India will overtake China to be the fastest-growing large economy in 2018, according to a report by Indian company Sanctum Wealth Management. While low growth and insufficient structural change are visible in the rest of the world, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth, the report says. Indian equity market will jump to become the fifth largest in the world and when developed economies are cheering a 2-3 per cent growth, India is focused on breaching 7.5 per cent, a news agency cited the report as saying. Markets, however, are not likely to gain further if inflation or rates rise. Muted earning could also impact market performance, the report said. The domestic buyer now sets market prices. Domestic mutual funds bought equities worth $15.3 billion against $8 billion by foreign investors in 2017. Aadhaar, Jan Dhan account scheme, demonetisation and the goods and services tax (GST) are working to create a new inclusive infrastructure in India, it added.
Source: Fibre2fashion
A three-day 8th international conference on wild silk was organized by the International Society for Wild Silk Moths, Japan and Central Silk Board, where Union Minister of State for Textiles Ajay Tamta graced the event as the chief guest. The minister while addressing the gathering said that since the North-East is the only region where all four varieties of silk such as muga, eri, tassar and mulberry are found, the ministry has decided to accord top priority to develop the silk sector as a viable option for livelihood in the Northeast. The North-East region makes up about 21% of the country’s total silk production. Assam owns the Geographical Indication (GI) tag for muga, which is known for its golden color and is found only in the Northeast region. Therefore, in this connection, Tamta said that the centre will do everything for improving the silk production in the Northeast region so as to make the sector a sustainable source of livelihood for the people of the northeast region. The main agenda of this conference is to highlight the importance of silk sector in the Northeast. About 15 representatives from different countries participated in this international conference. Also speaking at the event was Ranjit Dutta, Assam’s Hand loom and Textile Minister who said that nearly 3.1 lakh families in Assam are associated with the silk sector. A 60, 000-acre area is involved in silk production and plantations for plants for the silkworms. Anant Kumar Singh, Secretary of the textiles ministry although appreciated Assam for being the third-largest silk producer also encouraged it to harness the potential of wild silk or vanya silk further. He also added that silk production sector can be one of the most effective tools for poverty alleviation in the Northeast region. The centre has over the years sanctioned about 24 projects in silk sector worth Rs. 809 crore for the Northeast.
Source: News Flash
Partnership between India and the members of the Association of Southeast Asian Nations (ASEAN) is crucial for improving the standard of textile manufacturing and generating employment opportunities in both the regions, Indian textiles minister Smriti Irani said recently addressing the ‘India-ASEAN: Weaving Textile Relations’ show in New Delhi. Enterprises from ASEAN nations could take advantage of India as a one-stop sourcing destination for a diverse range of products by setting up manufacturing bases here to cater to the domestic market and exports, said Irani. The show is being organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the ministries of textiles and commerce and industry to celebrate 25 years of India-ASEAN relations, according to a FICCI press release. With a strong multi-fibre base with an abundant supply of raw materials like cotton, wool, silk, jute and man-made fibres, India enjoyed a distinct advantage of backward integration which many countries do not possess, textiles secretary Anant Kumar Singh said. "Though India has the unique advantage of having the presence of the entire textile value chain, its most exported items to ASEAN consisting of cotton fibre, cotton yarn and fabrics have not grown to the desired extent. This makes it evident that we have not been able to explore and leverage the strengths of our textiles industry to the fullest," Singh noted. The minister also released a coffee table book, 'India ASEAN Textiles: Weaving Relationships'.
Source: Fibre2fashion
MUMBAI, Jan 24 (Reuters) - India’s state of Maharashtra, the country’s second-biggest cotton producing state, has cut its forecast for output of the fibre by 37 percent from its September outlook as a pest infestation has reduced yields, a senior government official told Reuters. Maharashtra’s output is now forecast to drop to 6 million bales of 170 kg each for the 2017/18 marketing year that started on Oct. 1, the source said. That is down from 10.7 million bales produced in the 2016/17 marketing year. The forecast is down because of an infestation of the pink bollworm that has cut yields. The drop in the output could lift local prices and reduce the exports from India, the world’s biggest cotton producer, during the 2017/18 marketing year. “As harvesting started, farmers realised the impact of the pink boll worm pest on the crop. Yield were substantially lower than normal,” said the official, who declined to be named as the estimate has not been published. Maharashtra usually accounts for over a quarter of the India’s production, which the government has estimated at 37.7 million bales for the current marketing year. The reduction in Maharashtra’s production will slash the country’s output and keep prices firm in the local market, said Pradip Jain, owner of cotton trader Mahavir Ginning and Pressing. Cotton prices have surged 12 percent in the past eight weeks as spot markets were getting lower-than-normal supplies from the new season crop. India’s cotton exports could fall to 5 million bales, nearly a quarter below earlier estimates, said Atul Ganatra, president of Cotton Association of India. Pink bollworms consume the cotton fibre and seeds inside the boll, or fruit, of the plant and cut the amount of fibre harvested.
