The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 26 FEB, 2018

NATIONAL

INTERNATIONAL

Govt schemes promoting textiles exports: Textiles Secretary

Textiles Ministry Secretary Anant Kumar Singh said various projects under the textiles ministry are promoting exports from the sector. Speaking at the inauguration of the 45th edition of IHGF-Delhi Fair has kicked off on Friday at India Expo Centre & Mart, Greater Noida, Anant Kumar Singh said that the textile ministry of Textiles has implemented various projects in providing assistance to the craft persons and exporters. The growth in exports ultimately results in generation of employment in this decentralized sector of economy and improving living standards of poor craft-persons engaged in production of handicrafts, he added. Singh also appreciated the efforts of the Export Promotion Council for Handicrafts for creating such a marketing platform in the form of IHGF-Delhi fair for the handicrafts sector. The official also shared his experience during his visit to the recently held Ambiente-2018 in Frankfurt and said that products displayed by more than 400 handicrafts exporters were no less than the best in the world and further said that Messe Frankfurt has declared India as a partner country for Ambiente -2019.

Source: SME Times

Back to top

70% IGST refund stuck due to flawed claims filed by exporters: CBEC

NEW DELHI: As about 70 per cent of GST refunds stuck due to flawed information, the CBEC has asked exporters to amend the details in the final returns of subsequent month to enable the department to process the refund claims by March. The Central Board of Excise and Customs (CBEC) has sanctioned Rs 4,000 crore worth refunds to exporters in 4 months since October. Still about Rs 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs. "The analysis of data indicates that only about 32 per cent records of GSTR 1 / Table 6A have been transmitted from GSTN to Customs. In other words, a majority (about 70 per cent) of refund claims are held up either due to insufficient information or lack of due diligence on the part of exporter while filing GST returns," the CBEC said in a communication to Principal Commissioners. "The analysis of data indicates that only about 32 per cent records of GSTR 1 / Table 6A have been transmitted from GSTN to Customs. In other words, a majority (about 70 per cent) of refund claims are held up either due to insufficient information or lack of due diligence on the part of exporter while filing GST returns," the CBEC said in a communication to Principal Commissioners. The analysis of claims data post October 2017 indicate that while the quantum of error is decreasing, a large number of exporters are still filing incomplete GSTR 1 or Table 6A, where shipping bill number or date or port code are missing. "These records are not processed / forwarded to Customs by GSTN. E-mails have been sent to exporters asking them to correct their records through amendment process of GSTR 1 i e through Table 9 of GSTR 1 of the following month," the CBEC said.  The CBEC had in October 2017 started refunds for exporters of goods who have paid Integrated GST (IGST) and have claimed refund based on shipping bill by filling up Table 6A. While for those businesses making zero rated supplies or those want to claim input credit have to fill Form RFD-01A. Analysis of GSTN data show that in a large number of cases, the refund claimed by an exporter is higher than the GST paid by him and consequently, the information filed by exporters is not forwarded to Customs by GSTN. "In these cases also, e-mails have been sent to exporters asking them to correct their records through amendment process of GSTR 1 i e through Table 9 of GSTR 1 of the following month," the CBEC said. The apex indirect tax authority also said where exporters have already filed information through Table 9 of GSTR-1, the said information is being validated by GSTN. "The validated information is expected to be forwarded by GSTN to Customs by mid-March 2018 for further processing".AMRG & Associates Partner Rajat Mohan said the issue could be resolved if GST compliance structure is simplified and government programmes are designed to achieve a robust digital literacy in the long run. "IGST refund to exporters are issued in a fully automatised environment, and even a smallest mismatch in invoice number results in non-issuance of refunds. Now, government has planned to provide an alternative mechanism whereby exporters can get such errors rectified with the help of a manned interface placed at Customs department. This could address the worries of the exporters if this manned intervention is operated timely," Mohan said. The CBEC listed out the major errors that are committed by the exporters in claiming refunds. These are mismatch of invoice number, taxable value and IGST paid in the Shipping Bill vis-a-vis the same details mentioned in GSTR 1 / Table 6A, incorrect shipping bill numbers in GSTR-1, GSTIN declared in the shipping bill does not match with the GSTIN used to file the corresponding GST returns. Besides, there are instances of non-filing or incorrect filing of electronic Export General Manifest (EGM). "Information is being made available to exporters on a real-time basis with regard to the errors status on ICEGATE website for registered users. Details of refund sanctioned is being sent through SMS on registered mobile phones," the CBEC noted.

Source: Business Standard

Back to top

‘GST, note ban to blame for textile units’ collapse’

Congress MP Shashi Tharoor said the Centre’s move to implement demonetisation and the poor implementation of GST led to the collapse of the textile industry in Tirupur. He was pointing out to a report prepared by All India Professionals Congress, which showed job losses and closing down of units in the State textile hub. Mr. Tharoor was speaking on ‘India in the 21st Century’, organised by The South India Chamber of Commerce and Industry. In denial mode “At a time when Vietnam and Bangladesh are growing their textile exports, we have a key hub that has collapsed,” Mr. Tharoor said, replying to a query. He pointed out that the ruling government had a lot to answer for, but continued to remain in denial mode. Mr. Tharoor said it was important for young people to be engaged in politics and political debates. His party was against the privatisation of public sector banks, an issue which has been in focus post the Punjab National Bank scam.

