Weekly Forex Report for the period 8th - 12th Jan 2018 https://goo.gl/9VQaTH >>>> Monthly Report December 2017 https://goo.gl/f4qwGC >>>> SRTEPC Awards for Outstanding Export Performance for the year 2016 -17
NEW DELHI: The new industrial policy which seeks to promote emerging sectors will be released within a few months, Commerce and Industry Minister Suresh Prabhu said today. "The new industrial policy should be releasing in next few months," he told reporters here. The proposed policy, the draft of which has been prepared by the ministry, will completely revamp the Industrial Policy of 199. Among other things, it would endeavour to reduce regulations and bring in new industries currently in focus. The Department of Industrial Policy and Promotion (DIPP) in August floated a draft industrial policy with the aim of creating jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion FDI annually. Prabhu also said that today he chaired a meeting of the task force on artificial intelligence. The 18-member task force was constituted to explore possibilities to leverage artificial intelligence (AI) for economic transformation. The ministry said in a statement that after detailed discussions, the members drafted its preliminary recommendations which were discussed at the meeting. On WTO's mini-ministerial meet, to be organised by India, he said it will held in March.
Source: The Economic Times
The Union government has issued a draft notification to allow all businesses to offer fixed-term contracts to workers.This will enable industries to hire workers for short-term assignments and terminate their services once the projects are completed. The Labour and Employment Ministry brought back the proposal, junked earlier last year, after receiving a demand from various quarters of the industry, especially food processing and leather sectors.The government had allowed fixed-term employment only for apparel manufacturing sector so far and had proposed to extend it to footwear, leather, and accessories sector workers in a decision taken by the Union Cabinet recently. The government had said that the move would help "attract large-scale investments at a global scale".Under fixed-term employment, workers are entitled to all statutory benefits available to a permanent worker in the same factory. The benefits include the same working hours, wages, and allowances. However, employers may not give notice to a fixed-term worker on non-renewal or expiry of his or her contract. Additionally, the employers are not mandated to provide retrenchment benefits to workers hired on fixed-term contracts. The move will enable employers to hire workers directly from the market without mediation by a contractor that poses a big hurdle for both industries and employees, a labour ministry official said."A fixed-term employment is a workman who has been engaged on the basis of the contract of employment for a fixed-term," as per the proposed Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, dated January 8. It said that workers hired on fixed-term contract should be eligible for all statutory benefits "proportionately according to the period of service rendered" by the worker." At present, the contract labour has to be hired by contractors and apart from devoid the contract worker from all facilities that a permanent worker enjoys, they are also paid low as contractor charges a fee," said M S Unnikrishnan, Chairman of Confederation of Indian Industry (CII)'s National Committee on Industrial Relations. However, central trade unions said it would oppose the move, as the government did not hold consultations before bringing out the draft rules. "The government cannot have varying definitions of a worker. Moreover, without consultations, the government cannot bring changes to labour law. In fact, every worker should be given a permanent status after two years of continuous employment," said Bharatiya Mazdoor Sangh president Saji Narayanan. However, government officials said that the Industrial Disputes Act 1947 always had allowed provisions for fixed-term employment but it was not "explicitly mentioned" in other rules and regulations definition the working conditions and other employment-related benefits."The measure will have more implications for the export sector rather than domestic manufacturing since continued demand and seasonal spikes in orders ensure that manufacturing continues for 10 months every year on an average," Rahul Mehta, President of Clothing Manufacturers Association of India and Managing Director of Creative Group said. The industry would also be watching the government's decision to extend statutory benefits currently accorded to permanent employees such as similar wages and working hours to fixed-term employees as well. Mehta pointed out certain unique challenges and said providing provident fund benefits to a person hired for a couple of months is not only cumbersome, it may also dissuade employees from taking up a job where his in-hand salary is reduced. The NDA government had mooted allowing fixed-term contracts for employment in April 2015 by issuing draft rules to amend the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2015. However, Bandaru Dattatreya, who was then labour and employment minister, had shelved the proposal last year after strong opposition from trade unions. The previous NDA government in 2003 had allowed hiring fixed-term workers but the United Progressive Alliance (UPA) government in 2007, following pressure from central trade unions, scrapped it.
Source: Business Standard
NEW DELHI— Prime Minister Narendra Modi will interact with leading economists and sectoral experts tomorrow to deliberate on economic policy roadmap for promoting growth and employment. The meeting being organised by government think tank NITI Aayog will be attended by a host of ministers including Finance Minister Arun Jaitley NITI Aayog functionaries and leading economists. “Prime Minister Narendra Modi will interact with leading economists and the experts across sectors from all over the country at NITI Aayog tomorrow ” an official statement said today. The select group of economists and various sector experts have been invited by NITI Aayog for the deliberations with the prime minister on ‘Economic Policy: The Road Ahead’. According to the statement the discussion will focus on six broad themes: Macroeconomic Balances Agriculture and Rural Development Urban Development Infrastructure and Connectivity Employment Manufacturing and Exports and Health and Education. It further said that the emphasis is on sharing the views of the experts from all over the country on the road ahead for the economic policy to steer the nation towards a New India envisioned by the prime minister. The meeting comes in the backdrop of latest estimates of national income by Central Statistics Office (CSO) which showed that India’s growth is expected to slow down to fouryear low of 6.5 per cent this fiscal the lowest under the Modi-led government.
