The Economic Survey has suggested that the Goods and Services Tax (GST) Council should comprehensively review ‘embedded taxes’ and expeditiously eliminate the embedded export taxes to boost India’s manufacturing exports. Referring to the ₹6,000-crore package for the apparel sector announced in June 2016, the Survey observed that the largest component of that package was rebates on state levies to offset indirect taxes levied by the states (the VAT) that were ‘embedded’ in exports. The Survey found that the package in fact increased exports of ready-made garments made of man-made fibres. It then said a policy implication (arising from this example) was that the GST Council should conduct a comprehensive review of embedded taxes arising from products left outside the GST (petroleum and electricity) and those that arose from the GST itself (for example, Input Tax Credits that get blocked because of “tax inversion,” whereby taxes further back in the chain are greater than those up the chain). “This review should lead to an expeditious elimination of these embedded export taxes, which could provide an important boost to India’s manufacturing exports,” the Survey said.
Need for national policy
Pointing out that high cost of logistics was impacting competitiveness in domestic and global market, it suggested the formulation of a National Integrated Logistics Policy to bring in greater transparency and enhance efficiency in logistics operations.
“Improving logistics sector has huge implication on exports and it is estimated that a 10% decrease in indirect logistics cost can increase 5-8% of exports,” the Survey said. The document has also thrown up some interesting findings on India’s export sector. This included data on the international exports of states, the first in India’s history, showing that five states — Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana — in that order account for 70% of India’s exports. Similarly, for the first time, the Survey did a firm-level analysis on exports and found that export concentration by firms was much lower in India than in the U.S., Germany, Brazil, or Mexico – meaning that India had no ‘exports superstars’ and that its export structure was “egalitarian” in nature. “The top 1% of firms accounted for 72, 68, 67, and 55% of exports in Brazil, Germany, Mexico, and USA respectively, but only 38% in the case of India. The top 5% accounted for 91, 86, 91, and 74% in those countries, compared with 59% in India,” the Survey said, adding that the new GST data had made it possible to construct firm-level exports.
Source: The Hindu
The textile industry, is under depression and Sinha says the "main issue is GST, GST and GST". After persistent calls from various industry groups, the government last week announced the enhancement of duty drawback rates to be effective from January 25, 2018. The enhancement of rates for 102 tariff items must come as a relief to all the companies dealing in the mentioned items. However, representatives of textile industry have come forward to register their "disappointment" with the government for ignoring the calls of an industry which has been "one of the most impacted by GST"."The notification just mentions wool items which is a very insignificant part of the textile industry. There is nothing on textiles. The textile industry is pretty disappointed that demands for increasing drawback or ROSL for yarn fabric and garments was not considered, despite the industry being in a very difficult position post-GST," says Confederation of Indian Textile Industry (CITI), president, Sanjay K Jain. The domestic textile industry, inform its representatives, is getting flooded by imported material and it has become a concern for the SMEs operating in the sector. "Export incentives have come down and at the same time import barriers have gone down, which has resulted in imports going up by 20% already, and in some cases like in Bangladesh garments have increased by 50%. Exports are coming down every month," says Sinha. A decline of 3% in CAGR in textiles and apparels in the month of December last year compared to the corresponding period in 2016 has been reported. The exports came to $2996 million during December 2017 as against $3075 million in December 2016. "The effective GST duty on fabric is 5% officially, but because of the non-refund of excess input tax credit under inverted duty structure, it actually adds up to 8-9%.This is making us lose to imports because they only pay 5% IGST," remarked Jain. His concern is echoed by another industry association - The Textile Association of India. "We need genuine duty exemption in exports because money is getting stuck for manufacturers," says the national president of the Textile Association, Arvind Sinha. The textile industry, both maintain, is under depression and Sinha says the "main issue is GST, GST and GST"."Textile industry is not an industry where people can make a lot of money because the margins are very small," adds Sinha. With days to go for the budget, both the associations have called for the government to take initiatives which can help the exports get a boost. "The drawback rates or ROSL rates (Rebate of State Levies) for exports need to be increased to get them back to pre-GST level. The drawback rates have reduced considerably and the net which the industry was getting has come down. Import duty should also be restored to pre-GST level. It was much higher earlier and is disrupting the export to import ratio," says Jain. The import duty, says Jain, has come down to 10% as compared to an average of 29%. "Basic duty plus countervailing plus special additional duty (SAD) used to add up to 29% and now countervailing and SAD has been reduced after GST," says Jain. Jain asserts that the impact has been worst on the SMEs in the textile industry. "Those guys are extraordinarily hit and they do not know where to go and whom to ask for redressal because they are not well organised," says Jain.
Source: The Economic Times
NEW DELHI: The economy is estimated to have grown by 7.1 per cent in 2016-17 in line with the earlier projection of the Central Statistics Office. The data is part of the first revised estimates of national income for 2016-17, which was marked by the sudden decision to demonetise Rs. 500 and Rs. 1,000 notes. The CSO also revised upwards its GDP growth estimate for 2015-16 to 8.2 per cent from the previous 8 per cent. Economy activity in 2017-18 is expected to have been further impacted by the rollout of GST (Goods and Services Tax), and GDP growth is estimated at 6.7 per cent. The Economic Survey, released on Monday, projected GDP growth of 7-7.5 per cent next fiscal.
Industrial growth
But ahead of Union Budget 2018-19 on Thursday, a separate set of official data showed that industrial activity is yet to fully stabilise after the twin disruptions of the note-ban and GST. The eight core industries grew at a five-month low of 4 per cent in December, with little or no growth in six of the monitored sectors. These eight core industries grew 7.4 per cent in November last year and 5.6 per cent in December 2016. The data indicates that factory output may also have slowed down in December as the core sector industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production. IIP grew 8.4 per cent, a 25-month high, in November last year.
Gross value added
The CSO also revised higher its projection of growth in gross value added (GVA) to 7.1 per cent from the previous forecast of 6.6 per cent, against 8.1 per cent growth in 2015-16. The CSO attributed the revision in its GVA estimate to higher performance in the primary and secondary sector, which grew by 7.4 per cent and 6.1 per cent, respectively. The performance of the tertiary sector was more subdued than previously captured in the provisional estimate release in May 2017. “Nominal GDP or GDP at current prices in 2016-17 is estimated as Rs. 152.54 lakh crore while that for 2015-16 is estimated as Rs. 137.64 lakh crore, a growth of 10.8 per cent during 2016-17 as against 10.4 per cent during 2015-16,” it said. Per capita income at current prices is estimated at Rs. 94,731 and Rs. 1,03,870, respectively, for 2015-16 and 2016-17. Private final consumption expenditure rose 7.2 per cent and government final consumption expenditure has been revised down to 12.2 per cent. Gross savings grew 6.29 per cent while gross fixed capital formation is estimated at 10.1 per cent in 2016-17. “The extent of the revision in the growth for government final consumption expenditure and gross fixed capital formation is surprisingly large. In constant terms, the size of the discrepancies remains quite substantial for 2015-16 and 2016-2017, which may portend subsequent revisions in the pace of growth of the components of GDP,” said Aditi Nayar, Principal economist, ICRA. Under the third revision, the CSO has estimated GDP growth in 2014-15 at 7.4 per cent from earlier estimates of 7.5 per cent.
Source: Business Line
As Frederick Nietzsche said, there are no facts, only interpretations. This would just about be the case when one reads the Economic Survey for FY18. The Survey is a detailed update on all aspects of the economy and does not work with data which is not known. Hence, the so-called facts are available to all but the conclusions drawn change after reading the report. The Survey is evidently sanguine about the future to the extent of being gung-ho provided some glitches are addressed with expediency. As it is an interpretation of facts, it does turn around several views which were held before the report came out. How then is one to look at it?
Successful or struggling?
