1. First Mega International trade event-“Textiles India 2017”
The first ever mega international trade event for the textile sector was organized in Gandhinagar, Gujarat from 30 June, 2017 - 2 July, 2017 to showcase the incredible strength and range of India’s textile and handicrafts industry. The event recorded participation from more than 100 countries and generated business and business enquiries of about Rs. 3, 50,000 lakh. A total of 65 MoUs with an estimated value of more than Rs. 11,000 crore were signed during the event. The event has firmly established Indian Textiles brand at the global platform and has provided new energy for attracting fresh investments in the textiles sector. Besides a mega exhibition that showcased the richness of Indian textile tradition, the three-day Textiles India 2017 witnessed also a host of activities, including country sessions for Korea, Bangladesh, Russia and ASEAN countries, and state sessions for Andhra Pradesh, Maharashtra, Assam, Gujarat, Telangana, and Karnataka. Six major conferences and 27 roundtables on various subjects were also held. Following institutional mechanisms have been set up to give effect to the recommendations of conferences and roundtables during Textiles India 2017:
a) An inter-ministerial steering committee to oversee implementation of a Knowledge Network Management System (KNMS) for exchange of knowledge amongst academia, farming community and the industry on the productivity of natural fibres and diversification of their bye-products
b) An Inter-Ministerial Synergy Group on Man-Made Fibre (MMF) to formulate policy interventions to enhance growth and competitiveness of MMF industry in India
c) A Task Force on Textiles India to steer follow-up action on various outcomes of Textiles India 2017 for growth of the textiles sector
2. Powerloom Sector:
“PowerTex India” has been launched on 1st April, 2017, with an outlay of Rs. 487 crores for three years to support 44 lakh workers/weavers. The scheme has components relating to loom upgradation, infrastructure creation and concessional access to credit. It has the potential to generate investments worth Rs. 1000 crores, employment for 10,000 people and will also result in higher returns to powerloom units.
SAATHI: ‘SAATHI’ (Sustainable and Accelerated Adoption of Efficient Textiles Technology to Help Small Scale Industries) was launched jointly by Ministry of Textiles and Ministry of Power to provide energy-efficient powerlooms, motors and rapier kits to small and medium powerloom units at no upfront cost. Energy Efficient Services Limited (EESL) would procure and provide these equipments to the workers at no upfront cost and the worker would repay in installments to EESL over a period of 4 to 5 years. The initiative will help 24.86 lakh powerloom units in the country. A toll free helpline No. 1800220017 has been started at Office of the Textile Commissioner, Mumbai from 01.04.2017, to facilitate Powerloom weavers. A dedicated website www.ipowertexindia.gov.in has been created whereby Powerloom weavers can apply online for various schemes under PowerTex India. The entire process ranging from application and sanction of subsidy has been made online, so as to enable powerloom units to avail the facility in an effective, transparent and seamless manner. The beneficiary can also track the status of their application in iPowerTex android Mobile App. The online portal and Mobile App are operational from 1st December, 2017 on optional basis. Online application will be made mandatory from 1st January, 2018. Ministry of Textiles has introduced a new Converged Group Insurance Scheme for Powerloom weavers by clubbing Pradhan Mantri Jeevan Jyoti BimaYojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojna (PMSBY) for the age group of 18 to 50 years and Aam Aadmi Bima Yojana(AABY) for the age group of 51 to 59 years, effective from May 2017. 72,378 Powerloom weavers have been enrolled / insured till November 2017.
3. Handloom and Handicraft sectors:
Deendayal Hastkala Sankul, the first ever state-of-the-art trade centre and crafts museum at Varanasi, was dedicated to the public by the Hon’ble Prime Minister of India on September 22, 2017. Set up on a sprawling 7.5 acres of land, the centre would provide world-class marketing facilities to the weavers and artisans and would also boost the tourism potential of Varanasi.India Handmade Bazaar, an online portal to provide direct market access facility to artisans and weavers, was launched on January 29, 2017. The portal enables weavers & artisans to enter information about their products for easy understanding of customers/exporters. Weavers and artisans can access the portal through their registered mobile number. Weavers’ Mudra Scheme, which was launched last year to provide concessional credit to handloom weavers, has picked up momentum. 28,000 weavers have benefited from the scheme so far and loans amounting to Rs. 138 crore have been sanctioned. A similar scheme was launched for handicraft artisans too, under which 2,173 artisans have been sanctioned loans of Rs.11.5 crore.
Hastkala Sahayog Shivirs:
For the first time, a massive outreach programme for weavers and artisans was organized through Hastkala Sahayog Shivirs. 394 such Shivirs were held in 247 districts across the country during October 7 – 17, 2017. About 94,000 weavers and artisans participated in these camps, attended also by several Union Ministers, State Ministers, MPs and MLAs. In the Shivirs, weavers and artisans received assistance in availing MUDRA loan, supply of looms, accessories and tool kits, Pehchan cards (ID cards), yarn passbooks and for enrolment of their children for formal education through NIOS and IGNOU.
MoU with M/s. CSC e-Governance Services India Ltd.:
The Ministry of Textiles signed an MoU on August 7, 2017 to set up Common Service Centers (CSCs) in Weavers’ Service Centres and handloom clusters. Weavers will be provided access to healthcare, financial and education services, essential public utility services, social welfare schemes and exhibition and marketing support through these CSCs.
MoU with Financial Corporations:
An MoU was signed with National Backward Classes Finance Development Corporation (NBCFDC) and National Schedule Castes Finance Development Corporation (NSFDC), to implement schemes of Government of India for artisans and weavers belonging to OBC and SC categories in 14 identified clusters, with necessary forward linkages for income sustainability and enhancement.
Educational facilities to children of handloom weavers:
Memorandums of Understanding were signed with IGNOU and National Institute of Open Schooling (NIOS) to provide customized educational services to weavers. The Ministry of Textiles provides 75% of the fee in case of SC, ST, BPL and Women weaver families. Kamala Devi Chattopadhya National Award’ for women weavers was introduced on on the occasion of International Women’s Day, on March 8, 2017. Pushtaini Hunar Vikas Yojana was launched at Institute of Carpet Technology, Badohi to impart technical and soft-skills training to weavers from traditional carpet-weaving families. On the lines of Bunkar Mitra helpline for handloom weavers, a dedicated helpline for artisans (helpline No. 1800 208 4800) was launched on May 5, 2017. The helpline provides 24x7 services in seven languages – Hindi, English, Kannada, Assamese, Bengali, Tamil and Telugu. 8.92 lakh artisans received Pehchan ID cards which would enable them to smoothly access the benefits they are entitled to. On the occasion of the birth centenary of Bharat Ratna Dr. B.R. Ambedkar on April 14, 2017, a conference of artisans and weavers belonging to the SC communities was organized in New Delhi. The birth centenary was celebrated also at 61 field offices of Office of the Development Commissioner (Handicrafts), where special camps were organized with the help of bank officials. Artisans were provided education on use of BHIM application for making digital payments and were also given MUDRA loans, tool kits and other services.
E-Commerce:
In order to provide direct marketing platform to handloom weavers and artisans, 21 leading e-commerce companies have been engaged for online marketing of handloom products. Sales worth more than 5.5 crore have been achieved through e-marketing in 2017-18.
India Handloom Brand:
Indian Handlooms got worldwide recognition through India Handloom Brand (IHB) which guarantees high quality, authentic handloom items made with organic substances. Partnerships have been entered into with 100 retail stores to sell exclusive India Handloom Brand items, out of which 25 retail stores have started operations. 23 garment manufacturers are working with IHB producers for sourcing fabrics from IHB-registered weavers. Leading garment brands have been working with IHB in bringing out a separate range of garment line using handlooms.