Source : Tecoya Trend
As the deadline for filing first of the comprehensive returns (GSTR-1) is Wednesday, businesses have had a mixed experience with the GST Network (GSTN) portal. Firms and tax practitioners said that while the IT system has definitely improved over the past few months, the system continues to have myriad issues making it cumbersome to file returns for multiple months.
Source : Financial Express
India’s Central Silk Board (CSB), which has allocated 6.3 crore for Odisha in the current fiscal, has sought more proposals from the state government under the central sponsored schemes (CSS) for development of silk industry there. The board has already sanctioned Rs 94 lakh and provided 106 Buniyad machines, according to CSB Chairman KM Hanumantharayappa. The machines have been distributed among women reelers in Fakirpur and Ata areas of Keonjhar district. There is a demand for about another 400 machines which will be provided soon, a report in a top south Indian daily quoted Hanumantharayappa as saying. Though Odisha is predominantly a tasar silk-producing state, emphasis has also been given to increased production of mulberry silk there. Two cluster-based programmes in that regard are being implemented in Ghatgaon block of Keonjhar and Kashipur in Rayagada district, he said. The board has provided Rs 12.3 crore for implementation of the Vanya Cluster Promotion Programme (VCPP) besides Promotion of tasar culture under Tribal Sub Plan (TSP) in Mayurbhanj and Keonjhar districts where around 1,500 farmers have benefited. The beneficiaries have been provided 90 per cent assistance as subsidy. The state produced 125 tonnes of silk, including 115 tonne of tasar silk, last year. Mayurbhanj, Keonjhar and Sundargarh are the major tasar producing districts. About 20,000 tribal families in the state practise sericulture of which, more than 16,000 are tasar farmers.
Source : Fibre2fashion
Businessmen from Gujarat and the South Korean government on Tuesday agreed to promote trade and investment in textiles, chemicals, automobiles, defence and skill development among others. A top Korean official said that the East Asian country is now more open to India and ASEAN to diversify its trade and investment relations. On the other hand, businessmen from Gujarat are looking at trading partners to reduce dependence on China. “We saw lots of cotton fields here. We can cooperate in textiles. It would be better for Korean companies to invest here and form joint ventures with Indian companies,” Soungeun Kim, Consul General of South Korea (Republic of Korea, ROK) told media persons in the city after signing a Memorandum of Understanding (MoU) with the Gujarat Chamber of Commerce and Industry (GCCI) on Tuesday. He sees the MoU as the first step in strengthening ties with businessmen in Gujarat. Local businessmen see potential such as South Korea has developed capacities in manufacturing as well as technology sectors. “Gujarat is emerging as a hub for automobiles. Korean companies can invest in Gujarat. They can also bring their expertise, which would help us train our workforce. Korea is also well developed in the defence sector. Government of India is focusing on developing technologies within India. There is an opportunity for partnership here is as well,” said Shailesh Patwari, president of GCCI.
Local businessmen see potential such as South Korea has developed capacities in manufacturing as well as technology sectors. A top Korean official said the East Asian country is now open to India and ASEAN to diversify its trade.
With bilateral trade between India and Peru touching an all-time high of $1.57 billion, the second round of talks for the trade agreement between the two countries is scheduled to take place in March. India peru relations, india peru bilateral ties, india peru bilateral meeting The FTA between the two countries aims at liberalising norms for trade in goods and services with a view to further boost bilateral economic ties and to expand India’s trade and investment, especially in agri-business and commodities. With bilateral trade between India and Peru touching an all-time high of $1.57 billion, the second round of talks for the trade agreement between the two countries is scheduled to take place in March. The FTA between the two countries aims at liberalising norms for trade in goods and services with a view to further boost bilateral economic ties and to expand India’s trade and investment, especially in agri-business and commodities. Talking to FE, Arup Kumar Saha, head of Chancery, Embassy of India, Peru, said, “Peru could be used by Indian investors as a gateway to the region. With the government of Peru planning to rebuild after last year’s devastating floods, there is a huge opportunity for Indian companies to invest in various sectors, including construction of roads, highways, ports and airports.” The sudden spurt in the trade figures is a result of Peru’s increase in export of commodities including gold, silver and copper, officials told FE. The LatAm nation is the world’s sixth largest producer of gold, second largest of sliver, and third largest of copper, tin, zinc and lead. Peru started exporting gold to India only in 2012, but imports from Lima seem to have increased within short span of time. In fact, to meet the rising demand of gold in India, three Indian investors have decided to invest in gold mines in Peru. As reported earlier by FE, while India is working on a different model for pepping up economic relations with Peru, “The first round of discussions between the two sides had taken place in Lima last year. An FTA between the two countries is not going to happen soon, so the government has decided to work on a new, unique model, wherein the government has agreed to do single undertaking discussions on services investment and goods.” In 2015, Peru became the second largest exporter of table grapes — Red Globe variety — to India, a position it holds even today. These grapes are typically available in Indian supermarkets between December and April every year. Also, Indian importers have shown a growing interest in Peruvian avocados, leading to a steady increase in its consumption since 2016. “Open trade barriers between the two countries provide Peru with a new and significant trade partner, because of which the economy is enjoying a surge,” said a statement issued by the Commercial Office of the Embassy of Peru.