Source: The Hindu

High time for Indian apparel sector to tap market: NITI Aayog CEO

New Delhi: NITI Aayog Chief Executive Officer (CEO) Amitabh Kant on Thursday said with China moving out of the apparel sector it was the best opportunity for India to tap the apparel market. “China has started moving out of the apparel sector and there is a huge opportunity for India,” Mr Kant said while speaking at the 40th foundation day functions of the Apparel Export Promotion Council (AEPC) at Gurugram. He said the wages in China are 2-3 times higher than India and given the aging population of China, the cost of apparel manufacturing will continue to rise there. He said, in such a scenario, the global suppliers will start looking at other avenues for sourcing. Countries like Bangladesh and Vietnam are having preferential access in European Markets and hence it is extremely important that India get the FTA with Europe ratified at the earliest to move into global markets. Admitting that profit margin of the industry has been reduced post GST roll out, Mr Kant said the government was at ways through which it could be brought at par with the rates prevalent in the previous regime. "For the benefit of the Industry, central and state levies should be refunded and Government will work with the Industry to resolve this issue,” he said. He also said that at the immediate phase to create positive signs it is important to resolve the issues like blocked taxes and refund of GST, and exchange rate related concerns to bring back the apparel export and manufacturing sector in a growth path from consistent decline trends.

Source: UNI

Back to top

Textile mills prefer U.S. cotton  imports set to rise

Cotton imports this season might surpass the official estimate of 17 lakh bales, as textile mills are increasingly buying cotton from the U.S. in larger quantities, according to trade and industry sources here. “Large quantity of cotton is available at discounted price from the U.S. for the current season — the reason why textile mills are booking cotton from the U.S.,” said J. Thulasidharan, president of the Indian Cotton Federation. Though imported cotton is of slightly lower micronaire (one of the quality parameters of cotton) compared with the widely used domestic cotton (Shankar 6 variety), mills were opting for U.S. cotton as these were free of contamination and realisation would be better. Also, the units could get a 4 to 5% cost advantage, the sources added. Total imports during the last cotton season (2016-2017) was 30.94 lakh bales and the previous year it was 22.79 lakh bales. The total imports this season (October 2017 to September 2018) might cross 20 lakh bales, said Nishanth Asher, a partner with cotton trading firm RS Asher and Company. Mills in Andhra Pradesh, Gujarat, and Tamil Nadu are buying from the U.S. The total import this season is already more than 10 lakh bales and majority stock is from U.S., he said.

‘Domestic prices decide’

However, T.K. Radhakrishnan, president of Coimbatore Cotton Association, said the total imports may not increase much. “It depends on how Indian cotton prices move in the next two months,” he said. Domestic cotton production is estimated to be high this cotton season at 377 lakh bales. The price of Shankar 6 variety was Rs. 39,800 a candy on Friday. Mr. Thulasidharan said cotton arrivals had picked up in the domestic market by nearly 1.5 lakh bales a day. The prices might not decline or increase much this year. Since there was surplus production globally, cotton export from India this season was also not high, he said.

Source: The Hindu

Back to top

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers. First, a 5 per cent levy in goods and services tax (GST) and the subsequent rise in cotton prices after the Budget depleted their cash reserves. This had come even as the textiles industry was recovering very slowly from the demonetisation effects of 2016. But now, with the new e-way bill system on its way, businessmen of this Gujarat city apprehend that the situation might still worsen with newer problems surfacing in the days to come. E-ways bill will have to be mandatorily produced by manufacturers and exporters transporting their goods that exceed a value of Rs 50,000 and traverse a distance of more than 10 km. Gujarat, along with Maharashtra and West Bengal, would implement the e-way bill system in a couple of months even though other states are to come within its ambit. Surat-based Mahamantra Textile Mills proprietor Ashok Jain said, “Two years in a row, and we are still feeling the aftershocks of demonetisation, GST implementation and surge in cotton prices. If the e-way bill is forced upon us in the coming months, it would deal a heavy blow to the entire textiles business community—from trader to retailer to manufacturer.”

Cash crunch to worsen

Not a single day has passed without the industry trying to counter roadblocks caused by these problems. “We suffered huge losses, with our businesses cut nearly to half and very few buyers visiting us for our traditional home furnishing fabrics and accessories. Sales have dropped by 50 per cent, and most of our payments have been delayed by wholesalers,” Jain pointed out. Some felt that the implementation of the e-way bill system would not be a boon for textiles businessmen, but instead dent in their earnings in the long-run. Jain said, “The Union government should act immediately and make a few amendments so that manufacturers and suppliers like us do not have to bear the brunt as far as levying e-bill charges for small consignments of stocks is concerned. Besides, steps need to be taken in transportation of goods locally to end-users.” The concern of another Surat-based manufacturer Sanjay Khaitan, proprietor of Ajmera Fashion, was similar. Ajmera Fashion has established itself in the manufacturing of partywear and pochampally, ikkat sarees along with designer lehengas, kurtis and cholis since inception in 2012. “We are now faced with recession of a different kind, and it has hit every manufacturer, wholesaler and retailer associated with the textiles industry. Our sales numbers have dropped in comparison to previous years, with only a minimal daily supply of 2000-3000 saree pieces now. The impact will be severe if the Gujarat government implements the e-way bill system in the near future.” Given the backdrop of demonetisation, GST hike and cotton prices—all of which had been a dampener on the business, Khaitan said, “If this trend continues, imagine the outcome it would have on average manufacturers who have been left in the lurch. Hardly any money would be left in their hands so as to transport large consignments of goods to different states across the country.” Bhupendra Singh, senior official of Ganpati Textiles, said, “The e-way bill system will escalate matters. Huge consignments of stocks are transported to different states and there would hardly be any relief for those engaged in manufacturing of sarees, kurtis, lehenga, leggings, etc. Is it just us who have to foot the bill? The government has to protect interests of the textiles industry.”

