether the rupee breaks this hurdle or not will determine the next move. If the rupee manages to breach 64.18, it can gain momentum. In such a scenario, there is a strong likelihood of the currency strengthening further to 64 and even 63.85 or 63.80. The region between 63.85 and 63.80 is a strong medium-term resistance zone which is likely to halt the rally in the rupee. An immediate break above 63.8 looks less probable at the moment. On the other hand, if the rupee reverses lower from 64.18 in the coming days, it can weaken to 64.50 and 64.60 once again. A strong break below 64.60 can drag the rupee further lower to 64.75 and 64.90.
Source: Business Line
Finance Minister Arun Jaitley on Monday re-affirmed the government’s commitment to follow the fiscal deficit roadmap and meet the 3.2 per cent target for 2017-18. “We are following the roadmap of fiscal consolidation under which the fiscal deficit, as a ratio of GDP, stood at 3.9 per cent in 2015-16 and 3.5 per cent in 2016-17 and is budgeted to be 3.2 per cent for the current financial year,” he said at a pre-Budget meeting with economists. His comments come at a time when government finances are under pressure, with tax collections not keeping pace with expenditure. The fiscal deficit between April and October this year rose to 96.1 per cent of the Budget Estimate. Jaitley also expressed confidence in the economic situation after demonetisation and the rollout of the Goods and Services Tax and said the second-quarter GDP growth marks the reversal of the declining trend of growth witnessed in the last few quarters. Meanwhile, the IT sector sought tax breaks and measures to combat visa restrictions to make the software industry more globally competitive, at a pre-Budget meeting. “We discussed issues related to Place of Effective Management, service tax, and tax refunds,” Nasscom President R Chandrashekhar told reporters after the meeting.
Source: Business Line
The Rs 15,000-crore denim industry says 30-40 per cent of its operating capacity has been shut since the goods and services tax (GST) was implemented, due to weak domestic demand and reduced potential for export. The government has levied 12 per cent GST on branded garments beyond the maximum retail price of Rs 1,000 and five per cent below this threshold. Denim demand from local consumers and importers has fallen, with manufacturers either having to shut down or operate at reduced capacity. “Since the GST implementation from July 1, the denim industry has temporarily closed down 30-40 per cent of its operating capacity across the board. If this continues, there can be more production cuts,” said Sharad Jaipuria, chairman, Denim Manufacturers Association. The denim fabric manufacturing industry had, over the past decade, been growing at a 15 per cent compounded annual rate. Installed capacity is 1.5 billion metres a year, second largest in the world, after China. With annual sale of Rs 15,000 crore, this industry employs around 400,000 workers directly, besides the indirect spinoff. “Denim manufacturing hubs have gone under a massive slowdown due to the liquidity crunch after demonetisation and slow acceptance of GST by small players to become part of the formal economy. As 85 per cent of the fabric is sold in the the domestic market, denim fabric mills are badly hit,” said Akhilesh Rathi, Director, Bhaskar Denim. The number of denim fabric mills was 30 in 2012 it is now 46. Denim fabric production capacity was 800 million metres in 2012 and is now 1,500 mn metres, with another 150 mn metres of new capacity in the pipeline for expansion. According to Amit Dalmia of R&B Denims, the upstream activities of garment sewing and washing in small scale industry hubs will take a while before they change for working smoothly with the formal banking system. “We are not foreseeing any short-term recovery of the market,” he said. India exports denim fabric of 200 mn metres annually. The value of export was $316 mn in 2016-17, down 11 per cent from $335 mn in 2014-15. Atul Singh, Director at the Ashima Group, says the government needs to announce immediately some enhancement in duty drawback rates and extend some more benefits under the Returns of State Levies scheme, the Merchandise Export from India Scheme, the focus product and focus market schemes.
Source : Business Standard
Mumbai, December 11: With the crisis triggered by the attack of pink bollworms on cotton crop in Vidarbha and Marathwada region of Maharashtra becoming severe, the Opposition parties are now demanding Rs. 25,000 per acre as compensation for framers. The Opposition parties have also said that the State government’s purchase of foodgrains, pulses and soyabean from farmers has been very poor. They have demanded that the farmers should at least get the Minimum Support Price for their produce. The Leader of Opposition in Maharashtra Legislative Council, Dhananjay Munde, told reporters that a compensation of more than Rs. 25,000 is a must, and that he had personally written to the Chief Minister of Maharashtra, Devendra Fadnavis, when the Centre had warned about the pink bollworm attack, he said.