Source: Returns
The silence at Jolly Spinning Mills is punctuated by workers’ chatter as they unload bales of cotton from trucks in the courtyard, adding to a giant fluffy white heap. It’s the peak season in Gujarat, India’s largest cotton producer, and unusual for the factory that runs round the clock to be so quiet at noon. The mill now clatters for barely 12 hours a day. Business is not as usual, said Dilipbhai Umaraniya, chairman, Jolly Group of companies at Chotila, 50 kilometres east of Rajkot in Prime Minister Narendra Modi’s home state. “We don’t have enough working capital after the GST was implemented.” India is the world’s second-largest exporter of cotton—raw and textiles. The 12.3-billion industry, like other export-oriented businesses, is yet to recover from disruption caused by the July rollout of a nationwide sales tax. The biggest tax reform yet in Asia’s third-largest economy subsumed a web of levies to make business easier. But it taxes every level of the supply chain to increase compliance. Companies then claim refunds. Workers unload cotton from trucks parked in the courtyard Jolly Spinning Mills at Chotila, 50 kilometres east of Rajkot. (Source: BloombergQuint) Yarn makers pay 5 percent tax while procuring cotton. Earlier, there was no such levy. Other inputs like dyes and chemicals are taxed at 12 percent and 18 percent. They also pay a 5 percent tax at the time of exports. Together, that blocks working capital as refunds take time. Umaraniya says his Rs 8 crore is blocked. Sureshbhai Patel of Rajkot-based Siddhnath Cotex Mill awaits Rs 4 crore. The industry won’t exist for long if this continues, Patel said. “Earlier my turnover was Rs 350 crore. Now it looks like it won’t go above Rs 150 crore because I operate only one shift now.” Invoice-matching is a key aspect of GST compliance. Two separate invoices showing sale and purchase of goods uploaded on the GST Network portal must tally for them to be considered. The government was struggling with this, according to Suresh Rohira, partner at Grant Thornton India. Documents were filed but invoices were not matching, he said. Refund applications were rejected for issues like an ‘s’ missing in ‘yarns’ in two returns that needed to match, he said. Input tax has to be paid in cash and then exporters have to wait to get it back. The government just started granting refunds. It’s going to take some time for it to release them. The textile industry no doubt has taken a beating due to GST - Suresh Rohira, Partner, Grant Thornton India. A conveyor belt carrying raw cotton at Jolly Spinning Mill at Chotila, 50 kilometres east of Rajkot. (Source: Bloomberg Quint) The government recently allowed exporters to ship products without paying the Integrated GST after submitting a letter of undertaking in lieu of a bond or a guarantee. “Hopefully, that will help us get refunds quickly,” said Vijay Mehta, a manager at Siddhnath Cotex Mill. The GST also increased paperwork. Businesses have to file three monthly returns—on sales, purchases and a summary of accounts. Accounting work has doubled, said Mehta. “The paperwork needs to be reduced. There are not many educated people in the industry.” Emailed queries to DS Malik, spokesman for the Finance Ministry, on delayed refunds and compliance remained unanswered. November to April is the peak season for ginning, or separating cotton fibre from the seed, as the kharif crop arrives from the fields. The output this year is expected to stay around last time’s 350 lakh bales of 170 kilograms each. And there is demand overseas. “But we need to have capacity to export so much,” said Umaraniya. With mills running for only 12 hours a day, capacity utilisation has also fallen by half. Mill owners are even sceptical about applying for new loans. Banks are wary of lending more as bad loans are rising, said Umaraniya. “If we don’t have the money, how will we work? The problem is huge.” Patel said a fourth of his loans could sour as he wouldn’t be able to repay on time if the situation doesn’t improve. Jolly Spinning Mill in Chotila, 50 kilometres east of Rajkot, Gujarat.
Lower Wages For Workers
The textile industry is among the largest job creators in India. But workers at spinning mills are not earning enough during the peak season—the best time of the year for them. Gabru Ganghad, 30, a labourer employed at Siddhnath Cotex Mill, says since the factory runs for half the time and fewer trucks of cotton arrive at the mill, his daily wages have fallen from Rs 200 to Rs 150. That’s not all. Ganghad gets work on 15 days compared to the whole month earlier. “The money is barely enough to buy food.” The mill laid off half the labourers as it struggles with a cash crunch. “I had no other option,” said Patel. Parab Jhokra, 22, who also works at Patel’s factory, said he has to support a family of eight. “It’s difficult to survive like this.”
Source : Bloomberg Quint
India’s Telangana state has requested the central government to set up a mega power loom cluster in Sircilla as part of the Comprehensive Power Loom Cluster Development Scheme. In a letter to textiles minister Smriti Irani, state handlooms minister KT Rama Rao said 36,000 powerlooms in Sircilla are not being upgraded and the power consumption is increasing. Workers have to rely on traders for raw materials because of lack of investment and shortage of skilled workers and infrastructure is troubling Sircilla, media reports in Telangana reported citing the letter. Rama Rao said there had been a substantial improvement in the powerloom sector in two other states after clusters were set up.
Source: Fibre2Fashion
The Future Group has been exploring opportunities to invest on a facility for readymade garments in Telangana. “We are looking at how can we get into garmenting facilities here in Telangana,” Future Group CEO Biyani said. The Group, whose core activity is retail, is in talks with the State government. It is, however, early to discuss the investment and other details of the project, sources in the company added. Mr. Biyani was interacting with the presspersons at the launch of Golden Harvest Sona Masoori rice by Group’s FMCG firm Future Consumer Ltd. On the occasion, a television commercial for the new product made by actor Rana Daggubati was unveiled. The FMCG firm already has a host of other products under the ₹1,200-crore Golden Harvest brand, a list that comprises staples, spices, and dry fruits. The Sona Masoori rice, its new addition, is available in six variants and expected to generate ₹250 crore revenue in the next fiscal. While the rice would be marketed under the Golden Harvest in south India, the company intends to take the same under Shubhra brand to the rest of the country, especially the parts where Basmati rice is preferred.
