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MARKET WATCH 13 MARCH, 2018

NATIONAL

INTERNATIONAL

Textile ministry launches study on MMF sector

Despite having enormous potential, strong fundamentals and raw material base, the MMF textile export has been stagnant at around $6 billion only during the last couple of years. Surat: The ministry of textile and the textile commissioner’s office have launched a study to promote growth of man-made fibre (MMF) textile in India and to identify the gaps and suggest measures during the mega event ‘Textile in Karnataka’ on Monday. The Synthetic and Rayon Export Promotion Council (SRTEPC) has stated that the study on the MMF sector is aimed at demystifying the factors responsible for the stagnation of the MMF textile segment in India. India is the second largest world producer of polyester and viscose, but when it comes to export in MMF textile, India is ranked 6th in the world. The study will give a road map to identify gaps and suggest measures. It is going to be a benchmark study in shaping the MMF textile segment in India.SRTEPC chairman Narain Aggarwal said, “A document seeking the expression of interest (EOI) was handed over to the SRTEPC by minister of textiles Smriti Irani during the event in Karnataka. Surat: The ministry of textile and the textile commissioner’s office have launched a study to promote growth of man-made fibre (MMF) textile in India and to identify the gaps and suggest measures during the mega event ‘Textile in Karnataka’ on Monday.The Synthetic and Rayon Export Promotion Council (SRTEPC) has stated that the study on the MMF sector is aimed at demystifying the factors responsible for the stagnation of the MMF textile segment in India. The study will give a road map to identify gaps and suggest measures. It is going to be a benchmark study in shaping the MMF textile segment in India.SRTEPC chairman Narain Aggarwal said, “A document seeking the expression of interest (EOI) was handed over to the SRTEPC by minister of textiles Smriti Irani during the event in Karnataka. The study will be to understand the successful strategies of the countries such as China, Indonesia, Vietnam, Bangladesh and Cambodia in order to enhance production and consumption of MMF textiles.”Aggarwal stated that the study will suggest measures and innovative ideas to cater to the consumer requirements and improve competitiveness of Indian MMF textile both in domestic and export markets and help India emerge as the leading country in MMF textile production and exports. Today, Indian MMF textiles industry produces almost everything that is of good international standard and quality and is one of the leading exporter to EU and America. India is the second largest world producer of polyester and viscose, but when it comes to export in MMF textile, India is ranked 6th in the world.

Source: Time of India

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Centre taking steps to push textiles, apparel exports: Minister

Minister of State for Textiles, Ajay Tamta, Monday said that the Centre has taken several steps to improve textile and apparel exports. In a written reply in the Rajya Sabha Ajay Tamta said the government has enhanced rates of Merchandise Exports from India Scheme (MEIS) from 2 per cent to 4 per cent for apparel and made-ups with effect from 1st November 2017. He added that the government has also revised post-GST rates of Rebate of State Levies (RoSL) Scheme implemented from 1st October 2017 and exempted IGST on import under Advance Authorization and Export Promotion Capital Goods Scheme. The Minister further said that the Finance Ministry has been requested for allocation of appropriate funds under RoSL for one time settlement of exporters’ claim and faster and complete refund of Input Tax Credit. In Reply to another question, the MoS Textiles said major issues raised by apparel industry include delay in Input Tax Credit (ITC) refunds, reduction in rates of Rebate for State Levies (RoSL) Scheme, appreciation of Indian Rupee, high Interest Rate and lack of Preferential Market Access as compared to competing nations. He said, the Government has constituted a Committee on Exports under the Revenue Secretary of Ministry of Finance for evolving a suitable strategy for promoting exports post implementation of GST.

Source: SME Times

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Smriti Irani assures Textile Park for Karnataka

Bengaluru: Union Textiles Minister Smriti Irani has assured a Rs. 100 crore Textile Park for Karnataka. Speaking at the inauguration of Textile sector Buyer-Seller meet and launch of Power Tex portal and mobile app in Bengaluru, Mrs Irani asked the State Government to provide land for the textile park. As an assistance to silk weavers, she informed that her ministry is prepared to sanction five crore rupees for setting up of Yarn bank in the state. Mrs Irani said, powerloom owners can upgrade their plain powerlooms to semi-automatic looms by availing Rs. 20,000 per loom incentive from the ministry. For those adopting solar power, the ministry will provide 50 to 90 percent subsidy and for the future of Man-made fibre a road map is ready in collaboration with the textile industry. The ministry has announced a package of Rs. 1300 crore for the skill development in the apparel industry. After inaugurating the power tex portal and mobile app that provides information about various schemes and incentives of the textile ministry, Union Chemicals and Fertilisers Minister Ananth Kumar assured the silk growing farmers that their request to increase import duty on silk from 20 to 35 percent will be looked into under consultations with the Prime Minister. The silk farmers have been demanding for duty increase but silk fabric manufacturers are seeking its reduction.Hence Union Minister Ananth Kumar has asked both to come to a consensus and approach the Government. The announcement of Textile park by the textile minister was welcomed by the textile industry in Bengaluru on Sunday. Those finding it hard to buy silk yarns will benefit from the proposal to set up yarn bank. The minister has said her ministry will support any number of yarn banks proposed by the Industry. Powerloom owners, she pointed out can upgrade their plain power looms to semi-automatic looms by availing 20,000 rupees per loom incentive from the ministry. For those adopting solar power, the ministry will provide 50 to 90 percent subsidy.

