The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 20 DEC 2017

NATIONAL

INTERNATIONAL

Indian govt preparing standard procedure for FTA

The Government of India is preparing a standard operating procedure that will be followed while entering into any new free trade agreement (FTA), Union minister of commerce and industry Suresh Prabhu has said. Besides the European Union, the Indian government is currently in discussion with the Canadian and Australian governments for FTA. “When we talk of FTA there are always trade-offs...as a country we have to find how a trade-off can benefit us,” Prabhu said at an event organised by the Apparel Export Promotion Council (AEPC).Informing about the India-EU FTA talks, he said that he had a meeting with the EU minister to discuss various issues. He added that the EU is great market for India for apparel, which is an employment generating sector. Speaking at the same event, textiles minister Smriti Irani said skilling would be among the focus area for the government and assured her ministry’s all support to garment manufacturers. “We are working on solving all the issues prevailing in the industry,” said Irani, adding that the ministry would work on every plight of the sector. AEPC chairman Ashok Rajani said that exporters used to earlier receive 11.30 per cent incentives under Remission of State Levies (RoSL), but now it has come down to 6.5 per cent. He added that exporters are facing a crisis while shipping their products abroad, especially the EU, which levies 12 per cent duty on Indian cotton while Bangladeshi and Vietnamese cotton are exempt from any duties. (RKS)

Source: Fibre2fashion

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Indian apparel industry performing positive despite global changes: Smriti Irani

New Delhi, Dec 19 (KNN) In an attempt to woo the textile sector in the country comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs), Textile Minister said that the sector is performing competitively despite the change in global markets. The Minister said that the apparel sector in the country is performing at par with other counties in a scenario where there is ample of competition as well as challenge. Also the country is finding its place as an emerging Fashion centre with an enormous raw material and manufacturing base on the country along with the talent in terms of designing, Irani added. The Minister made the following remarks during the 22nd Apparel Export Promotion Council Export Wards in the national capital. With regard to the government’s commitment to ensuring a dialogue, Irani said that her office along with the Commerce and Industry Ministry is dedicated to address the different concerns put up by industry from time to time. Suresh Prabhu, Commerce and Industry Minister, who was also present during the ceremony said that the sector can see itself in full support from the government, be it the push for growth, MEIS or trade agreements. Also NITI Aayog CEO Amitabh Kant highlighted the importance of handholding the textile sector considering the fact that it involves a huge chunk of labour and contributes to employment generation in the country. Kant further said that it is to align furtherclosely with AEPC to explore newer policies and framework whenever required for the sector. The event was attended by officials from commerce and industry ministry, textile ministry and textile exporters from across the country. (KNN/DA)

Source: Knn India

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PSA’s new terminal at JNPT aims to move more boxes by rail, inks pact with Concor

Mumbai, December 19: The opening of a new container terminal shortly at Jawaharlal Nehru Port Trust (JNPT) by Bharat Mumbai Container Terminals Pvt Ltd (BMCT), a wholly-owned facility of Singapore’s PSA International Pte Ltd, is expected to help India’s busiest container gateway raise the share of boxes moved by rail. On Tuesday, BMTC and the state-owned rail hauler of containers Container Corporation of India (Concor) signed a Memorandum of Understanding (MoU) to run dedicated shuttle-trains running between BMCT and Concor’s Rail Transhipment Hubs (RTH) at Kathuwas and Jakhwada to consolidate containers railed between BMCT and North and West India. “The percentage of rail cargoes handled at JNPT, despite the benefits of rail versus road, has continued to decline to a figure of 12 per cent recently,” Kalyana Rama, Chairman and Managing Director of Concor, said. “By working together to provide superior service levels and offerings via our RTHs, we have no doubt that rail percentage in JNPT will see a major upswing with the commissioning of BMCT and we aim to see 35 per cent of volumes at BMCT handled by rail once the dedicated freight corridor (DFC) is completed,” Kalyana Rama said. BMCT’s rail facilities will be the largest in India and the only on-dock DFC-compliant facility in JNPT, capable of handling 1.5 km long, 360 twenty-foot equivalent unit (TEU) container trains on completion of the DFC. BMCT will designate the Kathuwas and Jakhwada RTHs as BMCT’s inland extended gateways for North and West India while Concor will ensure competitive rail freight costs and transit times between BMCT and the RTHs in addition to providing competitive pre / on-carriage rail options. The aggregation of all North and West India-destined boxes onto a single train at BMCT will enhance train utilisation.

Priority handling

Concor will also be given priority handling of its trains at BMCT. The speedy transshipment at Concor’s RTHs will ensure boxes reach their destination on time. Thus, shipping lines using BMCT’s rail terminal can enjoy a higher service level overall at a much more competitive cost, said Suresh Amirapu, CEO of BMCT.Further, Concor’s Dronagari Rail Terminal (DRT) will be designated as a Direct Port Delivery (DPD) point for longer-stay import boxes, removing traffic from the roads and providing a more effective evacuation option. BMCT will also work in partnership with Concor to offer shipping lines domestic repositioning of their empty containers, a service currently not available at terminals in JNPT due to the lack of capacity.

Source: Business Line

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Rupee hits fresh 3-month high, now available at 64 per US dollar