To queries on the Group revenues, he said it would be around ₹30,000 crore this fiscal and expected to grow to ₹40,000 crore the next financial year. By 2021, the Group is eying revenues of ₹1 lakh crore. Hyderabad, he said, was expected to remain a major market for Future Group, already contributing to ₹2,500-crore revenues. It is expected to increase to ₹4,000 crore in 2018-19. On his experience as an ad maker, Mr. Daggubati said, “The TVC will always be special because it brought me back into telling short form content... any story on food and family is always fun to tell.”
Source: The Hindu
Online shopping is a new mode of shopping for most of the customers Fynd is your central online shopping destination for fashion, offering cothing for men, women and kids, wallets, hand bags and other accessories. Fynd's co-founder, Harsh Shah, speaks with Fibre2Fashion on customer's preference that has evolved in recent years with respect to online shopping.
How was the festive sale in 2017 in comparison to that in 2015-16?
2016 festive sale for us was just after we had launched our services pan India. We though had a very good customer attraction especially from the perspective that we are new in the field, but then in 2017, we had already established ourselves strongly as a one-stop shop for fresh fashion. This definitely helped us gain a lot of customer attraction and repeat purchases during the festive season of 2017. Major festive seasons brands like Manyavar, JadeBlue, Global Desi etc. had shown a keen interest in this festive season sale and performed really well during the period.
Which category in apparel - menswear, womenswear, kidswear generated maximum revenues?
We currently do not offer kidswear on our platform however we are expecting to launch the same by the end of Q1 2018. When comparing menswear and womenswear, menswear has a slight edge in terms of revenues. The distribution is 60-40 with menswear contributing to 60 per cent of the revenues currently. Apart from clothing, which product categories are picking up for festive buys - home textile, footwear, accessories like bags? Winter festive seasons has always seen a surge in footwear demand and the same is happening in the current season as well. One can easily see a trend towards footwear, especially shoes while looking at the intentional behaviour of a customer on his app/website. Apart from this, wearables is the next biggest trending thing. These are trendy as well as helps a customer keep themselves fit. A lot of people in India have started adapting to wearing fitness watches on a day to day basis.
How have consumer preferences evolved in the last two years with respect to online shopping? Online shopping is a new mode of shopping for most of the customers. With an expanding internet base of the country, there are a large number of users who are shopping on online websites for the first time in their life. Initially (3-4 years back), it was a matter of concern for customers as they were not sure of the service or even the fact that whether the product will be delivered to their home or not. But now, one can see a sense of trust getting established in the online e-commerce websites so much so that now a person is comfortable buying even ₹40,000 phone or ₹65,000 television via e-commerce websites.
Which were the top 3 regions that generated the maximum revenues during the sale?
Metros definitely have an edge when it comes to sales. This is also because a lot of initial effort has gone into establishing a customer base in the metro cities. Currently, the top cities for us are Bengaluru, New Delhi, and Mumbai.
What's your forecast for 2018? Post demonetization, GST, what changes are you expecting in the market?
Both demonetisation and GST implementation are drastic steps towards economy correction with each of them having their own benefits. When it comes do demonetization, it has helped increase customer trust on online payment modes and would definitely help in increased online payments (especially via wallets). GST, on the other hand, is to help the brands majorly. Now no company in the industry has to pay different taxes in different cities or pay inter-state transportation charges etc. A flat tax based structure definitely saves a lot of effort and time which otherwise was required.
What would be your top 3 recommendations to Prime Minister N. Modi and Textile Minister Smriti Irani that could give a boost to the business of fashion?
Smriti Irani: Saree - Rich Indian handloom that has cotton as well as synthetic texture mixed. If it is colour blocked and solids, then it is more appealing and she can carry it well considering her busy schedule as a minister.
Narendra Modi : He can definitely try his hands-on dhoti with bandgala jacket and floral ethnic jacket on a solid kurta set. Something, he should try probably on the flag hosting ceremony on Republic Day.
