Finance Minister Arun Jaitley today assured that the positive impact of the economic measures being taken by the government would be seen in medium to long term. The minister, in a debate ‘short-term discussion on the state of economy’ in the Rajya Sabha, said the coming generations will remember this government for creating a ‘new economic history’ of the country. Members of Opposition parties, especially those from the Congress, attacked the government, saying unemployment is growing and all key economic parameters have witnessed a decline in the last three-and-a-half years. Countering the charges, the senior minister mentioned containing of inflation, recapitalisation of public sector banks and GST rollout as major policy initiatives of the Narendra Modi-led government. “All the steps we have taken, we have also paid price in the short term. But I want to tell you that in the medium and long term, these steps would be seen on the economy of the country and coming generations will remember that due to these steps a new economic history of the country has been written,” Jaitley said. On concerns being raised over GDP growth decline post- noteban, the minister said although the country’s economy grew at a rate of 7-8 per cent, people aspire for more. “The beauty of this country is and I consider it as a strength of this country is that at even a good 7-8 per cent growth rate, India is not a satisfied nation. We are not satisfied even if we are highest in the world, we aspire for more. That’s an aspirational India, it is a good sign,” Jaitley said. He further said that India is the only economy which could maintain a growth rate of 7-8 per cent in these challenging times. On steps being taken towards improving health of PSU lenders, Jaitley said the government is trying to revive the public sector banks by all means. “This bail-out which we are doing is not a very ideal situation but because public sector banks are property of the government, it is our legal as well as moral responsibility to keep them alive,” he said. So, the government is undertaking such a huge recapitalisation plan of over Rs 2.12 lakh crore, the finance minister added. “The idea is to keep the public sector banks alive so that the banks’ ability to support growth is not weakened,” Jaitley said. He further said the “reckless lending which happened” did not take care of risk management and adversely impacted the banks’ capability to support growth as well as impacted private investment. Rebutting Opposition’s charge that the Goods and Services Tax (GST) hit small-scale industries, Jaitley said the 1 per cent tax levied on businesses with Rs 1 crore turnover was the least across the world. Under the GST composition scheme, traders and manufacturers with a turnover of up to Rs 1.5 crore can pay tax at a nominal rate of 1 per cent. The turnover threshold was earlier Rs 1 crore which was in November hiked to Rs 1.5 crore. Around 16 lakh industries have registered under the composition scheme and paid Rs 250 crore in taxes, he added. On the infrastructure segment, Jaitley said the situation was so bad in the previous government that despite being a booming sector, there were no takers for tenders at that time. “Today 255 highways are under construction…around Rs 27,000-28,000 crore is going every year into the rural roads,” he said. Attacking the UPA government, Jaitley said: “You just remember the situation in which you have left the economy. You are talking about the new series of GDP. The new series of GDP was not implemented from 2014-15 but it’s from 2011-12.” He said the institution that measures GDP like CSO is part of the government but the political establishment maintains an arm’s length distance from such offices. Earlier, Deputy Leader of Opposition in the Rajya Sabha Anand Sharma asked Jaitley to release the GDP numbers of the last 10 years as per the old as well as the new series, to provide a comparison on the performance of the country’s economy during the tenure of both NDA as well as the UPA regimes. “In the last three-and-a-half years, we have seen a regular decline when it comes to all the parameters of the Indian economy. There is not even one engine of growth which is actually running,” Sharma added. He said the average growth of the GDP in the Congress-led UPA’s tenure was 7.8 per cent and the job creation was the highest in the manufacturing sector. “Today it is a very dismal situation… The average annual growth rate of the Indian exports was 17-20 per cent. Even if we take 17 per cent, it should be $480-500 billion. You cannot attribute the fall (in exports) to the global situation because trade has grown globally,” he said. The senior Congress leader also alleged that this government is not telling the country whether the four broad objectives of the government behind demonetisation were achieved or not, and how much black money was deposited in the banks. He claimed that world over, India has earned a bad name. Sharma claimed that things are going to be “very difficult” and there is bad news on the fiscal deficit and the current account deficit fronts. He alleged that the present scenario was such that the government’s critics were silenced whereas sycophants were rewarded, a claim which was protested by the Treasury benches. Referring to the government’s disinvestment plans, he called it a “grand clearance sale”. BJP’s Bhupender Yadav, Samajwadi Party’s Ram Gopal Yadav, TMC’s Sukhendu Sekhar Roy, BJD’s Anubhav Mohanty, JDU’s Harivansh, CPI-M’s TK Rangarajan also participated in the debate. Others who spoke were A Navaneethakrishnan of AIADMK, Veer Singh of BSP, Praful Patel of the NCP, Anil Desai of Shiv Sena, V Vijayasai Reddy of YSR Congress Party and Shadi Lal Batra of the Congress. D Raja of CPI said that agriculture is in deep crisis and farmers are committing suicide. “You are talking about doubling the farmers income an don the other side not increasing MSP to farmers,” he said. MV Rajeev Gowda of the Congress said the rate of employment generation has slowed down and industries such as textiles and leather, which provides good number of jobs have been impacted by demonetisation and GST roll out. Cattle slaughter rules have also devastated the leather industry, he added. Rajeev Shukla also participated in the debate.
Source: Financial Express
With the heads of 10 Asean countries participating in India’s Republic Day celebrations as chief guests later this month, Commerce Ministry officials fear more political pressure from the bloc on India to remove all import tariffs as part of the Regional Comprehensive Economic Partnership (RCEP) pact being negotiated. New Delhi has been asked to submit an improved set of offers in January on market access for the other 15 countries in the RCEP: the 10 Asean nations, China, Japan, South Korea, Australia and New Zealand, However, India is undecided about how much it can expose its industry to competition. “It is highly probable that the Asean countries will use the visit to gain some political mileage and push India towards steeper commitments on dismantling tariffs. To what extent India gives in to the pressure remains to be seen,” an official said. The RCEP aims to be the largest free-trade bloc in the world, covering about 3.5 billion people and 30 per cent of the world’s gross domestic product.
