Mumbai: In a bid to script a turnaround of cooperative spinning mills and powerloom societies, the state government has decided to allow them to go in for privatisation. A new state textile department policy allows them to change land use, which means they can use it for reasons other than industrial purpose. After the policy was cleared by the state cabinet 10 days ago, the department issued a government resolution (GR) on Saturday. According to the new policy, cooperative spinning mills and powerloom societies will be allowed to be privatised provided they are ready to return the government equity, loan and interest thereupon. Besides this, a charge has to be paid to the government for change in land use under the ‘one-time exit policy’. The new policy will be in force till 2023. There are 136 societies and mills across the state that had sought funds in the form of share capital, out of which 66 are running, while some others are ‘under installation’, which means the production is yet to begin. A few have opted for liquidation and three have shut down. The state government’s textile department funds cooperative cotton mills to the extent of 45% of share capital, while they are required to raise 50% from the open market and the remaining 5% is to be borne by the mill board. In case of mills run by scheduled caste (SC) members, the state textile department will provide 45% of share capital, while 50% will be funded by the social justice department and the remaining 5% will be raised by the mill board. “Loss-making powerloom societies or cooperative mills under liquidation had no options for revival. Now, they will have an option by changing land use,” said Atul Patne, secretary, textile department. The policy is aimed at generating 10 lakh new jobs in the next five years and doubling farmers’ income by 2022. It is also expected to attract investments worth Rs 36,000 crore. The government claims the policy will provide many benefits, including competitive power tariff and increased capital subsidy for SC/ST and minority categories. The policy lays special focus on strengthening the knitting, garmenting and hosiery sector which will create ample employment opportunities for women. The government said this will prove to be an important step toward creating women entrepreneurs.
Source: Daijiworld
Even as the Centre evinced its readiness to give IGST tax refund, a good number of exporters in Tirupur have not made an earnest attempt to file their returns, citing ambiguity in making the refund claim, industry insiders say. “Our understanding of the GST notifications on IGST refund has led us to believe that it would be cleared automatically through the refund mechanism. But there is an anomaly in this. We have decided to approach the GST Council to request a correction,” said Raja M Shanmugham, President of Tirupur Exporters’ Association, referring to the import of capital goods, wherein the tax claim is not allowed by way of refund. “We learn that this cannot be set off against inputs, including raw material purchase. The IGST incidence is quite high in import of capital goods,” he addedExporters have also expressed anxiety over not being able to make the IGST refund claim using the carry-forward mechanism route. Small exporters, who bank on auditors for help, point fingers at these professionals, stating that “they ask too many questions”. Meanwhile, the Tirupur Exporters’ Association (TEA) has offered to help exporters who are in a fix over filing refund applications. S Dhananjayan, a senior auditor, told BusinessLine that exporters could either submit a letter of undertaking, or a bond, or choose the IGST route to claim the tax refund. A handful of exporters who chose the IGST route are understood to have received some refund after adjusting for tax. Yet another route is to get the Input Tax Credit (ITC) and make a matching claim. Originally, the units had to file three returns every month, but this has been suspended till March 2018. This has resulted in exporters being unable to make a claim on the online platform. They can however opt for manual processing, and this involves furnishing of each and every transaction detail, Dhananjayan explained. He conceded that the exporters were under immense pressure due to the delay in getting tax refunds after the GST regime was rolled out.
Interactive session
To address their grievance, the exporters’ body had invited M Periasamy, Joint Commissioner of GST and Central Excise, for an interaction. He had urged the participants to shed their inhibitions on GST for achieving compliance and getting refund of ITC at the earliest. But exporters, particularly the smaller players say that the resultant impact of GST roll out has put them in their “lowest ebb”. The change, it appears, has not been easy, with the industry blaming the government for thrusting it on them without taking the micro-economic issues into consideration.
Source: Business Line
Apparel exports have declined by 14% in rupee and 8% in dollar terms in January this year compared with the year-earlier month, latest data showed. Between April and January of last financial year, apparel exports stood at Rs. 93,745 crore and for the same period this fiscal, it was Rs. 88,709 crore, a drop of 5%. “We were hoping to remain at $17 billion of total apparel exports this year,” said a spokesperson of Apparel Export Promotion Council (AEPC). “But, I do not see the sentiments for any major correction. Usually, orders are good between January and March. However, this year, exporters are cutting back on orders because of financial crunch,” said the spokesperson. If a garment unit with Rs. 10 crore turnover has Rs. 1 crore locked up in pending refund arrears, it is a problem for exporters. Almost 80% of the benefit in the apparel package announced by the Centre in 2016 is towards ROSL. Almost 55% of garment exporters had not received the RoSL (Rebate of State Levies) since last July and this amounted to almost Rs. 2,000 crore, the AEPC spokesperson added.
Labour-intensive sector
Apparel is a labour-intensive sector and the ongoing issues are weakening it, said Raja Shanmugham, president, Tirupur Exporters’ Association. While the refunds from the Centre are pending, the industry continues to make the mandatory payments every month. This is crippling the industry, he said. “The international market is not bad. There is an internal competitiveness problem,” Sanjay K. Jain, chairman, Confederation of Indian Textile Industry, said, explaining the reason for the drop in exports of not only garments but also other textile products. While the country’s exports are growing, decline in apparel and textile exports will bring down the share of the sector in the export basket. “The annual textile and clothing exports this year compared to last year will be a close call. It might be the same as last year. However, yarn and garments are going to be lower,” Mr. Jain added.
