The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 07 MARCH, 2018

 

NATIONAL

INTERNATIONAL

India's apparel exports may dip in FY18 over GST, global challenges

Growing uncompetitiveness, lack of refunds and incentives post GST may push back exports from $17 billion If the 10-month data from April 2017 to January 2018 is anything to go by, India's apparel industry may post a rare decline in exports for the current fiscal 2017-18, let alone meeting the $20 billion target.  While India may have reported a 6-20 per cent growth in apparel exports to different destinations such as the US, UK, Germany, France and Spain during November-December 2017, overall exports in the sector are down by one per cent for the 10-month period of this year. Global factors such as free-trade agreements of competing nations with key markets like Europe, the UK and the US had already been posting a challenge to Indian ready-made garments (RMG) exporters. However, post Goods and Services Tax (GST) implementation in July 2017, reduced export incentives coupled with delay in input credit refunds have further accentuated the industry's woes. Data shared by industry body Apparel Export Promotion Council (AEPC) shows that India’s RMG export to world in the April-January of 2017-18 was to the tune of $13,783.4 million. down 1.27 per cent compared to the same period of previous financial year. During April-January 2016-17, India’s apparel exports were to the tune of $13,960.2 million. According to AEPC and rating agency Icra, the decline has been primarily driven by the sharp decline in exports to the UAE market. This has been augmented by dismal global apparel trade which remained subdued at a mere one per cent growth in calendar year 2017, following a decline of two per cent and five per cent in 2016 and 2015, respectively. As per Icra, particularly for the ten-month period ending June 2017, India’s apparel exports to UAE had grown at a sharp pace of 56 per cent year on year (YoY). "Thereafter, apparel exports to the UAE have fallen at an equally fast pace, by as much as 45 per cent since June 2017. Excluding the trade with the UAE, India’s apparel exports are estimated to have stood 3-4 per cent higher in 10 months of FY2018," Icra stated. HKL Magu, chairman of AEPC told Business Standard that the industry will not be able to reach the target of $20 billion of apparel exports. Apparel industry, apparel export, textile industry, garment export, gst, china, export data, export figures ”The implementation of GST since July has resulted in blockage of funds for the export community due to lack of input credit refunds. Except for a few exporters, hardly anyone has received refunds since last eight months. Exporters don't have money to pay to suppliers. Secondly, export incentives such as duty drawback and rebate on state levies (ROSL) have been reduced," said Magu. While duty drawback rate and rebate of state levies (ROSL) were lowered to two per cent from 7.5 per cent and 3.9 per cent, respectively in the post GST era, incentive under merchandise exports from India scheme (MEIS) was increased from two to four per cent. However, with the MEIS deadline expiring on June 30, 2018, the industry is uncertain of taking orders beyond the date on the basis of a higher incentive. "If they don't renew it then we will be unable to book orders beyond June because we are unsure if MEIS will continue after that. We will lose money if we assume four per cent incentive beyond June and the government does not extend it," said Magu.  Already, global factors have been rendering Indian RMG exporters uncompetitive. "While China has vacated the apparel export space, India is unable to encash on the opportunity unlike Vietnam, Bangladesh or Cambodia who have free trade agreements. India is emerging as an expensive affair in the global apparel market," Magu stated. Supported by its duty-free access to the EU market, Bangladesh retains its status as the second-largest apparel exporter after China. Vietnam remains the fastest growing amongst large apparel exporting nations, maintaining its growth in the US market despite the latter backing out of a proposed trade agreement. Further, Jayanta Roy, Senior Vice-President and Group Head, Icra is of the view that the competitiveness of the Indian apparel exporters will also remain contingent upon the movement in foreign exchange rates. "This remained a key challenge last year, with the Indian rupee appreciating by three per cent (vis-à-vis US$) in calendar year 2017 compared to 1-3 per cent depreciation in currencies of other key apparel exporting nations (i.e China, Bangladesh and Vietnam)," said Roy.

Source: Business Standard

Back to top

India, Vietnam sign MoU on economic & trade cooperation

To establish a framework for enhancing economic and trade promotion, a memorandum of understanding (MoU) has been signed during the state visit of President of Vietnam to India. Both sides urged leaders of business and industry of both countries to explore new trade and investment opportunities in identified priority areas of cooperation, including textiles. Vietnamese President Tran Dai Quang and Indian Prime Minister Narendra Modi affirmed the long-term and time-tested friendship between the two countries. Both sides expressed their satisfaction at the excellent state of Comprehensive Strategic Partnership between the two countries, and commended various commemorative activities. Both sides agreed that enhancing strong trade and economic engagement is a strategic objective, a core element of the Comprehensive Strategic Partnership and are essential for strengthening bilateral ties. “Both leaders expressed satisfaction and commended the significant rise in trade turnover during the last two years. In order to realise potential to both increase the volume of trade and diversify its composition, they requested the relevant ministries and agencies on both sides to explore substantive and practical measures to achieve the trade target of $15 billion by 2020, including but not limited to utilising established mechanisms, strengthening exchanges of trade delegations, business-to-business contacts, regular organisation of trade fairs and events,” an official statement said. The two sides agreed to intensify cooperation to increase productivity, quantum and content of science and technology in agricultural products. Both sides encouraged greater two-way investment between Vietnam and India. Prime Minister Modi welcomed Vietnamese companies to avail of the favourable investment climate in India under the Make in India programme. President Tran Dai Quang welcomed Indian companies to invest in Vietnam and affirmed Vietnam’s commitment to create favourable conditions and facilitation for Indian investments in accordance with Vietnamese laws. The MoU on economic and trade cooperation was signed by external affairs minister Sushma Swaraj from the Indian side and Vietnamese minister of industry and trade Tran Tuan Anh. (RKS)