The Indian rupee extended gains on Wednesday to hit a fresh 3-month high against US dollar. The rupee today marked 64 apiece US dollar after a volatile activity of three months. The domestic currency rupee gained 4 paise at 64 against US dollar on Wednesday at the interbank foreign exchange market today. Earlier yesterday, the rupee edged up by 20 paise to close at a three-month high of 64.04 against the US dollar following the victory of Narendra Modi led Bharatiya Janata Party in the state elections of Gujarat and Himachal Pradesh. However, on Monday, the rupee underwent a choppy trade and slipped by a whopping 70 paise as both Indian National Congress and Bharatiya Janata Party moved neck to neck as the counting progressed. But later in the day, when BJP vote count surpassed that of Congress, the rupee ended the day down by 20 paise only. Meanwhile, India’s stock market opened higher on Wednesday with Sensex and Nifty hitting lifetime highs as investors continue to stay bullish over Narendra Modi’s BJP victory in Gujarat and Himachal Pradesh. At 10.15 am, Sensex was trading at 33,821.97 and Nifty was trading, each down by 0.04%. BSE Sensex gained 91.85 points or 0.27% to begin at 33,928.59 whereas NSE Nifty ticked up 31.2 points or 0.3% to start at 10,494.4 on Wednesday. Shares of India’s largest carmaker Maruti Suzuki (India) marked a five-digit figure of Rs 10,000 for the first time ever, rising by 1.99% on BSE today. Other major gainers were ONGC, GAIL, Coal India and M&M. Within minutes of staring up, the key equity indices Sensex and Nifty retreated the morning gains and fell in red. Benchmark Sensex hit a day’s low of 33,807.8 and an all-time high of 33,956.31 while broader Nifty marked a lifetime high of 10,494.45. In a major development on Monday, Narendra Modi led Bharatiya Janata Party won the assembly election in the states of Gujarat and Himachal Pradesh. The Congress was not able to defeat the incumbent BJP in Gujarat but it has certainly managed to bring down the ruling party seats to double digits in Prime Minister Narendra Modi’s home state. The Bharatiya Janata Party continued its winning streak to book a sixth term but this time the saffron bearer has lost a phenomenal seat share. In the 2012 assembly election of Gujarat, Bharatiya Janata Party captured 127 seats out of 182, implying a seat share of 69.78%. But this time BJP has only managed to gather about 99 seats out of 182, implying a seat share of 54.39%.

Source: Financial Express

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CII proposal seeking reduction of govt stake in PSBs to 33% irks unions

All India Bank Employees’ Association (AIBEA) has opposed the recommendation of the Confederation of Indian Industry (CII) that the government reduce its stake in public sector banks (PSBs) to 33 per cent over the next two to three years. CH Venkatachalam, AIBEA General Secretary, told BusinessLine that some of the members of CII and other industry bodies are responsible for the bad loans in the banking sector. Terming this recommendation as preposterous, he said: “They (private corporates) take loans. They don’t repay, and make the banks to waive off (loans). Then they are telling the government to privatise the banks.” He said that the industry bodies are asking the government to privatise the banks to the very same entities whose ‘innovation’ is responsible for the bad loans. The PSBs continue to extend a bulk of the corporate loans to private firms, who are now blaming the PSBs. “If pubic sector is not good, why do they come here,” he said. Rather, he said, the CII and other industry bodies should compel their members to repay the bank loans so that the banks can again recycle this money for further lending and development. Those who fail to repay should be expelled from the membership of these bodies, Venkatachalam said. Urging the CII to withdraw the recommendation, he said they should concentrate on helping the banks to recover the bad loans.

To meet Jaitley

Stating that the AIBEA is planning to meet the Finance Minister shortly in this regard, he said the association would urge the government to reject this recommendation of the CII. AIBEA will also ask the government to take tough action on the defaulting members of these industry bodies. AIBEA reiterates its demand that wilful corporate defaults should be made a criminal offence, he said.

Source: Business Line

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Govt working on strategy to boost share of services exports, says Prabhu

The government is working on a strategy to boost share of services in total exports from the country, said Commerce & Industry Minister Suresh Prabhu. The Indian industry needs to identify the markets that they want to export to and the Department of Commerce would work on market access issues there, the Minister said at a meeting on the services sector organised by industry body CII. Prabhu further added that the World Trade Organisation (WTO) needed to focus on the most relevant issues in the world today and the mini-ministerial that India would organise in a few weeks’ time for top countries will deliberate on such issues. “In my opinion services should be one of the most critical drivers of the growing economy and must be brought to the forefront,” Prabhu said. The country needs to identify new services which have tremendous export potential such as healthcare and financial services and within that develop new products which could be exported. The Minister suggested that sectors such as IT should look at developing newer markets such as Latin America as markets like the US and Europe were becoming saturated. The services sector contributes 60 per cent of India’s GDP, 30 per cent of India’s exports and just 30 per cent of India’s jobs. According to Uday Kotak, Chairman, CII National Council on Services, measures need to be taken to step up the share of jobs to 40 per cent and that the service sector become the “job creation engine” for the Indian economy.

Source: Business Line

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Rajya Sabha passes Companies Bill

With the Rajya Sabha also passing the Companies Bill on Tuesday, the enactment of crucial amendments, which are more than 40, to the 2013 law will be a reality as soon as President Ramnath Kovind signs on it. The Lok Sabha had cleared the amendments in the Monsoon Session of Parliament. Replying to the two-hour debate on the amendments, Minister of State for Corporate Affairs PP Chaudhary said the amendments will strike a balance of competing interests of various stakeholders. He said stringent actions have been provided in the Bill for fraudulent conduct of business and default of public deposits. He said greater transparency has also been provided to prevent money laundering. The Bill, according to him, will also help to improve ease of doing business in the country. “The latest legislation would help in simplifying procedures, make compliance easy and take stringent action against defaulting companies,” Chaudhary said. Initiating the debate, former finance minister P Chidambaram welcomed the legislation. He said the Centre’s objective seems to be noble to help small and medium companies and save those companies from the rigours of Companies law. “But the way you have gone about it will have perverse consequences. You have only one Act. That Act applies to large companies, to medium companies and small companies. If you make provisions in that Act, keeping in mind what you want to do only for small and medium companies, the consequence will be inevitably the relaxation that you will apply to large companies also. “The only way out of that dilemma is to make a separate law for what you define as small and medium companies,” he said and added that eventually there needs to be a separate law for small and medium companies and a very comprehensive Companies Act only for large companies. Chidambaram opposed the amendment to delete Section 195 and 196 which provide for prohibition of insider and forward trading. He said the provision should be part of the Act as SEBI does not have jurisdiction over unlisted companies and there could associate or subsidiary companies of listed companies, which can indulge in insider or forward trading. Tapan Sen of the CPI(M) said the Bill will help big multinational companies to maximise their profits using public money. He said the legislation will hold the country to ransom.