Source: Fibre2Fashion
The Indian rupee strengthened gaining as much as 23 paise against the US dollar in the early morning trades on Thursday. The domestic currency had been appreciating since last two days following the record-run in Indian equities led by IMF economy forecast. The rupee surged 23 paise to 63.46 apiece US dollar at the interbank foreign exchange market on Thursday. The Reserve Bank of India fixed the reference rate of the rupee at 63.6439 against the US dollar on Wednesday. Earlier yesterday, the rupee finished 9 paise higher at 63.69 per US dollar after jumping 14 paise in the early trades. In a major development on Wednesday, Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment. Of the 21 PSBs, IDBI Bank emerged as the biggest beneficiary as the bank was allocated a whopping Rs 10,610 crore followed by Bank of India (Rs 9,232 crore), SBI (Rs 8,800 crore), UCO Bank (Rs 6,507 crore) and Central Bank of India (Rs 5,158 crore) from the government. Meanwhile, Indian stock markets hovered in red ahead of F&O expiry and Q3 earnings of Maruti Suzuki after opening marginally higher with Sensex and Nifty starting at fresh highs in the morning trade on Thursday. BSE Sensex started the day at 36,208.39 up by 46.75 points while NSE Nifty began at a record high of 11,095.6, up by 9.6 points. Shares of blue-chip companies such as Dr Reddy’s Lab, Maruti Suzuki and UPL will be in close watch ahead of their respective Q3 earnings. Shares of L&T, ICICI Bank, Sun Pharma, NTPC, Tata Motors, Axis Bank emerged as the top gainers on Sensex today. Among the sectoral indices of NSE, seven out of 11 were trading in green with Nifty Metal and Nifty Pharma leading the charge while Nifty PSU Bank and Nifty IT index shed 0.5-2.5%. Shares of the state-run UCO Bank surged over 6% to Rs 33.55 while the stock of Biocon slipped nearly 5% after the drugmaker reported a drop of 46% in the net profit to Rs 92 crore. Other major companies which are also lined up with their respective third-quarter results are Ajanta Pharma, LIC Housing Finance, Future Supply Chain Solutions, Jindal Steel & Power, Nilkamal, Shriram City Union Finance, Tata Coffee, L&T Finance Holdings, and Avenue Supermarts.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1432.68 |
USD/Ton |
0% |
1/24/2018 |
|
VSF |
2279.79 |
USD/Ton |
0.34% |
1/24/2018 |
|
ASF |
2498.40 |
USD/Ton |
0% |
1/24/2018 |
|
Polyester POY |
1382.71 |
USD/Ton |
0% |
1/24/2018 |
|
Nylon FDY |
3435.30 |
USD/Ton |
0.46% |
1/24/2018 |
|
40D Spandex |
5777.55 |
USD/Ton |
0% |
1/24/2018 |
|
Polyester DTY |
5902.47 |
USD/Ton |
0% |
1/24/2018 |
|
Nylon POY |
1627.86 |
USD/Ton |
0% |
1/24/2018 |
|
Acrylic Top 3D |
3232.31 |
USD/Ton |
0% |
1/24/2018 |
|
Polyester FDY |
2732.63 |
USD/Ton |
0% |
1/24/2018 |
|
Nylon DTY |
1686.42 |
USD/Ton |
0% |
1/24/2018 |
|
Viscose Long Filament |
3669.53 |
USD/Ton |
0% |
1/24/2018 |
|
30S Spun Rayon Yarn |
2951.24 |
USD/Ton |
0% |
1/24/2018 |
|
32S Polyester Yarn |
2178.29 |
USD/Ton |
0% |
1/24/2018 |
|
45S T/C Yarn |
2982.47 |
USD/Ton |
0% |
1/24/2018 |
|
40S Rayon Yarn |
2326.64 |
USD/Ton |
0% |
1/24/2018 |
|
T/R Yarn 65/35 32S |
2514.02 |
USD/Ton |
0% |
1/24/2018 |
|
45S Polyester Yarn |
3107.39 |
USD/Ton |
0% |
1/24/2018 |
|
T/C Yarn 65/35 32S |
2592.09 |
USD/Ton |
0% |
1/24/2018 |
|
10S Denim Fabric |
1.46 |
USD/Meter |
0% |
1/24/2018 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0% |
1/24/2018 |
|
40S Combed Poplin |
1.25 |
USD/Meter |
0% |
1/24/2018 |
|
30S Rayon Fabric |
0.69 |
USD/Meter |
0% |
1/24/2018 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
1/24/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15615 USD dtd. 24/1/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Effective 23 January 2018, the Belgian division of the multinational group Easyfairs – specialised in organising events and managing exhibition halls and congress centres – is taking over the event activities of the non-profit association Textirama. Textirama promotes the textile sector in Belgium, and, with this move, Easyfairs Belgium adds four fairs and a conference to its portfolio, the majority of which are in the professional sector of interior textiles: Intirio, MoOD, Indigo Home Edition and the Intirio Conference have, in the meantime, become established concepts in the Belgian interior and textile sector. The Goed Gevoel Ladies Fair, an experience event for women, and a cooperation with De Persgroep’s magazine, entitled Goed Gevoel, is also being transferred as part of the deal. With the acquisition by Easyfairs, the organisation of these events remains assured and the promotion of the sector is guaranteed. “We believe in the power and the potential of the Textirama fairs and conference,” says Dirk Oosterlinck, head of Easyfairs Events Belgium. “This will benefit the entire textile sector in Belgium,” Oosterlinck added. The members of the Textirama Advisory Board will also continue to play an advisory role within this new business unit. “With these fairs in the B2B interior and decoration sector and the Goed Gevoel Ladies Fair in the B2C segment, we are adding a new and important business unit to our portfolio, one that enables us to develop new synergies with our existing fairs,” said Oosterlinck. The general manager of Textirama, Patrick Geysels – and his team –will lead and further develop the new B2B business unit ‘Textiles, Interior & Design’.“We are looking for continuity and professionalism within a rapidly changing fair landscape. In an organisation like Easyfairs we find the increase in scale that we deem necessary in order to be able to keep on growing,” commented Patrick Geysels.