4. Technical Textiles
Technotex 2017, the 6th International Exhibition and Conference on Technical Textiles, was held from April 12 - 14, 2017 in Mumbai. Maharashtra was the host state while Gujarat, Jharkhand and Karnataka participated as partner states. A CEOs’ forum with major players of the technical textile industry was also held. Industry from 22 countries such as China, Taiwan, U.S.A., Japan, France, Ghana, Indonesia and Bangladesh exhibited their products at the exhibition. Eleven Focus Incubation Centers (FICs) in Centres of Excellence and in IITs (Delhi, Bombay, Kanpur & Kharagpur) have been established at a cost of Rs. 59.35 crore. FICs will provide plug-and-play facility to potential entrepreneurs to enter technical textiles business. Notification of Post-GST Rates under Refund of State Levies: The Ministry has notified post-GST rates vide Gazette Notification No. 14/26/2010-IT dated November 24, 2017 under the scheme for Remission of State Levies (RoSL) on exports of readymade garments & made-ups and under AA-RoSL for garments. For garments, the rates range between 1.25% and 1.70% and for Made-ups, they range between 1.40% and 2.20%. These rates have been made effective from October 1, 2017. The Government has also enhanced the rates under Merchandise Exports from India Scheme (MEIS) on readymade garments and made-ups from 2% to 4%. These rates will be applicable between 1st November, 2017 and 30th June, 2018 and are expected to boost Indian exports in the textile sector.
5. Silk Sector
Production of Import Substitute Raw Silk:
The production of import substitute bivoltine silk in the country is expected to reach around 6,200 MTs in 2017-‘18 as compared to 5,266 MTs in 2016-‘17, registering an increase of 19%. Muga silk has recorded highest ever production of 170 MTs and has acquired a new growth momentum. Bivoltine silk production has grown by 105% in the last three years and has enabled substantial import substitution. The indigenous automatic reeling machines and Buniyad reeling machines were launched on March 8, 2017 to increase quality and productivity. Buniyaad machines have also helped in doing away with the regressive practice of thigh reeling by women. An MoU for cooperation in sericulture sector has been signed between Central Silk Board and Guangxi Agriculture Department, China on July 1, 2017 at Gandhinagar. The MoU envisages collaboration between the two institutes to develop disease-resistant species of silkworm seeds. A state-of-the-art Centre of Excellence for training has been established at Bangalore, with classroom and laboratory facilities for practical training.
6. Cotton Sector
India has acquired the first place in the world in cotton acreage, with an area of around 105 lakh hectares. India has emerged the largest producer of cotton in the world, with a production of 345 lakh bales in 2016-17. India is also the 2nd largest exporter of cotton.
MSP Operations for Cotton:
To ensure remunerative price to cotton farmers, the Government of India has nominated the Cotton Corporation of India (CCI) as nodal agency to undertake Minimum Support Price (MSP) operations in all cotton-growing states when prices of seed cotton (kapas) touches the MSP level. In the present cotton season 2017-18, 88.31 lakh bales of kapas had arrived till December 13, 2017, out of which, 3.62 lakh bales have been procured by CCI under MSP operations.
7. Jute Sector
Approval of Price for Raw Jute for the year 2017-18:
Cabinet Committee on Economic Affairs approved the Minimum Support Price (MSP) of raw jute (TDN3 equivalent to TD5 of old grade) for 2017-18 season at Rs. 3,500/- per quintal. It also approved that Jute Corporation of India will continue as Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in the MSP operations will be fully reimbursed by the Central Government.
8. Technology Upgradation Fund Scheme
A total of 3,504 cases have been approved under Amended Technology Fund Scheme (ATUFS), with a projected investment of Rs 12,426 crore against government subsidy of Rs 956.50 crore. These new projects have the potential to create about one lakh new jobs, in addition to supporting about 3 lakh existing employees.
9. Unlocking potential of North Eastern Region in textiles
The Government of India organized the first ever North East Investment Summit focusing on manufacturing in textiles and allied sectors at Shillong during January 29 – 30, 2017, to unveil the potential of the region as a global investment destination. The summit was attended by many central ministries, all NE states, Export Promotion Councils, Industry Associations and investors from India and neighboring countries. 21
Memorandum of Understandings (MoU) to promote investment opportunities, business and R&D projects in NER were signed during the summit. The Apparel & Garment Centre at Ampati, Meghalaya was inaugurated by the Union Textiles Minister Smt. Smriti Zubin Irani on January 30, 2017. The Centre was set up under North East Textiles Promotion Scheme (NERTPS). Ministry of Textiles is implementing sericulture projects in NER with Central Government support of Rs.690.01 crore. Objectives of these projects are to establish sericulture as a viable commercial activity in NER, by creating necessary infrastructure and by imparting skills to the locals for silk worm rearing and allied activities in the silk production value chain. Under the project, a total of 28,200 acres have been brought under host plantation of Mulberry, Eri and Muga silk, supporting beneficiaries across all NE States. The interventions have helped in production of 1,460 MT of raw silk, registering a cumulative increase of 36% from 2014-15 to 2016-17.
Scheme for Promotion of Geotechnical Textiles in NER:
Four new road projects (two in Mizoram and two in Meghalaya) have been initiated and Rs. 8.80 crore have been released for construction of more durable roads. So far, 34 new projects have been approved in 8 NER States with a cost of Rs. 98.19 crore.
One road project of Airport Road, Manipur has been completed with the application of geotextiles. The application of Geotextiles in the construction of two road projects - Khudrakpam to Taorem in Imphal District of PMGSY under MSRRDA, Manipur and Shillong- Nongstoin Road, Meghalaya - are under progress.
10. National Institute of Fashion Technology
A NIFT campus at Srinagar became functional in 2017. The campus was set up at a project cost of Rs. 325.36 crores. A graduate prograame focusing on cluster crafts has been started from the 2017 academic session. NIFT had signed MoUs with Development Commissioner (Handicrafts) and Development Commissioner (Handlooms) for cluster initiative for symbiotic collaboration in linking handloom clusters with budding fashion professionals. USTTAD (Upgradation of Skills and Training in Ancestral Arts/Crafts for Development) project initiated in collaboration with Ministry of Minority Affairs will encompass 25 handicraft and handloom clusters. Four one-year Certificate Programmes have been initiated; these are Certificate Programme in Fashion Design Development (CPFDD), Certificate Programme in Fashion Design and Management (CPFDM), Certificate Programme in Application of Information Technology in Fashion (CPAIT) and Certificate Programme in Knitwear Design and Manufacturing (CPKDM).
11. Skilling in Textile Sector
As part of the Government's broad focus on Skill Development, Ministry has been implementing Integrated Skill Development Scheme (ISDS), an employment linked programme for meeting the skill requirement of textile industry. More than 4.8 lakh people have been trained during last year of which 74% have been placed. On December 20, 2017, the Union Cabinet gave its approval for a new skill development scheme covering the entire value chain of the textile sector excluding Spinning & Weaving in organized Sector, titled "Scheme for Capacity Building in Textile Sector (SCBTS)" from 2017-18 to 2019-20 with an outlay of Rs. 1300 crore. The scheme will have National Skill Qualification Framework (NSQF) compliant training courses with funding norms as per the Common Norms notified by Ministry of Skill Development and Entrepreneurship. The objectives of the scheme are to provide demand driven, placement oriented skilling programme to incentivize the efforts of the industry in creating jobs in the organized textile and related sectors; to promote skilling and skill up-gradation in the traditional sectors through respective Sectoral Divisions/organizations of Ministry of Textiles; and to provide livelihood to all sections of the society across the country. The scheme will be implemented for the benefit of all sections of the society across the country including rural, remote, LWE affected, North East, J&K by imparting skills in the identified job roles. Preference will be given to various social groups, SC, ST, differently abled, minorities and other vulnerable groups. Under previous scheme of skill development implemented by the Ministry of Textiles in the XII Plan period, more than 10 lakh people have been trained of which more than 70% were women. Considering that the apparel industry, a major segment to be covered under the scheme, employs majorly women (about 70%), the trend is likely to be continued in the new scheme. 10 lakh people are expected to be skilled and certified in various segments of Textile Sector through the scheme, out of which 1 lakh will be in traditional sectors.