The Survey has forecast GDP growth for this year to be 6.75 per cent, which is higher than the CSO’s. It further puts a number of 7-7.5 per cent for FY19 and the interpretation by corporate heads is that the economy is almost going to start galloping from next year if the upper mark is achieved. Now, GDP growth in FY16 was 8 per cent which came down to 7.1 per cent in FY17 and could go up to 6.75 per cent in FY18 and say, 7.5 per cent in FY19. Does this mean that we are on the trot or are we still struggling to get back to the 8 per cent number? Here one would have expected the Survey to devote a chapter on the cost of two major reforms that have been undertaken by the Government which have cleansed the system for sure and made it more efficient, but left a cost-trail which ultimately gets reflected in the lower GDP growth number. Demonetisation and GST have definitely added transparency to the tax system and resulted in more taxpayers. But the disruption caused to small businesses and agriculture has been significant; else there is no explanation for lower GDP growth in FY17 and FY18 as monsoons have been good, inflation low, crude oil price benign, CAD low, fiscal balances under control, rupee stronger, foreign flows higher and interest rates lower.
Between hope and conviction
As the Survey takes an independent view of economic conditions and has gone ahead to advise the Government to set realistic and credible fiscal targets for FY19 rather than target a low number which cannot be achieved, it may be expected that the next edition will provide a detailed analysis on the cost of reforms. In fact, the Survey has also pointed out that the IBC, though good, has to work its way through time to ensure that it is relevant. The same holds for the tax litigation issues that need to be resolved or else the ‘doing business’ climate would be dented. One reason for the growth optimism as has been interpreted is the expected pick-up in investment and industrial growth. Here one is not sure if this is a hope or a conviction because the major issue afflicting the economy today is demand, which has not been the focal point of the Survey. The analysis admits that low capacity utilisation is a cause of low investment, but this can be traced to low consumption demand in the last three years. This is a serious issue because if households are not spending, and have been buffeted by the two major reforms, then the clue to higher growth is employment generation and higher income. The Survey does present a different set of data on employment based on social security data to show that there are more enrolled persons in the non-farm sector which is interesting as this angle has not been explored earlier. Employment data based on corporate annual reports for the formal sector or the labour department surveys do point to low growth in job creation. However, extrapolating this growth in social security enrolments should have led to an upsurge in consumer demand. This has not happened and the expectation is that it would take off next year.
Surprising position
While emphasising the role of investment in stimulating the economy the Survey clears the path by saying that the twin balance sheet issue has to be addressed, which also means we need to see more resolutions coming in the next couple of months. While this is a valid point, there is some analysis to show that higher investment is better than lower savings which is supported by select cross-country examples. This is interesting because at present, our investment and savings rates are both declining. The Survey expects investment to pick up especially from the private sector (while the NPA issue is tackled) but believes that this mismatch would not be serious for the economy. Anecdotally, a high current account deficit can create a different set of problem when savings trails investment. Here, surprisingly, the Survey is not too concerned about surplus financials savings generated mainly due to demonetisation flowing out from banks to the capital market. This has been taken to be a positive fallout of demonetisation where funds have been directed to the market. A concern everywhere now is that as the market appears to be overvalued and is due for a correction, there could be significant losses for households that have moved to such riskier avenues to earn higher returns relative to deposit rates which are falling. Now, these returns are linked to interest rates prevailing in the banking system. Here the Survey takes the unconventional route of interpreting inflation on an average basis and arguing that CPI of 3.3 per cent for the first 9 months is lower than the 4 per cent target. One can sense a case being made for a rate cut when the MPC meets after the Budget. This is a novel way of interpreting inflation targeting indeed!
The writer is chief economist at CARE Ratings. The views are personal
Source: Business Line
Chinese yarn and finished fabric being imported through Bangladesh is giving a tough competition to the indigenous textile industry. After increase in the import duty, the local industry has got some relief from less costly yarn and finished fabric imported from China, Korea, Taiwan, Indonesia and Bangladesh. The local industrialists want an increase in the excise exemption limit for textile industry. However, Punjab Pradesh Beopar Mandal president PL Seth said China was taking undue advantage of routing its material through Bangladesh, which was exempted from paying any duty under the SAARC. He said the import from China was affecting the country’s textile industry and local dress material and printing industry. Weaving is the oldest industry in the holy city as textile units here are manufacturing various kinds of fabrics, including suiting, shirting, tweed, blazer, blankets and women’s dress material. Hence, the local industry uses various kind of yarns, the most popular being polyester viscose. Over the years, a large number of local weaving units shifted to Ludhiana and Bhilwara (Rajasthan) due to unfavourable policies. Yarn agents were the mainstay of the business as they work as a fulcrum between yarn manufacturers based in Ludhiana, Hoshiarpur, Haryana, Himachal Pradesh, Kathua in Jammu and Kashmir and Rajasthan. Textile entrepreneur Sumit Jain said inflation must be reined in on the lines of China, banks here give loan at the rate of seven per cent. He wondered at the policies of the government as car loan was cheaper than advances to industrialists. Similarly, he demanded an increase in excise exemption limit for textile industry from the existing Rs 1.50 crore to Rs 5 crore. The capital investment limit for micro, small and medium enterprises (MSME) should be increased to Rs 10 crore, he said.
Source: The Tribune
Traders in Surat, India’s largest wholesale market for man-made fabric, have welcomed the state’s notification under the Gujarat Goods and Service Tax Act, 2017, to exempt businesses involved in all types of fabrics from generating e-way bill for movements within the city and the state. The rule, which does not apply to yarn, comes into force from February 1. E-Way Bill is an electronically generated document which is required to be generated for the movement of goods of more Rs 50,000 from one place to another. The decision will go a long way in curbing the problems faced by the textile traders regarding the generation of e-way bills, according to a report in a top Indian English-language daily. The traders, however, will continue to demand the extension of the implementation of the national e-way bill for another six months. (DS)
Source: Fibre2Fashion
The Maharashtra government has given an inprinciple approval to convert 2 140 hectares of the Navi Mumbai Special Economic Zone (NMSEZ) into an ‘integrated industrial area’. The decision to this effect was taken yesterday at the state cabinet meeting chaired by Chief Minister Devendra Fadnavis. With this the NMSEZ can apply for denotification of its special economic zone status. The Centre had already started the denotification process of the SEZ. However the state government had requested the Centre to put the process on hold a release from the Chief Minister’s Office said. The cabinet decision will help the promoters use 15 per cent of the total leased land - around 1 842 hectares - for residential uses while the rest will have to be utilised for industrial purposes the release said. The Navi Mumbai SEZ has been proposed to be developed in three phases on 2 140 hectares of land in Dronagiri Ulwe and Kalamboli areas of the township.
Source: Tecoya Trends
CHENNAI, India (Thomson Reuters Foundation) - Selvi Murugesan spent 13 years making buttonholes for shirts and stitching on buttons for one of India’s biggest clothing manufacturers “without raising her voice” but says she now risks losing her job for speaking out. For three months she has been “waging a war” against her employer for suspending her amid a broader push across India for the fashion industry to improve workers’ conditions as trade unions start to play a more high-profile role. Murugesan, 35, said she protested because she did not receive her full annual bonus and her employer started deducting costs for her bus to and from work from her salary. “I didn’t create any trouble in the factory in all these years,” she told the Thomson Reuters Foundation in a series of conversations over the phone and in person. “When I asked for my bonus and joined a few workers in a protest outside the factory sometime in October, the managers said I was out of line and suspended me.” Murugesan’s employer, Chennai-based garment exporter Celebrity Fashions Ltd that supplies various Western brands, said she and 13 other workers were suspended for obstructing employees from entering the factory on the outskirts of Chennai. Human resources spokesman Charlie Roy said by email that an internal enquiry was underway to investigate the grievances of the 14 workers and the company will abide by its outcome with internal committees in place to handle staff complaints. “The workers were suspended due to their riotous behavior during an uninformed demonstration in front of the factory premises,” he said. “Based on the complaint from a majority of the workers and to safeguard employees and the company we were forced to suspend our own employees who were maliciously motivated.” The row is one of the latest disputes between workers and employers in India’s multi-billion dollar textile and garment industry that employs some 45 million workers, mostly women. Campaigners say many of these women are underpaid, some work 14-hours shifts, and some face verbal and sexual harassment. The fashion industry has come under pressure to improve conditions and workers’ rights, particularly after the 2013 Rana Plaza collapse in Bangladesh in which 1,136 workers were killed.