Source: Fibre2Fashion

Back to top

Why each state of India needs an MSME university

The government, in continuation of its earlier efforts, has initiated numerous measures to encourage MSMEs in this year’s Union Budget. The Union minister for MSME has also observed that 5 crore opportunities would be created in the next one year. In fact, MSMEs contribute nearly 8% of national GDP, employing over 11 crore people in six crore enterprises, and account for 45% of manufactured output and 40% of exports of India. The Prime Minister has been making a pitch for Make-in-India and encouraging foreign manufacturers to set up units in the country. MSMEs are important for generating employment in the country, where over 10 lakh people join the workforce every month and nearly 1.5 crore every year. To accommodate such a large population joining the workforce annually, for the next few decades employment opportunities in agriculture, banking, financial services and government jobs cannot increase commensurately. Further, in view of the fact that large industry, to stay competitive, would rigorously pursue automation and artificial intelligence, the burden of job creation and absorption of increasing labour force can only be performed by MSMEs. In view of the significance of the sector, since 1948, successive governments have been making intense efforts to encourage MSMEs. The Office of Development Commissioner for MSMEs was set up in 1954 and a dedicated ministry for MSMEs was established in 1999. The Small Industries Development Bank of India (SIDBI) was established in 1990 to serve as an apex body for promotion, financing and development of MSMEs. But now, given the demographic pressure, to create an entrepreneurial environment in the country, the government will need to think out of the box. In addition to the recent initiatives, there are a few innovative things that the government can consider, like setting up state-level universities dedicated to entrepreneurship and MSMEs with an outreach through MSME clinics.

A dedicated higher educational institution or a university

To boost employment generation through MSMEs, skill formation can be considered from two angles—labour and entrepreneurs. To skill labour, there are already many skilling centres and more can be established. The challenge is to create and nurture entrepreneurs. Equally important is to undertake R&D for 6,000-odd goods that MSMEs produce. In India, illustratively, each state has a unique or characteristic good, like Rajasthani razai, Punjabi jutti, Kolhapuri chappal, etc, and focused research on each from the viewpoint of production, supply chain, innovation and quality would be useful. Therefore, there is a need to have a network of dedicated institutions, familiar with local conditions, on the pattern of agricultural universities, in every state of India. A dedicated Entrepreneurship and MSME University (EMU) would need to combine academic teaching faculty with practitioners to nurture entrepreneurship. The objective should be to produce self-confident entrepreneurs, and an army of trainers to create an ecosystem for entrepreneurship to not only take roots, but also flourish. The emphasis in such an EMU would be on teaching entrepreneurship with a focus on psychology and leadership, while also teaching traditional subjects like sociology, accounting, HR, labour laws, operations management, marketing, business finance, innovation, strategy, communication, government and banking policies, planning, and macroeconomic analysis. The teaching of entrepreneurship, which is significantly different from management courses, cannot be only a classroom phenomenon, but a practical hands-on training, simultaneously, in existing enterprises, preferably MSMEs. Therefore, it would be a different model from management training and more comparable to the style of teaching in agricultural universities. R&D is important for production of specific goods, and most MSMEs do not have resources to undertake research on their specific products. Historically, in the absence of R&D, traditional products of MSMEs are competed out from the market because large firms and foreign companies with extensive research are able to constantly innovate, improve quality and lower costs.

Advantages of such universities

There are many things the government can do through this state-wise dedicated EMU. As in agriculture, state-wise EMU would communicate in local language and, if possible, local entrepreneurs should be encouraged to share their experience and mentor local budding entrepreneurs. Further, sick MSMEs could get expert advice from faculty of EMU, which is familiar with local circumstances. The government could utilise the expertise in these EMUs to build financial schemes for MSMEs in consultation with banks. Most importantly, loan proposal templates could be developed in local language with collaboration of EMUs. To encourage local products, EMU could, illustratively, showcase and promote state-specific products, such as Phulkari of Punjab, bamboo works of Assam and West Bengal, and cotton weaving of Tamil Nadu, via galleries and museums, preferably free of cost to individual MSMEs. In addition, EMUs could reach entrepreneurs in every industrial cluster across the state through MSME clinics aiming to provide informed advice from experts in local languages. In India, self-reliance in food was achieved with the help of state-wise agricultural universities. Similarly, technical excellence and managerial proficiency was achieved with the help of IITs and IIMs. Now, given the need to create, develop and foster entrepreneurial environment in the country, it would be helpful to follow the time-tested route to produce and saturate the country with entrepreneurs and their trainers. The best place to train the trainers is a university where entrepreneurs and their teachers are created. In this transformative endeavour, the government could consider PPP models to set up EMUs and link them up with MSME clinics, like a hub-and-spoke model in every state.

Source: Financial Express

Back to top

India calls for changes in WTO to transform world economy

Visakhapatnam : India today called for bringing changes in Geneva-based World Trade Organisation (WTO) to transform the global economy. Commerce and Industry Minister Suresh Prabhu said that the global trade has benefitted all the nations in terms of creation of jobs and promoting economic activities. "Now the question is whether we should make WTO better or forget it. Organisations need reformation all the time and it needs to be changed with change in times," he said here at the CII?s Partnership Summit. Prabhu said the WTO was created on certain solid principles including democracy and transparency and even the smallest country has a say in the 164-member organisation. "That is something which is a very unique characteristic. Therefore, we must bring in transformation in the WTO itself to transform the world economy. To bring that transformation, we have to put constant efforts," he said. As part of such efforts, Prabhu said, India is organising a mini-ministerial meeting on March 19 and 20. India has invited representatives from several countries to discuss, debate and ?find out ways of how to move forward,? he added. "This forum is not meeting one against the other. It is not against any country in the world. This is congregation, which will be represented by all countries in the world," the minister said. The meeting, a sort of mini-ministerial, has been convened by India in the aftermath of failure of trade talks at Buenos Aires last year on account of differences among the members of the World Trade Organisation (WTO). India has invited ministers from the US, European Union, Australia, China, New Zealand and several African countries. The talks at the WTOs 11th ministerial conference collapsed after the US went back on its commitment to find a permanent solution to the public food stockholding issue, a key matter for India. In a separate session, he said after achieving ease of doing business targets, ?we should move to peace of doing business? as companies should enjoy doing the business.