12. RESEARCH AND DEVELOPMENT SCHEME
A project titled “National Sizing Survey of India” for developing Indian standard size of apparel has been sanctioned to National Institute of Technology (NIFT), at a total cost of Rs.31 crore. A project titled “Development of Value Added Textile Product From Different Fibres” in Himalayan Region has been sanctioned to the textile research association NITRA.
13. NATIONAL TEXTILE CORPORATION (NTC)
NTC has registered a net profit of Rs. 969.38 Cr. during 2016-‘17. The company produced 300 lakh kg. of yarn & 111 lakh metres of cloth during April-October, 2017. Productivity of NTC mills has improved to 94.14 gms during April-October, 2017 against 94.10 gms. during 2016-‘17. All the details of land available with NTC i.e. location, area etc. has been digitized.
14. Web-based software system for Collection of Textile Statistical Return:
Office of the Textile Commissioner has put in place a web-based software system - Textile Statistical Return System (TSRS), to collect necessary data from all textile units. Around 500 units have been registered on this web portal.
15. Swachhata Hi Sewa campaign:
Ministry of Textiles organized Swachhata Hi Sewa campaign at all its offices/ organizations across the country from September 15, 2017 to October 2, 2017. The Textiles Minister Smt. Smriti Zubin Irani participated in Shramdan Sewa Diwas on September 17, 2017 in Chandigarh; Minister of Textiles, Shri Ajay Tamta participated in Uttarakhand and Secretary (Textiles), Shri Anant Kumar Singh participated in Weaver Service Centre at Hyderabad.
Source: PIB Government of India
The textiles ministry, which had allocated a sum of Rs 126.76 crore for 2017-18, Rs.83.08 crore has already been spent till now and is planning to seek an additional Rs 33.27 crore for the Power Tex India scheme in the form of supplementary demand for grants, said textile minister Smriti Irani earlier this week in the Rajya Sabha. The information came in response to a question by R Vaithilingam of AIADMK, who also sought to know if the government is considering to enhance the capital subsidy for powerlooms in the country. Infact, there is no proposal as yet on enhancing the capital subsidy from the present 10% to 30 percent. The ministry of textiles announced that the yarn bank scheme under Power Tex India was formed with an objective of providing interest free corpus fund to special purpose vehicles or consortiums to enable them to purchase yarn at wholesale rate and give the yarn at a reasonable price to small weavers. In the period 2017-18, 48 yarn bank proposals and 118 group work shed proposals have been approved. According to the ministry of textiles only two applications for group work sheds are pending.
Source: Yarns and Fibers
One Hundred and Thirty-Ninth Report on ‘Impact of Goods and Services Tax (GST) on Exports’ The Department Related Parliamentary Standing Committee on Commerce, under the Chairmanship of Shri Naresh Gujral, MP, Rajya Sabha presented the One Hundred and Thirty-Ninth Report on ‘Impact of Goods and Services Tax (GST) on Exports’ to the Rajya Sabha on 19th December, 2017. The Report has simultaneously also been laid on the Table of Lok Sabha. The full Report is available on the website www.rajyasabha.nic. in. Gist of main recommendations of the Committee is given below:-
REFUND MECHANISM UNDER GST
The Committee notes that refunds has started to trickle only from the month of November, 2017 and the intervening period of four months from July to October, 2017 has been extremely trying for the exporters. The significant time lag in providing refunds has supposedly eroded the competitiveness of exporters by around 1.2 per cent to 2 per cent. It is felt that if the stuck up capital reaches a figure of 2025 per cent of the working capital then it will result in a steep downward spiral of our exports. (Para 2.8) The Committee notes several operational issues existing in the refund mechanism making the refund ‘procedure tardy and cumbersome. The Committee feels that the optimal functioning of refund mechanism in the GST regime is of utmost importance to ensure smooth functioning of exports. (Para 2.15) The refunds are being disallowed on slightest pretext. The Committee appreciates that due diligence is sine qua non for granting refunds but this cannot be overplayed inasmuch as that one cannot see the wood for the trees. (Para 2.16) The Committee desires that a formal mechanism for grievance redressal of exporters must be put in place. It is of the view that a dedicated office/unit may be established for continuous interaction with exporters and act as a single window for their grievance redressal. (Para 2.23)
DUTY DRAWBACK SCHEME (DBK) AND REBATE OF STATE LEVIES (ROSL)
The Committee finds that the new Drawback and ROSL rates (post transition, effective from 1st October 2017) are low and not realistic. They do not capture the various blocked taxes that reduce the cost competitiveness of various labour intensive industries. (Para 4.4) The Committee is of the considered opinion that sudden withdrawal of the incentives extended earlier under Duty Drawback Scheme will lead to the collapse of labour intensive industries. This will have a cascading effect on employment and livelihood of poor workers in these industries. (Para 4.7) The Committee recommends that the Department of Revenue, Ministry of Finance extend the pre-GST Duty Drawback rates till 301” June, 2018 or till such time the Department works out the revised duty drawback rates. (Para 4.8) The Committee recommends that the Government provide for a duty drawback rate which would encompass all the taxes including the GST/IGST levied as well as embedded/blocked tax and give a choice to the exporters to either claim the Duty Drawback or follow the Input Tax Credit route. This will also release the pressure on GSTN. (Para 4.9)
DUTY CREDIT SCRIPS
The Committee strongly recommends that the duty credit scrips may be permitted for payment of GST in domestic procurements and the payment of IGST on exports and imports of goods and services. (Para 5.3)
REFUNDS ON CAPITAL ASSETS/GOODS RELATABLE TO EXPORTS
Absence of enabling provision resulting in denial of credit of Countervailing Duty (CVD) and Special Additional Duty (SAD) in case of non-fulfillment of export obligation may be addressed on priority. (Para 6.5)
MERCHANT EXPORTERS
The Committee feels that in the cases of ‘High Seas Trade’, where the goods never enter India and are directly delivered to the customers outside India on instruction of the Indian supplier, it would be preferable that such transactions are kept outside the purview of GST in India. (Para 9.9)
REVERSE CHARGE MECHANISM AND EXPORTS
The Committee is of the view that in order to have hassle free exports as well as to give boost to small enterprises, reverse charge mechanism may be removed on a permanent basis in the procurement made in relation to export activity. (Para 10.2)
GST ON JOB WORK
Since the GST on job work for exports is revenue-neutral, the Committee is of the considered opinion that no GST may be imposed on job work for exports. The Committee understands that there may be concerns that it will be difficult to keep a track on such products that they do not enter domestic market. To tackle such a situation, the Committee feels that the Government may provide for criminal penalty for any such breach. (Para 11.2)
GST ON FREIGHT
GST on export freights through air, sea and railway may be exempted or rationalized. (Para 12.2)
EXPORT OF SERVICES
The Committee desires that the Government may revisit section 2(6) of the IGST Act and ensure that transactions between the Head Office and its branches may be kept out of its ambit. (Para 14.4)
PLACE OF SUPPLY OF SERVICES
The Government may cause amendment to section 13(8) of the IGST Act to exclude `intermediary’ services and make it subject to the default section 13(2) so that the benefit of export of services would be available. (Para 15.3)
CONCLUSION
The Committee feels that GSTN did not get enough time for testing. Even the training given to the officers on ground on issues like Letter of Undertaking (LUT) and related matters has not been adequate. (Para 17.1) The Committee feels that if the taxes are to be finally refunded then what is the need to put the exporters to the rigmarole of paying taxes and taking its refund or taking refund of unutilized input tax credit. It has been experienced that it is easy to pay tax but it is very difficult to get a refund. The Committee feels that a system may be devised to ensure that the procurement/manufacture for export purpose may be exempted from taxation system. (Para 17.2) The Committee is certain that the Government will take all corrective measures in the present taxation system to ensure a sustained growth trajectory of our exports. (Para 17.4)
Source: Tax Guru
The Uttar Pradesh government on Tuesday in a cabinet meeting presided by Chief Minister Yogi Adityanath, the proposal of the Handloom, Power loom, Textile and Garment policy 2017 was granted approval to promote its textile industry. Talking about the decisions of the Cabinet meeting, UP government Spokesperson and Health Minister Sidhharthnath Singh said that the decision will lead to increase in employment, as well as business opportunities, while industries like Silk and weaving will get promoted. The traders will get help in finance and marketing through this scheme, apart from rebate in GST and electricity bill, along with reimbursement of transportation and Provident Fund. Also the investors in UP investor summit scheduled in February, will be benefited through this policy.