Earlier offer rejected
While India improved upon its initial offers late last year, this was rejected by other RCEP members as they felt it was only a marginal improvement. India’s offers range between an average of 70 per cent and 80 per cent, with the maximum elimination commitment for Asean countries. “The 10-member group is aggressively pursuing its agenda of creating a duty-free enclave. The pressure on India to agree to eliminating tariffs on more than 90 per cent of items is huge,” the official said. Indian industry is against such huge tariff cuts, especially for China and also for countries with which there are no existing free-trade agreements, including Australia and New Zealand. Even for Japan and South Korea, Indian industry is not keen on high market opening commitments as only a small number of obligations under the existing FTAs with these nations have been implemented.
Some room for Asean
“India at present has some space to improve offers only for the Asean countries. It is imperative to be allowed enough deviations to protect industry against other members, especially China,” the official said. The next round of RCEP negotiations will be held in February in Indonesia when the revised offers will be discussed and members will be under more pressure for further improvement. This will be followed by meetings of trade ministers from all the member countries to try and conclude the negotiations so that the pact can be signed in 2018.
Source: Financial Express
South Korea wants elimination of import tariffs on a larger number of items it trades with India as part of the upgrading process of the comprehensive economic partnership agreement (CEPA) between the two. India, however, is not too keen to take on substantial increase in commitments as the pact has not benefited the Indian industry much. “At a recent meeting for upgrading of CEPA in New Delhi, both sides discussed the items where they want the other side to lower duties. South Korea is more interested on the upgradation. India, on the other hand, would prefer to take on greater commitments as part of the Regional Comprehensive Economic Partnership being negotiated between 16 countries including the ASEAN, where both the countries are members,” a government official told BusinessLine. It might be that the South Koreans are unsure about when the RCEP would finally be signed and implemented. They think that getting larger market access in India through a bilateral treaty is a safer bet,” the official added. The items where South Korea wants India to lower or eliminate duties including a variety of chemicals, steel products, beauty products, agriculture products and consumer durables. India is interested in sectors such as IT, education, agricultural products and health care.
Industry pressure
India is a wary about opening its markets further under the CEPA with South Korea, which was implemented in 2010, as the Indian industry has been at the receiving end of the pact over the last few years. In 2015-16, South Korea’s imports from India dropped sharply by 23.5 per cent to $3.4 billion, which was lower than the level of exports in 2012-13. While India’s exports to the country recovered in 2016-17, at $4.24 billion it is at the same level as in 2012-13. “Since New Delhi is already negotiating an ambitious trade pact with RCEP members, which includes South Korea, it does not see much point in giving more market access to the country bilaterally. It will probably agree to very low level of upgrade,” the official said. Interestingly, because of South Korea’s push, four rounds of meeting for CEPA upgrading have already taken place over the last four months. Under the India-South Korea CEPA, Korea will phase out or reduce tariffs on 90 per cent of Indian exports while India would phase out or cut tariffs on 85 per cent of Korean exports.
Source: Business Line
Pink bollworm
Hyderabad, January 4: The National Seed Association of India, which represents the majority of the cotton seed companies in the country, has blamed Mahyco Monsanto and Monsanto India for widespread resistance developed by pink bollworm to Bollgard-II, the second-generation genetically modified cotton seed technology. The association has threatened to stop selling the seeds developed with BG-II technology if the two Monsanto firms do not vouch for the efficacy of the second gene (which gave in to pink bollworm). It asks the firms to own up to the failure and compensate farmers. The association wrote a separate letter to the Agriculture Ministry disowning any responsibility for the efficacy of the trait (the second gene) that was meant to tackle the pink bollworm. “It (the company) collects the trait value from the farmers through us. It is their responsibility,” it said. Pink bollworm, which showed signs of resistance to technology, turned virulent this kharif, causing extensive damage to cotton crop in several States. The incidence was so high that the Telangana government asked farmers to remove the plants after the second pick (of cotton bolls) so that the fields would be free of pink bollworm for the next season. “You went on to promote the usage of hybrids with the two gene trait (Bollgard-II) even after CICR confirmed incidence of resistance,” Kalyan B Goswami, Director-General of NSAI, said in the letter. NSAI members wanted to go back to the single gene (Cry1Ac) GM seed (which entails no royalty fee) that can take care of other bollworms like American and spotted bollworms. MMBL response. MMBL, which licences Monsanto’s GM cotton technologies to seed firms in India, denied the allegation that it had not addressed the resistance. “We had, as early as in September 2015, informed the Genetic Engineering Appraisal Committee (GEAC) of the high level of tolerance to Cry2Ab protein,” an MMBL spokesperson said. The firm blamed non-adherence to recommendations on Insect Resistance Management (IRM) practices for the development of the resistance. “We asked seed companies in February 2016 and in March 2017 to advice farmers about the importance of following the prescribed guidelines,” he said. It is understood that the firm is in the process of giving a point-by-point rebuttal to the issues raised by the NSAI.
Source: Business Line
Vijayawada: Refugee families from Tibet have set up makeshift tents here to sell their woolen wear, which has gained popularity in the city off late. They paid Rs 20,000 tax to the municipal corporation for allowing them to erect temporary stalls beside Dharna Chowk here. Tibetan refugee community sets up stalls in Dharna Chowk that. The Odisha locals pause farming to sell quality woolen wear in the city each year. City’s move to clear their settlement areas for beautification poses a new challenge. The community is to stay in the city until the second week of February to sell their commodities. Their business witnessed 35 per cent fall this season, which raised a concern of finding the suitable place in the coming year to continue their business in the city, as canal bunds are being beautified by removing encroachments on them. Tamding Tsewang, who looks after the group’s activities expressed fear that they might not get the same place next year as the government was making changes in the city post-bifurcation. “Even though we face tough competition from local and non-local business of woolen ware, we have an edge over others because of quality material we get from Punjab and Kashmir apart from fixed prices which are lower compared with others’ bargaining prices,” a stall owner said. The families sought refuge in India post the Chinese aggression a long time ago. Some of them settled in Odisha, where the local government built houses in 1960. A settlement has also been said to be staying in Karnataka. Tamding says they had been farming in Odisha and visit Vijayawada only during off-season for crops. “We learnt to live a dignified life here despite being refugees,” he added. Their visit to Vijayawada for making woolen garments a business started many decades ago. They used to camp at Lenin Centre and Rama Talkies Centre in Gandhinagar. However, since the past three years, they had shifted their temporary camp in the vicinity of Dharna Chowk as local authorities have been on a beautification drive across the city. A group of 50 people landed here this season and erected about 15 stalls displaying colourful woolen garments to attract customers. Though they are poor at Telugu, they successfully accomplish their business targets by employing local salespersons.