Source: Economic Times

Back to top

Home textiles exporters stare at  ~300 bps fall in profitability  

MUMBAI —  Operating profit margins  of home textiles exporters is seen  falling ~300 basis points (bps)  from this fiscal following  pressure on export realisations  stemming from a shift in the  dynamics of US retail  and a  reduction in incentives after the  implementation of the Goods and  Services Tax (GST).  This fiscal  the landscape  is undergoing a sea-change.  Many brick & mortal retailers in  the US have pruned inventories  and downsized stores to offset  profitability pressures caused by  the e-tail boom. In order to  cushion the consequent fall in  utilisation levels  Indian  exporters have been enhancing  their share of the business with  US e-retailers  but at lower  realisations.  Domestic home textile  firms have had a good run since  fiscal 2012  with India’s share of  US imports of cotton bed sheets  and terry towels increasing from  34% to about 40% in fiscal 2017  because of cost competitiveness  compared with peers in China  and Pakistan.  US accounts for a third of  global home textiles market  worth US $16 billion. Almost  47% of India’s home textile  exports of $5.3 billion last fiscal  was to the US.  A d d i t i o n a l l y  competitiveness continues to be  impacted in Europe – an equally  large consumer of home textiles  as the US – with levies up to 10%  duty on Indian products  compared with free access to  Bangladesh and Pakistan firms.  Suppliers from Pakistan also  benefit from better export  incentives provided by their  government.  Domestic home textile  firms  on the other hand  have  been hit by the lowering of Duty  Drawback Rate and Rebate of  State Levies to ~2% from 7.5%  and 3.9%  respectively  following  the implementation of GST in  July 2017. However  recently  partial relief was provided  whereby incentives under the  Merchandise Exports from India  Scheme (MEIS) was increased  from 2% to 4%.  “Our study of 63 firms  (including 59 rated by CRISIL)  which account for ~70% of  India’s home textiles exports  indicates that despite relief under  MEIS this fiscal  average export  incentives as a percentage of  revenues will be lower by at least  200 bps  ” said Anuj Sethi  Senior  Director  CRISIL Ratings.  That  along with pricing  pressure  is expected to crunch  EBITDA (earnings before  interest  tax  depreciation and  amortisation)  or operating  margins to 16% starting fiscal  2018 from ~19% last fiscal.  However  demand for  Indian home textiles will  continue to grow at ~8% seen in  the recent past  helped by exports  to traditional markets and better  penetration in non-traditional  markets such as Asia  Australia  South America and Canada.  “Given the still healthy  demand  CRISIL expects the 63  firms to spend as much as Rs  3  700 crore to expand capacities  in fiscals 2018 and 2019. That  would be significant considering  that Rs 4  600 crore has already  been spent in the previous two  fiscals  ” said Rajeswari  Karthigeyan  Associate Director  CRISIL Ratings.  Debt being raised for  capacity expansion (net of  repayments) and lower EBITDA  margins are expected to result in  aggregate debt to EBITDA ratio  increasing to ~3 times in the near  term from ~2.5 times in fiscal  2017. Nevertheless credit  profiles of CRISIL rated firms  are not expected to be materially.

Source: Tecoya Trend

Back to top

Amitabh Kant bats for early ratification of India-EU FTA

NEW DELHI: NITI Aayog CEO Amitabh Kant today said it is "extremely important" for the India-EU free trade pact to be ratified at the earliest as countries like Bangladesh and Vietnam already enjoy preferential access to European markets. Kant also said the global suppliers will otherwise start looking at other avenues for sourcing as China was slowly ceding ground in the apparel space. The proposed free trade agreement has been in works for long as the two sides are yet to bridge substantial gaps on crucial issues. Addressing an event organised by apparel exporters' body AEPC India, Kant said, "Countries like Bangladesh and Vietnam are having preferential access in European markets and hence it is extremely important that we get the FTA with Europe ratified at the earliest. "As far as Indian apparel exports are concerned, India is heavily reliant on cotton and we need to see how we can move to man-made fibres which can help us to garner more global share." Kant, CEO of the government think-tank NITI Aayog, acknowledged there has been a reduction in the benefits for the industry after GST rollout. "We are looking at ways through which we could bring it at par with the rates prevalent in the previous regime. For the benefit of the industry, the central and state levies should be refunded and the government will work with the industry to resolve this issue," he said. Kant said it is important to resolve the issues like blocked taxes and refund of GST, and exchange rate related concerns to bring back the apparel export and manufacturing sector onto a growth path. He further said a huge opportunity exists for India in the global apparel space with China moving out of the sector. "China has started moving out of the apparel sector and there is a huge opportunity for India. Today the wages in China are 2-3 times that of India and given the aging population of China, the cost of apparel manufacturing will continue to rise there," Kant said. AEPC Chairman HKL Magu said as India is gearing up to move towards WTO-compatible, production-based subsidies from export-based subsidies, it becomes extremely important that the country positions itself strongly as a responsible sourcing destination. "At the UP Investor's Summit, we have signed a MoU with the UP Government to construct an apparel city in 200 acres on Yamuna Expressway. With AEPC's capability and initiatives, and continued understanding and support of the Government, India's apparel exports are sure to grow from strength to strength while providing international buyers with most superior solutions in fashion and apparel," Magu said.

Source: The Economic Times

Back to top

Jharcraft in India's Jharkhand signs MoU with Banka Silk

and Handicraft Development Corporation (Jharcraft) recently signed an agreement with Banka Silk, a private start-up in adjoining Bihar, to train the state's tussar weavers to cut and stitch silk garments as per market demands and promote the clothes in offline counters and online through platforms like Amazon, Flipkart and Myntra. State director of industries K Ravikumar and Banka Silk founder Udayan Singh signed the agreement at the Ranchi secretariat in presence of chief minister Raghubar Das, chief secretary Rajbala Verma and development commissioner Amit Khare. The chief minister promised administrative help, according to reports in east Indian press. According to Jharcraft managing director Manjunath Bhajantri, many weavers will learn tailoring and the value-addition will boost their income. Three-year-old Banka Silk aims to revive the past glory of Banka, a place in Bihar, as a silk centre, and rescue artisans from the clutches of loan sharks.