Source: YarnsandFibers
Chennai-based Indian Terrain Fashions plans to turn a Rs 1,000-crore firm by fiscal 2020-21 by expanding its sales network and reach, particularly in north and east India, according to company chairman and managing director Venky Rajagopal. It expects its kids- wear brand India Terrain Boys to grow four times to Rs 200 crore in the next three years. The company, which has a gross revenue of around Rs 700 crore this fiscal and is growing with a compound annual growth rate of over 20 per cent, is also optimistic about a higher contribution from accessories to its bottom line, Rajagopal told a news agency. Launched two years ago, the India Terrain Boys brand is already generating a Rs 50-crore revenue. The company will ramp up its distribution network in north, east and the north-east region. Forty per cent of the company’s revenue at present comes from south India, 20 per cent each from west and north, and the rest from the eastern region and online sales. Online sales contribute 3 to 4 per cent of the total revenue, he added.
Source: Fibre2Fashion
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) recently urged the government to provide interest equalisation of 3 per cent for yarn exports in the next budget to ensure that domestic products can compete in global markets. The suggestion was part of its pre-budget recommendations on indirect taxes submitted to the government. Two per cent of the benefits of the Merchandise Exports from India Scheme (MEIS) be extended to the spinning sector as the recent spike in raw material and other input costs have made the industry's survival tough, the industry chamber requested. Drawing attention to implementation-related problems in the Technology Upgradation Fund Scheme (TUFS) in the last three to four years, ASSOCHAM requested that enough provision be made in the next budget to take care of old left out cases and the current dues in this scheme, according to India media reports. The chamber also urged the government to reduce the hank yarn obligation by half from the current level of 40 per cent and sought abolition of customs duty on import of wool fibre. Apparel-grade wool of fine micron and other animal hair are not available in our country and have to be imported. The goods and services tax (GST) on man-made fibre should be reduced from 18 per cent to 12 per cent and there should be an exemption from payment of GST on export of goods as the process results in blockage of working capital for a long duration, the chamber added in its representation.
Source: Fibre2Fashion
International Textile Machinery & Accessories Exhibition (ITMACH) India, the largest textile exhibition in the country, showcased excellence and innovation in textile technology. Over 350 exhibitors from Germany, Switzerland, Italy, Belgium, Turkey, China, Taiwan and Japan among others showcased their latest ware at the exhibition that ended recently. The exhibition held in Gujarat witnessed a visitor footfall of about 38,000 including entrepreneurs, decision making technocrats and industry professionals. A large number of leading textile machinery manufacturers participated in ITMACH India which helped the 2nd edition of show to grow three fold compared to the premier edition. The exhibition encompassed products across the entire value chain of the textile manufacturing right from spinning, knitting, weaving, processing, garmenting to yarn and fibre. The exhibition not only created opportunities both for buyers and sellers in a significant way, it also ensured that global participation brought the markets closer in terms of awareness on technology, partnerships, market opportunities and sourcing. "The stream of visitors had a first-hand experience of coming face to face with the latest textile machinery and technology. The exhibitors introduced them to the next generation technology that was on their shelves for ready use by the textile industry. The visitors also got to meet technical experts from leading textile machinery and technology suppliers and industry professionals. They also exchanged ideas on latest trends, developments and opportunities," said K AND D ITMACH Expositions LLP, organiser of ITMACH India, in a press release. The 3rd edition of ITMACH India will be hosted from December 5-8, 2019.
Source: Fibre2Fashion
NEW DELHI: Cotton export is estimated to increase by 15 per cent to 67 lakh bales (of 170 kg each) in the current 2017-18 marketing year, which started in October, because of the rise in the output of the commodity, Parliament was informed today. This assessment was made by the Cotton Advisory Board. The shipments were aggregated at 58.21 lakh bales during 2016-17 marketing year, Minister of State for Textiles Ajay Tamta said in a written reply to the Lok Sabha. The crop production is estimated to increase to 377 lakh bales during the 2017-18 period, from 345 lakh bales. As for higher production cost in the textile industry, he also said, cotton prices show that in comparison to the previous year, average prices have decreased by 2-4.8 per cent for various cotton varieties. In a separate reply, the minister said the government is taking several measures to promote procurement of cotton from farmers on minimum support prices through Cotton Corporation of India (CCIL). "During the current cotton season, CCIL has opened 348 procurement centres to ensure remunerative prices to farmers. As on December 20, 97.59 lakh bales have arrived for cotton season 2017-18. Out of which, 3.66 lakh bales have been procured by CCIL under MSP operations from farmers," he added.
Source: PTI, The Economic Times
Ahmedabad: In an effort to promote and boost apparel exports from Gujarat, the Apparel Exports Promotion Council (AEPC) inaugurated its office in Ahmedabad on Tuesday. State chief secretary, JN Singh, along with state principal secretary (education) Sunaina Tomar were present at the inauguration ceremony on Gujarat Chamber of Commerce and Industries (GCCI) premises. On the sidelines of the inauguration, GCCI also announced its international exhibition named 'Farm to Fashion' to promote textile and apparel industry of the state. The exhibition will be held in the second week of March 2018. Talking to TOI, chairman, AEPC, Ashok Rajani said that in the past three months, apparel exports had declined by 12% due to GST and several other reasons. "There are several taxes which have not been subsumed under GST, including petrol-transportation, electricity and cotton seeds which increase the tax burden by 11.5%. Due to this, the industry is suffering," he said. "Currently, apparel exports from India are worth $17 billion and if the government takes necessary measures, this is likely to grow by 20%," Rajani said. J N Singh, chief secretary, Gujarat government, said that the 12th office of AEPC will help promote apparel exports from the state and thus give a boost to Gujarat's garment manufacturing industry. "This will help complete the textile value chain of farm to fashion, in Gujarat," Singh said. tnn
Source: The Times of India
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1349.80 |
USD/Ton |
0% |
12/27/2017 |
|
VSF |
2174.89 |
USD/Ton |
0% |
12/27/2017 |
|
ASF |
2296.56 |
USD/Ton |
0% |
12/27/2017 |
|
Polyester POY |
1317.86 |
USD/Ton |
0.35% |
12/27/2017 |
|
Nylon FDY |
3330.77 |
USD/Ton |
0% |
12/27/2017 |
|
40D Spandex |
5703.38 |
USD/Ton |
-1.32% |
12/27/2017 |
|
Polyester DTY |
3171.08 |
USD/Ton |
0% |
12/27/2017 |
|
Nylon POY |
2524.69 |
USD/Ton |
0% |
12/27/2017 |
|
Acrylic Top 3D |
1604.55 |
USD/Ton |
0% |
12/27/2017 |
|
Polyester FDY |
3589.32 |
USD/Ton |
0% |
12/27/2017 |
|
Nylon DTY |
5749.00 |
USD/Ton |
0% |
12/27/2017 |
|
Viscose Long Filament |
1547.52 |
USD/Ton |
0% |
12/27/2017 |
|
30S Spun Rayon Yarn |
2851.69 |
USD/Ton |
0.27% |
12/27/2017 |
|
32S Polyester Yarn |
2024.32 |
USD/Ton |
-0.08% |
12/27/2017 |
|
45S T/C Yarn |
2889.71 |
USD/Ton |
0% |
12/27/2017 |
|
40S Rayon Yarn |
2996.17 |
USD/Ton |
0% |
12/27/2017 |
|
T/R Yarn 65/35 32S |
2509.49 |
USD/Ton |
0% |
12/27/2017 |
|
45S Polyester Yarn |
2174.89 |
USD/Ton |
0% |
12/27/2017 |
|
T/C Yarn 65/35 32S |
2433.44 |
USD/Ton |
0% |
12/27/2017 |
|
10S Denim Fabric |
1.42 |
USD/Meter |
-0.11% |
12/27/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
-0.17% |
12/27/2017 |
|
40S Combed Poplin |
1.22 |
USD/Meter |
0% |
12/27/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
12/27/2017 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
12/27/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15209 USD dtd. 27/12/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
China has decided that the environmental protection tax－levied on air, water, solid waste and noise pollution starting on Monday－will all go to local governments, a move designed to boost their enthusiasm and further invigorate the environmental protection campaign. When the Environment Protection Tax Law enters into force on the first day of 2018, businesses and public institutions will be taxed for directly discharging pollutants on China's territory and other maritime areas under its jurisdiction, according to a State Council notice signed by Premier Li Keqiang and released on Wednesday. The new tax, with all revenue going to local governments, will replace the current pollutant discharge fees, for which the central government takes a 10 percent share of the amount collected from enterprises. The new tax law, which officials began to design in 2014, aims to promote environmental improvement in all regions and expand the resources and responsibility for environmental protection, the document said. The measure took two years to enact, and was passed by the National People's Congress Standing Committee in 2016. It also aims to further improve living and environmental conditions, limit polluting emissions and other public hazards and safeguard human health. China has collected the pollutant discharge fee since 1979. In 2015, the government collected 17.3 billion yuan ($2.6 billion) from about 280,000 businesses, according to the Ministry of Finance. However, some local governments took advantage of loopholes and exempted some large enterprises that had contributed large amounts to local fiscal revenues. Considering local governments shoulder most of the responsibility for pollution control, the central government decided not to take a share of the new tax revenue to invigorate local government enthusiasm, Wang Jianfan, director of the ministry's tax policy department, said in December 2016. Liu Jintao, a tax lawyer at the Yifa Law Firm in Beijing, said the new levy will help promote environmental improvement and law enforcement will be strengthened. Enterprises will have to weigh the tax costs of discharging emissions, he said. The law gives local governments more autonomy by setting a range for the taxes. For example, polluters may have to pay between 1.2 yuan and 12 yuan for each unit of air pollution emitted, Liu said. Each region will consider its own environmental conditions when deciding the amount for the tax, Liu said. Beijing and neighboring areas, often beset with heavy smog, have decided to levy the tax at the highest level, he added.