Source: Exhibition World
Islamabad : Pakistan will ask for unilateral concessions on about 70 products, mostly of export interest to China as part of the second phase of the Free Trade Agreement (FTA). According to Dawn, the duty reduction on these products will be discussed in the eighth round of negotiations scheduled for February 7. Commerce Secretary Younus Dagha will lead Pakistan's delegation to the meeting. Pakistan will especially seek market access for sugar, maize, vegetables and textiles under the second phase. China's Ambassador to Pakistan, Yao Jing, said almost 60 companies have shown their interest in investing in the Gwadar industrial zone, which is scheduled to be inaugurated on Jan 29. Furthermore, the visa mechanism for Pakistani businessmen, especially exporters, would be eased, Chinese envoy informed. "China will love to buy Pakistani products whether these are edible, textile or any other items. China will like to buy whatever competitive products Pakistan introduces in the Chinese markets," he said.
Source: ANI News
Currently, Bangladeshi manufacturers mostly produce basic fabrics, which is not for higher-end products. Increased dependence on fabrics import and a lack of proper policy on energy supply are negatively impacting the competitiveness of Bangladesh’s woven garment exports in the global market. Industry insiders and trade analysts have blamed longer lead time, poor backward linkage, the absence of value addition and modern technology and lack of proper policy support on gas and electricity connection for the decline. According to the Export Promotion Bureau (EPB), export earnings from the woven garment products have seen a 2.35% fall in the last fiscal year to $14.39 billion. It has, however, posted a 4% growth in the first half of the current fiscal to $7.17 billion. During the same period, knitwear products earning has seen an 11.47% rise to $7.6 billion. The woven sector has also seen negative growth in major export destinations including Germany and the US, two of the largest export destinations. Experts have suggested new investments in backward linkage to reduce import dependence and technology upgradation for value addition in order to make a comeback.
Lack of competitiveness
To boost export of woven garments, the issue of longer lead time caused by import dependence is a key factor while the price edge is another important element. “Bangladesh is doing better in knit products exports. This is because of we have strong backward linkage industry,” Faruque Hassan, BGMEA senior vice president told the Dhaka Tribune. “However, woven products manufacturers are highly dependent on import for fabrics, which costs more. As a result, export earnings from woven goods have seen slower growth and it is losing its strength in the global market,” he added. On the other hand, value addition of woven products is less than the knit products which led to lower prices, Hassan said. “We do not have manmade fibre, polyester and petrochemical, which we have to import. We will be competitive if we can meet the demand from the local sources,” he added. “Stakeholders are investing to upgrade machinery to go value addition. This will boost the buyers’ confidence and they will place orders for higher end woven products in Bangladesh,” the BGMEA senior vice president said.
The challenges
Shorter lead time is the key to remaining competitive in the global market. To reduce the lead time, Bangladesh has to improve its backward linkage industry to meet the demands locally. It takes about 35 days to ship goods to the US from Bangladesh. But shipping from China takes 20 days and it is 15 days for Turkey, Exporters Association of Bangladesh president Abdus Salam Murshedy noted. “As a result, Bangladesh cannot take urgent orders from buyers due to longer lead time,” he told the Dhaka Tribune. While getting a gas connection is a big challenge, business will not be viable if the manufacturers have to run a factory with diesel instead of gas. “Only using gas can make the production less expensive, which will help us be competitive,” he said, urging a proper energy policy for the sector. The size of investment and costs of land are two other challenges. “Setting up woven fabric factories cost two to three times more than establishing a knit composite factory,” Salam said. “It also needs more land.”
Ways forward
Bangladesh can only meet 30% to 35% of local demands of woven fabrics. So, there is a huge gap between the supply and demand of woven fabrics. It is clear that there is big opportunity to grow by making new investments. “First, we have to try to meet the demands locally to reduce lead time as it takes so many days to import fabrics. For this, new investment is a must to increase production capacity in line with the demands,” said Salam, also managing director of Envoy Textile. “Then, the government should ensure infrastructure to ship finished goods within a possible shorter time as it is the key to success to grab more orders and remain competitive in the global market,” he added.
The former BGMEA president said there were many capable investors but they were unwilling to make investments due to lack of proper policy support and utility services. “Losing market share of woven garments is alarming for Bangladesh as over 82% export earnings come from apparel sector and the woven sector contributes almost half of it,” former caretaker government adviser AB Mirza Azizul Islam told the Dhaka Tribune. “We have to ensure balanced export earnings to attain a sustainable exports growth,” he said. “The government, along with the stakeholders, should jointly take steps to overcome the challenges.” He said he believed that new investment could improve the industry capacity to meet the demand of fabrics locally. Currently, Bangladeshi manufacturers mostly produce basic fabrics, which is not for higher-end products. “Since the fashion trend is changing every day and the consumers want latest fashion products, the clothing retailers are looking for more technical fabrics instead of basic ones. To cope up with the latest demand, we should focus on multifunctional fabrics to diversify products,” Md Mostafiz Uddin, managing director of Denim Expert Limited, told the Dhaka Tribune. He also suggested product development by research and innovation as well as introducing technology in manufacturing to get higher prices.