Source: The Hans India
Patna, Jan 4 () An apparel and textiles park will be set up on the outskirts of the state capital for which a land tract spread over more than 100 acres has been earmarked, Bihar Deputy Chief Minister Sushil Kumar Modi said here today. Speaking after the inauguration of a three-day fair organized by the Bihar Readymade Garments Association, Sushil Modi said 115 acres of land have been earmarked in Bihta for the proposed park. The park will be set up as part of the state government's policy to promote textiles, leather, Information Technology and food processing, he said. The Deputy CM, who also holds the finance portfolio, said a number of incentives were being offered to those willing to invest in the state which include exemption from land registration and conversion fees and a 10 per cent grant on interest payable on bank loans. "Also on offer are 100 per cent refund on SGST (state goods and services tax), 50 per cent assistance on the amount payable towards EPF and ESI and a skill development subsidy of Rs 20,000 per employee from Bihar", he said. The Deputy CM appealed to readymade garment producers to invest in Bihar, stating that the sector had immense potential for job creation and pointing out that 90 per cent workers employed in the sector at places like Mumbai and Bengaluru hail from the state.
Source: The Times of India
FICCI, rashesh shah, jobs creation, GST, fiscal deficit, Safe work environment and economic growth-oriented job-creating incentives are the need of the hour, says Ficci’s president Rashesh Shah. Safe work environment and economic growth-oriented job-creating incentives are the need of the hour, says Ficci’s president Rashesh Shah. In an interview to FE’s Prasanta Sahu, Shah says that recent law and order problems across the country were partly due to the lack of enough jobs. Edited excerpts:
What does industry want in terms of economic policies, as well as political governance, in the wake of the recent law and order problems?
For any business, the safety of people is very important. All these disruptions could lead to a situation where people feel unsafe. The backdrop for such unrest is the lack of jobs and opportunities to people. So, we have to focus on creating jobs. In the last three years, the macro-economic situation has improved a lot. Jobs will be created when private sector capex comes in, manufacturing sector growth comes back and the services sector grows. For all of this, a safe environment is a must. Sound and appropriate policies will allow people to do business without much red-tape or bureaucracy. On these, I will give full marks to this government. Ficci strongly believes that there should be a political process by which the disgruntled people’s voices are heard and concerns are addressed. Violence begets even more violence.
Why is jobs creation still a challenge in the manufacturing sector?
The biggest problem for jobs creation in the manufacturing sector was over-capacity in India as well as globally. That cycle, hopefully, has come to an end. Global economic growth is back on track and it is expected to be a robust 3% this year. That will spur some activity in capacity utilisation in manufacturing. The government’s steps to promote Startup India, Make-in-India and the goods and services tax (GST) will play a big role in jobs creation. Efficient manufacturing companies will take advantage of these positive changes. Eventually, private capex will pick up in next six to eight months. A big boost to private investments is expected in logistics, automobiles, affordable housing, cement, steel, power/renewable energy, mining, IT and pharma.
When do you see GST converging into three rates and excluded items covered under the new tax ambit?
We expect GST rates to converge into three rates in a year. Similarly, petroleum products are likely to be covered under GST in a year’s time. The anti-profiteering clause seems to have rattled businesses…Anti-profiteering is a short-term measure, which should go away. Ultimately, competition should decide pricing. Due to cut in some tax rates, the GST Council felt that there should not be any immediate profiteering as competition will take some time to stabilise. One can expect a year-and-a-half for this kind of anti-profiteering measure. In the long term, Ficci is very clear that this is not a healthy part of the GST.
Fiscal deficit seems to exceed the target this year. Where do you see it heading next year?
We don’t think that the government will be in a tightening mode right now. They should remain in the loosening mode given that India is in the growth stage, oil prices have gone up and the Reserve Bank of India has not cut interest rates recently. If it means exceeding the fiscal deficit target by 20-30 basis points (from the target of 3.2% of GDP this year), it is not such a big cost. We are recommending a slightly expansionary fiscal policy in order to ensure growth momentum comes back. This is not the time for fiscal consolidation. This is the last full Budget of this government. Do you see it cutting corporate tax rate to 25% from 30% as was promised across all companies?
It should make a beginning by bringing down the tax rate to 28% as the cost may not be much. But it will show that you are going towards the original target of bringing it down to 25%. It’s also important from the point of view of competitiveness of Indian corporates, after the US recently cut its tax rates and other countries are likely to follow suit. Cess on taxes should also go away. Among others, NBFCs should be treated at par with banks on tax treatment of provisioning towards NPAs and TDS etc.
Do you think the upcoming Budget will focus on the rural sector?