Source: China Daily.
Textile industry dyeing for capacity, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking newsIn a document to the Vietnamese government that was accessed by VIR, general director of Eclat Fabrics Vietnam (EFV) Hung Cheng-Hai claimed that although EFV has invested in high technology and highly experienced experts, its factory in the southern province of Ba Ria-Vung Tau has not run at full capacity due to the low rate of textile dyeing. Eclat Fabrics, which has several well-known clients including Nike, Adidas, and Lululemon, received an investment certificate to develop the $40 million facility in 2007. However, according to the EFV document, “The limited rate of dyeing has made barriers for our business.” In 2006, to protect the Thi Vai River against heavy pollution, the Vietnamese government instructed Ba Ria-Vung Tau to ban five industrial manufacturing sectors along the river, including dyeing, tanning, starch processing, latex processing, and chemical production. In 2007, however, the Ba Ria-Vung Tau Department of Natural Resources and Environment approved the environmental impact statement for the EFV project. The Ba Ria-Vung Tau Industrial Parks Management Authority then issued an investment certificate to the company to develop the project, setting dyeing at 10 per cent of the output. Since then, provincial environmental authorities have expressed concern that, if the factory dyes 10 per cent of its fabrics, the discharged wastewater could pose a high risk for the aquatic environment of the Thi Vai River in the future. The Thi Vai River begins near Nhon Tho village in the southern province of Dong Nai’s Long Thanh district, then runs through Ba Ria-Vung Tau’s Tan Thanh district and Ho Chi Minh City’s Can Gio district before pouring into the East Sea. Its total length is some 76 kilometres and its total basin area is some 300 square kilometres. Many of the companies operating in the two provinces have been found to be discharging untreated wastewater into the river. Like many developing countries, Vietnam is undergoing rapid industrialisation. This has created prosperity but has taken a toll on the country’s natural environment and public health. Urbanisation and the rapid formation of industrial zones have caused rivers and waterways and their surrounding basins to become polluted at alarming levels. The EFV factory is not the only case of dyeing coming into conflict with local authorities for environmental reasons. The Hong Kong-backed TAL Group asked the government and the Vinh Phuc People’s Committee to grant investment certificates for a $350 million textile and garment dyeing project, but Vinh Phuc reported that the project was expected to discharge large volumes of wastewater flowing through highly populated areas, with potential adverse effects for agricultural production, aquaculture, and daily life. Assessing investment in industries of high pollution risk in Vietnam, especially textile-dyeing projects from China, Phan Huu Thang – former director of the Foreign Investment Agency under the Ministry of Planning and Investment – said that China is now paying the price for the rapid development of its textile industry with heavy pollution. He argued that Vietnam should be careful with textile-dyeing projects, to avoid falling into the same trap of environmental degradation. Vietnam now has about 4,000 garment and textile companies, including 650 foreign-invested firms. 70 per cent of these are garment companies, 17 per cent are textile companies, 6 per cent are spinning companies, and 4 per cent are dyeing companies. This demonstrates that Vietnam’s capacity is centred on the final stages of “cut, make, and trim”, while its low capacity in spinning, weaving, and dyeing makes it unable to produce sufficient inputs to supply domestic garment and textile companies. To create conditions to attract investment into the textile and garment sector without risking adverse impacts on river environments, the Vietnam Textile and Apparel Association has suggested that the government adjust textile-garment planning in the period 2035-2040, and build textile industrial zones of 500 to 1,000 hectares to encourage investment in spinning, weaving, and dyeing.
Source: VIR
Vietnam’s textile and garment exports to the Eurasian Economic Union (EAEU) have exceeded trigger levels, or the total amount subject to preferential tariffs allowed into EAEU markets for this year, the General Department of Vietnam Customs said on its website. According to the Ministry of Industry and Trade, the Department of Domestic Market Protection of the Eurasian Economic Commission has announced that 173.3 tons of underwear and 112.7 tons of children’s clothes from Vietnam had been shipped to EAEU in the year to end-October, exceeding the trigger levels for this year in accordance with a free trade agreement between Vietnam and EAEU. The agreement also stipulates that the union can slap safeguard duties on products beyond trigger levels within six months upon the shipment. In case the trigger levels are breached, Vietnamese underwear and children’s clothes will not be entitled to preferential tax and will be imposed Most Favored Nation (MFN) import duties.
Source: VietNamNet.