Source : Financial Express
Accompanied by more than 70 industry representatives from sectors such as agriculture, water technology and security, leaders of India and Israel will discuss cooperation in the fields of agro-business, water management and security when they meet in New Delhi next week. Accompanied by more than 70 industry representatives from sectors such as agriculture, water technology and security, leaders of India and Israel will discuss cooperation in the fields of agro-business, water management and security when they meet in New Delhi next week. A visit that comes six months after Prime Minister Narendra Modi’s visit to Israel, Benjamin Netanyahu would be the second Israeli Prime Minister to visit India since diplomatic relations were established between the two countries in 1992 and it comes after 15 years after the first visit by Prime Minister Ariel Sharon in 2003.
Source : Financial Express
To promote apparel cluster and boost exports, Ludhiana-based apparel industry will seek the Centre’s assistance in setting up a Common Facility Centre (CFC). The facility will have state-of-the-art machinery such as a design studio, quality control facility etc., which member units cannot afford to acquire individually. The proposed CFC would be promoted through a special purpose vehicle. SS Bedi, Cluster Development Manager, Ludhiana Apparel Cluster, said, “Ludhiana is one of the prominent hubs for apparel sector in the country. The city has over 12,000 units engaged in knitwear, winter wear and shirts but the cluster doesn’t have any CFC to address the issues confronting the apparel industry. The industry is plagued with issues such as obsolete technology and quality. So, in order to give fillip to this sector we will propose to the Ministry of MSME to grant a CFC.” “Under the Micro and Small Enterprises Cluster Development Programme, the ministry can support the entrepreneurs with a grant ranging between 70-90% of the cost for setting up the CFC,” he added. The CFC will be managed by a special purpose vehicle (SPV). Currently, around 25 members have been identified for the SPV. After the formation of SPV, Bedi said, detailed diagnostic study report (DSR) will be submitted to the ministry for the financial assistance to be sanctioned under the cluster development programme. Most of the manufacturing processes of member units would be done at the cluster. The cluster would take care of manufacturing using latest machines, designing and product testing. Under the scheme, member units would be given an opportunity to move out of the umbrella if they learn the processes and manage to set up the required machinery. Ludhiana-based garment manufacturers are already facing a stiff competition from imported garments, especially from Bangladesh where production cost is much lower. In such a scenario, the setting up of the CFC will assist them in acquiring cost-effective products and new designs of superior quality.
Over 12,000 units in Ludhiana
• There are over 12,000 units engaged in apparel sector in Ludhiana
• The total size of the domestic garment industry is around Rs 25,000-30,000 crore
• Of this, woollen garments constitute 10-15%, with Ludhiana alone contributing 90% of the winter line
• In addition to this, it has also a significant share in garments made from cotton
Source: The Tribune
Sutlej Textiles and Industries is an integrated textile manufacturing company, at the company’s board meeting held on 8 January 2018, the setting up of a green fibre project to manufacture polyester staple fibre by recycling of pet bottles at Samba, Jammu and Kashmir has been considered and approved. Sutlej Textiles and Industries surged 5.28% to Rs 107.60 at 09:45 IST on BSE after the company's board approved setting up of a plant in Jammu and Kashmir. On the BSE, 39,000 shares were traded on the counter so far as against the average daily volumes of 15,000 shares in the past two weeks. The stock had hit a high of Rs 108.80 and a low of Rs 105.10 so far during the day. The stock had hit a record high of Rs 109.55 on 6 November 2017 and a 52-week low of Rs 77.50 on 11 August 2017. The small-cap company has equity capital of Rs 16.38 crore. Face value per share is Re 1. The board, however, deferred brownfield capacity expansion plan of 28,800 spindles at Baddi, Himachal Pradesh, due to the uncertain market conditions in the yarn segment. Sutlej Textiles and Industries' net profit rose 22.2% to Rs 63.42 crore on 7.9% growth in net sales to Rs 603.70 crore in Q2 September 2017 over Q2 September 2016.