Source: The Indian Awaaz

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Growth engine gets twin boost from IIP, CPI data

NEW DELHI: India’s industrial growth accelerated in January while inflation eased for the second month running in February, providing a twin boost to the economy and suggesting overall economic growth could accelerate further from the five-quarter high recorded in the October-December period. Industrial production growth rose higher than expected to 7.5% in January from 7.1% in the previous month, data released by the government showed, on the back of strong manufacturing. The simultaneously released Consumer Price Index (CPI) showed a further decline in retail inflation to 4.44% in February from 5.1% in the previous month. “This looks like an early sign of industrial revival,” said Devendra Kumar Pant, chief economist at India Ratings, a Fitch Group company.  “It looks like post demonetisation and goods and services tax (GST) implementation, finally the industrial sector is gaining traction.” India reclaimed the title of fastest growing major economy in the October-December quarter by recording 7.2% growth compared to China’s 6.8%.BROAD-BASED REVIVALThis is the third successive month of 7%-plus industrial growth in India. The economy is forecast to grow 6.6% in the current year, though with growth picking up, the final number could be higher. “Three successive months of growth is proof enough that we have recovered. This indicates sustainability to an extent,” said Madan Sabnavis, chief economist at CARE Ratings. The data should bolster the government that faces an election next year. In terms of industries, 16 out of 23 industry groups in the manufacturing sector showed positive growth in January 2018. Overall, the manufacturing sector grew 8.7%, electricity 7.6% but mining was flat at 0.1%. Capital goods surged 14.6% compared with a 0.6% contraction in the year-ago period. Consumer durables contributed to the acceleration with 8% growth, indicating a recovery in urban demand. Consumer non-durables sector was up 10.5%, reflecting rural buoyancy. “Visible improvement in industrial output, which rose to 7.5% at the onset of the New Year as against 3.5% last year, augurs well for the return of broad based recovery in industrial performance during the year,” the Confederation of Indian Industry (CII) said in a release.

INFLATION FEARS RECEDE

The slide in inflation from a 17-month high of 5.21% in December to within sight of the Reserve Bank of India’s target 4% rate should cause price worries to recede. “This lowers pressure on the central bank to shift gears to a hawkish stance at the April review, with a similar tune likely to extend into June,” said Radhika Rao, India economist at DBS Bank. “FY19 numbers will largely be rangebound between 4.5-5%, providing the headroom to keep rates on hold in 2018.” The central bank has kept interest rates stable after a 25 basis point cut in August. Stable interest rates will support growth. A basis point is 0.01 percentage point. The decline was due to the fall in food inflation to 3.26% last month compared with 4.7% in January. Fuel and light inflation was 6.8% in February against 7.58% in January, while housing inflation was 8.28%, almost unchanged form 8.33% the previous month.The RBI’s Monetary Policy Committee last month expressed concern about continued inflationary risks, citing high food and global crude oil prices and the government’s decision to increase spending for the year starting April to support a struggling farm sector. Inflation in vegetables was 17.57% last month, down from 26.97% in January, and for fruits it was 4.80% against 6.24%. Milk and milk products were less expensive, with an inflation print of 3.8%, while that of cereals and products was 2.10%, meat and fish was 3.31% and eggs at 8.51%. Inflation for the fuel and light category was at 6.80% in February against 7.73% in January.

Source: Economic Times

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Manufacturing outlook positive for January-March quarter: FICCI

Manufacturers in the country have a positive outlook for the sector in the January-March quarter on the back of higher production, a report by industry body FICCI today said. Low growth is expected in textile machinery and textiles sector in the January-March 2018 quarter, it added. Manufacturers in the country have a positive outlook for the sector in the January-March quarter on the back of higher production, a report by industry body FICCI today said. “…the percentage of respondents reporting higher production in fourth quarter has increased significantly vis-à-vis previous quarter of 2017-18. The proportion of respondents reporting higher output growth during the Q4 2017-18 has increased significantly to 55 per cent from 47 per cent in Q3,” FICCI said in its latest quarterly survey on manufacturing. Also, the percentage of respondents reporting low production has come down to 11 per cent in the fourth quarter from 15 per cent in the preceding quarter, it added. In terms of order books, 51 per cent of the respondents said they are expecting higher number of orders as against 42 per cent in the previous quarter, which is “a sign of revival”, the industry body said. The survey assessed the expectations of manufacturers in 12 major sectors including automotive, capital goods, pharmaceuticals, food products and textiles among others. Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3 lakh crore. The report said high growth is expected in the automotive and capital goods segments in the fourth quarter, while segments like cement and ceramics, leather and footwear, chemicals and pharmaceuticals are expected to see moderate growth. Low growth is expected in textile machinery and textiles sector in the January-March 2018 quarter, it added. “The cost of production as a percentage of sales for manufacturers in the survey has risen significantly for 62 per cent respondents in Q3 2017-18. This is primarily due to increase in cost of raw materials, increased wages, power cost and higher GST rates on certain products,” the report said.

Source: Financial Express

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E-way bill for inter-state movement of goods from April 1

Introduction of e-way bill for inter-state movement of goods across the country from April 1, 2018, is among the recommendations made by the GST Council at its 26th meeting in New Delhi. For intra-state movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than June 1, 2018. The Council has approved major improvements over the last set of rules. E-way bill will be required to be generated only where the value of the consignment exceeds Rs 50000, an e-way bill will be required for smaller value consignments. The provisions of sub-rule (7) of Rule 138 will be notified from a later date. Therefore, at present there is no requirement to generate e-way bill where an individual consignment value is less than Rs 50,000, even if the transporter is carrying goods of more than Rs 50,000 in a single conveyance. Value of exempted goods has been excluded from value of the consignment, for the purpose of e-way bill generation. Public conveyance has also been included as a mode of transport and the responsibility of generating e-way bill in case of movement of goods by public transport would be that of the consignor or consignee. Railways has been exempted from generation and carrying of e-way bill with the condition that without the production of e-way bill, railways will not deliver the goods to the recipient. But railways are required to carry invoice or delivery challan etc. Time period for the recipient to communicate his acceptance or rejection of the consignment would be the validity period of the concerned e-way bill or 72 hours, whichever is earlier. In case of movement of goods on account of job-work, the registered job worker can also generate e-way bill. Consignor can authorise the transporter, courier agency and e-commerce operator to fill PART-A of e-way bill on his behalf. Movement of goods from the place of consignor to the place of transporter up to a distance of 50 km (increased from 10 km earlier) does not require filling of PART-B of e-way bill. They have to generate PART-A of e-way bill. Extra validity period has been provided for Over Dimensional Cargo (ODC). If the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period in case of transhipment or in case of circumstances of an exceptional nature. Validity of one day will expire at midnight of the day immediately following the date of generation of e-way bill. Once verified by any tax officer, the same conveyance will not be subject to a second check in any state or Union territory, unless and until, specific information for the same is received. In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods. Movement of goods on account of Bill-To-Ship-To supply will be handled through the capturing of place of despatch in PART-A of e-way bill. (RKS)