Source: Fibre2Fashion

Back to top

MP Goud to take up handloom GST issue in LS

Choutuppal: MP Bhoora Narsaiah Goud said he was trying his best to get the Goods and Service Tax (GST) on handlooms cancelled. He inaugurated a handloom work shed constructed with an estimated cost of Rs 50 lakh at Kuntalgudem of Choutuppal mandal in Yadadri district on Friday. Addressing the gathering, he claimed that with their fight in the floor of Parliament, the GST on handlooms were reduced from 18 to 5 percent. He said he, along with other MPs, would raise the issues of weavers in the next Parliament session and assured them to try his best the GST on cancelled. Weavers should develop as entrepreneurs, he said and advised them to weave clothes as per the new trends to get more orders and income. Local MLA KPrabhakar Reddy, Handlooms JD Purnachander Rao and other officials were present.

Source: The Hans India

Back to top

H&M India to enter online marketplace later this year

Swedish fashion retailer Hennes & Mauritz (H&M), which now garners around 12 per cent of global sales volume online, is planning to go online in India this year. A third-party logistics partner will handle deliveries. The company does not plan to integrate physical stores with online operations now and will not tie up with any online marketplace for selling. The company plans to launch its online store this year, H&M India country manager Janne Einola said recently, according to a news agency report. Though H&M India’s sales was around Rs 490 crore in 2016, India does not feature among the top 10 markets for the company. It is planning to open two more stores in the Mumbai metropolitan region this month, and one more in Mysore later this year, which will take its total number of stores in the country to 30. Einola said 75 per cent of its stores are in big metros, but it does plan to focus on smaller cities. (DS)

Source: Fibre2Fashion

Back to top

Collector urges weavers to brand handloom products for better returns

Madurai: Weavers should position themselves in the industry, brand their products and also try to produce as per demand, Madurai collector K Veera Raghava Rao has said. Speaking at the weaver awareness (Hastkala Sahyog Shivir) programme organised here on Friday, he said that there were numerous schemes to benefit weavers and they should utilise them by attending such programmes and interacting with concerned officials. He said that Rs1.54 crore had been given as loans to 309 farmers in 2016-2017 under the Pradhan Mantiri Mudra Yojna. With a target to disburse loans to 500 weavers in 2017-2018, so far 438 have received Rs 50,000 each amounting to Rs2.19 crore. There are a total of 4,824 weavers in the district including 1,657 society weavers and 3,167 private weavers. Ninety-five weavers were given solar powered green houses at a cost of Rs2.47 crore. There were also insurance benefits for weavers. The collector said that private weavers could also avail the 10% subsidy provided to society members for yarn and silk threats by the central government. They would have to purchase the yarn by making the payment through a specified account number and later the subsidy would be credited to their accounts, as has been done for LPG gas subsidy. Weavers showcased their products including saris, shirts, dhoties, bedspreads and towels at the venue. Assistant director for handlooms S Syed Dawood, Lead Bank manager M Irulappan among others were present

Source: The Times of India

Back to top

Handloom fair begins at Chandel

The inaugural function was attended by Lukhosei Zou, Chairman ADC Chandel, Vice Chairman Joy Lamkang, Kalun Anal Executive member ADC Chandel , Ts. Two day Handloom fair organized by the Autonomous District Council (ADC) Chandel begins today at Japhou Keithel Chandel. Kothar, CEO ADC Chandel and other executive members of the ADC as dignitaries on the dais. Speaking on the occasion Lukhosei Zou, Chairman ADC Chandel said that the two day fair is being organized to encourage the weavers of the district under the sponsorship of the Handloom and Industries Department Government of Manipur. "This kind of fair (Mela) will give opportunity to the weavers of the district to showcase their products and generate income to help their family", Zou said. Handloom products of various communities of Chandel district were showcase in the stall open for the exhibition. The ADC also extended some monetary assistance to the stall owners.

Source: IT News

Back to top

Union Textiles Secy inaugurates IHGF fair

Greater Noida : Union Textiles Secretary Anant Kumar Singh today inaugurated the 45th edition of IHGF-Delhi Fair at India Expo Centre & Mart, Greater Noida. The fair is being held from February 23-27, 2018. Export Promotion Council for Handicrafts is organising the fair. "Handicraft sector plays a significant and important role in the country's economy. It provides employment to a vast segment of craft persons in rural and semi urban areas and generates substantial foreign exchange for the country while preserving its cultural heritage. "Handicrafts have great potential as they hold the key for sustaining not only the existing set of millions of artisans spread over length and breadth of the country but also for the increasingly large number of new entrants in the craft activity." The 70 lakhs artisans from various craft clusters who are engaged in production of handicrafts are the backbone of the Handicrafts sector, he said. O P Prahladka, Chairman of EPCH, said the handicraft exports during the year 2016-17 stood at Rs 24,392.39 crore, a 13.15 per cent increase in comparison to last year. However, the exports of handicrafts during 10 months of the current financial year 2017-18 stood at Rs 19,862.19 crore. Rakesh Kumar, Executive Director – EPCH, said overseas buyers from over 103 countries, including Argentina, Austria, Belgium, Brazil, Canada, Chile, China, Denmark, France, Germany, Greece, Holland and Hong Kongwill visit the five-day extravaganza.

Source: Business World

Back to top

Grasim Industries gets green nod for Rs1,800 crore expansion project

New Delhi: Grasim Industries has received green nod for expanding the production of viscose staple fibre and captive power at Kharach unit in Bharuch, Gujarat, that would entail an investment of Rs1,800 crore, according to an official source. The company has four VSF (viscose staple fibre) plants in India, of which two are in Gujarat, one each in Kharach and Vilayat in Bharuch district. Last month, the company had received the environment clearance for expansion of Vilayat plant. Now, the company’s Birla Cellulosic unit has received the green light for expansion of its Kharach plant. In a letter issued to Grasim Industries, the union environment ministry said it has given clearance to the company’s proposal for expanding Kharach unit subject to compliance of certain conditions. The company plans to raise the production capacity of VSF from 1,27,750 tonne per annum (TPA) to 2,33,600 TPA, while that of the captive power plant from 25 MW to 45MW. According to the proposal, Birla Cellulosic will undertake the proposed expansion within the existing plant area in 242.81 hectare. The estimated project cost is Rs1,800 crore. The company wants to expand its VSF production capacity to meet the increased demand of man-made fibres in the country. The other products presently manufactured include sulphuric Acid, carbon disulphide and sodium sulphate. The Solven Spun Cellulosic Fibre unit and coal-based captive power plant are yet to be commissioned.