Source: The Hindu
Between 2014-15 and 2016-17, the value of Indian exports to Bangladesh through the Petrapole checkpost increased 22 per cent Export vehicles parked at the Petrabole parking lot. Many exporters are exploring the sea route, despite its higher costs . Photo: Subrata MAJUMDER. Two-hour parking charges at the world’s most expensive parking bay, in New York, is $32.97, according to Global Parking Index Study, 2017, by Parkopedia, a global provider of these services. It takes double that amount to wait to cross a seven km stretch from Bongaon village in West Bengal to Petrapole along the Bangladesh border.Between 2014-15 and 2016-17, the value of Indian exports to Bangladesh through the Petrapole checkpost increased 22 per cent to about Rs 157 billion. Much of the increase is attributed to the Indian government’s push for trade with Bangladesh and the modern integrated check post (ICP) at Petrapole, built for about Rs 2 billion, inaugurated in February 2016.The checkpost is managed by the Land Port Authority of India (LPAI), a statutory body set up by an Act in 2010 to provide better administration of border trade. The ICP at Petrapole is the busiest and largest land port in India in terms of cargo handling, spread over 100 acres.Nearly 60 per cent of border trade with Bangladesh is through the Petrapole ICP, which replaced the old Land Customs Station, which had capacity to park 700-800 vehicles. With the new ICP, this capacity has gone up to 2,000 trucks.Yet, the cost of exporting from the Petrapole ICP defies the rules of economics — mainly for two reasons. First, while India has increased its parking capacity at Petrapole to 2,000, Bangladesh has a facility to park only 500-700 vehicles, resulting in an increase in detention time for trucks at Indian ports and outside. Second, on an average, 3,000 to 3,500 trucks wait outside Petrapole at any given point to enter the ICP. The parking rentals in adjoining areas have gone up several times and the average waiting time for trucks crossing the Bangladesh border is as much as 15-20 days, adding to the rolling capital cost of exporters.“At least 3,500 Indian trucks are waiting on any given day in the hope to cross the border. This poses a huge issue of parking. Cashing in on this situation are the locals at Bongaon village, about seven km ahead of Petrapole. Of the 3,500 trucks, 2,000 have to wait for almost 10 days before they get parking at Petrapole.While the Bongaon municipality accommodates 1,200 trucks, the rest are at the mercy of private parking lots, where contractors charge an upfront fee of about Rs 4,000 per day. The irony is that Bongaon’s economy depends on this congestion,” spokesperson for one of the major exporters of chassis to Bangladesh said.“For a big exporter, who exports 50 consignments a year, the cumulative detention time comes to 200 days. If a consignment gets stuck for 200 days, it would be a major cost,” a senior official of LPAI said.Cotton, denim, three-wheelers and chassis are the top export commodities from India to Bangladesh through Petrapole.Tata Motors, Arvind Ltd and Ashok Leyland are the top three exporters from India at the Petrapol ICP.The impact of detention is already visible in export. The export of raw cotton, the top export commodity from India to Bangladesh, fell about 20 per cent in the first nine months of FY18 year-on-year through Petrapole.The biggest decrease was in iron and steel, which fell 57 per cent.Export of motor vehicles fell 10 per cent. Many companies, especially those involved in motor vehicle export, are exploring the sea route, despite its higher costs, said sources close to a prominent vehicle company.“We have increased our capacity to process about 2,000 vehicles per day but Bangladesh is able to receive only 450-500 vehicles per day. Detention, damage and pilferage are the three issues which have been impacting the bilateral trade. We have communicated to the ministry of home affairs that there has to be diplomatic pressure on Bangladesh to increase its port capacity,” senior official of LPAI said.The annual trade potential is Rs 500 billion from Petrapole.
Source: Business Standard
Growth for PSA India will come from the JNPT terminal for the next few years, says Tan Chong Meng, Group CEO, PSA International Pte Ltd, which opened its first facility at the port on Sunday. Excerpts:
How important is the new terminal for PSA?
JNPT is a gateway port, it has got a deep hinterland and we are excited by the DFC. We are committed to completing this terminal in 2022. The growth, aside from being prepared for what comes to India at the waterfront, is also about serving the hinterland. That’s where maritime competitiveness will create a multiplier effect... it’s not just about the transaction on the shore line. For the next 3-4 years, BMCT (PSA arm Bharat Mumbai Container Terminals) will be our focus; we will not neglect Chennai or Kolkata, those are very important points of entry as well. There is competition... we will have to make sure that we are able to compete. Growth for PSA India will certainly come from JNPT for the next few years. We are expecting to tip over 500,000 TEUs in the first year of operations.
How will the new facility benefit the port, trade and users?
JNPT will double its capacity. And then the multiplier effect, with bigger ships, more economic handling costs and all that, will benefit India.
Being the new kid on the block in JNPT, are you being tested?
There are some issues... whether the terminal can be part of a total port community. We are still seen as a new kid on the block. But I think that is short-sighted. Because BMCT is not built for its own sake. It is built for the sake of the entire JNPT port. If BMCT has a good reputation, the whole JNPT has a good reputation and cargo may move from other ports to BMCT to be better serve the hinterland with greater efficiency. Ultimately, shippers will get the benefit. If the situation in JNPT is not sorted out, then it’s not helpful. At BMCT, we would like to see normalisation. If that can happen, then I think financial rewards should come but, again, depending on the economic conditions. Does the rate regime favour the new terminal compared to your other facilities? In JNPT, we can’t charge whatever we want. Why? Because there is competition. So, nobody really gets the opportunity to charge what is on paper; it is all subject to negotiations and at the end of the day, the customer wins. Will other stakeholders measure up to your expectations at JNPT? Alongside the port and cargo operations, other facilities should also see an improvem,ent, such the Customs, the port trust and inter-modal operators. So it’s an opportunity to not just increase capacity but to do things differently, that’s why we are working with Concor. If you look at our facility, when the DFC gets completed, you can move 300-plus TEUs rather than under 100 in a single movement. Think about that. What is the implication for India? For a long time, you max out at 100 TEUs per movement and now you max out at 300 plus TEUs; it is quite a big jump.