Source : Business Line

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Niti Aayog evaluating ₹5,000 crore Methanol Economy Fund

The think-tank Niti Aayog is considering a proposal for suggesting the creation of a Methanol Economy Fund with a corpus of ₹4000-₹5000 crore. Speaking to reporters at a press conference, Member, Niti Aayog, VK Saraswat said: “We are evaluating a ₹4,000 crore to ₹5,000 crore Fund for developing Methanol as a fuel in India. We want to set up 3 to 4 methanol processing plants, out of which we expect at least one plant running in the next 3 years. For this, we will want to have a Methanol Economy Hub to be ready by mid next year.” The Niti Aayog is going to propose a road map to achieve its target of increasing the penetration of Methanol as an alternative fuel to petrol and diesel by December end. Saraswat said: “The roadmap should be applicable from January 2018.” Under the roadmap, the Aayog proposes ramping up facilities to convert Coal, Stranded Gas and Biomass to Methanol. Saraswat said, “The current installed capacity of Methanol production of the country is 0.47 million tonne and the total production of the Methanol in the country is 0.2 million tonne. But the total Methanol consumption of the country in 2016 is 1.8 million tonne.” Saraswat said: “We are working on multiple projects for converting conventional fuel run vehicles and equipment to be powered by Methanol. These vary across diesel gensets, buses, rail engines, boats and ships.” Highlighting that the regulatory approvals for the same are almost ready, Saraswat said, “The Bureau of Indian Standards have certified Methanol as a fuel and the regulatory approvals for the same will be notified in another two weeks.” “The country will need to develop a Methanol manufacturing capacity of around 3 to 4 million tonne to meet the expected demand,” he added.

Source : Business Line

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Asia-Pacific Electrically Conductive Textiles Market Report to witness Impressive Growth

Asia-Pacific Electrically Conductive Textiles Market Report provides a proficient analysis on the current state and focuses on the key players, Types and Applications of Asia-Pacific Electrically Conductive Textiles Industry. This report also includes granular analysis of the market share, geographic regions and revenue forecasts and of the Asia-Pacific Electrically Conductive Textiles market. Electrically Conductive Textile is made of a nylon ripstop fabric, metallized with Cu/Ni, extremely strong and flexible. It has conductivity in all directions, i.e. along the axes X, Y and Z. Conductive textile can be supplied as a cloth or as pressure-sensitive adhesive (PAS) tape which is easy to apply to plastic housings in order to cover complex forms and shapes. Conductive textile has low contact resistance and the tape version has superior adhesive force. The product shields electromagnetic interference (EMI) effectively.

Source: Miltech

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Poll setback in Gujarat’s cotton belt worries Maharashtra BJP

While Gujarat is India’s top cotton-producing state, Maharashtra has larger acreage under the crop. Photo: Aniruddha ChowdhuryMintThe ruling Bharatiya Janata Party (BJP) in Maharashtra is worried about the electoral reversals the party suffered in rural Gujarat, especially the cotton-growing parts. Results of the Gujarat assembly elections announced on Monday showed the Congress made significant gains in the Saurashtra-Kutch region and north Gujarat where cotton and groundnut are the main cash crops. In the belt that accounts for 54 assembly constituencies, the BJP won only 23 seats, 12 fewer than in 2012, while the Congress took 30 seats, 14 more than in 2012. And across the state, the BJP won only 55 of the 127 rural and semi-urban seats as against 68 by the Congress. Kishore Tiwari, chairman of the Maharashtra government-appointed Vasantrao Naik Shetkari Swawalambi Mission—a task force formed to solve Vidarbha’s agrarian crisis— and Vidarbha-based farm activist, said the Maharashtra government should learn from the setback in rural Gujarat. “The results in cotton-growing parts of Gujarat should be a matter of concern for Prime Minister Narendra Modi and the BJP-led government in Maharashtra. Apart from the low remunerative price for cotton and the severe spell of pink bollworm attack on the crop that has caused damages worth Rs10,000 crore to cotton growers in Maharashtra, the government also needs to think about providing timely access to institutional credit, high cost of production, and bureaucratic bottlenecks that cause delays between the programmes and their delivery before the BJP suffers a similar political setback here as well,” Tiwari told Mint. A BJP minister in Maharashtra, who campaigned for the party in rural Gujarat including parts of Saurashtra-Kutch region, said the Congress had gained despite the BJP government in Gujarat announcing in October a bonus of Rs500 per quintal for cotton over and above the minimum support price (MSP) of Rs4,020 per quintal for the small staple variety, Rs4,270 for the medium staple, and Rs4,320 for the long staple. “The scale of distress was apparently bigger and more serious than we imagined. What is worrying is that the cotton growers in Maharashtra are facing exactly the same problems as their counterparts in Gujarat—a low remunerative price and a widespread attack of pink bollworm on Bt cotton. The bonus of Rs500 does not seem to have helped much in Gujarat and that means the distress level among cotton growers in Maharashtra, who have not been given such bonus, could be higher,” said the minister requesting anonymity. Gujarat is India’s top cotton producing state, accounting for nearly 25% of the national yield. According to the estimates of the cotton industry and the state government, the state is likely to produce 50.50 million quintals of cotton in the 2017 kharif season. Cotton is grown over 2.7 million hectares in Gujarat. Though Maharashtra has larger acreage under cotton—normally 3.8 million hectares but 4.2 million hectares this year—it has lower productivity and was estimated to produce nearly 40 million quintals at the start of this kharif season. But activists and even agriculture ministry officials in Maharashtra now say the pink bollworm attack has damaged nearly 40% of the estimated crop. “The damage in some parts like Vidarbha is more than 50% but it averages out to around 40% across all cotton growing parts of the state,” said a senior agriculture ministry official. The regions of Vidarbha and Marathwada account for nearly 65% of Maharashtra’s total cotton yield. Parts of North Maharashtra and Khandesh also grow cotton. Of the state’s 13.6 million farmers, nearly 4.5 million grow cotton, as per the state’s agriculture census. For the BJP, the cotton growing regions are also politically significant—some 65 of its total 122 members of the legislative assembly have been elected from Vidarbha, Marathwada, North Maharashtra and Khandesh. Chief minister Devendra Fadnavis himself is from Vidarbha and so is senior BJP leader and Union minister of transport and shipping Nitin Gadkari. Farm activists and politicians claimed that cotton crop grown over nearly 1.3 million hectares has been damaged by the attack of the pink bollworm because the Genetically Modified (GM) variety of Bollgard II has lost much of its resistance to pest attacks. In Yavatmal district alone, where cotton is cultivated over 4.5 lakh hectares —the largest area under cotton cultivation in India —bollworm attack has damaged between 50-80% of the crop, according to Tiwari. Dhananjay Munde, Nationalist Congress Party leader and leader of the opposition in the Maharashtra legislative council, has demanded compensation of Rs25,000 per acre for cotton growers hit by pink bollworm infestation. The opposition has already mounted an intense attack on the BJP-led government during the ongoing winter session in the ongoing assembly over this issue. The BJP minister quoted above said cotton growers in Gujarat, Andhra Pradesh and Telangana too were complaining of pink bollworm attacks. “Farmers in Gujarat have spoken through their vote against us. We need to take some corrective measures in Maharashtra now,” said the minister.