Source: Livemint

Back to top

Grasim Industries gets green nod for Rs1,800 crore expansion project

New Delhi: Grasim Industries has received green nod for expanding the production of viscose staple fibre and captive power at Kharach unit in Bharuch, Gujarat, that would entail an investment of Rs1,800 crore, according to an official source. The company has four VSF (viscose staple fibre) plants in India, of which two are in Gujarat, one each in Kharach and Vilayat in Bharuch district. Last month, the company had received the environment clearance for expansion of Vilayat plant. Now, the company’s Birla Cellulosic unit has received the green light for expansion of its Kharach plant. In a letter issued to Grasim Industries, the union environment ministry said it has given clearance to the company’s proposal for expanding Kharach unit subject to compliance of certain conditions. The company plans to raise the production capacity of VSF from 1,27,750 tonne per annum (TPA) to 2,33,600 TPA, while that of the captive power plant from 25 MW to 45MW. According to the proposal, Birla Cellulosic will undertake the proposed expansion within the existing plant area in 242.81 hectare. The estimated project cost is Rs1,800 crore. The company wants to expand its VSF production capacity to meet the increased demand of man-made fibres in the country. The other products presently manufactured include sulphuric Acid, carbon disulphide and sodium sulphate. The Solven Spun Cellulosic Fibre unit and coal-based captive power plant are yet to be commissioned.

Source: Livemint

Back to top

India's Raymond Group to invest Rs425 crore in Maharashtra

India’s Raymond Group recently signed agreements worth Rs 425 crore with the government of Maharashtra to set up residential and sports complexes, commercial amenities and schools in Nandgaon Peth in Amravati. As per the agreements, the state will facilitate necessary permissions, registrations, approvals, clearances and fiscal incentives. The agreements were signed during the Magnetic Maharashtra investors summit by JK Investors (Bombay) Ltd, which owns the group. The project would commence in fiscal 2018-19, according to a news agency reportThe first agreement is for a proposed investment of Rs 50 crore to set up the school project and sport complex, while the second one is of Rs 375 crore for setting up a residential complex and commercial amenities with 2,000 houses. The group recently inaugurated a new greenfield linen manufacturing facility in the new textile park in Nandgaon Peth under its subsidiary Raymond Luxury Cottons Ltd.

Source: Fibre2Fashion

Back to top

Global Textile Raw Material Price 2018-02-25

Item

Price

Unit

Fluctuation

Date

PSF

1436.44

USD/Ton

0%

2/25/2018

VSF

2304.61

USD/Ton

0%

2/25/2018

ASF

2604.53

USD/Ton

0%

2/25/2018

Polyester POY

1365.40

USD/Ton

0%

2/25/2018

Nylon FDY

3551.63

USD/Ton

0.90%

2/25/2018

40D Spandex

5761.53

USD/Ton

0%

2/25/2018

Nylon POY

2920.23

USD/Ton

0%

2/25/2018

Acrylic Top 3D

1617.96

USD/Ton

0%

2/25/2018

Polyester FDY

3772.62

USD/Ton

0%

2/25/2018

Nylon DTY

5966.73

USD/Ton

0%

2/25/2018

Viscose Long Filament

1614.02

USD/Ton

0%

2/25/2018

Polyester DTY

3314.85

USD/Ton

0%

2/25/2018

30S Spun Rayon Yarn

3014.94

USD/Ton

0%

2/25/2018

32S Polyester Yarn

2198.85

USD/Ton

0%

2/25/2018

45S T/C Yarn

3014.94

USD/Ton

0%

2/25/2018

40S Rayon Yarn

2351.97

USD/Ton

0%

2/25/2018

T/R Yarn 65/35 32S

2541.39

USD/Ton

0%

2/25/2018

45S Polyester Yarn

3141.22

USD/Ton

0%

2/25/2018

T/C Yarn 65/35 32S

2651.88

USD/Ton

0%

2/25/2018

10S Denim Fabric

1.47

USD/Meter

0%

2/25/2018

32S Twill Fabric

0.90

USD/Meter

0%

2/25/2018

40S Combed Poplin

1.26

USD/Meter

0%

2/25/2018

30S Rayon Fabric

0.70

USD/Meter

0%

2/25/2018

45S T/C Fabric

0.75

USD/Meter

0%

2/25/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15785 USD dtd. 25/2/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Back to top

Bangladesh : Export earnings from US increases

Export earnings from one of Bangladesh’s key destinations, the USA, witnessed a slight 1.66 percent growth during this first half (July-December) of the current fiscal (FY18) compared to the same period of the previous fiscal (FY17) due to the good performance of the RMG. Bangladesh exports to USA totalled $2,902.90 million in this July-December (2017-18) compared to $2,855.48 million during the corresponding period of the previous fiscal (2016-17). The amount represents 16.20 percent of the country’s total export earnings during the period. According to the statistics compiled by the Export Promotion Bureau (EPB), the major exports to the US market during this July-December period were woven garment ($1,882.86 million), knitwear ($717.38 million), home textiles ($69.55 million) and cap ($65.14 million). During the period, around 26.23 percent of the country’s total woven garment exports entered the US market, followed by knitwear 9.45 percent and home textile 14.20 percent. Despite political unrest, Bangladesh’s export earnings from the US in fiscal 2014-15 were impressive with $5.783 billion up from $5.583 billion in fiscal 2013-14. Export earnings from the USA, however, witnessed a 6.01 percent fall during last fiscal (2016-17) compared to the previous fiscal year (2015-16) mostly due to the moderate performance of the RMG sector. Bangladesh exports to USA totalled $5,846.64 million in the last fiscal (2016-17) compared to $6,220.65 million during the previous fiscal (2015-16). The exports in fiscal 2012-13 were also impressive with $5,419.60 million. The export in 2011-12 was also laudable totalling $5,100.91 million, slightly down from $5,107.52 million in fiscal 2010-11. The export earnings in fiscal 2009-10, however, totalled $3,950.47 million, down from $4,052.00 million in 2008-09, mostly because of the global economic recession. The 2009-10 fiscal marked the end of an ups-and-down period for Bangladesh exports to the US. From the robust $2.5 billion during the 2000-01 fiscal, exports had fallen below $2 billion by 2003-04. Exports to the US rose steadily to cross the $3 billion mark in 2005-06, and peaked at nearly $3.6 billion during the 2007-08 fiscal.