Are you looking at hinterland opportunities?
With today’s technology, presence in the hinterland, in the key hubs called ICDs, may also be meaningful so that we can serve customers at more points. It will be interesting to look at the hinterland. I would love to have a good project, I haven’t found one where I can sign a cheque.
Source: Business Line
“If we plant cotton, we may be doomed, if we don’t, we are doomed,” said Ramdas Turi, a cotton farmer from Pandhari village in Yavatmal district, 160km from Nagpur, just as he set his standing cotton stalks and infected bolls ablaze this month. Turi, who had planted cotton on his six-acre land last year, got less than one fourth of his average yield and suffered a loss of Rs50,000. Despite the loss, Turi will still plant cotton next year, even if it means seeking credit from a moneylender at exorbitant interest rates. “Nothing else can give us the yield that cotton does, especially on non-irrigated land,” he said. Turi’s sentiment best describes what several cotton farmers in Vidarbha told the Hindustan Times in the backdrop of the pink bollworm attack last year, and the approaching kharif sowing season in June. HT has reported on the cotton crisis in the state, following the pest attack, which has left 41 lakh farmers from the agrarian-troubled regions of Marathwada and Vidarbha facing a crisis of epic proportions. Nearly, 32 lakh hectares of cotton crop area was hit last year by the pink bollworm attack. In arid Marathwada, too, farmers despite losses say they will cultivate cotton, although they might reduce the area under cultivation. Despite the hardships, majority of farmers especially those dependent on rain-fed farming, feel cotton can give them yield and returns not feasible in other crops. The pest attack of this scale in Maharashtra has revealed that pink bollworm has developed resistance to the toxins in BT (genetically modified seeds) cotton. With more than 90 per cent of land under cotton cultivation dependant on BT cotton, the pink bollworm’s resistance to BGII technology can make farmers vulnerable to more losses unless some necessary steps are taken. The big worry is that the pink bollworm present in the soil can attack the cotton crop again in the upcoming kharif season.
EXPERTS SPEAK UP
There is a general consensus among farm experts and majority of stakeholders that pink bollworm infestation can be managed effectively if farmers change certain existing practices and adopt recommended guidelines to kill the life cycle of the pest. “The pink bollworm infestation has been registered in south and central parts of India over the past couple of years, but not in north India,” said Dr VN Waghmare, director, Central Institute of Cotton Research (CICR), Nagpur. “One of the reasons for this is the trend in our parts in recent years to provide more irrigation and continue to harvest the crop till beyond January.” “In north India, where irrigation is available throughout the year, farmers opt for a rabi crop after cotton unlike Maharashtra where farmers have been increasingly dependent on cotton as a monocrop and take yield up to March or even beyond.” This provides the pest an opportunity all year around. CICR has advised the state government and farmers on guidelines and recommended practices to avoid another infestation this year. These include using non-BT seeds on refuge of farms, deep ploughing during summer to expose the pupae of the larvae and destruction of cotton stalks post-harvest using shorter variety of seeds, among others. After sowing, recommended methods include laying pheromone traps to attract moths during the planting cycle and spraying insecticide depending on the economic threshold level of a certain number of moths per trap, among others. “There is no doubt that pink bollworm infestation can be managed if farmers adopt the recommended practices. It has been done in Gujarat to a great extent through collaboration of all stakeholders and it can be done here. We have started mass awareness programmes in the cotton producing districts of Vidarbha,” said Dr CD Mayee, president of board of directors, South Asia Biotechnology Centre (SABC) and former director of CICR, Nagpur. He said as part of the awareness exercise, pheromone traps had been put up in ginneries across Vidarbha. Both Waghmare and Mayee said that BGII technology continues to protect cotton farmers from a host of pests, especially the American bollworm, which is more dangerous to the cotton crop despite its resistance to pink bollworm. The state government taking cue from the experts and CICR has decided to impose an indirect ban on the longer varieties of cotton seeds and promote short- or medium-term varieties of seeds with BT technology. “The regulation of the seed market to weed out spurious, unapproved and untested seeds will be a big deterrent to a similar pest attack,” Bijay Kumar, Maharashtra government’s additional chief secretary of agriculture. “Our decision not to give license for co-marketing where one brand gets sold under various names will also lead to fewer but better seed brands in the market. We will also be promoting shorter seed variety and ask farmers to avoid long variety.”
CHALLENGES AHEAD
While the state government seems better prepared this year to tackle another possible outbreak, the challenges will be reaching out to the farmers, enforcing stricter sale of seeds and monitoring cotton planting by farmers through the entire cycle. If one looks at recent history (pesticide poisoning), it is apparent that the government has failed to tackle this issue so far.