Source: Fibre2Fashion

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Rupee rises 13 paise to 65.04 amid stock rally

The rupee today rose by 13 paise to close at 65.04 against the US currency on the back of foreign fund inflows after sharp gains in equity markets and weakness in the dollar against global currencies. Foreign funds returning to the stock markets and the dollar's losses against the Asian peers bolstered the Indian currency, a forex trader said. Asian currencies rose against the dollar after the jobs report on Friday suggested the stability in the US economy but without any wage increase which helped rein in inflationary concerns, a dealer said. The dollar index was trading at 90.01, down 0.09% from its previous close of 90.093. Crude oil prices receding from their last weekend's high level on expectations that the US production will increase in 2018 also propped up the domestic currency. The rupee opened on a strong note and surged by 23 paise to 64.94 against the US dollar at the interbank forex market on fresh selling of the greenback by exporters and banks. Later, it gave up some of its gains to touch a low of 65.0675 in day trade but closed at 65.04 per dollar, a gain of 13 paise or 0.19 per cent over the previous close on Friday. According to the provisional stock exchange data, foreign investors put in Rs 374.65 crore in equity markets on net basis today. Stocks also zoomed as trade war fears took a back seat after growing prospects of the US economy, with the BSE Sensex posting its biggest single-day gain in two years. The 30-share Sensex rose by 610 points or around 1.8 per cent to close at 33,917.94. Meanwhile, the Reserve Bank of India fixed the reference rate of the rupee at 65.0199 against the US dollar and 80.0915 for the euro. In the cross currency trade, the rupee closed flat at 90.06/08 against the pound sterling.It strengthened against the euro to finish at 79.98 from 80.16 earlier. The Indian unit also edged up against the Japanese yen to conclude at 61.01 per yens from 61.04 yesterday.

Source: Economic Times

Govt forms panel to probe illegal cultivation of HT Cotton

New Delhi : The government has constituted a committee to investigate into illegal cultivation of HT cotton in four states, a Union minister said today. Replying to a question in the Rajya Sabha, Minister of State for Textiles Ajay Tamta said the government has received several representations for ban of illegal cultivation of Herbicide Tolerant (HT) or BG-III cotton in the country. There are several media reports and complaints regarding the illegal or unauthorised cultivation of HT cotton in Andhra Pradesh, Telangana, Gujarat and Maharashtra, he informed the House. "Department of Biotechnology in the Ministry of Science and Technology has constituted a Field Inspection and Scientific Evaluation Committee (FISEC) to investigate the matter of illegal cultivation of HT cotton," Tamta said. The minister also said that the cultivation of BG-III or HT cotton has not been approved by Genetic Engineering Approval Committee (GEAC) of the Ministry of Environment. In a separate reply, Tamta said that the Finance Ministry has been requested for allocation of appropriate funds under Rebate for State Levies (RoSL) Scheme for one time settlement of exporters claim and faster and complete refund of Input Tax Credit. He said major issues raised by apparel industry include delay in Input Tax Credit (ITC) refunds, reduction in rates of RoSL, appreciation of Indian Rupee, high interest rate and lack of preferential market access as compared to competing nations. He said the government has constituted a committee on exports under the revenue secretary for evolving a suitable strategy for promoting exports post implementation of GST. PTI RSN MR MR

Source:  India Today

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Indian cotton likely to see uptick in coming days: CAI chief

Indian cotton is poised to see more uptick in the coming days and the overall price trend in the ongoing marketing season 2017-18 (October-September) is likely to remain firm on high demand from local ginners and exporters alike, Cotton Association of India (CAI) President Atul Ganatara said. Domestic cotton prices were down at the local bourse and spot markets on Monday even though prices shot up considerably last week by tracking firmer cues from international markets, and therefore correction was seen at a higher level, Ganatara told IANS on phone from Mumbai. However, there is the least possibility of any further big price fall as the CAI has revised its estimates for cotton demand and supply in the country on the lower side after getting crop reports from all its centres, the CAI chief added. The CAI pegged India's cotton output in 2017-18 at 362 lakh bales, five lakh bales down from the previous monthly estimates of 367 lakh bales in its Crop Committee meeting on March 9. As per the minutes of the meeting released on Monday, cotton production is down by two lakh bales each in Karnataka and Andhra Pradesh, and an estimated one lakh bales elsewhere. According to a CAI statement, exports have increased from the earlier estimated 55 lakh bales to 60 lakh bales because India's cotton is presently the cheapest in the world and hence commands a good demand. By March 31, Indian cotton exports may cross 45 lakh bales. Besides, Indian mills consumption has increased by 10 lakh bales from 320 lakh bales to 330 lakh bales in the new estimated balance sheet given out by the CAI. This increase in consumption is because of 35-40 lakh new spindles set up in ginning mills in Gujarat, where cotton consumption is likely to be 65 lakh bales this year. The carry forward in the balance sheet for 2017-18 is going to be reduced to 22 lakh bales from the earlier estimated 42 lakh bales as of September 30, the CAI said. According to the CAI, the reduction of 20 lakh bales in carry-forward stocks is due to an increase in consumption by 10 lakh bales by Indian mills and rise in exports by 5 lakh bales. Also, output has been lowered by five lakh bales from last month's forecast. This reduction is based on talks with cotton associations of these states, mainly due to pink bollworms problem and lack of water in these areas, the CAI said. By 3.25 p.m. on Monday, cotton for delivery in March was Rs 210 or 1 per cent down at Rs 20,730 per bale (170 kg) at theMulti Commodity Exchange (MCX). Similarly, the April expiry contract was up Rs 200 or 0.94 per cent at Rs 20,990 per bale. Spot prices also declined across the country, tracking weak cues from futures. Meanwhile, China has started selling cotton from its reserve stocks in the state-owned warehouses. Website cnctton.com reported on Monday that China State Reserve sold 14,119.18 tonnes of cotton out of 15,000.26 tonnes put up for first auction on Monday in the current season. According to Ganatara, China had liquidated 1.5 crore bales of cotton last year with the same target for the ongoing season. Since stocks of cotton in China are not sufficient to fulfil their mills' demand, their import demand is expected to rise by the end of the season.