Ambara presents two desi labels that blend the traditional with the modern and are deeply rooted in ethics Patchwork, khadi and silk feature in Indigene’s new collection ‘Something old, Something new’ that is all set to be displayed tomorrow at the Ambara store.This is a part of Indigene’s fall-winter collection which covers a spectrum of winter shades from khakis to blue-blacks with a pop of red. “It is called Something old, Something new because we have done some pieces in patchwork to recycle our fabric waste. We also have garments in fresh fabrics. Our look, as always, is casual and easy-to-wear. We like to do etching and texturing, which are elements that highlight this collection,” says Jaya Bhatt, co-founder of the label, with Ruchi Tripathi. “We usually have prints, but this collection is not print-strong,” she adds. The collection is in-line with their practises of sustainability as the garment passes through the hands of various artisan communities. “We also work with women’s groups in Delhi for embroidery and stitching. We work with them at a local set-up, many of the women work from home. We don’t have a factory set-up,” explains Jaya. Keeping in mind that the textile industry is also one of the most polluting, they have been reusing fabrics for the past two seasons. “We would like to keep this going with classic pieces from this collection every year. Our fabrics are all hand-spun or handwoven. We also incorporate some natural dyes.” The pieces themselves are meant to be relaxed and can be multi-purpose or interchangeable. “A shirt can be made into a jacket or a dress. Matched pieces such as a dress and a jacket can be worn individually or paired with other garments. If you are going to spend money on a garment, you may as well buy something that offers the value of many outfits in one.” Ambara will also be hosting another ethically conscious label — Pure Ghee — started by Aditi Prakash in 2010. Inspired by the colours and textiles of India, the accessory brand takes its name from a tin of home-made ghee, gifted to Aditi by a craftsman. Pure Ghee is known for its signature collection of textile bags. “This collection features a mix of weaves. We make sturdy, well-finished textile bags, meant for daily use. The bags last a long time. People generally have this impression that textile bags are decorative. Our focus is to make textile bags which provide the same strength as a leather bag but are light,” explains Aditi. The collection, she explains, is also a blend of functional and evening bags, in winter shades such as indigo, rust red and black. “Through we usually work with bright colours, this collection features earthy tones to match winter colours and with Indigene’s collection. Our evening bags are made with mushroo and Chanderi silks, with 3-D flower embellishments. Another of our signatures are the little charms made by the women groups we support around our studio, again made from waste fabrics,” says Aditi. Pure Ghee’s designs are contemporary with a design aesthetic, that Aditi says, the new generation of working women would be able to appreciate.
Source: The Hindu
As US retail and apparel companies emerge from their worst year since the Great Recession, many will be happy to put 2017 behind as 2018 will be brighter overall, even for department stores, says a new report by Moody's Investors Service. However, more defaults and rating downgrades are expected in the next few months as the number of distressed firms rises. "We expect defaults among speculative-grade retailers to drop sharply to 5 per cent in October from 9 per cent today, but only after peaking at 11 per cent in March," a Moody’s press release quoted vice president Christina Boni as saying.
The US retail and apparel industry chalked up 11 defaults last year, compared with seven in 2009, at the height of the recession. Rating downgrades shot up by 87 per cent last year, while upgrades declined by 43 per cent. Moody's Liquidity Stress Indicator for retailers was up by more than 3 per cent last November from a year earlier, with the rise in the number of distressed companies signalling more defaults ahead. The operating profit margins of companies that have invested heavily in online channels have come under pressure in the past few years. As retailers will continue to be under intense pressure to meet the needs of customers, the critical next step for companies will be to improve the customer-facing aspects of their trade while also reducing costs, the Moody’s report said. (DS)
HOSYcan is said to allow for accurate compression measurements during movement and measures the interaction between different materials. Combined with data from 3D scanning, simulated movement profiles provide increased accuracy for specific applications.
Testing compression garments
Compression garments constitute a high-growth technology in the sport, leisure and medical sectors, performing different functions depending on the application. Compression garments generally come with a defined level of compression. Until now, however, these values were inaccurate when measuring compression levels during movement, the Group reports. What’s more, interaction between different materials has unpredictable effects on compression. With the further development of the HOSYcan, the Hohenstein Group says it is the only provider of a solution with objective measurement values, as well as analysis for compression garment product development. “Compression garments are so challenging that the various influences on the level of compression are often not clearly or precisely measurable,” said Florian Girmond, Hohenstein Group Director Consumer Tests. “HOSYcan lets us simulate movement sequences for the first time. In doing so, the actual pressure on different parts of the body can be determined even in extreme situations.” The device, which can measure circumferences of up to 150 cm, can be individually adjusted and programmed. Body measurements compiled at Hohenstein using cutting-edge 3D scanner technology can be used as a base data set in customising movement profiles.