The favourable US dollar-taka exchange rate has lent a helping hand to apparel exporters in the outgoing calendar year, cushioning the fallout from the uncertain political climate in the Western world. In the first 11 months of 2017, Bangladesh exported garment items worth $26.40 billion, up 1.38 percent year-on-year, according to data from the Export Promotion Bureau. At the start of the year, the greenback traded between Tk 78 and Tk 79 and during the course of the year it crawled up. On December 20, it traded at Tk 83.20. “The current exchange rate is favourable for exporters. We should handle the exchange rate softly,” said Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh. He went on to suggest that the dollar can be allowed to appreciate to up to Tk 85. If it goes past the Tk 85-mark, it will be bad for the balance of payment and macroeconomic stability as imports would become costlier. However, exporters want further devaluation of the local currency. “The exchange rate has only started becoming export-friendly,” said Faruque Hassan, managing director of Giant Apparels, a leading garment exporter. The local currency should be devalued further against the dollar to compensate for the rising cost of production such that exporters can continue to be competitive on the global stage. At least 10 percent devaluation of the currency is fine for the sector as garment exporters have faced low exchange rate over the last five years, he added. “The exchange rate is still not up to the mark when compared with our competing countries like India and Turkey,” said Abdus Salam Murshedy, managing director of Envoy Group, another major garment exporter. Apart from the favourable exchange rate, the rising shipment of value-added items, brighter image of Bangladesh's garment sector after remediation works, relative political calm and automation of production also helped prop up garment exports in 2017. “The outgoing year was good for us,” Murshedy said, adding that the absence of any major untoward incident like labour or political unrest was a boon for the apparel exporters. Garment exporters are cautiously optimistic about the new year as the country's apparel sector is on a strong footing following the thumbs-up from the Accord and Alliance, the two foreign factory inspection agencies. Nearly 80 percent of the remediation works to fix electrical, fire and structural flaws have been completed. “After the inspection and remediation, our capacity has been internationally recognised. We are hoping for better business opportunities after this,” Murshedy said. Besides, the economies of major export destinations are rebounding gradually from the shocks of Brexit and general elections in many EU countries, he said. Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association, forecasts that export receipts will be about 10 percent higher next year. “Ideally, it should be more than 15 percent given the current capacity of the factories.” However, for achieving higher export growth the government should give the highest priority to addressing issues like congestions in the premier port in Chittagong, Hazrat Shahjalal International Airport and Benapole land port to shorten the lead-time, he said. Adequate power and energy should be ensured and the infrastructures, especially the Dhaka-Chittagong highway, must be enhanced. The exporters see the political instability as a major challenge in the new year as the general election is due to be held at the end of next year or in early 2019. “We expect there will not be any political instability -- we hope the political leaders will give priority to a stable export growth for the sake of the country.” A good number of new factories will come into operation next year as entrepreneurs are putting in money in the sector targeting the shifted work orders from China, the largest garment exporter worldwide.
Source: The Daily Star.
During the Parliament’s local administration committee’s meeting held to discuss a complaint regarding the misuse of state’s lands affiliated with a spinning and weaving company in Beheira governorate. The government has come up with a five year plan to develop spinning and weaving companies in northern Egypt, said Head of the Cotton and Textile Industries Holding Company Ahmed Mostafa on Wednesday. According to the complaint, these lands were being sold and leased for personal purposes. Mostafa agreed that there was a misuse of these lands and that the issue was under investigation. The government is working on solving such issues through development plans for spinning and weaving companies across the country so that the sector regains its glory. This five year plan need finance of about LE 20 billion. He said that some of the companies’ lands will be used to secure the LE 20 billion needed to finance the government’s plan to develop the spinning and weaving industry in the north Egyptian governorates of Alexandria, Beheira and Gharbia. The government aims to make these governorates attractive once again to the spinning and weaving industry. In November, Gharbia Governor Ahmed Sakr said that an industrial zone for spinning, weaving and ready-made garments would be established in Mahalla. The project comprises three industrial zones aiming to attract new investments of some LE 2 billion, create 25,000 jobs and establish more than 100 new spinning and weaving factories to develop the Egyptian industries with the participation of the private sector.
Source: YarnsandFibers
The world’s fifth biggest textiles and garment exporter, Vietnam is cracking down on polluters, while foreign investors are building new factories to higher standards and using more environmentally friendly manufacturing processes
Crystal Tai
From Tan Chau “royal silk”, used to weave traditional ao dai dresses, to bamboo fibres fashioned into lacquer housewares and more recently T-shirts and linens, to hill-tribe fabrics spun into blankets, cushions and bags by indigenous groups in its mountainous north, Vietnam has a rich history of textile craftsmanship. China is still struggling to build a global fashion brand – not that producing a worldwide label matters. In recent years the county has also become a major player in the global textile industry. In 2016, it was the world’s fifth biggest exporter of textiles and garments, according to Vietnamese media reports. With a workforce of more than 2 million in the textiles industry, and more than 6,000 garment and apparel firms in the nation, textiles was Vietnam’s largest export sector last year, according to the Vietnamese Ministry of Labour and the International Trade Administration. Thanks to the nation’s rising reputation for quality craftsmanship and skilled workers, and the development of government-supported industrial estates offering appealing tax incentives to foreign investors, international garment manufacturers and fashion brands are increasingly looking to Vietnam as Asia’s next hub for apparel production. Garments sector exports are expected to total US$31 billion in 2017, an increase of 10.23 per cent year on year, according to the Vietnam Textile and Apparel Association, continuing a trend of double-digit year-on-year growth. From Made in China to Created in China: how nation turned itself from world’s sweatshop to global innovator in just one decade. But for an industry notorious for its carbon emissions, production of industrial waste, and an unpleasant sweatshop image, the sector is seeing major growth at a time when corporate social responsibility is also of increasing major importance. The question for Vietnam is whether it can develop its textiles industry in a sustainable, eco-friendly way. Earlier this year, hundreds of residents of Hai Duong, an industrial city near the capital, Hanoi, staged a five-month-long protest at the Pacific Crystal Textiles mill, a joint venture between Hong Kong-based apparel makers Pacific Textiles and Crystal Group. The residents complained of foul smells and accused the factory, which counts Japanese clothing giant Uniqlo among its clients, of polluting local waters with effluent discharges. They demanded that the firm adopt more environmentally friendly standards. The government has implemented stricter environmental protection laws, and levied stiffer fines – some of up to US$88,000 – on polluters for breaching them. Apparel makers themselves have also taken steps to clean up the industry, believing Vietnam has the potential to lead the way to greener practises in Asia. “After the [Savar building factory fire and collapse] in Bangladesh a few years ago, I wanted to show the world how a perfect factory looks,” says Thomas Hebestreit, CEO of Royal Spirits Group, a Hong Kong-based apparel maker and parent company of Deutsche Bekleidungs Werke (DBW), a newly opened factory in southern Vietnam. “The garment industry is famous for its sweatshops. We wanted to show the outside world that it’s possible to do garment manufacturing for people still under the best conditions.” DBW is, according to Hebestreit, one of the rare factories providing air conditioning throughout its premises. The 18,000 square metre facility opened in November this year and is equipped with solar panels to provide up to 20 per cent of the energy required for operations during the droughts experienced in the dry season. The building is certified under the internationally recognised LEED and Lotus standards. Hebestreit says he hopes the factory will be recognised for its eco-friendly and sustainable operations. The lack of clean water supplies in Vietnam, and the production of waste water, are a major environmental concern. Cutting back on water usage during the production cycle is a priority for the industry. Recycling the water used to wash fabrics is one way factories try to be more eco-friendly, said Vincent Cheng, director of JG Consulting, a management consulting company that works with apparel firms on improving production efficiency and quality. “There’s a process where they can reuse the water [used to wash the textiles] for something like washrooms … There’s also something called ozone wash where, instead of using chemicals to strip the colour from textiles, they use ozone [a gas which requires less water],” he says. Phong Phu Joint Stock Company is one Vietnamese garment maker that employs this method. Maxport, a well-known manufacturer for Patagonia, Nike, Arc’teryx and Lululemon, is another facility that has incorporated sustainable practices into its factory in Vietnam. “From the start of building their infrastructure they built eco-friendly features into the building itself. Some of the buildings don’t rely on air conditioning, they plant trees around the factory so when the wind blows it creates a cooling effect from the trees,” says Cheng. The factory is built on an elevation, which helps the process. Ultimately, foreign garment makers who are new to the nation have an easier time implementing eco-friendly and sustainable processes in their factories because they come onto the scene knowing what their clients want. “In Vietnam, foreign investors have a chance to start things over again. And they have these [environmentally minded] outdoor apparel customers, so when they go to Vietnam they already have this mindset [to be eco-conscious],” says Cheng. “[But] a lot of the times it’s not you say and they do,” he cautions. “The management and clients need to have that commitment.” This article appeared in the South China Morning Post print edition as: Sustainability the big test for rising textile maker Vietnam
Source: South China Morning PosT
The government's recent move to reopen 13 closed state-owned textile mills under public private partnership (PPP) sounds good. However, the decision triggers some concern about the way things are going to be handled in a new set-up. Its would-be operating modality remains yet largely unknown. The mills currently owned by the Bangladesh Textile Mills Corporation (BTMC) are, as reports say, set to go into PPP format following an administrative order of the government. The 13 textile mills spread out in different parts of the country have reportedly a total of 380.47 acres of land worth approximately Tk 15.92 billion. The mills need an estimated Tk 152 billion in PPP implementation cost to resume their operation. The land of the mills, according to the textile ministry's proposal, will be considered capital of the BTMC in the PPP deal. The selected private parties will have to implement the relevant projects, carry out maintenance, processing and marketing of products, in addition to running the mills. The shares of the BTMC and private parties will be worked out on a ratio-basis or through negotiations. Initially, partnership between the BTMC and the private parties will be for 30 years and the contract could be renewed or a new party reappointed after the expiry of the deal. Now, it remains to be seen whether the aforementioned broad principles on which the PPP is being planned will be able to fix the problems facing the state-owned textile mills not in operation now. The reason why PPP is believed to have fared well in many countries is primarily due to the dual stakes borne by the government and the private sector coupled with the relative ease in accessing finance and other facilitating services. The issue of dual stake and the methodology to work it out on a win-win basis, especially in unforeseen circumstances, are the most crucial part of implementing any PPP project. Bangladesh has been trying to make good use of PPP in the past several years. In August 2010, the government issued the PPP guidelines and in the budget for fiscal year (FY) 2009-10, Tk 25 billion was allocated for the first time. But over the years, there has been no mentionable breakthrough although the allocation was later raised to Tk 30 billion. Lack of preparedness and experience is generally believed to be the main obstacles to the way of making the partnership fruitful. Observers are not sure whether the planned PPP is packaged as a new version of semi-privatisation -- at the expense of the government's stake in it. It is also not clear whether the authorities had explored the potential of private sector partnership, given the huge amount of money required to reinstate the mills to operational stage. There are also issues such as the nature and type of structural improvements required, machinery and equipment to be added, financing needs and ways of meeting them etc. Unless these and other important issues including risks are sorted out with responsibilities and obligations of both parties clearly defined, one can hardly be optimistic about the plan's successful implementation.