Source: Business Standard

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PHD chamber urges central govt to implement pending manufacturing policy

New Delhi : Chamber of Commerce and Industry (PHDCCI) released a report titled “Kashmir, the Way Forward” at the promotional event in New Delhi on March 09, 2018. With a view to facilitate the local small medium enterprises (MSME) for making them self sufficient for their growth and development, PHDCCI recommended the central government to implement the National Manufacturing Policy in Jammu and Kashmir in its release. As per the reports, PHDCCI also suggested the government to implement national program on handicrafts and handlooms in the state as well. Other recommendations made in the report are implementation of the National Handicraft Development Program of Development Commissioners Handicrafts in the state for the socio-economic empowerment of handicraft artisans and carpet weavers through involvement of stakeholders in the state level project committee (SLPC) and the review of mega carpet cluster and media handicraft cluster that implemented in the state. Further the report states that with a view to strengthen the carpet industry and other handicrafts skilled human resources and assets created under these two schemes are required to be augmented. The report has recommended that due to the unorganized nature of handloom sector all handloom products be kept out of Goods and Services Tax (GST) basket. The report further states that state government must ensure that benefits if loan sanctioned by World Bank for revival of sericulture and silk industry should reach to sericulture farmers and sellers through Farmer Producer Organisations (FPO’s). The report further says though industrial status has been granted to tourism sector in the state but “incentives and benefits like SSI, MSME units need to be extended to this sector,” the report states. Further additions in the report are no restrictions on expansion and up-gradation of existing tourism in line with the current market needs with ultra modern services and interior designs. “There is need of golf courses at par with international standards in all tourist destinations of the Valley especially Sonmarg and extension of its marketing development incentives and one time incentives to tour operators of Valley,” the report adds. With regard to general trade especially Fast Moving Consumer Goods ( FMCG), the PHDCCI report suggests that government should encourage establishment of warehouses of major companies selling their products in the state which will generate employment for around 5000 people. There is also An urgent need of transparent high level project monitoring team to monitor infrastructure projects and make all information accessible online to people, the report states. It has also suggested that a grievance cell be made operational at the Lower Munda office of the Commercial Taxes Commissioner for redressal of any grievance of local dealers and hydro electric power potential of the state needs to be tapped for establishment of small and mini hydel power projects to make the state self sufficient in power generation and round the clock power supply for the industry and commercial establishments as well as domestic use.

Source: Knn India

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Struggling to preserve the weaving tradition

KOCHI: India has always been a country where arts and crafts have contributed to the cultural heritage. However, the handloom sector is dwindling. As a result, there are very few workers, who follow traditional-weaving techniques. One such person is Mani, who has been into weaving for the past 30 years. Based in Kanjiramattom, Mani works in a handloom co-operative society. He is a master thorthu weaver. It is an art which he imbibed from his ancestors. “I come from a weaver’s family,” he says. “I saw my brothers and mother weaving and learnt the techniques from them. I have travelled to places like Hyderabad and Mumbai to buy yarn and other materials.” The thorthu is the traditional Kerala fabric woven of pure cotton and is known for its soft, light-weight, quick-drying, and highly-absorbent qualities. It has been historically indispensable in Kerala households. But despite its importance, Mani has watched the cooperative shrink due to the dwindling demand and an influx of cheap power-loom products. As a result, hand-weaving is no longer financially viable and has no aspirational value. “The weaver gets only Rs 200 for his work,” he says. “If one weaves more than six metres a day, it is then that they can get double wages as an incentive. Now changes have come in the scheme of income support for farmers where the farmers get Rs 150 from the government.” However, for Mani, the situation is different. He is very much appreciated for his designs on towels and has also been doing the buttas, silk saris embellished with Kanchipuram pattu. He also does all the works related to the pre-looming process including weaving, bleaching, and warping. So, he gets orders from different places in Kerala. Besides weaving thorthu, Mani also makes school uniforms which are distributed by the government for free. Presently, in the co-operative where he works, there are about seven people who are involved in handloom production. Even as India’s hand-woven fabrics are being celebrated on runways and exclusive shops around the world, compensation among weavers remains unreasonably low, as compared to other skilled labourers. As for Mani, he has received numerous awards including an award from the state as well as the Kerala handloom cooperative society for his fine craftsmanship. “I have been taking orders from many clothing stores including Kara weaves and I wish to continue my work,” he says. His day starts at 8.30 am in the handloom co-operative and at 4.30 pm he finishes his work and heads home.

Source: The New Indian Express

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Govt. to promote technical textiles

The State Government has allocated Rs. 25 lakh to Sir Vallabbhai Patel International School of Textiles and Management to encourage entrepreneurship in technical textiles, said the Minister for Handlooms and Textiles O.S. Manian here on Saturday. Speaking at the two-day workshop on technical textiles Mr. Manian said that a dedicated technical textiles wing has been created at the institute.The State Government is taking every effort to support the development of the handloom and textiles sector, he added. Minister for Municipal Administration and Rural Development S.P Velumani, who inaugurated the workshop, said the government has constructed 575 green houses for handloom weavers at a cost of Rs. 14.95-crore. K. Phanindra Reddy, Principal Secretary, Handlooms, Handicrafts, Textiles and Khadi Department, said technical textiles provides new opportunity to the Indian textile industry. Earlier, the Ministers visited an exhibition on technical textiles organised on the Institute campus. C. Rameshkumar, director of the institute, said in the first phase, workshops, seminars and training programmes would be organised for potential entrepreneurs in select technical textile products. In the next phase, they would be assisted to develop business.