I think the rural sector definitely needs a lot more attention. Rural infrastructure and a lot of rural programmes will get a boost.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1369.23 |
USD/Ton |
-0.22% |
1/4/2018 |
|
VSF |
2214.14 |
USD/Ton |
0.35% |
1/4/2018 |
|
ASF |
2321.78 |
USD/Ton |
0% |
1/4/2018 |
|
Polyester POY |
1350.78 |
USD/Ton |
0.92% |
1/4/2018 |
|
Nylon FDY |
3359.66 |
USD/Ton |
0% |
1/4/2018 |
|
40D Spandex |
5689.12 |
USD/Ton |
-1.33% |
1/4/2018 |
|
Polyester DTY |
5812.13 |
USD/Ton |
0% |
1/4/2018 |
|
Nylon POY |
1587.57 |
USD/Ton |
1.23% |
1/4/2018 |
|
Acrylic Top 3D |
3167.46 |
USD/Ton |
-0.72% |
1/4/2018 |
|
Polyester FDY |
2537.04 |
USD/Ton |
0% |
1/4/2018 |
|
Nylon DTY |
1629.86 |
USD/Ton |
0% |
1/4/2018 |
|
Viscose Long Filament |
3628.74 |
USD/Ton |
0% |
1/4/2018 |
|
30S Spun Rayon Yarn |
2883.00 |
USD/Ton |
0% |
1/4/2018 |
|
32S Polyester Yarn |
2075.76 |
USD/Ton |
0.75% |
1/4/2018 |
|
45S T/C Yarn |
2921.44 |
USD/Ton |
0% |
1/4/2018 |
|
40S Rayon Yarn |
3044.45 |
USD/Ton |
0% |
1/4/2018 |
|
T/R Yarn 65/35 32S |
2537.04 |
USD/Ton |
0% |
1/4/2018 |
|
45S Polyester Yarn |
2214.14 |
USD/Ton |
0% |
1/4/2018 |
|
T/C Yarn 65/35 32S |
2460.16 |
USD/Ton |
0% |
1/4/2018 |
|
10S Denim Fabric |
1.43 |
USD/Meter |
0% |
1/4/2018 |
|
32S Twill Fabric |
0.88 |
USD/Meter |
0% |
1/4/2018 |
|
40S Combed Poplin |
1.23 |
USD/Meter |
0% |
1/4/2018 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
1/4/2018 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0% |
1/4/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15376USD dtd. 4/1/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Singapore: India and Thailand may have to give freer rein to the rupee and baht this year to avoid triggering US accusations that they’re manipulating their currencies to support exports.The Reserve Bank of India has already exceeded a key threshold on how much it can intervene to curb the rupee’s gains that the US monitors, according to Nomura Holdings Inc. Policy makers in Thailand have also passed this level with the baht, said Bank of Tokyo-Mitsubishi UFJ Ltd. Should the two countries’ central banks seek to assuage US concerns — and avoid a range of possible penalties — it would likely to lead gains for their currencies, potentially reducing their export competitiveness. For all the efforts of policy makers last year, the baht appreciated almost 10% against the dollar, while the rupee climbed 6.4%.The two nations posted the biggest percentage gains among Asian emerging markets in their foreign-exchange reserves last year, more evidence their central banks are buying dollars to curb currency gains. China, South Korea and Taiwan—which have been previously called out by the US—recorded some of the smallest increases. The threat of US complaints will support more appreciation in Asian currencies in general this year, said Rajeev De Mello, head of Asian fixed income at Schroder Investment Management Ltd in Singapore. There’s been a notable reduction in intervention from the three North Asian central banks, according to Schroder Investment and Australia & New Zealand Banking Group Ltd. “Thailand and India have been two exceptions, which have been actively accumulating reserves to stem appreciation pressure on their currencies,” said Khoon Goh, head of research at ANZ in Singapore. Thailand isn’t one of the top 12 trade partners that the US normally focuses on but could find itself under scrutiny if the net is cast wider, Goh said. The rupee and baht have made strong starts to the year, gaining 0.5% and 0.6% against the dollar , respectively, so far in 2018. While the US hasn’t branded any country a manipulator since 1994, meeting two of the following three criteria will get you on the monitoring list: China and Korea were the only two emerging markets on the list at the last semi-annual report in October, while Taiwan was removed.
India
Nomura said in a 11 December note that the RBI had already passed the 2% of GDP annual intervention threshold. The US’s trade deficit with India was $19.7 billion at the end of October, according to data compiled by the US Census Bureau. A persistent current-account deficit — 1.4% of GDP in the third quarter—would appear to be India’s saving grace. An RBI spokesman didn’t respond to questions on its intervention policy. The monetary authority has consistently said in the past that it intervenes to curb undue volatility. The Treasury noted India’s net foreign-exchange purchases in its October report and said it would be closely monitoring the nation’s currency and macroeconomic policies. “Overall, we expect RBI intervention to be constrained by the US Treasury’s focus,” Craig Chan, the global head of emerging-market FX strategy at Nomura in Singapore, said in the note.
Thailand
Thailand’s trade surplus with the US was at $16.7 billion at the end of October, according to the census bureau data, and its current-account excess has been more than 10% of GDP for the six quarters through September. The nation has passed the 2% intervention threshold and is one of 16 countries cited by the US as running high trade surpluses with it, Bank of Tokyo-Mitsubishi said in a 26 December note. Thailand is more of a contender than India to be added to the monitoring list, said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd in Singapore. “It’s got a very strong current-account surplus this year, but that trend is going to be watched a little longer.” BOT spokeswoman Chantavarn Sucharitakul didn’t respond to an email seeking comment. “The Trump administration will likely continue to try and name and shame countries that run large current-account surpluses and accuse them of currency manipulation,” said Guillermo Felices, London-based portfolio manager at BNP Paribas Asset Management. But it’s unlikely to lead to protectionist measures unless there’s a dramatic rise in the dollar or Trump decides to for domestic political reasons, he said. Bloomberg.