Source: Livemint

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Welspun first global textile entity to patent fibre tracking technology

Welspun India, Mumbai-based world's second largest terry towel producer developed the technology to verify the origin of cotton, after a large customer terminated a contract following mislabelling of provenance of fibre in certain consignments. It has emerged as the first global textile entity to patent a fibre-tracking technology, turning adversity into opportunity. Welspun has partnered with global forensic science company Oritain Global to develop the solution, Wel-Trak, using RFID and customised software. It involved an investment of around $6 million (38.5 crore) and more than six months of rigorous efforts. The technology enables it verify the origin of cotton at each stage of the manufacturing process to ensure an authentic final product, chief executive Dipali Goenka said. Adversities happen in the world of business. When they looked into it (the crisis with the large customer), they felt that there were gaps. Today, they are proud to say they have Wel-Trak, the patented process, which helps them track the cotton to its source. Apart from deploying this solution in several cotton growing areas across the globe, Welspun India is now looking at helping cotton farmers grow better quality cotton and also encourage them try organic cotton. Being India's largest consumer of cotton, Welspun is currently working with farmers at various cotton growing locations across the country to help them adopt better quality cotton crops. The company is guiding and mentoring the farmers on right practices, right seed and right pesticides. Cotton farmers are being mentored on the kind of crops to grow after cotton harvest so as to help them improve the overall soil nutrients like nitrogen. Currently, they are guiding over 3,000 cotton farmers in the Wardha region near Nagpur and the Nakhatrana region near Bhuj and we are aiming to take it to at least 10,000 cotton farmers soon. The company is looking to cover at least a fifth of farmers supplying cotton to it by 2021. On its end-products, Welspun would provide details of not just the origin of the cotton but also the practices adopted by the farmers who had supplied that cotton, using the fibre-tracking technology. Welspun making efforts to forge more alliances with global hospitality and healthcare giants for supply of home textile products and strengthening brands like Christy, Hygrocotton and Spaces. Welspun for the first time last fical year crossed $1 billion mark in revenue and now is confident of achieving its target of doubling revenue to more than $2 billion by 2022. Welspun is also planning investing on augmenting integrated manufacturing infrastructure for ancillary units for intermediates including trims and packaging material.

Source: YarnsandFibers

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'Plan to create an umbrella body to address issues of exporters underway'

Union Minister of Commerce and Industry, Suresh Prabhu Monday told apparel exporters that a plan is underway for creating an umbrella organisation which can address the issues faced by the exporters. Addressing the 22nd AEPC Export Awards 2016-17, he said, "To support exports, a plan is underway for creating an umbrella organisation which can address the issues faced by the exporters. We are currently working on reducing the time to markets by removing the bottlenecks prevailing in the logistics." The 22nd AEPC Export Awards 2016-17, were held at a glittering ceremony in New Delhi on Monday. The awards recognized the top achievers of the Apparel Industry across a wide range of KPI's and rewarded the best performers in total 18 categories. Present at the award ceremony were Honorable Suresh Prabhu, Minister of Commerce and Industry Honorable Smriti Irani, Union Minister of Textiles and Information & Broadcasting, Honorable Ajay Tamta, Minister of State for Textiles, Amitabh Kant, CEO, Niti Aaayog and Chairman AEPC, Ashok Rajani along with the leading garment exporters of the country, AEPC officials and other dignitaries. The AEPC Export Awards are the most prestigious awards of Indian Apparel Industry, paying tribute to the success and innovative approaches of Indian apparel export companies. Extending across diverse product categories and including both experienced and start up representation, the awards are a celebration of the contributions exporters have made to the industry and, in turn, the national economy. This year, AEPC recognized the achievers from the apparel Industry in total eighteen categories and for the first time, AEPC Export Awards included two new award categories viz. sustainability and good practices.(For the list of the winners, please refer the attachment) Speaking on the occasion, Honorable Suresh Prabhu, Minister of Commerce and Industry said, "The Commerce Ministry is working on an end to end comprehensive strategy where we are looking to provide Industry, new markets through bilateral and multilateral dialogues. To support exports, a plan is underway for creating an umbrella organisation which can address the issues faced by the exporters. We are currently working on reducing the time to markets by removing the bottlenecks prevailing in the logistics." Commenting on the issues, Amitabh Kant, CEO, Niti Aaayog said, "Niti Aayog accords a great importance to the textile and apparel sector because the Industry plays a vital role in delivering economic development. The sector is one of the most promising sector. In the proposed India –EU FTA, India may compromise for wine and push for textiles. The import tariff on man-made fibre has been a strategically wrong policy. India needs a fibre neutral GST rates and zero tolerance between payment and refund of taxes."Speaking on the occasion, Union Minister of Textiles and Information & Broadcasting, Smriti Irani said, "We are soon going to come out with policy for Jute and silk. Our ministry is also working on a policy for the development of skills of the employees engaged in the sector. The Ministry is also looking at ways to value add Indian brands and designs." Talking about the awards, Honorable Ajay Tamta, Minister of State for Textiles said, "I am very pleased that AEPC is honoring apparel exporters, who have excelled in their export performance for the year 2016-17. Apparel Industry is vital sector of the Indian economy. It provides livelihood to a large number of skilled and semi-skilled workers in the country especially it gives employment to a large number of women workers. I would to congratulate the award winners and AEPC for their sustained efforts. Congratulating the award winners Ashok Rajani, Chairman Apparel Export Promotion Council said, "AEPC Export awards are the most prestigious awards in the Indian apparel Industry which amply demonstrates the excellence of Indian Apparel Industry. The Indian textile Industry has inherent linkage with agriculture and with the culture and traditions of the country. The Industry contributes to 10% of manufacturing production, 2% of India's GDP and upto 13% of the country's export earnings. With over 45 million employed directly, it is one of the largest sources of employment generation in the country. The Industry has been able to respond positively to the global challenges due to the incorporation of good practices in the manufacturing processes and the awards recognizes the best performers of the apparel Industry. I would like to congratulate the winners for emerging as the best in their respective categories." During its interaction with the minister, the apparel Industry has asked the government to look at ways to fill the 5% gap caused by the reduced rate of GST.