ISOLATED
A growing number of workers in the south Indian garment hub have been suspended or dismissed within days of joining unions or attending events primarily to demand the implementation of revised minimum wages, campaigners and union leaders said. A landmark 2016 court ruling declared that garment workers should receive a pay rise of up to 30 percent and that they could claim arrears going back to 2014. “We have increasing number of workers coming to our office and saying they were forced to sign resignation letters, but in fact, need the job to support their families,” said Sujata Mody, of Penn Thozhilalargal Sangam, a women workers’ union. “Women are suddenly finding themselves unemployed for taking leave to care for a sick family member or if they are found talking to a union member and sometimes even if they happen to have a pamphlet that talks about their rights.” Mody co-authored a report funded by the International Labour Organization (ILO) which found grievance redressal mechanisms in India’s garment industry were “virtually absent” in factories. It said garment workers in Chennai who raised issues were “isolated” and kept under the watch of human resource officials. The ILO says freedom of association is a “human right” and encourages companies not to discriminate against workers joining or forming unions. The study also criticized factory committees, saying they rarely have guidelines to address workers’ complaints. Campaigners say factories are resistant towards workers joining external unions. Like most factories, Celebrity Fashion does not recognize the Garment and Fashion Workers Union (GAFWU), which Murugesan has joined.
Roy said the union did not have the support of employees.
“This external union is not able to represent the grievances of our employees in a fair and correct manner to ensure proper redressal,” he said. Mody said management prefer taking cases before the government’s labor department for conciliation talks but this could mean workers traveling up to 50 km (30 miles) to attend, making it difficult to sustain protracted struggles.
But Murugesan is ready for the fight.
“My co-workers - many are also friends - have been instructed not to talk to me by the managers,” she said. “They are scared of losing their jobs and so I hope that my voice is heard and we all get justice.” Reporting by Anuradha Nagaraj, Editing by Katy Migiro. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women's rights, trafficking and climate change. Visit news.trust.org. Our Standards:The Thomson Reuters Trust Principles.
Source: Reuters
The rupee finally broke out of its two-day consolidative trading range and managed to end higher by 2 paise at 63.58 against the US dollar ahead of the tomorrow's Union Budget. A broadly weaker greenback overseas along with sliding crude also provided a much needed support to the rupee. But, a caution ahead of release of macro-economic data -- core sector growth and revised GDP data -- kept the sentiment in check and saw the domestic currency falling to fresh one fresh one-week low of 63.75 in early trade before the recovery. Dollar selling was also brisk as currency traders started repositioning ahead of the highly anticipated FOMC decision to be announced later during the NY trading session. Though, the overall forex sentiment remained little shaky ahead of the Union Budget 2018 which is expected to strike a fine balance between populism and credible fiscal prudence. The current BJP government will present its fifth and final full-year Budget post GST regime tomorrow and traders will keep an eye on fiscal deficit and borrowing targets for the next fiscal year. On the international commodity front, crude price fell for the third-straight day after data from an industry body showed global crude stocks rose more than expected last week amid higher US crude oil inventories. Brent crude futures were trading lower at USD 68.55 a barrel in early Asian trading. Meanwhile, domestic equities continued to witness profit-taking as market participants remained on the sidelines ahead of the Union budget tomorrow.
The flagship BSE-Sensex dropped 69 points to end at 35,965.02, while Nifty lost 22 points at 11,027.70. Earlier, the Indian unit opened substantially weak at 63.67 compared to overnight close of 63.60 at the Interbank Foreign Exchange (forex) market. Increased month-end dollar demand and fresh foreign fund outflows largely kept trading mood highly volatile, hitting a fresh intra-day low of 63.75.However, the local unit bounced back sharply towards the tail-end session on persistent US dollar selling to touch a high of 63.55 before ending at 63.58, showing a modest gain of 2 paise. The RBI meanwhile fixed the reference rate for the dollar at 63.6878 and for the euro at 79.2149. Globally, the US dollar remained broadly lower against other major currencies as investors remained cautious ahead of the Federal Reserve's monthly policy decision due later in the day. The dollar index, which measures the greenback's value against a basket of six major currencies, was down at 88.77 in early trade. In cross-currency trades, the rupee slipped further against the pound sterling to settle at 89.91 per pound from 89.80 and also weakened against the euro to close at 79.17 as compared to 79.02.The local currency, however, rebounded against the Japanese yen to finish at 58.46 per yens from 58.59 earlier. Elsewhere, the British pound remained under immense pressure against the US dollar after a UK government report projected a widespread economic damage from Brexit amid growing political uncertainty surrounding the future of UK Prime Minister Theresa May. The euro, however, is trading higher following robust growth data from the Eurozone economy in the final quarter of 2017, rising 2.7 per cent over the year while German inflation remained steady.In forward market today, premium for dollar displayed a steady to firm trend due to lack of market moving factors. The benchmark six-month forward premium payable in June was quoted steady at 118-120 paise, while the far-forward December 2018 contract edged up to 256-258 paise from 255.50-257.50 paise on Tuesday.
Source: The Economic Times
Integrated textile and branded apparel player Arvind today reported a 14 percent growth in consolidated net at Rs 90 crore for the quarter to December, on improved performance of its branded business and textiles. Integrated textile and branded apparel player Arvind today reported a 14 percent growth in consolidated net at Rs 90 crore for the quarter to December, on improved performance of its branded business and textiles. Consolidated revenue rose 16 percent to Rs 2,706 crore, driven by strong performance in both textiles and brands business, the company said in a statement. Commenting on the results as well as outlook, Jayesh Shah, Director and Chief Financial Officer said, the reporting quarter was good for our business with both revenue growth as well as profitability metrics registering an improvement despite reduction in duty drawbacks and other export incentives. India Union Budget 2018-19 Live: News, updates and highlights from FM Arun Jaitley's Budget 2018 speech, announcements. While the festive season was relatively slow, demand picked up in November and December and we expect this growth trend to continue in the coming quarters," he said. He further said the process of demerger is proceeding as planned and they expect the three companies to list separately over the next six-eight months. He attributed the improved profitability to the better show by the brand business, which could offset the impact of the rupee appreciation. Brands business registered a healthy quarter with profitability ratio improving sharply. Revenue for the quarter came at Rs 961 crore, he added. Engineering arm, Anup Engineering also registered strong growth and delivered revenue of Rs 68 crore during the quarter, he said.
Source: Money Control
Jawaharlal Nehru Port Trust, Jawaharlal Nehru Port Trust sez, Jawaharlal Nehru Port Trust special economic zone So far, six export-oriented companies have taken up a total of 5 hectares and created a total of 2,150 direct jobs. The Jawaharlal Nehru Port Trust’s (JNPT) special economic zone (SEZ) has started to witness some interest. The zone has already received a total investment of Rs 150 crore from six companies, even as it is considering a proposal from Taiwan-based Foxconn Technology. Neeraj Bansal, chairman in-charge of JNPT, said: “Foxconn is very serious about their plans and have made a proposal. We are in the process of considering it.” According to sources, the company plans to invest Rs 6,000 crore to set up a plant over 200 acres (81 hectares) of land. Foxconn manufactures products for global technology companies such as Apple, BlackBerry, Nokia and Kindle, among others. Bansal refrained from giving details on the proposal by Foxconn. However, he added that priority would be given to proposals that create the maximum number of jobs, plan to start production early and commit the maximum amount of investment. He added that a number of foreign companies are showing interest in setting up their units in the zone. So far, six export-oriented companies have taken up a total of 5 hectares and created a total of 2,150 direct jobs. The total amount of land available in the zone is 270 hectares. Bansal added that JNPT will be tendering 15-20 plots in the next 2-3 weeks. For the plots that have already been taken up, the reserve price was Rs 4,800 per sq metre for a 60-year period with upfront payment. The highest rate that JNPT has received so far is Rs 5,500 per sq metre.