“There are several fly-by-night operators who are selling fake BT seeds in the state and in several areas even unapproved herbicide tolerant hybrid seeds not yet approved for cultivation are easily available,” said an agriculture officer from Yavatmal. “Guiding farmers through the cotton plantation cycle is no easy task. For starters, convincing them to buy pheromone traps or ensuring they use insecticides at a certain time and do not over spray, making them plant non-BT seeds on refuge areas will require micro management and monitoring and it cannot be done just through agriculture officers.” SB Varade, irrigation and farm expert and former deputy director of Walmi (Water and Land Management Institute), Aurangabad, said unless there is an integrated plan for all the activities related to the cotton crop – involving agriculture department, agriculture universities and industrial stakeholders – to bring proper awareness among the farmers and ensure that the mandate is rigorously followed, it will be a difficult task to control the pest attack. “The government should think of enacting a law if necessary to make certain practices mandatory for cotton farmers,” he said. It’s not that the state has been taken by surprise by the resistance of pink bollworm to BT cotton. The agriculture commissionerate wrote to the government in August last year, saying that BT cotton had become susceptible to the pink bollworm for past two years. The technology provider, Mahyco Monsanto Biotech (India) Private Limited, had pointed this out in September 2015. In an emailed statement, MMB said, “In September 2015, the Genetic Engineering Appraisal Committee was informed of high level of tolerance to Cry2Ab protein being observed in certain populations of pink bollworm owing primarily to non-adoption of recommended insect resistance management practices.” The company statement said it had asked its sub-licensee seed companies in February 2016 and March 2017 to advice farmers of the importance of following product usage guidelines by GEAC and cotton crop management guidelines issued by Central and state agriculture institutes for proper performance of BGII.
THE BIG PICTURE
“The big picture is that with this pink bollworm threat, farmers have one more thing going against them besides non-availability of water, falling market prices, higher input costs. Whichever way you look at it, there is no easy solution for the tiller,” said a senior bureaucrat. While Maharashtra has had a successful run with BT cotton over the past decade, officials say that the trend to adopt cotton as a cash crop and often monocrop was proving to be ineffectual. “The net income in the hands of the farmer has been reducing as BT hybrid cotton is high input intensive. And, while yield of cotton has increased for cotton farmers, the hybrid variety is not considered ideal for rain-fed areas like Vidarbha. Also, farmers have given up on their sustenance crops like jowar, wheat in the bid to grow only cotton as a monocrop, exposing themselves to ruin in case of falling global market rates or a pest attack,” the official said. On the technology side, farmers are more in a corner and dependent on BGII than ever before given the government’s overall apathy, said experts. A newer BGIII technology is nowhere on the horizon given that Monsanto has withdrawn its future technologies. The company spokesperson said this was done owing to “uncertainty in business environment around respect of intellectual property rights on patented technologies and sanctity of private contracts”. On the other hand, local varieties of cotton are unlikely to provide any real alternative to BT seeds despite occasional political statements. “CICR had produced 20 types of local seeds a few years ago, but the government failed to support the research. Maharashtra needs two crore packets of 450 gram each of seeds every year. Do we have the capacity to produce such a huge quantity locally?” asked Vijay Jawandhia, another farm expert. Given the limited yield from local varieties vis-a-vis BT seeds, no farmer will be willing to switch over at this stage. Out of 42 lakh hectares of cotton sown area, more than 37 lakh hectares is BT cotton.
Source: Hindustan Times
The Adilabad District Compensation Committee on Friday fixed the compensation for every acre of cotton crop lost by farmers during the 2017 kharif season at Rs. 15,120. This applies even to the farmers who had lost the crop owing to inferior quality seeds belonging to Nath Seeds Company which were sold under the brand name of King 101. The Committee was headed by Adilabad District Agriculture Officer Asha Kumari and included scientists, officials, representative of Nath Seeds and farmers’ representatives. They arrived at the rate of compensation based on the quantum of loss suffered by farmers. B. Goverdhan Reddy, a farmer cell leader affiliated to TRS and was part of the meeting, said against the district average yield of 5.5 quintals of cotton crop per acre, the farmers who had cultivated King 101 seeds got a yield of only 2 quintals per acre. The loss of crop was estimated to have taken place in 8,500 acres, mainly in the Adilabad, Jainad, Bela, Tamsi and Talamadugu mandals. The company would have to shell out over Rs. 12 crore as compensation to farmers. The Committee decided that if the company fails to pay the compensation within a period of 30 days, it would attract penal action.
Source: The Hindu
khadi-denim Called the ‘route box’ contains glass vials filled with bits of handspun yarn, indigo, tags, a booklet on Khadi Denim and a notebook made from recycled waste, (Right) Handcrafted piece signed by 11.11 employee
Heena Khandelwal
It’s simply called, ‘Khadi Denim’, but Delhi-based label 11.11’s regular blue jeans is a special garment. Made from an indigenous variety of cotton called kala cotton that is cultivated pesticide-free in Kutch, it is hand-spun in Saurashtra (Gujarat) and sent to Auroville. (Puducherry) for dyeing using natural Indigo, before going back to Saurashtra where it is woven, and finally to Delhi, where it is stitched by hand. Designers Shani Himanshu and Mia Morikawa and co-founders of the label, launched Khadi Denim five years ago. “Kala cotton doesn’t need irrigation or cultivation and relies entirely on rainfall. It is sowed after the first rainfall and takes two more rainfalls to grow. The crop yields short-staple yarn, which absorbs colour beautifully and is transformed during dyeing,” says 38-year-old Himanshu. Short staple cotton yields an uneven yarn, one of the reasons for its decline in the mainstream market. The yarn, however, is strong, coarse and stretchable. “As time passes, the hand-woven textile made of this yarn takes the shape of the body and becomes like a second skin. As the fabric fades, it softens the hand stitches, which becomes clear revealing its handmade character,” adds Himanshu. Khadi Denim makes its buttons from recycled brass coins of 1, 5 and 20 paisa denomination. To ensure the end product is able to tell its story, it’s packed in a ‘route box’ which contains several glass vials filled with bits of hand-spun yarn, indigo, plus tags, a booklet on Khadi Denim and a notebook made from recycled waste generated during the manufacturing process. Khadi Denim isn’t cheap — about `30,000, without the route box. Himanshu says that’s not expensive, given that it’s 100 per cent handmade. Why is the same question not asked of industrial products which should cost less since they are mass manufactured, he asks. “We invest several months to create a product whereas, in mass production industry, the maximum time involved is 60 days. In our work, everything is done manually by artisans across regions and we pay them fairly. We also sell only a limited number; so there is an attached cost at the retailer’s end. The price is not that much compared to its value,” says Himanshu. 11.11 is also involved at every stage of production from seed to stitch. The label focuses on training people to hand-stitch a complete product as opposed to garment factories where several “unskilled” workers work on different parts of a garment – some who only do the embroidery and others who do the finishing. “We train people for three-four months to construct a garment and it takes about 7-10 days to stitch it. The beauty of the process is that they acquire the knowledge of making the garment,” says Himanshu, citing the example of Italian Sartos, meaning tailors or dressmakers. “An Italian Sarto will hand-construct the whole jacket before stitching it. This is the purest way of doing it,” he adds. Besides, the person who stitches the Khadi Denim also signs and dates it. The label has also worked on traceability, with a unique code for each garment. “The code allows it to be traced backward — when was it cut, who stitched it, where did the fabric come from, the measurements, etc. At present, you can access this information by asking us over email but in future, we plan to put all the information online.” But what about carbon footprint? Surely Khadi Denim’s multi-centre production must take away from its green credentials? Himanshu has a counter argument. “We send yarn to Auroville because we don’t have a choice. The facility is not there in Gujarat and we don’t want our yarn to be dyed chemically. We rely on public transport. The plane would anyway fly to Puducherry, Gujarat or Delhi, it isn’t as if I am sending the yarn by private cargo.”