Source: Business News

Back to top

Pakistan : Businessmen welcome GSP plus renewal

MULTAN-The local business community welcomed on Friday the renewal of GSP plus scheme for two years by European Union, saying it would give a considerable boost to Pakistan’s economy. President of Multan Chamber of Commerce & Industry (MCCI)Malik Asrar Ahmed Awan said that the renewal of GSP plus status for another two years was a golden opportunity which our exporters could exploit and make most out of it in order to meet export target of US $ 35 billion. He pointed out that Pakistan exploited GSP plus status by accessing markets across European Union during last three years and our exports to EU increased from 24 per cent in 2013 to 34 per cent in 2016. He suggested to the government to consider exporters time-barred claims similar to those of non-textile, since textile sector had been the main driver of the economy for the last 50 years in terms of foreign currency earnings and jobs creation. “There is no alternative industry or service sector other than textile that has the potential to benefit the economy with foreign currency earnings and new job creation,” he added. Under GSP+ Pakistani goods have duty-free access on 91 per cent of EU tariff lines. Upward trend was witnessed in exports to EU and exports of euro6.29 billion achieved in 2016 as compared to euro4.54 billion in 2013. Textile sector alone fetched euro4.87 billion out of euro6.29 billion exports in total for 2016 and euro3.14 billion out of 4.54 billion fetched in 2013 which represents a considerable increase of 54.8 percent leading to balance of trade in favour of Pakistan. The MCCI president further said that we had succeeded in reaching this landmark simply due to the serious efforts of ministry of Commerce and Textile. He said that it is a good news that our exports increased by 11.19 percent for the period July - Dec 2017 as compared to July - Dec 2016. It seems that train of trade is on the right path and necessary steps need to be taken in order to continue this trend. “Government should fulfil its announced commitments and ensure timely release of all stuck up refund payments against sales tax, duty drawback on local taxes and levies (DLTL) and DDT,” he demanded.

Source: The Nation

Back to top

East Africa: Rwanda Supports Regional Textile Production - Musoni

Regional leaders met in Kampala on Friday to devise means of increasing East Africa's trade competitiveness through, among other means, creating a competitive textiles industry. The leaders were speaking at the East African Community (EAC) Heads of State Retreat on Infrastructure, Health Financing and Development in Kampala. "The summit, with regard to promoting the cotton, textile, apparel and leather industries in the region, to make the region more competitive and create jobs decided to prioritize the development of a competitive domestic textile and leather sector to provide affordable, new and quality options of clothing and leather products to East African citizens," the communiqué reads in part. Infrastructure minister James Musoni, who represented President Paul Kagame at the summit said that Rwanda has not banned selling second hand clothes but it is promoting 'Made In Rwanda' to encourage Rwandans to use clothes that haven't been used by other people. "What we have done is to impose a certain tax on this but we haven't banned them. We encourage local and regional production," he told Sunday Times in Kampala. Musoni added that Rwanda is benefiting from different joint regional infrastructure projects, citing an example of the Kagitumba-Kayonza-Rusumo road and Ngoma-Nyanza regional road. "When we take these collective decisions, it even becomes easier for resource mobilization because our development partners want to see projects fitting in that framework. All these concerted efforts directly impact on Rwanda's development," he said. The summit directed the council of Ministers to mobilize resources required for implementation of new and ongoing priority infrastructure projects in the region.

Making a regional constitution

The Heads of state received a report of the council of Ministers on the progress of the constitutional-making process of the EAC Political Confederation and directed partner states to nominate constitutional experts and directed the council of ministers to fund the process of constitutional making. The leaders took note of the progress on the development of the automotive industry in the region to reduce importation of used motor vehicles from outside the region and to make the region more competitive. They directed the council of ministers to expedite the process and report to the 20th summit. Just last month, German carmaker Volkswagen announced that they are in the process of setting up a plant in Rwanda to assemble cars locally and roll out a mobility solution in the second quarter of this year. The summit was attended by Ugandan President Yoweri Museveni, who is the EAC chairperson and Kenyan President Uhuru Kenyatta. Other presidents who attended the summit include  John Magufuli of Tanzania, and Salva Kirr of South Sudan. Burundian Vice-President Gaston Sindimwo represented President Pierre Nkurunziza.