Source: Fibre2Fashion

Back to top

Czech Republic pushes for early resumption of India-EU FTA talks

The Czech Republic is pushing for an early resumption of the free trade agreement between India and the EU which it feels would result in a “win-win’’ situation for both. The country’s Trade and Industry Minister Tomas Huner, who is in India with a business delegation to participate in an engineering goods expo in Chennai, discussed ways to re-start the stalled FTA talks with his Indian counterpart Suresh Prabhu. “I will discuss the resumption of the FTA talks between India and the EU with Commerce Minister Suresh Prabhu as we totally support the proposed pact. We believe that cooperating more with India in trade and investments will create a win-win situation,” Huner told BusinessLine before his meeting with Prabhu. Talks on India-EU FTA, formally known as the Broad-based Trade and Investment Agreement (BTIA), have hit a road-block over contentious issues such as tariff reduction by India on automobiles and wines and spirits and recognition of the country as a data secure destination by the EU. Huner, who also met Minister of Railways and Coal Piyush Goyal, discussed areas of cooperation between the two countries in Railways. “We were talking about possibilities on cooperation not only in traffic system, including signalling and digital but also in safety system,” he said. While India’s exports to the Czech Republic mostly comprises engineering goods, there is an opportunity to widen the basket as the country is one of the fastest growing in the EU with a 4.5 per cent GDP growth in 2017, said Czech Ambassador to India Milan Hovorka. Taking an indirect dig at countries such as the US which is creating a big issue about trade deficits, Hovorka said that the bilateral trade between the two countries at $1.5 billion was in India’s favour but the Czech didn’t have any problems with that. “Both countries benefit from their comparative advantages. We have a deficit with India. We don’t care about deficit. Because we think that this is primarily about relationships and about competitiveness,” Hovorka said. The Czech Trade Minister pointed out that Czech companies such as automobile giant Skoda, Tetra and financial company Home Credit were doing very well in India and many others had plans of expansion. India and the Czech Republic also discussed cooperation in nuclear power. “We have 2,000 MW new capacity (nuclear power) in the Czech Republic. There is a good scope of cooperation with India as our nuclear power stations are using domestic technology. There is interest on both sides and we had very good and strong communication,” Huner said.

Source: Business Line

Back to top

Textiles ministry enlists 21 portals for handloom sales

The textiles ministry has so far enlisted 21 e-commerce platforms for sale of handloom products, minister of state for textiles, Ajay Tamta said in a written reply to the Rajya Sabha this week. These portals generated sales worth Rs 9.54 crore in the first 9 months of current fiscal. However, there is no government online platform for sale of handloom items. “To promote e-marketing of handloom products, a policy framework was designed under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. So far, the ministry has engaged 21 e-commerce entities for online marketing of handloom products,” Tamta said in response to a question by a Tinamool Congress MP. As on December 31, 2017, these web portals had generated handloom sales of Rs 9.54 crore in the current financial year. This figure was Rs 7.07 crore in the corresponding period of 2016-17, and Rs 1.06 crore in 2015-16. Thus, more than Rs 17 crore of sales of handloom products have been generated since 2015, the minister added.

Source: Fibre2Fashion

Back to top

Good demand for Indian cotton in overseas markets on depreciation

There is good demand for Indian cotton from overseas markets this season. Bangladesh, Pakistan, Vietnam, Indonesia and various other countries are buying cotton from India heavily this season. There is good demand for Indian cotton from overseas markets this season. Bangladesh, Pakistan, Vietnam, Indonesia and various other countries are buying cotton from India heavily this season. Around 40 lakh bales of cotton have been exported from the country so far and another 15-20 lakh bales are expected to be exported by the end of this season, top officials of the Khandesh Ginning & Pressing Factory Owners & Traders Association said. Interestingly, there are market reports of the likelihood of export of some 10 lakh bales to China this season. Alongside exports, imports have also gone up this season because of the Pink Bollworm infestation, according to industry people. There is good demand coming from these countries for Indian cotton, according to Pradeep Jain, president of the Association. Around 14 lakh bales have been exported to Bangladesh so far, 9 lakh bales to Pakistan and the remaining to Turkey, Vietnam and Indonesia. Exports from India this year have received a fillip thanks to the rupee depreciation, he said. Industry experts pointed out that China has not been importing cotton for the last two to three years and has been using its buffer stock of some 1 crore bales and may soon tap overseas markets for some 20-25 lakh bales in the next 7-8 months. In addition to exports, the country has also imported around 10 lakh bales so far and there is the possibility of imports touching 35-40 lakh bales, industry experts pointed out. The Cotton Association of India (CAI) has lowered its crop estimates for the ongoing 2017-18 crop year at 367 lakh bales. The association has released its January 2018 estimate of the cotton crop for the year 2017-18 beginning from October 1, 2017. The CAI has lowered its estimate for the ongoing season by 8 lakh bales. The reason is severe Pink Bollworm infestation, Atul Ganatra, president of CAI had stated. In accordance with the advice of the scientists, the farmers in several areas, particularly in Maharashtra and Telangana, have uprooted their cotton crop without waiting for further pickings, he said. The projected balance sheet drawn by the CAI estimated total cotton supply for the season at 417 lakh bales of 170 kg each, including the opening stock of 30 lakh bales.