Source: SME Times

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Employees look to bid for assets of Alok Industries

A group of Alok IndustriesBSE 4.79 % employees is making a bid for the assets of the textile company, which is on the block after being referred to the bankruptcy court, two senior officials from the banking circle said. The employees, who made the surprise move, will likely be competing with Reliance IndustriesBSE 0.50 % (RIL), which too has shown interest in acquiring the textile company either in part or entirely. State Bank of India, the lead bank in the consortium of lenders to Alok Industries, had referred it to the National Company Law Tribunal in July, following directions from the Reserve Bank of India. Some employees of the company have jointly submitted a resolution plan for thecompany to the resolution professional last week, the officials said, speaking on the condition of anonymity. The company has received claims of ₹29,519 crore from financial creditors and ₹624 crore from operational creditors. "Employees may not have the capital to support the restructuring of the debt although, and also there are doubts whether they would be able to muster support from lenders given the limited management bandwidth," said a senior official involved in the resolution. "Reliance Industries, on the other hand, has the capital to turnaround the firm but they will bargain very hard for steep haircuts." The resolution professional for Alok Industries has set conditions like a net worth of ₹500 crore and assets of ₹3,000 crore for companies that want to participate in the resolution plan. Further, the candidates should have an ability to invest at least ₹500 crore as equity capital in the company. Alok Industries has four core divisions — cotton yarn, apparel fabric, home textile and polyester yarn. RIL, which has a petrochemicals business, is interested mainly in the polyester yarn unit. "All the business is not of interest to Reliance because it would not add synergies, but one or two divisions may be value accretive to it," a senior bank officials had told ET. Alok Industries' lenders had attempted to revive the firm through a strategic debt restructuring scheme. The process allows lenders to convert part of their debt into equity and sell it to a new promoter. But the plan got stuck following an order by the Bombay HC that stayed the sale of assets and any change in the company's equity structure. The court issued the order following a petition filed by HSBC on behalf of a few unsecured lenders to settle $55 million (₹353 crore) of arrears. The account was classified as non-performing in the books of the bank in November 2016.

Source: The Economic Times

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Junior's Fashion Week Autumn Winter 2017 finishes-in-style in Bengaluru!

Autumn's the mellow time. Autumn Winter season is the season of happiness and fashion with so many festivities around. Autumn Winter is the season of hot coffee, spending long hours in the sun on a Sunday afternoon, and giving your favorite novel a read while munching some cookies, isn’t it? However, when it comes to fashion, autumn winter is without a doubt the favorite season of the designers and stylists. Why, you may ask. Every year, with the autumn winter season, the trends of long boots, cozy apparels, warm yet stylish gloves, woolen scarves and stylish trench coats comes back. Winter dressing is all about having chic outerwear. Hence, to help juniors dress smartly in the best of trends from the autumn winter collections by the leading national and international kids wear brands, Junior’s Fashion Week visits different cities pan India with a motive to spread fashion and trends among the little ones. Junior’s Fashion Week is one of a kind event. Junior’s Fashion Week focuses on providing the junior models platform like no other to showcase their talent and come in notice of the who’s who of the fashion industry, which open the door to their future opportunities. JFW stands to be an edutainment platform for the young boys and girls who look forward to a fashion adept environment and experience the exhilaration of walking on the runway as a junior model. JFW is an omnibus to the future of fashion world for the young beautiful people of the world. The participating brands create a runway grandstand with the junior models of JFW to bring forth their latest collection and present them to a captivating audience. The bespoke amenities distinguish every showcase and gives unwavering attention to the brand. Junior’s Fashion Week not only believes in making the junior walk the runway, but also in preparing and grooming them for the same. Hence, JFW conducts a one-day workshop prior to the final showcase which helps the juniors work on their personalities, feel confident and learn the technicalities of the fashion world.

The workshop is moderated by experts and is a preamble to the grand showcase that ensues. It is especially designed by the JFW team to groom the junior models to make them runway ready and instill in them confidence and aptitude to be a junior model. Junior’s Fashion Week had a lovely journey of the Autumn Winter season 2017. Starting with Kolkata in the east, JFW moved to Mumbai in the west, followed by NCR in the north and ending the AW journey with a spectacular event in Bengaluru in south. Junior’s Fashion Week received an overwhelming response from all the 4 cities of the Autumn Winter season and is now looking forward to a magnificent Spring Summer season. In the Autumn Winter season, Junior’s Fashion Week associated with several national and international brands and designers, including Lil Angles, Doodlers, A-First, US Polo Association Kids, Marks & Spencer London, Allen Solly, The Children’s Place, etc. The different editions of the AW17 season highlighted the trendiest collections by the brands. The collections had their own stories behind them and their own uniqueness. The collection was showcased to an audience of potential buyers, industry visitors, fashion bloggers, and media. JFW focuses on providing young girls and boys a platform to look ahead a fashion adept environment and experience the exhilaration of walking on the runway as a junior model. The ideology of Junior’s Fashion Week is to be an exemplary platform where young talent is celebrated and brand value is accentuated and a heritage of fashion is cultivated! India witnessed fashion and trends in the Autumn Winter season with Junior’s Fashion Week. It’s time to make magic happen through the Spring Summer season.