Source:  allAfrica.com

Back to top

Cambodia: Industrial sector grows, but still reliant on garment factories

An employee works at a garment factory in Phnom Penh’s Por Sen Chey district in 2014. Vireak Mai.The government released a summary of the country’s industrial sector over the past five years, showing a marked increase in growth across a wide variety of indicators. The report, released by the Ministry of Industry and Handicrafts (MIH) last week, lacks specific data but shows a generally positive trend in the number of factories in the country, the number of workers employed in the industrial sector and the variety of goods produced for both import and export. Cambodia had a total of 1,522 registered factories in 2017, up 37 percent from five years ago when there were 1,108 factories. That growth was halted last year, as the number of factories actually decreased for the first time in five years, down slightly from the all-time high of 1,579 in 2016. The slight drop in the total number of factories could be attributed to the government’s push to diversify from garment factories and pursue more large-scale projects, according to Hort Pheng, director of the Industry Affairs Department at MIH. “Now we’ve almost filled demand for garment factories, of which there are already more than a thousand,” Pheng said. “Now our policy will focus on attracting investment for technical factories, as a potential industry that promotes large scale” projects and operations. The number of garment factories grew 29 percent over five years and now stands at 1,031, about two-thirds of the total number of factories. The remaining one-third of the factories were a diverse set of manufacturing operations, including 117 food, beverage and cigarettes factories  104 chemical rubber and plastic factories  and 44 paper processing factories. Factories in the Kingdom generated $10.79 billion in revenue last year, up 70 percent from 2013. More than $7 billion of that total came from the export-focused garment industry, while domestic industries generated another $2.62 billion. The steady improvement in the industrial sector reflected improvements in the government’s commerce and investment policies, but Cambodia needed to further diversify its workforce and increase the skills of its workers to stay competitive, according to Nguon Meng Tech, director of the Cambodia Chamber of Commerce. “Even if we have a good policy from the government, the industry still needs the human resources and technicians in order to serve new investment,” Meng Tech said. “We have to encourage the emigrant workers to look at working in this country.” Cambodia’s economy has long been reliant on the garment sector, which employed 847,419 workers last year, making up 86 percent of the 982,203 people employed in the industrial sector, according to the report. That puts the country at risk of disruption from potential shocks in the industry or rollbacks in preferential trade agreements. The main importer of Cambodian garments is the EU, which offers Cambodia duty-free access under the Everything But Arms (EBA) agreement, on the condition that democratic and human rights standards are met. Reuters and the Financial Times both reported last week that the EU was considering possible sanctions against the Cambodian government over a crackdown on the political opposition, including a possible rollback of the EBA agreement.

Source: The Phnom Penh Post

Back to top

Bangladesh : Set Tk 16,000 as minimum wage

Workers and union leaders on Saturday demanded trebling of minimum wage to Tk 16,000 for the country's 3.6 million apparel workers given the abnormal spiral in the costs of basic commodities, accommodation and healthcare. At present, the minimum wage for garment workers is Tk 5,300. “Although we do not fully agree with the concept of living wage, we want a big hike of the salary this time,” said Nazma Akter, president of the Sommilito Garments Sramik Federation, a garment workers' rights group. The group has already sent a letter to the minimum wage board, which was formed last month by the government, demanding Tk 16,000 as the wage. Sima Akter and Rasheda Begum, two operators of a garment factory at Gazipur, echoed the views of Akter. If the salary is hiked the factory owners will also raise the production targets proportionately, Sima said. “Please also keep our physical conditions in mind when you fix the minimum wage.” The trebling of wages is warranted as the prices of basic commodities have increased along with the house rent, said Sultana Begum, president of the Green Bangla Garments Workers Federation. The garment workers have to buy rice at Tk 58 to Tk 60 a kilogram as the prices of the staple have shot up. “But our incomes did not increase.” She went on to state that the prices of basic commodities and house rent are higher than in Dhaka at Gazipur, the hub for garment factories. “We cannot save any money even after sharing a room and having less nutrient food,” she added. Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, suggested specifying the legal aspects of the wage and workers' rights while fixing the minimum wage as sometimes the workers cannot enjoy all benefits due to ambiguities in the labour law. For instance, there is an apprentice grade for which the minimum wage is Tk 4,200, but the factory owners often pay the entry level workers this wage instead of the correct amount of Tk 5,300. Every time the issue of wage hike is discussed the factory management brings up the argument that they would go out of business if the workers' salaries are raised. “Actually, this is not right -- we should find out how many factories have shuttered for salary hike. Factories may close down for other reasons.” Ideally, the minimum wage should be close to the living wage, Moazzem said. As per the Asia Floor Wage, the living wage for garment workers is Tk 37,661 given the conditions of 2017. The current minimum wage of Tk 5,300 is just 19 percent of the living wage, he added. “The existing minimum wage is not enough to maintain the minimum standard of living for a worker,” said Selim Raihan, a professor of the Dhaka University's Economics department, while sharing the findings of a study at an event held at the capital's Lakeshore Hotel yesterday. The study -- Moving towards Living Wage: What will it take? -- was conducted by the South Asian Network of Economic Modelling on garment workers in Dhaka and Gazipur. It was funded by CARE Bangladesh under its OIKKO project. A minimum standard living comprises food, clothing, house rent, education, health, entertainment, savings and so on. Fixing Tk 5,300 as the minimum wage for workers in 2013 was not adequate for maintaining a decent life, Raihan said. So, this time the minimum wage for garment workers should be fixed following the living wage concept. “Prices are going up daily but not our wages. We are now buying lower quality food and grains from local shops. This is going to affect our health in the long-run but we have no choice.” Between 0.5 and 3 percent of the cost of manufacturing a clothing item goes to the worker who made it. “This means, on an €8 t-shirt, the most a worker will get paid is 24 cents,” he added. Qazi Kholiquzzaman Ahmad, chairman of the Palli Karma- Sahayak Foundation, urged the government and factory owners to introduce a rationing system for garment workers so that they can purchase the basic commodities at subsidised rates. Four important factors -- food, accommodation, education and health of workers -- should be considered while fixing the wage, Ahmad said.

Source: The Daily Star

Back to top

Pakistan: Ban On Cultivation Of Cotton Before April 1

LAHORE: There is a complete ban on the cultivation of cottonin the province before the start of April. The Punjabagriculture department sources said this here on Sunday. They said that attack chances of pink bollworm on early sown cotton increases keeping in view this possibility and in accordancwe with the recommedations of agricultural scientists and experts the department has taken a decision of ban on early sown cotton. The sources said that field teams had been mobilised to counter the attack of white-fly and pink bollworm. APP/yrb/asm

Source: Urdu Point News

Back to top