Source: The Hindu

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Soon, Bengaluru to get garment university

BENGALURU: The IT capital Bengaluru will soon get a garment university, Union Minister for Fertilizers and Parliamentary Affairs Ananth Kumar announced here on Sunday. Addressing a rally organised by BJP Mahila Morcha as part of International Women’s Day celebrations at Bommanahalli constituency in the city, Ananth Kumar said there are many garment factories in Bommanahalli which have provided employment to a huge number of women. A garment university will be established in Bommanahalli soon. Union Minister for Textiles Smriti Irani has already approved the proposal, he said. Smriti Irani, who inaugurated the rally, in her address, said the BJP government at the Centre has allocated `6,000 crore for the welfare of garment workers. At the same time, the government has made it mandatory for all garment factory owners to set up an internal complaints committee to look into instances of harassment of women employees. She accused the Siddaramaiah government of total failure in maintaining law and order in the state.”Bengaluru is not safe in the hands of the Congress government. Law and order in Bengaluru is in shambles. Even policemen’s wives are attacked and their mangalasutra snatched. This is a telling comment on the state of affairs,” she said.

Source: The New Indian Express

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Global Textile Raw Material Price 2018-03-12

Item

Price

Unit

Fluctuation

Date

PSF

1445.06

USD/Ton

0%

3/12/2018

VSF

2313.67

USD/Ton

0.34%

3/12/2018

ASF

2763.78

USD/Ton

0%

3/12/2018

Polyester POY

1366.09

USD/Ton

-0.57%

3/12/2018

Nylon FDY

3648.18

USD/Ton

0%

3/12/2018

40D Spandex

6001.34

USD/Ton

0%

3/12/2018

Nylon POY

5969.75

USD/Ton

0%

3/12/2018

Acrylic Top 3D

1610.89

USD/Ton

-0.29%

3/12/2018

Polyester FDY

3395.50

USD/Ton

0%

3/12/2018

Nylon DTY

2969.08

USD/Ton

0%

3/12/2018

Viscose Long Filament

1626.68

USD/Ton

0%

3/12/2018

Polyester DTY

3829.80

USD/Ton

0%

3/12/2018

30S Spun Rayon Yarn

3016.46

USD/Ton

0%

3/12/2018

32S Polyester Yarn

2195.23

USD/Ton

-0.71%

3/12/2018

45S T/C Yarn

3016.46

USD/Ton

0%

3/12/2018

40S Rayon Yarn

2353.16

USD/Ton

0%

3/12/2018

T/R Yarn 65/35 32S

2542.67

USD/Ton

0%

3/12/2018

45S Polyester Yarn

3158.60

USD/Ton

0%

3/12/2018

T/C Yarn 65/35 32S

2684.81

USD/Ton

0.59%

3/12/2018

10S Denim Fabric

1.47

USD/Meter

0%

3/12/2018

32S Twill Fabric

0.90

USD/Meter

0%

3/12/2018

40S Combed Poplin

1.26

USD/Meter

0%

3/12/2018

30S Rayon Fabric

0.71

USD/Meter

0%

3/12/2018

45S T/C Fabric

0.75

USD/Meter

0%

3/12/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15793 USD dtd. 12/3/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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11 nations sign CPTPP trade pact in Santiago

Eleven countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) without the United States last week in Chile’s capital Santiago. The trade pact will reduce tariffs in nations that jointly account for more than 13 per cent of the global economy — a total of $10 trillion in gross domestic product (GDP). The original 12-member agreement, the Trans-Pacific Partnership (TPP), was thrown into limbo in early 2017 when President Donald Trump withdrew from the deal three days after he assumed office, citing protection of US jobs. The 11 remaining nations — Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam — finalized a revised trade pact in January. That agreement will become effective when at least six member nations have completed domestic procedures to ratify it, possibly before the end of this year. The agreement’s final version was released in New Zealand on February 21. “Today, we can proudly conclude this process, sending a strong message to the international community that open markets, economic integration and international cooperation are the best tools for creating economic opportunities and prosperity,” Chilean President Michelle Bachelet was quoted as saying by global news wires. The revised agreement does away with many US demands in the original TPP, including rules to ramp up intellectual property protection of pharmaceuticals. Even without the United States, the deal will span a market of nearly 500 million people, making it one of the world’s largest trade agreements. With the primary target to slash trade tariffs between member countries, the agreement seeks to harmonise non-tariff measures that create obstacles to trade through regulations, or make them transparent and fair. There are commitments to enforce minimum labour and environmental standards as well. It also includes a controversial Investor-State Dispute Settlement mechanism, which allows companies to sue governments when they believe a change in law has affected their profits. (DS)

Source: Fibre2Fashion

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Germany becomes Bangladesh’s largest export market in Jul-Feb