Procurement
Munde, who is a senior Nationalist Congress Party leader, said that figures of purchase from State government-run warehouses of foodgrains and soyabean are not very not very encouraging. Till date, at the government centres, only 2.16-lakh quintals of soyabean have been procured, out of the 357-lakh quintals produced in the State. Even the pronouncement of urad dal (black gram) is only 2-lakh quintal, while its productionis 14-lakh quintals. Moong dal’s (split green gram) procurement is even lower at only 39,000 kg, while production is at 13-lakh quintals. The actual extent of cotton crop damage is still being evaluated in the State. The Chairman of Maharashtra government’s special task force on the agrarian crisis, Kishore Tiwari, has estimated the loss at Rs. 10,000-crore in Vidarbha and Marathwada. The Chairman of State Agriculture Price Commission, Pasha Patel, told BusinessLine that the actual cotton crops losses are being still being evaluated and that the State government is willing to provide compensation to the farmers. Preliminary reports suggest that farmers in Marathwada are better covered under cotton crop insurance than those in Vidarbha, he said. Patel suggested that the seed companies, who have been making profits over the years, must now take the lead and provide some monetary compensation to the cotton farmers.
Source: Business Line
New Delhi, Monday, December 11, 2017: Shri Sanjay Kumar Jain, Chairman CITI stated that according to the latest data released by Bangladesh Export Promotion Bureau, India’s import of garments from Bangladesh has reached US$ 87.4 mn. during July to November 2017, indicating a sharp increase of 56% from US$ 55.92mn during the same period last year.
Values in US$ Million
|
Commodity |
July to November 2016 |
July to November 2017 |
Growth (%) |
|
Knitted Apparel |
17.9 |
30.1 |
69% |
|
Woven Apparel |
38.1 |
57.3 |
51% |
|
Total |
55.9 |
87.4 |
56% |
Data Source: Bangladesh Export Promotion Bureau
During July to November 2017, India’s imports of knitted apparel from Bangladesh increased by 69% while the imports of woven apparel increased by 51% corresponding to the same period last year. Mr. Jain highlighted that the basic custom duty on import of garments from Bangladesh is exempted. In the Pre-GST Scenario, import of garment from Bangladesh was attracting cost of Rs. 77/pc (where MRP Rs. 999/pc) and Rs. 116/pc (where MRP is Rs. 1500/pc) in the shape of CVD + education cess thereon. However, Post- GST scenario, there is no cost for import of garments from Bangladesh. Similarly, in the case of import of Garment from other countries, the cost has been substantially reduced by Rs.77/pc and Rs.116/pc where MRP is Rs.999/pc and Rs.1500/pc respectively. Hence, Indian garment industry will face stiff competition from imported garments especially from Bangladesh where production cost is already less than India. Shri Sanjay Kumar Jain pointed out that there is an urgent need to impose safeguard measures such as Rules of Origin, Yarn Forward and Fabric Forward Rules on the countries like Bangladesh and Sri Lanka that have FTAs with India to prevent cheaper fabrics produced from countries like China routed through these countries. Garment manufacturers in India have to pay duty on imported fabrics, while Bangladesh can import fabric from China duty free and convert them into garments and sell to India duty free. This is putting Indian garment industry at a major disadvantage and it is feared that this figure will go up further in the coming days as more Indian Brands shift sourcing from India to low cost duty free countries like Bangladesh and Sri Lanka.
Source: CII Press Release
Notwithstanding the South China Sea dispute, India, China and Russia on Monday agreed to support freedom of navigation and overflight rights based on the principles of international law in an effort to boost maritime trade. This was reiterated during the 15th Meeting of the Foreign Ministers of Russia, India and China, also known as the RIC. Foreign Minister of China Wang Yi and his Russia counterpart Sergei Lavrov held the meeting with Minister of External Affairs Sushma Swaraj here. “Recognising the growing importance of maritime-trade in an increasingly globalised world, we support freedom of navigation and overflight rights based on the principles of international law, particularly UNCLOS (United Nations Convention on the Law of the Sea),” said the joint communiqué issued after the meeting.