Source: YarnsandFibers

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Outlook for manufacturing marginally low in Q3 of 2017-18

The statistics from FICCI's quarterly survey on manufacturing suggests slightly less optimistic outlook for the manufacturing sector in the Q3 (October- December 2017-18) as the percentage of respondents reporting higher production in third quarter has fallen in comparison to the previous quarter. The proportion of respondents reporting higher output growth during the Q3 (October- December 2017-18) has fallen to 47 from 50 percent in Q2, noted the FICCI Survey. However, the percentage of respondents reporting low production has also come down to 15 percent in Q3 from 18 percent in Q2 (July-September 2017-18). This less optimistic outlook for manufacturing in third quarter of current fiscal is attributed to factors like rupee appreciation impacting exports, issues with regard to implementation of the Goods and Services Tax (GST) and subdued demand in several sectors. In terms of order books, about 42 percent respondents in Q3 (October-December 2017) are expecting higher number of orders as against 47 percent of Q2 2017-18, again reflecting subdued demand in economy. Overall, the capacity utilisation in manufacturing remains low. The average capacity utilisation for the manufacturing sector is about 75 percent for Q2 2017-18 as reported in the survey which is similar to that of Q1 2017-18. As was the case in Q1 2017-18, the future investment outlook remains pessimistic as 73 percent respondents in Q2 2017-18 reported that they are not planning any capacity additions atleast for the next six months. Increasing imports, excess capacities, lower domestic demand from industrial sectors, high raw material cost, high interest rates are some of the major constraints which are affecting expansion plans of the respondents. Some respondents also reported that they are waiting for the market to settle down after the GST. Overall, in some sectors (like chemicals, food products, textiles, textiles machinery, leather and footwear, metal and metal products, cement and machine tools) average capacity utilisation has either remained same or declined in Q2 of 2017-18. On the other hand, sectors including auto, paper and electronics and electricals have registered a rise in the average capacity utilisation over the same period. On the exports front, the outlook seems to be less optimistic compared to previous quarters. Although, 48 percent respondents expect no change in the export levels, 32 percent expect exports to fall. Appreciation of rupee has made the respondents apprehensive of exports outlook with majority of the respondents (around 57 percent) reporting that their exports were affected in Q2 due to rupee appreciation. Outlook for the hiring sector remains subdued in near future as 85 percent of the respondents in Q3 2017-18 mentioned that they are not likely to hire additional workforce in next three months. This proportion is much higher than the previous quarter, where 73 percent of the respondents were not in favour of hiring additional workforce. Also, average interest rate paid by the manufacturers has slightly come down over last quarter, showing signs of moderation, with an average rate of 10.5 percent; but the highest rate continues to be around 15 percent. Based on expectations in different sectors, it is noted that high growth is expected in auto, capital goods, metal and metal products; moderate growth is expected in chemicals and pharmaceuticals, electronics and electricals, machine tools and textile machinery and low growth is expected in sectors like cement and ceramics, food products, leather and footwear and textiles and technical textiles in Q3 2017-18. Meanwhile, the cost of production as a percentage of sales for manufacturers in the survey has risen significantly for 59 percent respondents in Q3 2017-18. This is primarily due to rise in minimum wages, raw material cost and cost of power. FICCI's latest quarterly survey assessed the expectations of manufacturers for Q3 (October- December 2017-18) for twelve major sectors, namely auto, capital goods, cement and ceramics, chemicals and pharmaceuticals, electronics and electricals, food products, leather and footwear, machine tools, metal and metal products, paper products, textiles and textiles machinery. Responses have been drawn from over 310 manufacturing units from both large and SME segments with a combined annual turnover of over Rs. 3 lac crore.

Source: Business Standard

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US revises limit on import of Haitian apparel under CBERA

The International Trade Administration, under the US department of commerce, has revised the limitation of duty-free imports of apparel articles assembled in Haiti. It has announced the quantity of imports eligible for preferential treatment under the Caribbean Basin Economic Recovery Act (CBERA) for the one-year period till December 19, 2018. CBERA, as amended by the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE), provides duty-free treatment for certain apparel articles imported directly from Haiti. One of the preferences, known as the ‘value-added’ provision, requires that apparel meet a minimum threshold percentage of value added in Haiti, the US, and/or certain beneficiary countries. The provision is subject to a quantitative limitation, which is calculated as a percentage of total apparel imports into the United States for each 12-month annual period. “For the annual period from December 20, 2017 through December 19, 2018, the quantity of imports eligible for preferential treatment under the value-added provision is 361,603,399 square metres equivalent,” an official statement said. The aggregate square meters equivalent of all apparel articles imported into the US is derived from the set of Harmonized System lines listed in the Annex to the World Trade Organization Agreement on Textiles and Clothing (ATC), and the conversion factors for units of measure into square metre equivalents used by the United States in implementing the ATC. For the latest calculation, the most recent 12-month period for which data are available as of December 20, 2017 is the 12-month period ending on October 31, 2017. Therefore, for the one-year period beginning on December 20, 2017 and extending through December 19, 2018, the quantity of imports eligible for preferential treatment under the value-added provision is 361,603,399 square meters equivalent. “Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs,” the statement said. (RKS)

Source: Fibre2Fashion

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Cotton Production Improves in Pakistan

Sustained growth in cotton production reached 10.685 million bales during the last fortnight (Dec 1-15), according to an article on Dawn.com. A 5.30 per cent increase has been witnessed over the corresponding period last year when production stood at 10.147m bales. The latest cotton production figures issued by Pakistan Cotton Ginners Association on Monday showed higher growth in Sindh’s cotton production at 4.136 million bales, an increase of 11.70pc over the same period last year when production stood at 3.703m bales. The province produced around 433,275 more cotton bales so far over last year. Against this, cotton production in Punjab during the period under review recorded a modest increase at 6.549m bales or 1.63pc higher over the corresponding period last year when production was at 6.444m bales. Overall, the province produced 104,765 more bales over the last year.