Source: Financial Express
KOLKATA|NEW DELHI: Consumers are continuing to hold back on discretionary spending with categories such as television, home appliances, fashion, lifestyle and apparel posting poor sales in the October-December quarter, with no recovery in sight in January as well, despite almost all brands and retailers running end-of-season and Republic Day sales. According to white goods industry sales tracker GfK, television sales declined by 8% while refrigerator grew by about 2% and washing machine by around 3% during the quarter, even as leading companies said sales in January continued to remain muted at similar levels. Three senior industry executives said fashion and lifestyle brands and retailers reported 10-12% drop in sales in the same period with the ongoing discount failing to lift the mood. There is no third-party agency which tracks apparel sales. "Consumer sentiments are poor and there are no signs yet of any recovery," said Godrej Appliances business head Kamal Nandi. "Either a GST (goods and services tax) rate cut for the category from existing 28%, or a strong summer, can only help revive sentiments," he said. In January, television sales were flat while other categories grew at 3-4% with regional festivals such as Pongal and Lohri failing to revive market. Leading electronics store chain Vijay Sales managing partner Nilesh Gupta said all brands are facing the heat. "Prices have progressively gone up for white goods and unless there is any new offer or scheme, consumers are not willing to spend. Even brands have significantly cut down marketing and promotional spend. The worst impacted are semi-urban and smaller towns." Three senior executives with top apparel retailers said their sales are so pathetic that they may have to push the ongoing discount till the end of February to clear the piled-up inventory of last quarter. Lifestyle International executive director Vasanth Kumar said sales picked up for a brief period at December-end due to the beginning of discounts, but that again fizzled out in January.
Source: The Economic Times
Finance Minister Arun Jaitley present Union Budget 2019 on Thursday amidst several challenges such as rising crude oil prices, shortfall in revenue collections, upcoming elections (8 state elections + general elections in early 2019), and requirement for sustained government spending to revive GDP growth. Recovery in nominal GDP growth (10.5% in FY19), declining trend of primary deficit due to improved tax buoyancy as tax compliance improves from GST and its spillover effect on direct taxes, and elevated stock markets (higher disinvestments) should allow fiscal deficit to reach 3.2% in FY19. Risks to fiscal deficit remain, what with sharp increase in oil prices and its impact on aggregate demand, primary deficit, inflation and interest rate. From a sectoral perspective, the Budget has the potential to affect the textiles sector positively.
TheWishlist:-
• Higher allocation towards Technology Upgrade Fund Scheme (TUFS) subsidy. The move would result in investment uptick in downstream segments, facilitating higher value addition and sector’s contribution to GDP and exports. Positive for all textile companies
• Continued push towards labour reforms (like announcement of a comprehensive National Employment Policy). This policy would provide fiscal incentives for employers across labour-intensive sectors like Textiles to create more jobs
Likely impact:-
• Positive for all textile companies
• Retainment of duty reimbursement to Garment exporters at the pre-GST stage of 7.5% drawback (from current 2%)
• The move would boost the apparel exports, which has remained stagnant over the last few quarters due to heightened competition
• Positive for all garment exporters
Source: money Guru India
Guwahati: Guwahati-based Orient Processors Pvt Ltd, which has a cotton yarn unit, will set up a spun silk unit and a weaving and knitting unit with an investment of around Rs 75 crore. The company will sign an MoU with the state government on the occasion of Advantage Assam - Assam's Global Investors' Summit here on Saturday and Sunday. Pabitra Buragohain, managing director of Orient Processors Pvt Ltd, said he was setting up a second unit - Orient Spun Silk and Processing Mills - to overcome the problems faced by silk weavers in the Northeast. "It has been observed that silk yarn available in the market is uneven, the dyed warp and weft yarn do not match in shades and the colour bleeds on washing. Similarly, eri yarn found in the market is mostly hand spun with traditional appliances. As a result, the yarn spun varies in count, twist and strength and the colour bleeds. The company will produce quality twisted yarn in different denier (a unit of measurement used to determine the fibre thickness of individual threads) which will help weavers to produce quality products of international standard," Buragohain told The Telegraph. The silk unit will go commercial from April. The company will install pure silk yarn dyeing machines and silk twisting machines which will be imported from Germany, the UK and the US with the specific objective of providing uniformly twisted yarn to make fast coloured dyed mulberry, eri yarn in hank (a hank is a coiled or wrapped unit of yarn or twine) as well as in package form and muga twisted silk yarn, which in turn will facilitate weavers to diversify the product line, add value and gain access to the export market. The Ramdhenu brand colour fast cotton dyed yarn, marketed by the company, is popular among handloom weavers in the Northeast. He said this endeavour will develop the silk industry in the region as, at present, a substantial quantity of raw material goes outside the region without value addition. To fulfil the Make In India initiative, the company will manufacture value-added products to supply to the domestic and export markets. "The manufacturing of value-added products will generate higher income for the people and provide sustainable livelihood," Buragohain said. The company is also setting up a composite weaving and knitting unit - Orient Knitfab Pvt Ltd - to produce cotton, mulberry, eri and muga fabric and knitted garments. Various products can be manufactured from eri fast coloured dyed yarn like shawls, stoles, scarves, knitted sweaters, ties, quilts, jackets, half coat shirts, sarees and home furnishing items like curtains, bed covers and cushions.
Source: The Telegraph
Chennai: Padmini Suppiah from Kaula Lumpur was beaming with joy. The Malaysian-born Tamil became the first international patron to order online Negamam sari from Cooptex portal. It will reach her doorstep in three days. "It took less than five minutes to complete the entire transaction to get my sari. From now on, I won't wait for my family or friends to visit Cooptex showroom in Chennai to get my sari," the project manager of HP Malaysia said. Making profit for the fifth year in a row, the state-run Co-optex is going international. On Wednesday, the state government launched international shopping and shipping through Co-optex portal, having entered in a tie-up with DHL and Professional Couriers to hand over the commodities in US or China. Blending classic with contemporary designs, product diversification and e-commerce to expand customer base, the Tamil Nadu Handloom Weavers' Cooperative Society, popularly known as Cooptex, is trying to make a turn-around. Deepavali festival sale touched Rs 140 crore, while Pongal Rs 70 crore this year. The agency raked in Rs 260 crore thus far this fiscal and the revenue stood at RS 246 crore in the corresponding period last year. "The international payment gateway is our attempt to reach larger sections. Organic cotton saris, Ahimsa saris (the product that comes from the process of allowing silk worms to break away from the cocoon before the silk is retrieved), Paramakudi Pudinam (recreating the grandeur of the motifs and designs of silk saris into pure cotton) and Chettinad cotton saris are a huge hit," Cooptex managing director T N Venkatesh said. The organisation with its huge presence in 16 states is working on regional differentiation, experimenting with colours and traditional motifs and different shades and colours, retaining the main motifs of Kanhceepuram or Arni. With the core strength of Cooptex being cotton products, weaver empowerment has been given a thrust in 20 cotton weaving clusters in the state, updating weavers with technical and design knowledge. The frequent meetings and workshops with weavers, designers and society managers helped get 2200 new designs of various products last year.