Source: Financial Express

Back to top

Govt likely to slash Bt Cotton seed price to Rs740 per packet

New Delhi: In an attempt to offer some respite to cotton farmers battered by repeated pest attacks and crop losses, the centre is likely to slash the price of genetically modified Bt cotton seeds as well as trait fees payable by domestic seed companies to technology developers. The maximum sale price of a Bt cotton (Bollgard II) seed packet weighing 450g is likely to be reduced from Rs800 to Rs740, said a person familiar with the development, requesting anonymity. The person added that the trait or royalty fee included in the sale price (which domestic seed companies pay to the technology developers) is likely to be reduced from Rs49 per packet to Rs39 per packet. A final decision will be taken in a day or two by the agriculture ministry’s cotton-seed price control committee. The committee has unanimously recommended that the government slash seed prices to Rs740 per packet and the agriculture ministry is expected to take a final call soon, said a member of the price control committee, who did not want to be named. With 50 million packets usually sold in a year, the losses to the industry will be around Rs300 crore (at a revenue loss of Rs60 per packet). In March 2016, the agriculture ministry, on the recommendation of a nine-member panel, slashed prices to Rs800 per packet—compared with Rs830-1,000 charged earlier—and cut royalty fees sharply by 74%, from Rs163 per packet to Rs43 (excluding taxes). Last year, prices were not changed. While the move will benefit nearly 8 million cotton growers in India, domestic seed companies will see their earnings fall by at least Rs50 per packet. Technology developer Monsanto Mahyco Biotech (India) Ltd will earn Rs10 less for each packet of cotton seeds sold in India. “In the last six years, the domestic seed industry has seen a huge increase in labour and other costs and there is hardly any margin left to continue with cotton seed production,” said Kalyan Goswami, director general of the National Seed Association of India (NSAI), an industry lobby. Goswami added that NSAI has advocated (to the agriculture ministry) for a Rs150 price increase per packet and if this measure is not taken, it would impact seed supply and availability. C.D. Mayee, former director of the Central Institute for Cotton Research, Nagpur, said that the continuous reduction in the price of Bt cotton seeds will spur the sale of spurious seeds. “Such a drastic reduction in prices will be a wrong move as fly-by-night operators will capture the market and domestic seed companies who are in the business for many decades will see significant losses.” “Price control was a major reason why spurious seed sales rose last year and the cotton crop suffered heavy damage in Maharashtra,” he said. Mayee, who was also the former agriculture commissioner at the centre, added that the “populist move will end up hurting farmers more than benefiting them as seed prices account for just 10% of cost of cultivation”. India approved the genetically modified Bt cotton technology for commercial cultivation in 2002. Following the introduction of Bt cotton and its efficacy in resisting bollworm pest attacks, India became a leading exporter of cotton globally. However, in recent years, Bt cotton fields have seen repeated pest attacks and crop losses—in Punjab in 2015 and in Maharashtra last year.