Source: Dhaka Tribune
The garment sector is playing a great role in development of Bangladesh, but export dependency on a particular sector is not good for the country. Garment accessories and packaging manufacturers have called on the government to provide them with long term policy support including cash incentives and equal corporate tax for the backyard linkage industry to enlarge direct export. They also urged the government to declare garment accessories and packaging products as the product of the year for 2019. Leaders of garment and garment accessories and packaging manufacturers came up with the demands while addressing the inaugural ceremony of the ninth edition of Garments Accessories and Packaging Exposition (GAPEXPO-2018) in the capital on Wednesday. Finance Minister AMA Muhith inaugurated the four day expo as chief guest, and BGMEA president Siddiqur Rahman was present as special guest. Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) organized the four-day international expo on garment accessories to showcase the latest products, machinery and raw materials to attract buyers. The show is being held at the International Convention City, Bashundhara (ICCB) in the capital till Saturday. “In the course of time, Bangladesh has turned into a sourcing hub for garments products. These days, garment accessories and packaging manufacturers have also started to export directly,” BGAPMEA President Abdul Kader Khan said. “Despite having a large contribution to the total export of the country, we are deprived of cash incentives, while the manufacturers have to pay 35% corporate tax even though the RMG exporters pay 12%,” said Kader. Urging the government to provide cash incentives and to cut the corporate tax, Kader said: “If the government provides equal facilities and policy support, we will be able to contribute $12 billion to export earnings by 2021.” The industry has the ability to meet over 95% of local demand, and is now exporting to some other countries, BGAPMEA leaders said. In the last fiscal year, deemed export earnings of garment accessories and packaging stood at $6.70 billion, which is 9.47% higher compared to $6.12 billion in FY16. “Accessories and packaging goods are the heart of apparel industry,” Exporters Association of Bangladesh President Abdus Salam Murshedy said. The government has given authority to issue Utilisation Permission (UP) to BGAPMEA but it is not implemented, he said. If it is implemented and the sub sector gets policy support, the capacity of the sector will increase manifold and it will help the manufacturers to export more directly, said Salam. The garment sector is playing a great role in development of Bangladesh, but export dependency on a particular sector is not good for the country, said AMA Muhith. “When the sector started business, the sector was import dependent. Now, the sector produces about 50% to 60% and the credit goes to sector people,” said the minister. It is good that the manufacturers create markets and export, he added. In response to the business people call, the minister said, that the government has created a business friendly environment to do business and provide all the support needed. A total of 278 companies from 17 countries including Bangladesh India, Sri Lanka, China, Taiwan, Malaysia, Vietnam, Singapore, Hong Kong, Thailand, Japan, South Korea, Germany, Italy, France, USA and Turkey will participate to display garments accessories and packaging items with machinery, all kinds of garments machinery with boiler and spare parts.
Source: Dhaka Tribune
Islamabad : Agronomists, economists and other experts, Wednesday, termed the indifferent approach of the stakeholders and decision makers as the sole reason for declining cotton production in the country in last ten years. In this connection, Ministry of Food Security, fertilizers and pesticide marketing companies, tax authorities, All Pakistan Textile Mills Association (APTMA) and others were held responsible for lower per bale cotton price as well as per hector yield in Pakistan as compared to the other regional countries. While expressing their views at a seminar titled ‘Need for Revolutionizing the Cotton Industry in Pakistan’ experts demanded of the government to announce cotton support price like wheat and sugarcane support prices to provide support to the drowning cotton related small and cottage industries of the country. They also proposed transfer of sugar mills from the cotton growing areas to sugarcane producing areas because the presence of sugar mills lured growers to sow seeds of other crops than cotton. Establishment of sugar mills in cotton growing areas was allowed on political basis to benefit a few of blue eyed families but it had harmed the cotton production. The experts also pressed on the scientists to focus on research to have refined and improved seeds for cotton as well as the concerned institutions to provide latest C-Cotton technology from B-Cotton technology to enable the growers to enhance per hector yield of the cotton. In this regard, experts gave comparison of Pakistani cotton production with the Indian and Chinese cotton production which had been soaring steadily upwards. Seminar was jointly organized by The Center for Global & Strategic Studies (CGSS) and in collaboration with Pakistan Cotton Ginners Association (PCGA).The event brought together government representatives, armed forces officers, diplomats, experts from cotton and textile industry and students from across the country and individuals from public and private entities. The aim and focus of the seminar was to highlight the revolutionary role of the cotton industry in the development of Pakistan. Furthermore the challenges being faced by the industry and the remedial measures to counter these challenges that will result in the increased cotton production. About 200 people including the senior members of CGSS Advisory Board, government representatives, armed forces officers, diplomats, students and experts from cotton and textile industry attended the Seminar. In his opening remarks Chairman CGSS Lieutenant General Muhammad ZahirUl Islam HI (M), (Retd) in his opening remarks stated that the economy of Pakistan was highly dependent on cotton and textile sectors, which faced significant challenges and opportunities in an environment of fluctuating world prices, macroeconomic instability, and changes in the global trade regime for textiles and apparel. Yet there is limited systematic analysis available that can help us understand the linkages between these sectors and the effects of their performance on the country’s economy. Chairman Punjab, All Pakistan Textile Mills Association (APTMA) Ali Pervaiz Malik highlighted the socio-economic significance of textile industry by stating facts i.e. the textile industry has 8.5% Share In GDP, 62% Share in Exports. He further stated that this industry has the potential to double the exports. He further compared the textile industry of Pakistan with other neighbouring countries including India, Bangladesh, Vietnam and Sri Lanka, and stated that out of all the countries, only Pakistan is the one experiencing negative growth which is alarming for the development of the country. He further presented the remedial measures for viability & growth of the textile industry. Chairman Pakistan Agricultural Research Council (PARC) Dr. Yusuf Zafar –enlightened the audience regarding risk management and options for cotton production in Pakistan. He highlighted the challenges pertaining to the cotton industry in Pakistan and presented an extensive way-forward for the improvement of the sector. According to him, we are facing low cotton yield because of area stagnation, Higher Input Cost for Production and Encroachment by Sugarcane and Corn, which are considered as a High Delta Crops. He further, presented the audience with policy recommendation for increased cotton production to undermine the mountain challenges to this very important sector. Dean Faculty of Social Sciences & Humanities, Muhammad Nawaz Sharif University of Agriculture, Multan Dr. Irfan Baig in his address highlighted cotton production in Punjab,the constraints and future strategy. He stated that Punjab contributes more than 70% of total cotton production of Pakistan and is the source of livelihood to 1.626 million families. He stated that according to statistics of 2016-2017 Pakistan is among top 10 in cotton producing countries. He also explained the major constraints like adverse weather conditions, temperature variations, pest attacks and water shortage that are responsible for the decreased cotton production during the year 2017-18. Cotton Commissioner Ministry of Textile Khalid Abdullah enlightened the audience about the Pakistan Government’s initiative toward the cotton industry.