Source: The Times of India
Proposals for the establishment of the handloom park date back to the time when UPA was in power at the Centre and YS Rajashekar Reddy was the Chief Minister of the erstwhile Andhra Pradesh. Gadwal: Thanks to the Centre’s push to the handloom sector, investment made by the State and handloom entrepreneurs here, Gadwal Handloom Park will become a reality soon. Proposals for the establishment of the handloom park date back to the time when UPA was in power at the Centre and YS Rajashekar Reddy was the Chief Minister of the erstwhile Andhra Pradesh. Gadwal MLA DK Aruna had then sent proposals to the Centre almost a decade ago and permissions were granted by the Centre then. YSR also allotted 47 acres of land in Pudoor of Gadwal mandal. However, no funds were given by the State government and the project failed to gain a concrete form. The government had then failed to even decide on a self-sustaining business model to run the park. Hence, the project failed to take-off for almost a decade. With the Centre’s push to the sector and the State government’s efforts to revive the industry in Telangana, a feasible model to run the handloom park became a possibility. Special Purpose Vehicle (a conglomeration of handloom entrepreneurs) has been given the task of running the park, including procurement, manufacturing and marketing of Gadwal handloom sarees which would be manufactured in the park. Some 24 entrepreneurs have come forward and invested Rs 4.65 crore as equity for setting up the park. A committee, which will be headed by the District Collector, will oversee the park’s operations. The committee will also be comprised officials of Handloom and Textiles Department and entrepreneurs. The State government contributed Rs 6.15 crore and the Centre Rs 4.17 Crore as of now for setting up the park. Initially, 200 modernised looms will be installed in the park, providing employment to 300 people in Gadwal district. Yarn and dyes for production will be procured from Bangalore and mainly dyeing, designing and weaving will be done in this park. There will also be a residential facility for entrepreneurs in this park. “The main objective of the park is to encourage well-performing handloom units to take a corporate form and become self-sustaining. As handloom weaving skills are waning away rapidly, this park will help in protecting these skills. Through this project, entrepreneurs are also being introduced to the corporate sector and outside weavers can also avail services such as dyeing and designing at the facility. Above all, it will take the fame of Gadwal to another level nationally and internationally,” said Govind Rao Ganapa, a master weaver, who is also an entrepreneur part of the special purpose vehicle, speaking with Telangana Today on the occasion of the foundation-laying ceremony of the handloom park on Wednesday. However, there is a problem with working capital which has become a bottleneck for the SPV. “At least Rs 5-6 crore working capital will be needed and banks will not give loans unless some land is mortgaged. Therefore, we are requesting the State government to register the land in the name of the SPV on certain conditions so that we can avail the loans. We are also giving a representation to KTR regarding that today (Wednesday). It would also be great if we can get a grant from the State government,” Govind Rao said. Though business would be slow initially, he predicts that annual revenue could reach Rs 30 crore once the industry gets fully established. Though sarees would be woven here initially, the park was open to diversify its products and to install more looms if demand increases or if more entrepreneurs come forward to become part of the SPV, he added. Govind Rao said there was good demand for Gadwal sarees not only here but also nationally. He was hopeful that the products made here would be exported in the near future. “It is a private limited company and anybody interested to participate in our efforts are welcome,” he said.
Source: Telangana Today
The designer, who presented her off-beat collection, 'Hip Hop Baroque', inspired by themusic genre of hip-hop, said the reach of the Tinseltown is mindblowing. Veteran designer Ritu Kumar says Bollywood stars can be a great influence in promoting Indian textiles globally. The designer, who presented her off-beat collection, 'Hip Hop Baroque', inspired by the music genre of hip-hop, said the reach of the Tinseltown is mindblowing. "Bollywood is one of the biggest influencers in the fashion space and the reach is unparallelled. They play an important role in taking Indian textiles forward," Kumar told in an interview. Taapsee Pannu was the showstopper for the designer's label and Kumar said she chose the actor because of her "spunky" nature. "She is known for her joie de vivre and this collection is about street style. A huge audience and the youth who are also the consumers of the brand look up to her as a fashion and fitness icon." Kumar said she chose the genre as she wanted to explore the "subcultures" which she had not analysed before. "The collection is a blend of street couture and rap culture. It is inspired by the rebellious spirit of the past subcultures and re-contextualised to feel fresh and original. "The '90s DIY punk references are juxtaposed with hip-hop style to create looks that are simultaneously retro and contemporary," she added. The clothing line, which is a part of Kumar's Autumn- Winter collection, included pleated skirts and long dresses with ruffle detailing. The colour palette was a combination of contrasts with black, blue, and metallic interspersed with ecru, baby pink and ochre on handloom sequins. The models walked to the beats of hip hop which graduated from slow ones to swanky and electric.
Source: PTI
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1408.82 |
USD/Ton |
-0.27% |
1/31/2018 |
|
VSF |
2241.83 |
USD/Ton |
0% |
1/31/2018 |
|
ASF |
2487.51 |
USD/Ton |
0% |
1/31/2018 |
|
Polyester POY |
1338.96 |
USD/Ton |
-0.34% |
1/31/2018 |
|
Nylon FDY |
3424.17 |
USD/Ton |
0% |
1/31/2018 |
|
40D Spandex |
5681.35 |
USD/Ton |
0% |
1/31/2018 |
|
Polyester DTY |
3639.14 |
USD/Ton |
0% |
1/31/2018 |
|
Nylon POY |
5804.19 |
USD/Ton |
0% |
1/31/2018 |
|
Acrylic Top 3D |
1573.89 |
USD/Ton |
0% |
1/31/2018 |
|
Polyester FDY |
3201.52 |
USD/Ton |
0% |
1/31/2018 |
|
Nylon DTY |
2717.84 |
USD/Ton |
0% |
1/31/2018 |
|
Viscose Long Filament |
1596.92 |
USD/Ton |
0% |
1/31/2018 |
|
30S Spun Rayon Yarn |
2932.81 |
USD/Ton |
0.53% |
1/31/2018 |
|
32S Polyester Yarn |
2142.02 |
USD/Ton |
0% |
1/31/2018 |
|
45S T/C Yarn |
2932.81 |
USD/Ton |
0% |
1/31/2018 |
|
40S Rayon Yarn |
2287.90 |
USD/Ton |
0% |
1/31/2018 |
|
T/R Yarn 65/35 32S |
2472.16 |
USD/Ton |
0% |
1/31/2018 |
|
45S Polyester Yarn |
3055.65 |
USD/Ton |
0% |
1/31/2018 |
|
T/C Yarn 65/35 32S |
2548.93 |
USD/Ton |
0% |
1/31/2018 |
|
10S Denim Fabric |
1.43 |
USD/Meter |
0% |
1/31/2018 |
|
32S Twill Fabric |
0.88 |
USD/Meter |
0% |
1/31/2018 |
|
40S Combed Poplin |
1.23 |
USD/Meter |
0% |
1/31/2018 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
1/31/2018 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
1/31/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15355 USD dtd. 31/1/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan Bureau of Statistics (PBS) has reported textile export numbers for the month of December 2017, wherein textile exports have risen 10 percent to $1.13 billion from $1.03 billion in same period of last year. Most of the impetus came from the value-added segment , which rose 12 percent to clock in at $840m, while basic textile segment followed with a more modest 4 percent increment to reach $292m. Knitwear recorded highest export growth (20 percent YoY) amongst all product categories, followed by readymade garments (9 percent YoY), cotton cloth (6 percent YoY) and bed wear (4 percent YoY). On the other hand, cotton yarn exports remained stagnant in value. Encouragingly, growth in exports trend was led by a broad based increase in volumetric exports . Cotton cloth and readymade garments registered the highest volumetric export growth of 13 percent YoY and 11 percent YoY, respectively. Cotton yarn, bed wear and knitwear recorded volumetric export growth of 8 percent YoY, 7 percent YoY and 5 percent YoY, respectively. Conversely, realized prices for all product categories except for kntiwear witnessed a drop of 2 percent-7 percent. Comparison of realized prices and volumetric sales of Dec’17 revealed that margins for spinners and weavers are likely to witness a slight improvement on a YoY basis in Dec’17. As far as the value added segment is concerned, margins of knitwear segment would experience the greatest improvement followed by bedwear and readymade garments. On a cumulative basis, total textile exports rose 8 percent YoY in 1HFY18 mainly driven by growth in value-added segment which expanded by 11 percent YoY. On the other hand, basic textile segment recorded a sluggish growth of mere 1 percent YoY.
Source: The Nation.