Source: Livemint

Back to top

Apparel exports face global, domestic headwinds: ICRA

The agency also pointed out that uncertainty on the apparel exports to the UAE looms, in light of inexplicable trends witnessed in the recent months. The pace of growth in country's apparel exports will depend on the industry's ability to wade through the new taxation and export incentive regime and intense global competition, says a report. While transition to the new taxation and export incentive regime has posed liquidity challenges for the industry, intense competitive pressures in the global market, particularly in light of impending trade agreements and foreign currency movements, pose additional challenges, rating agency Icra said in its report today. The agency also pointed out that uncertainty on the apparel exports to the UAE looms, in light of inexplicable trends witnessed in the recent months. "The accommodative stance taken by the government by way of upward revision in export incentives in November 2017, has addressed one of the issues that the segment is facing. However, sustainability of growth remains contingent on how the scenario on the other fronts pans out," said Jayanta Roy, senior vice-president and group head, ICRA. Post upward revision in export incentives, India reported a 6-20 percent growth in apparel exports to key nations like the US, the UK, Germany, France, Spain during November-December 2017, the report said. However, despite this, the overall apparel exports were down by 1 percent in the first month of FY18, it added. According to Icra, the decline has been primarily driven by the sharp dip in exports to the UAE market. UAE had emerged as one of the prominent apparel export destinations for India, with its share increasing to 23 percent in FY17 from 12 percent in FY14, the report showed. Particularly for the 10-month period ending June 2017, India's apparel exports to the UAE had grown at a sharp pace (56 percent), it said, adding that it equally declined fast by 45 percent since June 2017. Excluding the trade with the UAE, India's apparel exports are estimated to have stood 3-4 per cent higher in the first 10 months of FY18. As for the global scenario, apparel trade has remained subdued for the third consecutive year, expanding by just 1 per cent in calender year 2017 on a low base, following a 2 percent and 5 percent decline witnessed in 2016 and 2015, respectively. Ray said the competitiveness of the Indian apparel exporters will also depend on the movement in foreign exchange rates. "This remained a key challenge last year, with the Indian rupee appreciating by 3 percent in CY2017 compared to 1-3 percent depreciation in currencies of other key apparel exporting nations that is China, Bangladesh and Vietnam" he added.

Source: Moneycontrol.com

Back to top

Global Textile Raw Material Price 2018-03-06

Item

Price

Unit

Fluctuation

Date

PSF

1442.68

USD/Ton

-0.27%

3/6/2018

VSF

2301.98

USD/Ton

0%

3/6/2018

ASF

2759.23

USD/Ton

0%

3/6/2018

Polyester POY

1389.86

USD/Ton

-0.11%

3/6/2018

Nylon FDY

3602.76

USD/Ton

0.66%

3/6/2018

40D Spandex

5912.63

USD/Ton

0%

3/6/2018

Nylon POY

5959.93

USD/Ton

0%

3/6/2018

Acrylic Top 3D

1627.94

USD/Ton

0%

3/6/2018

Polyester FDY

3350.49

USD/Ton

0%

3/6/2018

Nylon DTY

2964.20

USD/Ton

0%

3/6/2018

Viscose Long Filament

1639.77

USD/Ton

0%

3/6/2018

Polyester DTY

3807.73

USD/Ton

0%

3/6/2018

30S Spun Rayon Yarn

3011.50

USD/Ton

0%

3/6/2018

32S Polyester Yarn

2207.38

USD/Ton

0%

3/6/2018

45S T/C Yarn

3011.50

USD/Ton

0%

3/6/2018

40S Rayon Yarn

2349.28

USD/Ton

0%

3/6/2018

T/R Yarn 65/35 32S

2538.49

USD/Ton

0%

3/6/2018

45S Polyester Yarn

3137.63

USD/Ton

0%

3/6/2018

T/C Yarn 65/35 32S

2648.86

USD/Ton

0%

3/6/2018

10S Denim Fabric

1.47

USD/Meter

0%

3/6/2018

32S Twill Fabric

0.90

USD/Meter

0%

3/6/2018

40S Combed Poplin

1.26

USD/Meter

0%

3/6/2018

30S Rayon Fabric

0.70

USD/Meter

0%

3/6/2018

45S T/C Fabric

0.74

USD/Meter

0%

3/6/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15767 USD dtd. 4/3/2018). 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-Errant RMG units to face legal action in May

The government has decided to take legal action against the readymade garment factories inspected under the national initiative that will fail to complete remediation work by April. The labour ministry in a recent meeting to review the progress of Remediation Coronation Cell came to a firm decision that the Department of Inspection for Factories and Establishment would file case against factories, which will fail to complete remediation in time, in May. This would be imminent as the company authorities have signed agreements to fix the safety issues by April. At the same time, the labour ministry would request Bangladesh Garment Manufacturers and Exporters Association to not issue utilisation declaration against the errant factories, meeting sources said. A plan of action for remediation was presented at the meeting by DIFE identifying four challenges for the remediation including unwillingness of the factory owners, non-cooperation from building owners, lack of experienced engineers and shortage of engineers at DIFE. A total of 3,780 garment factories were assessed under the three initiatives Accord on Fire and Building Safety in Bangladesh, Alliance for Bangladesh Worker Safety and the government lead and ILO supported national initiative. Out of 3,780 garment factories, 1,549 were inspected under the national initiative, from which 531 were closed down, 69 relocated and 193 units shifted to the Accord and Alliance lists. Currently, the DIFE were monitoring remediation work in 745 factories through the remediation coordination cell formed in May last year. Of 745 factories, 300 were operating in own buildings while 445 were running its business in shared or rented buildings. The DIFE informed labour ministry that the inspection department held 32 meetings with the factory owners to expedite the remediation and signed agreement with the owners to fix a deadline for the completion of remediation by April. In the meeting, the representative of Bangladesh University of Engineering and Technology opined that unwillingness of factory owners to submit Detailed Engineering Assessment of building was the major impediment toward remediation. In the meeting, the ministry asked DIFE to prepare a concrete list of required support for the remediation and a time-bound plan of action for the taskforces which were engaged to approve DEAs for structural, electrical and fire related aspects. 