Source: Cotton Grower

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No call yet on sanctions on Cambodian garments: EU envoy

The European Union (EU) ambassador to Cambodia George Edgar has assured National Union Alliance Chamber of Cambodia (NUACC) president Som Aun that no decision on garment sector sanctions has been taken. Former opposition leader Sam Rainsy and civil society groups called for such sanctions after the Cambodia National Rescue Party was dissolved last month. In a recent meeting with the EU ambassador, Aun requested him not to involve workers in the country’s political issues, according to Cambodian media reports. Edgar assured to convey the unions’ requests and concerns to EU headquarters in Brussels. The Garment Manufacturers Association in Cambodia had earlier called on international buyers to continue ordering clothes and textile products made in the country over fears that the United States and the EU could halt preferential treatment for Cambodian exports. Three union leaders also sent petitions to the EU and US ambassadors requesting for orders to continue as usual. (DS)

Source: Fibre2Fashion

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Textile Standards and Legislation 2018 – now in press

MCL News and Media has despatched to press its sixth printed edition of the 100 page Textile Standards and Legislation booklet which is designed to guide textile industry professionals through the minefield of standards and labels related to environmental and social compliance. The new version of the booklet includes changes to over 60 textile environmental standards, legislation and frameworks and updates readers to the key criteria changes that have taken place since it was last published in August 2016. With live updates to all the standards that we cover on our website at: www.textilestandards.com there have been several major revisions and additions since our last publication including changes to the Higg Index (page: 30), Cradle to Cradle, Recycled Claim Standard, GOTS, bluesign and tightening of third-party labels such as Oeko-Tex Standard 100. For the first time, the Textile Standards & Legislation booklet features Downpass 2017, which presents the new ‘Zero Tolerance’ standard for the exclusion of live plucking, and for the monitoring of breeding conditions, which came into force this year. It is backed by 60 companies in 16 countries. The publication also features updates and progress on the responsible Down Standard (RDS), which since 2016, has certified 2040 industrial farms and 1040 farms worldwide, which placed over 400 million birds under the protection of the RDS. Other notable changes to the new booklet include the Recycled Claim Standard (RCS),and Global Recycled Standard 4.0 from Textile Exchange that were both revised and re-released with significant updates in June 2017. TSL highlights how the standard applies to products that contain 5 per cent or more recycled content and has removed several aspects of the standard relating to material collection and concentration, while new regulations stipulate that manufacturers and suppliers must hold valid Reclaimed Material Supplier Agreements. In addition, the booklet gives details the Global Organic Textile standard (GOTS) which has been updated to version 5.0 and now features stricter criteria for regenerated fibres and the introduction of a new category for ‘combined products’ such as prams with textile fabrics, care seats or furniture with textile fabric upholstery. Users signing up to Textile Standards & Legislation PLUS receive unlimited access to a dynamic, interactive web-site guide to environmental and social compliance through www.textilestandards.com PLUS the NEW 2018 printed version of the best-selling 100 page A5 guidebook – ideal for sharing around the office or reading away from your desk. The printed guide is now available to order and is being published in January 2018. In addition to our unique on-line tool, the booklet informs readers on the latest voluntary and obligatory textile standards, legislation and routes to certification along with how to source textiles in a socially responsible manner. If you are a buyer or a textile manufacturer wanting to know more about sourcing and producing eco-textiles this updated guide-book is a "must read" information resource.

Source: Ecotextile News

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Cover crops have benefits for cotton

Cover crops can provide several benefits to cotton, include preventing soil erosion and sandblasting, controlling overwintering weeds, and improving irrigation efficiency. Several university cotton specialists offer suggestions to help growers take advantage of these cover crop benefits. Dr. Randy Boman, Oklahoma State University cotton specialist, says many irrigated producers use a terminated small grains cover. After they harvest cotton, they immediately plant wheat or rye to get some cover to help control wind erosion, especially on some of the sandier ground. “We’re also seeing a lot of dryland growers do it, too,” he says. “Every year we get away from the drought, the better off we are. The worst drought year was 2011, and 2014 was the last of the dry springs. So, dryland growers are doing practices like planting cover crops, which they couldn’t do earlier because they wanted to preserve soil moisture.” Southwest growers terminate the cover crop in the spring, Boman says, at about the hollow stem stage, and then plant no-till cotton later, or in some cases strip-till. “They often terminate the small grains cover crop in April, using Roundup. Depending on the weed situation, they might add 2,4-D or dicamba to help control glyphosate-resistant horseweed. Once they burn down the wheat or rye, they go back in and apply something like paraquat or Liberty, and Valor or Prowl H2O, to keep weeds down before planting. “In our area, we have to be vigilant with respect to soil moisture. We don’t want the cover crop removing precious soil moisture — especially close to planting time. We are always looking over our shoulder for the next drought, and we have to get a cotton stand.”

PREVENT EROSION, SANDBLASTING

In the eastern areas of the Coastal Plains, where some areas are completely no-tilled, many cotton growers primarily use wheat as a cover crop, says Dr. Keith Edmisten, North Carolina State University cotton specialist. In fact, almost half the state’s cotton acres have a wheat cover crop planted on them. “Few growers use legumes for a cover crop,” he says. “In the Piedmont, several growers use a multi-species blend, but the majority of mixtures is wheat. Most Coastal Plain growers strip-till and use wheat cover crops. That’s particularly true in the highly erodible areas in the western part of the Coastal Plain. But, you also see wheat cover in other areas of the state that aren’t highly erodible, primarily to prevent sandblasting. Our growers have two major reasons for using a wheat cover crop: to prevent soil erosion, and to prevent sandblasting.” North Carolina cotton growers normally terminate the wheat cover two weeks to three weeks prior to planting cotton, Edmisten says. Depending on weeds present in the field, they use primarily Roundup and some paraquat. If they have primrose, they will go in a little earlier with 2,4-D.