Freedom of navigation
The statement assumes importance considering that freedom of navigation has come under threat with China ignoring The Hague Tribunal’s verdict on South China Sea. Ever since South China Sea dispute escalated, India has always asserted adherence to international maritime law. On the issue of tackling terrorism, the joint communiqué called for “swift and effective” implementation of existing international commitments on countering terrorism, including the UN Global Counter-Terrorism Strategy, relevant UN Security Council resolutions and targeted sanctions relating to terrorism and the FATF International Standards worldwide. “While discussing terrorism, I put across my view that significant rise in acts of terrorism by terrorist organisations like Taliban, Daesh (ISIS), Al-Qaeda, and LeT directly undermine international peace and security and endanger ongoing efforts to strengthen the global economy and ensure sustainable growth and development. India strongly recommends a comprehensive policy for dealing with global terrorism,” Swaraj said during her address at the meeting. She said the policy on global terrorism should include dealing with extremism, countering religious fanaticism, preventing recruitment of terrorists, disrupting terrorist movements, stopping all sources for financing of terrorism, stopping flow of FTFs (Foreign Terrorist Fighters), dismantling terrorist infrastructure, and countering terrorist propaganda through the Internet, but we should not limit ourselves to these only. In another significant decision, the RIC Foreign Ministers also welcomed the beginning of the implementation of the Joint Comprehensive Plan of Action (JCPOA) agreed upon between E3/EU+3 and Iran in Vienna on July 14, 2015 regarding Iran’s nuclear programme. “We welcome the fact that this complex issue was resolved through diplomatic means thus strengthening regional and global security as well as nuclear non-proliferation. We express readiness to exert all efforts in order to ensure sustainable implementation of the JCPOA and engagement of Iran in normal economic and political cooperation,” it said.
Source: PTI
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1348.21 |
USD/Ton |
-0.83% |
12/11/2017 |
|
VSF |
2145.05 |
USD/Ton |
0% |
12/11/2017 |
|
ASF |
2658.66 |
USD/Ton |
0% |
12/11/2017 |
|
Polyester POY |
1309.69 |
USD/Ton |
-0.91% |
12/11/2017 |
|
Nylon FDY |
3398.85 |
USD/Ton |
0% |
12/11/2017 |
|
40D Spandex |
5815.81 |
USD/Ton |
-1.28% |
12/11/2017 |
|
Polyester DTY |
3625.44 |
USD/Ton |
0% |
12/11/2017 |
|
Nylon POY |
5710.07 |
USD/Ton |
0% |
12/11/2017 |
|
Acrylic Top 3D |
1555.92 |
USD/Ton |
-0.48% |
12/11/2017 |
|
Polyester FDY |
3172.26 |
USD/Ton |
-0.47% |
12/11/2017 |
|
Nylon DTY |
2568.02 |
USD/Ton |
-8.11% |
12/11/2017 |
|
Viscose Long Filament |
1639.00 |
USD/Ton |
-0.91% |
12/11/2017 |
|
30S Spun Rayon Yarn |
2824.82 |
USD/Ton |
-0.53% |
12/11/2017 |
|
32S Polyester Yarn |
2039.31 |
USD/Ton |
-0.07% |
12/11/2017 |
|
45S T/C Yarn |
2885.25 |
USD/Ton |
0% |
12/11/2017 |
|
40S Rayon Yarn |
2175.26 |
USD/Ton |
0% |
12/11/2017 |
|
T/R Yarn 65/35 32S |
2416.96 |
USD/Ton |
-0.62% |
12/11/2017 |
|
45S Polyester Yarn |
2975.88 |
USD/Ton |
-0.51% |
12/11/2017 |
|
T/C Yarn 65/35 32S |
2492.49 |
USD/Ton |
0% |
12/11/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
12/11/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
12/11/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
12/11/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
12/11/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
12/11/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15106 USD dtd. 11/12/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India can draw its strength from the African countries which have decided to strongly oppose negotiations on any new issue, such as e-commerce and transparency in domestic regulation, that developed countries may try to initiate in the on-going World Trade Organisation’s eleventh Ministerial Conference (MC 11) in Buenos Aires. “We are encouraged to see that the Trade Ministers from African countries have reinforced their stand opposing negotiations on new issues at the MC 11. This completely gels with the position India has been taking,” a government official said. On Sunday, just before the formal launch of the MC-11, the African Group of more than 40 countries held their Ministerial meeting to build on their unity. Later, in a briefing with the Civil Society Organisations (CSO) from the continent, the representative from the African Group pointed out that there was unanimity amongst members that rules in e-commerce could divide Africa and make it impossible to develop its digital economy. “Electronic trading is good, but the mistake should not be made between binding rules in the multilateral space and trading electronically and that the two are different,” the representative was quoted in a press release by African CSOs. India, too, has opposed proposed negotiations on e-commerce on similar grounds. This was an important topic for discussion at a lunch hosted for developing countries on Sunday by Commerce and Industry Minister Suresh Prabhu that included prominent African countries like Kenya, Benin, Burkina Faso, Egypt and South Africa. The African Group has also opposed proposals seeking that any measure in the area of domestic regulation must be published to ensure ‘transparency’ and allow entities to comment and their interest taken into account. The proposal also requires that the measure must be based on ‘objective criteria’, and be ‘reasonable’. “These are intrusive and eroding in terms of the capacity of African governments to regulate,” the representative from the African Group said. This, too, is reflective of India’s position which has rejected a US proposal that members be penalised if there is a delay in their notification of measures to the WTO.