Source: New Age BD.

Back to top

WTO chief warns 'real risk' of escalation in global trade barriers

World Trade Organization (WTO) director-general Roberto Azevedo on Monday called on members to avoid triggering an escalation in global trade barriers. "In light of recent announcements on trade policy measures, it is clear that we now see a much higher and real risk of triggering an escalation of trade barriers across the globe," said Azevedo in a meeting of all WTO members. The WTO chief responded to a series of announcements from WTO members in recent days which suggested that a range of new, unilateral trade barriers could soon be put into force. This came after United States President Donald Trump announced last week that the United States was set to impose 25 percent of tariff on steel imports and 10 percent for aluminum to protect the domestic industries, citing national security concerns. "We cannot ignore this risk and I urge all parties to consider and reflect on this situation very carefully. Once we start down this path, it will be very difficult to reverse direction," Azevedo stressed.

Source: China Daily.

Back to top

Vietnamese keen to invest in telecom, textile

Vietnam wants to invest in telecom, agriculture, IT, textile, oil and gas, infrastructure sectors of Bangladesh due the country's low-cost production facilities and large market, said Tran Dai Quang, president of the Southeast Asian nation. “There is a lot of opportunity for investment given the current size of the economy of Bangladesh,” he said at the 'Vietnam-Bangladesh Business Forum', organised yesterday by the Federation of Bangladesh Chambers of Commerce and Industry. Tran went to recommend the Bangladesh government to reform the policies for attracting more foreign investment. At present, Vietnam has $320 billion of foreign investment due to its improved infrastructures, liberal economic policies and its 6.5 percent to 7 percent growth over the last few years. He suggested Bangladesh for more innovation, higher productivity, adoption of green technologies, expansion of domestic markets, greater transparency and enhanced competitiveness for attracting higher foreign investment. Vietnam is also keen on taking the bilateral trade between the two countries to $1 billion by the end of this year and to $2 billion by 2020, he said. At present, bilateral trade between the two countries is heavily tilted towards Vietnam. In fiscal 2016-17, Bangladesh imported goods worth $417 million and exported goods worth $66.44 million, according to data from the FBCCI. “We would like to encourage bilateral trade in rice, agricultural products, textile and food processing.” Tran also commended Bangladesh on its poverty reduction efforts. “Actually, I am impressed with Bangladesh's enormous social and economic development. Bangladesh is a role model in the world in poverty reduction,” he added. Commerce Minister Tofail Ahmed said Bangladesh is already a lower middle-income country and very soon the country would graduate to the middle-income bracket. The minister offered a special economic zone for Vietnamese investors as the government has been developing 100 such zones across the country for both local and foreign entrepreneurs. The businessmen of both the countries agreed to form a Bangladesh Vietnam Business Council to focus on sectors and modalities to promote trade and investment between the two countries, said Shafiul Islam Mohiuddin, president of FBCCI. At the business forum, three investment agreements were signed in the presence of Tran. In the first agreement, TBS Group, which counts global brands like Coach, Tory Burch, Skechers and Decathlon as its long-term customers, agreed to invest $100 million in Bangladesh's leather and leather goods sector. The agreement was signed between Saiful Islam, president of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, and Diep Thanh Kiet, vice-chairman of Vietnam Leather, Footwear and Handbag Association. The other two agreements involve setting up two joint venture seafood processing companies in Bangladesh. “We will seek technologies on shrimp farming from the Vietnamese companies,” said Belayet Hossain, vice-president of the Bangladesh Frozen Foods Exporters Association, after signing the agreements. Vietnam has been performing very well on the export of vannamei variety of shrimp. The local fish farmers will also cultivate the vannamei variety of shrimps as this is more profitable than the black tiger and fresh water shrimps that they currently farm.