With HOSYcan, the interaction between individual materials in compression garments can be tested and analysed both in static and dynamic conditions. In this way, HOSYcan delivers important performance data in relation to the desired product properties. The simulation of both dynamic and static testing scenarios, as well as a combination of the two, is achieved without difficulty, allowing testing situations very close to the practical application. The new compression testing device is also said to enable product development to be carried out in an improved, application-specific way in terms of material selection and product design. The modification of individual components can be extensively and individually tested. The whole HOSYcan package can shorten development time with innovative comparison and visualisation techniques, according to the manufacturer.
The database software features a modern user and reporting interface, which provides diverse parameter variations, filter functions and duplicating functions, enabling more efficient order processing. The measurement results are reported in the form of statistics and graphics and then made available to the customer. At the Outdoor Retailer show, which takes place later this month in Denver, CO, interested parties have the chance learn the range of uses and versatile applications of the new HOSYcan device.
Source: Innovations in Textiles
FRANKFURT-- The World's largest international trade fair for home and contract textiles, namely Heimtextil, kicked off Tuesday in Frankfurt. The textile interior design is the focus of international attention at the four-day trade fair, where suppliers present their textile products and material solutions in an exclusive setting, aiming specifically at architects, interior decorators, interior designers, project planners and hoteliers. "With 2,975 exhibitors from 64 countries and regions, Heimtextil is on a growth course for the eighth consecutive year," said Detlef Braun, CEO of Messe Frankfurt. Martin Auerbach, Managing Director of the Association of the German Home Textiles Manufacturers, pointed out that the diversity of home textiles products, designs and colours made the international trade fair platform for home textiles a trailblazing annual event to start the year. Although the economy over the past year was likely to remain below expectations, "the overall mood in the sector is good."He added.
Source : Xinhuanet.com
The official from the Turkish Ministry of Environment and Urbanization said the ministry has already completed a project aimed to integrate Turkey’s legislation into the European Union’s ecolabel legislation. A closing ceremony of the Establishment of the National Environmental Labeling System will be held in the capital Ankara on Jan. 11. During the event, winners for the National Ecolabel Logo Competition will be announced. Eighty-five logos are competing for the prize. At the very first level of its implementation, three products in Turkey—textile, ceramics and paper industry—will get environmental labeling, said the official who spoke on the condition of anonymity due to restrictions on talking to media. Products from seven firms, including two firms in the textile sector, two in the paper sector and three in the ceramic sector, will be ecolabeled. An ecolabel system covers every stage of production, starting from the procurement of the raw material. The system encourages energy efficiency, waste minimization and sustainable production.
Source : Daily News
A government-based firm, Japan External Trade Organization, will be hosting its first Japan Textile Salon in New York city. Around 22 textile exhibitors are chosen to showcase design techniques and the use of various fabrications and materials. Asuka Yatabe, a project coordinator for the Japan External Trade Organization, said that the exhibitors selected are “among the top weavers, design studios and manufacturers. This show is extremely focused.” Yatabe said that JETRO narrowed down its exhibitor list by enlisting the help of the Japan Fashion Week Organization, a major player in the Japanese textile industry. The companies selected for the salon are “highly compatible” with the global market, according to Yatabe. Many of them have already established strong relationships with very well-known design houses based in Europe and through various textile shows we host in partnership with Japan Fashion Week. At the show, it will introduce Japanese color trends for the upcoming spring 2019 season with a focus two themes: Moon Night Diver, a compilation of blues purples and greens that “depict the interplay of light and show;” and Biotech Lab, a “nature-inspired” palette comprised of botanical greens and blue-greens. According to the organization, notable fabrics for display include organic cottons, Coolmax, premium fabrics made by a special circular loom that employs a traditional silk braiding technology, and water-repellent stretch fabrics. And technologies will be on display, such as inkjet printing techniques and traditional Japanese hand-printing methods. Each exhibitor is selected because of his or her contribution to the show’s “uniqueness” regarding novelty in textures, fabric innovation or use of natural materials craftsmanship in printing techniques or technology functionality, or utilitarian fabrics, and ecology, for the use of sustainable materials. Companies exhibiting at the salon include Styletex Co., Numajiri Textile Laboratory, Design House Kaze Corp., Sunwell and StyleM. Yatabe also noted that the Textile Salon “will evoke inspiration and creativity” for fabric buyers pursuing authentic, quality, and unique Japanese fabrics. This is what Japanese novelty fabrics are all about. They are confident buyers will leave their show with many special gems. JETRO will be also hosting a cocktail reception for attendees directly after the event. The event will take place on Jan. 17 and 18, in New York City at The Altman Building. The show aims to increase sales and distribution channels within the U.S. market for each exhibitor.