Source: DNA
Meet Avneet Adwani, the brains behind the brand NAAV. She is warm, kind hearted soul who aims at balancing both personal as well as professional life that we all know is a feat easier said than done. “There’s nothing I enjoy more than working in my office with my creative team, discovering new possibilities of promoting a sustainable future, and post that going back home and spending quality time with my family. I’ve always felt a responsibility towards society, and in every action of mine, both personal and professional, I aim in giving back to the society, a sentiment I feel is reflected in my brand, NAAV. In fact, its name itself, is formed by an amalgamation of the names of my husband and mine - Navin and Avneet.” What does NAAV as a brand offer- We offer unique and timeless style that goes hand in hand with an individual’s personality and social attributes. Every garment we make, takes a significant amount of natural resources along with the hours of hard-work by artisans. Hence, we believe it is our duty to carry on each and every garment, not for a few days, but for years to come. We offer a wide range of saris, suits, tunics, jackets etc. But personally, I believe to truly capture the spirit of NAAV, we do not like to think of trends but create outfits which can be worn again and again. What inspires your collection- As a brand, we prefer folk embroideries, natural fabrics such as silk, linens or cotton. A bohemian, detailed, hand-made prints. Beautiful block prints over classy yet sophisticated silhouettes. Our collection always stands to revive dyeing art or craft from India and the world. Ultimately, the main aim is to showcase our sources of inspiration, in the form of a well fitted, quality product.
What would you say is the USP of your brand-
Brand sensibility itself is our USP, our collections are creative, yet balanced and aim at lasting for a lifetime. Every garment reflects a cultural fusion; it is this diffusion of cultures that takes our brand to the global arena. As all our outfits are universal in nature, I believe they appeal to all age groups. We derive our strength from all the rural, local women artisans. We believe it is their passion and skill that fill colour in our creation. To sum it all up, simple, yet sustainable fashion is our USP.
Fashion Advice-
Wear something comfortable, classy and honest to your personality, as opposed to spending a lot. Clothes must be cherished, not wasted. The sheer time, energy and skill that goes behind the creation of each garment is tremendous. One must spend wisely and sustainably.
Source: The Hans India
Lifts ban on direct cargo flights to London
British High Commissioner in Bangladesh Alison Blake handing over the certificate on withdrawal of cargo ban to Civil Aviation Minister AKM Shahjahan Kamal. Photo: Rashidul Hasan. The UK government has fully withdrawn the two-year-long ban on direct cargo flights from Dhaka to London, as the British government is satisfied with the improvement of safety and security measures at the Hazrat Shahjalal International Airport (HSIA). AKM Shahjahan Kamal, civil aviation and tourism minister, and Alison Blake, the British high commissioner in Bangladesh, announced the decision at a press conference at the country's premier airport in Dhaka yesterday. The decision took effect immediately, meaning all cargo flights from Dhaka can now fly directly to the UK. But the UK transport department recommended that the Civil Aviation Authority of Bangladesh recruit joint security experts, follow international standards and do periodic safety assessments. Bangladesh will have to complete three joint safety assessments in a year for uninterrupted flights between Dhaka and London. However, for the continuation of cargo flights into any European Union country from a third country airport, the national flag carrier must obtain the mandatory certificate called ACC3. AM Mosaddique Ahmed, managing director of Biman, told The Daily Star that an independent auditor would work from today to this end and it might take 15 to 20 days to get the certificate. “I am delighted to confirm that the temporary suspension on direct air cargo between Bangladesh and the UK has been lifted, following significant progress made in meeting a number of important security conditions,” Blake said in a statement. Replying to a question at the press conference, she said the ban, placed in March 2016, was not a political decision, rather a technical one. “We will keep monitoring the security system of HSIA as it is a continued work to keep aviation safe so that our people and the cargo continue to flow,” Blake said. The civil aviation minister said he expected Germany, Australia and the EU would also lift the ban, following the UK's decision. Germany's Lufthansa, which had direct flight from Dhaka to Germany, imposed the ban on direct cargo in June 2016. Australia was the first country to impose the ban in December 2015, while the European Union did so in June last year. Exporters have hailed the decision as it would save them money and time. Nurul Amin, director of Bangladesh Freight Forwarders Association, said, “We welcome the decision. We hope that the civil aviation authorities and Biman will maintain the standards so that no country can impose such a ban.” Every year, more than 1,200 tonnes of cargos, mainly garments, vegetables and fruits, are carried by air from Bangladesh to the UK, he said. “During the ban, airliners charged an additional 10 cents on an average for carrying each kilogram of goods in rescreening cost in a third country. It also required an additional three days to export goods to the UK,” he added. The decision to lift the ban will definitely bring good results as the UK is the third largest garment export destination for Bangladesh, said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Biman has four flights from Dhaka to London every week, each carrying 20 tonnes of cargos, he said, adding that more than 70 percent of the total volume is garment items. Other airlines also carry goods to London, but he could not give any figure. Biman lost $30,000 in each flight due to the ban, said Kazi Wahidul Alam, an aviation expert. Following the decision by the UK, other countries such as Germany and Australia may also lift the ban, he added. Following the UK's ban, Bangladesh recruited British company Redline for screening of the export goods and training the manpower in the airport safety and security. Bangladesh installed the required number of Explosive Detection System and Explosive Detection Dog for cargo scanning to improve the safety and security. Before the lifting of the ban, an independent team from the EU assessed the safety and security measures, and Bangladesh passed the validation test in November last year.