Source: Pakistan Observer
The trade ministry signed a memorandum of understanding with SSA Investments, a Turkish company at the ministry’s headquarters in Kampala, to revive cotton growing and industry in Uganda. Below is the speech of Adnan Sarihan, the chairperson SSA Investments.
Ladies and Gentlemen,
It is a great pleasure to meet you all. It is an added pleasure to talk to you in the presence of honourable government members and our ambassador who will witness the signing ceremony of the memorandum of understanding between our company and the trade minister on behalf of Government of Uganda. I trust these signatures may open a new door in Ugandan economy by way of aligning Turkish experience and Ugandan potential for growth. This journey has started with a fact-finding visit in October 2014 to see and assess if we can have any chance to invest in cotton spinning here in Uganda. I particularly recall my heartfelt interactions with cotton farmers in Mutumba in Iganga district during my visit. This was followed by our study to structure a specific business model to serve the needs of those farmers to touch the lives of roughly 200,000 people. It took more than three and half years to reach a level of understanding. Together, we have had several rounds of discussion starting with His Excellency President to many officials in government offices. I never forget the factory and agricultural sight visits I have made with Vincent Ssempija and Michael Werikhe in Turkey to explain our model. Today again, I can see lot of energy and enthusiasm in this hall. I believe we are going to have quick steps from thereon to reach a final agreement for meeting the expectations of all. Brothers and friends from the fields, SSA Investments is a business platform to make investments in textile manufacturing, agro-business and in healthcare solely to selected East African countries where opportunities should have strong development potential and export led growth taken as “modus operandi”. It has been proven that cotton and cotton textile industries are the engines of economic growth both in developed and developing countries. They are considered to be the early phase of industrialisation and export-led growth. We also know that Africa has traditionally been considered as an important cotton production base, where Uganda was Sub-Saharan Africa’s largest cotton producer in 1960s. However, this sector went into spiral dive by then due to uncertainties that have been encountered. Even the cotton industry in Uganda has made great moves in research and studies, the sector lags behind its potential today. Market-oriented culture and direct market linkages with clients have not been developed in Uganda. As market-related aspects have been handled outside of Africa in general, feedback from spinning mills to ginners and to producers has not been provided. Following the liberalisation and restructuring of the cotton industry in Uganda, the institutions that regulate cotton trade among farmers, ginners and traders become weak and control are lost. In an entirely open system, producer prices, collection marketing and export marketing are entirely free. Controls are managed by private industry structures in which the ginners and traders have a major say. Obviously, ginners are playing a critical role in ensuring cotton because they are the interface between farmer/cotton purchasing agent and the broad market. Ugandan ginners’ practices in purchasing raw cotton mainly through local agents, are mostly discouraging farmers to switch cultivation of other cash crops. Thus, would only result in the reduction of acreage under cotton and may force significant number of households to give up cultivation of cotton altogether. Last but not least, a low level of domestic value-addition, which exposes cotton farmers to fluctuations in the world market lint cotton prices has also been noted as a major weak point for potential capacity building efforts. I am coming from 3,000 miles away, from a country of “Pamba”. Turkey has a wealth of experience in cotton growing and cotton textile industry and has started her journey to development by launching cotton and cotton textile industries after 1920s. After making great strides in manufacturing to reach a developing country level where Turkey is ranked 16th largest economy in the world today, cotton is still the basic income source for millions of people considering its direct and indirect employment effect with yearly revenue of $30b being generated out of cotton and cotton related industries. According to the US department of agriculture’s recent reports, Turkish cotton planting estimate is 450 thousand hectares and lint production is up to 900 thousand tons for this season. Domestic cotton consumption is projected to be 1.6 million tonnes. Imports are expected to remain the same as last year at 800,000 tonnes, in spite of the increasing local availability of cotton. These numbers mean 75 times more of production than in Uganda. Turkey’s increasing young population and disposable income, an increased number of tourists visiting Turkey from neighbouring Middle Eastern countries are contributing to this surge in local sales of textiles. Turkish textile producers are increasing their store numbers in export markets, such as the Middle East, North Africa, and Europe, to penetrate more to the markets that they are already in. The rise in exports to Turkey’s traditional markets, such as Europe and Russia, and also in new markets such as Iran, will help to support the cotton consumption in the future as well. Turkish mills have been investing in new machinery and technology to increase quality and to lower costs to get ahead in the very competitive but massive international textile trade. Turkey sourced about 47% of their imported cotton from the UStates, despite anti-dumping surcharge on U.S. cotton. Brazil, Turkmenistan and Greece were the other leading suppliers during the same period. About 