Source: The Financial Express Bangladesh
A government decision to raise the minimum monthly wage by 6.5 per cent in 2018, over $30 billion in exports revenue, expansion of investments by Chinese and Taiwanese firms, and India’s Reliance Industries Limited (RIL) deciding to join hands with PetroVietnam to restart the Dinh Vu polyester plant marked the year in Vietnam’s textiles and apparel sector. Dipesh Satapathy reviews the developments. Beginning January, the minimum monthly wage in Vietnam will rise 6.5 percent, or an extra 180,000-230,000 Vietnamese dong ($7.94-$10.14), depending on the region. That brings the total monthly minimum wage to between $136 in the lowest rate region and $175 in the highest wage region. The Vietnam Textile & Apparel Association (VITAS) kept opposing the move, saying several enterprises are struggling with wage hikes in the last decade. Minimum wage in domestic enterprises increased by 21.8 per cent between 2007 and 2017, leading many to reduce workers’ bonuses and use machines instead of labourers, it said. In October, VITAS appealed to the government not to increase import tariffs on polyester fibre from zero to 2 per cent. The request followed feedback from many domestic enterprises that are finding it tough to sustain because of the high cost of importing raw material. The sector attracted more than $750 million in foreign direct investment (FDI) in the first six months of 2017, mostly from investment capital increases in existing projects, despite a reduced number of FDI projects in recent years and the US withdrawal from the Trans-Pacific Partnership (TPP) in January. In the first 11 months this year, the country imported $5 billion worth of materials for use in the textile, garment and footwear sector. VITAS expects the sector will generate more than $30 billion in exports this year, a year-on-year rise of 10.23 per cent. The sector’s exports were worth $28 billion in 2016. The United States, Japan, South Korea, China and the European Union (EU) are the five major destination markets for Vietnamese clothing goods. From January to September this year, the clothing industry grossed $23 billion in export turnover, including yarn exports at $2.6 billion, materials and non-woven fabrics at $1.1 billion and clothes at $19.6 billion.Exports to the US market grew by 6.5 per cent and are expected to reach $13 billion this year. Exports to Europe and Japan have posted slower growth, between 4 and 4.5 per cent. Exports to the South Korean market are expected to hit nearly $2 billion this year. In the first eight months of this year, apparel and textile exports to China rose by 30 per cent to $670 million. Export turnover to the Russian market will likely exceed $200 million this year making it among the top ten export markets.US garment, textile and footwear firms sought investment opportunities in Vietnam after their country withdrew from the TPP, according to American Apparel & Footwear Association (AAFA). The imports of Vietnam’s garment-textile and footwear to the United States grew by 8.74 per cent and 11.83 per cent respectively over the past 12 months and Vietnam was the second biggest exporter to the US market, after China, AAFA said. In the first eight months of this year, textiles and garments exports grew steadily to $19.8 billion, with export value increasing by 9.9 per cent over the value during the same period last year. Vietnam’s cotton imports surged over the past ten years from 150,000 tonnes in 2005 to approximately 1.2 million tonnes in 2016, said VITAS. The country is using purer US cotton more now as its cotton cultivation areas have narrowed down to just 0.04 per cent of the total demand. On September 12, Ho Chi Minh City hosted the Cotton Day 2017 organised by VITAS and the US Cotton Council International. It exposed enterprises to worldwide cotton demand and consumption trends. CCI granted investment licenses to 12 businesses operating in Vietnam using US cotton. Vietnamese producers fulfill a mere 0.04 per cent of the total domestic cotton demand. The country imports cotton, with the United States accounting for over 60 per cent of the imports. AAFA and the American Chamber of Commerce in Vietnam held a series of activities in Ho Chi Minh City, including a workshop on product safety and compliance issues, in late October. The year also witnessed expansion of operations with substantial investments by a few foreign companies. In February, ThreadSol, the pioneer of enterprise material management for sewn products sector, launched its cost-cutting garment solutions IntelloBuy and IntelloCut in Vietnam. Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to expand investment in the country as it established a garment-textile production chain there. The knitwear-manufacturing company operationalised the chain’s last project worth $310 million at Dong Nam (South East) industrial park in Cu Chi district, Ho Chi Minh City, in December. In April, Taiwanese textile major Far Eastern New Century completed its expansion project in Vietnam to manufacture 6,000 tonnes of knitted fabrics per year. Another expansion in its garment unit there saw production expand by a million dozen garments per year. The company has earmarked investments of $760 million in the country, to be spent over three years. US-based biotechnology company Kraig Biocraft Laboratories Inc., a developer of genetically-engineered spider silk-based fibre technologies, received government approval in October to produce high-tech silk in the Quang Nam province. After discussions with PetroVietnam Petrochemical and Textile Fiber JSC, a joint venture of PetroVietnam and Vietnam National Textile and Garment Group, both state-owned, India’s Reliance Industries in September decided to collaborate with PetroVietnam to restart the Dinh Vu polyester plant in Haiphong. Reliance will provide personnel for maintenance, material supply and sales operations. Lack of adequate training for workers and trained engineers remained a major challenge for the sector. Some 300-400 engineers are needed every year by the yarn, fabric and dyeing sectors while universities supply only around 30. The year also saw domestic fashion brands facing increasing pressure from global brands, which spent high amounts in marketing and advertising campaigns.
Source: Fibre2Fashion
ISLAMABAD: The government has disbursed Rs 14 billion among the textile sector against claims for Rs 21 billion through the State Bank of Pakistan under the Prime Minister’s Export Enhancement Package till December 21. The Rs 162 billion Export Enhancement Package was aimed at helping the textile sector to gain competitiveness in the international market in order to enhance the country’s exports, a senior official of Ministry of Commerce and textiles industry told APP here on Wednesday. “The government wants to revive confidence of the textile sector through the package,” he said, adding the package would expand to other industrial sectors, including the pharmaceuticals. “We are committed to providing an enabling business environment to all the industrial sectors,” he added. The government, the official said, had also given procedural and tax relaxations on the import of textile machinery for the modernization of industry and to enhance the capacity of the sector. The official said that through this package cost of doing business would come down in the country. Talking to APP, All Pakistan Textile Mills Association (APTMA) General Secretary Anis-ul-Haq stressed on the need for providing a competitive business environment to the textile sector to enhance exports. He said the government would evolve export-led economy for economic stability and growth.