Source: Business Line
Karl Mayer, Germany’s leading textile machinery firm, has announced that the company has officially opened the new workshop in Vietnam on November 13, 2017, after nine months of sufficient preparation. Karl Mayer, a market leader in textile machinery building, offers perfect solutions for warp knitting, technical textiles and warp preparation for weaving. On the day of opening ceremony, representative from Illies, Kuna Robert and Wu Chun Yan, the trainers who are providing courses for Vietnam workshop from Karl Mayer, and Eddy Ho, sales manager of Karl Mayer Hong Kong welcomed the participants of the first phase of workshop. The visitors, customers from Hanoi and Ho-Chi-Minh-City, attended the premiere event held from 13 to 17, November 2017, followed from a second one, held from 20 to 24, November 2017. Each of them took place in Ho-Chi-Minh-City and was attended by six participants. Karl Mayer is devoting to expand the Southeast Asian market, so that more and more Vietnamese manufacturers purchase Karl Mayer warp knitting machines. In order to meet the current market demand, Karl Mayer will provide more product-related learning courses to help customers getting familiar with the theory and operation of Karl Mayer machine. Trainees of Karl Mayer workshop Vietnam will be attending a one week WKB training course, including machines theory, study of warp knitted fabric constructions, textile calculations, and practical works on training machines. In addition, Karl Mayer workshop Vietnam will offer additional course of machine maintenance introduction and article change. The workshop will give information on topics like introduction on stitch formation warp knitting, tricot machine structure and technical features, function and explanation of the knitting element movements and their synchronisation with help of chain links, and explanation of the KAMCOS in details and hands on practice of each participant.
Source: Fibre2fashion
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.
Will Cambodia's valuable garment sector pay a price for the country's political crackdown? It was lunchtime at the Phnom Penh factory when a commotion broke out at the gate. Prime Minister Hun Sen had arrived. He was mobbed by garment workers like Ms Bot Saiya, who held out her cellphone to snap a picture of herself with the most powerful man in Cambodia. "I had seen photos that people took with him on Facebook, and imagined what it would be like to meet him," she told The Straits Times. "My dream came true." With seven months to go before Cambodia's general election, its US$7 billion (S$9.5 billion) garment and footwear industry has come under the spotlight and, some workers feel, under threat. The industry is a powerful political force and major source of employment. But it is also in the crosshairs of foreign governments critical of Cambodia's crackdown on political dissent, with threats of possible economic penalties that could hurt the sector. Since August, the Cambodian authorities have shuttered critical media outlets, detained opposition leader Kem Sokha for treason, dissolved his Cambodia National Rescue Party (CNRP) and redistributed its parliamentary seats. They have also arrested journalists for espionage, and put officials on alert for those fomenting a "colour revolution".The crackdown has taken place alongside a concerted effort by the ruling party to woo Cambodia's 740,000 garment and footwear workers, who power the biggest economic engine of the country.
CRUCIAL ROLE
Without garment workers, we wouldn’t have seen this much progress.
MR VUN MAB, 28, a garment worker in Phnom Penh from Prey Veng province, pictured outside his dormitory. Like many other migrant workers, he and his wife have two children who are being brought up by his parents in his hometown. He earns US$200 a month packing clothes into boxes and moving them into the storeroom.
CIVIC DUTY
I am a good citizen... Even if I am busy, I don't forget to vote.