Source: Financial Express
The Turkish garment sector has responded to criticism that it has been illegally employing Syrian refugees, including children, by launching awareness programmes, sharing best practice models and initiating training schemes to reduce the commission of such unethical practices. Most companies have also drawn up specific child labour remediation policies, and human rights activists have noticed a marked improvement in the situation since it was first highlighted two years ago, with brands working in conjunction with manufacturers to ensure an ethical environment for workers. The issue of thousands of Syrians working illegally in the garment sector was first raised when a report issued in January 2016, by the UK’s Business and Human Rights Resource Centre, picked up by the UK’s Independent newspaper, showed that British retailers were sourcing clothes from Turkish factories that employed Syrian children. This was followed by a BBC Panorama programme, aired in October 2016. “The sensational news caused a lot of attention, so all stakeholders related to supply chains started to think about plans to sort out the issue,” says Bulent Alkanli, a member of the board of directors of the Turkish Clothing Manufacturers Association (TCMA), and managing director of Istanbul-based sourcing company, Perseus. According to the TCMA, some 50,000 Syrians are working in the Turkish clothing sector, while the Ethical Trade Initiative (ETI), an alliance of companies, trade unions and voluntary organisations around the globe, working to improve the lives of workers in the consumer goods sector, estimates 150,000-200,000 Syrians are working in the garment, textile, home textiles and leather sectors in Turkey. “There are around one million Syrians of working age in Turkey,” says Alkanli. “Out of this number, only 22,000 have work permits, so the rest are working somewhere.” There are some 3.2 million Syrian refugees in Turkey, according to the UN, but only 25,000 Syrians have applied for work permits, with 22,000 granted. Under Turkish regulations, only 10% of a workforce can be Syrian, refugees must work in the city in which they were initially registered with the government, and the employer must provide a contract. Syrians also need to have a background check by the interior ministry, which takes around six months to complete. “The reasons for Syrians not applying seems to be that it was easier for them to find work on a daily basis under the minimum wage, coupled with the hope that they will go to Europe,” says Alkanli. Since the issue of illegal workers came to the fore, an Ethical Trading Initiative (ETI) has been started, which includes the TCMA, the Istanbul Exporters Association, non-governmental organisations (NGOs), UNICEF (United Nations Children’s Fund) and some 20 brands, including Hennes & Mauritz (H&M), Next, Inditex and Primark. The TCMA represents 400 factories and around 40% of Turkey’s clothing exports. While the TCMA represents ‘tier one’ companies (major manufacturers that supply global retailers), subject to audits by the TCMA, external auditors and global retailers, it is the issue of sub-contracting to ‘tier two’ and ‘tier three’ companies (small and medium sized manufacturers that do not have a global presence or supply directly to major retailers) that needs to be addressed, claims Alkanli. “Through the ETI platform we are trying to create awareness in the industry, as most of the tier one factories are not aware of what is happening in tier two and three factories,” he adds. The current average salary at tier one companies is Turkish Lira TRY400 (US$104) a month, plus transportation, food and taxes, coming to TRY2,200 (US$575). “The unofficial rate is around TRY1,000 (US$260), so over 50% less,” says Alkanli. One working group, in cooperation with Inditex and Next, is giving training on best practice in selected factories. A further working group is aiming to improve purchasing practices. “The platform and industry believe the responsibility of having an ethical environment for refugees and workers in general is not the responsibility only of manufacturers, but shared with the brands,” says Alkanli. The TCMA, in conjunction with the UN, is also establishing its own small clothing factory in Istanbul, to train 2,220 women in clothing manufacture: 75% Syrian and 25% Turkish. “After three months of training, we will find them jobs in one of TCMA’s 400 factories,” says Alkanli. A third report by the Business and Human Rights Council, in October 2017, showed that progress had been made at many factories. “Most of the companies have child labour remediation programmes, and most now provide training in the factories,” says Alkanli. “It is a big improvement since the first report.”
Source: Wtin.
FLORIDA - With one hand, breeder Sebastian Saura holds the head of a sheep and with the other, in a matter of minutes, he shears the animal down to its tender pink skin. It is the first phase of a trip that will take wool from Uruguay -- one of the world's top exporters of the textile fiber -- to Germany for use in the seats of luxury cars. At this farm in central Uruguay, 17 workers spend three days shearing 2,600 sheep. They do it in the southern hemisphere's springtime, before the summer heat sets in. Some of the workers are tasked with going into a pen to grab the animals, which can weigh up to 50 kilos (110 pounds), and then lugging them into a hangar where they are held down to give up their fleece. "There is a real team spirit. We are very well organized because that is the only way to work," said Saura, 22, working alongside his father Roberto, who has been shearing sheep for 36 years. Nestled between Brazil and Argentina, Uruguay boasts a population of 3.5 million and nearly twice as many sheep -- 6.6 million. To sell all that wool, it has to look abroad. Of its annual production of nearly 30 million kilos, only one percent is absorbed by the local market.
Low maritime freight costs are a big help.
"It is more expensive to bring wool from Salto in northern Uruguay than it is to send it to China," said Facundo Ruvira, commercial director of Tops Fray Marcos, the country's biggest plant for washing and combing wool -- a practice abandoned decades ago in Western Europe. Indeed, Uruguay is one of the last countries in the world that exports large amounts of wool that has been washed and combed, unlike Australia and New Zealand, which ship it dirty in its roughest form. In this particular added-value segment, Uruguay is the world's third-largest exporter with a market share of 12 percent, surpassed only by China and the Czech Republic. While the country's thinnest wool, such as merino, goes to the luxury fashion industry, thicker wool from a breed of sheep called corriedale -- the most common kind in Uruguay -- is used in the seats of high-end German cars and in aircraft. Ruvira said his top client for the past 20 or 30 years has been the Austrian group Schoeller, which supplies the auto industry and is very demanding about the wool it buys. At his plant, Ruvira shows how wool is separated into long- and short-strand varieties, washed in cold and then hot water, with soap and then without, before finally being combed and packaged for shipping. The process adds value but also creates jobs for 150 people at the Tops Fray Marcos plant in Libertad, west of the capital Montevideo. The wool then travels by freighter for 25 days before it reaches Germany, where the wool is transformed into carpets or fabric for BMW and Mercedes-Benz cars, said Ruvira.
- Sheep treated well -
In the town of Hard in western Austria, the owner of Schoeller, Kurt Haselwander, praises what he calls the subtlety of Uruguayan wool -- he buys 800 tons of it a year -- and its elasticity and softness. Another thing that makes it stand out in comparison to Australian or New Zealand wool is that sheep are treated better in Uruguay, he says. To wit: sheep in Uruguay, unlike in those other two competitors, are not subjected to a technique called mulesing, in which a piece of skin is sliced from around the anus of a sheep without anesthetic. This is done to produce a scar free of wool, fecal and urine stains and thus prevent what is known as flystrike, when flies lay their eggs on the skin of sheep and these hatch into larvae that feed on the sheep's tissue. Schoeller uses the wool to make sweaters, socks and other garments, as well as upholstery for luxury car seats and the seats in business class on planes because it does not wear down as easily as other kinds of wool, Haselwander said. In cars, wool is used because it is safer -- it does not burn like synthetic materials, said Carlos Piovani, who oversees shearing at the Uruguayan Wool Secretariat. Synthetic materials derived from oil are the big competitors of wool, and the sector has suffered dearly because of it, both here and around the world. "Thirty years ago, we had 20 million sheep," said Piovani. But Uruguay is counting on a recent rise in wool prices and is proud of its higher quality. Uruguay exports wool to the tune of $250-300 million a year, the same as 30 years ago, but with a lot less of the stuff, said Piovani.