26,000 metric tonnes of Syrian cotton also found its way to the Turkish market, despite turmoil in that region. During the first two months of 2017/18 season, which are August and September, total imports were 165 thousand tons; of which 82 thousand tons was U.S. cotton. Australia, Brazil, Burkina Faso (11,000 tonnes) and Benin (8,000 tonnes) were the other leading suppliers. I would like to draw your attention to the last two African countries being ranked in Turkey’s supplier list recently along with main exporters of cotton. Lint cotton is the most important raw material and primary phase of textile value chain.Our project starts with establishing the base for producing high quality lint cotton with global standards using state of art ginning technology by exercising Turkish know-how starting from agricultural practices to marketing. Once we start to produce and export lint cotton, the global recognition of Ugandan cotton will be emerged shortly. With the availability of substantial quantity and internationally accepted quality local lint cotton, initially international and in time local industrialists will take their part to exploit Uganda’s potential in textile supply chain, starting from spinning ending up to ready to wear production as an ultimate goal. This model is specifically structured for equally serving the needs of all actors in Uganda to establish a strong and sustainable supply chain to aim for exports of Ugandan textile products, as primary focus. As we will be linking up the market from the beginning and engaging with buyers in already identified priority markets through our sales network, a win-win partnership could easily be created. We are prepared to play our part as to materialise aforesaid global goals on Ugandan soil and link Uganda to Turkey for a direct access to international textile world for a long term benefit. However, it is also evident that no economy can achieve its true potential without creating local heroes. I also learn that any industry can only flourish with endeavours of local people and growth of any sector anywhere in the world, may only be catalysed through a range of fiscal and non-fiscal promotion policies. Governments may act as facilitator and regulating body to promote and subsidise sectors which will eventually bring significant returns to the nation in terms of increased employment, foreign exchange earnings, growth of allied sectors, less dependence on imports and increased tax collection. Across the globe, different states have focused on different sectors and formulated policies to aid the sector growth - like China & Turkey– manufacturing, India-services, Singapore–financial, Malaysia-tourism. Hence, unless Government of Uganda takes a decisive role to determine the outcome in cotton textile industry, the expectations will not be realised. Considering the necessity and benefits of cotton and cotton textile industry to the country, the Government can take up various development plans to be implemented in short-term, medium-term and long-term and then phased out successively after achievement of desired results. We are confident that once we kick off and reach our first milestone soon, many companies will start to explore your potential based on our footprints. With a view to help potential foreign investors, I humbly suggest you to consider a fast track mechanism to resolve all issues sincerely in one-stop shop and to show them that you value their participation a lot with an alert judicial system to ensure safety of investments. Our project in-its limited capacity; can only ignite Ugandans awareness to accomplish their true potential in entrepreneurship with a lot of hard work. To achieve this broad goal, I feel privileged to have learnt that we will be granted with required financial and human resources as well as safe working environment under this memorandum of understanding, in today’s signing ceremony. I am grateful to Her Excellency Mdm. Sedef Yavuzalp and Werikhe for their determination to have the chance of reaching a conclusion after a long period. It is heartening to address a crowd where eyes are wide open to see if there is a real chance of making a business together. We feel responsible. As the African proverb says… “Walk alone if you want to walk fast, walk with others if you want to go far.” I always take this as the motto and will be happy to learn from my brothers during our new journey.
Source: New Vision
The workers in the textile industry said as they got into the new year and edged closer to this year’s negotiations which are scheduled to start next Wednesday, they would be demanding that government should adhere to TUCOSWA’s call for a basic minimum wage, which would see them as part of the least paid workforce, getting at least E3 000 per month. MANZINI – Can the year 2018 be a turning point for textile workers’ prolonged poverty? This means that workers are demanding up to 100 per cent increase this year as most of them earn between E1 300 and E1 500 per month. They said even though they were supporting the call by the Trade Union Congress of Swaziland (TUCOSWA) from the onset, they were recently encouraged by the USA Ambassador to Swaziland, Lisa Peterson’s recent comments after the country was readmitted to the African Growth and Opportunity Act (AGOA). They said when the ambassador addressed TUCOSWA’s Women’s Wing Inaugural Conference delegates, she said with the return of AGOA, the country should strive to ensure fair labour conditions and safe workplaces. The shop stewards, who spoke on behalf of the workers, said had analysed the ambassador’s call and had since given their representatives, the Amalgamated Trade Union of Swaziland (ATUSWA) a mandate of a minimum wage of E3 000 across the sector. “We are aware that at the round table, our concerns are usually not taken into consideration but we believe that if we can remain focused and determined we can get what we want.
Source: Times of Swaziland