Chinese woven fabric maker Changzhou Edelweiss Printing & Dyeing Co Ltd has been making good business in Bangladesh riding on growing demand from apparel industries, a top official of the company said yesterday. “Bangladesh is a very promising country for us as our business has been growing at over 100 percent in the last three years,” says Md Ibrahim Khalil, assistant general manager of the company. “We sell five million yards of fabrics worth $12 million a month in Bangladesh,” he said. Khalil was talking to The Daily Star in his stall at the “13th Dhaka International Yarn & Fabrics Show 2018 -- Winter Edition” at International Convention City Bashundhara in the capital. Two other exhibitions—“Second Dhaka Int'l Denim Show 2018 – Winter Edition” and “30th Dye+Chem Bangladesh 2018 International Expo - Winter Edition”—are taking place on the premises. The four-day fair started yesterday. Changzhou Edelweiss has been selling the cotton blended stretched woven fabrics in Bangladesh thanks to rising demand from international retailers and brands for this particular kind of fabric for apparel production in the country. Khalil opened the company's office in Dhaka five years ago, before which it was involved only in bringing products from China to Bangladesh. “Political stability has helped businesses achieve a rapid growth over the last four years in Bangladesh. The businesses will grow automatically if such stability sustains.” The international retailers and brands always examine the existing political scenario before placing work orders in Bangladesh. The present year is very important for businesses such as retailers, brands and manufacturers as it would see the national election. Khalil said many fabrics dyeing companies were shifting their businesses from China to Bangladesh, Vietnam, Cambodia and India, as Xi Jinping's administration has imposed stricter laws on running of effluent treatment plants for dyeing purposes. If Bangladesh can tap this opportunity, it will be highly benefited from the shift of businesses, he said. Echoing Khalil's words on the business potential in Bangladesh, Andy Shen, general manager of Fanglong Textile, another Chinese fabric maker, said he would also open an office in the country. Shen, who has been doing business in Bangladesh for the last five years, said his business was growing here while the number of clients spiralling. He started his business by supplying fabrics to two to three garment makers, and now he plans to serve major foreign buyers.In the last few years, the price of fabrics fell to a great extent in Bangladesh while production cost saw a rise in China, he also said. The global consumption of apparel items has also been falling as consumers now prefer spending more on electronic gadgets than on clothing, he said. After successful achievements of the previous editions, CEMS Global - Conference & Exhibition Management Services Ltd and the Sub-Council of Textile Industry, China jointly organised the show, CEMS said in a statement. These three events will cater to 350 international exhibitors from over 21 countries, according to the statement. They are showcasing the latest kind of yarn and fibre, fleece, knitted fabrics, coated artificial fur, artificial leather, denim accessories, embroidery, digital printer, adhesives and dyestuff, it said. The products are ready-to-use for garment, accessories, industrial use and other various applications, CEMS said. Amir Hossain Amu, industries minister, inaugurated the event where Chen Wei, charge d'affaires of the Chinese embassy in Bangladesh, and Md Atiqul Islam, president of the Centre of Excellence for Bangladesh Apparel Industry, were also present.
Source: The Daily Star
Both exports and imports reached new highs in 2017, as New Zealand earned more from agricultural products and bought more cars and computers, the country's statistics department Stats NZ said on Tuesday. China was New Zealand's top trading partner in 2017, Stats NZ said. Exports to China were valued at NZ$12 billion ($8.8 billion), or 22 percent of New Zealand's total exports, while imports from China were valued at NZ$10.9 billion ($8 billion), or 19 percent of New Zealand's total imports, statistics show.
"China overtook Australia as our top export market in 2013 and has remained at the top every calendar year since," international statistics manager Tehseen Islam said in a statement. "The gap between the top two markets is now wider than it's been at any time since then," Islam said. Annual exports were valued at NZ$53.7 billion for the year ended December 2017, up 11 percent from 2016, led by dairy products, meat, logs, wood, and wood articles, he said. Imports for the December 2017 year were up NZ$4.9 billion to NZ$56.5 billion, led by mechanical machinery and equipment, such as aircraft parts, computers, vehicles and parts and accessories, statistics show. New Zealand's total two-way goods trade (exports plus imports) for the year ended December 2017 was worth NZ$110 billion, up 10 percent from 2016, Stats NZ said, adding that annual two-way goods trade has remained above NZ$100 billion for the last four years. For the year ended December 2017, there was an annual trade deficit of NZ$2.8 billion, or 5.3 percent of exports, which was smaller than the NZ$3.1 billion deficit, or 6.5 percent of exports, in 2016.
Source: China Daily.
SINGAPORE After more than three decades as Cambodia's prime minister, Hun Sen added a new routine to his schedule last August: visits to the garment and footwear factories that employ some 700,000 citizens nationwide. Sometimes he has lunch with the workers. He is happy to pose with them for selfies. And he has been dangling a carrot before them in the form of a higher minimum wage. Hun Sen is not the only Southeast Asian leader using wages to woo voters, raising hopes for better living standards but creating headaches for employers. Global manufacturers are increasingly asking themselves whether countries in the region are worth the costs of paying employees more. In Cambodia, garment workers and their families constitute a major voting bloc among the population of 16 million. Hun Sen is personally courting them as he looks to extend his reign in a general election this July -- and calm public discontent over his opposition clampdown. "I wish to express my congratulations to workers who in the days ahead will receive a basic monthly salary increase from $153 to $170," Hun Sen said in late December, in an address to 14,000 workers from 15 factories and enterprises in Phnom Penh. Pointing to other welfare measures, such as free health checks and treatments in state hospitals, he stressed, "You will receive these benefits while I am still the prime minister." The 11% minimum wage hike took effect on Jan. 1. Employers and workers had previously agreed to raise the wage to $165 a month, but Hun Sen tacked on an extra $5. "I have declared already that I will continue to seek the premiership post for the next two terms," the prime minister said toward the end of his speech, which covered everything from the economy to peace. "I hope that you, your parents and grandparents, should they be still alive, will continue to vote for the Cambodian People's Party on July 29, 2018." Hun Sen has taken a page from the playbook of the now-gutted opposition. Calls for wage hikes had helped the Cambodia National Rescue Party, or CNRP, gain seats in the 2013 general election and the June 2017 communal elections. Last year, though, the top court dissolved the CNRP and jailed its president, Kem Sokha. Now Hun Sen is looking to win over workers who backed the rival camp. The higher minimum wage is part of the government's effort to "please the garment workers," said local economic analyst Chan Sophal. Malaysia, too, is headed for a general election before August, and there are rumblings of a minimum wage increase as well. The government will conduct a biennial review of monthly wages -- currently 1,000 ringgit ($258) for peninsular states and 920 ringgit for island states -- in the middle of the year. Prime Minister Najib Razak focused on lower-income voters in recent years. Programs, including the implementation of minimum wages in 2014, have been designed to lift the incomes of the bottom 40% of households, which earn less than 3,000 ringgit a month. Brisk economic growth and political considerations continue to elevate wages across Southeast Asia. Indonesia boosted its wages by 8.7% in major areas including Jakarta in January, while Vietnam increased them by 6.1% to 7% depending on the area, according to data compiled by Bank of Tokyo-Mitsubishi UFJ. Minimum wages in some parts of Southeast Asia have more than doubled in the past five years. Back in January 2013, the minimum wage in the Jakarta area was raised by 43.9% from the previous year. Joko Widodo, now Indonesia's president, had been elected governor of the capital region four months earlier and was looking to ease frequent labor protests. Demonstrations again played a role in setting Indonesian wages this year, with the increase exceeding last year's in many parts of the country. And in early November, just after new Jakarta Gov. Anies Baswedan set the hike, hundreds of members of labor organizations gathered in front of Jakarta's City Hall to demand a steeper increase. In Myanmar, which is poised for the region's biggest minimum wage increase this year, "[State Counselor Aung San] Suu Kyi is trying hard to make economic progress at a time when Myanmar is building a genuine democracy," said Myint Myint Cho, managing director of Min Thiha Jewelry, which mainly does business in Yangon. "She is trying to raise the lives of the blue collar workers." The large increase -- 33% -- is the result of protests and negotiations. Last August, about 2,000 factory workers marched in Yangon, arguing that their daily minimum wage should be raised to 5,600 kyat ($4.21) from 3,600 kyat -- the amount the government first set in 2015. "This can't cover our cost of living," a protest organizer told local media. Employers sought to limit the figure to 4,000 kyat, and after negotiations, they settled on 4,800 kyat. MORE THAN MONEY The question is: Can Southeast Asian economies withstand the side effects? This year's minimum wage hikes are exceeding expected inflation rates. The International Monetary Fund sees