Source: Enca.New
Talks are under way between textile firms from China, Turkey and Brazil and the Kenyan Government to roll out investments to set up value addition hubs in the latter’s cotton industry, according to the Kenyan agriculture ministry. Members of the Kenya Chinese Chamber of Commerce are, for instance, expected to set up textile factories to boost value addition. Chamber vice chairman William Zhuo said its members are familiarising themselves with the industry value chain and are building partnerships with other actors such as the learning institutions. Brazil is working on logistics to start producing high-yielding cotton varieties in Kisumu and Homa Bay counties, besides training and initiating classification laboratories, according to interim head of Kenya’s Fibre Crops Directorate Anthony Muriithi. Turkish firm HoneyDeco is also reportedly planning to build factories and introduce high-yielding seed varieties in Kenya. The firm has carried out a test on the new seeds, which have since been presented to the Kenya Plant Health Inspectorate Service for registration, according to a report in an African business daily.
Source: Fibre2fashion
NEW YORK, Jan. 04, 2018 (GLOBE NEWSWIRE) -- According to the new study published by P&S Market Research, the ASEAN & South Asia dyestuff for textile market is forecasted to Reach $1,938.9 Million by 2023. The growth of the ASEAN and South Asia dyestuff for textile market is mainly driven by the tremendously high demand of dyestuff from the home textile and automotive textile industries, in emerging economies. The apparel industry is witnessing tremendous growth in the current scenario, owing to the surge in demand for apparels such as outerwear, jeans, t-shirts, innerwear, shorts, dresses, trousers, children’s wear, and socks, across the world. For instance, as per NDP Group, Inc., in 2016, the apparel sales in the U.S. increased by 19% for men’s, women’s, and children’s apparels. Accordingly, the demand for dyestuff (black color) used in the manufacturing process of these wide range of apparels is also growing. On the basis of type, the ASEAN and South Asia dyestuff for textile market is segmented into reactive dyes, disperse dyes, vat dyes, direct dyes, acid dyes, sulfur dyes, and others. Reactive dyes held the largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both value and volume, in 2016. The main characteristic of reactive dyes is the formation of a covalent bond with cellulose, which is the key component of cotton fibers, making it the most permanent of all dyes. This makes reactive dyes a preferred choice over other dyes in the ASEAN and South Asia dyestuff for textile market.In terms of value, disperse dyes are the fastest growing segment in the ASEAN and South Asia dyestuff for textile market, and are expected to maintain the same trend during the forecast period. This is due to the fact that among all types of dyes, only disperse dyes are effective for “Normal” polyester. India held the largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both revenue and volume, in 2016. There has been a significant growth in the dyestuff industry during the last decade, which has created an export opportunity for India in the ASEAN and South Asia dyestuff for textile market. Due to the enforcement of strict pollution control norms, several units in countries such as the U.S., Germany, France, and the U.K., has resulted in a closure of units, which has given rise to capacity building in India, and has hence, made the country a largest market in dyestuff for textile. Bangladesh held the second largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both revenue and volume, in 2016. Bangladesh is emerging as an exporting nation of textile products. The demand of dyes in the country has increased significantly in recent years. Low-wage labor and easy raw material availability are some of the prime factors driving the country’s dyestuff for textile market. The dyestuff sector is one of the important segments of the chemical industry in Bangladesh. The country imports almost 95.0% of the textile dyestuff, majorly from China, India, Thailand, Taiwan, Korea, Sri Lanka, U.S., Germany, Italy, Spain, Singapore, Switzerland, and Turkey.Some of the key players operating in the ASEAN and South Asia dyestuff for textile industry are Huntsman Corporation; Krishna Dyestuff Company; Monarch Dyestuffs Industries and Exports Ltd.; Sumitomo Chemical Company, Limited; Lanxess AG; E.I. du Pont de Nemours and Company; BASF SE; Atul Ltd.; Hangzhou Sunshine Chemicals Co., Ltd; and Arkema Group.
Source : Global News
Saving South Africa’s textile industry
For decades, the South African textile industry has supported the economies of several cities across the country. Over time, the industry have had to deal with competition, especially from China with it cheap imports and other major brands. Despite government support, the South African textile sector is struggling to recover.
Rwanda coffee production boom
The production of coffee in Rwanda is being improved, thanks to a technology that is allowing generation of 120kg in just 15 minutes. But more needs to be done for their coffee to be able to compete in the international roaster. The Rwanda Farmers Coffee Company believes they can meet these standards despite the challenges. Chancela Gningui and Michael Dibie took a glimpse at this sector.
Source: Africa News
Uzbekistan textile industry exported its products worth $1.1 billion to more than 50 countries in the world 2017 and the share of value-added products exceeded 40 percent. The growth of export indicators was facilitated by the activity of 64 trading houses which were opened in foreign countries,,an Uzbek news agency reported quoting statistics from the Association of Textile and Clothing and Textile Industries Enterprises (Uztekstilprom). One of the effective forms of further development of the textile industry will be the creation of clusters. This model implies the organization of a single production cycle, which includes the cultivation of raw cotton, primary processing and its further processing at ginneries with the release of final products, Uztekstilprom’s representative said. The number of exporting enterprises rose from 293 in early 2017 to 350 by the year end. The country produces around 1.4 million tonnes of cotton fibre annually, of which about 60 per cent is consumed domestically. Thirty four investment projects on modernization of existing and creation of new enterprises with a total export potential of $151.7 million were completed in 2017 in the country’s light industry. Their total value exceeded $356 million. Experts have already created a draft concept of development for the medium-term perspective of cotton textile clusters, taking into account the experience of such facilities in the Navoi region. Around 7,000 industrial enterprises operate in the republic at present. The Uzbek textile industry is mainly focused on cotton, silk and wool. Further development of its textile industry is one of the policy priorities of Uzbekistan. The country grows about 3.5 million tonnes of raw cotton and produces 1.1 million tonnes of cotton fibre annually. The country plans 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. 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.