MS CHON KIMLY, 31, a shoe factory worker in Phnom Penh, pictured in her dormitory. The single woman calls herself the bank account of her family in Takeo province.
BIGGER FORCES AT PLAY
The international community will use the garment industry to press the country to respect the rule of law... And those most affected will be the poorest, not the wealthy.
MR YI RATHA, 31, who works in a shoe factory in Phnom Penh. He makes US$179 per month, sticking soles to the bottom of sneakers. Analysts say their role as breadwinners for rural households also gives them outsized influence among the 8.3 million registered voters. Mr Hun Sen has been visiting factories twice a week to meet workers and managers. In the turbulent aftermath of the 2013 election, where the CNRP stunned the Cambodian People's Party by shrinking its parliamentary majority from 90 seats out of 123 to 68, striking workers joined opposition supporters in demanding the government double its monthly minimum wage to US$160. At least four people were shot dead when a protest turned violent in 2014. While the demand was not met, the minimum wage has been raised every year since. After the latest round of wage negotiations, the government announced in October that the wage would increase from US$153 to US$170 (S$230) in January next year - with the state picking up the tab for US$5 of that hike. Employers will have to pay full contributions to their workers into the National Social Security Fund, as opposed to the 50 per cent they currently foot. Bangladesh, the world's second-largest exporter of garments after China, has a minimum wage less than half of Cambodia's. Manufacturers are worried. "We have raised the minimum wage 11 per cent for the next year. In Vietnam, it was 6.5 per cent," Mr Ken Loo, the secretary-general of the Garment Manufacturers Association in Cambodia, pointed out. "But we understand it is an election year." Cambodia makes anything from sneakers to shirts bearing global brands, such as Marks & Spencer, H&M and Adidas, which are exported to the US and EU under preferential terms offered to poorer countries. While the sector is projected to expand by 6 per cent in export value by the end of the year, some 15,000 to 20,000 jobs were lost last year because of factory closures, Mr Loo said. In a peach-coloured dormitory block in Phnom Penh's Dankao district, the youthful migrants are wary of revealing their political affiliation even as they leave a picture of Kem Sokha taped to the wall. Yet they are proud of their political and economic clout. Mr Vun Mab, a baby-faced, 28-year-old father of two from Prey Veng province, declared: "Without garment workers, we wouldn't have seen this much progress." Uncertainty now cloaks his future. Shortly after the Supreme Court ordered the CNRP dissolved last month, the European Union, which accounted for about 40 per cent of Cambodia's exports last year, issued a statement that implied sanctions were possible. "Respect of fundamental human rights is a prerequisite for Cambodia to continue to benefit from the EU's preferential Everything But Arms scheme," the statement said, referring to the duty-free and quota-free access for all Cambodian exports except arms. And just last week, the United States said it would restrict entry to people involved in the Cambodian government's actions to undermine democracy, including the dissolution of the country's main opposition party and imprisonment of its leader. The visa sanctions are the toughest steps by any Western country since a crackdown on critics of Mr Hun Sen, Reuters reported. Mr Yi Ratha, who spends his days gluing soles to sneakers for US$179 a month, fears for his job. "The international community will use the garment industry to press the country to respect the rule of law," he said. "And the parties most affected will be the poorest people, not the wealthy." In the meantime, Mr Hun Sen is keeping up with his factory visits as he seeks to extend his 33-year premiership. In a speech broadcast live on Facebook, he interspersed wisecracks about his loose trousers with impassioned pleas about peace and stability. "If there is no peace, you won't be able to work here!" the Prime Minister said, reminding workers about Cambodia's genocidal past under the Khmer Rouge regime. "We won't allow the poisonous people to destroy the safety, peace and stability of our development… We won't give you any opportunity." Workers like Ms Chon Kimly, while looking forward to meeting Mr Hun Sen, are patiently waiting for their turn at the ballot box. "I am a good citizen", she said quietly. "No matter how busy I am, I don't forget to vote."
HARD LIFE
740K - Number of garment and footwear workers in Cambodia. $9.5B - Value of Cambodia’s textile and footwear industry. $230 - Minimum wage for industry workers from next year. Even as the industry wields considerable political power via its strength in voting numbers, the lot of Cambodia's garment workers is not an easy one. Workers protested after the 2013 election, joining opposition supporters in demanding that the government double the monthly minimum wage to US$160. At least four people were shot dead when military police opened fire on a crowd in an attempt to quell a protest that had turned violent in 2014.