Source: The Daily Star

Back to top

European brands to steal the show at Intertextile Shanghai

European brands are set to steal the show at the upcoming Intertextile Shanghai Apparel Fabrics show in China, one of the leading apparel fabric and accessories exhibitions in the world. The show that provides an excellent opportunity for overseas suppliers to build stronger relationships, will be held from March 14 to 16, 2018 in Shanghai, China. SalonEurope will show a range of products across the whole textile spectrum on offer. Celebrating its 100-year anniversary this July, Alumo has undertaken a complete refresh of their brand, highlighting the character of their mill in Appenzell, Switzerland that has deep roots in the local textile industry. This edition, they will showcase a renewed collection of luxury shirting fabrics with intricate designs and added functions such as natural stretch and wrinkle-free, and a newly enlarged, never-out-of-stock ‘Sartorial’ collection. Hatfil Tekstil Isletmeleri, a Turkish-Italian joint venture, will offer a huge range of yarns including eco-friendly options such as organic, BCI and fair trade yarns, as well as cotton, Tencel, Amicor, bamboo, cashmere, modal and other varieties. Hohenstein Textile Testing from Germany will show testing services, Oeko-Tex services and certifications, the Hohenstein Quality Label, and more, at the expo. Ricamificio Paolo Italy SpA, an embroidery manufacturer, will show a new technique using very thin embroideries to produce a lace-like effect, which can also be customised to the customer’s requirements in no more than four weeks. Teseo Tessitura Serica Di Olmeda SpA (Italy), will display their summer 2019 collection, inspired by the natural elements with increased attention to sustainability with GOTS-certified bio silk and eco-friendly yarns. Ten leading global viscose producers in China have come together to form the Collaboration for Sustainable Development of Viscose (CV) to promote the sustainable sourcing and responsible production of viscose. These 10 producers collectively account for over 50 per cent of the world’s viscose staple fibre production, and have partnered with two trade associations to adopt a sustainability roadmap for the viscose industry. The CV collaboration will make its debut appearance in the fair’s All About Sustainability zone, where visitors can learn more about this initiative, as well as sustainable developments in the Chinese textile industry. Apart from an educational programme and garment display area, the zone will also feature a number of exhibitors other than CV. While digital printing is rapidly gaining traction in the global textile industry, this is especially so in China due to its potential to reduce pollution during the production process. Amongst the exhibitors looking to take advantage of this in the fair’s new Digital Printing Zone is MS Italy, a market leader in the development of innovative digital ink-jet printing systems and associated consumables, which serves the high-end, roll-to-roll textile printing and specialty material markets. Also exhibiting is Digitex, which will introduce the latest digital- and inkjet-printed natural and manmade fabrics. The Fast Fashion and Digital Printing Application Forum will feature sessions on fast fashion technology & trends and digital printing applications. These will be followed by a series of discussions on topics such as flexible supply chains, business opportunities created by digital printing and IP protection. The forum will also include a presentation on the findings of a six-month study conducted by Fashion Print, a Chinese publication, for which they visited hundreds of textile companies, printing and dyeing enterprises, as well as their suppliers to produce a research paper on the digital textile printing market and technology.

Source: Fibre2fashion.

Back to top

EU proposes retaliatory tariff of 25% against US goods

The European Union intends to target 2.8 billion euros ($3.5 billion) of U.S. goods ranging from T-shirts and whiskey to motorcycles and ladders should President Donald Trump go ahead with his plan to impose a 25 percent tariff on foreign steel. The EU aims to apply a tit-for-tat levy on a range of consumer, agricultural and steel goods imported from the U.S., according to a list drawn up by the European Commission and obtained by Bloomberg News. The commission, the EU’s executive arm, discussed the measures with representatives of the bloc’s governments at a meeting on Monday evening in Brussels. The EU’s retaliatory list targets imports from the U.S. of shirts, jeans, cosmetics, other consumer goods, motorbikes and pleasure boats worth around 1 billion euros; orange juice, bourbon whiskey, corn and other agricultural products totaling 951 million euros; and steel and other industrial products valued at 854 million euros. Trump’s vow to curb U.S. imports of foreign steel has sparked opposition within his Republican Party and is based on a national-security argument that the EU dismisses. The White House threat risks provoking retaliation across the globe and a slew of complaints to the World Trade Organization, which has never ruled on a dispute involving trade restrictions justified on national-security grounds.

Growing Concerns

Europe has expressed growing concerns about Trump’s protectionist stance on international trade. The list of U.S. goods on which the EU intends to apply its own 25 percent tariff sends a political message to Washington about the potential domestic economic costs of making good on the president’s threat. Paul Ryan, Republican speaker of the House of Representatives, comes from the same state -- Wisconsin -- where motorbike maker Harley-Davidson Inc. is based. Earlier this week, Ryan said he was “extremely worried about the consequences of a trade war” and urged Trump to drop his steel-tariff plan. European Commission President Jean-Claude Juncker and his leadership team are due to discuss the retaliation proposal at a meeting on Wednesday. The commission is also weighing filing a complaint to the WTO against the U.S. and introducing “safeguard” measures to prevent steel shipments from other parts of the world to America from being diverted to the European market and flooding it.