Source: YarnsandFibers
The International Cotton Advisory Committee, Washington, D.C., announced recently it expects global cotton consumption to increase in the coming year. Recovery continues in cotton production for 2017-2018, according to the ICAC, which projects an 11 percent growth to about 25.4 million tons due to increased area put into production. Production in just the United States for the current season is expected to increase 25 percent to 4.7 million tons. India, according to the report, will remain the world’s largest cotton producer, with 2017-2018 production expected to reach 6.2 million tons. China will come in second, with 5.2 million tons of production. Pakistan is predicted to increase 11.5 percent, to 1.9 million tons, while Turkey is predicted to increase its production 18 percent to 829,000 tons. Other major cotton countries are expected to have positive growth attributed to increased production area and harvested yields. Meanwhile, international cotton prices have moved upward over the last few months that the season has been underway, according to the ICAC. “From the season low of 77 cents per pound at the start of season, prices are at a season high at the end of this calendar year up to 88 cents per pound,” the report stated. “The current season average of 80 cents per pound is lower than the 2016/17 average of 83 cents per pound.” Global consumption, according to the ICAC, is expected to grow with a lower international price from the previous season and the rising price of competing fibers. After stagnating in 2016-2017, global cotton demand is expected to increase 3 percent in 2017-2018 to 25.2 million tons. Chinese mill use is expected to remain stable at 8.1 million tons, while India and Pakistan are expected to increase 3 percent and 4 percent respectively, according to the report. Consumption in Vietnam is expected to grow 12 percent to 1.3 million tons. Moderate growth of 2 to 3 percent is expected for other major consuming countries of Bangladesh, Turkey and the United States, according to the report.
Source: High Plains Journal
Brendan Menapace
Myanmar has proven itself to be a competitor on the global apparel manufacturing stage, performing among nearby hubs such as Vietnam, Cambodia, Bangladesh and China. From April to November 2017, Myanmar's apparel sector exported about $1.5 billion in products to warehouses owned by global brands like Uniqlo and Primark, per the Myanmar Times. As the textile sector grows, officials are looking for ways to improve the quality of products and boost employee wellbeing. One of those initiatives includes increasing the sector's minimum wage. On Dec. 29, Myanmar's Ministry of Labor, Immigration and Population voted to raise the minimum wage by a third to 4,800 Kyat ($3.55) per day, up from the current level of 3,600 Kyat ($2.66). This comes after several rounds of negotiations on the matter that took place last year. Now, the issue is open for public comment and objection for 60 days before taking effect. When it goes into effect, companies with at least 10 workers are obligated to adapt wages accordingly. By increasing minimum wage, albeit to what we in the U.S. would still call a minuscule amount of money, Myanmar's officials hope to have a textile sector worth between $8 billion and $10 billion by 2028. As we reported previously, countries in Southeast Asia have taken some business away from former textile manufacturing giants, such as China and Vietnam. Bangladesh is one of the most noteworthy in the region. According to the Myanmar Times, 500 garment manufacturing companies, both local and international, have opened factories within Myanmar, with most of them in the country's largest city, Yangon (formerly Rangoon), but the industrialized areas are popping up in surrounding cities and regions. For companies who source apparel abroad, this could be a new source of textile products.
Source: Promo Marketing
Egypt’s home textiles exports increased 4.8 percent reaching $664 million in January-November 2017 period against $443 million registered in the same period last year, according to the Egyptian Home Textiles Export Council (HTEC), under the ministry of foreign trade and industry. Turkey was the largest importer of Egyptian textiles, followed by Italy, Saudi Arabia, Tunisia, Germany and Portugal. Meanwhile, exports by Egypt’s Textile Export Council increased by 3 percent between January and October this year, standing at $673 million compared to $651 million during the same period a year before, according to official statistics. Egypt’s home textiles sector has a lot of potential for export to Europe. Egyptian producers have access to many raw materials. Their nearness to Europe is another advantage. Many companies already export in the region. In 2018, around 40 companies, under the aegis of HTEC, will be participating in the Heimtextil International Trade Fair for home textiles, to be held from January 9-18, in Frankfurt, Germany, Egyptian media reports said. The event is the world’s biggest textile exhibition, which makes it a good opportunity to sign new export contracts with companies at the exhibition. HTEC will be located in Hall 8, booth H05. Some Egyptian companies are also going to partake in the Carpet Domotex International exhibition, scheduled for January 13-17, 2018, in another German town of Hanover. In October, Egypt’s Minister of Industry and Foreign Trade, Tarek Kabil, accounced the government would launch a national strategy to develop the handicrafts and cultural industry from 2018 through 2020.
Source: YarnsandFibers
Price rises 11% as agricultural troubles in Pakistan and India contribute to higher demand for U.S. exports. The longest winning streak in two decades propelled cotton to 2017′s biggest increase among crop commodities, and hedge funds are ready for more gains in 2018. Of the nine components tracked by the Bloomberg Agriculture Subindex, only cotton and wheat contracts posted gains last year. The fiber led the way with an 11-percent advance as demand grew for U.S. exports. Prices capped 2017 with 10 straight weekly gains, the best streak since 1998. Cotton was also one of the few crops that hedge funds got more positive on during the course of the year. Money managers held a net-long position, or the difference between bets on a price increase and wagers on a decline, of 102,402 futures and options as of Dec. 26, according to U.S. Commodity Futures Trading Commission data released Friday. That’s up from 76,052 at the end of 2016. Cotton’s stellar performance came as crop woes in Pakistan and India, two of the world’s biggest growers, raised prospects for American shipments. In the 2017-2018 season, commitments for U.S. cotton exports are running 29 percent higher than a year earlier, government data show. The investors also added to their bullish outlook in soybean meal in 2017, the CFTC show. By contrast, the funds lowered their net-long holdings in soybean oil, while turning bearish on coffee, sugar and soybeans during the year. Cotton’s gains are especially notable in a year that was dismal for most other crops amid large global gluts. Combined wagers on benchmark corn, wheat and soybean contracts reached a net-short position of 421,450 contracts as of Dec. 26, the CFTC figures show. That’s the most-bearish ever in data that starts in 2006. While both varieties of winter wheat posted gains in 2017, they were pretty small, coming in at less than 5 percent. The other members of the Bloomberg Agriculture Subindex — corn, soybeans, soybean meal, soybean oil, sugar and coffee — finished the year with losses. The gauge reached a record low in December, data going back to 1991 show.