Germany has once again emerged as Bangladesh’s largest export market overtaking the United States in July-February of the current fiscal year 2017-18 due to slow growth in readymade garments export to US market. Earlier, Germany had overtaken the US for the first time as Bangladesh’s largest export market for the July-November period of 2016-17 fiscal and then the US regained its position as the country’s largest export destination, according to Export Promotion Bureau data. Export earnings from Germany in the July-February period of FY18 stood at $3.92 billion which is $23.22 million higher than earnings from the US — $3.90 billion — in the period. Experts and exporters said that slowdown in export of RMG to US market pushed Germany to the top export destination. They termed the trend encouraging as slow growth in US market was covered by growth in another market. Despite poor earnings growth from the beginning of the current fiscal, the US remained Bangladesh’s largest export destination until January this year and Germany went to the top of the list in February. At the end of 2016-17 fiscal, export earnings from the US stood at $5.84 billion while the earnings from Germany were $5.47 billion in the period, the EPB data showed. Earnings from Germany in exporting RMG in the first eight months of the FY18 were $3.70 billion which was $216.73 million higher than the earnings from the US — $3.48 billion — in the period, data showed. ‘The slowdown in RMG export to the US was the main reason for Germany to overtake the US as Bangladesh’s largest export market. Another factor was duty-free market access of Bangladeshi products to European markets, including Germany,’ Centre for Policy Dialogue distinguished fellow Mustafizur Rahman told New Age on Saturday. He said that Bangladesh was losing its competitive edge in US market as competitor countries, like Vietnam, were getting duty-free access to the market. ‘It is good for Bangladesh that the slowdown in US market is covered by growth in export earnings from Germany and other countries. But we should take moves for our strong presence in US market as the destination is important for Bangladesh,’ Mustafiz said. According to data, export earnings from US in the July-February period of FY18 grew by 1.55 per cent to $3.90 billion from $3.78 billion in the same period of FY17. The apparel export to US market in the period increased by 1.64 per cent to $3.48 billion from $3.42 billion in the same period of FY17. Export of RMG products to Germany in the first eight months of FY18 grew by 4.11 per cent to $3.70 billion from $3.55 billion in the same period of FY17. Export earnings from most of the EU countries maintained a moderate growth in the July-February period of FY18. ‘Our competitor countries are gaining more market share in the US as Bangladesh is losing its competitive edge due to lack of strong backward linkage industry for woven products and failure in maintaining lead time,’ Abdus Salam Murshedy, president of Exporters Association of Bangladesh, told New Age. He said that it was true the export earnings growth in US market in the current fiscal was not at the desired level but by the end of the year export target would be met as Bangladesh’s RMG sector had rebuilt its image successfully in the last three years. Salam said that exporters should take moves to regain US market and the government should provide policy support considering the changed global scenario. Export earnings from the UK, the third highest export destination for Bangladesh, in the July-February period of FY18 increased by 17.66 per cent to $2.70 billion from $2.29 billion in the same period of FY 17. Export earnings from France in the period grew by 5.26 per cent to $1.30 billion from $1.23 billion in the same period of last fiscal. According to the EPB data, export earnings from Canada in the eight months of FY18 grew by 8.64 per cent to $737.27 million from $678.61 million in the same period of FY17. Export to Spain in the July-February period of FY18 grew by 24.39 per cent to $1.63 billion. Export earnings from Poland in the period grew by 25.01 per cent to $641.47 million from $513.16 million in the same period of last fiscal. Export earnings from Japan increased by 4.08 per cent to $731.93 million in the period. Exports to China fell by 27.20 per cent to $459.11 million from $630.66 million in the same period of FY17. Export earnings from India grew by 13.60 per cent to $531.97 million from $468.25 million in the same period of FY17.

Source: New Age BD.

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Bangladesh : Apparel exports to new markets on the rise

Garment exports to non-traditional markets rose 3.77 percent year-on-year to $2.56 billion in the July-January period of the current fiscal year thanks to preferential trade benefit and fiscal incentive. Apparel shipments fetched $2.47 billion in the same period last fiscal year, according to data from the Export Promotion Bureau. In 2008, garment exports to the emerging markets stood at only $800 million. Since then it started climbing and rose five times to $3.90 billion in 2015-16. Bangladesh considers all countries as non-traditional markets except for its key destinations such as the European Union, the US, and Canada. India, China, Russia, Japan, South Africa, Turkey, Brazil, Chile, Mexico, South Korea, Malaysia, Australia, and New Zealand are among the major non-traditional markets for the garment sector. Shipments to the emerging markets are rising on the back of zero-duty benefit granted to Bangladesh, opening of retail stores by global brands, market diversification by local exporters, and the government's fiscal incentives. Bangladesh receives the zero-duty benefit to markets such as Japan, India, and China. As a result, shipments to the markets are rising at a faster rate. Riding on the relaxed rules of origin, garment export to Japan grew 1.94 percent to $445.99 million in July-January and is expected to cross $1-billion mark at the end of the year. “Japan is a very promising market for us. Japan is the second largest export destination after the EU for our company,” said Balaram Roy Chowdhury, general manager of Narayanganj-based Metro Knitting & Dyeing Mills Ltd. Chowdhury expects his company to send $45 million worth garment items to Japan in 2018, up from $40 million last year. In 2011, China granted duty-free export facility to Bangladesh for nearly 5,000 items, mostly garments. Local garment exporters also enjoy duty-free export benefit to India, although they are facing 12.5 percent countervailing duty at present. Fazlul Hoque, managing director of Plummy Fashions Ltd, said the opening of retail stores by western major brands and retailers in the non-traditional markets such as India and South America has boosted garment exports from Bangladesh. Exports to Brazil, Chile and Mexico are growing at a faster rate, said Hoque, who supplies apparel items to Falabella, the biggest brand in Latin America. China has also established its own brands and retailers to cater to local customers and these brands buy apparel items from Bangladesh in bulk amid Chinese manufacturers' growing reluctance to produce basic garments. Hoque said the market diversification initiatives undertaken by both the government and the exporters were paying off. The government began giving cash incentives on garment exports to emerging markets to help exporters weather the impact of the global economic crisis of 2007-08.

Source: The Star

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Cambodia : Early data show decline in garment sector growth

The labour minister said on Monday that Cambodia’s garment sector grew by 4 percent last year to reach $7.6 billion, which would mark a slowdown in the growth rate compared to previous years. Ith Sam Heng made the remarks at the ministry’s annual meeting, noting that the $7.6 billion amount was up from $7.3 billion in 2016. According to previously reported government data, the sector grew by 7.2 percent in 2016, up from $6.8 billion the year before. It’s the first official reporting of 2017 export data for the sector. Export data are traditionally released by the Customs Department at the Ministry of Economy and Finance, however government officials have reported that the department has not released data from the second half of 2017. Both academics and business insiders have said the lack of accurate data harms research and business in the Kingdom. The “trade statistics” section of the Customs Department’s website yesterday was displaying Lorem Ipsum text, often used by web developers as a placeholder and intended to be replaced with actual content before the site’s launch. The slower growth rate was anticipated by industry representatives.