MULTAN - Pakistan Cotton Ginners Association (PCGA) has rejected the ECC recommendations to withdraw 4pc customs duty and 5pc sales tax on the import of cotton from India and other countries and demanded continuation of tax and duty for the survival of agriculture sector. Addressing a Press Conference PCGA leaders Haji Muhammad Akram(Chairman),Shehzad Ali Khan, Malik Talat Suhail, Amanullah Qureshi,Sheikh Muhammad Saeed, Haji Hafeez Anwar (Former Chairmen),Mian Javed Tariq Vice Chairman, Khalid Hanif Lodhi, Ghulam Mustafa Khandwa, and Ashiq Ali Babar Rehmani said that Pro-APTMA policies of present Government at the cost of agriculture sector were not acceptable to ginners as well as growers and urged upon the Prime Minister Shahid Khaqan Abbasi not to notify the recommendations of Economic Coordination Committee. Haji Muhammad Akram further said that Federal Finance Minister Ishaq Dar admitted that our economy had suffered a loss of Rs500 billion due to less production of cotton which had shattered our economy. More than 1.3 million bales were lying in ginning factories while ten percent more crop was expected from the growers. Under these circumstance, allowing the import of cotton would be tantamount to slaughtering the growers and ginners who heave a sigh of relief after increasing the prices of cotton to reasonable level. The cotton ginning industry has fiercely opposed duty-free import of Indian cotton, saying it will have destructive effects on Pakistan’s economy. They revealed that more than 1.3 million bales of cotton were lying unsold in ginning factories, which textile millers were reluctant to purchase. Another 10 to 15 percent bales are expected next month. They saw no justification for withdrawal of tax and customs duty on cotton import from India at the cost of Pakistan’s farmers, arguing fibre import via land or sea was not in the interest of national economy. If such imports continued without any curbs, he believed, they would harm cotton production in the country in the next season. Last year, cotton harvest had dropped 30% and if appropriate measures were not taken, the situation could deteriorate further and affect local output. He was of the view that the production cost was higher than the prices farmers were receiving for their harvest. The high cost was one of the reasons behind the decline in cotton production, he added.
Source: The Nation
Located in Kitui town is a ginnery that processes cotton from farmers in the county and its environs. Started in 1935 by the Indian family of Zavery, Kitui ginnery is the only major industry in the county. Despite the numerous challenges faced by local cotton industry, Sajaudin Yusufah a manager with the ginnery say the factory has never closed its doors even for a single day. This, explained is due to regular maintenance of the machinery by the company. Kitui is a semi-arid region and only cotton performs well here compared to other food crops, meaning that the ginnery plays a major role in generating income for farmers who have defied the harsh environment to cultivate the crop for the many years. The ginnery is the only one in the country processing cotton using old machinery acquired 83 years ago from the 1840 Ruston & Hornsby (Ruston) Company of England. “We have managed to use the machines all through owing to regular maintenance. We produce fine cotton which we sell to spinners and use the seeds to develop other products like vegetable oil, carbon oil and cotton cake,” said Yusufah at the ginnery head offices in Kitui town. Cotton production started dwindling in 1990s after the liberalisation of the agriculture sector, a move that had been instigated by the introduction of the Structural Adjustment Programme (SAPs) by World Bank and International Monetary Fund (IMF). As other ginneries closed down due to lack of raw materials, Kitui dared the environment and to date is one of the four surviving ginneries, though operating at low capacity. The government through the then Cotton Board of Kenya had established major processing factories in various regions. Some of them which have since stalled are Kibos, Ndere in Siaya County, Homa Bay, Kendu Bay, Samia, Nambale, Malaba-Malakisi, Malindi, Hola and Mpeketoni. Other ginneries had also been established by farmers through co-operative societies and private investors like Kitui Ginnery. Most ginneries collapsed as farmers abandoned the crop due to low prices and gross mismanagement. According to Ministry of Agriculture, the country at one point had 22 ginneries but as at the end of last year, only four were operating, although at far below the installed capacity. For example, Peter King’oo the manager of Makueni Ginnery says his facility has an installed capacity of processing six million kilos of cotton but currently due to low supply only manages between 10 and 25 per cent equivalent to 1.3 million to 1.5 million kilogrammes. “Production has been low for many years as farmers almost abandoned farming cotton. Our highest was only 1984 when we processed four million kilos. But we are hopeful the current interventions by value chain players will help in reducing supply gap,” he said at the ginnery in Makueni. Fibre Crops Directorate interim head Anthony Muriithi said out of 22 ginneries, only four are currently operational, that is, Makueni, Kitui, Meru and Salawa in Rift Valley. However, they are operating at about 15 per cent of their installed capacity. He said the national government is talking with county governments in cotton-growing regions, development partners, research institutes and other value chain players to revive the stalled facilities. He said estimates by the directorate shows that it will cost not less than Sh50 million to rehabilitate one ginnery and fit it with modern systems. Muriithi said the talks involve revival of Mpeketoni, Malindi and Nyanza ginneries in the medium term. The revival of the facilities will be undertaken alongside promotion of production, he added. Meru Ginnery general manager David Kihoro, said the facility has an installed capacity of 20 million kgs but it is only able to utilise about 15 per cent. “Even after installing new processing machinery five years ago, we have not received enough supplies from farmers. However, we are fast-tracking plans to revive co-operative societies as part of boosting production,” he said. In other regions, for example, Nyanza Ginnery in Kisumu County, investors are reaching out to farmers under contract model as part of increasing raw materials. The ginnery was bustling with activity as trucks off-loaded cotton from Bondo, Kendu Bay, and as far as Baringo until 2013. Currently, the owners are trying to revive the facility. Shafiq Zavery, the owner of the ginnery, says three years ago things started going downhill until they were eventually forced to close.