Source: Providence Journal
The Pakistan prime minister in his meeting with all the textile industry stakeholders in September had very wisely desired the textile ministry and the textile industry to come up with a long-term policy for the revival and growth of the textile industry. All Pakistan Textile Mills Association (Aptma) has urged the government to announce and lay down the implementation mechanism for the agreed long-term policy. Aptma Chairman Aamir Fayyaz stressed that an early announcement of the policy will help reverse trade account deficit and thereby contribute to the country’s progress and prosperity. Fayyaz said that the policy has been devised for the restoration of the international competitiveness of Pakistan’s textiles whereby 1,000 garment and stitching plants are expected to materialize to make the best of the opportunity. The Federal Textile Board, in its follow-up meeting with all stakeholders, had unanimously proposed various initiatives as a long-term policy to be announced at the earliest. It enabled requisite investment to generate exportable surplus and achieve additional $20 billion exports in the shortest timeframe to overcome the menace of growing trade deficit, the biggest economic challenge for the government.
Source: YarnsandFibers
The government will start importing certified seeds from Israel to distribute to local small-scale cotton farmers as part of efforts towards reviving the industry. The high yield seeds are sourced from Hazera Genetics through Amiran Kenya Limited. The country is using KSA 81M and HART 89M commercial varieties available with a potential cotton yield of 2500 hectares under rain fed cottons and 3500- 400kg/ha under irrigations. Fibre Crops Directorate interim head Anthony Muriithi confirmed that only 10.04 per cent of total land, 384,500 hectares is under the cotton crop with only 40,000 farmers farming the crop. Cotton farmers are currently producing about 30,000 bales against 368,000 bales of lint. Production of cotton was at its peak in 1984 when 70, 000 bales of lint were recorded. In 1970s and 1980s when cotton farming was second in the country in terms of employment after public service, Bura used to produce 30 percent of the national production followed by Meru region. “We exported textiles worth over Sh22 billion mainly from EPZ to the USA under the African Growth Opportunity Act in 2016,” he said. farmers will benefit from bulking seed programmes by Kenya Agricultural and Livestock Research Organization, the Kenya Plant Health Inspectorate Services and ginneries. During the last Jamhuri Day celebrations, President Uhuru Kenyatta assured cotton farmers of government support as part of government's big four plan to enhance manufacturing, food security, affordable housing and health care for all. The country has six privately owned operational factories with a capacity utilization of between 17 and 31 per cent with 80 per cent of raw materials used in the facilities sourced from the external markets. The active factories include Rivatex, Thika Cloth Mills, Fine Spinners, Sung Flag, African Cotton, and TSS Cotton Mills. Ginneries currently buy the crop from farmers at Sh46 per kilogramme. He said talks are underway between the national government, county governments and other value chain players to revive Mpeketoni, Malindi and Nyanza ginneries in the medium term. Due to low production, Kenya government imports substantial amounts of cotton lint and seed cake for local textile mills and feed manufacture mainly from Tanzania that produces 15 times and Uganda whose output five times of Kenya’s production respectively every year. The cotton industry collapsed between late 1980s and 90s after the liberalisation of the agriculture sector following introduction of Structural Adjustment Programmes by World Bank and International Monetary Fund, leading to the collapse of most operational ginneries. Currently, there are only five operational ginneries in the country in Makueni, Kitui, Meru, Mpeketoni and Salawa out of an establishment of 22 factories. He said countries including USA, Brazil, India, Turkey and China have expressed interest in investing in the industry. “The renewed interest is due to Kenya's enthusiasm to institute reforms, mobilizing farmers to embrace again the crop to enhance their economic set up,” he said, adding that Brazil has signed an MoU with Kenya and have already identified sites for seed production in Kisumu and Homabay counties.
Source: The Star Kenya
Le Tien Truong, general director of the Vietnam National Garment and Textile Group (Vinatex), speaking at a meeting on reporting Vinatex’s results of production and business in Ha Noi on Tuesday said that to achieve the target of more than 10 percent growth in 2018, the textile and garment industry must make great efforts to focus further on solutions to increase labour productivity also the local textile and garment industry must be careful with the anti-dumping story. In 2018, Vietnam’s textile and garment industry will face more competition, while other textile exporting countries in the world plan to maintain their market shares in the world garment market, as well as expand their market shares further, Truong said. However, Vietnam’s textile and garment industry stands at a good position in the world garment market as the major buyers of the world consider Vietnam as the supply centre and give priority to Viet Nam in supplying garment products to them. Vietnam is the world’s largest producer of men’s and women’s suits. Moreover, Vietnam has had experience in converting from a production method of processing to an FOB (free on board) and ODM (original design manufacturer). Now, the processing has reached only 30-35 percent of production, while FOB has accounted for 55-60 percent and ODM producing textile and garment products, from designing to finished-products, has occupied 10 percent, Truong said. In addition, the industry should continue to invest in technology development to create stability, sustainability and efficiency in development of the textile and garment industry. Last year in 2017, the textile and garment industry gained a year-on-year increase of 10.23 percent in the export value of textile and garments to $31 billion, higher than its target set at the beginning of the year at $30 billion. Major markets of the United States, the European Union, Japan and South Korea maintained good growth, while there were breakthroughs in exports to other markets such as China, Russia and Cambodia, according to Truong. The South Korean market jumped to the fourth position, close to the Japanese market, reaching an export value of $2.7 billion in 2017. Vietnam’s textile and garment exports to China in 2017 reached $3.2 billion, the same as the export value to Japan. Meanwhile, the domestic textile and garment market also gained a year-on-year growth rate of 10 per cent in 2017. The balance in development of the domestic market and the export market has been an important point for the local textile and garment industry to ensure jobs for the employees and to maintain development of the enterprises. During the meeting, Vinatex reported its total revenue in 2017 was estimated to have increased year-on-year at 10.7 percent to VND45.55 trillion ($2.02 billion). Of this, domestic sales reached VND10.39 trillion, accounting for 22.8 percent of the total revenue, 10.6 percent higher than the revenue in 2016.
Source: YarnsandFibers