Source: The Straits Times
KARACHI: Strong buying was witnessed on the cotton market on Monday as spinners preferred to get quality lint and willingly paid premium price for Sindh variety. This is the second time in the season that prices have crossed above the Rs7,000 mark to reach Rs7,050 per maund. However, activity remained restricted due to short supply of quality lint. The rupee-dollar parity is going to impact cotton imports which will become costlier in case the rupee value declines against dollar. This was a cause of concern for the textile industry because a huge quantity of around 3 million bales is expected to be imported. Meanwhile, the downpour on Monday in Punjab would be beneficial for wheat crop but would be harmful for the cotton where picking has yet to finish. However, reports suggested that most of the crop has been picked. There is growing concern amongst spinners that late approval for import of cotton from India would not help because by end of this month much of quality cotton would have been lifted by Indian textile industry or exported. The world leading cotton markets gave mixed trend with Indian cotton closing steady but the New York and Chinese cotton markets were under pressure. The Karachi Cotton Association (KCA) kept its spot rates steady at weekend level. The following deals were reported to have changed hands on the ready counter: 800 bales, Ghotki, at Rs7,050 400 bales, Daharki, at Rs7,050 400 bales, Mirpur Mathelo, at Rs7,050 2,000 bales, Rohri, at Rs6,500 to Rs6,700 1,600 bales, Saleh Pat, at Rs6,550 to Rs6,750 2,200 bales, Haroonabad, at Rs6,450 2,400 bales, Rahimyar Khan, at Rs6,875 to Rs7,000 600 bales, Khanewal, at Rs6,300 1,200 bales, Mianwali, at Rs6,300 and 1,000 bales, Layyah, at Rs6,300.
Source: Dawn.com
Cotton is one of the oldest natural fibers in the World, which has been grown in Egypt, India, Pakistan, America, China. Cotton-growing has always been a tradition in Azerbaijan, where people have been engaged in cotton growing for centuries. Today, the state is making every effort to revive the cotton industry, providing huge support to entrepreneurs. Year 2016 was a turning point from the perspective of cotton-growing in the country. Last year, cotton was planted on an area of 51,000 hectares, while the harvest hit 90,000 tons. That is three times more than in 2015. The country has big plans for 2017, as the State Investment Program envisaged large funds for the development of cotton-growing. This year, cotton was planted in more than 20 regions of Azerbaijan. To date, 199,818 tons of products have been delivered to cotton harvesting stations in Azerbaijan. Up to now, the total volume of products exceeded the indicator of the previous year by 111,000 tons.
Compared with the previous year, this year, it was planted 2.7 times more-136,413 hectares. Cotton production is most developed in Saatli (25,437 tons), Bilasuvar (24,234 tons), Barda (21,552 tons), Aghjabadi (19,555 tons) and Sabirabad (17,608 tons). President Ilham Aliyev, who constantly made accent on importance of developing of this sphere, raised this issue once again at a meeting of the Cabinet of Ministers dedicated to results of socio-economic development in the first half of 2017 and objectives for the future. The head of state said Azerbaijan restored the glory of cotton growing, increasing crop area of cotton by about three times. In early 2017, the State Program for 2017-2022 was approved with an aim of strengthening measures directed at developing this sphere. The purpose of the State Program is to develop cotton growing, increase export potential in this sphere, ensure employment of the rural population and increase the production of cotton. The new goal of the state is to bring the cotton production up to 500,000 tons by 2022 from the current 260,000 tons.
Source: Azer News
According to the USDA, nearly all of the cotton crop has been picked, and now the gins are hard at work. In Red Springs, North Carolina, the Hoke Robeson gin reached its 50,000 bale mark for the season earlier in December. Workers are saying they anticipated ginning up to 7,000 more bales before 2017 is over. “It’s been a great harvest season, a great ginning season and everybody’s yields have been spectacular,” said Edgar Edens, a worker from Hoke Robeson. He said a lot of cotton farmers in that area, roughly 25 miles south east of Fayetteville, have quit due to financial reasons. When Hurricane Matthew made landfall in September 2016, the storm dumped several inches of rain that destroyed the crop, and many farmers feared they would go out of business. Thankfully, the 2017 yields are some of the best Edens can remember.
Source: AgWeb