A decline of wheat acres in 2017 caused some producers to grow more cotton, and it appears that trend could continue moving into 2018. The speculative funds are near record longs so far at the beginning of the year, and open interest is at a 9-year high. For the last 10 weeks, cotton has been closing higher. Last week, it bucked the trend, closing lower. This is “a bit concerning” for Craig Van Dyke, risk management with Top Third Ag Marketing, because of the open interest in the market. “I expect cotton to be a pretty fun trade moving at the beginning of the year,” he said on AgDay. Hear his advice for farmers who might not be forward contracting the crop on AgDay above.
Source: Farm Journal Broadcast
Mundotextil, a Portuguese home textiles manufacturer gifted with state-of-the-art production and is a world reference in design, innovation, quality and for fitting into the market trends has launched a range of towels made from cotton, claims uses a fraction of the water and energy comparative to the industry norm. The towel range features Ecotec yarns from the Polaris, Ginevra and Chagall colections. The products are set to be unveiled at Heimtextil, held in Frankfurt between 9 – 12 January. The towel, manufactured using Marchi & Fildi’s Ecotec cotton yarn – a product which the company says can contain up to 80 per cent pre-consumer cotton offcuts and clippings – is said to save up to 77.9 per cent of water usage in production, according to a LCA assessment. The Life Cycle Assessment also determined that the production cycle of the towel range could save up to 56.3 per cent of CO2 emissions and 56.6 per cent in the consumption of energy resources. The Ecotec yarns used in the manufacturing – as well as including recycled cotton – are said to adhere to the chemical safety and human health metrics stipulated by ‘Tessile e salute’, a certification promoted by Italy’s Ministry of Health.
The Yarn Expo Spring 2018, the leading trade event in the world's biggest yarn and fibre consuming market is ready to once again to create an effective sales and sourcing platform for the industry where more than 450 exhibitors are expected to take part. The three-day international event in Shanghai will keep on display a full spectrum of quality yarn and fibre products, such as natural and blended yarns, man-made fibres and yarns as well as specialty yarns to accommodate all kinds of sourcing needs. Nearly 400 domestic exhibitors will showcase a wide range of innovative fibres and yarns in Fancy Yarn Zone, Colourful Chemical Fibre Zone, Natural Cotton Zone, Quality Wool Zone and Green Linen Zone. Besides selling and sourcing at the trade fair, the participants can also attend a series of seminars and be a part of the fashion show. Abedin Ahmed Rizvi, manager (sales & marketing) of Indus Dyeing & Manufacturing from Pakistan said that the Yarn Expo offers an effective platform for them to meet their target buyers from around the world. They have met many Chinese and European buyers during the fair last year, and many of them placed orders with them. With Yarn Expo Spring 2018, four other textile trade fairs including Intertextile Shanghai Apparel Fabrics – Spring Edition, Intertextile Shanghai Home Textiles – Spring Edition, PH Value and the China International Fashion Fair (CHIC) will be held concurrently in the same venue. Messe Frankfurt (HK) Ltd, the Sub-Council of Textile Industry, China Cotton Textile Association, China Wool Textile Association, China Chemical Fiber Association, China Bast & Leaf Fibres Textiles Association and China Textile Information Centre are organising the Yarn Expo Spring. Yarn Expo will take place from March 14 to 16th at the National Exhibition and Convention Center, Shanghai.