Source: Financial Express

Back to top

Pakistan lagging behind rivals in textile competitiveness

KARACHI: Pakistan’s production and earning capacity is far lower as it earns $1 billion through the products of one million cotton bales while Bangladesh and Vietnam earn $6bn and $8bn, respectively, said Asma Khalid, senior economist at State Bank. She was speaking at a seminar on “Stimulating Firm Productivity for Growth,” organised by the State Bank in collaboration with International Growth Centre (IGC), Consortium of Development Policy Research (CDPR) and Institute of Business Administration. Research papers by economists and policy experts were presented and discussed on. Speakers shed light on some interesting figures about the country’s production capacity, export potential, financing hindrances and technology with innovation and also discussed options to achieve sustainable growth with capacity building. It was also revealed that Pakistani products registered 56 per cent innovation, with Sindh leading on that front while Punjab was ahead in the skills development implementation. Recent World Bank data show Pakistan’s bilateral costs to be relatively higher than those of other developing economies, said Salam Ali of IGC. He cited a report of the Commonwealth Secretariat which said the country’s exports to Commonwealth states are worth $4bn as against the potential of $20bn. He also said that Pakistan’s trade cost has remained stagnant compared to India and China’s consistently declining costs each year. Speakers said the higher imports demand for garments in China has created opportunities for countries like Pakistan to get a bigger share. “Rising labour cost in China, growing demand for garments in major Asian economies, and the GSP+ status create new opportunities for Islamabad to increase textile and garments exports,” said a research paper of CDPR. Speakers said that by 2019 China would be the biggest apparel market creating space for Pakistan to benefit from the developments. “Strengthening capabilities is vital to becoming part of the value chain of a global garments market estimated at $133bn, growing at 12pc annually, with China poised to vacate its share of 26pc of the market,” said Ijaz Nabi of CDPR. Naved Hamid and Nabi in their study of the garments sector manufacturing find Pakistan’s high real exchange rate to be harmful for exports. “This was in direct contrast to what other competing economies have done, which is devaluing their currency or allowing their exchange rate to depreciate. For example, between January 2014 and December 2015, the Indian rupee and Chinese yuan fell by approximately 7pc, the Turkish lira by 26pc and the Vietnamese dong by 76pc,” they said. Zara Salman of CDPR said between 2013 and 2015, Pakistan’s garment exports increased by 10pc to EU compared to Bangladesh and India’s 13pc and 17pc respectively, indicating that Pakistan has yet not fully exploited the benefits of the GSP+ status. Pakistan also has an opportunity to expand its share of agriculture exports. China imported $160bn worth of agricultural products in 2015, however, Pakistan’s share was less than 0.5pc. Researchers said Pakistan being next-door neighbour to China enjoys a unique advantage while CPEC provides unprecedented gains to capitalise on. Agricultural development is one of the seven areas of cooperation under CPEC with China especially interested to explore areas like cotton productivity, efficient irrigation and post-harvest infrastructure.

Source: Dawn.com

Back to top

Pakistan : Commodities: Cotton market listless again

KARACHI: Trading on the cotton market on Monday suddenly became listless as sellers and buyers locked horns. The sellers, after taking stock of the current situation, started asking for higher prices but the buyers were unwilling to oblige. As a result, activity dwindled to the lowest mark. The world leading cotton markets lately have been rising, totally disturbing the import parity. Due to this, spinners last week tried their utmost to replenish their stocks from domestic cotton. Tight cotton supply owing to dwindling stocks and rising lint demand from spinners has pushed ginners to hold back the commodity in order to get higher prices in coming days. Meanwhile, New York and Chinese cotton market moved higher while India cotton gave mixed trend. Cotton growers in lower Sindh are complaining about water shortage which is delaying sowing. Overall, less rains and snowfall has created waste shortage in the country. Meanwhile tail-end growers of Sindh have alleged that Punjab has stopped the water. Karachi Cotton Association (KCA) has downward revised cotton prices by Rs100 to Rs7,100 per maund. According to market reports only two deals were reported to have changed hands on ready counter: 400 bales, Ghotki, at Rs6,350 and 400 bales, Haroonabad, at Rs6,300.

Source: Dawn.com

Back to top

Turkey might retaliate by taxing U.S. cotton - Erdoğan advisor

Turkey might retaliate against Donald Trump's proposed steel tariffs by taxing American cotton, said one of President Recep Tayyip Erdoğan's economic advisers on Tuesday. Cemil Ertem, a prominent Erdogan adviser, said " other countries, like Turkey, affected by the U.S. tax are preparing to answer in the kind - such as Turkey with cotton imports," in an article for a Turkish newspaper . U.S. President Donald Trump said that he would impose up to 25 percent tariffs on imports of steel and aluminium to protect American national security last week. Turkey, the world's eighth-largest steel producer and the sixth-largest exporter to the United States, is one of the major importers of American cotton. Trump's proposal has also spurred worries that Europe might retaliate, where officials have threatened counter-measures on quintessential American products.

Source: Ahval

Back to top

Silkworms thrive, Kenya could be major producer – scientist

Kenya could join the world’s leading silk producing countries if the high potential for sericulture in the country is fully exploited. Head of national sericulture centre based in Thika Kasina Muo on Friday said joint research by Kenya and Japan entomologists reveals many ecological zones are suitable for silk farming. He was addressing residents of Ikolomani subcounty. A group in the area has been rearing silk worms since 2016. Japan’s department of agriculture and Kalro are carrying out the research aimed at promoting the sector. Kakamega and Kibos Kalro stations have been identified to carry out further research on viability of sericulture using biological and molecular genetic technology. Muo said that China, the world’s leading silk producer was keen to leasing large tracts of land in Kenya for silk production for both local and international market needs. “My centre has no problem with that as long as there are clear laws governing production and marketing of Silk in the country to benefit farmers,” he said. He asked residents to embrace sericulture which has better returns than Gold that has been discovered in the area. “Gold diminishes as it is mined but silk keeps increasing depending on the silk worms one rears,” he said. Muo also said the county would benefit from rearing a variety of butterflies, wasps and spiders and other wild insects are rich sources of silk fibre. Muo said that a part from being used to produce some of the world’s most expensive linen, silk is also used for production of bulletproof jackets. The leaves of Mulberry tree on which the silk worms feed can also be used to treat high blood pressure, prostate cancer, feed animals and its fruits are used in making jam, he added. Muo said that Japan and Kenya first signed an agreement for production of silk in 1972 but the project stalled. This, time around, he said, the two countries were serious about making sericulture a paying venture like tea and Coffee.