Slowdown was expected

Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia, said in October that the sector would likely see slower growth than in 2016, which he attributed to the larger base-size for the industry and said was not related to the political situation.

Source: The Phnom Penh Post

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Unlock potential of jute for development: Bangla PM

Bangladesh Prime Minister Sheikh Hasina last week urged all stakeholders in the country to sincerely unlock the huge potential of jute to expedite socio-economic development. She was speaking at the National Jute Day-2018 event and inaugurated a three-day multipurpose jute product fair at Bangabandhu International Conference Centre (BICC) in Dhaka. "We can produce better jute and jute products. If we can work together, we can tap the enormous potentials of jute for country's development," Bangladeshi media reported quoted her as saying. She also stressed the need to upgrade old machinery in state-run jute mills and diversify the range of jute products to capture the world market. Around 235 kinds of jute products were displayed at the three-day fair.

Source: Fibre2fashion.

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Pakistan is About to Get a $7 Billion Infusion and 1,000 New Garment Plants to Revive its Textile Industry

Pakistan and its textile sector have been facing challenging times in recent years, owed in part to costs of production increasing at a pace faster than its neighboring competitors, but a new infusion of funds could help get the country back on better footing. The All Pakistan Textile Mills Association (APTMA) announced that its members have a plan to increase investment in Pakistan’s textile industry by establishing 1,000 garment manufacturing plants with a total of $7 billion in investments, according to Pakistan’s The Express Tribune. The plan is to set up garment plants near major textile producing cities like Lahore, Sheikhupura, Faisalabad, Kasur, Multan, Sialkot, Rawalpindi, Karachi and Peshawar, with the plants installing half a million stitching machines, which will boost annual production to 3 billion pieces. Pakistan’s textile industry has experienced decreasing investments over the last decade, as potential investors have been hesitant to make new investment due to high business costs. This has caused the sector to miss out on technological advantages to its competitors. New investments dropped to more than half a billion rupees ($4.52 million) in 2016-17, compared to 1 billion rupees ($9 million) in 2005-06, the Tribune said citing APTMA. Further, currently about 35 percent of the textile industry’s production capacity was damaged, causing loss of approximately $4.14 billion worth of potential exports. Once the proposal is implemented, the industry will need an additional 10.3 million bales of raw cotton, 345 million kilograms of manmade fiber, 1.98 billion kilograms of additional yarn and an additional 7.93 billion square meters of processed fiber. However, cotton-producing area and cotton production have decreased 30 percent and 38 percent, respectively, in Punjab since 2011. Although the textile sector performed poorly overall, readymade garments did show reasonable growth. According to the Pakistan Bureau of Statistics, exports of readymade garments registered 5.55% year-on-year growth against the overall flat growth of the textile sector, which stood at $12.45 billion in 2016-17. APTMA members has reportedly provided the government with a long list of corrective and conducive policy measure demands in return for their investments, including implementation of long-term policies, like consistent nationwide energy prices, removal of 3.50 rupees (3 cents) per kilowatt hour surcharge on electricity tariff, an extension of the duty drawback scheme for five years and drawbacks to be increased every year by 1 percent for garments (up to 12 percent) and made-ups (up to 10 percent) against realization of export proceeds. The proposal also suggested the government allow LTFF (long-term financing facility) to indirect exports, Islamic financing and building of infrastructure for garment plants.

Source: Sourcing Journal Online

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International cotton price movements were mixed past month

Movement in international benchmark prices was mixed over the past month, with NY futures and the A Index increasing, South Asian prices flat to lower, and Chinese prices stable. Indian spot prices (Shankar-6 quality) were flat to higher, holding to levels near Rs 40,000/candy (356 kg) throughout most of February and rose to Rs 41,000/candy in early March. Prices for the May NY futures contract have trended higher since late February. In the first full week of March, there was a surge that briefly lifted values over 85 cents/lb and new life-of-contract highs. Shortly after, there was a collapse, with values dropping 3-4 cents. In the latest trading, prices have been rising again, with the most recent values 84 cents/lb. The A Index also increased over the past month. The most recent values, near 92 cents/lb, are about five cents/lb higher than those a month ago, US based Cotton Incorporated said in its latest monthly economic letter ‘Cotton Market Fundamentals & Price Outlook’. Meanwhile, the China Cotton Index (CC Index, base grade 3128B) was stable in both international and domestic terms over the past month. In international terms, the CC Index held near 113 cents/lb. In domestic terms, prices held near 15,000 RMB/ton. In Pakistan, in international terms, cotton prices decreased from 80 cents/lb to 76 cents/lb in February. In March, prices moved slightly higher, with the latest levels near 78 cents/lb. In domestic terms, prices ranged between Pk Rs 7,300/maund and Rs 6,900/maund, with the latest levels near Rs 7,100/maund. (RKS)

Source: Fibre2Fashion

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Pakistan : Clean cotton fetches handsome foreign exchange

Multan: Incharge Pakistan Cotton Standard Institute (PCSI), Mian Nasir Ali on Monday said that neat and clean cotton could help fetch handsome foreign exchange. Addressing the participants of a concluding session of cotton selectors training workshop here , he said PCSI was playing important role to offer services to private sector for clean cotton. He said PCSI contained 12 (HVI), high volume instrument (HVI) testing machines, which provides cotton growers, ginners, traders and spinning mills with accurate quality parameters for raw cotton. He said PCSI was preparing a good number of experts to manage and promote cotton grading adding that Pakistan could not remain oblivious to the demand of quality-conscious international market and must make strides to promote production of clean cotton. He said, “We must adopt cotton grading, free it from contamination to further improve quality and avoid trouble in exporting cotton, yarn and fabric in coming years”. He said best quality products would fetch a premium price and that would be a significant contribution to improve the national economy through enhanced foreign exchange earnings. The PCSI had imparted training to nearly 5,000 persons, he said adding that PCSI offer such trainings in Karachi, Sukkur and Multan on annual basis.—APP