TRAINING WHEELS

The perfect blend of cover crops will be different for different growers. “So, before you plant a cover crop, you first have to sit down and decide exactly what you want out of the it,” says Dr. Bill Robertson, University of Arkansas cotton specialist. “Weed suppression is probably No.1 on a grower’s list. Several studies conducted by Dr. Tom Barber, University of Arkansas weed specialist, and me show that cereal rye is very good for weed suppression.” Robertson calls cereal rye “the cover crop with training wheels,” and says, “we urge growers just starting with cover crops to plant cereal rye because it’s so easy to manage. Later, they can expand into blends of multiple species, including cereal rye and black oats. Cereal rye is a very deep-rooted crop, with an extensive root system. Black oats have a different root system, but give you diversity. “I want a cover crop to produce roots as many months during the off season as I can get, because roots are what feed the soil microbes. They keep microbes in the growing mode, instead of just a survival mode, to help improve soil structure. Some growers who consistently use a cereal rye cover crop no longer have to do deep tillage. Our university studies show that deep-rooted cover crops can cut back tillage to almost nothing.” Robertson cautions growers about the “green bridge” — planting cotton into green cover crops can exacerbate overwintering insect pressure. But, terminating cereal rye too early can cause planting problems. “We’ve found that when we terminate cereal rye 4 weeks to 5 weeks before planting, the rye stems harden and tangle like little ropes. Rolling makes it worse.

MANAGE BROADLEAF WEEDS

“Many growers terminate cereal rye right in front of, or behind, the planter. When cereal rye is green, the planter’s double-disc opener cuts through it like a hot knife through butter. And you can run a roller in front of tall cereal rye. Everything lays the same way, making it easy to plant into. This doesn’t eliminate the green bridge issue; to eliminate that, the cover crop must be dead at planting.” However, the key to easing planting in cereal rye while minimizing the green bridge issue is to manage broadleaf weeds. “Most early season insect pests overwinter on broadleaves,” Robertson says. “So, in February I take out broadleaves in my cover crop with 2,4-D or dicamba. When I later plant cotton, I only have a grass cover crop, and I’m more comfortable terminating the cover crop in front of or behind the planter.”Another benefit of cover crops is related to irrigation: improved water infiltration. In several studies, Robertson installed soil moisture sensors in the field 6 inches, 12 inches, and 18 inches deep. “I work with several growers who split a field in half, using their regular practices on one half, and cereal rye cover crop on the other half,” he says. “Where they use no cover crop and reduced tillage on one half, and I use almost no-till and a cover crop on the other half, my watering infiltration is so much better. When I get a rain or irrigation on non-cover crop ground, sometimes my 6-inch deep sensor never knows it. But, where I have a cover crop, a rainfall or irrigation will impact all the way down to the 18-inch sensor. “When water goes that deep, roots also grow that deep, enhancing water and nutrient uptake, Robertson says. “I think we can grow cotton more cheaply with cover crops because our irrigation efficiency is improved.”

Source: Delta Farm Press

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Readers Predict 2018 Apparel Trends

We recently asked Wearables readers to share their thoughts on 2018, specifically which apparel trends they expect to pick up steam in the new year. We received a range of thoughtful responses, though trucker caps and ringspun cotton tees topped several readers' hot lists. Nadav Raviv, City Paper Company: I’m excited to see a few things. First, the incorporation of North Face into our industry. It’s very popular in the Southeast and will surely be a hit. I’m also looking forward to seeing new decoration methods, like HDX technology and similar appliqués. Our customers are always pushing us to find new, innovative ways of decorating. Gary Mosley, Kati Sportcap & Bag: Caps should continue to dominate the market as they have in recent years. Caps have always been one of the most cost-efficient apparel items to get an advertising message across, and with the recent popularity explosion of trucker caps, they should continue to be very popular through 2018. Denise Scalf, Punch Promotional Products:We’ve seen a shift the last two years (especially in the warmer months), from cotton to performance material. Clients find it much more comfortable. It’s great for anyone working outdoors or in hotter conditions. Danielle Neuendorf, The Thread Line: I think trucker hats have made a comeback and are very popular at this time. They are a great way to create a design at a good price. I do think we will see an upswing in fashion apparel. It’s what the end users are demanding! Distributors seem to be excited about the addition of American Apparel and Columbia for nextDavid Rakowitz, Lone Star Tees:We’ve seen an upward trend in several areas: performance T-shirts, trucker caps (especially the charcoal front/neon mesh styles) and more retail-type T-shirts, such as Next Level and Bella Canvas. We feel this trend will continue well into the new year. Andrew Janosick, Proforma Executive Business Services: I see clients trending away from basic cotton tees and really moving toward the ringspun cotton over the last year. You see the evolution even in your local 5K races. I run a fair share of races, and when I receive the old 100% cotton tees, I just donate them to the local Salvation Army, but when I get handed the ringspun cotton tees from the likes of Next Level and Canvas, I’m glad to keep them. Marshall Atkinson, InkSoft: Colored heathers are still the king right now. Explosive growth. I see this trend continuing, and when partnered with the right graphic, a huge moneymaker for shops. An interesting note is that companies like August are using water-based printing for the patterns to help solve the dye-migration challenge. Guy Moore, Garnet & Gold: Looks like denim is making a comeback.

Source: Web Exclusive

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SARS clamps down on illegal clothing and textiles imports

Pretoria – SARS customs officials say they have carried out a massive illegal clothing and textile imports bust, seizing goods worth more than R20m at OR Tambo International Airport over two days. Four consignments of suspected counterfeit goods, with a combined value of R20.5m, were intercepted. The goods included 10 300 "Nike" sneakers, 100 "Louis Vuitton" bags, 2 000 children's "Nike" sneakers, 470 "Gucci" dresses and 1 600 ladies "Polo" and "Chanel" shoes from China. “We are trying to be as responsive as possible to the industry’s plight. We are currently working on numerous clothing and textile cases worth millions of rands,” said Patrick Moeng, executive at customs investigations. He said that customs had increased its vigilance when it came to clothing and textile items. This was one of 561 busts that SARS customs officials have carried out since a special "increased inspections" operation started at the City Deep depot in August this year. The operation focuses specifically on prohibited and restricted goods, such as counterfeit clothing and shoes. So far, there have been 132 busts related to clothing and textile infringements, bringing in more than R10.5m revenue since August. Customs said it was also focusing on "plugging the leaks at non-designated border posts”. Three weeks ago, a bust at Kosi Bay netted suspected counterfeit clothing and footwear, with a street value of about R1.2m. This border post was targeted as a smuggling hotspot due to a lack of controls, customs said. "Once we have assessed the risk at these border posts, we will focus on strategy and capacity planning at non-designated ports going forward," Moeng said.

Source: News 24

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