Source: The Daily Star
The garment industry’s gridlock due to a crackdown on illegal trucks continued through the Chinese New Year, potentially prolonging a crisis that members of garment and trucking associations have said threatens their industries. An open letter released on Wednesday by the Garment Manufacturer’s Association in Cambodia (GMAC) claimed the crackdown had affected more than half of the trucks used to transport goods to and from garment factories, which form the backbone of Cambodia’s export economy. Siv Chanthy, president of the Cambodia Freight Forwarders Association, had a meeting with Transportation Minister Sun Chanthol on Wednesday to find a solution to the problems, but he said yesterday the issue was not yet resolved. “Until now, I have not heard any solutions from the ministry yet,” Chanthy said yesterday, adding that many factories had not needed trucks for the past few days due to Chinese New Year, which is not a public holiday but is widely celebrated in Cambodia. “We are looking to see what the impact will be on transportation companies after this holiday, and will estimate the cost of the impact,” he said. Kaing Monika, deputy secretary-general of GMAC, said on Wednesday that issues related to the crackdown would have significant negative effects on the garment industry if they were not resolved “within this week”. Monika could not be reached yesterday.
Source: The Phnom Penh Post
More than 700 workers from three factories in Phnom Penh’s Por Senchey district yesterday received part of their missing wages after the owner of the factories disappeared. The three factories, Yu Fa Garment Industry, Yu Da Garment Industry and S.R.E Garment Company, were owned by a single Chinese businessman who absconded earlier this month, leading to protest by the workers over their missing January wages. Son Prak, a deputy chief of the Worker Union Federation, said that officials from the Ministry of Labour, union leaders and workers successfully sold assets from two of the factories, earning enough to pay 65 percent of each worker’s missing wages. He said that some workers got $155 and others $200. “The workers got 65 percent of their missing wages,” he said. “But they did not get any severance pay or benefits because the machines sold off could not cover the costs.” Lok Thy, a worker at Yu Da, said some of the staff were happy to at least get 65 percent, while others remained upset not to get their full dues. “Most of the workers did not favour the deal, but still accepted the pay because the owner disappeared,” he said. Tong Tek, chief of administration for S.R.E factory, said workers were within their rights to seize the machines and sell them. “After negotiating many times, the workers decided to sell the factories’ property, get some money and find another job,” he said.
Source: Khmer Times
LAHORE: All associations of textile value chain in Punjab have appealed the government to remove over Rs3.42/unit additional surcharge on power consumption; implement uniform gas tariff across the country, as is the case in electricity and release all refunds, a statement said on Saturday. Members from different textile associations raised these demands at a joint press conference, it added. These associations included All Pakistan Textile Mills Association, All Pakistan Textile Processors Association, and All Pakistan Textile Exporters Association from the basic textile sector, and representatives of two major value-added sectors, Pakistan Hosiery Manufacturers Association and Pakistan Readymade Garments Manufacturers and Exporters Association.
Source: The News International
The U.S has made a fresh call for the East African Community not to phase out imported used clothes and leather products locally known as “Chagua”, but Rwanda says the U.S should not shift goals on what was agreed by the parties in 2015 when the African Growth and Opportunity Act (AGOA), pact was renewed.