Source: Pakistan Observer

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Uganda : Decline of cotton production in Lira

When Cotton growing was introduced in Uganda in 1903 by the British Cotton Growers’ Association, Lango sub-region was one of the areas that embraced cotton growing on subsistence scale. Although the Lango were known for cattle-keeping and food crop growing, the region saw a swift paradigm shift to a new gem of crop that brought economic transformation for many households, including affording formal education for their children. This was facilitated by farmers’ support by Lint Marketing Board and later Cotton Development Organisation. Other conducive factors included weather pattern, fertile soil, ready market and establishing of generis across the region. The establishment of Lira Spinning Mill during Obote’s regime further spurred cotton growing given that it created more market demand to meet the high level of production by the mill for internal consumption and external markets in Europe. However, the fall in cotton production started in the early 1970s to mid-1980s. Civil strife, economic turmoil and poor governance befell Uganda and all activities of the cotton sector were severely affected. Being an annual crop, cotton could not survive and as a result, production drastically dropped. Besides, the 1990s and 2000s Lord Resistance Army (LRA) insurgency had an enormous impact on farming in Lango and cotton growing was no exception. The cotton industry in Lango was also severely affected by wrangles between major cotton buyers in northern Uganda. This eventually frustrated farmers who abandoned cotton growing. There was also the rising population that the immense pressure on the land. Farmers started to grow other cash crops, including sunflower, which requires smaller acreage to attain good harvest compared to cotton that requires a large chuck of land if you are to get a good harvest. But the last nail on the coffin of cotton growing in Lango was the introduction of sunflower, which most farmers adopted after the end of the LRA insurgency. Sunflower growing quickly out-competed cotton growing due to high demand and market for the edible oil. Apart from the Mukwano Group, which is a major player in sunflower farming as well as the edible oils industry, there is Mount Meru Company and recently Virgin Gold Oil that join the edible oil industry of recently. The three companies engage in cut-throat competition to get sunflower hence they offer competitive prices to farmers. Therefore, such stiff competition coupled with other challenges that stifled cotton growing out competed the traditional cash crop from the market since sunflower has now turned out to be the new gem to farmers in Lango sub-region.

Source: monitor.co.ug

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Nepal : Study on readymade garments urged

Kathmandu, March 10: Garment producers have urged the government to carry out a study on how cost of production can be brought down and export of readymade garments increased. Citing that the Trade Preference Act of the United States has also provisioned providing technical support to Nepal to boost exports for sustainable economic growth, the Garment Association Nepal (GAN) has urged the Ministry of Industry, Commerce and Supplies to mobilise the support to carry out a study on how the readymade garment sector can be competitive in the global market. Chandi Prasad Aryal, president of GAN, said the government needs to provide incentives to the sector, which could have a significant impact on the growth of small and medium enterprises, ancillary industries and also generate jobs. Nepali garments are 15 per cent more expensive in the global market, but entrepreneurs believe that this difference can be minimised if the government provides facilities to readymade garment producers in the country. The government is developing a Garment Processing Zone (GPZ) in Simara of Bara district to promote the export of readymade garments. However, the project has not yet been completed. As per garment entrepreneurs, the high cost involved in importing raw materials and exporting finished products is the major reason for Nepali garments being less competitive in the international market. “If the construction of GPZ is expedited and completed as early as possible and the government ensures low-cost financing to invest in latest machines in the industries, garment sector can also be revitalised,” said Aryal. “It takes $200 for an Indian garment manufacturer to ferry their goods to the port for exports, however, it costs $1,500 for Nepalis.” Nepal should take advantage of economies of scale in garment sector by bringing advanced machines, making labour and electricity cheaper, and minimising cost of importing raw materials and exports, he added. On top of that, the government should be flexible towards providing tax incentives to the garment factories in the initial years. And to make garments more competitive, the government has to ensure export incentives to exporters. “Once the industry booms, the government can generate more revenue, more jobs will be created and overall economy will get a boost,” said Aryal. Nepal’s readymade garment industry has been on the verge of collapse since the expiry of Multi Fibre Agreement in January 2005, which provided duty-free access for Nepali garments to the US. Prior to phasing out of the quota system, Nepal was exporting garments worth Rs 12 billion and was generating around 500,000 jobs in the sector. Back then, the sector had drawn investment to the tune of Rs six billion. Since then, over 85 per cent of garment factories have pulled their shutters. As per Nepal Rastra Bank, the country has exported readymade garments worth Rs 2.15 billion in the first half of current fiscal 2017-18, an increase of 11 per cent compared to the corresponding period of the previous fiscal. The major export destinations for Nepali garment products are the European Union, India and the US, among others.

Source: The Himalayan Times

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Exhibition on clothing culture of China's 56 ethnic groups opens in U.S.

An exhibition on clothing culture of the 56 Chinese ethnic groups opened Saturday at the San Francisco Public Library (SFPL) in the western U.S. state of California. The garment exhibition, which runs from March 3 through July 3, is the first of its kind that the SFPL has introduced, offering a chance for those in the San Francisco Bay Area to get a glimpse of the colorful and diverse Chinese folk art, with each costume on display reflecting a unique pattern and style of some Chinese ethnic group. All exhibits were donated by Yi Chen Wu Yue Clothing and Accessories Company -- a Beijing-based manufacturer that specializes in Chinese national costumes -- to Dasen American Academy, a non-profit program established by Xiebing Cauthen in California in 2002. At the opening ceremony, a dozen models wearing part of the collection gave a short fashion show to demonstrate the traditions of China's ethnic wear. Zha Liyou, deputy consul general of China in San Francisco, said that China is a country of great civilization with diversified ethnic cultures. These pictures and costumes are impressive and powerful from the perspective of cultural influence, Zha said. "I hope that, through this show, the Chinese community together with other ethnic communities in the United States will work together to create a better future," said Zha. An organizer of the exhibition said the event is an epitome of the important cultural exchange between China and the United States.

Source: ECNS

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