Albany, NY -- (SBWIRE) -- The need for better and smarter textiles to support the evolving industrial applications will encourage the introduction of enhanced textiles using innovative textile chemicals, finds Transparency Market Research in a new study. From airbags to fire resistant textiles, top players in global textile chemicals market are focusing on enhancing their facilities and investing in research and development to cater to the changing consumer demands. Players such as The Dow Chemical Company, for instance, are launching antimicrobial technology that protects textiles against the growth of harmful bacteria, thus earning new target markets. Looking forward, companies will have to strategize for meaningful mergers and acquisitions to grab better shares in the market. This move will also help them add to their existing portfolio of products and improve their knowledge base.
Demanding End Users Boost Textile Chemicals Market
A TMR analyst says, "Strengthening economies and rising agricultural activities, increasing healthcare infrastructure, expanding clothing industries, growing number of participants in the sporting activities, and other industries that employ skilled human resource are driving the demand for textiles, thereby augmenting the textile chemicals market." The demand for textile chemicals will skyrocket in the coming years due to their ability to enhance the characteristics of textiles by adding strength and versatility as may be demanded by the end user industry. The rise of the packaging industry is also anticipated to boost the global textile chemicals market in the near future.
Environmental Concerns Pose Tough Challenge
The upward climb of this market is being marred by certain restraints such as harmful effects of chemicals on the environment and most importantly to the human health. The unfortunate disposal of water from textile chemical industries into the local water bodies has created not just polluted water bodies but also a tremendous water shortage. Furthermore, the quality of the soil is being degraded by these chemicals, thereby creating a severe impact on the surrounding lives.
Construction Industry Opens Up New Opportunities
Despite the tug of war created by these market drivers and restraints, the global textile chemicals market has a bright future ahead with ample of opportunities. For example, the usage of chemicals to add to the strength of the textiles will make textiles a worthy option to replace conventional construction materials such as wood, concrete, and glass amongst others. The increasing awareness amongst consumers about health is also anticipated to boost the demand for sterilized textiles in the near future. TMR analysts have estimated that the opportunity in the global textile chemicals market will be worth US$ 29.15 bn by 2024 rising from US$ 21.02 bn in 2015. The steady growth of 3.7% in this market from 2016 to 2024 will be attributable to the soaring demand for home furnishings. Geographically, Asia Pacific holds the biggest share in the overall textile chemicals market in terms of volume.
Source: Digital Journal
FRANKFURT: Heimtextil, the largest international trade fair for home and contract textiles, opened on Tuesday in Frankfurt, Germany with more than 200 exhibitors from Pakistan participating in the event. This year’s theme is ‘The Future is Urban’ considering more than half the world’s population is living in cities. The four-day exhibition explains how urban life is likely to impact living and working environments in the future. The exhibition features textile and furniture products made of new designs and materials to maintain quality life in an increasingly complex urban world. Speaking at the inaugural press conference, Messe Frankfurt CEO Detlef Braun said 2,975 exhibitors from 64 countries are taking part in the event, putting Heimtextil on a growth course for the eighth consecutive year. A Pakistani exhibitor and senior vice president of All Pakistan Bedsheet & Upholstery Manufacturers Association Imran Mehmood said the fair remains important from various perspectives, including reviving the country’s textile exports, which remain the single largest earner of foreign exchange despite recent setbacks. “Secondly, the country is allowed to make textile exports at concessional import duties to the European Union under the GSP Plus scheme provided by the 27-national bloc. To take advantage from it, we must understand the emerging market dynamics which is possible at Heimtextil,” Mehmood said. In total, around 800 Pakistani exhibitors and delegates, including 100 students from various universities, are visiting the four-day exhibition (January 9-12, 2018). “Pakistan is the fourth largest textile exporting county in the world and the exhibition helps us look at what our competitors including China, India and Bangladesh are presenting to the world,” another exhibitor added. Trade Development Authority of Pakistan (TDAP) – an institution responsible for increasing the country’s exports – has facilitated around 55 exhibitors at the fair. It is the largest participation in any exhibition from Pakistan. Pakistani companies are located in four levels of Hall 10 with premium exhibitors such as Gul Ahmed, Kamal Textile and Al-Karam Textile located in hall 10.2.
GSP Plus status
Despite GSP Plus status since 2014, Pakistan has been unable to improve its penetration into the European market while other competitors increased their share in EU trade. For instance, Bangladesh’s exports to the EU have risen by 200% from $7.65 billion in 2006 to $22.87 billion in 2016. The GSP Plus status allows 70% of Pakistan’s exports on to enter EU market at preferential rates while 20% are at zero tariffs. Total imports of the EU bloc in 2016 were around $5.22 trillion. Of this, Pakistani exports to the EU were $6.92 billion. Clothing and textiles exports amounted to more than 78% of total exports to the EU. India and Vietnam have been able to increase their exports to the bloc the most. Vietnam has increased its exports by more than six times since 2003, and India by almost 2.4 times. Pakistan, on the other hand, has not been able to achieve similar growth numbers.
Source : Tribune