Genesis
In 2015, the East African Community (EAC) Heads of State adopted a three-year gradual process to phase out the importation of second-hand clothes and footwear to promote textile, apparel and leather industries in the region and instead focus on evolving domestic industries. This move, was deemed to make EAC textile and leather factories self-sufficient to serve the local and international markets, including AGOA market which had kept the window wide open for African exports into the American market same year. Despite Kenya rescinding on the decision at a later stage, Rwanda, Uganda and Tanzania have remained “solid” on their stance to phase-out second hand clothing. The government of Rwanda deliberated on a strategy to develop the textiles, apparel and leather industrial sectors and a blueprint was consequently designed on how to implement such a strategy. A draft 2017-2019 strategy for the transformation of textiles, apparel and leather industrial sectors aim to increase the quality and quantity of textile, apparel and leather for both local and foreign markets. Rwanda’s strategy estimated that, if everything is implemented, this could create 25,655 jobs, increase exports to $ 43 million and decrease imports to $ 33 million by 2019 (from $124 million in 2015). The impact on trade balance will result in savings of $ 76 million over the 3-years period. As a result, in 2016 Rwanda increased taxes on used clothes from $0.2 to $2.5 per kilogramme, while taxes on used shoes increased from $0.2 to $3 per kilogramme. In the 2017/18 Budget estimates, the Government also eased taxes on inputs under the Made-in-Rwanda initiative, which is expected to facilitate growth of the local textile industry. However, during a teleconference last week, Harry Sullivan, the U.S. Bureau of African Affairs Acting Director for Economic and Regional Affairs told The New Times that the regional move to reduce on the importation of second-hand textile and leather products from the U.S. and other countries “will not” help the region achieve its primary target of rebuilding local textile sector—which had started booming in the early 1980 and 90s. “While we understand the East African Community’s desire to build a domestic textile sector, we firmly believe that the EAC’s ban on imports of used clothing will not help achieve that,” Sullivan said. “First, it’s job-destroying. The proposed ban will hurt an estimated 300 thousand men and women that work in the used clothing business all across the East African Community and it will also negatively impact at least 40,000 U.S. jobs in the used clothing sector in the United States,” he added. On the proposed phase-out of second-hand clothes, Sullivan argues that the move would “limit” EAC citizens of variety in choice. He questions whether the consumers of used clothing will be able to afford the new apparel being made in the EAC market. He added that rather than banning imported used clothing, the most effective domestic growth strategy for the local fashion and apparel industry would be to build its brands and markets for the growing middle class, which prefers to buy new apparel in shopping malls and other places anyway. EAC Heads of State are expected to meet this week in Kampala to adopt what would-be the final resolution on AGOA from which the U.S. will base on to make the next move, according to Sullivan. He says that what the U.S expects from leaders of Rwanda, Tanzania, and Uganda is to do two things. “One is to decrease their tariffs to their pre-2016 levels, and the second thing we’re asking is to commit that aside from health or sanitary reasons, not to phase out the import of used clothing.” “So we’ve communicated that, we believe very effectively, to all levels of the three governments. The trade ministers met last Friday; I don’t have a read-out on what their discussions were. I believe the result of that meeting will determine how we proceed.” The move to phase-out the importation second hand clothing has put Rwanda, Uganda and Tanzania’s eligibility to trade with the U.S. under review. The review could see the three countries lose duty-free access to the American market under the AGOA, despite U.S. being only the third highest exporter of Second hand clothing to Rwanda in 2017, according to Rwanda Revenue Authority. China, Belgium come top of the U.S in the first and second positions, respectively. However, in an interview, Vincent Munyeshyaka, Trade and Industry Minister maintained that despite the consequences of being locked out of AGOA, Rwanda has to make a choice between continued importation of used clothes and developing the local textile and shoe industries and is keen on the latter. “Rwanda’s stand has not changed,” Munyeshyaka said, adding, “we want to build domestic textile industry, we want to promote Made-in-Rwanda and close the trade deficit gap by reducing importation of goods which we can locally produce such as clothes and shoes.” Under AGOA, US waiver tariffs applies to selected 6,000 African products, including textile and leather. The U.S says it’s up to the African businesses to take advantage of that, to research the market in the United States, to find out what American consumer preferences are in whatever business they are involved in, and then to build businesses from there, according to Sullivan Robert Opirah, Head of Trade and Investment department at the ministry of Trade said the U.S’ current stand contradicts what AGOA stands for let alone what was agreed upon in 2015 when the second AGOA legislation was passed in Washington. “In 2015 everyone left Washington with a common AGOA response strategy that they would take advantage of the facilitation to grow domestic industries and serve that market. In facilitating the growth of local textile and shoe industries we are doing exactly what was agreed on and they (U.S) are saying ‘no you can’t. We will keep serving you with our second-hand clothes. You can’t grow you industries’. It beats my understanding,” Opirah said. According to Opirah, EAC was looking at the AGOA as one way that would facilitate the growth of a local sufficient textile and leather industry instead of refraining it. “We are not banning imported second-hand clothing, we are just reducing on the importation as we develop our own textile and shoe industries and we thought the AGOA window would be another way to facilitate our growth. Frankly speaking, imports are really dwindling our reserves. Any opportunity that cuts down on import bills we are happy to consider it,” he said. Since 2016, Rwanda has seen significant growth in textile and shoes industry. Currently 11 factories dealing in textile and apparel plus seven dealing in shoe sector are operational in Rwanda, “yet we didn’t have more than 3 in total of these factories before then, Opirah added. According to Opirah, Rwanda had a “painful” trade deficit of about a billion dollars in 2016. During the year 2016, Rwanda exported goods worth $1.2 million through AGOA window while commodities worth $771,000 were exported through Generalized System of Preferences (GSP) to the U.S. In total, commodities totaling to $25 million were exported from Rwanda to the U.S. On the other hand Rwanda imported an overwhelming $73 million worth of goods from the U.S in the same year 2016, most of them being capital goods and medicines, according to the ministry of Trade. Besides reducing trade deficit, Opirah is optimistic that the growth of local textile and shoe-making industries and the entire value-chain will create more jobs than those occupied by second-hand dealers in the country. Opirah, however, is confident that there will be negotiations between the U.S and the three EAC member states to find “a common ground on which everyone is to win.” Meanwhile, Olivier Nduhungirehe, the State Minister for Foreign Affairs, Cooperation and East African Community also affirmed the EAC Heads of State stand on used clothes remains. He added that the U.S was offered a number of options to consider as the EAC implements its plans. “We are not banning second-hand clothes. Our offers to the U.S were to look into the rule of origin for the used clothing (because most of them are not actually made in the U.S), ensure maximum hygiene precautions, not import underwear, leggings and similar outfits ,” Nduhungirehe said.