consumer prices rising 3.5% in Cambodia, 3.9% in Indonesia, 2.9% in Malaysia, 6.1% in Myanmar and 4% in Vietnam. A recent report by consultancy Korn Ferry Hay Group forecasts inflation-adjusted wage hikes of 2.8% in Asia this year, topping other regions and almost double the global average of 1.5%.Minimum wage increases can have positive economic effects -- spurring consumption, for example -- but Southeast Asia may be losing its appeal as an alternative manufacturing base. In the 2000s, some multinationals moved their plants there from China to escape upward wage pressure and spread risk. Last October, soon after Vietnam's congress approved an average wage hike of 6.5% for 2018, employers said the timing was wrong. The Vietnam Textile and Apparel Association held a conference in Hanoi, demanding a delay of at least two years, noting that last year's increase of 7.3% pushed up textile and garment companies' total production expenses by 2.9%."Manufacturers have to increase salaries and social insurance funds," said Nguyen Thi Mai, general director of Vietnamese yarn producer Fortex, which employs 1,000 people. "We are under pressure to balance the input costs and profits. If we fail [to balance them], layoffs or production cuts could result." Higher wages must go hand in hand with productivity improvements, Mai added. In Cambodia, there is real concern about the future of the apparel industry, according to Monika Kaing, deputy secretary-general of the Garment Manufacturers Association in Cambodia. "While the manufacturers have to increase productivity and effectiveness, the government should have policies to reduce the formal and informal public service fees," he said. Sooner or later, businesses will face a choice: become more efficient or leave. "We need to see the costs of the new minimum wage and find ways to survive, like reducing overtime and unskilled labor," said Myint Soe, chairman of the Myanmar Garment Manufacturers Association. Maung Myint, a member of Myanmar's parliament and former industry minister, wrote on his Facebook page: "If employers cannot afford that 4,800 kyat new minimum wage, there will be closures of some businesses. Then the unemployment rate will rise." Global manufacturers are responding to the pressure with more automation. Japan's Mabuchi Motor, which runs plants in China, Vietnam and elsewhere, has seen labor costs per head rise by about 10% every year in both China and Vietnam. As a spokesperson put it, "We will only lose profit unless we address this issue." Yoshio Morishita, general manager of Bank of Tokyo-Mitsubishi UFJ's global business division, said auto plants in Thailand and Indonesia are also resorting to robots. He noted that foreign "garment and other labor-intensive makers may relocate their production sites to countries with lower labor costs." Output that shifted from China to Southeast Asia could move to South Asia and Africa. Morishita did say that car and home electronics makers "are unlikely to [make such moves] as they have stable supply chains of international specialization in Southeast Asia." The rise of minimum wages might trigger still another response -- shifting production back to more advanced markets. Honda Motor last year brought production of its Super Cub motorbike back to Japan from China after five years, since rising wages had narrowed the cost gap. Similarly, as surging Southeast Asian wages close the cost gap with China, some output could move back in that direction. Labor is already expensive in Southeast Asian markets, relative to their overall competitiveness, noted Frederic Neumann, co-head of Asian economic research at HSBC. "If you don't have fantastic infrastructure and competitive legal systems, a marginal increase of labor cost matters even more," he said. Countries that rush to hike minimum wages without improving business conditions risk shooting themselves in the foot. This very scenario is beginning to play out in Cambodia, where global manufacturers are growing frustrated with the whims of local authorities. "We fell for the sweet words of the Cambodian side," Manabu Fujimura, a professor at Tokyo's Aoyama Gakuin University, said of the prevailing sentiment among Japanese executives with business interests there. Garment makers and other light-industry manufacturers from Japan, South Korea, Taiwan and China flocked to Cambodia around 2010, attracted by monthly per capita labor costs under $100. Now that the minimum wage far exceeds that, some companies are becoming reluctant to invest. Cambodia and other emerging economies have a major opportunity to accelerate their development, amassing technology and investment through labor-intensive industries. But if companies head elsewhere, without leaving much capital behind, this scenario will go up in smoke. "Populism," Fujimura warned, "kills the economy." Nikkei senior staff writer Kazuki Kagaya in Tokyo and staff writers Thurein Hla Htway in Yangon, CK Tan in Kuala Lumpur and Mitsuru Obe in Tokyo contributed to this report.
Source: Nikkei Asian Review
Nearly 100 garment workers were hospitalised after they fainted on Tuesday evening at the Senduno Knitting factory in Takeo province’s Bati district, due to pesticides being sprayed on a rice field nearby. Deputy district governor Hang Vicheka Rasy said yesterday that 86 female workers fainted at the factory that employs 1,650 staff. “All the workers that fainted have recovered now and most of them have left Bati referral hospital after receiving treatment,” he said. “There are only 20 workers at the hospital now.” Mr Rasy said he had not officially confirmed the cause of the fainting, but noted pesticides being sprayed on a rice field nearby may have seeped into the factory and caused the incident. “The committee for fainting research and prevention is investigating the case,” he said. Kandung commune chief Srey Sambo said yesterday that the incident took place at about 4pm on Tuesday, when he received a phone call from the factory informing him of the sick workers. Mr Sambo said he then went to visit the factory and saw farmers were spraying pesticides on their rice fields nearby. “I went down to stop the farmers from spraying because it was affecting the workers,” he said. Mr Sambo said a foul smell from the pesticides entered the factory at about 3.45pm, when factory managers allowed workers to exit their workplace. But on the way out of the factory, workers began to faint, he said. “We called ambulances to take them to the hospital for treatment and they are better now,” Mr Sambo said, noting the rice fields were only about 20 to 30 metres away from the factory. Mr Sambo added that he informed farmers nearby the factory to tell local authorities in advance of spraying their fields in the future. Earlier this year, the Ministry of Labour issued guidelines for factory owners to prevent faintings. “The Labour Ministry will take strong action through the Labour Law and other regulations against factory owners and directors who abuse these guidelines,” Mr Samheng said. The National Social Security Fund reported the number of workers who fainted in 2017 decreased 28 percent when compared with 2016. A total of 1,160 workers fainted in 2017.
Source: Khmer Times
The German Partnership for Sustainable Textiles and the Dutch Agreement on Sustainable Garments and Textilehave signed a cooperation agreement to support companies in implementing due diligence by harmonising sustainability requirements. The cooperation will increase the influence on labour rights and the environment in producing countries. The German Partnership for Sustainable Textiles is a multi-actor partnership made up of companies, unions, non-governmental organisations, and standards organisations, as well as the Federal Government. The Dutch Agreement on Sustainable Garments and Textile Sector is a new instrument to work on the transition to sustainable, responsible international production and supply chains. The association was announced at the OECD forum in Paris demonstrating the importance of the diligence approach of the United Nations and the OECD for both initiatives. "With the challenges in global textile supply chains in mind, the cooperation between Agreement on Sustainable Garments and Textile and the Textiles Partnership is the proper approach in order to achieve permanent systemic change. On the way to joint European and international action, the alignment of sustainability requirements and tools is an important milestone," Dr Juergen Janssen, head of the secretariat of the Partnership for Sustainable Textiles. "The cooperation of the two existing national multi-stakeholder initiatives in the textile sector operating on the European market is an important step towards strengthening our impact. It leads us on the path to create, at least on the European level, a level playing field. This is an important aspect in making sure that Due Diligence is not an issue of competition, but rather a common denominator," Pierre Hupperts, chairman of the Dutch Agreement on Sustainable Garments and Textile. "Major European textile companies have pressed for alignment of national textile initiatives within the EU. The Dutch and German agreement will contribute to clear guidance for business and better results for the working conditions and lives of millions of people in the garment industry," Sigrid Kaag, Dutch minister of foreign tradeand development cooperation. "This cooperation contributes to implement due diligence that is in line with the OECD guidelines throughout the EU market. It is a continuation upon the trustful collaboration between the German and the Dutch governments that exist for years with regard to this topic," Dr Bernhard Felmberg, German federal ministry on economic cooperation and development and moderator of the steering committee of the Textiles Partnership. "C&A, as a member of both initiatives, warmly welcomes the cooperation between them. We believe that this partnership will create further synergies for member companies in implementing supply chain due diligence. It is important that fashion brands and retailers collaborate to address industry-wide sustainability issues together. We are happy to see that both initiatives have made strong commitment towards this new partnership," Aleix Busquets Gonzalez, global head of external stakeholder engagement at C&A.