Source: The Star Kenya

Back to top

USDA helps cotton producers maintain, expand domestic market

U.S. Secretary of Agriculture Sonny Perdue recently announced at the 66th Annual Mid-South Farm and Gin Show the U.S. Department of Agriculture is taking action to assist cotton producers through a Cotton Ginning Cost Share program in order to expand and maintain the domestic marketing of cotton. “America’s cotton producers have now faced four years of financial stress, just like the rest of our major commodities, but with a weaker safety net,” Perdue said. “In particular, cotton producers confront high input and infrastructure costs, which leaves them more financially leveraged than most of their colleagues. That economic burden has been felt by the entire cotton market, including the gins, cooperatives, marketers, cottonseed crushers, and the rural communities that depend upon their success.” The sign-up period for the CGCS program runs from March 12 to May 11. Under the program, which is administered by the Farm Service Agency, cotton producers may receive a cost share payment, which is based on a producer’s 2016 cotton acres reported to FSA multiplied by 20 percent of the average ginning cost for each production region. Perdue added, “I hope this will be a needed help as the rural cotton-growing communities stretching from the Southeastern U.S. to the San Joaquin Valley of California prepare to plant. This infusion gives them one last opportunity for assistance until their Farm Bill safety net becomes effective.” The CGCS payment rates for each region of the country are: Southeast—Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia—Cost of ginning per acre=$116.05; CGCS Payment Rate=$23.21; Mid-South—Arkansas, Illinois, Kentucky, Louisiana, Missouri, Mississippi, Tennessee—Cost of ginning per acre=$151.97; CGCS Payment Rate=$30.39; Southwest—Kansas, Oklahoma, Texas—Cost of ginning per acre=$98.26; CGCS Payment Rate=$19.65; and West—Arizona, California, New Mexico—Cost of ginning per acre=$240.10; CGCS Payment Rate=$48.02. CGCS payments are capped at $40,000 per producer. To qualify for the program, cotton producers must meet conservation compliance provisions, be actively engaged in farming and have adjusted gross incomes not exceeding $900,000. FSA will mail letters and pre-filled applications to all eligible cotton producers. The program was established under the statutory authority of the Commodity Credit Corporation Charter Act.

Source: High Plains Journal

Back to top

China Brand Show to debut at ATS show in Canada

Sourcing (ATS) show in Canada. The three-day international tradeshow scheduled to begin from August 20, will expand into new categories, attracting visitors from a wide variety of industries, with more than 5,000 retailers, manufacturers, designers, buyers and business representatives. "The growth of ATS Canada – which debuted in 2016 – is the result of increased interest among the Canadian public in manufacturing and importing apparel and textiles, as well as the general growth of international trade of higher-quality, ethically-manufactured products,” said Jason Prescott, CEO of JP Communications, ATS Canada producer. "Toronto in particular has proven to be a hot spot for a show such as ATS Canada, with its residents originating from hundreds of different countries, a thriving retail and entrepreneurial environment and the economic strength of Canada in general being an attraction for industry players globally eager to do business in this country,” Prescott added, explaining that this year’s growth follows a 50 percent expansion of the show in 2017. Explaining that new show features and offerings will take ATS Canada 2018 to the next level, Prescott said, "The introduction to Toronto of the China Brand Show, which has seen huge success in the US after launching in 2002 in cities such as Los Angeles and Las Vegas, is a major feat for local businesses that are poised to benefit from making unprecedented connections and securing deals with top-rate international suppliers right on their home turf." Occupying an area of about 3,000 square metres, the China Brand Show will bring to Toronto more than 100 Chinese enterprises in 150 booths, "The diversified range of the commodities being showcased demonstrates the latest Chinese economic achievements and provides visitors with a rare opportunity to get familiarised with both China and Chinese brand products without the need to travel," said Miao Huawei, director, trade development bureau of the Chinese Ministry of Commerce (MOFCOM). In addition to exhibits from Canada and China, the event is expected to feature goods from Bangladesh, India, Pakistan, US, UK, Turkey, Switzerland, Spain, Nepal and more. A major conference on topical industry issues will take place simultaneously at the show. ATSC is supported by many international governments and associations, including the Canadian Apparel Federation, the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), Pro Mexico and the Bangladesh High Commission on behalf of the Export Promotion Bureau and the Bangladesh Garment and Manufacturers Export Association.

Source: Fibre2Fashion

Back to top