Source: The New Times
The Brazilian office of C&A Foundation, Instituto C&A, has invited proposals for innovative initiatives to use information and data to bring about systematic changes in working conditions in the country’s fashion industry. As consumers become increasingly aware of the conditions in which fashion is made, the demands for greater transparency have increased. A growing number of brands and industry groups have begun to publicly disclose information such as the names and locations of suppliers they work with, working conditions, safety information and more. “We are looking for innovative ways to improve working conditions in the fashion industry in Brazil. Transparency can contribute a great deal by disseminating reliable and publicly accessible information and by encouraging accountability, making working conditions a priority in the sector,” says Giuliana Ortega, executive director of the Brazilian C&A Foundation, Instituto C&A. Transparency will only contribute to improving working conditions when publicly disclosed information is used to encourage accountability. With access to relevant data and information, stakeholders at each stage of the value chain can prioritise choices that will improve conditions for garment workers. The initial budget available for this call for proposals is approximately $ 400,000 – a maximum of about $ 180,000 for each proposal. Up to three proposals will be chosen. The initiatives presented should develop or implement projects that disseminate public, accurate and credible sources of information and data on issues that directly or indirectly affect working conditions; disseminate information or data strategically, helping key players make decisions and implement actions that promote positive changes in practices, policies and behaviours that affect working conditions; and bring about changes that have the potential to be systemic, impacting the industry rather than just impacting a factor or brand (unless it is proven that a change to a single factory or brand would have such an impact that the entire industry would follow suit, leading to a structural change). Proposals can come from international organisations, but the initiatives must work in the Brazilian fashion industry. The grant will be managed by the foundation's Brazilian office.
Source: Fibre2Fashion
Burberry is collaborating with Farfetch, the leading technology platform for the fashion industry, to strengthen its e-commerce presence. For the first time, technology developed by Burberry has been integrated to the Farfetch API – the platform’s operating system - allowing the brand’s entire global inventory to be available through an e-commerce platform. This integration will expand Burberry’s distribution globally, giving the brand access to over 150 countries. The global partnership will see Burberry working closely with Farfetch on how the brand is presented on the Farfetch marketplace, ensuring the images and narrative provide a consistent and curated digital experience. Daniel Heaf, SVP Digital Commerce and Digital Marketing at Burberry, said: “We are thrilled about our partnership with Farfetch. Burberry has led the way in digital and this is a natural and significant evolution for us as we seek to reach a young fashion-conscious consumer. We want the digital expression of our brand to represent the very best in brand and product storytelling whether on our own platforms or through our partners, and Farfetch customers globally can now access the full Burberry offer.” Giorgio Belloli, chief commercial officer at Farfetch, said: “We’re so pleased to welcome Burberry to Farfetch as a direct brand partner. Our customers around the world love the brand, and working together means we can make sure lovers of fashion can have access to the greatest selection of Burberry products wherever they are in the world.” The technology underpinning the partnership with Farfetch will also enable Burberry to deepen its relationships with other existing and new e-commerce partners. The new format grants partners previously unavailable levels of depth, flexibility and transparency of Burberry’s inventory, and allows Burberry to reach an expanded cohort of customers. (SV)
Source: Fibre2Fashion
Islamabad : The world’s largest apparel fabrics, accessories fair & China’s International trade fair for fibers and yarns will begin next month in Shanghai, China. 37 Pakistani companies along with Trade Development Authority of Pakistan Pavilion participating in Intertextile Shanghai Apparel Fabrics & Yarn Expo Spring 2018. Intertextile Shanghai Apparel Fabric, the apparel fabrics and accessories’ industry will attract thousands of apparel fabrics’ suppliers as well as over 60,000 of garment manufacturers & distributors from around the globe every year.The fair will take place from 14 – 16 March, 2018 in Shanghai, China co-located with Yarn Expo Spring and Intertextile Shanghai Home Spring Edition. Beyond Denim, a denim display zone will also feature to provide trend inspiration to the industry. In 2017 Spring Edition, there were 3,341 exhibitors from 26 countries and 71,450 visitors from 103 countries & regions who participated in ITSA Though, Yarn Expo had 393 exhibitors from 12 countries and 22,579 visitors from 94 countries & regions.
However, 16 exhibitors from Pakistan participated.
In ITSA & Yarn Expo Spring 2018 Edition, 37 companies will participate in total. Among them, 21 Pakistani companies are from Yarn, 6 from Fabric and 10 are from Denim. Direct Exhibitors from Pakistan participating in ITSA & Yarn Expo Fabric: Kohinoor Mills, Mahmood Textile, Sapphire Textile, Kamal Limited, Anam Weaving & Hunbul Tex in Hall 5.2 Denim: Crescent Bahuman, Master Textile, Sapphire Diamond & US Denim in Hall 6.2. Yarn Expo: Abtex International, A.L. Textile, Blinks International, Ever Green Textile, Fazal Cloth, Fabcot International, Global Textile, Hantex Spinning, Indus Dyeing, I & N International, Hussain Mills, Nadeem Textile, Nagina Cotton, Nisar Spinning, Opulent International, Reliance Weaving, Salman Agencies, Sardar Corporation, Umar Spinning, World Textile Trading, Xiamen Naseem Trade in Hall 5.1
Exhibitors participating through TDAP in ITSA
Crescent Bahuman, Mekotex, Pak Denim, Rantex, Siddiqsons & SM Denim (SM Traders) will present Denim products in Hall 6.2. The next ITSA & Yarn Expo Autumn Edition will be held from 27 – 29 September, 2018. Another Apparel/Fabric fair Texworld/Apparel Sourcing USA will be held from 23 – 25 July, 2018. Texworld/Apparel Sourcing Paris will be held from 17 – 20 September, 2018 and Africa Sourcing & Fashion Week will be held from 1 – 4 October, 2018.
Source: Pakistan Observer