Source: Fibre2Fashion
Asia is home to a myriad of cultures and each boasts a traditional fabric that has been used for hundred of years. Inspired and proud of their heritage, multiple Asian fashion designers have been revisiting their roots and giving these fabrics a contemporary spin. Thanks to them, these beautiful fabrics continue to be used and celebrated in modern fashion. With that, here are four Asian designers who are proud of working with traditional textiles and believe it's an artisanal craft worth preserving in these modern times.
Ekru
Based in Calcutta, the designer duo, Ekta Jaipuria and Ruchira Kandhar are well-known for incorporating traditional textiles and embroidery into their designs at Ekru. Hand-loomed or woven in small villages around India, you can find a range of fabrics used in their collections, such as matka khadi (woven cotton) or chanderi (mix of cotton and silk) in a kaleidoscope of vibrant colors.
Ong Shunmugam
Ong Shunmugam's Cheongsam 2018 collection that features a batik fabric paired with lace.The Malaysian-born, Singapore-based designer draws inspiration heavily from various traditional Asian textiles. One fabric that Ong Shunmugam incorporates quite commonly in her collections is batik - an Indonesian fabric that features patterns made with wax-resist dyeing. Using the textile in her skirts and tops, Shunmugam typically pairs the fabric with other materials such as leather or lace.
Atelier Pichita
By breathing new life to Thai-made silk, linen and cotton, Thai designer, Pichitra Boonyarataphan has been a long supporter of her country's craft and artisans. Speaking with BK magazine, Boonyarataphan explained her process, "I pick up on the exotic characteristics of Thai fabric and put them together to invent something cutting-edge.” From jackets to dresses, the designer's underlying message remains. To preserve traditional textiles and weaving methods, and present them in a new, modern light.
Matter
Handlooming fabrics by Matter.
Primarily focused on reinterpreting traditional textiles, the Singapore-based label creates a range of apparel made with handwoven fabrics from India or Indonesia. As a socially motivated brand, the founder, Renyung Ho aims to boost textile craft into a viable industry and inspire people to value provenance. From using batik to ikat or jamdani and crafts like blockprinting and handlooming, Matter has consistently been an advocate of preserving the age old techniques and giving them a modern spin with various designs.
Source: Forbes
New York City -The Winter 2018 editions of Texworld USA and Apparel Sourcing USA opened their doors to exhibitors and visitors alike on Monday, January 22nd at the Javits Center. Over three days, a wide range of international suppliers from around the globe showcased textiles, trims, accessories, manufacturing and private label development services and finished apparel for industry buyers, designers and experts. Texworld USA and Apparel Sourcing USA Winter 2018 featured a record-breaking 371 exhibitors representing 14 countries and over 4,000 visitors. The show showcased textiles with innovative structures, material mixes and surprising color palettes across 14 product categories. Show attendees were able to view the latest textile trends, materials, fabrics and more with an exclusive opportunity to network and meet designers and suppliers from around the world while taking advantage of complimentary educational seminars. Exhibitor, Global Textile “Our company has been to other trade shows and this is the most planned and organized. The visitors are more focused and know what they want, know what they like, and it makes for a great experience. We are doing great business and are able to find exactly what the US market wants”. “As organizers, we recognize that our responsibilties extend far beyond providing a space for the industry to do business here in New York City. We believe in building a true industry event that unites the best talent from the industry with access to education and valuable resources, as well as a chance for our vibrant community to connect and exchange ideas. We are also aware of the changing fashion ecosystem. Texworld USA and Apparel Sourcing are dedicated to contributing to the fashion industry worldwide,” said Jennifer Bacon, Show Director, Fashion & Apparel. Lenzing Fiber’s Educational Series returns to bring attendees the latest information within the industryTexworld‘s educational seminar series, organized by Lenzing Fibers returned for Winter 2018 with sessions hosted by curated panels of industry experts discussing the global textile and sourcing landscape including sustainable solutions and the circular economy. Featured discussions were led by Sourcing Journal, Eileen Fisher, Trend Council and NSF International. Textile Talks were also a continued success at this year’s show led by StartUp FASHION, Lenzing Fibers, Fashionindex, BF+DA and more. Texworld Trend Showcase explored the latest designs trends for the upcoming seasonTexworld’s USA Trend Showcase returned curated by Texworld’s Art Directors, Louis Gerin and Gregory Lamaud. Together they brought their vision and expertise for the upcoming season. Attendees were inspired as the trend display area featured fabrics from exhibitors at the show. Visitors also had the opportunity to take a peek at the newest colors and textile offerings for Spring/Summer 2019.
Explore the Floor series launched this year at Texworld USA
New to the show floor, Texworld USA launched the “Explore the Floor” series featuring tours that allowed attendees to walk the show floor with seasoned industry experts in an intimate setting. With a focus on sustainable business and products, these tours allowed attendees to gain knowledge about different exhibitors and emerging trends.
Apparel Sourcing USA SPOTLIGHT: Denim
Apparel Sourcing USA Winter 2018 welcomed exhibitors specializing in womenswear, menswear, children’s, and accessories, with a higlight on a true style icon – Denim. This SPOTLIGHT featured exhibitors specializing in denim and allowed attendees to gain more knowledge on how denim is evolving. Apparel Sourcing USA is a long-term joint venture partnership between Messe Frankfurt Inc. and CCPIT-TEX and provided attendees direct access to suppliers all over the globe.
Denim Dogs, An Art Installation
This year’s show featured installation Denim Dogs created by artist, Moon Heemin showcasing intricate dog sculptures made of denim. The designer considered the project as a study of animals in a very imaginative way. Additionally, it served to be an artistic interpretation in fabric and colors brought together. Garnering much hype and attention, many visitors took to social media to feature this unique installation.
Source: Messe Frankfurt
Growth in China’s manufacturing sector slowed more than expected in January to an eight-month low in the face of a cooling property market and tighter pollution rules that have curtailed factory output. The data, which gives global investors their first look at business conditions in China at the start of 2018, reinforced the view that the economy is beginning to gradually lose steam after growing by a better-than-expected 6.9 per cent last year. The official Purchasing Managers’ Index released on Wednesday edged lower to 51.3 in January, compared with 51.6 in December. But it remained comfortably above the 50-point mark that separates growth from contraction on a monthly basis. Analysts surveyed by Reuters had forecast the headline number would ease slightly to 51.5. However, the overall factory reading still appeared relatively solid, marking the 19th straight month of expansion and reinforcing expectations that any slowdown in the economy would be gradual. A separate PMI on the steel sector rose to 50.9 in January from 50.2 in December. Why a cooling in China’s economy would be a good thing Boosted by government infrastructure spending, a resilient property market and unexpected strength in exports, China’s manufacturing and industrial firms have been a major driver behind the solid economic growth last year. But analysts say increasing trade friction with the United States could cloud the outlook for export manufacturers in the world’s second-largest economy. US President Donald Trump slapped steep tariffs on imported washing machines and solar panels last week. China is the world’s biggest solar panel producer. The decisions were the first of several potential tariff actions that Trump may take in the coming weeks and months. He is also considering recommendations on import restrictions for steel and aluminium and other trade sanctions against China over its intellectual property practices. A slowing property market is also expected to dent China’s industrial activity this year, dampening demand for building materials from glass to steel. Property investment growth in December alone moderated to 2.4 per cent from a year earlier, the lowest since July 2016. “We see additional headwinds to growth this year from slowing credit growth and the cooling property sector,” economists at Capital Economics wrote in a research note on Tuesday. “But there may be a short-lived rise in the PMIs over the next few months as the pollution crackdown, which was intended to reduce emissions this winter, comes to an end.” Chinese provinces lower growth targets after Xi Jinping says don’t just chase higher figures. In a sign of broader economic resilience, a sister survey showed activity in China’s service sector accelerated to a four-month high in January. The official non-manufacturing Purchasing Managers’ Index rose to 55.3 from 55 in December. The services sector accounts for over half of China’s economy, with rising wages giving Chinese consumers more spending power. China’s leaders are counting on growth in services and consumption to rebalance their economic growth model from its heavy reliance on investment and exports.
Source : Financial Express