Source: Business Recorder
Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Chairman Dr Khurram Anwar Khawaja appreciating the move to withdraw duties and taxes on the import of cotton to encourage the value-addition has also demanded the same relaxation for the import of cotton yarn, which is a raw material for value-added knitwear sector. Dr Khurram said that prime minister’s package for exporters was announced on January 10, 2017, wherein textile apparel sector was to be provided a number of facilitations, including withdrawal of customs duty and sales tax on the import of cotton yarn from January 16, 2017, but no such measure was taken so far. PHMA chairman demanded the liberal import policy for raw materials for re-export like duty-free import of fabrics and accessories in the same way as practiced by their competitor Bangladesh. Besides improving the law and order, and providing non-stop gas and electricity supply, the government will also have to relax import policy to empower the value-added knitwear industry to get maximum benefits out of the GSP Plus Status, as the country has no raw material except cotton. PHMA supported the relief package declared for spinning industry particularly easing cost of doing business and relief in power tariff but opposed duty on the import of textile raw materials. He appealed to the government to abolish additional regulatory duty on cotton yarn that should be imported freely from anywhere. He asked the government to take preventive measures, as the export target would not be achieved due to high energy cost and discriminating import duties on industry raw material. The textile has become the most important sector especially after grant of the GSP Plus status by the EU countries but the sharp increase in cotton yarn prices and the artificial shortage had hit the export-oriented value-added garment sector hard.
Source: YarnsandFibers
United Nations sanctions on North Korea’s important textiles industry are expected to disrupt a business largely based in China and pose compliance headaches for clothing retailers around the world. The UN security council imposed a ban on North Korea textile exports and a ceiling on the country’s imports of crude oil on Monday, ratcheting up sanctions that are likely to hit the country’s ordinary citizens. “If the goal of the sanctions is to create difficulties for ordinary workers and their ability to make a livelihood, then a ban on textiles will work,” said Paul Tjia, an outsourcing specialist who regularly visits North Korea. Textiles were North Korea’s second-biggest export after coal and other minerals in 2016, totalling $752 million, according to data from the Korea Trade-Investment Promotion Agency. Nearly 80 percent went to China. Enforcement of the textile ban along North Korea’s 1,400-km (870 mile) border with China – where goods are sometimes smuggled across, often on boats at night – could be challenging, North Korea experts say. “In the past, we have seen shows of quite convincing enforcement in the major centres, such as at Dandong,” said Chris Green, a North Korea expert at Leiden University in the Netherlands, referring to the largest trading hub on the China-North Korea border. “But further upriver, where press intrusion and interest tends not to be there, we haven’t seen the same degree of energetic enforcement.” Despite tightening sanctions, trade in non-banned goods including food and other daily necessities continues between China and North Korea carried by hundreds of trucks crossing back and forth every day. “Enforcement will depend a lot on China,” said Tjia. “So far, a lot of the North Korean textiles trade to Europe and other places goes via China.” “It will be up to Chinese companies that deal in the North Korean textile trade to take action and up to the Chinese government to ensure the Chinese companies are taking action.” On a recent visit to the Chinese border with North Korea, several Chinese traders told Reuters the Chinese government is strictly enforcing U.N. sanctions to the point that some businesses that rely on trade with North Korea have already gone bankrupt or traders have had to start trading in non-sanctioned goods.
MORAL QUESTION
Another challenge is that clothes can be partly made in China and partly in North Korea with a “Made in China” label attached to the finished product. “Even if a label says “Made in China”, some parts of the product are allowed to be made in North Korea and other places,” Tjia said. “For example, the buttons may come from Italy, the cotton may come from Australia or India, the labour may come from North Korea or China, the accessories may come from Bangladesh.” North Korea does not release statistics on the number of people involved in the textiles industry but experts estimate at least 100,000 people are employed at North Korean textiles factories, producing goods both for export and the domestic market. Cheng Xiaohe, a North Korea specialist at Beijing’s Renmin University, estimates the figure may be as high as 200,000 people. A ban on textiles will not only impact factory workers but also their families who are supported by work in textiles factories, said Green. Wages at textiles factories grew tenfold around 2010 when North Korea was experimenting with economic reforms, according to Green, so people suddenly went from earning 30 North Korean won to 300 won. “They were suddenly getting a reasonable wage. Whereas 30 won or being paid in kind wouldn’t get you very far, if you were suddenly being paid 300 won, it would get you something – until of course inflation kicked in.” Textiles factories in North Korea are increasingly “run like private businesses and part of the new, evolving social contract is that people get paid a wage and they can live off that wage, which is new to this generation,” said Andray Abrahamian of Choson Exchange, a Singapore-based NGO that trains North Koreans in business skills. “This year, we’ve entered a realm of sanctions where the effects are really, really going to be felt by ordinary people.”
Source: Westover Review
Bangladesh’s first-ever garment factory, set up inside Narayanganj District Jail to facilitate income for prisoners, is inaugurated by Home Minister Asaduzzaman Khan Kamal. Photo: Sanad Saha/ Star. Bangladesh’s first-ever garment factory, set up inside Narayanganj District Jail to facilitate income for prisoners, was inaugurated this morning. “All prisoners at different prisons of the country are provided with training for their reform and are given all kinds of facilities. Gradually, they will be provided with more facilities,” Home Minister Asaduzzaman Khan Kamal told reporters after inaugurating the factory. The home minister around 11:00am formally inaugurated the Resilience Garments Industry and Jamdani Production Center inside the jail, reports our Narayanganj correspondent. Until November, there were about 2,150 prisoners in the prison and about 300 prisoners will be working the factory now, said Jail Superintendent Subhash Das. According to UNB, some 300-400 prisoners of the jail received training from Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to run the factory in two shifts. Their earnings will be credited to their respective accounts. They can either send the money to their families or withdraw the entire amount after serving their term in the prison, he said. The garment factory was built on 5,000 square feet of area with the help of the district administration and the Department of Social Services. A total of 57 imported machines were installed at the factory, he added.
Source: The Daily Star
The delegation of Uzbekistan during their visit to South Korea held talks with representatives of the Korean Institute of Industrial Technology (KITECH) to create a textile Techno Park in the city of Tashkent. The two sides exchanged views on the state of implementation of the project for the creation of the textile Techno Park. Main objective of the techno park construction is introduction of the brand-new South Korean innovations and conduction of joint research works in the sphere of material science, dyeing and finishing production, fabric design as well as development of alternative energy sources. The project is aimed at development and implementation of international training and research programs as well as exchange of experience to develop textile industry. The parties agreed that the Korean will start supplying technological and laboratory equipment, and the Uzbek will begin customs clearance of the equipment supplied. It is expected that the installation of the equipment will begin in March 2018. Construction and installation work will be completed by mid-2018 and the Techno Park will be commissioned in September 2018. The Korean side noted the importance of selecting engineers and technicians (engineers for dyeing, laboratory, mechanical and sewage equipment, safety equipment, etc.) until mid-February 2018 for training in parallel with the installation of the equipment. Group of buildings with the territory of more than 10,000 square meters is expected to be constructed within the framework of the project. The complex will include experimental-scientific laboratory with the textile machinery, finishing and sewing equipment. Primary contractor of the project is South-Korean IL Kwan E&C Company. Financing of the project will be provided by the grant funds of the official development assistance program of the Korean government. Textile industry of Uzbekistan is considered to be one of the most dynamic and socially important sectors and ranks high among export-oriented industries of the country’s economy. The Uzbek textile industry is mainly focused on cotton, silk and wool. One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber. Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs. Currently, Uzbekistan continues to attract foreign investments for construction of textile enterprises in the country. The establishment of the Techno Park is expected to raise the Uzbek light industry to a qualitatively new level of development and improve the training system for the sector.
Source: YarnsandFibers
